Industry

Profile

1

Industry Profile

A well developed transport network indicates a well developed economy. For rapid

development a well-developed and well-knit transportation system is essential. As India’s

transport network is developing at s fast space, Indian Automobile Industry is growing

too. Also, the Automobile Industry has strong backward and forward linkages and hence

provides employment to a large section of the population. Thus the role of Automobile

Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by

the Automobile Industry.

The Automobile Industry in India-the tenth largest in the world with an annual

production of approximately 2 million units-is expected to become one of the major

global automotive industries in the coming years. A number of domestic companies

produce automobiles in India and the growing presence of multinational investment, too,

has led to an increase in overall growth. Following the economic reforms of 1991 the

Indian automotive industry has demonstrated sustained growth as a result of increased

competitiveness and relaxed restrictions.

Indian Automobile Industry includes the manufacture of trucks, buses, passenger cars,

defense vehicles, two-wheelers, etc. The industry can be broadly divided into the car

manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units.

The major two-wheeler manufacturers are:

1. Hero Moto Corp

2. Yamaha Motors

3. Honda Motors

4. Suzuki Motors

5. TVS Motors

6. Mahindra & Mahindra

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7. Bajaj Auto

8. Royal Enfield

9. Piaggio & C. SpA

10. Kinetic Engineering Ltd.

The heavy motors like buses, trucks, defense vehicles, auto rickshaws, and other multi-

utility vehicles are manufactured by TATA-Telco, Ashok Leyland, Eicher Motors, Bajaj,

Mahindra & Mahindra, etc.

Following India’s growing openness, the arrival of new and exiting models, easy

availability of finance at relatively low rate of interest and price discounts offered by the

dealers and manufacturers all have stirred the demand for vehicles and a strong growth of

the Indian automobile industry.

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Company

Profile

4

Introduction

The Navjivan motors pvt. Ltd (hero) is well established in Surat, it was

set up in 2007, under companies’ act 1956. Their main aim is to satisfy customer’s needs by

providing service in two-wheelers. The name of the company in itself suggests a different in it.

There are total 308 employees. The major competitions of NAVJIVAN are better service for two-

wheelers, etc. NAVJIVAN is the small scale unit.

NAVJIVAN MOTORS PVT. LTD (HERO) began operation in 2007 under the

leadership of Mr. Hitesh Gajjar for the better service provider of HERO two-wheelers and they

are providing service department, accident department, advantage department with a diversified

product range and a reputed market presence.

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Mission

We at Navjivan motors pvt. Ltd. has identified the following objectives

in pursuit of our quality policy: - To increase the number of customers at least by 40

percent from our existing every year. - To execute all the servicing within agreed time-

frame. - To update the skills of employees by providing 20 hours training regularly on

yearly basis.

Vision

To be a leading automobile dealer in Gujarat in the forthcoming years and maintaining

the level of quality service and implementing the concept of KAIZEN

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History and Development

“Hero” is the brand name used by the Munjal brothers for their flagship

company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor

Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera,

India. Munjal family and Honda group both owned 26% stake in the Company. In 2010,

it was reported that Honda planned to sell its stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were

popular in India for their fuel economy and low cost. A popular advertising campaign

based on the slogan 'Fill it – Shut it – Forget it' that emphasized the motorcycle's fuel

efficiency helped the company grow at a double-digit pace since inception. The

technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from

the Japanese counterpart Honda.

Hero MotoCorp has three manufacturing facilities based

at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together

are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales

and service network with over 3,000 dealerships and service points across India. Hero

Honda has a customer loyalty program since 2000, called the Hero Honda Passport

Program.

The company has a stated aim of achieving revenues of $10 billion and

volumes of 10 million two-wheelers by 2016–17. This in conjunction with new countries

where they can now market their two-wheelers following the disengagement from Honda.

Hero MotoCorp hopes to achieve 10 per cent of their revenues from international

markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In

addition, to cope with the new demand over the coming half decade, the company was

going to build their fourth factory in South India and their fifth factory in Western India.

There is no confirmation where the factories would be built.

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Company at a Glance

Name of the Company :

Navjivan Automobiles Pvt. Ltd. (HERO)

Address:

D-5, Navin Flourine Compund,

Beside Reliance Petrol Pump,

Udhna-Bhestan Road, Surat(Gujarat)

Ph. : 0261-2892496/97

Fax : 0261-2892498

Email : navjivanautomobiles@yahoo.co.in

Form of the organization :

Small scale unit

Branch Manager : Mr. Rohit Sharma

Top Products :

Impulse (Bike) CBZ Xtreme (Bike) Hunk (Bike) Karizma ZMR (Bike) Passion Plus/Pro (Bike) Splendor Plus/Pro/NXG (Bike) Pleasure (Scooter) Maestro (Scooter)

Promoter : Mr. Rohit Sharma

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Bankers : HDFC Bank

Competitors : Dream Honda Shivani Motors Dhruv Automobiles Ganga automobiles

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Location chart:

10

Human Resource

Department

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Introduction

Human resource management (HRM or simply HR) is the management of

an organization's workforce, or human resources. It is responsible for

the attraction, selection, training, assessment, and rewarding of employees, while also

overseeing organizational leadership and culture, and ensuring compliance

with employment and labor laws. In circumstances where employees desire and are

legally authorized to hold a collective bargaining agreement, HR will also serve as the

company's primary liaison with the employees' representatives (usually a labor union).

HR is a product of the human relations movement of the early 20th century, when

researchers began documenting ways of creating business value through the strategic

management of the workforce. The function was initially dominated by transactional

work such as payroll and benefits administration, but due to globalization, company

consolidation, technological advancement, and further research, HR now focuses on

strategic initiatives like mergers and acquisitions, talent management, succession

planning, industrial and labor relations, and diversity and inclusion.

In startup companies, HR's duties may be performed by trained professionals. In larger

companies, an entire functional group is typically dedicated to the discipline, with staff

specializing in various HR tasks and functional leadership engaging in strategic decision

making across the business. To train practitioners for the profession, institutions of higher

education, professional associations, and companies themselves have created programs of

study dedicated explicitly to the duties of the function. Academic and practitioner

organizations likewise seek to engage and further the field of HR, as evidenced by

several field-specific publications.

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Its aspects are as under:

Recruitment:

Recruitment refers to the process of attracting, screening, selecting, and on boarding a

qualified person for a job. At the strategic level it may involve the development of

an employer brand which includes an 'employee offering'.

The stages of the recruitment process include: job analysis and developing a person

specification; the sourcing of candidates by networking, advertising, or other search

methods; matching candidates to job requirements and screening individuals using testing

(skills or personality assessment); assessment of candidates' motivations and their fit with

organizational requirements by interviewing and other assessment techniques. The

recruitment process also includes the making and finalizing of job offers and the

induction and on boarding of new employees.

Depending on the size and culture of the organization recruitment may be undertaken in-

house by managers, human resource generalists and / or recruitment specialists.

Alternatively parts of all of the process might be undertaken by either public sector

employment agencies, or commercial recruitment agencies, or specialist search

consultancies.

Navjivan is one of the prominent and authorized automobile dealers in the city. Basically

for the recruitment of the new staff, there is no such procedure. In Navjivan recruitment

is done on the basis of reference. Firstly the employee is recruited as a temporary staff,

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and then after 5-7 month he became permanent. The total no of worker in the Navjivan

group is around (500) and the no of worker in this branch is (75).

Training and Development:

Human Resource Management, training and development is the field which is concerned

with organizational activity aimed at bettering the performance of individuals and groups

in organizational settings. It has been known by several names, including human resource

development, and learning and development.

Harrison observes that the name was endlessly debated by the Chartered Institute of

Personnel and Development during its review of professional standards in 1999/2000.

"Employee Development" was seen as too evocative of the master-slave relationship

between employer and employee for those who refer to their employees as "partners" or

"associates" to feel comfortable with. "Human Resource Development" was rejected by

academics, who objected to the idea that people were "resources" &m dash; an idea that

they felt to be demeaning to the individual. Eventually, the CIPD settled upon "Learning

and Development", although that was itself not free from problems, "learning" being an

over general and ambiguous name. Moreover, the field is still widely known by the other

names.

The "stakeholders" in training and development are categorized into several classes.

The sponsors of training and development are senior managers. The clients of training

and development are business planners. Line managers are responsible for coaching,

resources, and performance. The participants are those who actually undergo the

processes. The facilitators are Human Resource Management staff. And the providers are

specialists in the field. Each of these groups has its own agenda and motivations, which

sometimes conflict with the agendas and motivations of the others.

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The conflicts that are the best part of career consequences are those that take place

between employees and their bosses. The number one reason people leave their jobs is

conflict with their bosses. And yet, as author, workplace relationship authority, and

executive coach, Dr. John Hoover points out, "Tempting as it is, nobody ever enhanced

his or her career by making the boss look stupid.”Training an employee to get along well

with authority and with people who entertain diverse points of view is one of the best

guarantees of long-term success. Talent, knowledge, and skill alone won't compensate for

a sour relationship with a superior, peer, or customer.

In Navjivan more emphasis is given to customer satisfaction and for that they need trained and qualified staff who handle customer to their best.

Navjivan had started various training programs for the development of skill and knowledge of the employees

1) RACING AHEAD:

The main objective of this program:

a. Recapitulate key learning points from the work shops:

-Mastering product

-Customer connect

b. Practice essential techniques and responses for managing different kinds of

objections effectively.

c. Practice managing objections against HERO product with reference to the

corresponding competing products.

d. Recognize the importance of ensuring customer delight through the right

knowledge, skill, and attitude.

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Internal Mobility:

The movement of employees from one job to another either vertically or laterally within

an organizational structure.

Internal mobility is a cluster comprising of promotion, demotion, transfer and

separations. Such movements may take place between positions in specific areas,

departments, divisions or establishments for employers with multiple establishments.

In Navjivan employees can be moved from one branch to another branch, but except this there is no such internal mobility.

Work Time:

The work time in Navjivan is from 9:00am to 5:00pm and the wages is paid according to that.

Bonus:

100% bonus is given to permanent employees.

60% bonus is given to temporary employees.

Human Resource Data:

NO of employees: (75)

Permanent employees (40)

Temporary employees (35)

The ratio of permanent to temporary employees is 8:7.

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No. of employees as per department and their salary structure:

Name of department Salary No. Of employees

Account 10000 3

RTO 6000 2

Insurance 5000 2

Billing 5000 2

Renewal 5500 2

D.M.S 6000 2

Exchange 6000 3

Spare part 6000 5

A.S.M 15000 2

Workshop 5000 35

Supervisor 10000 3

Frontline(job card) 7500 5

P.D.I (Pre-Delivery Inspection) 8000 5

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Finance

Department

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Introduction

Finance is the branch of management that concerns itself with the managerial

significance of finance techniques. It is focused on assessment rather than technique.

The difference between a managerial and a technical approach can be seen in the

questions one might ask of annual reports. The concern of a technical approach is

primarily measurement. It asks: is money being assigned to the right categories? Were

generally accepted accounting principles (GAAP) followed?

The purpose of a managerial approach, however, is to understand what the figures mean.

Someone using such an approach might compare the returns to other businesses in

their industry and ask: are we performing better or worse than our peers? If we are

performing worse, what is the source of the problem? Do we have the same profit

margins? If not, why? Do we have the same expenses? Are we paying more for

something than our peers?

They may look at changes in asset balances or red flags that indicate problems with

bill collection or bad debt.

They will analyze working capital to anticipate future cash flow problems.

Managerial finance is an interdisciplinary approach that borrows from both accounting

and corporate finance.

Sound financial management creates value and organizational agility through the

allocation of scarce resources amongst competing business opportunities. It is an aid to

the implementation and monitoring of business strategies and helps achieve business

objectives.

To interpret financial results in the manner described above, managers use financial

analysis techniques.

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Income and Expenses:

Income and Expenses of Navjivan Automobiles are as under:

Particular 2010-11 2011-12

Incomes 85,70,00,000 95,86,50,000

Expenses 84,51,75,000 93,77,58,150

Balance Sheet:

Particular 2010-11 2011-12Sources of Funds    Capital 36077000 36077000Reserves and Surplus 1300000 1500000Deposit 1000000 1000000Profit 11825000 20891850Loan FundsBank Loan 5000000 4600000Current Liabilitiesaccounts payable 200000 210000Bank overdraft 4500000 4100000Total 59902000 68378850 Application of FundsFixed assets:Machinery 2410000 2200000Land 11500000 11900000Furniture and fixtures 3200000 3600000Other Fixed Assets 4715000 2641850Current assets:Cash 500000 560000Accounts Receivable 1500000 1400000Closing Stock 30000000 40000000TOTAL 59902000 68378850

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Ratios of 2 years:

Particulars 2010-11 2011-12

Gross-Profit Ratio 17.48% 19.19%

Net-Profit Ratio 1.43% 2.26%

Operating Profit Ratio 14.38% 16.08%

Operating Ratio 85.62% 83.92%

Current Ratio 6.28 : 1 9.73 : 1

Quick Ratio 10.35 : 1 9.37 : 1

Return on Assets 0.0143 0.022

Proprietary Ratio 0.021 0.022

Stock Turnover Ratio 26 days(approx) 24 days(approx)

Fixed Assets Turnover Ratio 29.64 34.96

Gross Profit Ratio:

1 216.50%

17.00%

17.50%

18.00%

18.50%

19.00%

19.50%

17.48%

19.19%

Gross Profit Ratio

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2010-11 2011-12

Analysis: From the above diagram it is clear that the costs of sales have been increased

but the overall sales have increased too. That is why the gross profit has increased by

1.71% in year 2011-12.

Net Profit Ratio:

1 20.00%

0.50%

1.00%

1.50%

2.00%

2.50%

1.43%

2.26%

Net Profit Ratio

Analysis: From the above diagram it is clear that the total sales have been increased by

9,84,00,000 and similarly, the expenses has also been increased. That is why the net

profit has been increased by 0.83% in year 2011-12, it shows that the firm is able to sell

more number of units in coming years.

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2011-122010-11

Operating Profit Ratio:

1 213.50%

14.00%

14.50%

15.00%

15.50%

16.00%

16.50%

14.38%

16.08%

Operating Profit Ratio

Analysis: To find out this ratio first of all we have to find operating expense it includes

stationary expenses, salary, incentives, etc. After that operating expenses are deducted

from gross profit which gives operating profit. In year 2011-12 operating profit ratio has

been increased in year 2011-12 by 1.7%.

Operating Ratio:

1 283.00%

83.50%

84.00%

84.50%

85.00%

85.50%

86.00%

85.62%

83.92%

Operating Ratio

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2010-11 2011-12

2011-122010-11

Analysis: To find out operating ratio we have to deduct operating profit ratio from 100.

Lower operating ratio shows that the company is profitable. In year 2011-12 operating

ratio was 1.7% lesser than the previous year.

Current Ratio:

1 20

2

4

6

8

10

12

6.28

9.73

Current Ratio

Analysis: The current ratio should be 2:1 or more than that, it means the ratio of current

assets should be more than current liabilities two or more times. In year 2010-11 and

2011-12 it is 6.28:1 and 9.73:1 respectively, which means the liabilities are less in respect

of assets.

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2011-122010-11

Quick Ratio:

1 28.8

99.29.49.69.810

10.210.410.6

10.35

9.37

Quick Ratio

Analysis: The above diagram shows that the quick ratio has decreased in year 2011-12

which means in year 2011-12 the closing stock has increased and bank overdraft has been

decreased in year 2011-12 that is why the quick ratio has been decreased in year 2011-12.

Return on Assets:

1 20

0.005

0.01

0.015

0.02

0.025

0.0143

0.022

Return on Assets

Analysis: From the above diagram it is clear that the ratio has increased in year 2011-12.

It is just because the value of assets has increased.

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2011-122010-11

2011-122010-11

Proprietary Ratio:

1 20.02040.02060.0208

0.0210.02120.02140.02160.0218

0.0220.0222

0.021

0.022

Proprietory Ratio

Analysis: From the above diagram it is clear that the capital and reserves has increased in

year 2011-12 by reserves and surplus by Rs. 200,000 and the total assets has also

increased so that the proprietary ratio has increased 0.001 in year 2011-12. This because

the proprietor’s fund and total assets both has increased similarly.

Stock Turnover Ratio:

1 223

23.524

24.525

25.526

26.5

26

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Stock Turnover Ratio

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2011-122010-11

2011-122010-11

Analysis: From the above diagram it is clear that the firm’s stock sell out in year 2011-12

2 days early than year 2010-11.

Fixed Assets Turnover Ratio:

1 22627282930313233343536

29.64

34.96

Fixed Assets Turnover Ratio

Analysis: From the above diagram it is clear that the fixed assets and the total sales has

been increased that is why the Fixed Assets turnover ratio has also increased in year

2011-12 by 5.32.

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2011-122010-11

Comparative Balance Sheet:

Particulars 2010-11 2011-12Difference

Percentage increase and decrease

Sources of Funds        Capital 36077000 36077000 0 0Reserves and Surplus 1300000 1500000 200000 15.38Deposit 1000000 1000000 0 0Profit 11825000 20891850 9066850 76.67Loan Funds        Bank Loan 5000000 4600000 -400000 (8.00)Current Liabilities        Accounts payable 200000 210000 10000 (5.00)Bank overdraft 4500000 4100000 -400000 (8.88)Total 59902000 68378850 8476850 14.15         Application of Funds        Fixed assets:        Machinery 2410000 2200000 -210000 (8.71)Land 15507000 15900000 393000 2.53Furniture and Fixture 4200000 3670000 -530000 (12.61)Other Fixed Assets 5715000 4641850 -1073150 (18.77)Current assets:        Cash 500000 560000 60000 12.00Accounts Receivable 1570000 1407000 -163000 (10.38)Closing Stock 30000000 40000000 10000000 33.33TOTAL 59902000 68378850 8476850 14.15

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Ratio Analysis:

A tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and are

then compared to previous years, other companies, the industry, or even the economy to

judge the performance of the company. Ratio analysis is predominately used by

proponents of fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to a

company's performance, activity, financing and liquidity. Some common ratios include

the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working

capital.

A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical

values taken from an enterprise's financial statements. Often used in accounting, there are

many standard ratios used to try to evaluate the overall financial condition of a

corporation or other organization. Financial ratios may be used by managers within a

firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors.

Financial analysts use financial ratios to compare the strengths and weaknesses in various

companies. If shares in a company are traded in a financial market, the market price of

the shares is used in certain financial ratios.

Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent

percent value, such as 10%. Some ratios are usually quoted as percentages, especially

ratios that are usually or always less than 1, such as earnings yield, while others are

usually quoted as decimal numbers, especially ratios that are usually more than 1, such as

P/E ratio; these latter are also called multiples.

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These comprise the firm's "accounting statements" or financial statements. The

statements' data is based on the accounting method and accounting standards used by the

organization.

Financial ratios quantify many aspects of a business and are an integral part of the

financial statement analysis. Financial ratios are categorized according to the financial

aspect of the business which the ratio measures. Liquidity ratios measure the availability

of cash to pay debt. Activity ratios measure how quickly a firm converts non-cash assets

to cash assets. Debt ratios measure the firm's ability to repay long-term debt. Profitability

ratios measure the firm's use of its assets and control of its expenses to generate an

acceptable rate of return. Market ratios measure investor response to owning a company's

stock and also the cost of issuing stock. These are concerned with the return on

investment for shareholders, and with the relationship between return and the value of an

investment in company’s shares.

Financial ratios allow for comparisons

between companies

between industries

between different time periods for one company

between a single company and its industry average

Ratios generally are not useful unless they are benchmarked against something else, like

past performance or another company.

In our report we have take 10 financial ratios to analyze Navjivan Automobile’s liquidity,

activity, solvency, profitability, etc.

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Analysis of Financial Data: As above comparative Balance Sheet shows that, the capital

of the firm remains constant in both the years. Whereas, reserves and surplus, has been

increased 15%, which means the company is ready to sell more number of bikes and

scooters for that they have increased their reserves.

The profit gained in 2010-11 will help in decreasing the bank loan, which means the

company is able to make huge amount of sales without any debt. Cash on hand has been

increased, too.

Final Accounts:

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Profit and Loss AccountIncome 2010-11 2011-12Sales 825000000 923400000Other Income 2000000 3250000Closing stock 30000000 32000000TOTAL 857000000 958650000 ExpenditureOpening Stock 22500000 30000000Purchase 680000000 739075000Transport Expense - -Incentives 825000 923400Electricity 8250000 9234000Stationery Expenses 8250000 9234000Salary 16500000 18468000Interest 24750000 32319000Income Tax 2500000 2425000Tax 81600000 96079750Net Profit 11825000 20891850TOTAL 857000000 958650000

Sources of Finance:

Sources of finance can be classified into two:

- Internal Sources

- External Sources

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Balance SheetParticular 2010-11 2011-12Sources of Funds    Capital 36077000 36077000Reserves and Surplus 1300000 1500000Deposit 1000000 1000000Profit 11825000 20891850Loan FundsBank Loan 5000000 4600000Current Liabilitiesaccounts payable 200000 210000Bank overdraft 4500000 4100000Total 59902000 68378850 Application of FundsFixed assets:Machinery 2410000 2200000Land 11500000 11900000Furniture and fixtures 3200000 3600000Other Fixed Assets 4715000 2641850Current assets:Cash 500000 560000Accounts Receivable 1500000 1400000Closing Stock 30000000 40000000TOTAL 59902000 68378850

But, Navjivan automobiles prefer only internal sources of finance, which includes the

retained earnings, debt collection, owner’s capital, etc.

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Production

Department

34

Organization structure:

Below is the organizational structure of Navjivan automobiles.

Introduction

The very essence of any business is to cater needs of customer by providing services and

goods, and in process create value for customers and solve their problems. Production

and operations management talks about applying business organization and management

concepts in creation of goods and services.

Production

Production is a scientific process which involves transformation of raw material (input)

into desired product or service (output) by adding economic value. Production can

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Top management(Rahul Gajjar)

General manager(Rohit sharma)

Sales manager(Chintan Kapadia)

Sales persons

Account manager

(Amar singh)Assistant account person

Workshop manager

(Hasmukh choudhary)

Formens and workers

Production through separation: It involves desired output is achieved through

separation or extraction from raw materials. A classic example of separation or extraction

is Oil into various fuel products.

Production by modification or improvement: It involves change in chemical and

mechanical parameters of the raw material without altering physical attributes of the raw

material. Annealing process (heating at high temperatures and then cooling), is example

of production by modification or improvement.

Production by assembly: Car production and computer are example of production by

assembly.

Importance of Production Function and Production Management

Successful organizations have well defined and efficient line function and support

function. Production comes under the category of line function which directly affects

customer experience and there by future of organization itself.

Aim of production function is to add value to product or service which will create a

strong and long lasting customer relationship or association. And this can be achieved by

healthy and productive association between Marketing and Production people. Marketing

function people are frontline representative of the company and provide insights to real

product needs of customers.

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An effective planning and control on production parameters to achieve or create value for

customers is called production management.

Operations Management

As to deliver value for customers in products and services, it is essential for the company

to do the following:

1. Identify the customer needs and convert that into a specific product or service

(numbers of products required for specific period of time)

2. Based on product requirement do back-ward working to identify raw material

requirements

3. Engage internal and external vendors to create supply chain for raw material and

finished goods between vendor → production facility → customers.

Operations management captures above identified 3 points.

Production Management v/s Operations Management

A high level comparison which distinct production and operations management can be

done on following characteristics:

Output: Production management deals with manufacturing of products like

(computer, car, etc) while operations management cover both products and

services.

Usage of Output: Products like computer/car are utilized over a period of time

whereas services need to be consumed immediately

Classification of work: To produce products like computer/car more of capital

equipment and less labour are required while services require more labour and

lesser capital equipment.

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Customer Contact: There is no participation of customer during production

whereas for services a constant contact with customer is required.

Production management and operations management both are very essential in meeting

objective of an organization.

Plant Location:

Navjivan Automobiles is situated in Bhestan. It is one of the biggest industrial area and

Pandesara is just one street away from Bhestan which is also the biggest industrial area of

surat. The population of the area is also very large so Navjivan Automobiles target the

middle and lower class people.

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Plant Layout:

39

Material handling:

Material handling is one of the important part or subject to be concern for any service sector unit.

In Navjivan also more emphasis is given to material handling, so that customer get more satisfy.

As there is no movement of raw material in Navjivan auto mobile they pay more attention to the quality of finish product.

Warehousing:

A warehouse is a commercial building for storage of goods. They are usually large plain building use to load and unload goods from trucks.

Navjivan has warehouse capacity of 1200-1300 no of bikes.

Purchase function:

As they deal with the finished product directly, they wouldn’t purchase raw material.

They place order directly with the manufacturing unit using online software (S.S.G.C) specially designed for Navjivan group.

Order should be place before a month age and it should be of minimum 70 lakh.

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Marketing

Department

41

Introduction

Definition of Marketing:

Marketing is a social and management process by which individuals and group obtain

what they need through creating and exchanging products and value with other.

By PHILIP KOTLER

Definition of Marketing Management:

Marketing management means analyzing, planning, implementing and controlling the

marketing activities with the objectives of marring the desired exchange mutually

advantageous to the seller and the buyer. – By PHILIP KOTLER

1) Selling focuses on the need of the seller, marketing on the needs of the buyer.

2) Marketing with the ideas of stashing the needs of the customer by the means of the

product and the whole customer of the things associated with creating and finally

consuming it.

3) The marketing concept rests on four pillars, target marketing, marketing profitability.

4) The marketing concept takes an outside in perspective.

Organization structure of marketing department:

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Sales Manager General Manager Top Management

Sales Executives

Billing Department

Insurance

Department

Marketing mix

The marketing mix is a business tool used in marketing and by marketing professionals.

The marketing mix is often crucial when determining a product or brand's offering, and is

often synonymous with the four Ps: Price, Product, Promotion, And Place; in service

marketing, however, the four Ps have been expanded to the Seven Ps to address the

different nature of services.

Product

A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible

good or an intangible service. Intangible products are service based like the tourism

industry, the hotel industry and the financial industry. Tangible products are those that

have an independent physical existence.

The marketer must also consider the product mix. Marketers can expand the current

product mix by increasing a certain product line's depth or by increasing the number of

product lines.

Product mix:

According to Philip Kotler “Product mix (also called as product assortment) is the set of

all products and items a particular seller offers for sale”. Product mix pertains to the

variety of products a company sells. There are four dimensions to product mix, namely,

width, length, depth and consistency.

Width: The width of the product mix consists of all the product lines that the company

has to offer to its customers. If we take P&G for example, the width of the product line

would consist of Hair Products, Oral care, Soaps and Detergents, Baby Care, Personal

Care and Home care.

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Length: Length of the product mix includes the total number of products offered to the

customers. The number of products provided by P&G is 16 which is the total length of its

product mix.

Depth: Depth of a product mix pertains to the number of variants that are offered in each

product in the line. If we take the example of Ariel we can see that it is available in a lot

of sizes (100 GM, 250 GM, 1kg, etc.) and different types like- Front O Matic and

Fragrances etc.

Consistency: Consistency of a product mix refers to the relationship of the various

product lines in terms of end use, product requirements, distribution channels, or some

other way. P&G’s product lines are all consistent because they only concentrate on

selling FMCG products.

Product line: (length and width):

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Two

wheeler

Passion xproIgnitorMaestroImpulesHF DawnHF DeluxePleasureSplendor plusSplendor NXGPassion proSuper splendorGlamourSplendor proGlamour PGM FiAchieverXtremeHunkKarizmaKarizma ZMR

Product depth:

Where,

No of items (length):19

No of lines (width):01

No of items (depth): 09

Pricing

Introduction

Pricing is a very crucial matter for the marketing manager because it affects the demand, sales promotion, competitive strength of the business unit, ego satisfaction of the customers and ultimately the profit. Sometime, it happens that efficiency of other functional areas is attached by the faulty price decisions. Therefore, extra ordinary care should be taken at the time of marketing pricing decisions.

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XproProPassionPlusNXGSuperProSplendorGlamour PGM FiGlamourKarizmaZMRKarizma

Definition of pricing:

“Pricing is the element in the marketing mix that creates sales revenue, the other elements are costs”.

Economist defines prices as the exchange value of a product or service always expressed in money.

Money (price) = Balance of expectations or satisfactions.

Include in the bundle of expectations may be physical product plus other attributes such as delivery, installation, credit, return privileges, after sales servicing and so on.

Methods of Pricing:

Navjivan Hero is follows Cost oriented method or cost based methods of pricing:

Navjivan are following these factors:

Ex. Showroom prices+RTO charges+Insurance charges+Road Tex=On Road Price+Optional cost (GL+ACC)=Total price

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Different price of the product:

NO. MODELS OF BIKE PRICE IN RS. (on road)1 HF Dawn std 436302 HF Deluxe spoke 463203 HF Deluxe cast 482904 HF Deluxe spoke ss 489605 HF Deluxe cast ss 499706 Pleasure-new 500807 Maestro 562308 Splendor plus spoke 508109 Splendor plus cast 5193010 Splendor pro spoke 5182011 Splendor pro cast 5294012 Splendor pro spoke (ss) 5406013 Splendor pro cast (ss) 5518014 Splendor pro ltd edition 5631015 Splendor NXG cast 5137016 Splendor NXG spoke ss 5272017 Splendor NXG cast ss 5384018 Passion pro spoke 5317019 Passion pro cast 5429020 Passion pro spoke ss 5541021 Passion pro cast ss 5653022 Passion pro disc ss 5877023 Passion x-pro spoke 5423024 Passion x-pro cast 5591025 Passion x-pro spoke ss 5703026 Passion x-pro cast ss 5815027 Passion x-pro disc ss 6040028 Super splendor cast ss 5911029 Glamour drum ss new 6177030 Glamour cast dics ss 6402031 Glamour fi dics ss(new) 7201032 Ignitor drum self 6589033 Ignitor disc self 6814034 Achiever disc self 6814035 Hunk cast fr disc ss 7677036 Hunk cast fr & rr disc ss 8014037 Xtreme fr disc ss 7807038 Xtreme fr & rr disc ss 8143039 Impulse disc self spoke 8081040 Karizma- new 9164041 Karizma- ZMR(KAZ) 114310

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Place

Level:

Warehouse:

Navjivan Automobile has very large warehouse which can store 1200-1500 bikes or scooters.

Promotion

Consumer promotion tools:

1. Coupons

2. Premiums (gifts)

3. Free trails

4. Product warranties

5. Cash refund offers

6. Exchange fair

N

A

V

J I

VN

H

E

R

O

CUSTOMER

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Physical Evidence

Physical evidence is the material part of the service. There is much physical evidence, which is as follows:

1. Front Part of Showroom

2. Banners

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3. Uniforms: For Males

For Females:

4. Sign boards5. Logo

Works manager jacket

Technician T-shirt & Trousers

Sales T-shirt & Jeans

Front line supervisor Shirt & Trousers

Sales saree

Sales salwar suit

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6. Brochures7. Building8. Company’s websites

Peoples

Peoples deliver service in all sorts of settings. It’s an important element of the service marketing mix. If you go to an organized event such as the Olympic then everything about the experience is undertaking by peoples. Behind the scene there are project manager, staffs and accountant. The people deliver the service and this is the same for the any other organized organization.

Process

Here process is more about the customer interference; it’s about how the staff or management handles with their clients or customers.

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Findings

52

The study finds that majority of customer were highly influenced by the comfort of the bike. It is important to note that experienced customers are one of the important influencing factors behinds a number of purchases.

Following are the other important findings of the study,

Age:Majority of the customers falling under the age group of 20-30

Buying preference:Majority of the customer prefer comfort as an important factor while making the purchase decision of a bike.

Style:Most of the customers (64%) were influenced by the style of the bike.

Comfort:Most of the customers were influenced by the comfort of the bike.

Mileage:Majority of the customer prefer mileage as an important influencing factor.

Price:Most of the customers were influenced by the price of the bike.

Product features:Most of the customers were influenced by the product features of Hero’s bike.

Technology:66% customers were influenced by the technology of the Hero’s bike.

Parts and service availability:Most of the customers (58%) were influenced by the parts and service availability of the Hero’s bike.

Brand perception of customer:Most of the customers (62%) were influenced by the brand image of Hero.

Purchase of buying:Majority of the customers (98%) were purchased their bike for personal purposes.

Advertisement:Majority of the customer were influenced by the advertisement.

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Experienced users:It is important note that experienced customer become an important influencing factor behind a number of purchases.

Customer satisfaction:Majority of the customer (92%) were highly satisfied about the performance of the bike.

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Conclusion

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After studying the whole organizational processes and procedures we have rated the firm 6.5/10.

The below suggestions (Page no. 57) will improve the organization’s development.

We have learned from this training that how to influence the customers, various marketing techniques, etc.

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Suggestions

57

Suggestions which would be beneficial for the organization;

Selection Procedure:The firm has to plan an effective selection procedure, so that the firm gets the appropriate employee.

Temporary Employees:The firm has to decrease the number of temporary employees because every time firm has to recruit a new employee, when any employee left the job.

For this the firm has to increase the job satisfaction of the employees.

Means of advertisement:The firm has to increase the means of advertisements i.e. through radio channels, local TV channels and local newspapers.

This will increase the sales of the firm.

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Bibliography

59

Books

Financial Management –by I M Pandey

Marketing Management –by Philip Kotler

Human Resource Management –by P. Subba Rao

Production Management –by K. Ashwathappa

Internet:

www.wikipedia.com

www.businessdictionary.com

www.navjivanmotors.com

www.heromotocorp.com

Financial management by:

Mr. Amar Singh

(Account manager)

Marketing management by:

Mr. Chintan Kapadia

(Assistant Sales manager)

Human resources management by:

Mr. Rohit Sharma

(General manger)

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Annexure

61

62

Profit and Loss AccountIncome 2010-11 2011-12

Sales 825000000 923400000Other Income 2000000 3250000Closing stock 30000000 32000000TOTAL 857000000 958650000 ExpenditureOpening Stock 22500000 30000000Purchase 680000000 739075000Transport Expense - -Incentives 825000 923400Electricity 8250000 9234000Stationery Expenses 8250000 9234000Salary 16500000 18468000Interest 24750000 32319000Income Tax 2500000 2425000Tax 81600000 96079750Net Profit 11825000 20891850TOTAL 857000000 958650000

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Balance SheetParticular 2010-11 2011-12Sources of Funds    Capital 36077000 36077000Reserves and Surplus 1300000 1500000Deposit 1000000 1000000Profit 11825000 20891850Loan FundsBank Loan 5000000 4600000Current Liabilitiesaccounts payable 200000 210000Bank overdraft 4500000 4100000Total 59902000 68378850 Application of FundsFixed assets:Machinery 2410000 2200000Land 11500000 11900000Furniture and fixtures 3200000 3600000Other Fixed Assets 4715000 2641850Current assets:Cash 500000 560000Accounts Receivable 1500000 1400000Closing Stock 30000000 40000000TOTAL 59902000 68378850