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ORGANIZATION STUDY AT
LUNAR RUBBERS PVT LTD, THODUPUZHA,IDUKKI
The Report submitted in partial fulfilment of requirement for the
award of degree of
MASTER OF BUSINESS ADMINISTRATION
UNIVERSITY OF KERALA
Submitted by
Peter Varghese
MGT.0905275
Under the guidance of
Mr.Sandeep
(Faculty Guide IMK Alappuzha)
INSTITUTE OF MANAGEMENT IN KERALAUNIVERSITY OF KERALA
ALAPPUZHA
2009-2011
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CERTIFICATE
This is to certify that the project report entitled An organisational study of Lunars
Rubbers Pvt. Ltdis a record of the work done by Peter Varghese. as a part of the Project
Work during the Third Semester at LUNAR RUBBERS (P) LTD THODUPUZHA,
IDUKKIin partial fulfilment of the requirements for the award of the Degree of MASTER
OF BUSINESS ADMINISTRATION of the Kerala university University.
Project Guide
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CERTIFICATE
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DECLARATION
I hereby declare that this project work entitled An organizational study of Lunars Rubbers
Pvt. Ltd with special reference to Human Resource Department at Lunars Rubbers Pvt. Ltd
has been prepared by me under the guidance of Mr.Sandeep Lecturer, INSTITUTE OF
MANAGEMENT IN KERALAALAPPUZHA. I also declare that this project work is my
original work and that it has not previously formed on the basis for award of any degree or
diploma.
DATE: 21/07/2010. PETER VARGHESE
PLACE: ALAPPUZHA
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere gratitude to all those who have
helped me throughout this organizational study. It gives me immense pleasure to
acknowledge all those who have rendered encouragement and support for the successful
completion of this work.
First of all I would like to thank our Co-ordinator Prof.M.Sukumara Menon (IMK
Alappuzha) for allowing me to do this study. I wish to express my sincere thanks and
gratitude to my guide Mr. SANDEEP (Faculty Guide Alappuzha).
I am highly obliged toMr. ISSAC KOTTUKAPPILLY (Chariman), Mr.Stephen Joseph
(MD Lunar Bags), and Mr. Bastion Joseph (MD Lunar Exports) for providing me an
opportunity to conduct this project. I am grateful to all the staff of Lunars for their whole
hearted co-operation given to me in the training period.
It had been an enriching experience to learn about the working and administration of this
organisation and I am grateful for the courtesy extended to at Lunars Rubbers Pvt. Ltd.
Above all, I thank almighty God for helping me to complete the project successfully.
Peter Varghese
S3 M.B.A
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EXECUTIVE SUMMARY
Lunar Rubber Pvt. Ltd is one of the pioneers of the footwear industry of Kerala, backed by
the blessings natural latex, bring forth the quality footwear, bags and Umbrella. The
company is dedicated to providing quality products for the customers. The company is a
prominent player in the foot wear manufacturing industry in the country.
The organisation study was done in order to study the functioning of the company, the
structure, various departments and the roles and functions of these departments.
From the study it was found that the company is having a potential future by customers to
whom the company has not reached yet. The findings are analysed and some possible
solutions are also recommended.
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PART - A
ORGANISATION STUDY
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PART-A
ChapterINTRODUCTION 10
Scope of study 11
Objective of study 11
Sources of data collected 12
Limitations 12
Industry Profile 13
Company profile 15
History and growth of company 16
Strategy of company 17
Policy of company 17
Awards won 18
Quality objective 18
Product profile 19
Organisational Structure 25
Overall Functioning of the company 27
Different departments 31
HR Department 32
Purchase Department 39
Finance Department 43
Production Department 48
Marketing Department 59
Organisations contribution to Society 69
Analysis 71
SWOT Analysis 72
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Conclusion 74
Findings 75
Suggestions 75
PART-B
Research Study
Introduction 77
Purpose of study 78
Method of data collection 79
Research Design 89
Data analysis and interpretation 81
Conclusions 103
Findings 103
Suggestions 104
Questionnaire 106
Bibliography 106
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INTRODUCTION
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SCOPE OF THE STUDY
The project work helps to understand the practical use of the Theoretical concepts. It helps
to familiarize the structure, system, procedures and functioning of the organisation. The
theoretical knowledge regarding the various management phases and aspects get a practical
exposure with the Organizational Study at Lunar rubbers Pvt. Ltd . The organisational study
has provided new views regarding its functions. It has brought the information about various
aspects of management and has been of invaluable help and assistance to get a good in sight
about the practical aspects.
The study is restricted to explore the various functions under taken by each department. It
provides a better understanding at functional level of each department i.e. production,
marketing, finance and human resource management. This study confined to 21 days based
on the primary data obtained from various departments, various level managers and other
supervisory staff. Secondary data include reports and brochures provided by the
organization.
OBJECTIVES OF THE STUDY
(1). To familiarize with the various functional departments of the company.
(2). To study the strengths and weaknesses of the organization
(3). To study the organization as a system and its various functional areas.
(4). To have a practical knowledge of the application of the Management theories.
(5). To understand the strategies adopted to confront the challenges faced by the company.
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SOURCES OF DATA COLLECION
PRIMARY DATA
Refers to the data that was collected first hand, directly from the source. This consisted
primarily of interviews and discussion with the managers, employees and other staffs.
SECONDARY DATA
Refers to the data that was previously collected byothers for another purpose. It Includes:
Company Booklets
Organizational websites,
Annual reports and
LIMITATIONS OF STUDY
The organization was reluctant to disclose some relevant information required by
researcher.
Certain information was vague and study based on these may not get a true picture.
Time limit is another limitation and it restricted the study in few areas. Human
limitations are also subjective.
INDUSTRY PROFILE
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FOOTWEAR INDUSTRY
The history of footwear goes back many 1000 of years. Today, foot wear industry
manufacture a wide range of footwear varying from leather, rubber and other synthetic
materials of styles varying from Casual, formal, work and athletic shoes. Paraffin wax and
China clay are the most important raw materials. These are easily available in India. English
India Clay Ltd., Thiruvananthapuram provides the china clay for the footwear manufactures.
Important hawai footwear manufactures in India are Lunar, Paragon, Bata, Rubco,
Premier, Fisher etc., India ranks second among the footwear producing countries next to
China.. Footwear Industry is a high profit and fast growing industry, which provides good
income to the country.
There is cut-throat competition in the hawai chapel industry. There are a number of
hawai chapel manufactures and hence if one has to survive in the industry, it has to
strengthen its marketing network. The competition in the industry rises as the number of
Hawai manufactures, increases and it is due to high price of rubber products in the market.
So in the years to come, the competition in this industry is going to increase and it is going
to be a testing time for the present manufactures.
Lunar Rubber Pvt. Ltd is one of the well known of most advanced manufacture of
footwear and Umbrella. Lunar Rubber's Pvt. Ltd emphasis on providing customer
satisfaction of Quality products. Now a day's rubber industry is growing exponentially.
Rubber is an important material in the modern world. Every year the use of rubber is rising.
Now the rubber has become an indispensable material, which has got much demand in daily
life.
WORLD SCENARIO
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Rubber is an important material in the modern world. Every year the use of rubber is rising.
It has a history of seven decades. Now a days rubber has become an indispensable martial
which has got much demand in daily life with the growth in the population of India at a
tremendous rate, there is a lot of scope of the growth of this industry in future years. So the
government has given a lot of priority to this industry.
INDIAN SCENARIO
India is the fourth largest producer of rubber in the world after Thailand, Indonesia and
Malaysia and the fourth largest consumer in the world after USA, Japan and China.
India ranks second among the footwear producing countries next to China. India producesmore of gents footwear while the worlds major production is in ladies footwear.The
industry is labour intensive and is concentrated in the small and cottage industry sectors.
While leather shoes and uppers are concentrated in large scale units, the sandals and
chappals are produced in the household and cottage sector.
STATE SCENARIO
However 94% of the natural rubber is produced in Kerala and the balance 6% is from
plantations in other states. But now the production is higher than the demand. The value is
increasing day by day. In these states most of the rubber based industry are engaged in the
production of tyre, rubber bands, thread rubber, footwear etc.There are over five thousand
rubber goods manufacturing units in the country consuming over 5 Lakh tones of rubber per
year. Nearly 48% of the rubber consume in the industry is by 30 tyre manufactures. Now
there is a big boom in rubber based industrial sectors of the state. Kerala entrepreneurs andrubber growers are educated, encouraged and supported in setting up rubber based
industries.
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COMPANY PROFILE
OWNERSHIP PATTERN
The Lunar group is promoted by Mr.Issac Joseph. An engineer by profession , he is
experienced in developing and promoting innovative business strategies and is the chairman
of group concerns. The other board of directors of lunar are Mr. Juby Issac, Mr..M.K.
Kuriakose, Mr.P.K. Kurian, Mr. James P Jacob, and Mr. Jess Issac.
In Lunar Rubbers Pvt.Ltd. there will be quarterly meetings of the director board
members. The board of directors in their meetings determines corporate level policies andprocedures. But special meetings are convened in case of an emergency. The board of
directors appoints the managing director to be in overall charge of administration of the
company and office assisted by various officers at the office and the factory. Any strategic
decision involving policy matters will be taken only with the concurrence of M.D. The
G.M., Asst.G.M., Finance manager marketing manager, production manager, purchase
manager,and personal manager assists M..D. in taking such decisions.
The M.D. conducts weekly meetings every Monday with various department heads.
In these meetings each department head presents the weekly report of their respective
departments. The G.M. is the overall charge of the office with particular charge of matters
connected with register of companies, banks, district industries centre,sales tax,income tax
and company meetings.The assistant G.M.assist the M.D. and the G.M.successfully carrying
out their duties with regarding to Rubber board labour office,Insurance matters,Training of
personnel, municipal and panchayat licences etc.
Top level managers of the company are generally concerned with planning involving
activities that has a duration of 6 months and above. Lower level managers are more
concerned with planning activities for the day, week,or the month. The supervisors plan for
the work activities for the workers for the day. Top level managers generally spend time on
planning. They are more concerned with establishing objectives and developing plans to
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meet those objectives and developing plans to meet those objectives. Lower level managers
are more involved in executing those plans.
HISTORY AND GROWTH
Lunar Rubbers Pvt.Ltd.was established by Mr.Issac Joseph, an engineer by profession
was the nucleus behind the venture and it was on his initiative the firm grew to fame as its
known today. While making a imperative step forward, Mr. Issac Joseph had immense
experience with him, obtained from his responsibility as managing director of Viking
Rubbers Pvt.Ltd. Thus the history of Lunar rubbers has its root into the accounts of its
predecessor-Viking Rubbers Pvt.Ltd. ,a registered S .S .I. unit established in 1976.
Viking Rubbers was promoted as the part of the massive industrialization programme
of rural Kerala. Starting its function at mini industrial estate at Olamattom, the firm had to
face severe set backs because of the lack of technical knowledge and experience in the field
or markets. However the project went ahead and the company now holds neither
governmental nor bank liability other than liability for working capital.
On 27/11/1982, Lunar Rubbers , a partnership firm was registered as a S.S.I. unit.
Later in 1993,the firm was converted into a private limited company. Lunar rubbers
achieved rapid growth due to its stringent policies on quqlity. Introduction of high quality
chapels enabled the company to initiate early break through in the market. The products
soon earned reputation in the market and neighbouring states as well. The company had to
soon hike the production so as to cater to the increase in demand.
Today the company holds sound deal links throughout South India.The companys
reputation spread across further towards north in recent years. At present the company has
strong markets in Gujarat, Maharashtra, and other Northern states as well. It has also
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sneaked into overseas markets. The company today owns production units in Thodupuzha,
Mundakayam, Coimbatore, and Mysore with its head quarters in Thodupuzha.
50%of the production of the group is sold outside kerala including gulf countries and
European countries. In India, Lunars hawai chapel is available in the states of Tamilnadu,
Karnataka, Gujarat,Maharashtra, Andrapradesh,Pondichery,Goa etc.other than Kerala.
The group of expanding its capacity and product line like canvas and leather shoes
manufacturing are on the anvil. The company has also entered in the umbrella and school
bag market. With a penchant for customer satisfaction and a passion of Research and
Development, the company is confident of surpassing its goals.
LUNARS GROUP OF COMPANIES:
Name of the company Location
Lunar Rubbers (P) LTD Thodupuzha
Viking Rubbers (P) LTD Thodupuzha,Coimbatore.
Neo Rubber Foot Crafts (P) LTD Thodupuzha
Akshaya Rubbers Mysore.
Misha Rubbers Mysore.
Foot Craft Rubbers Industries Mundakayam
Mathew Rubbers Coimbatore
Utham Rubbers (P)LTD Mysore.
VISION
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Organizations usually follow several plans to reach their goals. Lunar formulated following
strategies to achieve these objectives.
Develop superior quality products using new technology imported from developed
countries.
Company will also continue to identify and explore consumer market by conducting
market researches.
Thoughtful planning and rightly hiring human resource helps the company to
maintain a high level of standard in its operations.
POLICY OF THE COMPANY
We at Lunar Rubbers Pvt.Ltd. are commited to:
Leadership by example.
Utmost customer satisfaction.
Nonstop quality by upgradation.
Assure employee involvement in the quality management system.
Reciprocate by delivering products that moves fast in the market.
AWARDS WONISO CERTIFICATION
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Lunar Rubbers Pvt.Ltd. is an ISO 9001-2000 certified company.The company got ISO
certification in 2004.
The superiority of Lunar has been understood and recognized throughout and the company
has been honoured by quite a number of awards in recognition to its performance.
State consumer protection Award for manufacturing consumer products.
Vanijya Ratna Award by Southern vanijya Federation, Trivandrum.
Business Man of Kerala Award by Indian Junior Chamber, Zone-20.
Best entrepreneur Award by Kerala State small Industries Association
Vijayasree Award by Kerala Vyapari Vyavasayi Ekopana Samiti.
Best Entrepreneur Award by Indian Jacees,Southern Zone.
QUALITY OBJECTIVE
Acquiring an export share of 43% by 2008.
Setup and establish a Laboratory for product testing within six months.
Increase the turnover by 20% every year.
Attend all customers complaints within 2 working days.
Collect suggestions from employees and utilize for improvement.
Introduce at least one new product in 2 years.
PRODUCT PROFILE
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Chart No: 1. product of Lunar
I. Lunar Hawai Chapels
a) Lunars Delux;- This is blue and beige in colour for gents ,ladies and
kids.It is light in weight and soft and having antiskid bottom with patented
two way thread (TWT) sole.This will get in giant sizes also.
b) Lunars cushion:-This is blue and green in colour for gents and ladies.
c) Lunar Dimple:- This is slippers with high heel and having two way thread
bottom which is speacially designed for ladies.
d) Lunar safari :- This is beging with lines in colour.It has thick sole and
TWT protection against slippery surface.
e) Lunars Activa:-The available colours are black,brown,and grey.This is high
quality chapel with two wide straps for special protection against splashing.
f) Lunars Hitech:-The available colours are blue and beige for ladies and
gents only.This item differs from the Delux model in its strap.This chapel has
a thick strap and is made of high quality material.
Lunar Products
Lunar foot wears Lunar Umbrella Lunar School Bags Tourism
Ventures
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g) Lunars Zoom:-Available colours are orange,blue,beige,full black for ladies
and gents only.
Other popular brands from Lunar ,which is good in quality and preferred by millions of
customers are the following
a) Walk Mate
b) AerolexPVC
c) FlighterPVC
d) Lunars Lite EVA
e) Feather Touch
Special features of Lunars Hawai Chapels:
The two way thread for greater grip, a potential design that has won great
acclaim and appreciation.
Surpasses ISI standards.
Strap is fasted firmly , so it does not slip even under extreme circumstances.
Comes in choice of colours-blue.black,violet,beige,green,and grey.
Available in a sizes ranging from 1 to 12 sizes.11 and 12 being special sizes
exclusively made by Lunars.
50% of the production of the group is sold outside Kerala including Gulf countries and
European countries.In India,Lunars hawai chapel is available in the states of
Tamilnadu,Karnataka,Gujarat,Maharashtra,Andrapradesh,Pondichery,Goa etc. other
than Kerala.
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II. Lunars Umbrella
The material used for making umbrella is mainly imported from Taiwan.The
company using high quality material for making umbrella.Lunars umbrella is mainly
solld within kerala.The company making different varieties and sizes of umbrellas.The
following are different varieties of Lunars umbrella:
Childrens Umbrella
Two fold Umbrella (manual and automatic)
Cup open Umbrella
Three fold umbrella
III. Lunar School Bags
These are newly introduced into the industry. Fine and cool style of bags for the
junior and senior students is available in the market now. Lunars school bags are sold with
in kerala. The company using high quality material and method of production to compete
with present market condition.
IV. Tourism
Green berg holiday resort and Green berg resource facility centre is a venture of the
company the tourism sector. Located at Nadukani, Kulamavu, Idukki (Dis), Kerala.
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COMPETITORS
Competitors of Lunar Hawai chapels:
Paragon
VKC
Eva Hawai
Senor chapels
Rubco
Competitors of lunar umbrellas:
Poppy umbrella
Johns umbrella
Competitors of Lunar bags:
Scoo Bee Day Bags
Peacock Bags
Paragon Bags
Boogy Boogy Bags
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ORGANISATION STRUCTUR
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ManagingDirector
General Manager
Asst. Gen.Manager
FinanceManager
MarketingManager
HRManager
ProductionManager
PurchaseManager
Fin. & Acct.Officer
Acct.Off. 1
Acct.Off. 2
JuniorAcct.Off
JuniorAcct.Off.
Clerk Clerk
Marketi
ng Off.
Sales Off.
Asst. HRManager
Maintanance manager
WorksManager
Supervisor
Mechanics,Plumbers ,Electricians
ExecutiveOfficer
Officer
JuniorOfficer
Senior Asst.Officer
OfficeAssistant
Clerk
Director 1 Director 2
Board of Director
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OVERALL FUNCTIONING
There will be quarterly meetings of the director board members. The board of
directors in their meetings takes corporate level policies and procedures. In case of any
emergency situation there will be special meetings. The board of directors appoints the
managing director to be in overall charge of administration of the company and office,
assisted by various officers at the office and factory. Any strategic decision involving policy
matters will be taken only with the concurrence of the Managing Director. He will be
assisted by the General Manager, Asst. General Manager, Finance Manager, Marketing
Manager and Production manager.
The Managing Director conducts weekly meeting with each department head, G.M.
and A.G.M. Functional level decisions are taken at these meetings. In these meetings each
department head will give report of the previous week's work. These reports will help to
asses the performance of the previous week.
The General Manager is in over all charge of the office with particular charge of matters
connected with Registrar of Companies, Banks, District Industries Center, Sales Tax,
Income Tax and Company meetings. He will be assisted by assistant General Manager and
other officers and staff in the proper running of the organization. The Assistant GeneralManager will assist the Managing Director and the G.M. in successfully carrying out their
work with special reference to P.F., E.S.I., Rubber Board, Labour Office, Insurance
Companies, Motor Vehicles and Motor Vehicle Department, Tax and Vehicle Finance,
Training of Personnel, Municipal and Panchayath Licences P & T etc.
Planning has a primacy over other management functions and is a pervasive element in
organizations. By planning, managers minimize uncertainty and risk. Planning does not deal
with future decisions, but with the futurity of present decisions.
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Top level managers of the company are generally concerned with planning involving
activities that will take place six months and above. Lower level managers are more
concerned with planning activities for the day, week or the month.
The supervisors plan for the work activities for their people for the day. They are not
responsible for producing sales levels and ordering materials to produce products in the
future. Top-level managers generally spend more time on planning. They are more
concerned with establishing objectives and developing plans to meet those objectives.
Lower level managers are more involved in executing these plans.
Decision Making:
Decision Making is an essential part of the management. A manager's life is filled
with a constant series of decisions. The managers make hundreds of decisions consciously
and subconsciously every day. Decision-making is the key part of a manager's activities. It
permeates through all managerial functions such as planning, organization, direction and
control.
In planning it is through the process of decision making that objectives and polices
are laid down and the manager decides many things such as what to produce, what to sell,
where, when how and so on. In organization decision-making relates to the choice of
structure, nature and for of organization, division of work, delegation of authority, fixing of
responsibility and the like.
In directing, decision- making relates to determining the course deciding the orders
and instructions to be given, providing dynamic leadership and similar other issues. In
controlling the decisions relate to the laying down of performance standards, strategic
control points, procedure for control and so on.
The method of decision making at various levels in Lunar is directly linked to the
process of the level of Board of Directors and Managing Director. Timely and proper
decisions are making the activities of the company vibrant.
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Authority:
Authority of a superi or depends on the willingness of his subordinates to accept it. The
authority becomes some what meaningless unless those affected accept it and respond to it.
If the subordinates do not accept authority, it is not real and does not exist Here in the
company the authority is accepted.
Responsibility:
When a superior assigns some work to a subordinate, it becomes his responsibility to
perform it. Responsibility is the obligation of a person to perform certain duties.
Responsibility is his accountability to his superiors. The subordinate must have been
delegated enough authority to undertake all the duties which have been assigned to him and
for which he has accepted responsibility. There is laxity at few places as far as responsibility
is concerned. This is a tendency in part of persons at superior level. This is due to lack of
determination to exert authority. This has to be checked.
Managing Director
MD is the Chief Executive Officer of the Organization.
His responsibilities are:
Document Control: to approve policy, manual & Procedures.
Management review: To Chair Management review meetings.
Resource Management: To Provide necessary resources for the smooth operation of the
organization.
Customer Focus: To review customer requirements and promote the customer
awareness.
Purchase: To approve purchase of raw materials, chemicals, packing materials,
Engineering, and capital goods Import of materials.
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Production Provision: - To review resource requirement for production and production
plain approval.
Continual improvement: To decide area for improvement and take necessary action for
improvement on the basis of data analysis.
Control of Non - Conforming Products. To review abnormal product non-conformities
and action plan for improvement.
Corrective of Preventive Action: To review Customer's feedback, to review the non
conformity so reported and to decide corrective / preventive action.
Marketing:- To approve price list , export orders, marketing stategy, promotional
activity.
Administration: - To approve policies, recruitment of top officials etc.
Performance appraisal of senior staff.
Leave Sanctioning of senior staff.
Payment approval
Approval of all policy matters.
General Manager
Overall responsibility of the administrative activities.
Legal matter monitoring
Monitoring of statutory or regulatory requirements.
Liaison with Govt. / Statutory bodies.
Labour issues monitoring.
Sales tax and related matters.
Advice MD on all policy matters.
Assistant General Manager
Assistant General Manager assists the Managing Director and the Genaral Manager
successfully carrying out with regard to Rubber board labour office,insurance matters ,
training of personnel , municipal,and panchayat licences.
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DIFFERENT DEPARTMENTS
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Recruitment Sources
Recruitment
Internal Sources External Sources
Transfer and promotions Press advertisement
Educational institution
Placement Agencies
The main source of recruitment in Lunar Rubber Pvt. Ltd. is external sources. The Company
has eight branches. The recruitment and selection of employees is done by each branches
separately and final approval is from the head office.
No special qualification regarding education is considered for factory workers. The
only factor considered is the ability and willingness of person to work hard. The minimum
age for workers is fixed as 18 years but no maximum age limit is fixed.
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SELECTION PROCESS
Preliminary
Interview
Application Form
Selection Test
Selection Interview
Physical
Examination
Reference Checks
Final Approval
Employment
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SELECTION
Selection is the process of choosing the most suitable persons out of the entire applicant.
The purpose of selection is to pick up the right person for right job and at right time and at
right place. Selection is an important function. No organization can achieve its goal without
selecting the right people.
In Lunar Rubbers Pvt.Ltd, sometimes selection is done through an informal interview. There
is no medical examination for fitness before selection. In the selection process attitude of
the person is considered. Sometimes Lunar Rubbers Pvt. Ltd. select people through campus
interviews.
Training and Development:
Employee training is distinct from management development. Training is a short term
process, utilizing a systematic and organized procedure by which non managerial personnel
learn technical knowledge and skills for a definite purpose. On the other hand development
is a long term educational process utilizing a systematic and organized procedure by which
managerial personnel learn conceptual theoretical knowledge for general purpose.
In Lunar Rubbers Pvt. Ltd. Training is given n to almost all workers. The method of training
is on the job training i.e. learning by doing. Training period ranges from 2 weeks to 2 years
Workers will get stipend during the training they get.
Working Time:-
Working time for office staff is 9.30 am to 6 pm. There are 3 shifts for factory workers. The
workers must work 8 hours / day. First shift is from 8.30 am to 5.30 pm, Second shift starts
from 5.30 pm to 1.30 am & Third shifts are from 1.30 am to 8.30am.
The working time will be rotated for each worker, so that every one should have to work in
all these three shifts. There are 25 working days in a month.
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Compensation:
Employee compensation is a vital part of human resource management. Wages salaries andother form of employee compensation constitute a very large component of operating cost"
one of the biggest factors affecting industrial relation is the salary or wage the compensation
an employee receives for a fair days work".
1. Basic compensation - Basic pay
2. Supplementary compensation - incentives and variable payments.
Method of wage Payment:
In Lunar there are two methods of wage payment.
1. Time wage system: - The time wage system is applicable in case of workers.
2. Piece wage system: - Under the system workers are paid according to the amount
of work done or the number of units completed
Incentives:-
There is a standard of performance beyond which workers will get special rewards.
Leave: -One earned leave for 20 days and one ESI leaves for 15 days are given to all the
employees. Daily wage is the basis of wage calculation but wages are paid monthly
Advance of wages given to the needy workers on Saturdays. Supervisors get monthly wages
on the basis of monthly wage system
Bonus: -
Bonus is given once in a year. It is in December
Employee Grievance:-
In Lunar Rubber Pvt. Ltd, the problem of workers should be solved by the Managing
Director. Workers can tell their grievances directly to Managing Director and he will take
corrective steps to solve it.
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Personnel Records: -
The company has the Personnel records for their references.
Seniority List: .Management of Lunar Rubbers Pvt.Ltd. Prepares the seniority list of theemployees.
Fringe Benefits:-
Medical facilities: - Workers enjoy ESI hospitals facility. There are ESI hospitals at
Thodupuzha & Perumbavoor. Those workers who do not have ESI facility get Rs. 1000/- for
medical allowances. There is a First Aid Box (FAB) in the factory.
Free Chapels and Uniforms: - Workers are given 3 pairs of chappels and uniforms in a
year. Reduction in price is also given, when they buy lunar chappels.
Recreation Facility:- Company conducts KUDUMBA MELA" (Family gathering) during
the time of festivals such as Onam, Christmas etc.,
Social Security Schemes :- Social security schemes are P.F., Gratuity and employee state
insurance (ESI).Gratuity is given to all the employees who complete 5 years of service,
including the training period
Loans:- Company provides loan facilities to the workers to meet their urgent
Allowance & other benefits:
Night shift allowance is given to workers. Overtime wage is the twice of normal wage
Labour welfare:
The workers enjoy the following facilities:
a) Facility for washing, storing & drying their clothes at the company premises.
b) Restrooms are provided to the workers.
c) Facility for drinking water.
d) Facility for making food but there is no canteen facility in the factory.
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Placement:- Most suitable Person from selection will get placement in the organization.
Induction:-Lunar Rubbers Pvt. Ltd conducts an Orientation Programme for the newcomer
employees in the organization
Probation:- The Probationary period of workers and staff in Lunar Rubbers Pvt. Ltd is up to 6
months.
Promotion:- On the basis of employee efficiency, performance, commitment or loyalty the
management will give job Promotion to the employees
Personality Development Programme:- Lunar Rubbers Pvt. Ltd, arranges a Personality
Development Programme for the Company Employees once in a year. These helps to the
employees to behave properly in the Company and Society.
Constituents of Salary:
The following are the constituents of Salary.
* Basic Pay * DA * Telephone Allowance
*HRA *TA
Performance appraisal:Performance appraisal is measuring the relative worth ness of a
person, who engaged in a job. Based on performance appraisal, Lunar Rubbers Pvt. Ltd provides
Best Executive Award for the Employees.
Trade Union:-There are two trade unions on Lunar Rubbers Pvt. Ltd AITUC (All India
Trade Union Congress) and CITU (Central Indian Trade Union). Salary hikes are discussed
in the labor office in the presence of union leaders, Managing Director, two persons from
Management and labor officer.
Duties and responsibilities of the HR manageris to ensure proper functioning of
the above process.
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PURCHASE DEPARTMENT
Purchase department plays a very important role in an organization. Its function is to
purchase materials, machines and tools at the most favourable terms consistent with
maintaining the standard quality, purchase of materials at the right time in adequate quantity
and quality and at the right price is very important.
In Lunar Rubbers Pvt. Ltd., purchasing section is connected with production department.
The purchase manager is in the charge of the purchase of the purchase department. Purchase
officers and storekeepers are there to assist the purchase manager. They will assist he
requirement of chemicals, verify purchase order, assess plan and purchase item in
consultation with the production manager.
When the level of raw materials reach the reorder level, purchase manager prepares a
purchase requisition for raw materials and sent it to the chief executive (M.D.) for the
sanction. Once it is sanctioned the order is placed. Purchase manager is one who decides
from where the raw materials have to be purchased. There is an easy access to raw materials
from local sources, e especially natural rubber which is abundantly available from the
nearby rubber estates.
When raw materials arrive the quality controller checks its quality and quantity and verify it.
He will report it to the concerned officer and the bill will be sanctioned. The raw materials
are given to the stores.
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STRUCTURE OF PURCHASE DEPARTMENT
Purchase Manager
Executive Officer
Officer
Junior Officer
Senior Assistant Officer
Office Assistant
Clerk
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Functions of Purchase Department
Receiving purchase requisition
Locating the source of supply
Choosing a supplier
Preparing the purchase order
Receiving, checking and inspecting materials
Passing of bills for payments
Major raw materials purchased in Lunar Rubbers Pvt.Ltd
a) Rubber: The most important raw material used in production is Rubber.Two varieties of
rubber are used, natural rubber and synthetic rubber.
b) Clay: It is used as filter, it is very cheap and easily available in kerala, English India Ltd.
Provides clay for Lunar Rubbers.
c) Pigments and colors: They are used for giving the pre-determined color of the footwear.
d) Resins and Tackifiers: Resins improve the processing capability.
e) Packing materials: The company purchases packing materials from Ernakulam and
Trivandrum. The main packing materials are
Sticker
Plastic cover
Small cartoon
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DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS :
The main duty and responsibility of the department head is to ensure the proper supply of
raw material used in production. He has the responsibility of reporting to M.D. regarding the
purchase of materials. He also has the responsibility of raising purchase indents and receipts
of materials. Issue of materials and maintenance of all relevant records about these are also
include in his duties.
Duties and Responsibilities of purchase manager are:
Over all responsibility of the purchase activity
Vendor Control
Vendor development
Price monitoring
Timely supply arrangement of materials.
Purchase bill verification and recommending Payment.
Maintenance and control of the stock register.
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FINANCE DEPARTMENT
Finance is regarded as the lifeblood of business & enterprises. In modern money
oriented company, Finance is one of the basis foundations of all kinds of economic
activities. It is the master key, which provides access to all the sources for being employedin manufacturing of merchandising activities.
Efficient management of every business enterprise is closely linked with efficient
management of its finance. Business finance can broadly be defined as the activity
concerned with planning, raising, controlling& administrating of the funds uses in the
business.
The finance department is under the control of finance manager. The finance
Manager prepares the budget and he allocates the funds. Other accountants are helping him
in this matter.
In Lunar Rubbers all accounts are computerized and they follow double entry
system of book keeping.
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STRUCTURE OF FINANCE DEPARTMENT
Finance Manager
Accounts Officer IIAccounts Officer I
Junior Accounts Officer I Junior Accounts Officer II
Clerk Clerk
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FUNCTIONING OF FINANCE DEPARTMENT
The major function of finance department in Lunars is budgeting and raising funds
internally and from financial institutions and utilization of funds monitoring in application.
Maintenance of liquid assets and maximization of the profitability of the firm are also the
functions of finance department.
The basic function of financial management are the maintenance of liquid Assets
and maximization of the profitability of the firm. Maintenance of liquid assets means that
the firm has adequate cash in hand to meet its obligation at all times
.
The organization gives credit to customers.We know in recent years consumer credit isplaying an important role in sales but the realization of the credit is the problem faced by the
company. Usually Company allows credit to their distributors. The maximum credit is 30
days if the distributor purchases the goods for ready cash then the company allow 2 % cash
discount.
In Lunar the financial manager prepares the budget and allocates the funds. Other
junior accounts assist him in this matter. The accounts officer-1 is in overall charge of
accounts. Trial balance, balance sheet Audit of Accounts, Bank Assistance, Payment to
credit and collection from Sundry debtors, watching payment of dues and all other matters
connected with it. He attends to all matters connected with income tax including collection
of form and other material for filing returns, super check on classification of payments.
Receipts keeping,maintenance of cash book ledger etc. are under his control. He is assisted
by the junior accountants.
The accounts officer II is in charge of all matters connected with sales tax accounting
of purchase and sales bills, scrutiny and passing of vouchers for payment, preparation of
journal accounts, party accounts, branch accounts, bank returns declaration form - 18,
collection of cheques, direction of stock register entries. He also assists accounts officer I in
the preparation and finalization of accounts. The junior officer and accountant assist the
accounts officer II.
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The Junior accounts officer attend to all the accounts of small units returns and
returns of company matters, verification, electricity bills matters connected with SIDCO,
computers entry of accounts, printout, cashbook, ledger, bank accounts etc. Preparation of
monthly sales tax return, stock statements, bank returns etc are also the work of junior
accounts officers .Their work is under the supervision of the accounts officers, the company
giving P.P. of 12% to the workers as mentioned in the Act.
DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS
Finance Manager
Head the Finance of Accounts department.
Advice MD on Finance Matters and Accounts Matters.
Recommend / evaluate cost control measures
Verifying all Purchase bills.
Verifying all cheque payments.
Verifying all cash payments.
Watching all expenses.
Preparation of final accounts and conducting audits.
Accounts Manager -1
Overall responsibility of accounts.
Verification of Journal bill and vouchers.
Payment to Parties - verification of payment request, writing of cheques and
preparing vouchers.
Import related matters.
Export related .matters like preparation of documents, house stuffing, negotiation
with bank etc.
ROC related matters like filling of various forms, return etc.,
Attending company law related matters like preparation statutory register.
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Preparation of monthly trial balance.
Finalization of closing entries.
Cash/ cheque control
Preparation of cash flows.
Income tax matters.
Accounts Manager2
Data entry of raw material purchase.
Verification of sales invoices
Preparation of branch transfer delivery notes and supporting
documents etc., All work related to provident fund.
Filling of returns and correspondence related to ESI.
All work relating to sales TAX
Verification of accounts related to Coimbatore branch.
Assistance in maintenance of stock records related to umbrella.
Verification of C forms, form 25, form 18 etc, issues to suppliers.
Assistance in connection with finalization of accounts. Verification of vehicle repair bills etc.
All matters regarding KGST andCST.
Accounts Assistant
Preparation of Cash Vouchers
General Vouchers
Data Entry Operations.
Bill verification.
Correspondence
File maintenance.
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PRODUCTION DEPARTMENT
Production is the creation of goods and services. It is concerned with terms
forming the inputs in the form of raw material, labour, machinery, men and money in to
output, i.e., goods and services with the help of certain production process. Production
function is the most important function in an organization around which other activities of
an enterprise via. Marketing, financing, purchasing and personal etc. revolve.
In production department chief is the production manager under him there are works
mangers and below them the supervisors. On getting the projected market demand for the
coming month from the marketing department, the production manager assisted by the
works manager takes steps and makes arrangements for production. This helps to maintainthe quality of the production. There is also a quality control and inspection wing. All the
functions in the production departments are checked by the production manager at in regular
intervals.
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STRUCTURE OF PRODUCTION DEPARTMENT
Production Manager
Work Manager MaintenanceManager
Supervisor Supervisor
Worker Mechanic Plumber Electrician
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FUNCTIONING OF PRODUCTION DEPARTMENT
1.Lunar Sheets Unit 12.Generator Room
2. Office 13.Inventory
3. Finished strap Unit 14.Maintenence Department
4. Viking Sheet Press 15.Engineering Room
5. Viking Kneader
6. Neo Mixing Unit
7. Strap Manufacturing Unit
8. Sheet Pressing Room
9. Generator Room
10. Lunar Kneader
11. Raw materials inventory
1 2
3 4 5 6 7 8 9 10 11
13
14 1512
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PRODUCTS OF LUNAR PVT.LTD :
I ) Lunar Hawai chappel:
Lunar's Deluxe
Lunar's Cushion
Lunar's Dimple
Lunar's Safari Activa
Walk mate
Aerolex - PVC
Flighter- PVC
Lunar's LiteEVA
Leather Touch
II) Lunar Umbrella
Childrens Umbrella
Two fold Umbrella (manual and automatic)
Cup open Umbrella
Three fold umbrella
III) Lunar School Bags
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QUALITY CONTROL
There is a Quality Control and inspection wing. They check the
product while passing through various manufacturing process and ensure the
quality of the product. Every morning there is a meeting between the plant manager and the works
manager. In which general appraisal will be made of the last days work.
RAW MATERIALS USED
a) Rubber: The most important raw material used in production is Rubber. Two verities of
rubber are used. Natural rubber and synthetic rubber.
b) Clay: It is used as filler, it is very cheap and easily available in Kerala, English India
Clay Ltd provides the clay for Lunar Rubbers.
c) Pigments and Colours: - They are used for giving the pre-determined color of the
footwear.
d) Resins and Tackifiers: - Resins improve the processing capability.
THE VARIOUS TYPES OF MACHINERY USED
1) Mixing machine
These machines are of two types:
Kneader
Open mixing mill
Both are used for mixing the various raw materials. But the capacity and speed of kneader is
higher than the other and is automatically controlled.
2) Hydraulic Press
This is used for moulding the hawai sheets, sheets are inserted in to this press and the
required design is moulded on both sides of the sheet.
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3) Moulds
Hawai sold mould is used for moulding the hawai sheets strap, 8 pairs of straps can be
moulded at a time.
4) Boiler
It is used for producing the required stream.
5) Cutting Press
It is used to cut the moulded Hawaii sheet into required size.
6) Drilling machine
It is used to make the holes in Hawaii soles after cutting into the required size.
PRODUCTION PROCESS OF LUNAR HAWAI CHAPPELS
Raw materials converted in to footwear involve several processes. Natural Rubber is
rolled in to the roller of mixing mill. After sometime, clay is added to the processed rubber.
Then other chemicals are also added. Then it is kept for 24 hours and is sheeted. Then we
get sheets, which are used on the lower blue part of the sole. The upper white part is also
made in the form of sheets. The white sheet it put above the blue sheet. They will stick
together. These are weighed. The sheet of required size and weight are moulded in the
hydraulic press or in the Hawaii sole mould. After moulding the sheets are kept for 14 to 20
days.
Then the sheets are cut into soles of required size in the cutting press. Then drilling
machine will make 3 holes in the sole. After some time the straps are moulded in the strap
press. Straps are inserted into the sole and are labeled and packed. Then lunar Hawaii chapel
is ready for use.
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.PRODUCTION PROCESS CHART-CHAPPELS
Raw Materials
Weighing
Mixing
Mill
kneeader
Ageing
of 24
hours
Sheeting Molding Visual
examination
and lab
analysis
PostCuringAgeing of 15daysSoleCutting
AssemblingPackingDispatch
Sole
Cutting
Sorting
Defectives
Trimming
Raw
Materials
Weighing
Mixing
Mill
kneeader
Ageing
for 24
hours
Sheeting Molding Visual
examination
and lab
testing
I. Lower Blue part
II.Upper White Part
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Safety Measures
There is an emergency reverse stop for the safety of the workers. In the emergency
situation just pull the stop bar, the machine slowly rolls to backward. This is a new
technology developed by the maintenance department in the Lunar Factory. Company
provides glows & Mask to the workers for their safety. There is a fire extinguisher and also
a first aid box in the factory.
Inventory Management
Every enterprise needs inventory for smooth running of its activities. It serves as a
link between production and distribution processes. There is, generally, a time-lag between
the recognition of a need and its fulfillment. The greater the time-lag, the higher the
requirements for inventory. The unforeseen fluctuations in demand and supply of goods also
necessitate the need for inventory. It also provide for a cushion for future price fluctuations.
Re-ordering Level
When the quantity of materials reaches at a certain figure then fresh order is sent to get
materials again. The order is sent before the materials reach minimum stock level. Re-
ordering level is fixed between minimum level and maximum level. The rate of
consumption, number of days required replenishing the stocks, and maximum quantity of
materials required on any day are taken in to account while fixing re-order level.
Production department has mainly 3 sections Purchase, Production, Stores.
On the basis of the re-order level duly authorized purchase indent is given to purchase
section based on purchasing materials. The purchase orders are prepared by purchase section
based on the requirement evident from and unlimited through purchase indent. The purchase
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order includes the following such as purchase requisition, number of material description,
quantity, rate, total cost, delivery date etc.
The purchase section maintains the following records.
a) Vendor evaluation
The purchase section maintaining and up-dating the vendor evaluation records
b) Purchase order format
The purchasing section keeps the purchase order format for the further reference
c) Vendor history registers
They also keeps with the purchasing sectiond) List of approved sub Contracts
To know about the approval of the sub contracts the list of the contracts keeps with the
purchasing section.
Stores control sections:
The purchase department as per purchase indents produces materials; it is received
along with documents like delivery notes, bills of entry, and invoice which ever is
applicable.Raw material and other items transferred to quality assurance section for
inspecting the required quality and the status is indicated in the Goods received note. The
accepted items are transferred to the receiving stores and sent back to the supplier. For the
purpose of efficient inventory management following records are prepared.
1) Goods Received Note (CRN)
2) Bin Card
3) Stock Register
4) Consumption Report
5) Issuing Note
6) Follow-up-Note
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Quality Checking Machine
Lunar Rubbers Pvt. Ltd Provides more importance to the quality of products. For checking
or measuring the quality they use a machine called Rheonetor.
DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS:
Production manager:
Ensure that Policy of Objectives (relevant to the function) are communicated
and understood, also to ensure the processes of the QMS are established and
maintained. Reporting to Management on Performance of this system and any need for
improvement.
Promoting awareness of Customer requirements throughout the organization.
Liaise with external agencies including certifying body on matters related to
this QMS.
Plan and organize internal and external audits and follow up on
corrective / preventive actions resulting from the audits.
Plan and organize management review meeting and prepare minutes
of the meeting.
Overall responsibility of the Plant.
Quantity of Quality of Production
Material requirement intimation.
Planning of preventive maintenance.
Efficient operation of the plant.
Discussing of giving necessary instructions to subordinates.
Technical problem solving.
Optimizing the utility consumption.
Labour Control / relations.
Appraisal of Factory staff.
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Quality system implementation, monitoring and improvement.
Controlling production and maintenance records.
Training and discipline of the factory Personnel.
Timely Manufacturing of products.
Reporting to MD regarding factory functioning.
Works Manager
Overall responsibility of the cutting, assembling and Packing unit:
Arranging products for dispatch in time
Arranging packing materials.
Co-ordinating with manufacturing units
Reporting to MD regarding the Product complaints.
Performance monitoring of the cutting unit.
Co-ordination with out sourcing unit.
Maintenance Manager
Preventive and break down maintenance.
Beginning store control.
Intimating engineering requirements to PM.
Verification of incoming engineering materials.
Break down analysis
Supervisor
Supervise the activities in the shift.
Job allocation to workers and Manpower Control in the shift.
Quality and Quantity of Production.
House keeping
Shift documentation.
Ensure the operational instructions are implemented and followed.
Responsible for the loading and unloading activities.
Proper arranging and identification of raw materials and chemicals.
Control of loading work force.
Proper arranging of ready for despatch material.
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MARKETING DEPARTMENT
The American Marketing association (A.M.A) Defines Marketing as the Performance of
the business activities that direct the flow of goods and services from the producer to the
consumer or to the user.
According to Philip Kotler Human activity directed at satisfying needs and wants through
exchange process. The process of exchange involve sellers, searching buyers, identifying
their wants and needs, making relevant product, promoting and strong ,transporting and
distributing them and negotiating and so on
It represents the important functional area of business, for the flow of good and services
from the product to the consumer. It helps to the plan and develops the product on the basis
of known consumer demands.
The Lunars Rubbers Pvt. Ltd has well developed Marketing Department and it is headed by
the marketing manager of the company
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STRUCTURE OF MARKETING DEPARTMENT
The Marketing Department conducts various meeting to take the decisions regarding the
various activities. The Marketing Manager presents a report of the previous months
activities. These meetings and reports are helpful to study, analyze and control the problems
being faced by the product in the market. They will also assess the target fixed for the sales
and compare it with the achievements made. This department conducts studies to explore
new markets and to expand the existing market. The head of the department in consultation
with the managing director takes decision in connection with sales promotion activities,
advertisement etc.,
Regional sales manager conducts meeting with this junior sales manager. In this meeting the
regional sales manager gets a clean picture of the present position.
Marketing Manager is one who decides the Marketing Strategies for every major decision
which affecting Marketing. Marketing Manager takes decision, but the Chief Executive
(MD) takes final decision
Marketing Manager
Marketing Officer
Sales officer
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Marketing Mix
The combination of marketing methods and programs are known as marketing mix.
There are four elements into marketing mix.
1. Product mix
2. Price mix
3. Promotion mix
4. Place mix.
(1). The product portfolio of Lunar Rubbers includes
According to William J Stanton "A product line is a group of products intended for
essentially similar uses and possessing reasonable similar characteristics".
The product mix is the full list of all products offered for sales by a company
In Lunar
Hawai Chappels
Umbrella
School bags
Company manufactures varieties of Hawai Chappels.
1. PVC Products
a) Flighter
b) Aerolux
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2. EVC Products
a) Elter
b)Lunar Lite
3. Lunars Delux
4.Lunars Cushion
5.Lunar Dimple
6.Lunar Safari
7.Lunars Activa
8.Lunars Hitech
9.Lunars zoom
.UMBRELLA
Lunar Rubber Pvt. Ltd. has entered into the umbrella market in the year 1999. There are 45
verities of umbrella differing in design (i.e. two fold and 3 fold) and in color. Almost all the
parts and material required for the umbrella are imported from the countries like Taiwan,
Saudi Arabia. These parts are assembled in various assembly units.
;
Lunar introduced one more variety of umbrellas in the name Godfather. The peculiarity of
this umbrella is that it is a cane framed lightweight umbrella, which can capture the full
attention of the umbrella market.
Varieties of umbrella.
Children Umbrella
Ladies Umbrella
Cup open Umbrella
Gents Umbrella
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Advertising:
It is the major promotion tool. The American marketing Association defines advertising as
any paid form of non-personal presentation and promotion of ideas, goods and services by
an identified sponsor. It is a paid form of communication.
Lunar Rubbers Pvt. Ltd. has gone for a massive advertising campaign. Media of advertising
are: T v, radio, boards, stickers, banner, cover and outdoor advertisement
Publicity:
The American marketing Association defines publicity as any form of non-paidcommercially significant news or editorial comment about idea. Products or institutions.
Lunar mainly concentrating print media publicity.
Dealers Promotion activities:
Complements are provided to dealer as a tool for dealer promotion. Also they
conduct an annual meeting for dealers. They are also promoting customer-promotion
activities.
(4). Place mix of Lunar Rubbers.:
Distribution channels have a vital role especially in the distribution of consumer
goods. The sales of the company are done with the help of privately owned distributors. The
distributors and wholesalers supply the products to various retailers and finally reach the
consumer.
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MARKETING ACTIVITIES:
The various Marketing Activities are branding, packing, pricing & distribution.
1. Branding:
It is an important aspect of product planning. It involves the assignment of a
brand name to the product being offered to the customer.
Lunar Rubbers Pvt. Ltd, enjoy a high degree of brand preference among the
consumers. It is said to have high brand equity. High brand equity provides a number
of competitive advantages to the company. The company reduced marketing cost
because of high-level consumer brand awareness and loyalty. The company has more
trade leverage on bargaining with distributors and retailers. The main market leaders
of Hawaii chappals in Kerala are Paragon and Lunar.
Popular brands of Hawaii chapels available in Kerala are Lunar, Paragon, Eva,
Rubco, etc. These brands vary in the amount of power and value they have in the
market place. The popular brands of umbrella available are Lunar, Poppy, John's etc.
The main markets of the Lunar chappals are Kerala, Tamilnadu, Karnataka and
Maharashtra.
2. Packing & Labeling
Once the decision taken on the brand, we have to consider the design and
makeup of the packages and the labeling of the packages.
Packing is the activity of designing and producing the container or wrapper of
a product. Label is a part of the product. It gives verbal information about the product
and the seller.
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Packing material used for Packing of hawai chapels are
Coloured Box
Polythene Bag .
Gray Board Box
Polythene Bag Printed
Curtains are reusable Polythene Bag printed with advertisements are used for
packing the hawai chapels and Umbrella manufactured by Lunar Rubber's Pvt. Ltd.,
4. Pricing: -
In setting the price of the product, the company should follow the procedures
given below.
1) The company should carefully establish it's marketing objectives such as survival,
maximum current profit and maximum market skimming or product quality
leadership.
2) The Company determines the demand schedule, which shows the probable quality
purchase per period at alternative price levels. The more inelastic the demand the
higher the company can set its price.
3) The Company establishes how its cost varies at different output levels and with
different level of accumulated production experience
.
4) The company examines competitive price as a basis for positioning its own price.
5) The company selects one of the following pricing methods
Markup pricing, target return pricing, perceived value pricing of sealed bid pricing.
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6) The Company selects its final price expressing it in the most effective
psychological way, co-ordinating it with the other marketing mix elements
DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS:
Marketing Manager:
Over all responsibility of the marketing activities.
Market development
Promotional activities.
Distributor Control
Preparation of sales plan
Sales monitoring
Route Planning
Control of sales office
Cash collection / monitoring of Collection of dues.
Marketing analysis.
Collect of market data.
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SOCIAL CONTRIBUTION OF THE COMPANY
The company provides slippers,school bags, and umbrella to the orphanagesand
charitable institutions free of cost. The company provides funds for philanthropic
purpose,that is it provide funds to aids patient and provides more job opportunities to
poor people.The company also establishing traffic signals and provide houses to poor
people.
ENVIRONMENTAL CONTRIBUTION OF THE COMPANY
One of the special feature of the Lunar Rubbers Pvt.Ltd is that it does not pollute the
environment.Waste materials produced by the company send to Delhi at regular
times.They recycled the waste material and used it for another purpose.Recycled
material can also reuse.
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ANALYSIS
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SWOT ANALYSIS
Strength: -
Second largest manufactures of Hawai Chappals in Kerala.
Since Lunar's products are manufactured as per the strict quality guidelines,
they are able to make high quality products.
Easy availability of raw materials helps the company to manufacture products
at lower prices.
Company has a policy of continuous development and innovation in products,
which enables it to maintain high market share (43% in Kerala market).
Frequent meeting between the owners and employees helps to build a good
employer - employee relationship.
An ISO 9001-2000 Certified Company.
Weakness: -
No special educational qualification is considered during recruitment of
factory workers.
Price variation in the rubber market
Less advertisement of Lunar Umbrellas
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Opportunity:
Globalization of the economy has helped the company to overcome
operational restrictions and to make strategic alliance
Scope for mobilizing funds widened
Since, the products are use in all walks of life the company can target all types
of income group.
The Company can extent the Market to more foreign countries.
Since the company has introduced different varieties of products, it help the
company to enlarge its market share..
Threats:
Increasing competition due to liberalization of the economy.
Fast Changing technology
The young generation exhibits less interest in buying lunar foot wears.
Well designed products from the other companies.
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CONCLUSION
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PARTB
RESEARCH STUDY
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INTRODUCTION
Apart from the organisation study conducted, a problem study was also conducted.
The subject for the study was selected after discussions with the companys marketing
department and with the project guide. The need for studying the competition the
company is facing in the market was revealed from those discussions and decided to
conduct the study on the market acceptability of the company in comparison with its
competitors. The subject for the study is The market acceptability of Lunars
footwears compared with Paragon and VKC.
As the main competitors of the company are Paragon and VKC, the study was
conducted on the basis of the comparison with these two competitors. The market
acceptability of the company was the major area under the study. The study was
conducted on the basis of certain parameters like purchase preference, customer
demand, advertisement based demand, finishing and quality, efficiency in delivery of
goods etc.
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PURPOSE OF STUDY
The main purpose of the study is to understand the market acceptability of the
company in the market. As the company is facing competition from other companies
the study was mainly conducted to get an over view about its market acceptability in
comparison with its main competitors- Paragon & VKC. The study was intended to
find the areas where the company is lagging behind so that effective measures can be
adopted to over come these draw backs.
SIGNIFICANCE OF THE STUDY
The study was conducted at areas where the company is not in a good position. So the
study was also intended to find the reasons for this and find suitable measures to make
a good improvement in sales in these areas. So the results of the study was so
significant to take proper measures to over come these problems and improve sales in
these areas.
OBEJECTIVES OF THE STUDY
The following are the objectives of the study:
To understand the market acceptability of the company in comparison with its
main two competitors.
To under stand the current position of the company in certain areas in
comparison with its competitors.
To understand the areas where the company has to make improvements for
increasing sales.
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METHOD OF DATA COLLECTION
Primary data
Visiting the organization and through interview with the authorities.
Visiting and interviewing the retail shop keepers.
Using structured questionnaire.
In the questionnaire the respondents were the owners of the retail shops . The
sample was random and took 45 samples for the research.
Secondary data
Secondary data was collected mainly from the supplements and brochures of the
company.
THE RESEARCH DESIGN
The samples selected were the retail shop keepers. As they deal with the customers,
they could give a clear idea about the demand and sales for the companys products.
They could give good information regarding the areas where the company is lagging
behind.
The samples were the retail shop owners from different places in Kottayam and
Eranakulam districts. Since the company head quartered in Thodupuzha, areas in and
around the place were not selected for the study. The shops from Idukki district were
also avoided since the company is in a leading position in the dstrict. The samples
were mainly selected from areas where the company is not in a leading position. The
study was conducted with a structured questionnaire which was based on certain
parameters like purchase preference, customer demand, advertisement based demand,finishing and quality, efficiency in delivery of goods etc.
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SAMPLE SIZE
A part of the population or a subset from a set of units which is picked up by some
process is called sample size. Here the sample size for study is 45 an were the retail
shop keepers from various places of Kottayam & Eranakulam districts. As retailers
are the people who deal with the customers regularly, they were able to give a good
idea about the sales and demand for different brands and its products.
METHODS USED FOR ANALYSIS
Pie charts and bar charts were used in analyzing the data.
Cross tabs used to prepare tables comparing two variables
LIMITATION OF THE STUDY
As the data will be collected through questionnaire, there are chances of
biased information provided by the respondent.
The time for the organisation study and market study was only 21 days, the
availability of time was a problem.
The samples were selected from distant places selecting more samples were
difficult with the available time.
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(1). Stocks purchase
Rank
company
Once in
a week
Once in
two weeks
Once in
three weeks
Once in a
Month
TOTAL
Lunars
33 (73.3%) 10 (22.2%) 1 (2.2%) 1 (2.2%)
45 (100%)
Paragon
38 (84.4%) 7 (15.6%)
_ _ 45 (100%)
VKC
42 (93.3%) 2 (4.4%) 1 (2.2%)
_ 45 (100%)
33
10
1 1
38
7
42
2 105
1015202530354045
once in a week once in twoweeks once in threeweeks once in amonth
purchase of stocks
Lunars Paragon VKC
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Lunars
Out of the 45 samples, 33 of them purchase stocks from Lunars once in a week, 10 of
them purchase stocks once in two weeks, 1 purchase stocks once in three weeks and 1
purchase stocks once in a month.
Paragon
Out of the 45 samples, 38 of them purchase stocks from Paragon once in a week and
the rest samples 7 purchase stocks once in two weeks.
VKC
Out of the 45 samples, 42 of them purchase stocks from Lunars once in a week, 2 of
them purchase stocks once in two weeks and 1 purchase stocks once in three weeks.
(2). Purchase preference
Rank
company
1 2 3 Can not say TOTAL
Lunars 4 (8.9%) 25 (55.%) 16 (35.6%) _ 45 (100%)
Paragon22 (48.9%) 14 (31.1%) 9 (20%) _ 45 (100%)
VKC 22 (48.9%) 16 (35.6%) 7 (15.6%) _ 45 (100%)
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Lunars
Out of the 45 samples, 4 of them give first preference to purchase stocks from Lunars
25 of them give second preference and 16 samples give third preference to purchase
stocks from Lunars.
Paragon
Out of the 45 samples, 22 of them give first preference to purchase stocks from
Paragon 14 of them give second preference and 9 samples give third preference to
purchase stocks from Paragon.
VKC
Out of the 22 samples, 16 of them give first preference to purchase stocks from VKC
7 of them give second preference and 16 samples give third preference to purchase
stocks from VKC.
Purchase preference ranking
4
25
16
22
14
9
22
16
7
0
5
10
15
20
25
30
1 2 3
Lunars Paragon VKC
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(3). Whether Price factor is important or not
Frequency
Always 28 (62.2%)
Sometimes 14 (31.1%)
Never 3 (6.7%)
Out of the 45 respondents 28 (62.2%) of them gave the opinion that price factor is
important always, 3 (6.7%) of them said that price is sometimes an important factor
and 14 (31.1%) said that price is not an important factor
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(4). Affordability of products
Rank
Company
1 2 3 Can not say TOTAL
Lunars 25 (55.6%) 8 (17.8%) 3 (6.7%) 9 (20%) 45 (100%)
Paragon 21 (46.7%) 9 (20%) 6 (13.3%) 9 (20%) 45 (100%)
VKC 19 (42.2%) 12 (26.7%) 5 (11.1%) 9 (20%) 45 (100%)
Lunars
Out of the 45 respondents, 25 of them gave first rank for the affordability of Lunars
products, 8 of them gave second rank and 3 of them gave third rank while 9 of them
had no opinion.
25
8
3
9
21
9
6
9
19
12
5
9
0
5
10
15
20
25
30
1 2 3 can not say
Affordability of products
Lunars
Paragon
VKC
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Paragon
Out of the 45 respondents, 21 of them gave first rank for the affordability of Paragon
products, 9 of them gave second rank and 6 of them gave third rank while 9 of them
had no opinion.
VKC
Out of the 45 respondents, 19 of them gave first rank for the affordability of VKC
products, 12 of them gave second rank and 5 of them gave third rank while 9 of them
had no opinion.
(5). Profit margin offered
Rank
company
1 2 3 Can not say TOTAL
Lunars 21 (46.7%) 16 (35.6%) 1 (2.2%) 7 (15.6%) 45 (100%)
Paragon 13 (28.9%) 8 (17.8%) 17 (37.8%) 7 (15.6%) 45 (100%)
VKC 28 (62.2%) 8 (17.8%) 2 (4.4%) 7 (15.6%) 45 (100%)
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Lunars
Out of the 45 respondents, 21 of them gave first rank for the profit margin offered by
Lunars, 16 of them gave second rank and 1 of them gave third rank while 7 of them
had no opinion.
Paragon
Out of the 45 respondents, 13 of them gave first rank for the profit margin offered by
Paragon, 8 of them gave second rank and 17 of them gave third rank while 7 of them
had no opinion.
VKC
Out of the 45 respondents, 28 of them gave first rank for the profit margin offered by
VKC, 8 of them gave second rank and 2 of them gave third rank while 7 of them had
no opinion.
Profit margin ranking
21
16
1
7
13
8
17
7
28
8
2
7
0
5
10
15
20
25
30
1 2 3 can not say
Lunars Paragon VKC
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