CHAPTER – 1

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 INTRODUCTION

“Marketing is a social and managerial process by which individuals and groups obtain what they need

and want, through creating, offering and exchanging products of value with others”.

- Philip Kotler.

Marketing includes all those activities having to do with effecting changes in the ownership and

possession of goods and services. It is that part of economics which deals with the creation of time,

place and possession utilities and that phase of business activity through which human wants are

satisfied, by the exchange of goods and services for some valuable consideration.

- American Marketing Association.

Marketing is the process of discovering and translating consumer wants into product and service

specifications and then in turn helping to make it possible for more and more of consumers to enjoy

more and more of these products and services.

Marketing consists of analyzing marketing opportunities, researching and selecting target markets,

designing marketing strategies, planning marketing programs and organizing, implementing and

controlling marketing effort.

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 Companies have to identify long and short term marketing opportunities and research the selected

market by measuring and forecasting attractiveness of the given market. Having selected the market,

the companies need to develop a differentiating and positioning strategy for the target market. The

marketing strategy must be transformed into marketing programs by deciding on marketing

expenditures and the marketing mix. The final step is organizing the marketing resources and

implementing and controlling the marketing plan.

Marketing Mix

Marketing mix is the set of marketing tools that a firm uses to pursue its marketing objectives in the

target market.

McCarthy has popularized a four factor classification of marketing tools known as the 4P’s of the

marketing mix. They are:

• Product

• Price

• Place

• Promotion

Product:

Product stands for the firm’s tangible offer to the market, including the product quality, design,

features, branding and packing. It deals with new product development, product life cycle, product

mix, product lines, branding and associated services to a product. From the customer’s point of view,

it helps in satisfying the customer’s needs and wants.

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Price:

Price is the monetary value of the product. Price deals with selecting the pricing objectives, setting the

price, discounts, allowances, payment policies and credit terms. It is very important to the customers

as it decides the cost the customer has to pay to gain the product value.

Place:

This marketing tool stands for the various activities the company undertakes to make the product

accessible and available to the customer. It involves market size, channel selection and management,

storage and physical distribution with the ultimate purpose of efficiently supplying the company’s

offer to the target market. To the customer, this marketing tool refers to convenience.

Promotion:

Promotion stands for various activities the company undertakes to communicate and promote its

products to the target market. It involves communication programs i.e. direct marketing, advertising,

sales promotions, public relations and motivation of sales force. To the customer this tool provides

knowledge and information.

The Promotion Mix of a company includes the following tools;

Advertising:

It is any paid form of non-personal presentation and promotion of ideas, goods or services by an

identified sponsor.

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Direct Marketing:

It refers to the use of mail, telephone and other non-personal contact tools to communicate with or

solicit a response from specific customers and prospects.

Personal Selling:

Face to face interaction with one or more prospective purchasers for the purpose of making a sale

refers to personal selling.

Public Relations and Publicity:

It refers to the variety of programs designed to promote and or protect a company’s image or its

individual products.

Sales Promotions:

The short-term incentive to encourage trial or purchase of a product or service refers to sales

promotion. Whereas advertising offers a reason to buy; sales promotion offers an incentive to buy.

Since sales promotion directly push up the sales, increasing number of companies are undertaking

sales promotion activities.

Sales Promotion

Sales promotion refers to the short-term incentives to encourage sales of a product or service.

It consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker

and greater purchase of products or services by consumers.

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Purpose of Sales Promotion

Sales promotion tools vary in their specific objectives. They may be used to attract new

customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales

promotion usually targets brand switchers because non-users and users of other brands do not always

notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other

products.

Sales promotions also let manufacturers adjust to short term changes in supply and demand and

differences in customer segments. They also let manufacturers to experiment by varying prices. Sales

promotions also lead to greater consumer awareness of prices.

To use sales promotion, a company must set objectives, select the right tools, develop the best

program and implement it and evaluate the results.

Objectives of Sales Promotion

The specific objectives set for sales promotions will vary with the type of the target market. For

consumer promotions, objectives include encouraging purchasing of larger sized units, building trial

among non-users and attracting switchers away from the competitor’s brands. For trade promotions,

objectives may include; including retailers to carry new items and higher level of inventory,

encouraging off-seasonal buying, of-setting competitive promotions, building brand loyalty of

retailers and gaining entry into new retail outlets. The sales force promotions help in encouraging

support of a new product or model, encouraging more prospecting and stimulating off-seasonal sales.

But most importantly, sales promotion should be focused on consumer relationship building.

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 Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives. Descriptions of the main

promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

• Samples:

They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the

product without cost or at a lower cost in the hope that they will buy the product. Samples may be free

or discounted.

• Coupons:

Coupons are certificates that give buyers a saving when they purchase a specified product. Coupons

can be mailed, placed in advertisements or included with other products.

• Rebates:

Rebate is also known as cash refund offers. Rebates are offers to refund part of the purchase price of

a product to its customers who send a proof of purchase to the manufacturer. These are like coupons

except that the price reduction occurs after the purchase and not at the point of sale.

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• Price Packs:

Cents-off deals or price packs offer consumers savings by way of reducing prices that are marked by

the producer directly on the package.

• Premiums:

These are the goods offered either free or at a low cost as an incentive to buy a product. Premiums

may be in-pack or on-pack (outside the pack)

Prizes:

They are offers of chance to win something such as cash, trips or goods – by luck or through extra efforts.

Contests of talent and sweepstakes or draws the most popular prize offering promotions.

• Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or

contests to increase their pulling powers.

• Cross Promotions:

Cross promotions involve using one brand to advertise non-competing brand.

• Advertising Specialties:

These are useful articles imprinted with an advertiser’s name, given as gifts to consumers.

• Patronage Rewards:

They are cash or other awards for the regular use of company’s products or services. They are values

(in cash otherwise) that are proportional to one’s patronage of a certain vendor or a group of vendors.

They aim at building brand loyalty.

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• PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that take place at the point of purchase

or sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on consumer promotions

(42%). The major trade promotion tools are as follows;

• Discounts:

It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on a

particular quantity purchased during a stated time.

• Allowances:

They are the amount offered in return for an agreement by the retailer to feature the manufacturer’s

products in some way; displays, advertising or otherwise.

• Free Goods:

Free goods are the extra merchandise offered to middlemen who buy a specific amount of a product.

Companies also offer push money and specialty advertising items to the middlemen.

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 Business Promotion Tools

Companies spend huge amount on promotions focused on industrial consumers. The major business

promotion tools are as follows;

• Trade Shows and Conventions.

• Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To use it well, the marketer must

define the sales promotion objectives, select the best tools, design the sales promotion program, pretest and

implement the program and evaluate its results.

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 INDUSTRY PROFILE

Polyvinyl-Chloride (PVC) is a plastic product which has matchless versatility. It effectively replaces

wood, paper and metal in several applications. As such plastic pipes have been progressively replacing

conventional pipes like G.I., Cast iron, Asbestos cement or stone-ware for a number of important and

uses. Among the various types of plastic pipes which are commonly used for such applications PVC

pipes are the most widely used all over the world on account of their most favorable balance of

properties. PVC pipes are light in weight, rates for use under pressure, easy to install, low functional

loss, low on maintenance cost, and have low functional loss. Rigid PVC pipes have wide variety of uses

in fields like city/town/rural water supply scheme, spray irrigation, deep tube well schemes and land

drainage schemes.

Plastics are also called synthetic resins and are broadly classified into two categories; thermosetting

resins and thermoplastic resins. The thermosetting resins include phenol resin and melamine resin,

which are thermally hardened and never soften again. Thermoplastic resins include PVC,

polyethylene(PE), polystyrene(PS) and polypropylene(PP), which can be softened again by heating.

Usually, thermoplastics are supplied in the form of pelletized material (compounds) with additives (anti-

oxidants, etc.) already blended in it. However, PVC is supplied in powder form and long term storage is

possible since the material is resistant to oxidizing and degradation. Various additives and pigments are

added to PVC during the processing stage, and then molded and fabricated into PVC products. PVC is

better known as bineel (vinyl) in Japan. This is due to the fact that PVC products, in the form of films or

sheets, were widely used among the public after World War II, and these products were simply called

bineel. When these PVC products that are soft to the touch first landed Japan, where only rigid

thermosetting resins had been known, they left a very strong impression among the population. This is

how bineel mistakenly became a synonym for all soft films including polyethylene films.

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MARKET POTENTIAL

PVC pipes are used for a variety of purposes e.g. water supply schemes, spray irrigation, deep tube well

schemes and land drainage schemes. PVC slotted and corrugated pipes are ideal systems for drainages of

water from land where water logging is inevitable. It is widely used by various utility services now-a-

days too. The major consumer of PVC pipes are the Public Health Engineering Department (PHED) and

Irrigation Departments. Besides these two, it is used by the Municipal Corporations, Tea estates as well

as in N.E. Region. The usage of PVC pipes also depends upon the size of these pipes too. It is

manufactured in different sizes having innumerable usage value.

The World Bank has recently given top priority in rural water supply in developing and under-

developed countries. India has also received large amounts from World Bank aid for Rural Water

Supply Schemes. However, due to the acute shortage of appliances including pipes this money could not

be utilized to a large extent in our country. Thus PVC/HDPE pipe manufacturing industry has received

higher priority. The requirement of PVC pipes in N.E. Region is around 10,000 MT out of which the

requirement in Assam is more than 50% followed by Tripura and other five states of N.E. Region. At

present there exist around 5 PVC pipes manufacturing units in the region.

Plant Capacity: The production basis for a typical tiny unit would be as under: Working hours/day : 8

(1 shift) Working days in a year : 300 Annual Production capacity : 150 MT PVC Pipes as follows:

Sl.No. Dia of the pipe (mm) Production in length (meter)

Weight per running meter (Kgs.)

Total production (MT)

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1. 90 75,000 1,000 75.00 2. 110 53,571 1,415 75.00

292

The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first, second

and third year and onwards of its operation.

THE EARLY HISTORY OF PVC PIPES

“Many of you have expressed a curiosity about the historical development of PVC pipe. In

response to your requests, we provide you with this brief early history of PVC pipes and fittings.

PVC was discovered as early as1835, but the first definite report of the polymerization o vinyl

chloride did not come until about 35 years later. At that time, the material was to be reported to be an

off-white solid that could be heated to 130 degree C without degradation.

PVC remained laboratory curiosity for many years, probably because of its intractable nature.

The polymer was inert to most chemicals and very tough(strong). These properties eventually led

scientist to consider PVS for applications where durability and toughness were desirable.

In 1912 the first industrial developments were initiated in Germany. Throughout the 1920’s,

attempts were made to use PVC copolymers that easier process than PVC. These early attempts were

only marginally successful.

By 1932, the first tubes made from aPVC copolymer were produced. Nearly three years later the

first PVC pipes were produced using a roll mill and hydraulic extruder.This two steps process involved

melting the PVC powder on a roll mill and rolling the sheet produced up to a billet. The PVC Could then

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be processed in a discontinuously working ram extruder to make pipe. This process was adapted from

that used for celluloid and was really ill-fittedfor PVC. As a result, the products were often oh

dubiousquality.

Never –the-less, these earlyPVC pipes were deemed suitable for drinking water supply piping

and waste water piping because of their chemical resistance, lack of taste or odor and smooth interior

surface. From 1936 to 1939 over 400 residences were installed with PVC drinking water and waste

pipelines in central Germany. Various test pipelines of PVC was laid in Leipzig,

Both the pipelines for chemicals and those for water supply and waste water came upto expectations, as

did the test pipe lines in the cities mentioned above, apart from damage caused by World War 2. The

PVC pipes installed in central Germany are still in use today without any major problems. In retrospect,

these first PVC pipes had been made before their time, before the material compounds and machines for

their manufacture had been perfected. It was not until 1950 that the systematic development ofextrusion

technology began. Prior to this, the manufacture of PVC pipe remained make shift and the use of PVC

pies did not become widespread.

The 1950’s and 1960’s were decades of dramatic advances for PVC pipe and fitting technology.

Encouraged by the results obtained from the primitive pre-war PVC pipelines, several European and

American companies realized the enormous potential for PVC pipes. These companies pursued the

technology, both in formulation and processing. Systematic research and trials were successful in the

development of effective stabilizers, lubricant and processing aids together with processing machinery

engineered specifically for PVC. During this time period, PVC pipe began competing with traditional

products in a number of major markets, such as: gas distribution; sewer and drainage; water distribution;

electrical conduit; chemical processing; and drain, waste and vent piping.”

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(Reprinted with the permission of the UNI-BELL PVC pipe Association)

The Indian pipe industry with presence across all the categories of pipe (steel, cement and

plastic) has become a major exporting hub to the regions like Middle East, US and Europe due to its

location advantage and global accreditations. Also the lower oil and gas pipe line penetration level in

India provides huge opportunity for laying new pipeline infrastructure in the country, considering its

vast geographical area.

The operating environment for the Indian pipe industry was challenging during 2012. The steel

pipe companies expanded their capacities domestically as well as globally during the last couple of

years, which led to excess capacities. Hence, most of the domestic players had to resort lower margin

orders domestically to maintain their order books. The higher input and finance costs significantly

eroded their profitability margins.

CARE research expects the demand for Indian pipe industry to improve from 2014 and remain

healthy over the long term, both on the global as well as domestic fronts, on the back of increasing

demand arising from oil, gas & infrastructure projects. Enhanced global energy demand arising from

increasing population and economic spending in the emerging market will lead to need for higher

exploration and product(E&P) activity, giving boost to the demand for steel pipe segment. Shale gas

discovery is likely to increase demand or pipeline infrastructure globally.

CARE Researches report on the ‘Indian Pipe Industry’ seeks to answer questions such as: What

is the estimated steel and plastic pipes demand over the next five years? What is the current level of

SAW, ERW, DI and seamless pipe capacities expected capacities? What is the estimated domestic and

global demand for pipes from oil&gas segment? What is the estimated SAW pipe demand arising from

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replacement market? What are the key cost components incurred by Indian pipe companies? What are

the price realization trends for major pipe players?

CARE Research also provide outlook on the pipes industry demand including exports demand.

We have estimated demand within each segment of steel pipes like SAW, Seamless, DI pipes etc. the

report takes in to account several initiatives undertaken by the Indian Government to provide basic water

supply and sanitation also emphasizes on oil and gas sector expansion plans domestically and globally.

INDIAN PIPE INDUSTRY

India has become the global pipe manufacturing hub especially of SAW pipes primarily due to its lower

cost, high quality and geographical advantages. Additionally, Indian companieshave acquired global

accreditations and certification which make them preferred suppliers to most of the world’s top oil and

gas companies in the MiddleEast, North America and Europe. CARE Research believes that once the

global economy returns to sustained growth,

As per CARE Research, Indian pipe manufacturers will be greatly benefited when Exploration and

Production (E&P) project for oil and gas companies which were previously stalled or revoked because

of the global financial crisis recommence their operations.

CARE Research’sreport on ‘Indian pipe industry’ gives valuable insight of the industry on global and

domestic capacities, demand–supply gap analysis of domestic market, export market for domestic

companies, replacement demand, competition and commentary on top industry players. We have

reported demand break-up within each segment of steel pipes like SAW,ERW and Seamless pipes.

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For SAW pipes, our demand forecasting is derived from several upcoming pipeline projects expected in

India globally coupled with the replacement demand.For ERW pipes, which are primarily used for City

Gas Distribution network, we have calculated our demand based on several ongoing natural gas pipeline

projects in India. For Seamless pipes which are extensively used for E&P projects; our demand is based

on onshore and offshore metreage drilled. Additionally, we have detailed analysis of PVC and HDPE

pipes which have become preferred material in the construction industry and several government

projects. The cost analysis and pricing information presented in the report will help the reader identify

the critical items and their trends.

The company overview section in the report provides detailed profiles of the top seven players in the

industry, including their financial and operational data and product range. The report also provides

manufacturing process and technical aspects in the industry overview section.

The report provides CAARE Research’s outlook and challenges on Indian pipe industry for the next 3-5

years along with adetailed demand break-up within each sub-segment of steel pipes. CARE Research

has developed a robust methodology for forecasting domestic demand. It takes into account several

initiatives taken by the Indian government to provide basic water supply and sanitation and also

emphasis on oil and gas sector which serves s a backbone to the pipe industry as awhole.

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 A Look into the Indian Economy Industry

India is the fourth largest economy in the world and it’s the largest democracy with second largest

GDP among emerging economies. World Bank’s President Dr. Jim yong Kim confirmed that India is

not the world’s 4th largest economy after USA, China and Japan in

PPP (Purchasing Power Parity). It is also one of the ten fastest growing economies in the world.

With 1 billion populations, India remains on the fastest growing economies and even in the present

worldwide economic slowdown, has maintained GDP Growth rate of nearly 6%.

India today is 7th most attractive destination for foreign direct investments, after US, China, Brazil,

Mexico and Germany. Besides, India offers higher rate of returns and profitability than anywhere else

in the world.

Out of 1 billion population the upper and middle class constitutes 20% or 200 million people (or 30 to

40 million houses). By rent per capita:

• 2 percent of Indian has a per capita income in excess of 14,500 Euros, which means 20 million

people.

• 8 percent of Indians have a per capita income of more than 3,900 Euros, which means 80 million

people.

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• 10 percent of Indians have a per capita income in excess of 3,200 Euros, this is about 100 million

people

Overall Economic Scenario

1. The Indian market has been enormous with a large base.

2. Levels of affluence are high- with the number of individuals in the “high: income demographic group

doubling each year, according to NCAER statistics.

3. The actual “disposable” income at the disposal of the affluent Indian is as high as three to five times

higher as the official statistics, on account of the very large proportion of unaccounted (“black”)

money income.

4. The market has, due to exposure to overseas products and lifestyles, displayed the willingness and

ability to purchase overseas brands and products at high prices.

5. Customs duties and tariffs have been drastically reduced, in keeping with government

Policy to open up the economy – a policy which has stayed constant despite changes in government.

All the products in the INDEX product range are now permitted for import into India under OGL or

the Open General License, which implies that no special import license is required for import.

6. Despite the cut in duties, the rate of customs duties is fairly substantial which makes the prices of

products higher in India. There is a huge demand for Security systems, lighting and consumer non-

durable and appliances, Emerging demand of Home automation

7. While the Indian middle class still does not have as high a rate of obsolescence as the US, and tend to

use their Security systems for several years before changing or upgrading, the actual size of this

segment makes investment in this market more than worthwhile. The affluent classes however, do

have high rate of obsolescence of smart tech products constantly.

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8. All the above factors put together make manufacturers and retailers of a wide range of consumer

durables. Several overseas companies have already entered the market and have been extremely well

received by the market.

Market worth 79.57 Billion usd by 2022

According to the new market research report " Market by Protocol and Technology (Network

and Wireless), Product (Lighting, Security and Access Control, HVAC and Entertainment

Control), Software and Algorithm (Behavioral and Proactive), and Geography - Global

Forecast to 2022", the home Automation system market was valued at USD 39.93 Billion in

2016 and is expected to reach USD 79.57 Billion by 2022, at a CAGR of 11.3% during the

forecast period.

Early buyers will Receive 10% customization on Reports

The home automation system market is driven by factors such as the significantly growing IOT

market, cost reduction measures enabled by home automation systems, presence of a large number of

manufacturers expanding their product portfolios, and the increasing importance of home monitoring

from remote locations.

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“Market for proactive segment to grow at the highest rate between 2017 and 2022”

The market for the proactive software and algorithm segment is expected to grow at a high

rate in the forecast period due to their ability to perform a comparative analysis of the energy

usage patterns based on the time of day, historical data, and weather conditions.

“North America expected to dominate the home automation system market

between 2017 and 2022”

North America is home to some of the prominent companies in the global home automation

system market including Honeywell International Inc. (U.S.), Acuity Brands, Inc. (U.S.),

Johnson Controls Inc. (U.S.), United Technologies Corporation (U.S.), Acuity Brands (U.S.),

and Crestron Electronics, Inc. (U.S.). This is the major reason for its dominance in the home

automation system market. The demand for domestic energy management systems and the

growing trend of green homes have contributed significantly toward the growth of this market.

The number of smart homes in North America, especially the U.S., is much higher than that in

any other region in the world. This market is expected to grow at a steady pace during the

forecast period. Major players involved in the home automation system market include

Legrand, Ingersoll-Rand PLC, Schneider Electric SE, and Honeywell International, Inc., ABB

Ltd., Control4 Corporation, Crestron Electronics, Inc., Johnson Controls, Inc., and Siemens

AG.

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About MarketsandMarkets

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Chapter 2

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 REASEARCH DESIGN

Title of the Study

The title of the study is – “Promotional Strategy Adopted as Prescribed & Ported by VNBalaji

India Pvt. Ltd.”.

Statement of the Problem

The Internship is mainly undertaken to study the sales promotional strategies at VNBalaji Pvt.

Ltd. The intention of the study is to find what attributes needs further improvement in order to

make the product more preferable in the market.

The main aim of the study is to uncover new relationship and identify any problem that may

arise in future. Hence, exploratory research is been conducted. Exploratory research as its name

implies endeavors of exploring the possibility of doing research on a subject where due to lack of

existing knowledge framing and testing the hypotheses is difficult. In today’s crowed marketplace

where products and services are touting themselves to be the best, it is vital to stand out in the

crowd. The study was undertaken to explore how a company or brand can ensure a store that stands

out and not get lost in the crowd.

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 Objectives of the Study

1. To study the various promotional strategy adopted by VNBalaji Pvt. Ltd.

2. To find out the footage of VNBalaji Pvt. Ltd. With respect to other players in the market.

3. To observe and understand the practice followed by VNBalaji Pvt. Ltd.

4. To find out the communication linkages and de-linkages in the organization.

5. To study the activities of each and every department of the organization.

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 Scope of the Study

This project was undertaken for a specific period in VNBalaji Pvt. Ltd., Canal Road, Bansgaon

Colony, Kalepur, Gorakhpur, Uttar Pradesh 273001. It is an exercise that is well planned into the

curriculum giving the researcher a valuable opportunity to understand the working dynamics of the

organization and to experiment and exhibit the recently acquired management and administration skills.

The prospect of the Automation sector in India seems positive. The Indian Automation industry has

awakened to interesting times! The last ten years have seen changes in the shopping malls, Hospitals.

Consumers today no longer look for mere practicality in Automation, instead, they look for Smart Home

Technology, i.e. lifestyle living. Realizing the tremendous market potential and to make the most of it,

the study was undertaken.

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 Limitations of the Study

Every study is bound by limitations and as such this is no exceptions.

1. “Change is Constant” rule of nature. Hence, the study undertaken may not hold good for longer

duration.

2. The study was conducted under the assumption that the information given by the respondents is

authentic.

3. The analysis and suggestion are given only with respect to marketing aspects as technical

suggestion with respect to the product could not be given.

4. Confidential matters were not disclosed by the company.

5. There were time constraints.

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 Methodology of the Study

A variety of methods of study have been adopted by the researcher to fulfill the objectives of

the study.

➢
In order to have a better grasp of the study, the researcher chose to become a keen observer,

studying the various aspects of the organization.

➢
To have a broader perspective of the study, the researcher attended the Live Exhibition in

Builders Association meet held at R.K Beach Grounds wherein the products of VNBalaji Pvt.

Ltd. were displayed.

➢
In order to fund out the market realities, the researcher visited the showrooms of certain

companies having almost similar product profile as that of VNBalaji Pvt. Ltd.

➢
With a view to understand the crunch of the matter and to find out the ground realities, the

researcher formed a schedule specifically for the set of respondents. The researcher met the

respondents personally, interviewed them and made them to fill the questionnaire.

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 The researcher has done the research in the following manner;

a) Type of the research undertaken is analytical.

b) Technique used is random sampling.

c) Sample size taken is 30.

d) Sources of data used include both primary as well as secondary data.

e) Tool used for the research is questionnaire.

f) Plan of analysis are tables and graphs.

Data Collection Methods

In this study, the foremost data collection instrument used is the questionnaire method. The

questionnaire has been designed with both open ended and closed ended questions. Apart from this, the

research instrument consists of primary and secondary data collected for the study.

Primary Data:

Here first hand information is obtained by distributing printed questionnaire to the marketing executives

of the company. Data was also obtained from the observation and interview technique adopted by the

researcher. Moreover, information was disseminated by the departmental heads.

Secondary Data:

Here the information is obtained from the brochure of VNBalaji, books, websites, newsletter, journals,

magazines, newspapers, etc.

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Chapter 3

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 Company Profile

VNBalaji India Pvt. Ltd.

Welcome to the world of captivating creation by the wunderkind of the industrial chain

business VNBalaji India pvt ltd. We started our company for not only the pecuniary prosperity

but also for contributing to the society for some humanitarian reasons. With the pace of the

ace advancement of technology and industrial sector, we have always put our best effort in

the products for the contentment of our clients. We congratulate and convey deepest gratitude

from the core of our heart to our virtuous clients and well wishers for providing the privilege

to serve them.

The Thought

With the initiative to bring about a change in the lives of people the human society has paved the way of

innovation. The concept of renovation has also made the way for evolution, a path of progress for an idea.

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 The Initiation

Pipes are the one of the most essential components that has been the part of human civilization right from

the get go of construction. It was invented for passage of fluid like water, oil or air in different sectors for

transportation, supply or ventilation. Over the time the nature and face of these equipment has change

quite a bit and also its application. With the thought of manufacturing the best quality of these pipes for

the people and helping in the progress of modern life, VNbalaji Pipes under the banner of VNBalaji India

PVT. LTD. Has ventured into the pipe making business with an objective to provide the best and flourish.

Our Infrastructure

In the process to accomplish our task in an efficient manner, we have developed our workplace over a

wide area. The complete working structure has been kept coordinated and organized numerous

departments. These units are equipped with the latest range of machinery and tools in order to carry out

the production task in a hassle-free way. We laid down segregation and for the reason are accomplishing

the entire business in a fruitful manner.

Departments that we have at our workplace are:

 Quality control

 Management

 Administrative

 Engineering

 Marketing & sales

 Warehouse & packaging

 Customer care

Page | 32
Quality Assurance

Working with a belief to bring forth products of incomparable quality standard and to render effective

services, we follow & maintain industry approved norms in the procedure. The complete production

procedure is accomplished under the stern surveillance of our expert personnel. These professionals are

instructed strictly to pay their stringent & committed approach so that it could be possible to meet our

customers’ expectations in terms of outcomes introduced to them.

Our Team

To deliver best-in-class products and services, we are supported by effulgent personnel. In the process, we

hire workforce liable and committed towards their duties, evaluating their previous work records.

Divisions have been made initially in order to execute & maintain work hierarchy and for the reason, we

have gained immense success in regulating the entire venture. Professionals incorporated with us are

trained and upgraded on regular basis in terms of product quality and quantity.

Personnel in our team are named as:

 Quality controllers

 Management staff

 Administrative personnel

 Engineers

 Marketing & sales staffz

 Logistic staff

Page | 33
Why Us?

We initiated our firm with an objective to make our customers satisfied and in the process; we are availed

with advanced working facilities & best team. Our working policies are customer-centric and transparent

in order to avoid any kind of flaw during the working hours or products delivered finally. From sourcing

of raw materials till the final delivery, our expert pay committed approach and thus, earn the total

satisfaction of our valued customers.

Some of the catalyzing facts responsible for making our name are:

 Qualitative offerings

 Vast infrastructural facilities

 Experienced personnel

 Cost-effective budget

 Prompt delivery

 Transparent working procedures

Page | 34
 Our Products

Rigid PVC Pipes

VNBalaji India are the new merchants in the market of pipes and fittings and what we offer is the best

quality polyvinyl chloride pipes or PVC pipes. The market is flooded with an array of pipes of different

dimensions and textures for various purposes. We also offer our customers a plethora of choices for

selecting the most appropriate pipes for their workings. The latest rigid PVC pipes is one of the forerunner

for heavy duty piping activities and VNBalaji India vouch for providing the very best in the class. The

materials used for manufacturing the rigid PVC pipes and the dimensions & textures of their makings are

all as per the specifications of Bureau of Indian Standards.

Characteristics of Rigid PVC Pipes

 The rigid PVC pipes are manufactured by VNBalaji India keeping in mind the standard specified

and their nature of application.

 The rigid PVC pipes come in every dimension ranging from 20 mm to 200 mm, with an option of

upper limit increment.

 The rigid PVC pipes form VNB pipes come in class of 1 to 5 with pressure rate sustainability

ranging from 2.5 Kgf to 10 Kgf with upper limit relaxation.

 These specifications are all and their attestations are all performed according to IS 4985 – 2000.

These well mended rigid pipes are very durable and feasible and what these rigid PVC VNBalaji India

offer is

 Lightweightness for easy portability and easy handling

 Flexibility and strength for easy installation in even higher elevations

Page | 35
  Excellent resistance against corrosion and abrasion

 Smoother flow for any fluid due to its inert nature and frictionless inner walls

 Self socket-able nature and fewer strong solvent cemented joints

Scope of application of Rigid PVC Pipes

The major usage of rigid PVC pipes from the house of VNBalaji India Pvt. Ltd. is in the fields of

 Irrigation for agriculture

 City or township water supply

 Sewage

 Chemical fluid supply

PVC Tubing / Lay Flat Tubes

The tubing process is a very popular in every sphere of human activity be it domestic or be it commercial.

The polyvinyl chloride pipes or PVC tubing / Lay Flat tubes are basically flexible and elastically sound

pipes that are quite soft and smooth in texture used for different purposes and are very useful in transport

of low pressure fluid flow generally opted for fluid sluggish outletting activity and drainage. The names of

the PVC pipes are different because of their different operational sectors. The PVC tubing is used for

domestic or residential purposes and the Lay Flat tubes are used for commercial or industrial activities.

The VNBalaji India’s pipes are one of the proud manufacturers of PVC tubing / Lay Flat tube and we

guarantee that all the products are made with major detailing all as per the decorum of Bureau of Indian

Standards.

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Characteristics of PVC tubing / Lay Flat tubes

The PVC tubing / Lay Flat tubes from the VNBalaji India’s pipes are made with materials and techniques

approved by BIS. The salient features of PVC tubing / Lay Flat tube are given below

 The pipes are made with non reinforced material to give the soft and smooth texture

 Tubes are made in dimensions ranging from 4.5 mm to 50 mm for PVC tubing and 50 mm to 200

mm for Lay Flat tubes

 The thickness of the pipes ranging between 0.75 mm to 6 mm

For low pressure flow these pipes are best and VNBalaji India offers these pipes at a very cost effective

way with high durability guarantee.

Scope of application of PVC tubing / Lay Flat tubes

The VNBalaji India supply PVC tubing / Lay Flat tubes to every sector for smoother operation of their

activities. Usage domains are

 Gardening

 Horticulture & Orchard

 Residential water supply

 Pesticide spraying

 Agriculture & Irrigation

 Automobile washing

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 PVC Suction & Delivery Pipes

The process of suction is greatly used in everyday working sphere both in domestic and commercial

domains for various activities. The polyvinyl chloride pipes or PVC suction & delivery pipes from

VNBalaji India’s pipes are one of the best quality products offered from the sheds of the maker to the

customers. The PVC suction & delivery pipes are ideal for replacing the conventional rubber pipes

because of superior quality and performance. The new PVC suction & delivery pipes are spirally designed

with efficient bends and curves for proper stretch and high pressure withstanding ability. The pipes are

very good in suction and delivery process and are manufactured with utmost detailing in accordance with

the specifications of Bureau of Indian Standards.

Characteristics of PVC suction & delivery pipes

The PVC suction and delivery pipes from VNBalaji India’s pipes are manufactured with proper

standardization. The salient features of these pipes are as follows

 The pipes’ dimension range from 20 mm to 250 mm with upper limit relaxation and are made with

PVC standardised under IS 4985, IS 12231, ASTM D2241, ASTM D 1785 etc.

 The material and texture of the pipes are so done to remain resilient and effective under extreme

pressure and temperature for both external & internal impacts

 The joints are made with socket joints of solvent weld or rubber ring variant

 The pipes are both thermostatically and hydrostatically sound

 The pipes are very easy to handle and install with high flexibility and anti corrosion-abrasion

property

Page | 38
Scope of application of PVC suction & delivery pipes

The variants of PVC suction and delivery pipes of VNBalaji India’s pipes are used in different sectors like

 Green medium duty suction pipes for irrigation and processing sectors

 Grey heavy duty suction pipes for query and chemical industries

 Blue oil resistant suction pipes for oil industry

 Transparent non toxic pipes for food and beverage industries

PVC Duct Pipes

Pipes are generally used for transportation but exhausting is also an important aspect of piping action. The

pipes are made with polyvinyl chloride or PVC for better activity, aeration & flow control. The PVC duct

pipes from the VNBalaji India’s pipes are superior in both material quality and performance and more

able than conventional reinforced concrete cement (RCC) or rubber duct or vent. The PVC duct pipes are

quite wide in diameter and are spirally designed for more flexibility. The PVC duct pipes are super

reinforced with soft quality material inner wall for better bending and curving options. The VNBalaji

India’s pipes are made with maximum effort and with latest technology all according to the latest

specifications of Bureau of Indian Standards or BIS.

Page | 39
 Characteristics of PVC duct pipes

The PVC duct pipes of VNBalaji India’s pipes are made keeping in mind the specification of

standardization certifications. The major features of the PVC duct pipes are discussed in the following

facts

 The diameter of the duct pipes are quite large and it generally ranges from 6 inches to 24 inches

keeping in mind the roundness fact with respect to extrusion time

 The PVC duct pipes ate made with material extremely heat resistant for these are mainly used for

exhaustion activities.

 Pipes and fittings of duct vent are made with PVC under IS 12454B and under ASTM D1784

respectively to provide the customer with most appropriate and proficient product

The VNBalaji India’s pipes made with such dimension and process made the duct pipes

 High tensile

 Flexible

 Heat resistant

 Low maintenance cost

 Sturdy

Scope of application of PVC duct pipes

The PVC duct pipes manufactured from the house of VNBalaji India’s pipes are made available and

usable in various sectors like

 Domestic vacuum suction pipe

 Residential exhaust

Page | 40
  Agricultural sector

 Chemical sector

 Paper and pyre industries

 General sewage and waste treatment and many more

PVC & CPVC Ball Valves

Pipes are needed to keep the flow of a running stream of fluid uninterrupted for continuous supply but a

valve is always necessary to control the flow of the fluid at times when the pipes’ strength is at critical

limit. Such is the value of a valve in a fluid flow network for not only controlling the flow but also

adjusting the pressure, cutting off the flow and mixing different things in the fluid as per requirement. The

PVC & CPVC ball valves from the VNBalaji India’s pipes are very durable and cost viable all while

having a hassle free easy installation process. The sustainability vouches for almost nil maintenance and

offers great performance for any flow infrastructure.

Characteristics of RVC & CPVC ball valves

The PVC & CPVC ball valves from the VNBalaji India’s pipes are of great use in both domestic and

commercial sectors and are made according to the mentioned directives of Bureau of Indian Standards.

 The Teflon of PTFE floating ball seat design helps in smoother operation and provides for higher

resistance against abrasion & corrosion

 The O-Ring is made with wear & tear resistant elastic polymer that helps in good knob control and

better leak proofing

 The handle is made from high quality material for instantaneous adjustment operations

 The diameter of the ball valves range from half inch to two inches

Page | 41
  The CPVC ball valves are made with SDR 11 series under ASTM D2846 and the PVC are in

according to ASTM D2466 from the SCH 40 series

These characteristics of the PVC & CPVC ball valves of VNBalaji India’s pipes make them

 Hydrostatically sound

 Easy to operate and lightweight

 Easy fit in both vertical and horizontal alignments

 Corrosion and abrasion resistant

Scope of application for PVC & CPVC ball valves

The ball valves of VNBalaji India make are of massive use in the sectors of

 Water supply and distribution in residential and industrial zones

 Agriculture

 Chemical processing

 General utility

CPVC Plumbing Pipes for Hot and Cold Water

The pipe manufacturing industry is greatly leaning on the latest material of PVC the chlorinated polyvinyl

chloride or CPVC. It is observed that the pipes made out of CPVC is more superior in structure &

performance and furthermore these are easy to handle & install than conventional pipes like copper iron

pipes or CI pipes, ductile pipes and reinforced cement concrete pipes or RCC pipes. What is truly required

for hot & cold water plumbing is high temperature withstanding ability and with anti corrosive nature

along with heat retention capability for proper transport of fluid in desired condition. The CPVC pipes

Page | 42
from VNBalaji India’s pipes are manufactured with latest Japanese technology for forging a thermostatic

plumbing system in each and every pipe & fitting.

Characteristics of CPVC pipes for hot & cold water plumbing

All the pipes and fittings are produced as per the specifications of Bureau of Indian Standards. The CPVC

pipes from VNBalaji India’s pipes have the following salient features

 The diameter of the pipes ranges from 15 mm to 50 mm and are made by following the SDR 11

and SD 13.5 series from copper tube size or CTS of standardization under IS 15778 and ASTM

D2846.

 For moulding & texturing of the fittings the specifications of IS 7834 & IS 10124 are followed

respectively.

The CPVC pipes built on these makings are

 Very high heat resistant

 Good thermal expansion coefficient

 Resilient in flow carry of any condition fluid

 Good heat retention property

 Resistant against chemical corrosion and different kinds of abrasions

Scope of application of CPVC pipes for hot & cold water plumbing

The CPVC pipes of VNBalaji India’s pipes are used greatly on various fields like

 Hot & cold water distribution in various commercial and domestic areas

 Carriage of different food quality fluids

Page | 43
  Water supply and water treatment system

 Breweries & distilleries

 Chemical industries and more

CPVC Pipes & Fittings

Chlorinated polyvinyl chloride or the CPVC is the latest chemical tech used for manufacturing better

quality of pipes for both domestic and commercial purposes. The VNBalaji India’s Pipes are now

venturing into the market of CPVC plumbing by producing pipes and fitting made out of CPVC material.

The materials used are forged into durable and sustainable plumbing equipments through modern

Japanese technology making them better suited for all purpose usage. The VNBalaji India’s pipes are

manufactured according to the processes, dimensions and quality standardized and certified by the Bureau

of Indian Standards.

Characteristics of the CVPC pipes & fittings

 The dimensions of the pipes are very much maintained according to the standards of copper tube

size or CTS. From half inch to two inches, this is the range of pipes diameter offered at VNBalaji

India’s pipes.

 The CPVC pipes & fittings of VNBalaji India’s pipes are available in two variants of SDR 11 &

SDR 13.5 in accordance to IS 15778 where as the fittings are of SDR 11 category following the

ASTM D-2846 specifications.

 The fittings are made with special brass inclusion and superior thread insertion to resist corrosion

due to flow at different force and against different nature of the fluids passing through.

This high sustainability of the CPVC pipes & fittings of VNBalaji India’s pipes offers better reliability

and grants easy passage of flow for any and every kind of fluid thus increasing the cost effectiveness in

Page | 44
commercial use. The CPVC pipes & fittings are superior in built & performance than conventional pipes

and furthermore these are durable & feasible.

Scope of application of CPVC pipes & fittings

The CPVC pipes & fittings form VNBalaji India’s pipes can be used

 For plumbing in buildings – residential or industrial, distilleries and breweries

 For drainage purpose

 For oil transport

 In paper & plating industries

 For water distribution in tanks and swimming pools

 Salt water lines

 For ash handling & coal washing and many more

VISION AND MISION

VISION
‘Focus the organization on the execution of its strategy’

MISSION
‘To deliver water and energy to the world in the most efficient way’

OBJECTIVES OF THE COMPANY

1. Manufacturing agricultural pipes and PVC pipes.
2. To giveemployment to many unemployed people and thereby to make profit.
3. To pay costs, charges and expenses of promotion and establishment of the company.

Page | 45
Core Values

Respect for people

We respect every employee and strive to provide an interesting and inclusive

environment where they can express their enthusiasm and realize their full potential.

Passion for Growth

Enhance lives of people by providing products which helps in water conservation

Business integrity

We are proud to stand by integrity in all our dealings and follow the highest standards of business

ethics.

Page | 46
 ORGANIZATION CHART

Managing Director

General Manager

Purchase Personnel Production Finance Marketing

Manager Manager Manager Manager Manager

Time Keeper Supervisor Assistant

Department
Workers

Purchase
Department Production Stores Quality control Marketing
Department Department Department Department

Accounts Personal Maintenance

Department Department Department

Page | 47
 FINANCE DEPARTMENT
The activities expected from a finance department cover a wide range from basicbookkeeping to
providing information to assisting managers in making strategic decisions. What to expect from your
finance department will depend largely on factors such as how much involvement the owner/manager has
in the organization.

At the base level, your finance department will be responsible for all the day to day transactional
accounting for the business. This will include the tracking of all transactions and the management of any
government reporting. In very small owner-managed businesses this role is often filled by a family
member with accounting experience. An outside accounting firm is usually used for annual FINANCIAL
statements and returns. In larger organizations this role will extend right through to preparing
the FINANCIAL statements with an external auditor engaged for assurance purposes.

The finance department is also responsible for management of the organization’s cashflow and
ensuring there are enough FUNDS available to meet the day to day payments. This area also
encompasses the credit and collections policies for the company’s customers, to ensure the organization is
paid on time, and that there is a payment policy for the company’s suppliers. In most organizations there
will be some form of forecast prepared on a regular basis to systematically calculate the ongoing cash
needs.

Finance department functions

 Salary disbursement with cash transaction
 Co-ordination with bankers
 Day to day cheque handling and payment to suppliers
 Cash voucher
 Payment vouchers
 Preparation of letter of credit
 Calculation of VAT-value added tax

Computation of CST-central sales tax

Page | 48
PREPARATION OF ACCOUNTS
AUDITS

INTERNAL AUDITS-done every year (done by Mr. MANOJ).

Main purpose of prepare accounting statement is to as certain profit and loss during the specified
period and show the financial condition of the business. Accounting is the process of recording,
classifying summarizing and interpreting the financial information about the activities of a concern. The
various account records are useful for a concern to take intelligent financial decision.

The company maintains various books of accounts for recording financial transaction. The book
maintained by the company are listed below.

1. CASH BOOK

As the name suggest the purpose of this book is to record transaction-involving cash n day to day
basis at the end of every day. The balance is arrived to determine the clearing cash balance of the day cash
receipts and payments are recorded in the cash book.

2. BANK BOOK

The objectives of this book is to record the receipts and payments made payments made through
bank cheques, drafts etc. cash deposited into bank are recorded on the debit side of the book and payments
made by way of cheques and drafts are recorded on the credit state of the book.

3. SALES REGISTER

A sales register is maintained by the company for recording every day sales to its customers. This
register contains party name, invoice no, date and amount of sales etc.

4. PURCHASE REGISTER

The company also maintains the purchase register for recording both local and interstate purchase.
This register provided the list of suppliers of the company.

Page | 49
 5. JOURNAL LEDGER

There are some transactions, which could not be taken to either purchase or sales register. These
types of transactions are recorded in the journal register.

6. OTHER RECORDS MAINTAINED BY THE COMPANY ARE

1. Salary register
2. Labors advance register
3. ESI and PF records
4. Employees welfare expenses
5. Job cards and time input register

STRUCTURE OF FINANCE DEPARTMENT

FINANCE
MANAGER

ACCOUNTS
MANAGER

ASST; ACCOUNTS

CASHIER/BILLING
CLERK

Page | 50
 PRODUCTION DEPARTMENT

Production is process of making inputs into outputs or transformation of rawmaterials into finished
products. The plant work as one shift, the time period has of 8 hours.

Raw Material

The main raw material required compounded PVC resin. Presently both PVC& Polyethylene
Plastics raw materials are indigenously manufactured. Other compounding materials like Plastisizers,
Stabilizers, Lubricants and fillers are also manufactured in India. No problem is envisaged for
procurement of PVC resin and the other required compounding materials. The raw materials required are
as follows:

 PVC resin :150.00MT

 DOP: 6.80 MT
 Stabilizers :3.20 MT
 Processing acids : 1.20 MT
 Colorant:0.70 MT
 Filler: 10.20 MT

Process

The various process steps involved in the manufacture of PVC pipes are as follows:

 Extrusion
 Sizing
 Traction
 Cutting

Page | 51
  Extrusion

PVC uncompounded resin, unlike some other thermoplastics is not suitable for direct processing and
end instability, it is necessary to mix additives to the PVC resin. Following are some of the addittives
which are generally used for the manufacture of rigid pipes.

Plasticizers: The common plasticizer in use is DOP,DIOP,DBP,DOA, DEP, Reoplast, Paraplex etc..

Stabilizers: The common stabilizers are lead, barium, cadmium, tip, stearate etc..

Lubricants:widely used lubricants are Buty-Sterate, Glycerol Moni-Sterate, and Exposidised Monoester of
oleic acid, stearic acid etc..

Fillers: Fillers are also used for producing special quality product (e.g. calcined clay is used to improve
the electrical properties of cable compounds).

 Sizing:

The pipes coming out from the extruder is cooled in the sizing operation. There are basically two
types of sizing is used for manufacturing of pipes. They are:

 Pressure sizing
 Vacuum sizing

 Traction:

The last operation is needed is cutting. There are basically two cutting techniques for rigid PVC pipes
viz. manual and automatic. The pipes are then tented for ISI marks and are ready for Dispatching.

Page | 52
Machinery:

The major equipment required for the unit are as follows:

 Windsor Model TSC-80 Rigid pipe plant for pipes 90 and 110 mm OD -1no.
 High speed mixer capacity 100 kgs with controls and cooling arrangement-1no.
 Heavy duty scrap grinder- 1no/.
 Over head water tank-1no.
 Air compressor 2HP- 1no.
 Pipe storage racks – 10 nos.

STRUCTURE OF PRODUCTION DEPARTMENT

PRODUCTION
MANAGER

ASST: QUALITY
PRODUCTION CONTROLL
MANAGER MANAGER

ASST:MANAG
EMPLOYEES
ER

WORKES WORKERS

Page | 53
MARKETING DEPARTMENT
Marketing means working with markets (i.e.) trying to potential exchanges for the purchase of
satisfying human needs and wants. Marketing may be defined as human activity directed at satisfying
needs and wants through exchange processes. Marketing in its broad meaning includes the policy,
techniques and methods necessary for selling and distribution. Without marketing function, goods and
services cannot be sold.

Marketing department is only income generating department, all other departments generate
payment or cost, it does not mean all other departments are burden to firm, every generating of satisfied
customer etc.

AMCO PIPES marketed their products it include PVC PIPES,sales manager is the head of the department.
The brand name of “AMCO PIPES” reduce their marketing effort.AMCo pipes following direct and
indirect sale to customer.

Marketing is the total commercial and support activities of any enterprises to effect sales of
company and products or services.

While fixing the rate of yarn, the marketing manager considers the following factors.

 The nature and extent of demand

 The long and short term costs of manufacturing and selling the product
 The competitive reaction
 The sales promotion strategies
 The channels of distribution
 Profit margin

In addition to that the following charges are:

 Lorry Freight
 Godown rent
 Insurance
 Brokerage
 Bank charges
 Basic excise duty
 Additional excise duty

Page | 54
Objectives of marketing department

 Increasing purchase
 Creation of goodwill
 Cost reduction
 Price stability
 Profit through customer satisfaction
 Ensure growth
 Providing wide chose of goods
 Improving quality of life
 Retaining customers
 Achieving certain market share
 Reaching a certain level of sale
 Increasing sailing existing market
 Market development

Sale promotion media of AMCO PIPES

 Local television advertisement
 Local newspaper advertisement
 Outdoor advertisement
 Field executives
 Magazines advertisement

Sale promotion in AMCO PIPES

Sales promotion is a key element of marketing department. Its importance and objectives are same
than marketing department given below.

 Immediate purchase
 To influence the customer for buying the product
 Make the efforts of whole sellers and sales personal more effective
 To attract new customer
 To meet competition
 To popularize the product so as to stimulate the demand

Page | 55
 DISTRIBUTION CHANNEL

COMPANY

AGENT

CUSTOMERS RETAILER

CUSTOMERS

AGENT
Agent plays important role in the sale. First of all the target is fixed by taking into account the
current trend and previous year performance. Thus this target is divided between the agent by studying
expected business in different areas.

Page | 56
 PURCHASE DEPARTMENT
The purchase department occupies a vital and unique position in the organization of an industrial
concern, because purchase is one of the main functions in the success of modern manufacturing concern.

IMPORTANCE OF PURCHASING

Sales depend upon the purchase, under stiff competition, products will have to be sold at the
prevailing market price, and controlling cost will maximum the profit. Business profit depends upon
turnover of investment. The purchasing department get materials of good quality and delivery schedules
are to be maintained. The purchasing department comes in close contact with many other companies and
the general market in course of discharging its function.

DUTIES OF PURCHASE DEPARTMENT

 To purchase department is responsible for all types of product purchasing and contacts with
outside suppliers.
 Selecting sources of supply for raw material and services to be maintained for this purpose, going
through supplier’s advertisements, pricelists and quotations.
 To prepare purchasing budget.
 To place and follow up a purchase orders.
 Maintain records of all purchases.
 To check whether it the material has been purchased at right time and at economical rates.
 To market sure through inspection that kind of material has been purchased.

PURCHASE OF RAW MATERIALS

The raw materials which are purchased by the company are polished yarn, cotton and fibre.

 The purchase is purely based on demand and price condition authorised from head
office.

 The company purchase their demanded raw materials only from the certain
agencies as directed by the head office

 The company doesn’t have any direct dealings and transactions with the suppliers

Page | 57
  The company, at present purchase their demanded raw materials from RELAINCE
INDUSTRIES

 RELAINCE INDUSTRIES at Madurai and Trichy acts as a real time agents for this
particular company

Being a large scale sector, the company follows the bulk purchase that helps the company to manufacture
maximum outputs without any fluctuations.

DISTRIBUTION CHANNEL

As mentioned, the agencies are the suppliers for the company whereas the company also
purchase their demanded raw materials from the other distributors and dealers who offer yarn and cotton
readily at lower price along with the good quality and credibility.

SUPPLIERS

 As discussed, the company have no direct supplies. The company satisfies its purchase through the
concerned agents.
 The company also tends to practice the CHAIN MANAGEMENT that indirectly denotes the
distribution channel from the suppliers to the company via agencies

Page | 58
 PURCHASE
DISTRIBUTIO
FROM
SUPPLIERS N AMONG
SELECTIVE
AGENTS
AGENTS

QUANTITY AND QUALITY

 The company doesn’t adopt any perfect methodology for the quantity of inputs.
 The company is very sure about the outputs.
 The maximum quantity of output produced per day is 10,000 kg.
 The company also expects certain measures of quality in every aspect of functions of the company i.e. from
purchase to the sale.

QUALITY POLICY

We, at Lakshmi mills are committed to manufacture quality products to meet customer needs and
satisfaction. We shall enhance the customer satisfaction through the continual improvement by excelling in
our manufacturing activities through training and development of all employees with the continuous
implementation of ISO 9001 of monitory management system effectively.

Page | 59
 HUMAN RESOURCE DEPARTMENT

HUMAN RESOURSE DEPARTMENT FUNCTIONS

 Recruitment
 Attendance
 Payroll
 Statutory requirement
 Grievance
 Performance of management
AMCO pipe industries group of companies recognize the importance and contribution of its
human resource for its growth and companies have been practicing methods and practices for human
resource development. With utmost respect to human values, company serve its human resource with
integrity, through avariety using appropriate training, motivation in of service by techniques and employee
welfare activities.
This departments mission is to enable a cultural within the organization to attract and retain the
right personal and direct their efforts in the achievements of individual and organizational goals. And it
also provide help and support to employees, motivate and retain staff, strive to create a distinguished
climate for the individual growth of the employees.
Personnel Management may be defined as the planning organizing, directing and controlling of the
procurement, development, compensation, integration and maintenance of people for the purpose of
contributing to the organizational goals.
HR DEPT. DUTIES
 Human resource managing
 Human resource planning
 Man power planning
 Selection
 Motivating
 Training
 Performance appraisal
 Promotion and transfer
 Compensation
Page | 60
  Grievance handling
 HR record keeping

MOTIVATION
AMCO pipes motivate staff through providing monitory and non-monitory benefits and give
annually best employee award each department.
Monitory and non-monitory benefits
 Salary
 Bonus
 DA

SELECTION OF EMPLOYEES
Based on the applicants experience and age limit they are selected.

TOTAL MAN POWER STRENGTH

The current manpower strength of the mill is as follows:

Total No.of persons working - 50 Members
Total No.of staffs - 5 Members
(Including Fitters, supervisors and other staffs)
No.of shifts - 1

WORKING HOURS
I shift - 9.00 to 5.00
Per shift working members is 16+4 (Supervisors, Fitters, Mastry, and Electrician).

WAGE SYSTEM
Time wage

Page | 61
MAINTAINING OF RECORDS
 Control of workers
 Prepare wages and salary records
 Maintain leave record
 Maintain stationary records
 Journal and ledger

OTHER FUNCTIONS
 Health measures
 Welfare measures
 Safety measures

LIST OF HOLIDAYS
The company holidays includes the national and general holidays. They are listed below.

NATIONAL HOLIDAYS
 Republic day
 May day
 Independence day
 Gandhi jayanthi

GENERAL HOLIDAYS
 Pongal holidays
 Deepavali
 Christmas
 Ayuthapooja

RETIREMENT
The company gives retirements to the labourswho have completed 58 years of age.

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CHAPTER- 4

Page | 63
 DATA ANALYSIS AND INTERPRETATION

1) Representing the Gender of the marketing executives.

Gender No. of Respondents Percentage

Male 6 20%

Female 24 80%

Total 30 100%

Male
Female

24

Analysis

➢ 80% of the respondents are male.

➢ 20% of the respondents are female.

Interpretation

➢ Majority of the marketing executive are male.

Page | 64
2) Representing the pricing of products

Prices No. of Respondents Percentage

High 0 0%

Reasonable 16 54%

Competitive 14 46%

Low 0 0%

Total 30 100%

00

High
14
Reasonable
Competitive
16
Low

Page | 65
 Analysis

➢
54% of the respondents are of the opinion that the products are reasonable.
➢
46% of the respondents are of the opinion that the prices of the products are

competitive.
➢
None of the respondents feel that the prices of the products are either high or low.

Interpretation

➢
Majority of the respondents opine that the prices of the products are reasonable.
➢
The prices of the products are reasonable though they are competitive.

3) Representing the competitor’s strength

Strength No. of Respondents Percentage

Quality 0 0%

Brand Image 24 80%

Pricing 0 0%

Promotional Activities 6 20%

Total 30 100%

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 0

0
Quality
Brand Image
Pricing
Promotional Activities

24

Analysis

➢
80% of the respondents are of the opinion that the competitor’s strength is brand

image.
➢
20% of the respondents opine that promotional activities are the strength of the

competitors.
➢
None of the respondents feel that quality and pricing are the strength of the

competitors.

Interpretation

➢
Majority of the respondents opines that brand image is the strength of the

competitors.

Page | 67
4) Representing the quality of the products of VN Balaji Pvt. Ltd. with respect to

other competitors

Rating No. of Respondents Percentage

Good 17 57%

Very Good 13 43%

Fair 0 0%

Poor 0 0%

Total 30 100%

0 0

13 Good
Very Good
Fair
17 Poor

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 Analysis

➢
Majority of the respondents i.e. 57% are of the opinion that the products are of good

quality with respect to other competitors.

➢
43% of the respondents opine that the products are of very good quality with respect

to the other competitors.

➢
None of the respondents are of the opinion that the products are of fair or poor

quality with respect to other competitors.

Interpretation

➢
Majority of the respondents is of the opinion that the products are of good quality

and is at par with other competitors having brand names.

5) Representing the merits of the products of VN Balaji Pvt. Ltd. that differentiates

it from others

Marits No. of Respondents Percentage

Reasonable Price 10 33%

Quality 7 24%

Customized Product 10 33%

Finishing 3 10%

Total 30 100%

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 3

10

Reasonable Price
Quality

10 Customized Product
Finishing

Analysis

➢
33% of the respondents are of the opinion that reasonable pricing and a customized

product differentiates the products of VN Balaji Pvt. Ltd. from that of others.
➢
24% of the respondents are of the opinion that quality is the differentiating factor.
➢
10% of the respondents are of the opinion that finishing is the differentiating factor.

Interpretation

➢
Reasonable pricing and customized products differentiates the products of VN Balaji

Pvt. Ltd. from that of others.

➢
In fact, all the merits such as reasonable pricing, customized products, quality and

finishing contributes in differentiating the products from others.

Page | 70
6) Representing the promotion of the products of VN Balaji Pvt. Ltd.

Promotions No. of Respondents Percentage

Paper Insertion 7 24%

Telemarketing 10 33%

Store 10 33%

Showrooms 3 10%

Total 30 100%

3
7

Paper Insertion
Telemarketing

10 Store
Showrooms

10

Page | 71
 Analysis

•
24% of the respondents are of the opinion that paper insertions are used as
promotion of the product.

•
33% of the respondents opine that telemarketing is the means of promotion of the
products.

•
33% of the respondents feel that participating in exhibition has promoted the
product.

•
10% of the respondents are of the opinion that showrooms are used as promotion of
the product.

Interpretation
•
The company adopts a variety of promotional methods such as paper insertion,
telemarketing, display stalls, participating in exhibition, direct mail, presentations

and showrooms.

7) Representing the discount if given on repeat purchase

Discount Given No. of Respondents Percentage

Yes 27 90%

No 3 10%

Total 30 100%

Page | 72
 3

Yes
No

27

Analysis

•
90% of the respondents are of the opinion that the discount is given on repeat
purchase.

•
10% of the respondents are of the opinion that discounts are not given on repeat
purchase.

Interpretation

•
Majority of the respondents is of the opinion that discounts are given on repeat
purchase.

Page | 73
8) Representing the percentage of discounts given on repeat purchase

Percentage of Discount No. of Respondents Percentage

2-5% 20 66%

6-10% 5 17%

11-15% 0 0%

16-20% 0 0%

None 5 17%

Total 30 100%

0
0

2-5%
6-10%
5 11-15%
16-20%
None
20

Page | 74
 Analysis
•
66% of the respondents are of the opinion that 2-5% discount is given on repeat
purchase.

•
17% of the respondents opine that 6-10% of discount is given on repeat purchase.

•
17% of the respondents are of the opinion that no discount is given on repeat
purchase.

Interpretation
➢
Majority of the respondents are of the opinion that 2-5% discount is given on

repeat purchase.

➢
The company does not adhere to any stringent norm while giving discount on

repeat purchase as there is difference of opinion among the respondents.

9) Representing the way of marketing of the products

Way No. of Respondents Percentage

Direct Marketing (Showroom) 10 33%

Retailers 15 50%

Dealers 5 17%

Total 30 100%

Page | 75
 5

10

Direct Marketing
Retailers
Dealers

15

Analysis

•
100% of the respondents are of the opinion that the marketing of products are
through direct marketing.

Interpretation
•
The products are marketed through direct marketing and dealers and retailers are
not involved in the marketing process.

Page | 76
10) Representing the target consumers

Target No. of Respondents Percentage

Upper Class 3 10%

Middle Class 27 90%

Lower Class 0 0%

Total 30 100%

Upper Class
Middle Class
Lower Class

27

Analysis

•
10% the target customers are from upper class.

•
90% of the target customers are from middle class.

Interpretation
•
The target consumers are the upper class and the middle class.

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CHAPTER – 5

Page | 78
 SUMMARY OF FINDINGS AND CONCLISION

A Summary of Findings:

The finding can be grouped together into two broad categories such as;

Specific Findings:

•
This is pertaining to the objectives of the study.

General Findings:

•
This is with regard to the market dynamics and visits made by the researcher to companies

having almost similar products profile.

Specific Findings:

• The company adopts a variety of promotional methods such as paper insertion, telemarketing,

display stalls, participating in exhibitions, direct mail, presentations and showrooms.

• companies like Essa tech services and Effisol solutions came into the picture but the fact reveals

that there is no dominant player in the market. So every player is vying with each other to capture

a larger pie in the markets.

• Transparency is maintained at the levels of the organization.

Page | 79
• The products are marketed through direct marketing (showroom) and dealers are not involved in

the marketing process so far.

• The activities carried out by each and every department of the organization is systematic.

General Findings:

• Foreign companies can invest up to 100% in most of the manufacturing industries in India, including

Automation

• With the vast array of modular option available in market, the consumer isn’t really strapped for choice.

Page | 80
 Conclusion

“No man has the right to dictate what other men should perceive, create or produce, but all should

be encouraged to reveal themselves, their perceptions and emotions and builds confidence in their

creative spirit!”

This inspiring thought of Ansell Adams is well appreciated by new style marketing

organizations which understand that “boxes and lines” structures can’t drive value in fast moving

environments. No doubt, VNBalaji Pvt. Ltd. is one of them because they believe in teamwork.

Today, the need of the Indian consumer evolves beyond “roti, kapada aur makaan”. The game in

the new-breed industry is all about “home Pipe etc.”. To capture opportunities continually, the

company must have a continual flow of ideas. Transforming a pipeline full of ideas into a value –

generating portfolio of products and services is hard. Herein, lays the importance of co-ordination.

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CHAPTER – 6

Page | 82
 RECOMMENDATIONS AND SUGGESTIONS

This chapter lists the various recommendations and suggestions with respect to the findings and

in congruence with the objectives of the study.

Recommendations:

1.It’s overwhelming to find out that the organization works in a systematic manner. A

blend of co-ordination will definitely enhance the performance of the company.

2.Quality clubbed with reasonable pricing and quick delivery made the product of the

company stand apart. The marketing campaign should focus on this aspect and

made according to its line.

3.The strength of the company is its customized products. This very fact must be

highlighted in the marketing campaign.

4.As the products are reasonably priced, the ambit of the target consumers should be

stretched so that middle class consumers also fit into it.

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• In order to have a rapid market access, the company can include dealers, if not retailers at the

moment.

• The company should focus the marketing strategies on Home automation Products which are

growing in the current situation and more on the Surveillance arena as it’s demand is high in the

market rapidly.

• The company can introduce some reward schemes so that a person is benefited after the fulfillment

and over achievement of the target. This is predominantly done to motivate the sales force and

enhance their performance.

• Other than emphasis on design, developer and product quality, the company’s unique strength also

lies in its capability as a fully – integrated 8-1 Module manufacturer. This fact should be

highlighted during the advertisement campaigns.

• The need of the hour is aggressive marketing.

Page | 84
 Suggestions:

6. Everyone is aware of the growth in wealth and change in lifestyle of Vizag. So the marketing

campaign should be designed to woo the customers.

7. The company should explore all possible ways in order to aggressively sell its products. So, the

company can register itself in INDIAMART as it is India’s biggest online B2B plan with largest

virtual Automated directory.

8. The construction industry is in boom. In order to tap the potential market, the Company can advertise in a

magazine named ‘Builders Grid’. This will help in showcasing the products of the magazine. This can add

an extra spice to sales.

9. In today’s crowed market place in order to increase the size of the pie, the Company can adopt

innovative promotional strategies. One of them can be suggested as ‘Dream House’ road shows. It

will help in creating and reinforcing the Company’s identity in the minds of the consumer.

10. In order to be extra ordinary, the Company has to walk the extra mile. A method named

‘Experimental Marketing’ can be adopted by the Company wherein the prospective consumers can

be invited to visit the showroom and touch and feel the products.
Page86

Page | 85
9. Since the competition is intense, so there should be some value addition so as to make the Company

stand apart in the market. One such way is to improvise the customer service.

10. Consumer is the king in the market. This fact should be deeply rooted in the minds of the

employees. The Company can adopt some ways to listen to the customer’s feedback which should

be noted in writing so that it will help in continual improvement and make the company to be in the

right track always. Moreover, a sense of involvement will be felt by the customers whish can give

the company a cutting edge

APPENDICES AND ANNEXURES

A copy of the questionnaire, some eye sizzlers showcasing the products of the company and paper

insertion are enclosed herewith.

Page | 86
 BIBLIOGRAPHY

BOOKS

1. Research Methodology: C.K. Kothari

(Wishwa Prakashan Darayaganj New Delhi 2nd Edition-2014)

2. Marketing Management: Philip Kotler

(Prentice- hall of India Pvt. Ltd. New Delhi-110001 10 th Edition -2012)

3. WEBSITE :-

 http:// vnbalajipipes.com

www.indiamart.com

www.google.com

Page | 87
 QUESTIONNAIRE

Title of the Project - “Promotional Strategy Adopted as Prescribed & Ported by VNBalaji

India Pvt. Ltd.”.

Name :…………………………..

Age :…………………………….

Gender :…………………………

1) Gender of the marketing executives.

…………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………

……………………………………………………………………………………………………...………….

2) The pricing of products

…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………

3) The competitor’s strength

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

Page | 88
4) The quality of the products of VN Balaji Pvt. Ltd. With respect to other competitors

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

5) The merits of the products of VN Balaji Pvt. Ltd. that differentiates it from others

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

6) The promotion of the products of VN Balaji Pvt. Ltd.

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

7) The discount if given on repeat purchase

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

Page | 89
8) The percentage of discounts given on repeat purchase
…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

9) The way of marketing of the products

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

10) The target consumers

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

…………………………………………………………………………………………………………

Thank You…………………

Page | 90