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Project report on navjivan automobiles (hero motocorp)

This report consists all the details related to all the functions of Management of NAVJIVAN AUTOMOBILES i.e. Marketing, Production, Finance and Human Resource

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Project report on navjivan automobiles (hero motocorp)

  1. 1. Industry Profile 1
  2. 2. 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 2
  3. 3. 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 multiutility 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. 3
  4. 4. Company Profile 4
  5. 5. 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 twowheelers, 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. 5
  6. 6. 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 timeframe. - 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 6
  7. 7. 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. 7
  8. 8. 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 :  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 8
  9. 9.  Bankers : HDFC Bank  Competitors : Dream Honda Shivani Motors Dhruv Automobiles Ganga automobiles 9
  10. 10. Location chart: 10
  11. 11. Human Resource Department 11
  12. 12. Introduction Human resource management (HRM an organization's workforce, or human or simply HR) resources. It is the management of 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. 12
  13. 13. 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 inhouse 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, 13
  14. 14. 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. 14
  15. 15. 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. 15
  16. 16. 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. 16
  17. 17. 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 17
  18. 18. Finance Department 18
  19. 19. 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. 19
  20. 20. 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 Sources of Funds Capital Reserves and Surplus Deposit Profit Loan Funds Bank Loan Current Liabilities accounts payable Bank overdraft Total Application of Funds Fixed assets: Machinery Land Furniture and fixtures Other Fixed Assets Current assets: Cash Accounts Receivable Closing Stock TOTAL 2010-11 2011-12 36077000 1300000 1000000 11825000 36077000 1500000 1000000 20891850 5000000 4600000 200000 4500000 59902000 210000 4100000 68378850 2410000 11500000 3200000 4715000 2200000 11900000 3600000 2641850 500000 1500000 30000000 59902000 560000 1400000 40000000 68378850 20
  21. 21. 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: Gross Profit Ratio 19.50% 19.00% 19.19% 18.50% 18.00% 17.50% 17.48% 17.00% 16.50% 1 2010-11 2 2011-12 21
  22. 22. 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: Net Profit Ratio 2.50% 2.26% 2.00% 1.50% 1.43% 1.00% 0.50% 0.00% 1 2010-11 2 2011-12 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. 22
  23. 23. Operating Profit Ratio: Operating Profit Ratio 16.50% 16.00% 16.08% 15.50% 15.00% 14.50% 14.38% 14.00% 13.50% 1 2010-11 2 2011-12 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: Operating Ratio 86.00% 85.50% 85.62% 85.00% 84.50% 84.00% 83.92% 83.50% 83.00% 1 2010-11 2 2011-12 23
  24. 24. 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: Current Ratio 12 10 9.73 8 6 6.28 4 2 0 1 2010-11 2 2011-12 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. 24
  25. 25. Quick Ratio: Quick Ratio 10.5 10.35 10 9.5 9.37 9 8.5 1 2010-11 2 2011-12 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: Return on Assets 0.025 0.02 0.022 0.015 0.01 0.0143 0.005 0 1 2010-11 2 2011-12 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. 25
  26. 26. Proprietary Ratio: Proprietory Ratio 0.0222 0.022 0.0218 0.0216 0.0214 0.0212 0.021 0.0208 0.0206 0.0204 0.022 0.021 1 2010-11 2 2011-12 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: Stock Turnover Ratio 26.5 26 25.5 25 24.5 24 23.5 23 26 24 2010-11 1 2011-12 2 26
  27. 27. 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: Fixed Assets Turnover Ratio 36 35 34 33 32 31 30 29 28 27 26 34.96 29.64 1 2010-11 2 2011-12 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. 27
  28. 28. Comparative Balance Sheet: Particulars Sources of Funds Capital Reserves and Surplus Deposit Profit Loan Funds Bank Loan Current Liabilities Accounts payable Bank overdraft Total Application of Funds Fixed assets: Machinery Land Furniture and Fixture Other Fixed Assets Current assets: Cash Accounts Receivable Closing Stock TOTAL 2010-11 2011-12 Percentage increase Difference and decrease 36077000 1300000 1000000 11825000 36077000 1500000 1000000 20891850 0 200000 0 9066850 0 15.38 0 76.67 5000000 4600000 -400000 (8.00) 200000 4500000 59902000 210000 4100000 68378850 10000 -400000 8476850 (5.00) (8.88) 14.15 2410000 15507000 4200000 5715000 2200000 15900000 3670000 4641850 -210000 393000 -530000 -1073150 (8.71) 2.53 (12.61) (18.77) 500000 1570000 30000000 59902000 560000 1407000 40000000 68378850 60000 -163000 10000000 8476850 12.00 (10.38) 33.33 14.15 28
  29. 29. 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. 29
  30. 30. 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. 30
  31. 31. 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: Profit and Loss Account Income Sales Other Income Closing stock TOTAL 2010-11 825000000 2000000 30000000 857000000 2011-12 923400000 3250000 32000000 958650000 Expenditure Opening Stock Purchase Transport Expense Incentives Electricity Stationery Expenses Salary Interest Income Tax Tax Net Profit TOTAL 22500000 680000000 825000 8250000 8250000 16500000 24750000 2500000 81600000 11825000 857000000 30000000 739075000 923400 9234000 9234000 18468000 32319000 2425000 96079750 20891850 958650000 31
  32. 32. Balance Sheet Particular Sources of Funds Capital Reserves and Surplus Deposit Profit Loan Funds Bank Loan Current Liabilities accounts payable Bank overdraft Total 2010-11 36077000 1300000 1000000 11825000 36077000 1500000 1000000 20891850 5000000 4600000 200000 4500000 59902000 210000 4100000 68378850 2410000 11500000 3200000 4715000 2200000 11900000 3600000 2641850 500000 1500000 30000000 59902000 Application of Funds Fixed assets: Machinery Land Furniture and fixtures Other Fixed Assets Current assets: Cash Accounts Receivable Closing Stock TOTAL 2011-12 560000 1400000 40000000 68378850 Sources of Finance: Sources of finance can be classified into two: - Internal Sources - External Sources 32
  33. 33. But, Navjivan automobiles prefer only internal sources of finance, which includes the retained earnings, debt collection, owner’s capital, etc. 33
  34. 34. Production Department 34
  35. 35. Organization structure: Below is the organizational structure of Navjivan automobiles. Top management (Rahul Gajjar) General manager (Rohit sharma) Sales manager Account manager (Chintan Kapadia) Workshop manager (Amar singh) Sales persons Assistant account person (Hasmukh choudhary) Formens and workers 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 35
  36. 36. 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. 36
  37. 37. 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. 37
  38. 38.  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. 38
  39. 39. Plant Layout: 39
  40. 40. 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. 40
  41. 41. Marketing Department 41
  42. 42. 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: Top Management General Manager Sales Manager Sales Executives Billing Department Insurance Department 42
  43. 43. 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. 43
  44. 44. 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. Two wheeler Product line: (length and width): • Passion xpro • Ignitor • Maestro • Impules • HF Dawn • HF Deluxe • Pleasure • Splendor plus • Splendor NXG • Passion pro • Super splendor • Glamour • Splendor pro • Glamour PGM Fi • Achiever • Xtreme • Hunk • Karizma • Karizma ZMR 44
  45. 45. Product depth: Passion •Xpro •Pro Splendor •Plus •NXG •Super •Pro Glamour •Glamour •PGM Fi Karizma •Karizma •ZMR 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. 45
  46. 46. 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 46
  47. 47. Different price of the product: NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 MODELS OF BIKE HF Dawn std HF Deluxe spoke HF Deluxe cast HF Deluxe spoke ss HF Deluxe cast ss Pleasure-new Maestro Splendor plus spoke Splendor plus cast Splendor pro spoke Splendor pro cast Splendor pro spoke (ss) Splendor pro cast (ss) Splendor pro ltd edition Splendor NXG cast Splendor NXG spoke ss Splendor NXG cast ss Passion pro spoke Passion pro cast Passion pro spoke ss Passion pro cast ss Passion pro disc ss Passion x-pro spoke Passion x-pro cast Passion x-pro spoke ss Passion x-pro cast ss Passion x-pro disc ss Super splendor cast ss Glamour drum ss new Glamour cast dics ss Glamour fi dics ss(new) Ignitor drum self Ignitor disc self Achiever disc self Hunk cast fr disc ss Hunk cast fr & rr disc ss Xtreme fr disc ss Xtreme fr & rr disc ss Impulse disc self spoke Karizma- new Karizma- ZMR(KAZ) 47 PRICE IN RS. (on road) 43630 46320 48290 48960 49970 50080 56230 50810 51930 51820 52940 54060 55180 56310 51370 52720 53840 53170 54290 55410 56530 58770 54230 55910 57030 58150 60400 59110 61770 64020 72010 65890 68140 68140 76770 80140 78070 81430 80810 91640 114310
  48. 48. Place Level: HERO MOTOCORP NAVJIVN HERO CUSTOMER 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 48
  49. 49. 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 49
  50. 50. 3.Uniforms: For Males Technician Tshirt & Trousers Sales T-shirt & Jeans Front line supervisor Shirt & Trousers For Females: Sales saree Sales salwar suit 50 Works manager jacket
  51. 51. 4.Sign boards 5.Logo 6.Brochures 7.Building 8.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. 51
  52. 52. Findings 52
  53. 53. 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. 53
  54. 54.  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. 54
  55. 55. Conclusion 55
  56. 56. 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. 56
  57. 57. Suggestions 57
  58. 58. 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. 58
  59. 59. Bibliography 59
  60. 60.  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:  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) 60
  61. 61. Annexure 61
  62. 62. Profit and Loss Account Income Sales Other Income Closing stock TOTAL 2010-11 825000000 2000000 30000000 857000000 2011-12 923400000 3250000 32000000 958650000 Expenditure Opening Stock Purchase Transport Expense Incentives Electricity Stationery Expenses Salary Interest Income Tax Tax Net Profit TOTAL 22500000 680000000 825000 8250000 8250000 16500000 24750000 2500000 81600000 11825000 857000000 30000000 739075000 923400 9234000 9234000 18468000 32319000 2425000 96079750 20891850 958650000 62
  63. 63. Balance Sheet Particular Sources of Funds Capital Reserves and Surplus Deposit Profit Loan Funds Bank Loan Current Liabilities accounts payable Bank overdraft Total Application of Funds Fixed assets: Machinery Land Furniture and fixtures Other Fixed Assets Current assets: Cash Accounts Receivable Closing Stock TOTAL 2010-11 2011-12 36077000 1300000 1000000 11825000 36077000 1500000 1000000 20891850 5000000 4600000 200000 4500000 59902000 210000 4100000 68378850 2410000 11500000 3200000 4715000 2200000 11900000 3600000 2641850 500000 1500000 30000000 59902000 560000 1400000 40000000 68378850 63