PART 1

COMPANY OVERVIEW

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1.1 INTRODUCTION OF HPMC

Himachal Pradesh, which is endowed with enormous natural beauty and resources has a total
geographical area of 55,675 kms. It is rich in natural resources and has varied agro-climatic
conditions suitable for the development of horticulture. The State has a vast potential of
horticulture and has taken a leap forward to produce different varieties of fruits from tropical to
temperate, which has made it the fruit bowl of the country. It has also helped in the economic up
lift ment of rural population and has also generated employment. The total area under fruit in HP
is about 2.07 Lac hectares with a production of about 5.00 Lac MTs of all kinds of fruits. Apple
is the major fruit accounting for more than 40% of total area under fruits and about 88% of total
fruit production.

The agro-climatic conditions of Himachal Pradesh are extremely suitable for growing different
varieties of Fruits. The state is successfully growing fruits such as apple, pear, peach plum,
almond, walnut, citrus, mango, raisin grapes etc. There has been tremendous progress in fruit
growing during the last three decades. Commercially, apple is the most important of all the fresh
fruits grown. It has a rich collection of as many as 450 cultivars of apples collected from all over
the World. The main varieties of commercial importance grown predominantly, however, are
Royal Delicious, Rich-A-Red, Red Delicious and Golden Delicious. Himachal Pradesh currently
accounts for over 4lakh tones of apple production annually.
It has been recognized as the Apple State of India for being adjudged as the best producer of
Quality Apples. Here farmers are encouraged to grow the world's finest varieties of apple. The
State Department of Horticulture helps them by making available the most modern orchard
technology and expertise and the HPMC looks after the marketing and processing requirements
of it.
Himachal Pradesh Horticultural Produce Marketing and Processing Corporation Ltd.
popularly known as HPMC, was established in the year 1974 as State Public Undertaking with
the objective of marketing of fresh fruits and processing of all types of surplus fruits. It has
developed the most modern system of marketing in the country. The unique characteristics of this
organization are that it provides all the services to the fruit growers, which are required for
marketing of fruits. The Corporation has set up two modern Fruit Processing Plants and has
acquired their on lease basis from the HIMPROCESS and has a vast range of processed products.

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Between the years 1974-82, the Corporation engaged itself in the establishment of pre and post
harvest activities, comprising of a net work of mechanically operated packing houses, cold
storages, transshipment centers and fruit processing plants, besides a net-work of sales offices in
the terminal markets Railways Stations and Airports through out the Country. The entire
infrastructure of grading/packing houses, pre-cooling and cold storages has been established in
rural areas for providing pre and post harvest facilities to the farmers at their door step. To
day HPMC has emerged as one of the leading and largest organizations for the post-harvest
handling of horticultural produce in India. Under the auspices of this organization in the past few
years, the entire fruit industry has started experiencing a radical change from conventional to
modern marketing system HPMC has contributed substantially to mechanized grading and
scientific packing of fruits, substitution of conventional wooden cases by tray-packed telescopic
cartons distribution network, introduction of juice dispensing machines, making thereby the
health giving pure apple juice a common man's drink, manufacture of apple and pear juice
concentrate and development of a sound base for the export of apple and other fruit products. It
is a service-oriented organization with a commitment to ensure remunerative returns to the fruit
growers and nutritive quality products at a reasonable price to the consumers.

MISSION OF HPMC

To develop the infrastructure in the field of marketing, processing, transshipment centers

and cold storage of fruits.
To assist in the packing and grading, transportation, storage, processing and marketing of
apples, products and other fruits and their related products.
To process the unmarketable surplus of the horticulture of the state and to market the
processed product.
To carry out the business of standardization, grading, sorting, packing, investigation and
market research, and rendering assistance and services of all kinds to the fruit growers of
the state.

VISION OF HPMC

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Term vision here means a place in which an organization wants to land in the near future. Good
Visions are inspiring and Exhilarating, Comparative, Unique and Original and leads to the
creation of a common identity.

Creation of common identity.

Setting up of a Tetra Pack Filling Station.
Automatic Juice Vending Machines.
Increase production would lower the cost per unit.
The TBA -19 machine is equipped with the facility of sealed straw attachment to the
pack.
To increase export to neighboring countries of Nepal, Bhutan, Sri Lanka, Middle east.
Take initiative to buy premium quality apples directly from farmers and export it to south
East Asian countries and Middle East countries during the off season.
HPMC is in touch with buyers of Apple Juice concentrate in USA, Germany, and Ghana.
Intend to explore other markets of Holland, Israel, and South Africa.

Market Intervention Scheme: (MIS)

The Government of Himachal Pradesh has introduced the policy of Market Intervention Scheme
(MIS) for the procurement of Mango, Apple and Citrus Fruits in the State. In order to implement
the Market Intervention Scheme of the State Government, the HPMC, being the premier fruit
marketing agency, procures the unmarketable fruits which are processed under most hygienic
conditions in its Processing Plants. The efforts made by the Corporation have resulted in
stabilizing the prices of the fruits in the market. Apart from fruits procured under MIS, HPMC
also procures other fruits like Peach, Pear, Plum, Litchi, Almonds, strawberry, kiwi etc. grown in
the State, for marketing and processing to increase the capacity utilisation of the Plants and to
assist the farmers of the State in getting remunerative returns for their produce. Procurement
prices of the fruits under the Market Intervention Scheme for last five years are as
under:

(Rate: Rs./Kg.)

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Year Mango Apple Kinnow/Orange Galgal

Seedless Grafted B Grade C Grade

2001-2002 3.08 3.75 3.75 4.35 3.75 2.60

2002-2003 3.33 4.00 4.00 4.60 4.00 2.85

2003-2004 3.33 4.00 4.00 4.60 4.00 2.85

2004-2005 3.58 4.25 4.25 4.85 4.25 3.10

2004-2005 3.58 4.25 4.25 4.85 4.25 3.10

2005-2006 3.58 4.25 4.25 4.85 4.25 3.15

2007-2008 4.08 4.75 4.75 5.35 4.75 3.65

2008-2009 4.58 5.25 5.25 5.85 5.25 4.15

2009-2010 4.50 5.25 5.25 5.85 5.25 4.15

2010-2011 4.50 5.25 5.25 5.85 5.25 4.15

2011-2012 4.50 5.25 5.25 5.85 5.25 4.15

2012-2013 5.00 6.00 6.00 6.00 5.50 4.50

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2013-2014 5.50 6.50 6.50 5.50 6.00 5.00

2014-2015 5.50 6.50 6.75 5.50 6.00 5.00

Source: http://www.hpmc.gov.in/profile.htm

1.2 Export of Fruit and Fruit Products

Among all fruits, Apple being the main crop of the State occupies place of pride in its economy.
The major commercial varieties grown in the State are; Royal Delicious, Red Delicious, Rich-A-
Red Delicious and Golden Delicious. At present, Himachal Pradesh produces over 4.00 lakh
tones of Apples annually which is cultivated at the altitude ranging between 6,000 to 10,000 ft.
above sea level and is free from pollution. The quality of Himachal Apple meets the entire export
standards. In the past HPMC has exported quality apples to Iran, UAE, Sri Lanka, Singapore and
U.K. Fresh apples are available from August to November on firm demand.

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Grade Standards

Only two Quality Grade Apples i.e. EXTRA FANCY and FANCY CLASS 1 are offered for
export. The broad parameters of the Quality are that the fruit must be sound, clean, fully
developed, colored, juicy and full of flavor and freshness.

Tray Packed Cartons

Tray Pack Cartons have specially been developed for export of Himachal Apples. It consists of
an inner fiber board carton, a series of molded trays and an outer telescopic lid which fits right
down over the sides and end of the inner carton. Apples in Tray Pack cartons are wrapped as per
requirement of the buyer. The net weight of apples in the carton is not less than 38 lbs (17 kg.)
but in practice it is usually over 40 lbs (18 kg) depending on the
variety.

Future strategy for export by HPMC:

1. With the up gradation of the packing and grading houses

with the latest technology from Europe, the farmer of the state
would be attracted to the upgraded system. The corporation
would take the initiative to invite the bulk buyers and exporter to buy apples directly from the
farmers at these units and supervise the quality standards to their satisfaction and export apples
to south east Asian countries .since the fruit would be graded in a scientific manner its size, color
and weight we expect to get a good response from the export front.

2. As two of our cold stores in the fruit growing areas are being upgraded to CA stores , hpmc
would take the initiative to buy premium quality apples directly from the farmers and export it to
south east Asian countries and middle east counties during the off season to fetch better returns

3. HPMC in touch with buyers of apple juice concentrate in USA, Germany and Ghana .we
intend to explore other market of Holland, Israel and South Africa.

4. A case of upgrading the tetra pak line has been sent to APEDA for sanction. With the
installation of the improved line our capacities and capability for exporting juices in tetra pak
would be greatly enhance.

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5. The corporation would be more viable for future. Further it is added that at present only a
small quantity of apple procured under the governments Market intervention scheme (MIS) is for
giving it value addition and a major part is marketed and spoiled. If this type of plant is setup it
would cost RS 23 cr. and the assistance can be sought from APEDA as 100% grant.

Constraints in the export of apple juice concentrate:

1. The plant and machinery was installed in the year 1982 and has more than out lived its life.

2. The production capacity is limited to only 13000 MT. of apple from which only 1000 MT.

of apple juice concentrate is manufactured.

3. Increased production would lower the cost per unit and make the product competitive both in
domestic and international market.

4. The price difference is due to the technological advantage as a latest machines produce one kg
of concentrate from 7 kg of apple as compared to our production from 13kgs of apple.

5. There is lack of Government support for the export of the product. The high cost of processing
grade fruit available makes the product all more competitive. The government need to subsidies
the cost of fruit and provides support for upgrading its infrastructure of plant and machinery.

6. The corporation is facing stiff competition from the import of Chinese apple juice concentrate
which is available in the country at a rate which even below cost of production.

7. To protect the domestic industry and to compete in the foreign market the government would
have to consider to provide grant for improving the technology and restrict the imports by raising
duties.

1.3 BOARD OF DIRECTORS

1. Mrs. Vidya Stokes, Chairman

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 2. Mr. Prakash Thakur, Vice Chairman

3. Mr.J.C.Sharma, IAS, Managing Director

1.4 ORGANISATION

HPMC has established two Fruit Processing Plants with a combined capacity to process about
20,000 MT of fruit every year and has acquired a third on lease hold basis . These plants are
located at Jarol (Sundernagar) in Mandi District and Parwanu in Solan District. The Parwanu
Plant has all the latest systems like aseptic bulk packaging, tetrapak filling, spiraflow equipment,
hi-tech continuous pulper line and pomace drying unit. HPMC has also taken over FP Jabli on
lease basis from the HIMPROCESS during the year 2003 and this has helped in increased
production of juices, drinks and other fruit based products.

The HPMC has set up a chain of Packing Houses, at Gumma, Rohru, Jarol-Tikkar, Oddi,
Bhunter and Patlikuhl, Grading Houses at Rajgarh, Chindi & Rekong Peo. CA Store in
producing areas are at (Gumma, Rohru, Jarol-Tikkar, Oddi and Patlikuhl). Beside, these Cold
Storages in producing areas, HPMC has established Cold Storages in terminal markets at
Parwanu, Delhi, Mumbai, and Chennai. It has Transhipment Centres, Canning Units and Sales
Offices in all the principal fruit markets of the country. HPMC is also making Himachal Apples
available to world community through exports.

Supply from Inputs: For providing quality farm inputs at reasonable to the farmers, HPMC has
been procuring organic manure, plant martial, fungicides, insecticides, pesticides & horticulture
spray at directly from reputed manufacturer. The material is made available to the farmers
through the grading and packing houses located in the fruit growing area of the State.

1.5 PRODUCTS

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The HPMC is producing variety of processed products. It is the main producer of Apple Juice
Concentrate in the country. Besides, Apple Juice Concentrate the Corporation is producing
concentrate of Orange, Pear, Plum, Strawberry besides pulps of all the above fruits. It is also
producing various squashes, jams, canned products, apple cider, cider vinegar, Apple and Plum
wine, juices in tetrapacks, natural and blended juices, baby corn, mushroom in brine and varieties
of pickles.

BRIX AT ACIDITYAS MALIC COLOUR CLARITY

PRODUCTS
20o C ACID (W/W) 440NM 620NM

APPLE 720.5 1.6% - 2.5% 45-50%T 95%T

PEACH 720.5 3.0% - 3.5% 25%T 90%T

PEARS 720.5 1.5% - 2.28% 25%T 85%T

APRICOT 720.5 8.5% - 10% 25%T 92%T

PLUM 720.5 7.5% - 9% 1%T 55%T

B. Specifications of Pulps

ACIDITY (W/W)
PRODUCTS BRIX AT 20o C
AS MALIC ACID

APPLE 90.5 0.3% - 0.4%

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 PEACH 80.5 0.4% - 0.5%

PEARS 90.5 0.3% - 0.32%

APRICOT 80.5 2.0% - 2.3%

PLUM 90.5 1.3% - 1.5%

No added preservative, no Pulp floating, color natural, flavor characteristic of the fruit. All
concentrates and Pulps are available in aseptic and non-aseptic bags.

Packing and Storage

HOT HM HDPE Plastic Barrels or

Packing
aseptically packed in MS Drums

The products should be stored at a

temperature of 2-40 C storage as
Storage
excessive heat can result in
deterioration of color and flavor.

Source: http://www.hpmc.gov.in/products2.htm

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Product Range

7-in-1 900 gms Apple Juice Mushroom in Brine 400 gms.

Pickles Mango/Mixed Veg. 1 kg Jar.
Concentrate

7-in-1 500 gms Apple Juice Pickles Mango/Mixed Veg. 1 kg.

Concentrate
Lemon Pickle in Poly Pack 1 kg.

200ml. Fruit Drink s. (Litchi,

Lemon Pickle in Jar 1 kg.
Pineapple, Mango, Orange, Guava,
Kiwi, Strawberry)
Mixed Pickle 5 kg.

Squashes (Lemon, Litchi, Orange,

Mushroom Pickle 500 gms Plastic Jar
strawberry, Ginger)

Mixed fruit Jam Bulk 6 kg. Packing

Jams 1050 gms

Apple Tapple in Tetra pak -200 ml (HACCP

Jams 500 gms
Certified)

Peach / Pear Halves in syrup

Ditto Mango Drink in Tetra pak - 200 ml

Apple Juice 800 ml.

Ditto Apple, apple Drink in Tetra pak -200ml

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 Apple Juice 600 ml.

Ditto Litchi Drink in Tetra pak - 200ml

Apple and Plum Wine

Ditto Kinnow/Orange in Tetra pak -200ml.

Apple Cider

Ditto Kiwi in Tetra pak - 200ml

Cider Vinegar

Ditto Strawberry in Tetra pak -200ml

Litchi Nectar 600 ml

Natural Apple Juice in Tetra pak-200ml

Mango Nectar 600 ml

Apple Tea in Tetra pak-200ml

Strawberry Nectar 600 ml

Orange Concentrate 1 kg. Bottle

Orange Nectar 600 ml

Mango Concentrate 1 kg. Bottle

Tomato ketchup 500 gms

Apple Conc. in Plastic Cans 200 gms

Kiwi Apple Juice

Source: http://www.hpmc.gov.in/products2.htm

The varied tastes of goodness

The Seven-fold joy of Himachal

The pride of Himachal's products is 7-in-1 Apple Juice Concentrate. Ten kilogram of Delicious
apples go into making one kilo of concentrate. Just mix six parts of water to one part of
concentrate for a tingling beverage that refreshes any time of the day, in any season. Pure, fresh
and free from any additive, the concentrate can be used in one of the seven ways - apple tea,

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apple juice, apple milk shake, bread spread, ice-cream, cake and pastry. Available in 500gm and
one kg bottles.
Also available in bulk packs for bottles and direct dispensing.

Juice of orchard-fresh apples

Apple-Tapple
Clarified and sparkling apple juice made from juice concentrate. containing all the vital nutrients,
preserved in a delightfully healthy taste. Available in 200 ml and 600 ml bottles.
Juices and Drinks in Tetra pak
100% pure apple juice is available under the brand name Apple-Tapple in Tetra pak Delicious
Mango, Litchi, Strawberry, Orange Kinnow & Apple drinks are also available under "Ditto"
brand name.
Squashes and appetizers
A range of the finest squashes in the country is extracted from delicious, juicy, handpicked fruit,
Ginger has been cultivated in Himachal for ages and Ginger Appetizer is a specialty
of HPMC. .These are available in 700ml bottles.
Canned delights for all seasons

Peach and Pear Halves and Tidbits, Fruit Cocktail, Canned Cherries, Pineapple rings preserved in
syrup for an anytime, anywhere snack are available in 850 gm cans. White button Mushrooms
preserved in brine are Once-acquired never-forgotten table delicacy, passed on from generation to
generation. Available in 425 gm cans.

Assorted jams - Preserved for pleasure

"More fruits than any other Jam"

Orchard-fresh fruits ripened by the sun and caressed by the Himalayan breeze, cooked in steam
with pure cane sugar. Jams that go to breakfast tables around the world. Available in 500 gm jars
and 1050 gm cans.

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Nature's gift Man's appreciation

The excellence of Himachal's products and the appreciation of HPMC's efforts are reflected in
various awards won by HPMC International Asia Award for 1983 and 1984 at Singapore; First
prize in all India Fruit Show, 1975 and 1981, Udyog Rattan Award in year 2000; Industries
Award for operational Excellence for the year 2002; Udyog Rattan Award, 1985 instituted by the
Institute of Economic Studies, New Delhi; New Millennium Award ; "15th Golden Award for
quality during 2001 in Paris (FRA) and was selected for International star award for quality in
the Gold Category during 27th International Star Award Convention, Geneva 2002..

Corporate Gift Hamper/Family Pack

The HPMC has developed new attractively designed Gift Hampers/Family Packs in two sizes
containing 5 and 3.5 kg of Processed Food Products. The Packs are environment-friendly and
easy to carry.

Processing of Fruits and other facilities:

The HPMC have two Fruit Processing Plants having German technology. Beside this one plant
has been taken on lease basis at jabli, where fruit is processed on international standards.

(A) Fruit Processing Plant having installed apple crushing capacity of 18000 MTs have been
installed Parwanu district Solan Himachal Pradesh.

15
 (B) Another Fruit processing plant having installed crushing capacity of 2000 MTs has been
installed at Jarol in district Mandi Himachal Pradesh.

(C) Fruit processing plant at jabli in district Solan Himachal Pradesh having crushing capacity of
1000 MTs has been taken on lease hold bases from him process to meet the additional processing
requirement of the corporation.

(D) Tetra pak juice feeling system (TBA-19) slim pack machine having estimated feeling
capacity of about 12 lacks tetra pak juice trays (1*27) annually has been commissioned at
Parwanu district Solan Himachal Pradesh and the product is marketed through reputed
institutions, HPMC sales network and retail market in the country. Presently four popular flavors
like Apple, Mango, Litchi and orange juices\ drinks are available in tetra pak packaging.

(E) HPMC has bulk packaging facility at Parwanu district Solan Himachal Pradesh.

(F) High tech continuous pulp

FRUIT PROCESSING PLANT PARWANU :

Parwanu is a town situated at the border of Himachal Pradesh and Haryana. Being and industrial
town it is famous for being a hug of business between the northern region of India and the
Centre.

The Fruit Processing plant at Parwanu is a bigger and better FPP than the one at Jarol . The
funding for this plant at Parwanu was a gift from world bank. The equipment here is new with
the facilities to make tetra packs. Within a kilometer of the FPP .HPMC has its own cold store
the chambers of which it rents out to earn revenue.

This plant is HACCP certified. The audit for the certification is done every year(scheduled to be
in JUNE , 2016).The organizational structure of the FPP is given below

FPP PARWANU

Addl. General Manager

Personnel Production 16 Accounts Maintenance

Department
Sr. Assistant Asst.Operators
Technical
Tech.officer
officer
Foreman Accountants
Asst. Plant engineer
Accounts Ref. Foreman
Engineer
Jr. Engineer
Clerk
Jr. Assistant
officers
Working of the Plant:

The plant operates like a proper production plant where the work is done by machines. The first
step is getting the apple and then cleaning and sorting them. This process is done an underground
room manually. After the sorting the apples are brought up into the main facility by conveyers
and then loaded into a huge crushing tank.

All the apples from one batch are put into the crusher and then crushed all at once. The pulp from
the container is taken into another tank where the juice is separated from the pulp. This is done
by nylon tubes. The waste is then discarded of convertor to manure outside the plant.

Next the juices aroma has to be processed. This is done by distillation and no additional
chemical is added in. The juice now has to be turned into concentrate which is later used for
either selling direct or turning into a ready to drink beverages.

After the process the juice may be filled in containers and ready to be shipped to the various
branches of HPMC.

The tetra pack filling machine is a computerized machine that does all the work at once. The
packing is fed into the machine as a long roll of paper which the machine folds to form a
rectangular shape. The packs are then cut from the bottom and glued together to form a container
and the juice is filled in. after the juice has been filled in, the container is folded from the top and
glued together.

The next conveyer sends it under a camera and printer the prints the manufacturing date and
price on the top. Next the straw is attached to the side of the pack and then the juice boxes are
filled into cardboard boxed ready to be shipped.

17
1.6 Marketing Network

18
 2.1
A well established marketing network has been created throughout the country.
Regional Office, Delhi - Bhopal, Jaipur, Lucknow.
Regional Office, Azadpur Delhi (Subzi Mandi)
Regional Office, Mumbai - Ahemdabad
Regional Office, Chennai - Hyderabad, Bangalore.
Regional Office, Kolkata.
Regional Office, Shimla -Shimla, Gumma, Chopal, Rohru, Rajgarh, Rampur, Jarol
Tikkar, Oddi,Kinnaur, Dalash, Gopalpur and Sarahan.
Regional Office, Kullu - Patlikuhl, Bhunter, Chindi, Chailchowk
Regional Office, Kangra - Kandrori, Chamba

SALES PROMOTION OF HPMC PRODUCTS:

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At HPMC, I was assigned with the topic as Sales promotion of HPMC products for my project
work. I joined the company as a management trainee. The selection of the topic was to know
how the company generates business through them.

REASON FOR SELECTION OF THIS TOPIC:

The Promotion is something that notifies peoples about a product. Without Promotion we cannot
imagine the long future of a product. It helps people to understand about a product that what is
this Product for? What is the use of the Product? How is it different from the others product? It
is part of Marketing Strategies itself.
A positive Product image may make up for an inferior image of the origin country and raise the
possibility of the product being selected. The idea has been to move beyond commodities to
branded products to reduce the primary effect of price upon the purchase decision. Consumers
associate the value of the product with the positive Promotion.

PROMOTIONS

Promotion is the method you use to spread the word about your product or service to customers,
Stakeholders and the broader public.
Once you have identified your target, youll have a good idea of the best way to reach them, but
most businesses use a mix of advertisement, personal selling, referrals, sales promotion and
public relations to promote their products or services.

TYPES OF PROMOTIONS

20
 Ad
ve
D ir rti Publ
ect s in ic
M a g R e la
ils t io n
Pe rs S a l es
onal s
s e lli P ro
ng m ot
io n s

A) Advertising:-

21
Any non personal paid from of communication using any form of mass media.

B) Public Relations:-
Involves developing positive relationship with the organization media public. The art of good
public relations is not only to obtain favorable publicity within the media, but it is also involves
being able to handle successfully negative attention.

C) Sales promotion:-
Commonly used to obtain an increase in sales short term.Could involve using money off coupons
or special offers.

D) Personal selling:-
Selling a product service one to one is the sending of publicity material to a named person within
an organization.

E) Direct Mail:-
Direct mail allows an organization to use their resources more effectively by allowing them to
send publicity material to a name person with in their target segment. By personalizing
advertising. The response rate increase thus increasing the chance of improving sales. Listed
below are links to organization whose business involves direct mails.

IMPORTANCE TO THE COMPANY:

The ultimate purpose of giving me this topic was to increase the promotion about the different
products of the HPMC, and to know about operational process. How these products can attract
them and how the company can generate maximum profit by convincing them through and to
better understand customer requirement and to understand operational methodology. What are
the problems faced by customer on daily basis. Different techniques to represent the products
to the customers. How to convince and convert a customer into a real customer.

2.2 SWOT ANALYSIS:

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SWOT analysis stands for strength, weaknesses, opportunities and threats. This analysis is one of
the best method to evaluate the situation of an organization, this analysis basically bifurcates the
situation (good& bad) into external and internal factor. SWOT make it easy to come a decision

SWOT FOR HPMC:

STRENGTH: WEAKNESSES:
1. Suitable agro climatic condition. 1. Lack of staff
2. Clean/ pollution free environment 2. Lack of funds to overcome losses
3 Well established marketing network 3. Drying old orchard.
4. Government undertaking organization 4. Poor rail and air connectivity

OPPORTUNITY:
1. Huge unexplored market in India.
2. New financial help by APEDA will help
in growth of company.
3. In the year 2016 company growth is 98
% so it will help to explore the business
of HPMC.
THREATS:
1. Cheaper Chinese apple juice
concentrate.
2. Danger of huge import from
neighboring countries due to MFN status.
3. Lack of government support

2.3 LEARNING FROM THE STUDY:

Sales promotion about the different products of the HPMC.

What are the problems faced by customer on daily basis.
How to communicate with the customers.
Different techniques of dealing with the customers.
I was able to apply my theoretical knowledge practically.
I learned how to work collectively and constructively in a team.

23
 I did a market survey which includes direct interaction with the customers and this helps
to know the Market potential and customer satisfaction level to great accuracy.
I have once again realized how inspired I am by marketing and how it is the right career
path for me to pursue.

24
 PART 2
PROJECT WORK

26
3.1 RESEARCH METHODOLOGY

INTRODUCTION AND MEANING

Research methodology is way to systematically solve the research problem. The research
methodology includes the various methods and techniques for conducting a research. D.Salinger
and M. Stephenson in the encyclopedia of social sciences define research as the manipulation o
things, concepts or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art

Research is a cruel investigation or inquiry especially through search for new facts in branch
of knowledge: market research specifies information. Required to address these issues: designs
the method for collecting information: manage and implements the data collecting process
analyses the results and communicates the finding and their implications.

RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT PROBLEM

DEFINATION:

To carry on the business of standardization, grading, sorting, packing, branding. Investigation,

market research, storing, warehousing, cold/storage, distributing, converting. maintaining and
rendering assistance and services of all and every kind of and any description including buying,
selling, exchanging, altering, improving, producing, manufacturing and dealing in horticultural,
produce, horticulture operation and horticultural inputs including fertilizers, manures, plant
protection materials, machinery and irrigation in furtherance of production. processing and
Marketing of apples, apple products and other fruit and vegetable products.

RESEARCH: - It means search for facts, answers to questions and solutions to problems.

RESEARCH DESIGN:

Research design constitutes the blue print for the collection, measurement and analysis of data.
The present study seeks to identify the perception of consumers on various Juice Shops and
HPMC outlets in Shimla. The research design is exploratory in nature. The research has been
conducted on users within Shimla. For the selection of the sample, convenient sampling method

28
was adopted and an attempt has been made to include all the age groups and gender within
different occupation.

Type of Research

The present study will adopt the exploratory approach wherein, there is a need to gather large
amount of information before making a conclusion.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.

COLLECTION OF DATA:

1: SECONDARY DATA: It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, news papers, magazines, management books,
preserved information in the companys database and website of the company.

2: PRIMARY DATA: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary
data was direct personal interview through a structured questionnaire.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics. Sampling Units: Different professionals, Students,
Owner of various juice shops, customers at juice shops, HPMC juice outlets .

1. Sample Technique: Random Sampling.

2. Research Instrument: Structured Questionnaire

3. Contact Method: Personal Interview.

SAMPLE SIZE:

30
My sample size for this project was 50 respondents. Since it was not possible to cover the whole
universe in the available time period, it was necessary for me to take a sample size of 50
respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary data
collection will base on personal interview. I have prepared the questionnaire according to the
necessity of the data to be collected.

3.2 OBJECTIVES OF THE STUDY

The objective behind the conducting project exercise was to get useful insight about the FMCG
sector. I have prepared this report with some specific objectives.

The primary objective of my study is to analyze the efficiency and effectiveness by the HPMC.

The objective of my study is as under:

PRIMARY OBJECTIVES:

1.To increase the sales promotion of HPMC products

2.To measure the awareness level of people regarding products offered by HPMC.

3.To study brand image of the HPMC

4.To increase the business of the HPMC

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4.1 DATA ANALYSIS AND INTERPRETATION

A questionnaire was used as the primary source of data collection and the detailed question wise
analysis of the data is given below:-

Q.1 Do you deal in HPMC products ?

Category No. of Respondents Percentage

YES 50 83
NO 10 17
Table No.4.1

34%

KCC BANK; 66%

Figure No.4.1

Interpretation: It has been inferred from the above chart that 83% respondents deals in HPMC products and
17% respondents deal with other products.

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Q.2 For how long are you dealing HPMC products ?

years No. of Respondents Percentage

0-1 14 28
1-2 12 24
2-3 18 36
3& above 6 12
Table No.4.2

40

35

30

25

20 Series1

15

10

0
0-1 1-2 2-3 3 & above

Figure No.4.2

Interpretation From above response it can be seen that.

1. 28% respondents were using the products for 0-1 year 3. 36% respondents using since 2-3

2. 24% respondents using 1-2 years 4. 12% using 3 and above years.

Q.3. Which products of HPMC do you deal in ?

36
 No. of Respondents Percentage
PRODUCTS
APPLE 20 40
PEACH 14 28
PEARS 8 16
APRICOT 4 8
PLUM 4 8
Table No.4.3

Percentage
40
35
30
25 Percentage
20
15
10
5
0
APPLE PEACH PEARS APRICOT PLUM

Figure No.4.3

Interpretation From above response it can be seen that:

From the survey we came to know that 40% people deals in apple products. About 28% people
deals in peach products, 16% people deals in pears product, 8% people deals in apricot products
and rest 8% deals in plum products.

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Q.4. Communication Channels used for promotion ?

categories No. of respondent Percentage

Advertisement 21 42
Hording 12 24
Bill board 10 20
Never used 7 14
Table No.4.4

Respondent

Advertisement
Hoarding
Bill board
Never

Figure No.4.4

Interpretation From above response it can be seen that

1. 42% respondents are used advertising strategy for promotion.

2. 24% respondents are used hording strategy for promotion.
3. 20% respondents are used bill board strategy for promotion.
4. 14% respondents are never used any strategy.

40
Q.5. Are you satisfied with the facilities provided by HPMC for growth ?

SATISFACTION LEVEL NO. OF RESPONDENTS PERCENTAGE

Highly satisfied 20 40
Satisfied 15 30
Neutral 10 20
Dissatisfied 05 10
Highly dissatisfied 0 0
Table No.4.5

40
35
30
25
20
15
NO. OF RESPONDENTS
10
PERCENTAGE
5
0

Figure No.4.5

Interpretation From above response it can be seen that.

1. 40% respondents is highly satisfied about facilities provided by HPMC.

2. 30% respondents is satisfied about facilities provided by HPMC.
3. 20% respondents is neutral about facilities provided by HPMC.
4. 10% respondents is dissatisfied about facilities provided by HPMC.

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Q.6. Do you get any reward for max. sales ?

Category No. of Respondents Percentage

Yes 32 64
No 18 36
Table No.4.6

36%

YES
NO

64%

Figure No.4.6

Interpretation From above response it can be seen that

1. 64% respondents says yes I got the max. sale reward.

2. 36% respondents are not got any reward of max. sale.

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Q.7. What type of reward you will get ?

Category No. of Respondents Percentage

Cash 15 48
Tour package 10 32
Gifts 7 20
Table No.4.7

No. of Respondents

Cash
Tour package
Gifts

Figure No.4.7

Interpretation From above response it can be seen that

1. 48% respondents are got cash reward.

2. 32% respondents are got tour package reward

3. 20% respondents are got rewards related with gifts.

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Q.8. What do you fell about credit period given my Hpmc ?

categories No. of respondent Percentage

Very good 45 90
Good 3 6
Satisfied 2 4
Poor 0 0
Cant say 0 0
Table No.4.8

Respondent

Very good
Good
Satisfied
Poor

Figure No.4.8

Interpretation From above response it can be seen that

Dealers are very happy with the credit policy of Hpmc which will help them because dealers get
time to pay there money and use there cash in hand .

Q.9. What products has got the max. sale for last 1 month ?

PRODUCTS No. of respondent Percentage

48
APPLE 30 60
PEACH 10 20
PEARS 05 10
APRICOT 03 06
PLUM 02 04
Table No.4.9

No. of respondent

APPLE
PEACH
PEARS
APRICOT
PLUM

Figure No.4.9

Interpretation From above response it can be seen that

1. Apple got the max.sale in the month.

Q.10. Are you satisfied with the promotional activities carried out by HPMC ?

SATISFACTION LEVEL NO. OF RESPONDENTS PERCENTAGE

Highly satisfied 20 40
Satisfied 15 30

50
Neutral 10 20
Dissatisfied 05 10
Highly dissatisfied 0 0
Table No.4.10

40
35
30
25
20
15
NO. OF RESPONDENTS
10 PERCENTAGE
5
0

Figure No.4.10

Interpretation From above response it can be seen that

1. 40% respondents are highly satisfied with the promotional activities of HPMC.
2. 30% respondents are satisfied with the promotional activities of HPMC.
3. 20% respondents are neutral with the promotional activities of HPMC.
4. 10% respondents are dissatisfied with the promotional activities of HPMC.

4.2 CONCLUSION AND RECOMMENDATIONS:

CONCLUSION:

HPMC, the FMCG arm of HPMC is expected to go on stream. The HPMC already has good
number of employees and is on the brim of increasing its customers through its attractive
schemes and offer.

52
The project opportunities provided was market segmentation and to know the perception
of prospective customers in potential geographical location and convincing them to attract more
customers so that new business opportunities can be explored.

Through this project, it Could be concluded that people are not much aware about the various
products of the HPMC and many of them not interested to purchase. Majority of people have
more faith in other products as compare to HPMC products. Professionals and businessman are
more attracted towards the products provided by the HPMC.

So, at last the conclusion is that there is tough competition ahead for the company from its
major competitors in the FMCG sector. Last but not the least I would like to thank HPMC
for giving me an opportunity to work in the field of Marketing and Operation. I hope the
company finds my analysis relevant.

RECOMMENDATION

1. HPMC will have to increase its promotional activities by advertisement, newspaper, e-

commerce.
2. HPMC have to adopt new technology machines which will decrease cost of production
and increase the production process.
3. HPMC will take initiative to setup a plant near the availability of apples so that cost of
logistics will we removed and wastage will be reduced.
4. The sales turnover will increase by 98% in 2016 so HPMC will have to take necessary
step to increase its market.
5. HPMC will also tie up with HPCA Dharamshala to sell its products during T20 matches ,
IPL , ODI series, Ranji trophies.

LIMITATIONS:

Every work has its own limitation. Limitations are extent to which the process should not
exceed. Limitations of this project are:

1. The project was constrained by time limit of 45 Days.

2. Mindset of people may very depending upon their age, gender, income etc.

54
3. Getting appointment from the concern person was very difficult.

4. People mind set about the survey was obstacles in acquiring complete Respondents were very
busy in their schedule. So it was very time consuming for information & positive interaction,
them to answer all the questions properly.

56
BIBLIOGRAPHY

Web References:
http:www.hpmc.gov.in/

http://www.hpmc.nic.in/

http:www.faculty.rsu.edu/history/mgtfayol.html

http:www.mr-guide.com/data/G510.htm

http:www.sancharnet.com/lo_index.htm

Books
Kasande, S. P. (2006). Research Methodology'. NiraliPrakashan.

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.

Kotler, P. (2009). Marketing management: A south Asian perspective. Pearson Education India.

Ramaswamy, V. S., & Namakumari, S. (2002). Marketing management: Planning, implementation &
control: Global perspective Indian context. MacMillan.

58
 QUESTIONNAIRE

Dear Sir/Madam

Name______________________

Address: ____________________________

Contact No _________________( O)_____________ (M)______________

City: _________Pin: ____________State: _____________

I am a student of School Of Business And Management Studies, Central university of

Himachal Pradesh , Dharamshala presently doing a project on sales promotion of HPMC
products I request you to kindly fill the questionnaire below and Assure you that the data
generated shall be kept confidential.

1. Do you deal in HPMC products ?

yes no

2. For how long are you dealing HPMC products ?

0-1 years 1-2 years

2-3 years 3 & above

3. Which products of HPMC do you deal in ?

Totally Partially Slightly Never Cant say

PRODUCTS
APPLE
PEACH
PEARS
APRICOT
PLUM

4. Communication channels used for promotion ?

60
Channels Responden
t
ADVERTISIN
G
HOARDING
BILL BOARD
BANNER
OUTLETS

5. Are you satisfied with the facilities provided by HPMC for growth ?

Highly satisfied Satisfied Neutral Dissatisfied Highly

Dissatisfied

6. Do you get any reward for max. sales ?

Yes no

7. What type of reward you will get ?

Cash Tour package

Free gifts

8. What do you fell about credit period given by HPMC ?

Very good Good

Satisfied Poor

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 9. What products has got the max. sale for last 1 month ?

MAX. SALE
PRODUCTS
APPLE
PEACH
PEARS
APRICOT
PLUM

10. Are you satisfied with the promotional activities carried out by HPMC ?

HIGHLY SATISFIED NUTERAL DISSATISFIED HIGHLY

SATISFIED DISSATISFIED

Date

Place: Signature

Thank You

64