A PROJECT REPORT ON WORKING OF AMUL DAIRY ON ADVERTISING

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERSUNION LIMITED ANAND

Prepared by HARSH R DAVE M.B.A SEM-2

Guided by Prof. VIJAYANTI TIKYANI

SUBMITTED TO

Dr. J. K. Patel Institute Of Management

(AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY)

Waghodiya, baroda. IN THE YEAR 2011

ANAND MILK UNION LIMITED THE KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED ANAND

Dr. J. K. Patel Institute of Management

CERTIFICATE
This is to certify that Mr HARSH DAVE student of Master of Business Administration (Batch 2010-2012) at Dr. J. K. Patel Institute of Management, Vadodara have undertaken a Project Titled Marketing in partial fulfillment of 2 years full time MBA programme of Gujarat Technological University, Ahmedabad. The Summer Internship Project has been undertaken under the guidance of Prof. VIJAYANTI TIKYANI, faculty of Dr. J. K. Patel Institute of Management. This is also to ascertain that this project has been prepared only for the award of Master of Business Administration degree and has not been submitted for any other purpose.

Prof. Faculty Guide

VIJAYANTI TIKYANI

Dr.AbhijeetChatterjee Director

Date:15/7/2011 Place: Baroda

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The MBA programmed is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA programmed provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of MBA and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that Experience is best teacher.

With immense pleasure, I would like to present this project report for Kaira District Co-operative Milk Producers Union Ltd., Anand. It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around. As a student of DR. J. K. PATEL INSTITUTE OF MANAGEMENT I would like to express my sincere thanks to all those who helped me during my practical training programmed.

I would like to give my heartily thanks to Mr. J P BHOI, Manager of Administration, who permitted me to get training at AMUL. I am very thankful to Mr. SIRFRAJ PATHAN who helped me at every step whenever needed and who arranged all possible visits for me at AMUL.

As we know research work needs hard work, keen insight and long patience with scholarly vision based on content operation hence it becomes a humble duty to express my sincere gratitude to Mr. PRATIK SIR, marketing in charge.

However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

Declaration
I am HARSH DAVE here by declare that the report on summer internship program and project work entitled marketing of advertising is prepared by myself, if in this report any kind of mistake so I am responsible for that.

Date:15/7/2011 Place: Baroda

HARSH DAVE

CONTENTS SR.NO. 1 2 3 4 5 6 7 8 9 PARTICULARS EXECUTIVE SUMMERY INTRODUCTION AND HISTORY ORGANIZATION PROFILE VISION AND LOGO THE BRAND NAME OF AMUL PLANTS ORGANIZATION STRUCTURE BOARD OF DIRECTOR AMUL PRODUCTS

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MARKETING DEPARTMENT INTRODUCTION ORGANIZATION STRUCTURE MARKETING MIX DISTRIBUTION CHANNEL MARKET SEGMENTATION SALES H.R. DEPARTMENT - INTRODUCTION - SELECTION PROCESS - PERFORMANCE APPRAISAL - WAGE AND SALARY ADMIN. - COMPENSATION - TRADE UNION FINANCE DEPARTMENT - INTRODUCTION - ORGANIZATION STRUCTURE ADVERTISING CONCLUSION SWOT ANALYSIS FINDING AND SUGGESTIONS BIBLIOGRAPHY

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13 14 15 16 17

EXECUTIVE SUMMARY
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which was not possible in earlier years. This union was born on 14th December 1946. The union provides facilities to its members like more return, satisfactory price, insemination, first aid, group Insurance, cattle food at confessional price etc.

AMUL dairy has five main departments like finance, personnel, commercial, milk procurement and production. The finance department does the clerical work and takes care of inflow and outflows of the cash. The other work of finance Department is to audit of annual work.

The personnel department handles the work regarding personnel like appointment, recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc,

The commercial department conducts all promotional activities of local area. The pricing decision of milk and buttermilk is taken at commercial department. The marketing work is handle by GCMMF.

The production department produces the product with the help of latest technologies. The production is done according to ISO marks requirement.

The milk procurement department gets the milk every day two times from 92 routes and 1073 societies. For the maintenance of quality of milk there are 150 chilling units

INTRODUCTION AND HISTORY

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected the brand name AMUL in 1955. The brand name Amul means AMULYA. This word derived form the Sanskrit word AMULYA which means PRICELESS. A quality control expert in Anand had suggested the brand name AMUL. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as ANAND PATTERN). In the early 40s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. \ However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.

At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

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PEOPLE POWER: AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.

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Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agro-economic systems,

Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

Plants First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.

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Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattelfeed

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Fourth plant is at Khatraj, which engaged in producing cheese

name Amul. Today Today, twelve dairies a producing different products under the brand Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

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Organisation profile

NAME: Kaira district co-operative milk producers union limited, anand.

FORM: co-operative sector registered under the co-operative society act.

LOCATIN: kaira district co-operative milk producers Ltd, Milk producers Ltd, Amul dairy road, Anand-388001 Gujrat. PREMISES OF AMUL: 49.55 acres REGISTRATION: 14th December 1946, REGISTERED OFFICE: Kaira district co-operative milk producers union Ltd Anand 388001, INITIAL PROMOTERS: (1) Shri tribhovan das patel (2) Shri morarji desai (3) Shri vallabh bahi patel (4) Dr.varghese kurien

OFFICE TIME: 10:00A.M TO 6:00P.M TOTAL NO OF SHIFT:

1st shift time: 08:30 A.M TO 04:30 P.M 2nd shift time: 10:00 A.M TO 10:00A.M TO 06:00 P.M
3rd shift time: 04:30 P.M TO 12:30 A.M 15

VILLAGE CO-OPERATIVE SOCITY: 1137 TOTAL NO, OF SOCITY MEMBERS: 543278 BANKARS: kaira district co-operative bank. Axis bank. State bank of India Bank of Baroda Corporation bank H.D.F.C bank

AUDITORS: Special auditor (milk) milk audit office anand.

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VISION & LOGO Vision:

The main Motto of Amul is to help farmer. Amul system works under objective of highest possible price to the milk producers and lowest possible price to consumer. Farmers are paid money in cash payment for the milk. Milk gives them money for daily necessities. Amul is the one who started using their profit for the milk producer common good.

Logo of the amul

Logo of AMUL is a ring of four hands, which are co-coordinated each other. The actual meaning of this symbol is co-ordination of hand of different people by whom this union is now at top. FIRST HAND: Is for farmers (producers), without whom the organization would not be existed. Farmers are the inspiration of the AMUL-taste of India. SECOND HAND: Is for the representatives of processors by whom the raw milk processed in to different finished products. THIRD HAND: Is for marketers without whom the products would not been able to reach to the customers. FOURTH HAND: Is for customers without whom the organization could not carryon because they are the people who consume the products.

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The brand name of the amul

The Kaira district co- operative milk producers union ltd selected the brand Name AMUL for its products range, in 1955. AMUL word is derived from Sanskrit word AMULYA. And it means that PRECIOU PRICELESS INVALUABLE It means that one cannot measure the value. One finds similar sounding word with the same meaning in several Indian Languages also. The very concept of Kaira unions system of co-operative dairying Was destined to become priceless for millions of farmers.

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PLANTS
Mogar Plant It is situated on Anand -Vadodara Highway No. 8. Its Production is Chocolates, Nutramul, Amul Lite and Amul Ganthia. This Plant establish in 1973.

Anand Plant The products are Milk, Buttermilk, Milk Powder, Butter, Ghee, Flavored Milk etc,. It is establish in 1973.

Kaniari Plant The product is cattle feed. Old plant establish in 1964 & new plant in 1980.

Khatraj Plant It is situated between Nadiad-Mahemdabad. The product is Cheese.

Chilling Center Kapadvanj, Undel and Balasinor Satellite Dairy Balasinor, Undel

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ORGANIZATION STRUCTURE

B.O.D Chairman Managing Director General1 Manager Assistant General Manager Manager Deputy Manager Assistant Manager Superintendent Deputy Superintendent Senior Officer Officers Assistants Junior Assistant

Workers (A to G Grade Workers)

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BOARD OF DIRECTORS
1. Shri Ramsingh P. Parmar 2. Shri Rajendrasinh D. Parmar 3. Shri Shivabhai M. Parmar 4. Shri Maganbhai G. Zala 5. Shri Chandubhai M. Parmar 6. Shri Pravinbhai F. Solanki 7. Shri Dhirubhai A.Chavda 8. Shri Bhaijibhia A. Zala 9. Shri Mansinh K.Chauhan 10. Shri Bipinbhai M.Joshi 11. Smt. Madhuben D. Parmar 12. Smt. Sarayuben B. Patel 13. Shri Ranjitbhai K. Patel Shri B. M. Vyas (M.D. of GCMMF, Anand) Shri Rahulkumar Shrivastav (M.D. of KDCMPUL, Anand) Shri Deepak Dalai (District Registrar) Kaira District Central Co-operative Bank U.T.I. Bank State Bank of India Bank Of Baroda Bank Of Maharastra Corporation Bank Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Director Director

Auditor:- Special Auditor (Milk), Milk Audit Office, Anand.

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AMUL PRODUCTS

Products: Milk. Butter. Cheese. Milk Powder. Condensed Milk. Baby Food. Ghee. Nutramul. Chocolate. AMUL Butter Milk. AMUL ice cream. Dan (Cattle Food). Peda kajukatri

Industrial products: Coco Butter. Coco Powder. Coco Mass. Cream.

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Amul Butterz Amul Chocozoo

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Amul masti Dahi

Amul pure ghee

Amul Mithaee Gulab Jamuns

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MARKETING DEPARTMENT

INTRODUCTION
Every organization that produces one or more products requires marketing of the products sell them in the market. It is only through marketing that people know about a company's products. Hence marketing is considered as a key activity of organization. The organization requires sound marketing structure to carry on its marketing activities.

However the concept of marketing is not confined only to selling of goods and services to customers. Instead the company tries to create and maintain the customer base through marketing. The marketing thus focus on the customer needs and wants in the market and emphasis on producing and selling only those goods, which have higher demand in market. The company mainly markets its products through advertising. Marketing uses various sales promotional tools to boost the sales of the company. The marketing department thus should have sound distribution channel and promotional system to make the marketing activities sound.

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Organization Structure:
Managing Director

Deputy Manager

Product-dispatch Manager

Superintendent

Deputy Superintendent

Senior Officer

Assistant

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Marketing Mix:
The marketing mix is a set of four elements: Product, Price, Place and Promotion and this is decided by GCMMF.

1. Product:

At AMUL, "GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (GCMMF)" does the product planning at national level. It is the duty of GCMMF to plan the new product by conducting the market survey at the state and national level. However, issues of product lunch at the local level are taken care of by Amul itself. The Amul has set up the commercial department, which conducts the survey in the local areas through business. The new product decisions are also taken by the GCMMF.

2. Price:

The prices of products of Amul are also decided by the GCMMF. The GCMMF conducts the market survey to check the validity and feasibility of prices in the market and accordingly decides the prices of Amul products. However, the price is inclusive of several elements like, Cost of Milk Labor Cost Processing Cost Packaging Cost Advertising Cost Transportation Cost Sales Promotion Cost Taxes etc. The GCMMF considers all these cost aspects and set them up in pricing structure to decide the jelling price of milk and milk products.

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3. Promotion:

AMUL, promotes its products through newspaper, Television, hoardings etc. Television is the best media for advertising. The GCMMF however uses hoarding for advertising in local areas. Hoarding designed on the creative basis attract the customer more.

Advertising/Promotion
Amul uses the following advertising/promotion sources: Television Direct Mail Personal contacts Trade associations Coordinators/ references 4. Place:

AMUL has developed federation and AMUL parlors located in several parts of country. The GCMMF handles the works relating to managing of stocks and distributors in country. Thus GCMMF looks after the disbursement of products to the various marketing channel.

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Amul Dairys distribution channels

Amul Dairy

GCMMF

Area Depot

Distributors

Retailers

Consumers

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Market Segmentation:
At Amul, since the marketing activities are handled by the GCMMF, market segmentation is also decided by GCMMF. The GCMMF determines the market size and market its product accordingly in the market so that the product can be easily sold in the market. Generally milk and milk products like butter and cheese arc popular in the all age groups. Hence they arc segmented at the national level. Milk products like chocolate and milk powder are segmented on the basis of age, that is for children but they arc also marketed at national level. The GCMMF conduct the market survey to know the demand for the products of Amul in the market and then accordingly determines the market segment, defines the target market and emphasis on the demand of population in that particular segment. The GCMMF has developed the marketing information system, which takes care of such issues.

Amuls sales:
Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 30 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700

COMPETITROS:
Competitors are the person who produce and sales the same product by the unit affect the business with several causes. The main rivals of AMUL are as following.
Rich milk Sardar milk Nestle Britannia Cheese of Le-Boen Gowardhan

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HUMAN RESOURCE DEPARTMENT

INTRODUCTION
"Management is getting things done by people."

There is one popular theme in the management "MAN IS MASTER" and AMUL follows this theme. Generally organization is run with the help of five Ms viz. Man, Money, Material, Machine and Market. However it is impossible to seem the organization without human resource. Thus human resource comprises the value of the organization by effective and efficient work.

HRM is concerned with integration - getting all the members of the organization in loved and working together with a sense of common purpose. Human resource taker active n le in the modern economic scenario of any company. The management of men is not only fundamental but also dynamic and challenging Task.

The human resource management has thus become important to manage the human resources properly in the organization. Therefore, the organizations involves human resource department to take care of human aspect in the organization. The structure of the human resources management department is as under:

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Selection:
Selection procedure is concerned with securing relevant information about the applicant. The main objective of selection process is to determine whether an applicant meets the qualification for a specific job and choose the application that is most likely to perform well in the job.

The Selection process in AMUL is as under

Vacancy in any department

Approval from M.D.

Advertisement

Collection of Application

Securitize the application

Interview

Medical checkup

Selection

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Performance Appraisal System :

Performance appraisal is the process of evaluating the performance and qualification of employees in terms of the requirement of the jobs for which they are employed. It is highly useful in making decision regarding the promotion, transfer, wage and salary administration etc.

The Amul adopts the following appraisal system

Promotion Period 1 year 3 year 1 year 1 .5 year

Appraisal For Managers Officers Workers Temporary Workers

Final confirmation with the recommendation by the divisional heads comes from the MD on annual basis. His work is evaluated and if his work is not found satisfactory, he is terminated from his job. At present Amul has adopted open system under which the employee himself writes in which work he needs training and asks to the management to arrange for it.

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Wage And Salary Administration :

It is a universal fact that no one will work without any reward. Thus an employee has to be properly rewarded for his services rendered to the organization. He should be paid reasonable wage or salary. The salary or wage is the remuneration for his service to the organization.

At Amul, wages and salaries arc paid on monthly basis. A time rate wage system is followed by the organization. The salary of an employee would include basic salary plus allowances like house rent, medical allowance, clearness allowances, performance allowances, festival allowances, travel allowances, education and development allowances, leave allowances etc,. Besides provident fund is also paid out from the monthly salary.

A common method is followed for the wage and salary administration. The present catalogue record received from the tine keeping officer is maintained of each employee in the register, which is known as "Muster Roll".

Timekeeper sends that muster roll to the account department for attendance of each and every employee. This will analyze and entered in the computer. The report is scrutinized and statutory and non-statutory deductions are made. After this salary is calculated for each employee through computer according to that they prepare salary sleep of employees.

The wages are paid in cash and also credited to their savings or current account. The wages and salaries paid according to the grade wise. Amul delegates grades like A, L, C. D, E, F, and G.

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Compensation :
In Amul, The workmen's Compensation Act. 1923 is very well executed. The compensation is given lo employees as per the Act. In the case of major accident occur in organization and if any worker get injure that lime organization take care of that employee. If the employees under medical treatment and unable to came in organization for job, than half salary will be given to that employee until he/she will again join organization. Employee also gets all incentives during this period. Union provides complex expanse of medical treatment to his/her employees. They have a provision for that amount in welfare fund. For that a report from surgeon is considered.

In case of minor accident, if any employee get injure that time disability certificate take as an evidence for the payment of compensation. According to disability certificate union decide the compensation. Disability certificate must be issue by doctor from civil hospital.

According the Act, if accident takes place because of worker mistake than he/she will be unable 'o get compensation. But in AMUL even if accident occurs by workers mistake in that case union paid compensation according to injury. For that employees must past through medical report.

In case of accident, if worker get serious injury and he/she will be unable to do same work after getting recovery than management give them relief by transferring them in another section for suitable work. By this way they retain their employees.

Trade Union:

Trade unions as we know exist in inmost every organization. Trade unions are the typical unions made up of employees of that particular organization. Generally the employees in order to get better working conditions, better pay scales and to protect themselves from exploitation form Trade Unions. Trade unions perform the basic activities of discussions and negotiations with the management regarding the issues of conflict.

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At Amul there are tree trade unions in existence. One trade union is for workers the other is for clerical staff and finally one is for officials. In the initial stage there were many strikes had for 2 to 3 days of workers. Last strike was for 10 days in the year 1985. However since then Amul has been faced harmonious relations with trade unions. Since Amul is a cooperative organization each member of trade union works as a member of the Amul family. Further more Amul holds the monthly discussions with all their employees to share with them the problem" they night be facing. This awakens the mutual under standing between the management and employees.

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FINANCE DEPARTMENT

INTRODUCTION
Financial Management is an activity, which is concerned with the acquisition and conservation of capital funds in meeting financial needs and overall objectives of a business enterprise.

In Financial Management process following points are considered:

Financial Analysis Financial Decision-Making Financial Planning Financial Control

Finance department is that managerial activity concerned with the planning and controlling of the firm's financial resources. Among all the 5 Ms, i.e. man, money, machine, material and market. Money plays a vital role ion the organization. Finance is the lifeblood for the success of an organization. For the organization to grow and develop an even basis, availability or finance on adequate basis is the prime requirement.

The financial management involves critical decisions on which the very survival of the organization depends. The main financial decisions are as follows: Investment Decision. Financing Decision. Dividend Decision.

Financial decisions are thus very crucial and important, decisions for the firm. The main function of finance department is to tackle The day to day financial requirement and other short term and long term expenses, which an organization incur quite often.

All the other department of the organization strongly depends upon the finance department to carry on their departmental activity efficiently. Hence it is the responsibility of 38

the finance manager to manage the finance function with proper care. Adequate financial availability in time in the organization would lead to organizational success and the failure to manage finance will thus lead to inefficiency.

IMPORTANCE OF FINANCIAL MANAGEMENT

Proper finance is the real key to the success of any business enterprise. Without proper finance a business neither survives nor expands and modernizes. It is the finance, which works like a lubricant, which keeps the organization dynamic. Keeps men and machine at work. The following are the points highlight the importance of finance.

Finance for business promotion. Finance management for optimum use of firm. Use for co-operation in business activities. Useful in decision-making. Determinant of business success. Measurement of performance. Basis of planning, co-operation and control. Useful to shareholders and investors.

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ORGANIZATION STRUCTURE
Finance management is vital as well as crucial part of management as whole and involves planning, allocation of resources and their control. The ultimate responsibility of finance decisions lies with the top management. The nature of finance organization differs however from firm to firm.

Top management takes the complex and important financial decisions and middle level personnel take other decisions. The account department is divided in to various other sections like.

1. Account Division

The Function Of this Division is prepare voucher, bills. It also issue Check for the payment.

2. ESTA Division

The Function of this Division is to prepare payroll of employee.

3. Purchase Bill Division

The Function of this division is issue Check or Draft to party from whom they purchase raw material.

4. MIS Division

The Function of this division is handle Data related Account. They have a data base system for that. They have Accounting software system Tally 6.3. In which they input all information related Accounting.

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FINANCE STRUCTURE
MD

General Manager

Asst. General Manager

A/C Manager

Comm. Manager

Pur. Superintendent

Dpyt. Sup.

Dpyt. Sup.

Dpyt. Sup.

Officers

Officers

officers

Sr. Asst.

Sr. Asst.

Sr.Asst.

Jr. Asst.

jr.Asst.

jr.Asst.

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ADVERTISING

DEFINITION:

Advertising is a paid form of non personal communication about products or services marketed by an organization or market or company.

Elements of promotion mix:

1) advertising 2) sales promotion 3) personal selling 4) publicity

Role of advertising:

1) to inform 2) to retain 3) to remind 4) to influence 5) to entertain

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STAGES OF ADVERTISING

1) PIONEERING STAGE:

Pioneering stage is related with introductory stage of product life cycle and in this stage of advertising concentration is on what I am and what can I do for u . When product is new or when existing product is introduced with new features you have to tell something through advertisement to the customers or to the target audience.

2) COMPETITIVE STAGE:

This stage is related with growth stage of maturity. When the product has capture the attention of the target audience you have to tell about the products through advertisements.

3) RETENTIVE STAGE:

This stage is related with maturity stage of product life cycle and you have to remind the customers that I am around for you. Example: vip bags , bajaj ,etc.

4) NO ADVERTISING STAGE:

This stage is related with the decline stage of product life cycle in which sales declines and expenses increase so you have to stop advertising the product. 43

FORMS OF ADVERTISING

1) PRODUCT ADVERTISING:

In this type of advertising concentration is on the following aspects:

1) Brand building

2) generic campaign

2) CORPORATE ADVERTISING:

In this type of advertising concentration is on the following aspects:

1) Corporate image building

2) Public relation

3) SOCIAL ADVERTISING:

In this type of advertising concentration is on following aspects:

1) Awareness campaign

2) product promotion

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PRODUCT CATEGORY AND ADVERTISING ROUTE

1) CONSUMER DURABLE PRODUCTS:

1) The advertisement of consumer durable products should be informative and pront media is more preferable even though audio, video and print media are there for sending message to the target audience. 2) The advertisement should be such that it creates preference for the particular brand in the mind of the customers. 3) Initial products need high level of customer involvement in high process so this advertisement hope or expect initial response generator.

2) CONSUMER NON DURABLE PRODUTS: 1) The advertisement of consumer non durable product should be emotional or interactive. 2) 3) The advertisement expect more selling of the product. Use of electronic media .

3) INDUSTRIAL PRODUCT: 1) 2) 3) The advertisement should be educational and awareness generator. Focus on corporate image. Print media is preferred.

3) SEVICES: 1) 2) The advertisement of services should be informative and descriptive. It should be influencer or awareness generator.

3) Print or electronic media can be used even though outdoor media is also playing an important role.

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SIX MS OF ADVERTISING

1) MISSION:

Mission includes business objectives, marketing objectives and advertising objectives such as to inform, to remain, to remind, to influence and to entertain.

2) MARKET:

Market addresses questions like who are we communicating with, what does the target audience respond to and how can these people be reached.

STEPS IN ADVERTISING CAMPAIGN PLANNING:

1) Define the advertising objective and target market.

2) Check the awareness level of target audience.

3) Identify the motivators and demotivators.

4) Establish link between unit selling price(usp) and need.

5) Check media habits of audience.

6) Differntiate the advertising.

7) Position the advertising.

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3) MONEY:

The third M of advertising explains about the money factor that is what amount to be spent and under what different heads will be spent.

METHODS BY SETTING ADVERTISING BUDGET:

The following are the methods of setting advertising budget:

1) Percentage of sales method.

2) Affordable method.

3) Competitive clarity method.

4) Objective and task method.

MAJOR ADVERTISING BUDGET HEADS:

1) Media expenses:

This include the cost of releasing the advertisement in the selected medias.

2) Agency charges:

This include the expense of hiring the agency to do the job.

3) Production charges:

This include the cost of preparing advertisement.

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4) MESSAGE:

APPROACHES TO MESSAGE DESIGN:

1) Interactional approach:

Under this approach the concentration is there on interaction with actual users who talk about the benefits of the products.

2) Transformational approach:

Advertisements which attach the experiences with the use of products are called transformation advertising. The following appeals are used:

1) Humour:

Laughter is the best medicine and the fact that humour is universal bonding factor.

2) Fear:

In some advertisement we see the fear directly or indirectly.

3) Emotional:

Love , responsibility , loneliness and hate are the aspects which are highlighted in the advertisements.

3) Comparative approach:

Two type of comparison is shown in the advertisement that is direct and indirect comparison.

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DESIGNING OF PRINT ADVERTISING:

1) Logo:

It is a symbol or trademark of the company.

2) Head line or sub head line:

Head line carry promise made by the product and sub head line carry on with the head line while spelling out the benefits in the clear term.

3) Body copy:

Body copy is the amplification the claims made through the head line and sub head line.

FACTORS AFFECTING CREATIVE CONTENT:

1) Market: The profile of target market decide the language to be used, ideas to be forwarded and models to be used.

2) Mission: The mission of advertising may be to remind, to inform, to retain or to entertain.

3) Product profile: You have to think about what is your product and to whom you have to targeted a product.

4) Product life cycle stage of the product: If the product is in introductory stage the content shoule be informative and educative, If it is in growth than message should highlight advantages over competitive products, if it is in maturity you have to remind customers and if it is in decline stage than you have not to advertise the product. 49

GUIDELINES TO CREATE A GOOD MESSAGE:

The following are the guidelines to create good message:

1) Be specific.

2) Keep it short and simple.

3) Sell the benefit.

4) Make copy or visual excting.

5) Use of celebrities and opinion leaders.

6) Use of contrasting especially of colours.

7) Exploit the potential of colour.

8) Use of kids.

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5) MEDIA:

The following are the different categories of media available for the advertising products.

1) Print and non print media

2) Audio, video and audio-video media.

3) Print, electronic and outdoor medias.

Media planning:

Media planning is a process that involves selecting the right media vehicles to carry the advertising to target audience.

Factors affecting media choice:

1) Product and media match.

2) Reach of media.

3) Cost of media.

4) Competitors presence.

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6) MEASUREMENT:

Measurement is the important aspect or element of advertising. For measurement aspect of advertising we have to consider or think about designing advertising goal for measuring advertising result approach.

The market has to concentrate on the following approach:

1) Change in sales before and after advertising.

2) Meeting of advertising objectives.

3) Reaction of target audience to the advertising campaign.

Whatever measurement activities are there of advertisement it is related with the following:

1) Communication effect research.

2) Sales effect research.

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CONCLUSION
Amul is a highly successful co-operative sector in world. Which truly work for farmers who are the members of union. All departments are working well and help the union to reach towards top position. I have list out some recommendations. They are as follows.

Special Seminar should be arranged in village for guiding the village people in proper take care of Animal. Amul should do research actively in village for guiding the village people in proper take care of Animal. Amul should do research activity in animal husbandry practice to increase the milk production.

Amul has competitive established system. The four hands of Amul are working successfully with corporation. The people of Amul are very co-operative and enthusiastic. Amul is famous as Anand pattern for its co-operative organization in world. So its a matter of proud for the people of Anand as well as India. Amul is really The Taste of

India.
According to my point, success factors of Amul are hard work, discipline, co-operative structure, production technology development.

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SWOT ANALYSIS

Strengths:

Demand profile Margins Flexibility of product mix Availability of raw material Technical manpower

Weaknesses:

Perishability Lack of control over yield Logistics of procurement Problematic distributionCompetition

Opportunities:

Value addition Export potential

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Threats:
Milk vendors, the un-organized sector

Strong marketing strategy by competitors by offering the discount coupons to consumers and providing healthy commissions to the retailers.

Strong supply chain management by the competitors.

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FINDINGS AND SUGGESTIONS

There is a scope of business as there is a demand for dairy products. AMUL Dairy should open more outlets to get the maximum advantage of the demand.

Need to put more stress in the face-to-face direct marketing to reach to the customers. The increasing demand for these products presents a great opportunity for theProduction. The major problem faced by Retailers and AMUL Retailers is the SUPPLY problem i.e. problem with the distribution. The company should aim at improving its SUPPY CHAIN MANAGEMENT. The company should increase incentives that can increase Retailers Nominal Income. This can be done through certain Schemes that increase the overall sales. The company should lay emphasis on proper PROMOTION of the brand at the Retail Outlet.

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BIBLIOGRAPHY
BOOKS: The Amul India Story: Ruth Heredia

: Marketing Management By Philip Kotler (11th Edition) : Human resource management by tanuja agrawala

WEBSITE:
www.amul.com www.google.com www.managementpredise.com

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