SUMMER TRAINING REPORT

WITH REFERENCE

TO

MALAR SOAPS AND WORKS

VILLUPURAM

By

SURIYA PRAKASH. M

(REGISTER NO: 422218631028)

Of

SCHOOL OF MANAGEMENT STUDIES

SURYA GROUP OF INSTITUTIONS

Vikravandi – 605 652.

Submitted to the

FACULTY OF MANAGEMENT SCIENCE

ANNA UNIVERSITY

CHENNAI - 600 025

In partial fulfilment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

AUGUST 2019
 SURYA GROUP OF INSTITUTIONS

SCHOOL OF MANAGEMENT STUDIES

Vikravandi – 605 652

DATE:

BONAFIDE CERTIFICATE

Certified that this “SUMMER TRAINING REPORT WITH REFERENCE TO MALAR

SOAPS AND WORKS” is the bonafide work of SURIYA PRAKASH.M (REGISTER NO:

422218631028) who carried out the project under my supervision. Certified further, that to the best of

my knowledge the work reported here in does not form part of any other project report or dissertation

on the basis of which a degree or award was conferred on an earlier occasion on this or any other

candidate.

Internal Guide Dean

 DECLARATION

I hereby state that the “SUMMER TRAINING REPORT WITH REFERENCE TO

MALAR SOAPS AND WORKS” submitted in partial fulfillment of the degree of Master of Business

Administration is an original work done entirely by me and is based entirely on my own observations.

It has not previously formed the basis for the award of any other degree, diploma, fellowship or any

other similar title. The facts presented here are true to the best of my knowledge.

Place: Vikravandi

Date. (SURIYA PRAKASH.M)

 ACKNOWLEDGEMENT

I take this privilege to express a few words of gratitude and respect to all those who helped me

in completion of summer training.

I would like to express my heartfelt gratitude to our Chairman Dr. P. GAUTHAMA

SIGAMANI, who enabled me to complete this project.

I feel obliged to S. BALAJI, The Dean, School of Management Studies, and Surya Group of

Institutions for his support and encouragement.

I thank Mr. GOBINATH, Manager 2019 COMPANY for helping and guiding me throughout

the period of Summer Training.

I owe my achievement to the inspiration and kind guidance to my respected MR.S.BALAJI

Professor, School of Management Studies, Surya Group of Institutions and I am thankful for his sincere

guidance as my Internal Guide to successfully complete my project.

I express my sincere thanks to Summer Training Work coordinator, Mr. LAKSHMI

NARAYANAN Professor, School of Management Studies and all other Teaching & Non-Teaching

staff members of this School for their continuous monitoring, cooperation and support

I take immense pleasure to thank my family members and friends for the successful completion

of the summer training.

SURIYA PRAKASH
 ABSTRACT

This study is taken to know about the overall process of Malar soaps

and works private limited company, which is located in villupuram. It is the

leading detergent soap manufacturing company in the location. The primary

objective of the study is to find the functional department and the activities

held in the company.

 TABLE OF CONTENT

PAGE
TITLE
CHAPTER NO. NO

I 1.1 INTRODUCT ION

1.2 COMPANY PROFILE

1.3 INDUSTRY PROFILE

1.4 PRODUCT PROFILE

1.5 ORGANISAT IONAL CHART

II 2.1 OBJECT IVES OF THE STUDY

2.2 LIST OF DEPART MENTS

2.3 OVERALL DEPARTMENT STUDY –

CHRONOLOGICAL ORDER

III 3.1MANAGERIAL SKILL DEVELOPED

3.2 CONCLUSION

Appendix1

Bibliography
CHAPTER-I
INTRODUCTION

This report is based on “Organisation Study” conducted at Malar Soaps private Limited,

villupram. Organisation is defined as the “Association of Various departments in the firm in

which all work collectively in attaining the goals & Objectives of the company by rendering

the valuable services towards it by both Employers and management.

OBJECTIVES OF ORGANIZATION STUDY:

 To know about company profile

 To know Vision and Mission of the company

 To identify safety, security and welfare measure of company regarding their workers

 To know awards and achievements of company

 To know the Corporate Social Responsibility of the company

 To know company corporate structure and hierarchy of individual departments

 To know organizational activities in all functional areas and relate this to

 Theoretical knowledge acquired.

 To know the strength, weakness, opportunities and threads (SWOT Analysis) Of

company.

SCOPE OF STUDY:

This report mainly focuses its view on company’s profile and different

Departments such as Marketing, Finance, Human Resources department,

Service and operation department. The project internship study is to make the

Study of different department, working and finding of problem to give proposal

Of solution.
LIMITATION:

 The outcome of the study is highly dependent on the perception, attitude and

 Understanding of the observer.

 Sometimes the management is not interested to disclose their documents to the

Observer.

 The report may be wrong if the data collected during the study is not accurate.

 Organization study needs more time as its purpose is to study the overall structure and

operation of a business unit.

 The attitude, co-operation and transparency of the management also affect the

 Outcome of the organization study.

CHAPTER-1
INDUSTRY PROFILE:

Soap is one of the commodities, which have become an indispensable part of

The life of modern world. Since it is non-durable consumer goods, there is a large

Market for it. The whole soap industry is experiencing changes due to innumerable

Reasons such as government relations environment and energy problems increase in

Cost of raw material etc.

The changing technology and ever existing desire by the individual and the

Organization to produce a better product at a more economical rate has also acted

As catalyst for the dynamic process of change.

More and more soap manufactures are trying to capture a commanding market

Share by introducing and maintaining acceptable products. The soap industry in India faces a

cutthroat competition while multinational companies dominate the market.

They are also facing severe threat from dynamic and enterprising new entrance

Especially during 1991-92.

If we look back into the history of soaps & detergents, humankind knew about

Soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered

The soap, when roasted meat over flowed on the glow in ashes

This lump like product was soap & had foaming & cleansing character. In 1192 A.D.

the first commercial batch of soaps was made & marketed by M/s Bristol

Soap market in London, from there in 1662A.D. the first patent for making soap was

Taken in London. The world consumption of soap in 1884A.D. Was said to be two lakh

tonnes
CHAPTER-II
INTRODUCTION TO SOAP INDUSTRY:

Soap is one of the commodities, which has become an indispensable part of

Life of the modern fantasy world. Since it is non-durable consumer goods, there is a

Large market for it. The whole soap industry is experiencing changes due to

Innumerable reasons such as Government relations, environment, toxicological

Allergy problems, increase in cost of raw material etc.

A detergent is a surfactant or a mixture of surfactants with "cleaning properties in dilute

solutions. “These substances are usually alkyl benzenes folates, a family of compounds that

are similar to soap but are more soluble in hard water, because the polar suffocate (of

detergents) is less likely than the polar carboxyl (of soap) to bind to calcium and other ions

found in hard water. In most household contexts, the term detergent by itself refers

specifically to laundry detergent or dish detergent, as opposed to hand soap or other types of

cleaning agents.

Detergents are commonly available as powders or concentrated solutions. Detergents, like

soaps, work because they are amphiphilic: partly hydrophilic (polar) and partly hydrophobic

(non-polar). Their dual nature facilitates the mixture of hydrophobic compounds (like oil and

grease) with water. Because air is not hydrophilic, detergents are also foaming agents to

varying degrees.

Indian Detergent Market:

The detergent market in India is divided into three segments – premium, mid-range,

and popular. The premium segment comprises Ariel and Surf; the mid-range segment

comprises Tide, Henko, and Rin; and the popular segment comprises Mr White, Wheel, Nirma

and Ghari.
 The market share of the detergents in the premium segment is 15%, and that of the mid-

range and popular are 40% and 45% respectively.

These detergents brands are considered to organised players in the industry and comprise 60%

of the total market. The remaining 40% of the market is saturated with regional and small-

unorganized players. Reports show that India’s per capital consumption of detergent stands at

2.7kg – the lowest in the world.

Before 1985, Hindustan Unilever’s Surf held the number one position in the detergent

market in India. However, when Nirma Chemicals launched a detergent brand called Nirma,

catering to the middle and lower middle class customers, Surf was evicted from its number one

position.

Soon, HLL realized that there were fragments of the market, which were untouched

by major detergent players in India and it came up with two low-priced detergents called

Wheel and Rin to cater to the lower middle class group.

When Hindustan Lever, HLL, and Nirma Chemicals began increasing their market share,

Rohit Surfactants, yet another player, launched a detergent brand called Ghari for rural

customers, and middle and lower middle class customers.

Today, Ghari is the market leader in the detergent industry, with a market share of

17.3%. Wheel is tagging behind closely at 16.9%. Tide is at present at the third position with

a market share of 13.5% and Nirma has less than 6% market share. Ghari has always

maintained affordable pricing, which is why it has managed to become a household name in

India.
COMPANY PROFILE:

‘MALAR SOAP AND WORKS’ this brand name is applied by p.i.malar soap works

who has a business location at No.115 pilayar koil street kakuppam poyyapackam villupuram

South Arcot.

Business Name: - P.I.Malar soap works

Business type: - proprietorship

Business sector: - Manufacturing

GOODS AND SERVICE:

Manufacturing washing soaps for sale in South Arcot North Arcot Trichy Pudukkottai and

Tanjore in Tamilnadu.

OBJECTIVES OF THE COMPANY:

To serve the national economy

 To attain self – reliance

 To promote and uphold its image as symbol of traditional products

 To promote purity and quality products.

 To build upon the reputation of soap based on purity and quality.

 To maintain the brand loyalty of its customer.

 To supply the products mentioned above at most reasonable and competitive rate.
MISSION:

 To serve the National economy.

 To attain self-reliance.

 To promote purity & quality products.

 To maintain the Brand loyalty of its customers.

QUALITY POLICY:

Communicate its environment policy and best practices to all employees for Implication.

Set targets and monitor progress through internal and external audits.

Strive to design and develop products, which have friendly environmental impact during

manufacturing, also reuse and recycle materials wherever possible and minimize energy

consumption and waste.

PRODUCT PROFILE:

The product and services of the MALAR SOAPS AND WORKS

The Malar’s detergent soaps are available in various flavours like rose, lime etc.
CHAPTER-III
 ORGANIZATIONAL CHART

GENERAL
MANAGER

SERVICE ORGANIZATION FINANCE

SALES
OBJECTIVES OF THE STUDY

The main objectives of the present study are as follow:

 To study the liquidity position of the Malar soaps and works.

 To study the long term solvency of the Malar soaps and works.

 To study about the profitably of the Malar soaps and works.

 To study about the operating efficiency of the Malar soaps and works.

 To analyse the statement of assets and liabilities to identify the efficiency of the

utilizations of assets and deployment of capital.

 To analyse the reason for loss and to find the ways to recover it.
 SCOPE OF THE STUDY

Ratio analysis is a widely used tool for financial analysis; trend analysis and comparative

balance sheets are being used for analysis.

Condition in any business operation change day by day and in this dynamic situation

the ratio informs management about the most important issues requiring their immediate

attention. The ratio shows the connection that exist between different parts of the business.

The business ratios are the guiding stars for the management and comparative balance

sheet are showing the effective utilization of the assets and its growth over the year and trend

analysis is used to know the growth over the year.

This study help the management to know about the real reason for profit or loss and the

suggestions given will be of useful for the management, for the future growth of the

organization.
 NEED FOR THE STUDY

The financial statement of the company are what keep the company running. Thus if the

funds available not properly utilized the company could head to a financial crisis.

Therefore, it is essential to manage the fund properly to ensure the survival and

competitiveness of the firm.

The need of this study find management is to understand the position of funds both in

terms of solvency and liquidity of any business. In order to study the fund management

concept the researcher has done the project in the organisation.

LIMITATIONS OF THE STUDY:

Even though the financial analysis of the balance sheet is made with more care and in

effective manner, there are some limitation of the study namely,

 The conclusions cannot be taken on their face value.

 Their price level is changing over their period based on historical data.

 The results are derived from the balance sheet figure,

 The time limit for the collection of data is very short.

OVERALL DEPARTMENTS:

The overall departments in the Malar soaps and works. They have various department that is

the,

 PERSONAL DEPARTMENT

 FINANCE DEPARTMENT

 SALES& MARKETING DEPARTMENT

 STORES DEPARTMENT

 SERVICE DEPARTMENT
 FINANCE FUNCTION ON OVERVIEW

Finance is the lifeblood of all monetized socio-economic formations ranging from unclear

families to complex national and international organization. Financial administration relates to

the systems, which generates, regulates and distribute monetary resources needed for the

sustenance and growth of organization.

In the circulatory system, the arteries carry blood to every part of the body, veins carry it

back, and the heart regulates the flow. The circulatory system integrally digest the food carried

through the alimentary canal and augment the blood steam, which helps the young to grow

and the old to renew and sustain. The lungs a part of the respiratory system help to purify the

blood. The brain, which controls the entire organism, is conditioned by natural environment.

In the same way, financial system is a sub system of the administrative system which itself is

an integral part of the national and the environment.

A system or sub-system comprise several component parts. In the circulatory system,

there are blood vessels, heart, red corpuscles that carry oxygen to the cells, white corpuscles

that fight intruders and foreign bodies and so on. In the same way the components of the

financial systems and process of collection of revenues and other of income, custody of

funds, Disbursement and control of expenditure, which are closely interrelated with one

another. The number of the components and degree of sophistication depend upon the

complexity of the system and the technology employed.

FINANCIAL STATEMNT ANALYSIS

Financial statement is an organized of collection of data arranged logically and

consistent with accounting procedures. Its purpose is to convey and understanding of some

financial aspects of the business firm. If may show a position at a movement in time as a
balance sheet or may reveal a series of activities over a given period, as in an incomes

statement.

Financial analysis depends primarily on the evaluation of the firm’s financial statement

and it particular the balance sheet and the income statement.

The tools of financial analysis are financial ratio numerous financial ratios have been

developed financial ration provide a means for comparing the performance of firms with in

an industry and among industries further they are used to trace the operational and financial

history of a firm. The term financial statement generally refers to two basic statements.

1. The income statement

2. The balance sheet

A business may also prepare in addition to the above two statement.

1. A statement of changes in financial position and.

2. A statement of retained earnings.

Nature of Financial Statement:
It has been stated in an earlier paragraph that financial statements supply financial

information relating to financial position (i.e., revenues and expense, we get from Income
Statement and Balance Sheet presents the assets and liabilities positions at a particular date).

No doubt, these sources of information are very important to the analyst for evaluating

the financial performance of a firm in the form of liquidity analysis, profitability analysis, and

efficiency of management, etc. In the light of the above, the American Institute of Certified

Public Accountants stated: “they (financial statements) reflect a combination of recorded

facts, accounting conventions and personal judgment, and the judgments and conventions
applied affect them materially.”

Thus, the nature of financial statements can be summarised in the following forms:
(a) Recorded facts,

(b) Conventions,

(c) Postulates,

(d) Legal implications, and

(e) Personal judgment.

(a) Recorded Facts:

In accounting, only financial transactions are recorded chronologically day-to-day

transactions that are expressed and measured in terms of money or money’s worth. So,

financial statements which are prepared from the data contained in the financial transactions
contain such recorded data.

Since these data are the result of past activities, these are called historical document/evidence.

Based on such documents, financial statements are prepared and presented to the users of
accounting information.
(b) Conventions:

Convention refers to the general agreement on the usage and practices in social or economic

life, i.e., it is a customary practice or rule, method, a usage. In other words, it is an accounting
procedure followed for the accounting community based on long-standing customs.

Accounting convention can be expressed as:

(i) Convention of Disclosure:

ADVERTISEMENTS:

The doctrine of disclosure suggests that all financial statement should be honest and to that

end, full disclosure of all significant information must be made. It involves proper
classification, summarisation, aggregation and explanation of accounting data in unpublished

financial statements which are of material interest to the users i.e., proprietors, investors,

creditors etc. This doctrine actually gives emphasis on the actuality, materiality, objectivity

and consistency of accounting data in order to disclose fully the true and fair view of the
economic activities of a firm for a particular period.

(ii) Convention of Materiality:

Materiality means ‘relative importance’. In other words, whether a matter should be disclosed

or not in the financial statements depends on its materiality, i.e. whether it is material or not
(immaterial).

It deals with two importance matters viz:

(a) Materiality of Information, and

(b) Materiality of Amounts.

Materiality depends on the amounts involved and the amount so affected. So, the material

item should be disclosed separately whereas immaterial items may not be discussed
separately but may be combined in a consolidated form in the published financial statement.
(iii) Convention of Consistency:
This doctrine implies that accounting rules, practice and conventions should be continuously

observed and applied. In other words, these should not be changed from year to year or one

year to another. Comparison of results of different years is meaningful and significant only

when its accounting rules, procedures and practices are continuously adhered from year to
year.

Consistency can be analysed into the three following ways, viz:

(a) Vertical consistency,

(b) Horizontal consistency, and

(c) Third Dimensional consistency.

(iv) Convention of Conservatism:

Conservatism refers to the principles and practices which are established by way of

tradition— reluctance of change from such established principle and practice, and an

inclination to play safe. In short, it is a policy of caution or playing safe and habits origin as a
safeguard against possible losses in the world of uncertainty.

(c) Postulates:

It is a principle, which is taken to be self-evident, or axiomatic (i.e. something which does not

require to be proved). In other words, it may be said to be an assumption or axiom

constituting the supposed basis of a system of thought or an organised field of endeavour. Its
validity is accepted.

In short, a postulate is said to be (i) An Axiom (ii) An assumption (hypothesis) which has

already been proved to be true. It is considered to be a more fundamental character and

universally acceptable, which may be applied in all possible cases. The same will be true and
workable in many possible situations since it will have greater general applicability.
 Fundamental postulates not only try to explain and support the existing system but

also try to formulate rules and procedures for a system, which has wide and varied
dimensions. These postulates are either descriptive (explanatory) or suggestive (normative).

Accounting Concept is generally used to mean a ‘Notion’ only or mental idea about

something. For example, Cost, Income and Capital, Debit and Credit, Assets and Liabilities,

etc. are concepts, i.e. basic assumptions or conditions upon which are science of accounting is
based.

There is no authoritative list of these concepts. In other words, concept means such

ideas which are coupled with different accounting procedures, e.g. Appropriation and Charge,
Reserve and Provisions, Depletion and Amortization, etc.

The following are some of the important generally acceptable concepts:

(i) Business Entity Concept,

(ii) Going Concern Concept,

(iii) Money Measurement (Monetary Expression) Concept,

(iv) Cost Concept,

(v) Accounting Period Concept,

(vi) Dual Aspect Concept,

(vii) Matching Concept,

(viii) Realisation Concept,

(ix) Balance Sheet Equation Concept,

(x) Verifiable and Objective Evidence Concept.

(d) Legal Implications:

While preparing the financial statements, legal formalities of the country must be

observed or followed, i.e. law of the land, for example Indian companies must prepare their

financial statement as per the requirements of Indian Companies Act, 1956. In short, the

Profit & Loss Account and Balance Sheet must be prepared as per the Schedule VI of the
Companies (Amendment) Act, 1999.

(e) Personal Judgment:

It has been stated above that financial statements must be prepared as per the

accounting principles and the legal framework along with the consultation of Accounting

Standard. Under the circumstances, personal judgment plays a very significant role while
applying the accounting principles.

For example, while valuing the unsold stock someone prefer to apply FIFO method among

other various methods (viz., LIFO, Weighted Average, Simple Average etc.) for valuing
unsold stock.

Objectives of Financial Statements:

The primary objectives of financial statements are to present the true and fair value of

the state of affairs of the firm with the help of its various statements viz. Income statement,

Balance sheet, Cash flow statement, Funds flow statements, i.e. to supply necessary
information to the users and analysts for taking decisions which will be formulated in future.

In short, the objectives of financial statement is to provide information about the financial

position, performance and change in financial position of an enterprise that is useful to a wide
range of users in making economic decisions.
The significant objectives of financial statements are:
(i) They provides necessary information about the financial activities to the interested parties.

(ii) They provides necessary information about the efficiency or otherwise of the
management, regarding the proper utilisation of the scarce resources.

(iii) They provide necessary information for predictions (financial forecasting).

(iv) They help to evaluate the earning capacity of the firm by supplying a statement of

financial position, a statement of periodical earnings together with a statement of financial

activities to the various interested persons.

(v) They facilitate decisions regarding the changes in the manner of acquisition, utilisation,
preservation and distribution of the scarce resources.

(vi) They facilitate decisions regarding replacement of fixed assets and expansion of the firm.

(vii) They provide necessary data to the government for taking proper decisions relating to
duties, taxes and price control, etc. and for some legal and control purposes.

(viii) They device remedial measures for the deviations between the actual and budgeted
performances.

(ix) They also provide necessary data and information to the managers for internal reporting
and formulation of overall policies.

(x) They also help to safeguard the interest of shareholders who are not allowed to go through
the day-to-day affairs of the firm.

(xi) They help to settle disputes arising from High Court, Supreme Court, Arbitrators etc.

(xii) They help the credit rating agencies to determine the rating of the Company.
PERSONNEL DEPARTMENT:

Most major companies and even some government organizations have a purchasing or

procurement department as part of everyday operations. These departments provide a service

that is the backbone of many manufacturing, retail, military and other industrial

organizations. Many individuals, even some who work for these companies, are unaware of

what the purchasing department does, why it exists or what purposes it serves. To understand

better what the role of the purchasing department is, consider some functions it performs.

Procuring Raw Materials and Other Resources:

One role of the purchasing department is to procure all necessary materials needed for

production or daily operation of the company or government organization. For a

manufacturing company, this might include raw materials such as iron, steel, aluminium or

plastics, but it also might include tools, machinery, delivery trucks or even the office supplies

needed for the secretaries and sales team.

In a retail environment, the purchasing department makes sure there is always sufficient

product on the shelves or in the warehouses to keep the customers happy and keep the store

well stocked.

With a small business, it is especially important to keep inventory ordering at a reasonable

level; investing large amounts of capital in excess stock could result in storage problems and

in a shortage of capital for other expenditures such as advertising or research and

development. Purchasing also oversees all of the vendors that supply a company with the

items it needs to operate properly.

Achieving the Best Possible Price

A purchasing department also is charged with continuously evaluating whether it is

receiving these materials at the best possible price in order to maximize profitability. This can

be challenging for a small business that may purchase in lesser quantities than a larger vendor

and which thus may not receive the same type of bulk discounts. A purchasing department in

a small business needs to shop around to find the best vendors at the most reasonable prices

for the company's particular size orders.

Purchasing department staff may communicate with alternate vendors, negotiate better

pricing for bulk orders or investigate the possibility of procuring cheaper materials from

alternative sources as part of their daily activities.

Paperwork and Accounting

Purchasing departments handle all of the paperwork involved with purchasing and

delivery of supplies and materials. Purchasing ensures timely delivery of materials from

vendors generates and tracks purchase orders and works alongside the receiving department

and the accounts payable department to ensure that promised deliveries were received in full

and are being paid for on time. In a small business, this means working closely with the

accounting department to ensure that there is sufficient capital to buy the items purchased,

that cash is flowing smoothly, and all payments are made on time.

Compliance with Business Protocols

The purchasing department also must ensure that it is complying with all company policies.

For example, in a small business, individual staff members may communicate with the

purchasing department about purchasing needs for things such as office supplies or

computers. Before making a purchase, the purchasing department must ensure that it heeds
the proper protocols for purchase and budget approval and must ensure that any items are

purchased in accordance with the overall purchasing policy of the organization.

SALES& MARKETING FUNCTION ON OVERVIEW:

The various functions of sales department are:

1. Market Research

2. Advertising

3. Sales Correspondence

4. Sales

5. Service

6. Packaging

7. Warehouse.

Function # 1. Market Research:

It means study of market, which includes forecasting, intelligence and statistics. It is an

important factor for the sale of products. Failure to do this accurately may lead to the produc-

tion of more goods that the market can absorb. This may mean financial losses to the firm. It

may also lead to under-production, the results of which are equally unpleasant.

In estimating sales for a future period, number of factors has to be considered, the most

important of these are:

(a) Secular Trends:

Means due to increase of population, the demand of products may also increase in

proportion.
(b) Cyclical Changes:

These are changes due to agricultural crops, wars, inventions, discoveries etc.

(c) Seasonal Fluctuations:

These are changes in the volume of sales due to climatic conditions or festive buying.

There are many products like umbrellas, woollen wears, neckties etc. which have a seasonal

demand while products like soap, toothpaste, blades etc. are free from such seasonal

fluctuations.

(d) Nature of Products:

Products are classified as consumer goods and capital goods. Articles of food,

toiletries, shoes, toys, papers, pencils come in the first category while machinery, machine

tools etc. come in the second category.

Consumer goods such as shoes are rapidly used and must be continually replaced. So there is

more regular demand for them. But capital goods, such as lathe whose life is long enough,

have more fluctuations in their demand than consumer goods.

Hence in estimating future sales, a manufacturer must take into account the nature of his

product and study how changing business conditions will affect the demand for his product,

(e) Competition:

This makes it necessary to study the recent or proposed production, sales and pricing

policies of the competitors. Most important of these is the analysis of the quality of the

competitor’s products to ascertain how a potential customer would compare with one’s

product.
 The sales department should ask its salesmen to report and comment by a potential

customer about the firm’s product or the products of its competitors. It should also study the

research and product development work that the competitor may be carrying on in order to

forecast as to how these will affect future sales.

(f) Government Action:

Effect of large government buying, levy, excise duties, policy regarding taxation of

personnel income, monetary policy of deficit finance etc.

Function # 2. Advertising for Sales:

Advertising is the publication of information regarding articles (products) put up for

sales and is a method to bring the producer into touch with customers. This informs the

customers about the product and the place from where they can get it.

Advertising promotes trade and creates demand and hence it is the pivot of modern

trade, commerce and business. The most appealing definition of advertising is- “advertising

bring to the greater number of people, actual knowledge concerning useful things, thus

it is essentially a form of education of the people about the product.”

Functions of Advertising:

Following are the main important functions (or objects) of advertising:

(i) Advertising is the powerful media of demand creation by reaching to the customers and

telling them about good qualities of the product.

(ii) To prepare ground for a new product by way of introducing its product to the public,

(iii) It enhances the goodwill of the company among customers.

(iv) Advertising helps the product to stand against its competitor products.
Advantages of Advertising:

(A) To Manufacturers:

(i) It increases sales by way of increasing demand.

(ii) Helps salesmen by preparing ground for them.

(iii) Creates good will by telling customers about the quality and service.

(iv) Lower costs can be achieved by way of increasing the turnover due to advertising.

(B) To Customers:

(i) Facility in purchasing a product is felt by the consumer because he can decide that

what he should purchase,

(ii) Better quality is available to the customer.

(iii) Because of the direct contact between manufacturer and the customer, middlemen cannot

charge more profit.

(C) To Society:

(i) Advertisements help the newspapers in keeping their rates low, so that the newspapers are

well within the reach of common people.

(ii) These, by way of increasing the production, raise standards of living.

(iii) Provides employment, encourage artists etc.

(iv) To remain in the market and to advertise specialties of the product, manufacturer has to

pay attention on research so as to get new improved and better products.

Economic Implications of Advertising:

Advertising has following main economic implications:

(i) Informing Consumers:

An advertisement informs the consumer about the market condition, namely, the

goods available in the market, their characteristics, the model best suited to the needs of the

consumer and so on.

(ii) Broadening the Market:

Advertising broadens the market by familiarizing the consumer with new products,

increasing the number of dealers. All this tends to increase the production and hence lower

the cost due to mass production. Advertising reduces the scope for earning local monopoly

profits.

(iii) Lowering Selling Costs:

Its main advantage is to lower the cost per contact e.g. one newspaper advertisement

places the product before the eyes of many more prospective buyers that the equivalent

expenditure on salesmen. Thus efforts for retail sales are reduced, which reduces per unit

expenditure on sales.

(iv) Encouraging Competition:

With the help of advertising new firms can introduce their products, more rapidly than

would be possible without advertising.

(v) Criticism:

Advertisement has been criticized for (a) misinforming the consumers and (b)

concentrating the market in the hands of few, who can invest heavily on the advertisements,

this creates problems in establishing new business with limited resources, even if the product

is good.

Function # 3. Sales:

All the activities of the Sales department are for selling to earn maximum profit. For

this purpose, continuous search is made for profitable markets. Various agencies are opened

throughout the country and if possible, in foreign markets also.

Sales Promotion:

Sales promotion is a direct and immediate inducement that adds an extra value to the

product so that it prompts the dealers, distributors or ultimate consumers to buy the product.

Sales promotion activities are complementary to advertising and personal selling efforts.

Objectives of Sales Promotions:

Sales promotion objectives are:

(i) For introducing new products

(ii) For unloading accumulated inventory.

(iii) For overcoming a competitive situation.

(iv) For overcoming seasonal slumps/decline,

(v) As a support to the advertising effort.

Function # 4. Sales Correspondence:

Any incoming letter must be replied in a short time. The letter should be tactful,

simple in language, helpful and every customer must feel that his enquiries are being

considered.

Quotations for the supply of products should be sent to large number of customers and

try to capture large markets.

If the promises cannot be kept with regard to delivery date or other matters, the

customers should be informed immediately and whenever practicable reasons for the delay

should be given.

Function # 5. Service:

Industry is rapidly adopting the principle that service is an essential part of the sales

itself. Manufacturers often find it essential to see that their products are properly installed.

This is not only a service to the customers but also a protection against complaints and

general dissatisfaction of the customers.

The manufacturers, therefore, maintain a staff of skilled engineers and mechanics, who carry

out tests at the customer works, give technical help and advice and see that everything is

functioning properly.

Function # 6. Packing:

Packing to be used for products depends upon the type of product to be packed.
Following are the few types of packing of industrial products:

1. Paper wrapper

2. Tin container.

3. Cloth packing

4. Card Board Packets

5. Plywood Boxes

6. Plastic packing’s and

7. Wooden packing.

Packing also has an important role in the sale of product. With the help of good

packing, the products can reach to the customer in same form and quality as they were before

despatch. Good packing also helps in advertising and attracts more number of customers.

Function # 7. Warehouse:

These are the go-downs, for storing finished products after they are packed in a

systematic manner. These are built in such a way that materials can be kept in them for a

period till they are sold. For easy transportation, these are generally situated near the factory

main gate.
FINDINGS:
 It is a company wholly owned by sole proprietor, so its decision making process is
made by him own.
 The Company is under utilizing its capacity.

 Its production is based on old technology, which leads to more wastes in

The production process.

 Consumer awareness of its products is very less.

 Its products are only available in local market.

 There is mismatch in production & sales activity.

 Recruitments are taking place only some department.

SUGGESTIONS:

 People are unaware of products produced by the company.

 As its marketing is very weak. Therefore, it should spend both money and man power
on advertising. They should also improve in building up the strong marketing
strategy in order to improve the distribution channels and could be able to increase the
sales.

 Thus the R&D should work effectively and the break-through in new products and
can make the company to earn more profits. The management should design

 Training and development programmes and Career Development programs and

 Identify the skills or knowledge.
CONCLUSION:

The study indicate that the positive aspect is that the company insist on good labour

relation and works for good harmony within the organisation.

More than earning profit the company concentrates on many other aspects that it

needs to survive the competition in the market. Employee motivation is most required in the

organisation

Many employees require motivation in order to achieve productivity. Soaps industry

is an upcoming industry and definitely, the employees will have enough opportunity and

future career growth in the industry. Company provides its employees with social and cultural

programmes that are very much needed for the employees.

The company has an effective human resource department where in the employees are

given good remuneration, incentives and extensive care is taken by providing facilities such

as canteen, medical facilities, and extracurricular activities.

The organization has excellent communication system as the organization’s short term and

long-term goals are communicated to the employees on regular basis.