3. INTRODUCTION
Havmor literally meaning H-A-V-E-M-O-R-E, one
of the best name for food business was coined by
Late Shri Satish Chandra Chona in 1944.
HAVMOR is a privately owned company
manufacturing varieties of ICE CREAMS, they also
run RESTAURANTS and FAST FOOD PALOURS, and
they also deal with CATERING.
Havmor Group of Co. has its humble beginning
since 1944, when its founders started
manufacturing ice cream with a hand-cranked
machine.
The “Havmor” philosophy of providing its
customers with the best quality products and
services at affordable prices has resulted in the
brand being a household name in Gujarat.
Havmor has 50% of the Gujarat ice cream
market. But that’s no surprise considering that the
group has the largest range of ice creams in the
Gujarat in a variety of flavors, packs and forms. The
group has a product matrix comprising of cones,
cups, candies, family and party bricks and bulk
packs.
Havmor introduced the concept of “flavor of the
month” under which the company develops and
markets one new flavor every month for its
customer’s delight.
- -3
3
4. COMPANY PROFILE
Havmor Group
of Co.
Factory Address : Modern Industrial
Estate,
B/h. Naroda Station,
Naroda Road,
Ahmedabad-380 025
Fax : 91 – 079 – 2220 3890
E-mail : Dhiren@havmor.com
Office Address : 2nd
Floor, Kashmira
Chambers,
B/h. Popular House,
Navrangpura,
Ahmedabad-380 009
Fax : 91 – 79-2657 5100
E-mail : Kamal@havmor.com
Website : www.havmor.com
Main Product : ICE-CREAMS
Land area
- -4
4
5. of factory : 5000 sq. ft.
No. of employees : 420
Managing director
of the Company : Mr. Pradeep Chona
President : Mr. Anand
khanonkar
Assistant G.manager : Mr. Dhiren Shah
Purchase manager : Mr. Ajay Mistry
Finance &
Account manager : Mr. Vatsal Parekh
Quality Control : Mr. Sanjay & Miss.
Urvi
Stores Management : Mr. S.k. Shetty
H.R.Assistance : Mr. Tejas & Mr.
Pramo
Vice President (HR) : Mr. Rajesh Shah
Marketing Dept : Mr. Kamal Desai
Auditors : Mr. Mukesh
- -5
5
7. HISTORY &
DEVELOPMENT
OF THE UNIT
Small Beginning, Big Vision, Great Ambitions
Havmor Ice Cream began its branded life in 1944 in
Karachi, in undivided India. By 1947, it was a
popular local brand there.
But in 1947, in the wake of the Partition, its
founder Satish Chona had to join the exodus into
India, with virtually no moveable assets. Searching
for a new turf, he tried out Dehra Dun and Indore,
and finally, settled down in Ahmedabad.
No, it was not a case of “Brand Relocation”, or
anything else as fanciful. He had to start the
venture from scratch again. In fact, he had to begin
from a hand-cart at the Ahmedabad Railway Station,
churning out the Ice Cream manually.
He called this fledgling brand ‘Havmor’ - a
neologism for ‘Have More’ - which meant the
customer, got more value for money, and more
taste to relish, from his Ice Creams.
Perhaps he didn’t know it then, but he had laid
the foundation for one of Western India’s most
enduring market legends and good quality, like
good character, wins over the situation sooner or
later.
- -7
7
8. Today, Havmor Ice Cream is a delicious facet of
Western India’s daily life, and part of its market lore.
It reaches hundreds of thousands of consumers
through 8 main outlets and 3800 plus dealers.
- -8
8
9. LOCATION OF THE
UNIT
The location of plant or industry means to
scientific choice of a region or specific sight in a
region where the business unit is to situate. The
main object of an industry concern is to maximize
profit through minimization of production and
distribution cost. The objectives are realized only if
the firm is located at a place which offers all
economies of production and distribution.
* Factor responsible for plant location
are:
1. Money, Material
2. Man power, Market
3. Motive power, Management
4. Machinery, Means of Communication
5. Momentum to an early start
- -9
9
10. TIME KEEPING
SYSTEM
Time keeping system for industrial
staff
Shift Timings
1st
shift ~ 8 AM TO 4 PM
2nd
shift ~ 4 PM TO 12 Mid Night
3rd
shift ~ 12 Mid Night to 7 AM
Working Hours for office staff: 9.30 TO
6.30
- -10
10
11. INNOVATIONS
Quality is undoubtedly very important to
establish and retain one’s status in a competitive
environment. But equally important is innovation –
constantly coming up with something new to
maintain an edge over the competition. Hence,
creativity is at the forefront of our activities. Most of
our innovations have been based on the consumer
feedback we have received from our ardent fans. To
please them, to date we have launched over 200
flavors in 600 pack-types and forms. People eagerly
await our flavor of the quarter, which has been an
on-going event over the years.
Here is a representative sample of a few
of our innovations:
We are the first ones to introduce Dairy Fresh –
an all natural ice cream which contains no
additives, no preservatives, no synthetic Colors
or flavour. Nothing but the pure, natural
goodness of milk, fruit and nuts.
We launched many dry fruits based ice creams,
an assortment of traditional Indian ice cream
form, which otherwise had to be bought just
prior to consumption, and that too from
vendors whose quality often left a lot to be
desired.
We even introduced the Sorbet – a fruit juice
based frozen dessert.
- -11
11
12. To match our unique products, we have often
gone in for unconventional and creative
packaging. Like the time when we filled Mango.
Orange, Sitafal, Sweet Lime. Ice creams in the
intact skins of their fruits. It was a big hit at
social gatherings and special occasions.
All our innovations are based on a single guiding
principle i.e. “Give the consumer what he likes and
wants, and not what we want him to like?”
- -12
12
14. INDEX
- -
Sr
no
.
Particular Pag
e
no.
1 Introduction 14
2 Organizational Structure 15
3 Main products of the
company
16
4 Pictures of ICE-CREAMS 17
5 Raw material used 22
6 Production process 23
7 The process for the basic
ice-cream mix
25
8 The process for the ice-
cream production
27
9 Stores management 29
10 Plant layout 30
11 Health & ice-cream 32
14
14
15. INTRODUCTION
Production is the process of transferring
components into finished products for sales.
The term production is wide in scope. It
includes manufacturing process also by which raw
materials are transferred into finished goods for
final consumption. Land, Capital and Labor
organization and entrepreneurship are the factors of
production, where as making include market
research, personal selling, sales promotion,
advertisement, publicity and all other activities
relating to distribution.
Production refers to a process of fabrication of a
product or a physical object through there are men,
material, capital and entrepreneurship for the
satisfaction of human wants.
Production department is the heart of Havmor
Unit, as the main function of Havmor is to produce
the products and supply to the consumers according
to their needs and taste. Thus, in Havmor
production department is the most important
department.
- -15
15
16. ORGANISATIONAL
STRUCTURE
Vice President Operation
↓
Assistant General
Manager
↓
Production Manager
↓
Supervisors
↓
Labors
Production is the lifeline of any business unit;
hence production department plays an important
role of vital importance in any industrial unit as in
Havmor group.
Vice President is the head of the department,
followed by Assistant General Manager, Production
Manager, Supervisors and at last Labors.
- -16
16
17. • MAIN PRODUCTS OF THE
COMPANY
Ice creams found in different styles
like:
King Cones
Big Cups
Small Cups
Party Pack
Family Pack
Juices
Candy
Dolly
Kulfi Corner
Roll cut
Novelties
Cassata
Premium Pack
Kids Special
Havmor Special, etc.
- -17
17
18. RAW MATERIAL
USED
There are various types of raw materials that
are used in Havmor during Ice Cream making
process. Major Raw Materials used for making Ice
Cream are:
Milk
Cream
Skim milk powder
Dry fruits
Fresh fruits
Flavours
Sugar
Stalulizer
Emulsifiers agents
Chocolates
All the materials used in process are managed
by Storage Department. And their quality is checked
by Research and Development Department.
- -18
18
19. PRODUCTION PROCESS
Pasteurize Milk (8-10°C)
Dump Tank
Milk Pump
Batch Pasteurize (75°C for 15 Mins)
Milk Storage Tank
Milk Pump
Batch Pasteurizer
Milk Pump
Atomogeniser
Two Stage
I. – 2500 Psi
II. – 500 Psi
Mix Chiller (24°C)
Aging VAT
- -19
19
20. Aging VAT
Batch Freezer Flavour Tank
Candy Tank
I/C Vessel Addition of Colour &
Flavour Candy Hardening Tunnel
Continous Freezer
(-20°C)
Cone Filling Machine Cup Filling
Machine Chocolate Coating Tank
(-4.5°C) (-4.5°C) (33°C)
Packing Table PackingTable
Packing Table
Hardening Tunnel Hardening
Tunnel
To Cold Storage
(-35°C)
To Cold Storage (-2.5°C) To Cold
Storage (-25°C)
- -20
20
21. The Process for the
Basic Ice Cream Mix
Pasteurization Tank:-
Here the raw materials like milk, cream,
powder, etc are mixed. Milk is pasteurized here.
Mixing of Pasteurizers is done at 8-10°C, Butter is
melted at 40°C, All ingredients at 55°C,
Sweetening agent is added at 65°C, and
pasteurization is done at 75°C. The mix is kept at
75°C for 15 mins and then filtration of mix is done.
Homogenator:-
After being pasteurized at 75°C, the mix is
transferred to this tank. Here, this mix is kept
under the pressure of 50 cem square. This
increases the viscosity of the mix. Here the break
down of the fact glucose is done up to micron
size. The Homogenator tank is the heart of the
process.
Chiller:-
In the chiller, the chilling of the mix is done
from 75°C to 24°c.
- -21
21
22. Storage Tank:-
After being thoroughly mixed, the mix is stored
in this tank. The mix is stored here is called the
basic mix and is used for all ice creams. The
basic mix is taken to each section for different
types of Ice Creams, whether it is cup, candies,
cones, etc.
- -22
22
23. The Process for the
Ice Cream
Production
The tank through which the ice cream is carried
out should be cleaned every time before getting
any new flavour. The creaming process is done by
Service and Engineering Department. The process
of cleaning any equipment is different from each
other.
* The general process of cleaning is as
follows:
Flushing with tap water.
Cleaning with hot water at 10°C for 10 to 15
mins.
Alkali cleaner for 20 mins at 10°C.
Flushing with hot water.
Senttice the whole equipment with hardaphire
solution of 200 ppm for 20 mins.
Flavouring Tank:-
Required quality of basic mix is transferred in
Flavouring tank additions of essence and
Flavouring Color is done as per the recipes of
particular ice cream.
- -23
23
24. Continuous Freezer:-
After starting the continuous freezer, the ice
cream will come out within 25 seconds at the
temperature of 8°C to -5°C. If the recipes includes
additions of nuts it is done through fruit feeder
which is outside the continuous freezer and
before the final place of coming out of the ice
cream and in case of Sunday’s different flavor is
added through nozzles through which more than
two flavors can be added. After coming out from
continuous, the ice cream is picked into different
boxes, cups, etc. This process is done manually.
Hardening Tunnel:-
These packets are kept in hardening tunnel to
achieve ITC.
Cold Storage:-
After achieving ITC in hardening tunnel, ice
cream is transferred in to cold storage and taken
as per the market demand.
Yummy Ice Cream is now ready to dispatch.
- -24
24
25. STORES
MANAGEMENT
Stores management is necessary for any scale
of unit because whenever the need arise it could be
provided by the store department.
There is a separation for storage in Havmor.
The departments like production, research and
development department are required to inform to
the storage department whenever the need arises
and on this basis purchase requisition is made and
given to purchase department.
- -25
25
26. PLANT LAYOUT
Layout problems are fundamental to every type
of organization and are experienced in all kind of
marketing. Housewife must arrange her kitchen;
retailer must arrange their facilities, not only the
departments within the factory but also the plant,
stores and services so as to achieve flow of
products.
Once a decision about location of a plant has
been taken, next important problem before the
management is to plan suitable layout for the plant.
Efficiency and performance of good machines and
sturdy buildings depend to a great extent on the
layout of the plant.
According to James Handy, “Layout identically
involves the allocation of space and arrangement of
equipments in such a manner that overall operating
cost is minimized.”
• There are mainly 3 types of layout…
1. Process layout or layout by function
2. Product layout or line production
3. Fixed position layout.
- -26
26
27. Process layout or layout by
function:
This is typical job-shop type of production,
where the equipment performing similar operation
is grouped together. In this layout more emphasis is
given to specialization or functional homogeneity on
the various components of the system. All
operations of similar nature & grouped together in
the same department or part of the factory. E.g.;
grinding machine is located in any are, etc.
Product layout or line production:
The equipment here is laid out according to the
sequence in which it’s used for making the product
for this type of layout if two products are tobe made
is called for two separate layouts.
Fixed position layout:
In this layout, the material remains in a fixed
position, but the machinery tools, workmen, etc. are
brought to the machines.
- -27
27
28. HEALTH & ICE-
CREAM
ICE-CREAMS:
The most Indulgent face of Nutrition.
A Cup of good Ice-cream probably features the
most varied blends of nutritious elements in life.
Carbohydrates (Rice & Wheat), Fats (Oil & Ghee),
Vitamins & Minerals (Vegetables & Milk), Proteins
(Pulses)… … all are blended into a lip-smacking cup.
What is more, Ice-cream is the most delicious
form in which children can consume these nutrients.
In fact, they would ask for it, & relish it without
parental prompting.
Those who want to build better health can
regularly consume high quality Ice-creams as part of
their daily diet. And those who are on a weight-loss
diet, can use them as delicious & nutritious hunger-
quencher, they will give them just the right amount
of nutrients, but keep then from accumulating too
much of anything by taking the edge off the need to
eat a lot.
- -28
28
29. • NUTRIENT CONTENT OF 100GMS
VANILLA ICE-CREAM:
- -
FAT 13 GMS.
M. SNF (GMS) 11 GMS.
SUGAR (GMS) 15 GMS.
CALORIES 196.7
PROTEIN (GMS) 4.0
CARBOHYDRATES (GMS) 20.7
TOTAL MINERALS (GMS) 0.9
CALCIUM (MG) 122.0
PHOPHROUS (MG) 105.0
POTASSIUM (MG) 90.0
IRON (MG) 0.1
VITAMIN A 492.0
VITAMIN B1 (MG) 0.04
VITAMIN B2 (MG) 0.23
NIACIN (MG) 0.1
VITAMIN C (MG) 1.0
29
29
31. INDEX
Sr
no.
Particular Pag
e
no.
1 Introduction 36
2 Organizational
structure
37
3 Recruitment, selection
& Induction
38
4 Training &
Development
41
5 Promotion, Demotion &
Transfer policy
42
6 Grievances handling
procedure
44
7 Performance appraisal 45
8 Personnel records 46
9 Wages & Salary
Administration
47
10 No. of employees 48
11 Provident fund scheme 49
12 Employees benefits &
salary
50
13 Trade union 51
- -31
31
32. INTRODUCTION
As the term applies, personnel management is
the management of human resources in an
organization and is concerned with the creation of
harmonious working relationships among its
participants and bringing about this utmost
individual development, such management is
concerned with leadership in both groups and
“individual relationship” and “personnel
management.” It effectively describes the process
of planning and directing the applicants,
development and utilizations of human resources in
employment. In fact, personnel management
undertakes all those activities, which are concerned
with human elements in an organization. Whatever
functions are listed therein, the main objectives of
these functions are to bring together expertise in a
scientific way and to create that motive, a group to
achieve its goals economically, effectively and
speedily.
According to Havmor, HRD plays a major role in
conducting specialized training programs,
encouraging innovative ideas, inoculating
willingness to accept change and rewarding out this
with an incentive package. They believe that their
plants are most valuable assets who have made
Havmor what it is today, and it is they who will take
them for beyond the horizon, the days to come.
- -32
32
33. ORGANISATIONAL
STRUCTURE
Managing Director
↓
General Manager
↓
Assistant Manager
↓
Executives
↓
Officer
↓
Assistant
It caused of the assignment of specific functions
to designated persons department with authority to
have them carried out and their accountability to
management for the result obtained. It seeks to
achieve maximum effort by decentralized, where by
the power of decision is brought down as near as
possible to the individual concerned.
- -33
33
34. RECRUITMENT,
SELECTION &
INDUCTION
The recruitment & selection process is
intimately connected with overall manpower
system.
It is the primary duty of the personnel department
to procure and maintain the adequate qualified
working force of various personnel necessary for
running the organization. It is very important
function even for the establishment and
development of business.
RECRUITMENT:
Recruitment refers to attempt of getting
interested applicants and providing a pool of
prospective employees so that we can select right
person for right job. In Havmor the recruitment
sources can be classified into two broad categories.
For recruitment of skilled workers,
advertisement is given in newspapers and unskilled
workers are recruited from local areas.
- -34
34
35. SELECTION:
Selection is the process in which candidates for
employment are divided into two classes – those
who are to be offered employment and those who
are not.
The selection process of Havmor Co. is
done as under…
* Preliminary Interview.
* Application.
* Interview.
* Final Selection.
Following are the broad headings under which the
qualities desirable for a suitable candidate may be
grouped.
* Educational and technical qualifications
* Intelligence
* Responsibility involved and initiative
required
* Ability to command, to obey
* Health and physique
* Ability to work in the conditions in
which the job is performed.
- -35
35
36. INDUCTION:
Induction refers to the job and organization.
The purpose is to make the employees feel at home
and develop a sense of pride in the organization and
commitment to the job.
Induction is a technique by which a new
employee is rehabilitated into the changed
surroundings and introduced the practicing policies
and purpose of organization.
Induction of employee is done by every
department for every week after selecting of 2 to 3
days.
- -36
36
37. TRAINING &
DEVELOPMENT
TRAINING:
Training is the organized procedure by which
people learn knowledge or skill for a definite
purpose.
In this modern era, training is very important. In
Havmor Ice-creams, there is also modern type of
machines which follows modern technology. Many
workers don’t know to use them. So, they teach
them how to use machineries.
DEVELOPMENT:
Development is an organized and planned
process and program of training and growth by
which individual manager or executive at each level
of management hierarchy gains and applies
knowledge, skills, insight and attitudes to manage
workers and the organizations effectively.
In Havmor Group of Co. HR coordinates the
training. Sometimes staff is send outside the
company for training purpose or experts are called
up to give training to the employees. Company also
gives training to their workers according to the job.
Generally, training for 7 days is given to workers.
- -37
37
38. PROMOTION
DEMOTION
&
TRANSFER POLICY
PROMOTION:
Promotion is the advancement of an employee
to better job – better in terms of responsibility, more
prestige or status, greater skill, higher grade &
salary and increased privileges, etc.
Havmor Co. also gives promotion on the basis of
all over performance basis. Company also considers
merit basis and seniority basis. Top level
management gives promotion.
DEMOTION:
Demotion has been define as the assignment of
an individual to a job of lower rank and pay usually
involving lower level of difficulty and responsibility.
In other words, demotion refers to the lowering
down of the status, salary & responsibility of an
employee.
Havmor Co. gives demotion when any employee
is not able to do his work by any reason.
- -38
38
39. TRANSFER:
Transfer refers to changes in jobs that involve
little or no change in status, responsibility and pay.
Havmor Co. does transfer to their employee.
Employees are transferred from one shift to another
shift, as per the requirement.
- -39
39
40. GRIEVANCES
HANDLING
PROCEDURE
Grievance is difficult to define, personnel
experts however, have attempted to distinguish
dissatisfaction, complaint and grievances. Generally
speaking, dissatisfaction to any staff or filling of
discontent, whether it is unexpressed or explicitly
expressed. A dissatisfaction which is orally made
known as complaint becomes a grievance when this
dissatisfaction, which is usually related to work is
brought to the notice of management.
A complain by an employee and claiming unfair
treatment.
In all the companies grievances always exist
irrespective of size and unit. In some employee
have complaints against employees. The grievances
may be real or imaginary valid or invalid.
In Havmor, there is specific grievance handling
procedure. Whenever, there is any grievance, the
employees meet first to the supervisor and if not
solved then employees meet to the concerning
department head and management tries to solve
the grievance by considering the acceptable
demand of the employees and the workers also
keep themselves ready to achieve the targets
disclaimed by the management.
- -40
40
41. PERFORMANCE
APPRAISAL
In the organization context performance appraisal
is a systematic evaluation of performance by
supervisors or other familiar with their performance.
It is also described as merit rating in which one
individual is ranked or market in comparison to
others.
Performance Appraisal is a systematic evaluation
of the individuals with regard to his/her
performances on the job and his potential for
development.
In Havmor, the performance appraisal is done by
the superior or superior will fill the form, it is done
once in a year and accordingly increase in salary is
given. Motivation to workers done once in 2 months.
- -41
41
42. PERSONNEL
RECORDS
A Personnel record is piece of writing in a chart
or which provides ready information and which
preserve evidence for future reference or use.
Havmor Co.’s style of keeping personnel record
is very scientific and systematic. The company
keeps one file for each employee. In this file, you
can get each & every information about employee.
The information like wages, salary, training &
development, recruitment & selection, pension,
provident fund, discipline, past experience, birth
date, blood group, qualifications, behavior of
employee in the company, etc. are noted in this file.
- -42
42
43. WAGES & SALARY
ADMINISTRATION
Wage and salary administration is necessarily
the application of a systematic approach to the
problem of ensuring that the employees are paid in
a logical, equitable and fair manner.
Its basic purpose is to maintain and establish
wage and salary structure. Its secondary objective is
to establish equitable labor cost structure. It is
concerned with financial aspects of needs,
motivation and rewards.
Havmor Co. gives wage and salary to the
workers according to their work and ability. In this
company, wages and salary are given monthly to
the workers. Sometimes, company gives wages on
the basis of contract to the workers.
Salary to the clerical, administrative and
professional employees is paid on the 1st
of every
month. In Havmor, till now there is no child labor.
The average eages provided to labor is Rs. 2400 per
month.
- -43
43
44. TOTAL NUMBER OF
EMPLOYEES
• The company has total staff strength of 420.
• Which includes 200 unskilled workers and 220
skilled.
• The company recognizes the important role that
its employees used to play the growth of various
business activities.
- -44
44
45. PROVIDENT FUND
SCHEME
The Provident Fund Act was passed in 1952. A
special reserve fund was made for making the
payment to out going members.” The Provident
Fund Act 1952 was amended in 1971 to provide for
the benefit of family pension to the members of
deceased in case of their death, while in service.
In Havmor Group, company provides provident
fund to its employees. The scheme covers each and
every employee of the company. PF @ 12% is given
to employees in that 8.33% is pension and 3.67% is
PF. It affect instantly to financial condition to each
and every employee. It makes bright future for
employees.
- -45
45
46. EMPLOYEES
BENEFITS &
SERVICES
The services or benefits, which are given to the
employees more than the salary comes under
employee’s services scheme.
In Havmor following benefits are provided to the
employees:
Uniform.
Safety Facility.
Medical Facility.
Social Welfare.
Canteen Facility.
Employees are also provided previous leave,
casual leave, and sick leave. Employees in Havmor
are also provided the benefits like PF, ESI Scheme,
etc.
Safety facility is provided to workers as in food
items utmost safety is required and medical check
up to the workers is also done as and when
required.
- -46
46
47. TRADE UNION
The scenario of exploitation of employees by
employers led to the birth of unions and introduced
the ear of government regulation and control over
employment relationship. Now, unions are a part of
modern industrial societies. There are various
explanations about the place and role of unions.
These points to a commonalty through union seek
to pursue and further the interests of employees as
a collectively.
“A track union is any combination of persons,
whether temporary or permanent, primary for the
purpose of regulating the relations between workers
and workers, and for imposing restrictive conditions
on the conduct of any trade or business, and
includes the formation of two or more trade unions.”
– Section 2 (B) of Trade Union Act, 1920.
In Havmor, the relation of industry with trade
union is good. It generally deals in collective
bargaining for doing negotiations.
- -47
47
49. INDEX
Sr
no
.
Particular Page
no.
1 Introduction 54
2 Organizational
structure
55
3 Responsibility function
& Authority of
Individuals at different
Hierarchy levels
56
4 Assigning territories 58
5 Product planning 59
6 Product mix 60
7 Marketing research 61
8 Market segmentation 62
9 Distribution channel 64
10 Physical distribution 66
11 Packaging &
Transportation
69
- -49
49
50. INTRODUCTION
Marketing is so basic that it cannot be
considered a separate function. Marketing has been
defined in various ways. The definition that serves
are purpose by which individuals and groups obtain
what they need and want through creating, offering
and exchanging products or value with others.
* Marketing is a total system of business, an
on going process of:
Discovering and translating consumer needs and
desires in to products and services.
Creating demand for these products and services.
Serving the consumers demand with the help of
marketing channels, and then in turn
Expanding the market even in the face of keen
competition.
“Marketing management is the process of
planning and executing the conception, pricing,
promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual
and organizational goals.”
- -50
50
52. Responsibility functions
& Authority of
Individuals at
Different Hierarchy
Levels
General Manager’s Responsibility
& Authority
* Sales Administration.
* Advertising and Media.
* Product Management.
* Recruitment and Selection at higher Authority
Level.
* Designing Sales Promotional Programs.
Responsibilities & Authority of
Senior Sales Manager
* Generate Sales.
* Assigning targets.
* Recruitment.
* Maintaining relationship with Distributors and C&F
Agents.
* Assisting in designing of Promotional Programs.
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52
53. Responsibilities & Authority of
Sales Executives & Sales
Coordinators
* Appointing Distributors / Dealers.
* Provide Machines.
* Handling Dealer / Distributor Complaints.
* Give the promotional tools to the Dealers &
Distributors.
* Dealer / Distributor Communication.
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53
54. ASSIGNING
TERRITORIES
Generally, past figures are taken as base for sales
forecast. Some percentage will be taken on last year
Sales & Budgeting sales figure will be decided.
Moreover, it depends on certain other parameters
also like Advertisement in that particular territory.
Market Development Opportunity, Market Size,
Competitor’s Activities, and Support from HO. So it’s
a combination of all the parameters. The Sales
Budget also depends on the company’s strategy.
After deciding the Sales forecast, they derive sales
budget. They allocate budget for promotional
schemes, for incentives to the sales people,
advertising, etc.
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54
55. PRODUCT PLANNING
Planning is to decide in present, what to do in
future? Havmor Co. also develops new products and
steps of product development are as under…
Research for a new product sometimes is based
on seasons & market demand.
Planning of product before 3-4 months in
advance.
Quality control department check the product
quality.
Product management department approves a new
product.
Product planning for promotions.
Final label of product.
Commercialization of new product.
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55
56. Product Mix of
HAVMOR
Ice
Cream
Frozen
Desert
Food
Item
Cups
Small
Cup
Big Cup
Family
Packs
Cones
Sundaes
Party
Packs
Novelti
es Bulk Packs
PRODUCT MIX
A product mix is a set of all products and items
that a particular seller offers for a sale. A company’s
product mix has a certain length, width and depth.
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56
58. MARKETING
RESEARCH
Marketing research is the systematic collection,
design, analysis and reporting of data and finding
relevant to a scientific marketing situation facing
the competition. Process and marketing research
followed in Havmor.
Defining the problems and research objectives.
Developing the research plan.
Collecting the information.
Analyzing the information.
Presenting the findings.
Havmor Company does marketing research
through his sales staff. Sometimes Havmor
Company appoints marketing intelligent staff for
research in different areas.
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58
59. MARKET
SEGMENTATION
Market Segmentation is a full larger group
having similar wants. Segmentation is consumer
oriented marketing strategy. Market
segmentation gives the formal segmentation to
the fact that wants and desires of consumers
diverse and we can orient specific category or the
segment of the market, so that supply will have
the best correlation with demand. Varied and
complex buyer behavior is the root cause of
market segmentation.
Market consists of buyers and buyers differ in
one or more respects. They may differ in their
wants, purchasing power, geographical locations,
buying practices. Any of these variables can be
used to segment a market.
The ice cream market is segmented in
following three ways:
Basis of flavors:
Viz. Vanilla, Strawberry, Chocolate, Mango,
Butter Scotch, Kesar Pista, etc. Vanilla, Strawberry
and Chocolate together account for about 70% of
the market followed by Butter Scotch and other
fruit flavors.
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59
60. On the basis of stock keeping
units / packaging:
1. Cones.
2. Cups.
3. Sticks or Candies.
4. Take away.
On the basis of consumer
Segment:
On the basis, the market is divided into four
segments,
1. Impulse segment.
2. Retail.
3. Institutional / Catering.
4. Parlors.
Retail and impulse together account for 70% of this
market.
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60
61. DISTRIBUTION
CHANNEL
In the field of marketing, channels of distribution
indicates the routes of pathway through which
goods and services flow or move from producers to
consumers. The route of channels of distribution
includes the manufacturer and the consumer as well
as all intermediaries. These components are linked
in the channel system by one or more of the
marketing flows, such as transfer of title of
ownership, physical distribution of merchandise,
transfer of title of ownership, physical distribution of
merchandise, transmission of marketing information
and the flow of money in the form of payment of
prices and other dues.
The channel of distribution of Havmor is
as follows:
Manufacture
↓
C & F Agents
↓
Distributors
↓
Dealers & Retailers
↓
Customers
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61
62. The above channel strategy defines the channel
members. The finished goods first go to C&F Agent
is not available then the finished goods directly go
to Distributors.
HO (i.e. Ahmedabad Office) constantly watches
the moments the orders given in Dispatch
Department by various C&F Agents and Distributors.
Havmor has 32 distributors and 4000 retail
outlets. The network is kept alive by large flat of
refrigerated vehicles; refrigerated equipments and
retail freezers are sources from world leaders in
technology, so as to deliver quality products to the
consumers, which is a commitment at Havmor.
Marketing Department also coordinate with
Dispatch Department to get the order from C&F
Agents and Distributors, and try to see the moments
of dispatch that orders as early as possible by
clubbing various distributors in one route. And at
last dealers get the goods from the distributors.
- -62
62
63. PHYSICAL
DISTRIBUTION
The marketing process is not complete simply by
creating superb product and by creating the
consumer through aggressive salesmanship.
Delivering the product to the consumer at the right
time and right place is equally important function in
marketing. In process of marketing, this vital
function is called physical distribution.
Physical distribution means the process of
delivering the product to the user or consumer
promptly, safely and in time.
The major components of physical
distribution of Havmor:
Warehousing
Inventory
Order processing
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63
64. WAREHOUSING:
As ice cream is a perishable product and it must be
kept in cool place to maintain its quality for few days,
Havmor has cold storages at different ends. These
ends are factories, C&F agents, Distributors and
Dealers. The temperature kept in these storage
houses is as low as –25°C.
INVENTORY:
For the raw material, Havmor keeps the
inventory. The inventory of the packaging material
is kept as low as possible and according to the
demand forecasted and growth rate of the market.
Ice cream is product of impulse category that
requires proper storage, to keep it in a proper
condition. The production and consumption system
also such that, the production is done through the
whole year and main demand is in summer season.
So every company has to store ice cream properly.
Company has enough storage facility at their all
plants, and all C&F agents have their own cold
storage facility, so they keep the stock as per their
requirement i.e. at the time of promotional scheme
period or in summer they maintain high stock, the
C&F agent carry the stock in bulk and they supply
the ice cream to distributors or dealers, who also
have proper freezing facilities.
- -64
64
65. ORDER PROCESSING:
Havmor has defined MOQ (Minimum Order
Quantity) for the distributors to make order to the
company. As far as order of the dealers are
concerned that is the headache of the distributors.
Here, the job of the Havmor’s sales staff is to assist
the distributors is selling the ice cream. Havmor
states their physical distributor’s objective, “getting
the right goods to the right place.” No physical
distribution system can simultaneously maximize
customer service and minimize distribution cost.
Maximum customer service implies large
inventories, transportation and few warehouses.
The designing distributors system is to study what
the customer wants and what competitors are
offering customer, interested in several things such
as on time delivery. Havmor’s willingness is to meet
customer needs, careful handling of merchandise to
take back defective goods and re-supply them
quickly and to carry inventory for customer.
- -65
65
66. PACKAGING &
TRANSPORTATION
Packaging:
Ice cream consumers in India are generally
children and young people. To attract these
consumers ice cream manufacturers try hard to
make their packaging attractive.
Packaging plays a large role in marketing of ice
cream products. Many different packing, sizes and
designs can be chosen along with type of packaging
material.
Ice cream is marketed in three types of
packaging.
The most popular is a cup of 100-150 ml sold @
Rs. 8-15 price range. Ice creams at this price
range are generally brought for immediate
consumption. They are available everywhere from
big super market to local retailers.
Bar, sticks and Cones represent another ready-to-
eat market and are priced @ Rs. 5 and is very
popular with kids and forms major portion of the
ice cream sales.
Party pack and Family pack are in much use now
a days. These are used for parties and in
restaurants. Though outside attractiveness is not
- -66
66
67. very important but the size of the pack and
handling comfort is important.
Transportation:
Ice cream requires very low temperature in
terms of -25°C, so the Van used for the
transportation is having the chillers. Company is
acquiring Van on the contract basis.
- -67
67
70. INTRODUCTION
The sales manager is the head of the sales
department and he is guided in his policy by the
managing director of the company. Thus, the sales
manager must be a man of initiative and ready to
propose new ideas as opportunity comes. He must
be active, energetic and persistent in order to cope
up with the work involved which is sales promotion.
Exploring new possibilities of obtaining customers,
market and new goods. He must be energetic and
put new life and interest in his sales staff. Sales
executive should be a good judge of human nature,
a good mixer and know how to handle men not only
his customers but also his competitors in the
market. He must be a good organizer and know the
psychology of the group to whom he serves.
It is true that a sale is the last activity of an
organization but it is not the less important function.
The sales executive in additional to being
competent the techniques and procedure of selling
the product, is an executive directing the activities
of others. He has to co-operate with the rest of the
staff for new products and new uses of the
commodity.
- -70
70
71. SALES
ORGANISATION
The sales department should co-operate with
design department so that the product designed
should meet the exact requirements of the
customers and the important factors like
efficiency,sturdity,low cost of maintenance, safety
for the operator ,ease of handling and good luck are
to be achieved and the sales department has to co-
operate with the production department to see that
the quality is maintain and the rate of production is
according to the schedule with planning department
to prepare the sales programmed on which the
entire planning will be based ,with the accounting
department to bring the prices down and there by
to increase the turn over and fix selling price. With
the accounts dept. to give complete data and with
the personnel dept. to procedure the efficient
salesman.
- -71
71
72. SALES BUDGET
Sales forecasting & Devising
Sales Budget:
As Ice Cream is perishable good and it
requires proper freezing to maintain Proper
quality, which is very costly. So sales
forecasting is very important to reduce the
cost of over production and maintenance.
Havmor considers following factors for
forecasting the Sales:
Observing Market Trends.
Past figures related to consumption pattern.
Deciding the future strategy.
Using the above factors, experts in the sales
field use their expertise and give their opinion for
the next year’s sales. Thus, Havmor use Jury of
Expert Executive Opinion.
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72
73. PRICING POLICY
A price policy is the standing answer to the firm to
recurring problem of pricing. It provides guidelines
to the marketing manager to evolve appropriate
pricing decisions. There are many methods of
deciding pricing. It depends on the organization that
which method it wants to adopt.
Policy on pricing relative to costs:
Havmor follows Full Cost / Cost plus pricing. Full
Cost pricing, no sale is made at a price lower than
that covering total costs, including the variable
costs and allocated fixed costs.
• For Example,
X- Cost of Production
X+Y- Cost of goods sold
X + Y + 6% - Cost of goods sold + distributor’s
Margin
X + Y + 6% + (12% to 20%) = MRP – Dealer
margin added to above (Consumer Price)
- -73
73
74. CHANNEL OF
DISTRIBUTION
Every producer seeks to link together the set of
marketing intermediaries that best fulfill the firm’s
objectives. This set of marketing is called the
channel of distribution.
A distribution system is key of external resources.
Normally it takes years to build and it is not easily
arranged. It ranks in importance with key internal
resources such as manufacturing, research,
engineering’s and field sales personnel and
facilities.
The channel of distribution of the company has
the following way:
Manufacturer
Agents
Dealers
Retailers
Customers
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74
75. ADVERTISING
It is defined as any paid form of non-personal
presentation and promotion of ideas, goods and
services by identified sponsor. It is impersonal
salesmanship for mass selling, a means of mass
communication.
Havmor Company has used many media of
advertising such as press media, which includes
newspapers and magazines; outdoors advertising
that includes posters, boards and electric display,
multimedia including web site, etc.
• Product boreal magazine
• They have attended an exhibition in world level
and in India more than 50 times.
• In product today magazine
• Tender world
• In industrial express
• Machine tools
• Local channels
The firm is spending more than 2 lakes
amount in advertising.
- -75
75
76. SALES PROMOTION
Sales promotion is a vital bridge or a
connecting line removing the gap between
personnel selling and advertising the two wings of
promotion. The sale of a product has to be
promoted or encouraged through a No. of
influences at the point of purchase where retailers
and prospective customer meet face to face.
Sales promotion may stimulate boost consumer
denying at the point of sale or improve dealer
effectiveness at the retail outlets.
There are various sales promotional tools such
as:
Samples, coupons.
Price packs.
Premiums.
Contest.
Free trials, Price off.
Allowance of goods.
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76
77. Havmor company has done all promotional
activities with a view to increase sales of products
and to attract a new customer to company’s
product. Company has provided many offers such as
“Buy one- Get one free”, “Buy family pack and get
attractive gift free”, etc. Company has also done
dealers promotional activities include cash discount
on purchase, display and advertisement allowances,
etc.
- -77
77
79. INDEX
Sr
n
o
.
Particular Page
no.
1 Introduction 83
2 Financial Review 84
3 Organizational
Structure
85
4 Financial planning 86
5 Capitalization 87
6 Capital Structure 88
7 Depreciation policy 89
8 Management of
working capital
90
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79
80. INTRODUCTION
Financial Management is an integral part of
overall management. It is not totally dependent
area. It draws heavily on related disciplines and
fields of study such as economics, accounting,
marketing, production and quantitative methods.
The term “nature” as applied finance refers to
its relationships with closely related fields of
economics and objectives. In the early years of its
evolution it was treated synonymously with the
raising of funds. Now in addition to it is procurement
of funds, efficient use of resources is universally
recognized.
- -80
80
81. FINANCIAL REVIEW
In spite of staff competition, particularly in Ice
Cream Industry, Havmor Company’s TOTAL SALES
at the end of the financial year 2006-2007 is Rs.
6167 Lacs earned during previous year is Rs. 4929.8
Lacs.
Company has earned the Gross Profit of Rs.
404.17 Lacs before depreciation and financial
expenses during the year ended on 31st
March 2005
as compared to 424.25 Lacs earned during the
previous year.
Net Profit is Rs. 31.8 Lacs during the year
ended on 31st
March, 2005 as compared to Rs 55.35
Lacs earned during the last year.
- -81
81
82. ORGANISATIONAL
STRUCTURE
Finance is the foremost requirement of any
firm, finance decision constitutes one of the critical
and key decisions of any department. The duty of
General Manager is to handle accounts and overall
co-ordination of finance department. All major
decisions are taken by Managing Director. Plans are
made by General Manager and it is approved by
Managing Director. Managing Director is responsible
for any kind of the result to the Directors of the
Company.
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82
83. FINANCIAL
PLANNING
Finance is an important function of business.
The application of planning to the function is
financial planning. It involves the policies,
determination of objectives and procedure relating
to the finance function. Financial planning is an
important function of a financial manager whether a
business is big or small this function has to be
performed. It is necessary to do financial planning
for an existing as well as new business.
A financial plan is a statement estimating the
amount of capital and determining its compensation
and another important aspect of financial plan is to
determine the pattern of financing.
Before raising finance it is essential to make
estimates for long term as well as short tern
financial needs.
Long term financing is generally needed for
fixed capital requirement i.e. purchase of fixed
assets.
Short term finance is generally needed for
working capital requirement i.e. marketable
securities, debtors, etc.
In Havmor, the financial planning is done for long
tern or short term financial requirements. Financial
planning is necessary to reduce the cost of finance
and all the long term and short term finances is
raised through family funds and overdrafts. The
- -83
83
84. requirement of all the long term is also fulfilled
through bank as and when needed.
CAPITALISATION
The term capitalization refers to the process of
determining the plans if financing. It includes not
merely the determination of the quantities of
finance required for a company but also the decision
about the quality of financing. Capitalization
includes following aspects:
Estimating the total amount of capital to be
raised.
Determining the types of securities to be
issued.
Determining the composition or proportion of
the various securities to be issued.
Capitalization comprises of a company’s
ownership capital, which includes capital stock and
surplus in whatever form it may appears and
borrowed capital which consists of bonds or similar
evidence of long term debt. In Havmor, the
capitalization includes both the aspects i.e. short
term as well as long term.
- -84
84
85. CAPITAL STRUCTURE
In order to run and manage a Company, funds
are needed right from the promotional stage up to
end. Finance plays an important role in company’s
life. If funds are inadequate, business sufers. It is
therefore necessary that correct estimate of current
and the future need of capital be made to have an
optimum capital structure, which shall help the
organization to run its work smoothly and without
any stress. Estimation of capital requirements is
necessary, but the formation of capital structure is
important.
The capital structure is made up of debt and
equity securities and refers to permanent financing
of a firm. It is composed of long term debts,
preference share capital, and shareholders fund.
Capital structure of Havmor as on
31.03.2007
Particulars Amt
(Lacs)
Share Capital 359.5
Reserves and Surplus 980.5
Secured Loans 1525
Unsecured Loans 383.5
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85
86. DEPRECIATION
POLICY
Depreciation is an expense item. It is charged
on fixed assets. Fixed assets are those which are of
material value, meant for resale and having fairly
long life and are used in the business.
Methods of depreciation are as follows:
Straight line method.
Diminishing balance method.
Annuity method.
Depreciation fund method.
Insurance policy method.
Depletion method.
Machine hour rate method.
In Havmor depreciation is on Fixed Assets is
provided on Straight Line Method.
- -86
86
87. MANGAMENT OF
WORKING CAPITAL
Capital required for a business can be classified
under two main categories.
1. Fixed Capital.
2. Working Capital.
The concept of working capital is further
divided into two broad parts they are…
• Gross Working Capital.
• Net Working Capital.
Gross Working Capital =Total Current
Assets
Total Current Assets= 2702.4(Rs in Lacs)
Total Current Liabilities= 1097.7 (Rs. In
Lacs)
Net Working Capital= Current Assets –
Total Current Liabilities
= 2702.4 – 1097.7 (Rs. In Lacs)
= 1604.7 Lacs
- -87
87
89. SWOT ANALYSIS
Strengths
Strong market in Gujarat.
No. 2 in Gujarat
Varieties of Ice Creams
Experience of more than 60 years
Weakness
Less use of advertising medium
Lack of Professionalism
Prices are somewhat high as compared to
Amul.
Opportunities
Ability to increase production due to installation
of new technology
To sell their Ice Creams in other states
Threats
Increasing number of competitors
Increasing demand of Amul
- -89
89
91. FUTURE PLANS
Havmor is adopting a consumer oriented
strategy as far as the price factor is concerned,
where in the priority was on passing more and more
benefits to ultimate consumers. All the benefits
accruing out of economies of scale were passed to
consumers in the form of value for money offers like
“Buy one get one free”.
The overall broad strategy of increasing the
consumption was supported by appropriate
promotion and market support. The selection of
media and communication strategy was done with
an objective of achieving the broad objective growth
by growing the market.
- -91
91
93. SUGGESTION
After going through practical training in Havmor
for making the analytical report of a company, I
would like to conclude some suggestions in order to
achieve the targets and to make its consumers
brand loyal.
To decrease the cost of production in order to
compete the competitors.
To improve the channels of distribution so
that consumers gets the best taste.
Less sales promotional tools should be used,
as too much of sales promotion adversely affects
the reputation of company.
More marketing research is required in order
to know the taste of consumers.
- -93
93
95. CONCLUSION
After visiting Havmor, it seems that Ice Cream
is the King of Gujarat. I felt glad of being a part of it.
The visit to such a huge and reputed industry has
improved my practical knowledge of working in
industry and its various departments.
Havmor is an industry that is very well
equipped by the latest technology and efficient
human resource.
I wish them very best luck for future.
- -95
95
96. BIBLIOGRAPHY
- -
Sr
N
o.
Title of
the book
Author Publicat
ion
1. Personnel
management
C.B.
Memorial
Himalaya
Publishing
House
2. King’s
marketing mgt.
[2nd
Edition]
M.M.Varma
&
R.K. Aqarwal
King book
Educational
Publishers’
3.
Financial mgt.
[3rd
Edition]
M.Y. Khan &
P.K. Jain
Tata McGraw
Hill Publishing
co. ltd.
4.
Business
organization
& management
M.C. Shukla S. Chand &
Company96
96
