lunar rubbers pvt ltd

CHAPTER 1

INTRODUCTION

As a step in to the next millennium, managers will be witnessing new dimensions in designing their organization. The continues change in the industrial environment will force today’s organization’s to adapt to the existing system. Study about this organization will benefit to review the new dimensions in building of high-tech corporate of the future.

Organization is the structural framework of duties and responsibilities required of personal in performing various function with a view to achieve business goals, through organization. Classicists have used the term ‘Organization’ in the form of organizing which is a part of management process. Presently the term organization is used in the following ways with or without prefix or suffix.

As an entity

As a group of people

As a structure

As a process

The most frequent use of the term organization is an entity and is referred to us as an enterprises as a whole, like company corporation, partnership firm,etc.In this form Organization is defined as collectively for achieving common objectives.

1.1 SCOPE OF THE STUDY

A well organized and efficiently planned organization forms the base stone of every successful business. The organization study provides an excellent opportunity for experiencing and understanding the organization in its full range. This also enables the student to find out the correlation between the theory and the real business situations.

The organization study helps in developing in internal abilities like conceptual, interpersonal skills and there by encourage the entrepreneurial capabilities of the student. The study covers the functioning of marketing, personal(HR),purchase, finance and Production departments.

1

1.2 OBJECTIVES OF THE STUDY

To study the Organization as a system and its various functional area. To have a practical Knowledge of application of the management theories. To have the real life knowledge about an organization. To understand the strategies adopted to confront the challenges faced by the

company To judge the success of the management in carrying on the daily transactions

of the company To gain an in-depth knowledge of the tricks of managing the daily financial

activities of Lunar Rubber Pvt Ltd

1.3 METHODOLOGY

The data which I have collected for making this project is the combination of both primary and secondary data.

Primary Data

This data had been collected through meeting and interviews with various managers and employees of Lunar located in the administrative building of Lunar’s Pvt Ltd .At the same time I had visited various department for collection of data.

Secondary Data

Apart from the primary data certain secondary data were required for this organization study as follows:-

Company booklet

Organizational websites

Annual reports

Sales report

1.4 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.

2

1.5 LIST OF COMPANIES UNDER LUNAR GROUP

THODUPUZHA

Lunar Rubber Pvt Ltd-Hawaii and umbrella unit

Viking Rubber Pvt Ltd-No sale-only processing

Neo Rubber Pvt td-Umbrella unit-season sales

Polymer Kerala Pvt Ltd-Polymer items

Kovai polymer Pvt Ltd-Now no transaction

COIMBATORE

Viking Rubber Pvt Ltd(Branch)-Hawaii and polymer items

MUNDAKAYAM

Foot care rubber industries(Partnership firm)-Hawaii and polymer items

Footmate Polymer footwear India Pvt.Ltd-Polymer items

MYSORE

Akshye Rubbers(partnership firm)-School bags

Utham Rubber Pvt.Ltd-Hawaii items

Lunar Export Rubber Pvt.Ltd-Polymer items

Foot Tech Polymer Rubber Pvt.Ltd-Polymer items

CHAPTER 2

3

THE 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., Paragon Industries is the largest manufactures of hawai chapels in Kerala. Lakshmi group is the largest manufacture of footwear of standard quality. 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:

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.The total value of rubber produced and consumed all over the world in 1995 was two billion dollar in 1998 it increased to three billion.

4

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 has the eighth place on product of rubber goods in the world. Apart from Kerala, Tamilnadu, Karnataka, Andaman and Nicobar Island and north eastern states are the other major rubber producing states in India

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 and rubber growers are educated, encouraged and supported in setting up rubber based industries.

CHAPTER 3

5

3.1LUNAR RUBBERS PVT LTD

In 1982, Lunar Rubbers was initially registered as a small scale industry. The unit was later converted into a private limited company in1993-The Lunar Rubbers private Limited. History of the company begins even before, in 1975 when a Hawaii manufacturing unit was set up in the Industrial estate at Thodupuzha in the district of Idukki, Kerala state, India. This initiative from a young entrepreneurial genius led towards the triumph of a quality foot wear brand, Lunar's. The company is certified with ISO 9001-2000 since the year 2004.

Quality, Durability, stylishness, and cost effectiveness worked as the key factors generating consumer demand for Lunar's footwears. Nothing but strict adherence to quality and the keenness to update and adapt to the changes of time contributed for an impressive growth in business. Untainted quality has been the prime slogan and concern for the company right from the beginning. The company strictly follows a multi-tire checking system to ensure quality and attribute maximum perfection on each pair produced.

Lunar's owns a fully fledged Research and Development wing focused on introducing new designs as well as upgrading the existing models. Readiness to learn and the ability to sense the wavering trends in the market and consumers’ interests are the obvious strengths of this core group. Agile and active R&D wing helps the company to be a stride ahead of others in the market.Product diversification was a major leap forward by the brand. Lunar's umbrellas were introduced in 2001.The Lunar's umbrella, catering to all segments of the society is now a houses hold name in Kerala.

Lunar school bag and school shoes are two proven products enjoying wide demand. The popular footwear brands from the Lunars’ stable are Deluxe Hawai, Aerolux (PVC- Poly vinyl Chloride), Lunar Lite (EVA- Ethylene vinyl Acetate) and Walkmate (Poly Urethane). Forward integration into leather chapels and shoes, stuck on variants, handmade chapels etc are progressing at hectic speed. The company is well poised to be a National Brand by the year 2012.

Expansion of market to neighboring states was another mile stone on the path of growth of the company. Lunars’ today has 50% market share in Kerala, Tamilnadu

6

Managing Director

General Manager

Asst. Gen. Manager

FinanceManager

MarketingManager

HR Manager

ProductionManager

PurchaseManager

Director 1 Director 2

Board of Director

and Karnataka. Inroads into the markets of Andhra Pradesh and Orissa are already on and soon the product will spread to North India. The company maintains healthy overseas trade too, now touching almost 20% of the total turnover. Exports are mainly to the Middle East followed by Europe and Africa.

The Lunar group has production centers across south India at Thodupuzha (Kerala), Mundakayam (Kerala), Coimbatore (Tamilnadu) and Mysore (Karnataka). The company is headquartered at Thodupuzha, the heartland of natural rubber.

The company was recognized many times for excellence in performance and, finds a place regularly in the top twenty Brands in Kerala in the survey conducted by Dhanam, the premium business magazine in Kerala.

Isac Joseph heads the crew as the Chairman and Managing director of Lunars’ group of companies. He is adequately assisted by a board of directors which includes his elder son Juby Isac, in charge of administration and marketing and younger son Jess Isac, having charge of production and HR management.

Lunar’s on its each and every phase of growth were adamantly keen to manage healthy network knitting together the directors, suppliers, dealers and employees, more through personal relationship than by business. Management by relationships is the rule in Lunars. And they all together structure the Lunars’ family, hardworking relentlessly for the sake of consumer’s satisfaction and success.

3.2 ORGANISATION STRUCTURE

Fig: 1

7

3.3 ROLE AND RESPONSIBILITY OF VARIOUS EXECUTIVES IN LUNAR RUBBERS PVT LTD

MANAGING DIRECTOR

MD is the chief executive of the organisation.

Responsibilities:

Document control: to approve policy, manual and procedures. Management review: To chair management review meeting. Resource management: To provide necessary resources for the smooth

operation of the organisation. 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 material. 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. Controlling 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 strategy,

promotional activity. Administration: To approve policies, requirements of top officials etc. Performance appraisal of senior staff. Payment approval. Approval of policy matters.

8

GENERAL MANAGER

His responsibilities are:

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

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

monitoring the functions of account staff.

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.

PERSONAL MANAGER:

9

Manage the administration of human resource policies, procedures, and programmes.

Manage the day to day operations of human resource office

Carries out responsibilities in functional areas like departmental development, Human Resource Information Systems, organizational development and employment.

Coordinates implementation of services, policies and programmes through Human Resource staff.

Responsible for areas like recruiting, staffing, organizational planning, organizational development and performance management.

Also responsible for employee orientation, development and training, employee welfare, compensation and benefit administration.

PURCHASE MANAGER :

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 receipt of materials. Issue of materials and maintenance of all relevant records about these are also including in his duties.

Duties and Responsibilities of purchase manager in Lunar Pvt.Ltd. are the following:

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.

PRODUCTION MANAGER:

10

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 oncorrective / preventive actions resulting from the audits.

Plan and organize management review meeting and prepare minutesof 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 or relations.

Appraisal of Factory staff.

Quality system implementation, monitoring and improvement.

Controlling production and maintenance records.

Training and discipline of the factory Personnel.

11

Timely Manufacturing of products.

Reporting to MD regarding factory functioning.

3.4 PRODUCT PROFILE OF LUNAR RUBBERS PVT LTD

Fig:2

LUNAR HAWAI CHAPELS

a) Lunar’s 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) Lunar’s 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) Lunar’s Activa:-The available colours are black, brown, and grey. This is high quality chapel with two wide straps for special protection against splashing.

12

Lunar Products

Lunar Hawai Chappiels

Lunar Umbrella Lunar School Bags Tourism Ventures

f) Lunar’s 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.

g) Lunar’s Zoom:- Available colours are orange,blue,beige,full black for ladies and gents only.

Another popular brands from Lunar ,which is good in quality and preferred by millions of customers are the following

a) Leather Touch

b) Aerolex – PVC

c) Flighter – PVC

d) Lunar’s Lite - EVA

Special features of Lunar’s 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 Lunar’s.

50% of the production of the group is sold outside Kerala including Gulf countries and European countries.In India,Lunar’s hawai chapel is available in the states of Tamilnadu,Karnataka,Gujarat,Maharashtra,Andrapradesh,Pondichery,Goa etc. other than Kerala.

LUNAR'S UMBRELLAS

Lunar Rubbers Pvt. Ltd, has entered into the umbrella market in the year 1999. There are different varieties of umbrella, differing in design and in colours. Every part of Lunar umbrella is made of the finest quality raw materials brought in from various states of India and even from outside India like Taiwan, Saudi Arabia etc. They are

13

then assembled with great care at their production centres to make umbrellas that stand apart in every way.

VARIETIES OF UMBRELLA

I. Children's Umbrella

Name Size mm

• Achu : 225

• Munna : 275

• Vava cap : 340

• Muth : 385

• Muth Silver : 385

• Neethu Print : 430

• Guddy mono : 430

• Pinky print : 430

• Malu print auto : 430

• Ashik Black : 430

• Twinkle print sliver (auto) : 430

• Lulu (mono) : 480

• Manu print (auto) : 480

• Swapna print : 480

• Ammu (auto) : 480

II. Two fold manual

Name Size mm

• Thalam(B) : 480

• Divya (B/S) : 480

14

• Minnie print : 480

• Dona(M/S) : 480

• Juby(B) : 480

• Jill (B/S) : 530

• Dinar print : 530

• Princes (B) : 530

III. Two fold automatic

Name Size mm

• Jubyauto(B) : 530

• Jill auto (B/S) : 530

• Jill plus auto (B/S) : 530

• Dinar print auto : 530

IV. Cup open umbrella

Name Size mm

• Jiss(B) : 530

• Pimy(B) : 530

V. Three fold umbrella

Name Size mm

• Pooja(B) : 545

• Dimple (B/S) : 545

• Diana (B/S) : 545

• Monica (M/S) : 545

VI. Gents umbrella

Name Size mm

• Juby Beno(B) : 530

• Pilot auto (B) & (B/S) : 530

15

• Dollar auto (B) & (B/S) : 580

• Major ORD(B)& (B/S) : 635

• God Father (B/S) : 545

VII. Garden umbrella

Name Size mm

• Garden Queen : 36 Nylon

• Garden King : 40 Nylon

III. Fancy Item

Name

• Moon light

• Madona.

[B - Black, B/S - Black Silver, M/S - Mono Silver].

SCHOOL BAGS

These are newly introduced into the industry. Tough and cool style of bags for the junior and senior students is available in the market now.

PVC CHAPPALS

This is also a new product of the company. It is also available in different styles and shapes in the market.

EVA CHAPPALS

This is also a newly introduced product of the company. It is available in the market for all classes of people.

TOURISM

Green Berg Holiday Resorts and Green Berg resource faculty center location - Nadukani at Kulamavu, Idukki.

16

3.5 DEPARTMENT STUDY

3.5.1 FINANCE DEPARTMENT OF LUNAR

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 employed in 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.

STRUCTURE OF FINANCE DEPARTMENT

Fig:3

17

Finance Manager

Accounts Officer IIAccounts Officer I

Junior Accounts Officer I Junior Accounts Officer II

Clerk Clerk

OBJECTIVE OF FINANCE DEPARTMENT:

The basic objectives 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 is playing an important role in promoting sales but the realization of these credits is the problem faced by the companies.

In Lunar Rubbers Pvt. Ltd. all accounts are computerized and they follow double entry system of book keeping. The finance department is under the control of Finance Manager. The Finance 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 remittance, Payment of creditors and collection from Sundry debtors, watching payment of dues, collection of dues and all other matters connected with it. He attends to all matters concerned with income tax, including collection of form and other material for filling, classification of payments, receipts, maintenance of cash book, ledger etc. He is assisted by the Junior Accountants.

18

The Accounts Officer 2 is in charge of all matters connected with sales tax, accounting of purchase and sales bills, sealing and passing of voucher for payment, preparation of journal accounts, branch accounts, bank return, declaration form -18, collection of cheques, direction for issue of sales bills, delivery notes and declaration and supervision of stock register entries. He also assists accounts officer 1, in the preparation and finalization of accounts. The Accounts Officer 2 is assisted by the Junior Officer and Accountants.

The Junior accounts officer attend to the all accounts of small units returned and returns of company matters, verification, electricity bills, matters connected with SIDCO, computers entry of accounts, print out, cashbook, ledger, bank accounts etc. Preparation of bills, delivery notes, computer printing of monthly sales tax return, stock statements, bank returns etc., are also the work of Junior Accounts Officers.

FUNCTIONING OF FINANCE DEPARTMENT

The major function of finance department in lunar 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 is playing 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

19

check on classification of payments. Receipts maintenance of cash book ledger etc. 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.

The Junior accounts officer attend to the all 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.

3.5.2 MARKETING DEPARTMENT OF LUNAR

Marketing is not merely a function of a business enterprise. But it is the business and is synonymous with the whole business unit. It affects every aspect of our daily life. Our entire life, our life styles and our existence are continuously affected by a wide range of marketing activities. Marketing means the performance of business activities that direct the flow of goods and services from producer to consumer or user. The primary function of a marketing company is to create and maintain a satisfied customer. Marketing Management is an ongoing process under dynamic marketing environment.

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."

Philip Kotler defines marketing as "human activity directed at satisfying needs and wants through exchange process". The process of exchange involves sellers, searching for buyers, identifying their wants and needs, making relevant product, promoting, transporting and distributing them and negotiating and so on.

20

In a business firm marketing generates the revenues that are managed by financial people and used by the productions people in creating products and services. The challenge of marketing is to generate that revenue by satisfying consumer wants at a profit and in a socially responsible manner. The Lunar Rubbers Pvt. Ltd has well developed Marketing Department.

Lunar Rubbers Pvt. Ltd has an active and effective marketing department with a marketing manager as its head. There are regional managers for each state. Regional Managers are assisted by junior sales managers

DEPARTMENT STRUCTURE

Fig:4

21

MARKETING MANAGER

AREA MANAGER (PALA) AREA MANAGER

FIELD REP FIELD REP

AREA MANAGER (IDUKKI) AREA MANAGER (KONNI)

FIELD REP FIELD REP

Weekly meetings are conducted by the Managing Director with each regional manager. During their meetings they analyze the market conditions and the position of the product in the market. During these meetings every regional managers presents a report of the previous weeks activities. These meetings and reports are helpful to study, analyze and control the problems being faced by the product in the market also access.

They will the target fixed for the sales & compare it with the achievements made. The marketing department conducts studies to explore new markets and to expand the existing markets. The head of the marketing department in consultation with the managing director takes decisions in connection with sales promotions activities advertisement etc.

Regional sales managers conduct meetings with junior sales manager. In these meetings the regional sales manager gets a clear picture of the product in the market from the juniors. In consultation with the chief marketing manager the regional sales managers take steps in case there are any problems in the market.

Marketing manager is one who decides the marketing strategies for every major decision which affects marketing. Decision is taken by marketing manager but final decision is taken by the chief executive (MD).

FUNCTIONING OF MARKETING DEPARTMENT

The Marketing Department conducted various meeting to take the decisions regarding the various activities. The Marketing Manager presents a report of the previous month’s 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

22

AGENCY NETWORK (OUT OF STATE

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 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.

Competitors of Lunar

1. Paragon

2. Eva Hawaii

3. Senor chappals

4. Rubco

The main market leader is Paragon Chappals .Lunar have the second position in the Kerala market.Now the Lunar Hawai have 43% market share in Kerala.

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

23

In Lunar

Hawai Chappels Umbrella School bags

Company manufactures varieties of Hawai Chappels.

1. PVC Products

a) Flighter

b) Airolux

2. EVC Products

a) Elter

b) Lunar Lite

3. Lunar’s Delux

4. Lunar’s Cushion

5.Lunar Dimple

6.Lunar Safari

7.Lunar’s Activa

8.Lunar’s Hitech

9.Lunar’s 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.

24

Children Umbrella Ladies Umbrella Cup open Umbrella Gents Umbrella

School Bags :

Lunar introduced varieties of school bags of high quality for junior and senior students.

PRICE MIX OF LUNAR RUBBERS

One of the most important and critical area in marketing management is the pricing of products. It is the second marketing mix. Decisions of pricing have considerable effect in marketing. A wrong pricing decision can nullify the effect of all right decisions relating to product, promotion and distribution.

The price includes the cost of production and a margin of profit i.e. Lunar Rubber Pvt. Ltd follows cost plus or market price policy which is the best approach to pricing.

PROMOTION MIX OF LUNAR RUBBERS

Promotion is "Any Marketing effort whose function is to inform and persuade potential consumer about the availability of certain production or service with certain capabilities to satisfy specific human wants" Advertising, publicity and sales promotion are the part of promotion. The good will of Lunar Rubbers Pvt. Ltd helps to increase sales volume and publicity.

Sales Promotion:

Sales promotion constitutes a very vital function in case of a company which manufactures consumer goods and consumer durables. Sales promotion is primarily intended to increase the sales.

Sales promotion is a bridge or a connecting link between advertising and personal salesmanship. Lunar Rubber undertakes various sales promotion activities. They are;

Coupon system:

Coupon system is the promotional strategy adopted by lunar rubbers to promote their retailers. In this system the retailer will get gifts according to the size of sales they made. Thete is a criterion for getting the coupons. The retailer should

25

make a fixed amount of sales within fixed period of time. The scheme starts from 20 coupons to 2000 coupons. Increase in the sales leads to increase in the size of the gifts. Table1 gives the details of the scheme.

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-paid commercially 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.

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.

Fig 5

Distribution network

Company

Agencies / Wholesales

26

Whole Sales –Van sales

Dealers / Retailers

MARKETING ACTIVITIES OF LUNAR:

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 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 & Labelling

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.

27

Packing material used for Packing of Hawaii 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 Hawaii chapels and Umbrella manufactured by Lunar Rubber's Pvt. Ltd.,

3. 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 Market pricing, target return pricing, perceived value pricing of sealed bid pricing.

6) The Company selects its final price expressing it in the most effective psychological way, co-ordinating it with the other marketing mix elements

3.5.3 HUMAN RESOURCE DEPARTMENT OF LUNAR

Personnel Management refers to a set of programs, activities of functions designed of carried out in order to maximize both employee as well as organizational effectiveness.

Personnel department of Lunar Rubbers view people as the most important source of asset to be used for the benefit of organization and society. The human

28

resource philosophy of the management aims at formulation of policies that promote neutrality, mutual respect, mutual rewards and mutual responsibilities.

STRUCTURE OF HUMAN RESOURCE DEPARTMENT:

Fig 6

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT:

RECRUITMENT

Recruitment: is the process of searching for employees and stimulating and encouraging them to apply for jobs in an organization.

RECRUITMENT SOURCES

Fig 7

Recruitment

Internal Sources External Sources

Transfer and promotions Press advertisement

29

HR Manager

Asst.HR Manager

HR Officers

Supervisors

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.

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 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 per 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.

30

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.

COMPENSATION:

Employee compensation is a vital part of human resource management. Wages salaries and other 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.

31

PERSONNEL RECORDS

The company has the Personnel records for their references.

SENIORITY LIST:

Management of Lunar Rubbers Pvt Ltd. Prepares the seniority list of the employees.

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.

32

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.

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.

33

* Basic Pay * DA * Telephone Allowance *HRA *TA

Performance appraisal:

Performance appraisal is measuring the relative worthiness 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.

3.5.4 PURCHASE DEPARTMENT OF LUNAR

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

34

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 are verified. It will report to the concerned officer and the bill sanctioned. The raw materials are given to the stores.

STRUCTURE OF PURCHASE DEPARTMENT

Fig 8

35

Purchase Manager

Executive Officer

Officer

Junior Officer

Senior Assistant Officer

Office Assistant

Clerk

MAJOR RAW MATERIALS PURCHASED IN LUNAR RUBBER’S PVT.LTD

36

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 colours: 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 Ernakulum and Trivandrum. The main packing materials are

Sticker

Plastic cover

Small cartoon

3.5.5 PRODUCTION DEPARTMENT OF LUNAR

Production is the creation of goods and services. It is concerned with terms forming the inputs in the form of raw material, labor, 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 maintain the 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.

37

Production Manager

Work Manager Maintenance Manager

Supervisor Supervisor

Worker Mechanic Plumber Electrician

STRUCTURE OF PRODUCTION DEPARTMENT

Fig 9

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.

THERE ARE VARIOUS TYPES OF MACHINERY USED IN PRODUCTION THEY ARE

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.

38

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.

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.

39

Raw Materials Weighing

Mixing Mill kneeader

Ageing of 24 hours

Sheeting Molding Visual examination and lab analysis

Post Curing

Ageing of 15 days

Sole Cutting

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

PRODUCTION PROCESS CHART-CHAPPELS

Fig 10

40

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 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

41

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 section

d) 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

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.

42

3.6 COMPETITORS OF LUNAR

In any business, competition is faced by all organization. Because of the competition each organisation is trying to improve their quality of the products.

For Lunar, the major competitors are:

• Paragon: it is the rubber manufactures of footwear, that is suitable for all seasons an occasions with highest quality standards. They are produced under the names- Acusole, Dolly, Casuals, Princess, Safari and Cushions.

• Rubco: it is the market invention agency of government of kerala for processing natural rubber directly from farmers. Rubco has been the major supplier of the rubber foot wear.

• VKC: it manufactures two types of VKC products , that is, VKC- Lestyle and VKC- Slippons. VKC producing different footwear modals for gents, ladies and kids.

• Haritha: manufactures and exporters of slippers Hawai chappals, sandals made of rubber.

3.7 GROWTH AND DIVERSIFICATION STRATEGIES OF LUNAR

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.

Lunar has trends to expand its capacity and product line to items like canvas and leather shoes Lunar has trends to expand its capacity and product line to items like canvas and leather shoes

The company has its eyes on tyre manufacturing also,

Company has plans to foray into information technology & tourism

43

With a penchant for customer satisfaction and a passion for research & development, the company is confident of achieving its goals.

3.8 WELFARE MEASURES PROVIDED BY LUNAR RUBBERS PVT LTD

The following welfare measures are provided by the company for the well being of the employees.

1. SANITATION AND BATHROOM FACILITIES:

Company provided number of urinals and bath rooms for the use of the workers.

2. FACILITIES FOR STORING AND DRYING DRESSES:

The company offers the facilities for storing and drying the uniforms and other dresses of workers.

3. DRINKING WATER FACILITIES:

The company provide to its employees the facilities for drinking water which is very clean and sufficient.

4. MEDICAL CARE FACILITIES:

Adequate medical care facilities are provided to the workers in the company to protect the health and physical wellbeing of the workers.

5.REST ROOM AND LUNCH ROOM:

The company provides the rest rooms for employees in free times and lunch rooms for the workers.

6. LEAVE AND HOLIDYAS:

The company provides different types of leave holidays for the employees.

7. EDUCATIONAL SUBSIDY:

Company provides educational subsidy for the children’s of employees in the company.

8. CONVEYANCE FACILITIES:

Company provides conveyance facility for the workers and to work place.

44

3.9 TRAINING PROGRAMES

On the job training

Lunar Rubbers Pvt Ltd follows On the job training method, where workers learn by doing. Workers are placed on the job. They work under the guidance and supervision of supervisors or certain experienced employees. In this way he goes on learning step-by-step by doing practically his job and reaches mastery level.

Off the job training

Top level management holds meetings and shares their views with the employees. This training discuss about the latest development in the business. Management also makes them aware of the mistakes generally committed by workers and forbids their reputation. Workers can also get solutions of the problems by asking certain questions.

Training by supervisor

The new employees are trained by the supervisor who familiarizes him with the ins and outs of the work and techniques of operating equipments. The supervisor guides and instructs the employee, whenever needed. The employee has also opportunity to of removing doubts.

3.10 PRODUCTIVITY IMPROVEMENT IN THE ORGANISATION

For productivity improvement of employees no systematic procedures are followed. When new machinery is installed for increasing the capacity and productivity the employees are given separate training for using this machinery more efficiently.

45

CHAPTER 4

PERFORMANCE ANALYSIS OF LUNAR RUBBERS PVT LTD

Over the past years, lunar is able increase its turnover and business as a whole in a great extend because of the overall performance of the organisation. Every department work towards its predetermined goal and as a result the company is able to attain a good position in the footwear industry of Kerala. Company is able to expand its market to North India also. Lunar is also exporting its products to most of the GCC countries. Company also trying to expand its market to other Middle East countries and also to European Union.

MARKETING DEPARTMENT :

Marketing department is taking various strategies to increase sales through sales promotion, now company is adopting coupon system for promoting sales, Coupon system is the promotional strategy adopted by lunar rubbers to promote their retailers. In this system the retailer will get gifts according to the size of sales they made. There is a criterion for getting the coupons. The retailer should make a fixed amount of sales within fixed period of time. The scheme starts from 20 coupons to 2000 coupons. Increase in the sales leads to increase in the size of the gifts. Table1 gives the details of the scheme. This scheme was helps the company to increase its sales in a great extend.

Marketing department is in constant search for new market in overall India. Some of the states in north India where most of the people prefer hawai chappals is one of the potential market for the company. Department have already contacted the dealers of this country and the company is ready to enter these market.

Lunar Rubbers Pvt ltd is extending its advertisement to all medias including visual media, radio, newspaper, magazines and women magazines also.

Effective performance of marketing department leads to considerable growth in the sales as well as overall performance.

PRODUCTION DEPARTMENT

Every production unit is functioning in its full capacity. Production departments ensure that maximum pair of footwear is produced every day. There is 3 shift of 8hours a day. Production department is able to meet the demand of its

46

dealers in great extend. Also production department is able to come up with new models of footwear according to the needs of the consumer. Company is also starting new production unit for the manufacturing of canvas and sports shoes.

PERSONAL DEPARTMENT

Personal department of lunar ensure that the human resource of the company is working most effectively and are giving their 100% for the growth of the company. Personal department also make sure that right person is selected for the right job, in order to ensure that department conduct various test and interviews before going into selection and induction.

For ensuring the full productivity from employees, company is giving incentives and other benefit for them. Bonus is given once in a year. It is in December.

Other benefits given by the company to increase the productivity are:

Medical Facilities Free Chapels and Uniforms Recreation Facility Social Security Schemes Loans Allowance & other benefits etc.

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.

Purchasing department ensure that raw materials purchased are of good quality. For increasing the efficiency of production, they are purchasing machinery of advance facilities for production.

47

CHAPTER 5

TECHNOLOGY ADAPTATION OF LUNAR RUBBERS PVT LTD

Lunar rubbers is using internet service for its business purpose, company is not yet implemented any Information system or technology adaptation. Top management is discussing on implementing IT into their business, but not yet decided.

CHAPTER 6

SWOT ANALYSIS

In SWOT Analysis the Strengths, Weakness, Opportunities and Threats of Lunar Rubbers Pvt Ltd, Thodupuzha is analysed and noted:-

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

48

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.

The market is dominated by a few large suppliers rather a fragmented source

of supply

There are no substitutes for the particular input

The suppliers customers are fragmented so their bargaining power is low

The switching costs from one supplier to another are high

49

CHAPTER 7

SUGGESTIONS AND FINDINGS

FINDINGS

In Lunar Pvt Ltd there is no separate department which deals with MIS. This concept of modern MIS is not yet introduced by the Lunar Pvt.Ltd, it is carried by the personal department in an informal way.

Lunar Pvt Ltd company gives more importance to the quality of the products The major portion of income is contributed by the Lunar Hawaii chapels

Sales and Distribution strategies are comfortable

Each worker in the organization has the job satisfaction.

SUGGESTIONS

Better media planning with more concentration on television is necessary

Make advertisement according to the changing taste and preferences of the consumers

Lunar Shall provide sales promotional schemes to attract more domestic customers

Technology up gradation shall be done in the production process and also n the cutting unit

Measures shall be taken to promote personal selling through dealer educationally qualified workers

Facilitate department with MIS

Lunar should come up with more attractive designs for their chappals.

50

CHAPTER 8

MINI PROJECT

8.1 OBJECTIVE OF THE PROJECT

The main objective of the research is to study about the advertisement effectiveness of lunar

1. To know about the different better media of ad2. To know about the effective media of ad3. To study about the attitude of consumer towards ad\4. To study the effect of ad on customer buying behaviour5. To know about the recall effectiveness of ad

8.2 RESEARCH METHODOLOGY

INTRODUCTION:

Research methodology is a way of systematically showing the research problem. Collections of data are the most important step in the research process. At most care should be exercised here because any fault will lead to the failure of the research program.

AREA OF STUDY:

The study was conducted in Idukki and Ernakulam.

RESEARCH DESIGN:

In this research study both primary and secondary data source are used.

SAMPLE SIZE:

50 respondents are selected from both the districts as sample

51

SOURCES OF DATA:

Primary data

Primary data are collected by a study specifically designed for the research. The following are the various primary sources

50 respondents are selected from both the districts as sample. Direct interview and mailed questionnaire

Secondary data

Secondary data are which collected by someone for some other purpose and available for the present study

Different books Internet

8.3 DATA ANALYSIS AND INTERPRETATION

Data analysis and interpretation means the analysis and interpretation of various data and facts obtained from the respondents with the help of research instruments . for the better and clear analysis and interpretation , data are tabulated and description had been given.

52

ADVERTISEMENT CONCERN

TABLE 1

CHART 1

Yes No0

10

20

30

40

50

60

70

80

90

Series1

80% of respondents are interested in advertisement and 20% respondents are not interested

53

Opinion No of respondents Percentage

Yes 40 80

No 10 20

Total 50 100

IS ADVERTISEMENT A BETTER MEDIA FOR PUBLICITY

TABLE 2

CHART 2

Yes No0

20

40

60

80

100

120

Series1

100% respondents says that advertisement is better media for publicity

54


Yes 50 100

No 0 0

Total 50 100

DO YOU THINK IDEA OF ADVERTISEMENT IS SUITABLE FOR SELLING

TABLE 3

CHART 3

Yes No0

10

20

30

40

50

60

70

80

90

Percentage

Percentage

80% Respondents feels that advertisement is suitable for selling while 20% feels that advertisement is not suitable for selling.

55

Opinion No fo respondents Percentage

Yes 40 80

No 10 20

Total 50 100

WHICH TYPE OF PUBLICITY IS MORE EFFECTIVE

TABLE 4


Advertisement 30 60

Word of mouth 15 30

Others 5 10

Total 50 100

CHART 4

Advertisement Word of mouth Others0

10

20

30

40

50

60

70

Series1

60% of respondents feels that advertisement is most effective publicity tool while 30% feels that word of mouth is more effective and 10% feels that other tools are more effective.

56

BRAND RECALL OF VARIOUS FOOTWEAR BRANDS

TABLE 5

CHART 5

Paragon Lunar Vkc Others0

5

10

15

20

25

30

35

40

45

50

Series1

Figure shows that Paragon has 44% has brand recall, while lunar has 22% brand recall, VKC has 18% brand recall and other brands has 16% brand recall.

57

Brand No of Respondents Percentage

Paragon 22 44

Lunar 11 22

Vkc 9 18

Others 8 16

PRODUCT AWARENESS

TABLE 6


Yes 50 100

No 0 0

Total 50 100

CHART 6

Yes No0

20

40

60

80

100

120

Series1

100% of respondents are aware of lunar products.

FAMILIARITY WITH LUNAR

58

TABLE 7

OpinionNo of

respondents Percentage

Never heard of them 0 0

Heard of them but never brought 10 20

Buy occasionally 34 68

Buy products on a regular basis 6 12

Total 50 100

CHART 7

Never heard of them

Heard of them but never brought

Buy occassionally

Buy products on a regular basis

0 10 20 30 40 50 60 70

Series1

12% of respondents buy lunar products on a regular basis, 68% of respondents buy lunar products occasionally, while 20% of respondents heard of lunar products but never brought. And no one is unaware of lunar products.

59

THROUGH WHICH MEDIA YOU NOTICE LUNAR ADVERTISEMENT

TABLE 8

Media No fo respondents Percentage

Television 15 30

Newspaper 17 34

Magazine 12 24

Others 6 12

Total 50 100

CHART 8

Television Newspaper Magazine Others0

5

10

15

20

25

30

35

40

Series1

30% of respondents notice lunar advertisement through television while 34% of respondents notice lunars advertisement through newspaper, 24% through magazine and 12% through other sources such as posters, flex etc.

OPINION ABOUT LUNAR ADVERTISEMENT

60

TABLE 9


Very good 10 20

Good 25 50

Average 10 20

Poor 5 10

Total 50 100

CHART 9

Very good Good Average Poor0

10

20

30

40

50

60

Series1

20% of respondents have an opinion that lunars advertisement is very good, 50% have good opinion 20% have average opinion and 10% of respondents feels that lunars advertisement is poor.

MAJOR MERIT YOU FIND IN LUNAR ADVERTISEMENT

61

TABLE 10


Better quality 20 40

Easily understandable 23 46

Others 7 14

Total 50 100CHART 10

Better quality Easily understandable Others0

5

10

15

20

25

30

35

40

45

50

Series1

40% of respondents feels that better quality is the main merit of lunar products. While 46% feels that lunar advertisement are easily understandable and 14% feels other things are main merits of lunar advertisement.

IS QUALITY OF ADVERTISEMENT IS IMPROVING

TABLE 11

62


Yes 22 44

No 28 56

Total 50 100

CHART 11

YesNo

44% of respondents feels that quality of advertisement is improving. While 54% feels that quality of advertisement is not improving.

HAVE YOU EVER PURCHASED LUNAR PRODUCTS

TABLE 12

63


Yes 40 80

No 10 20

Total 50 100

CHART 12

Yes

No

0 10 20 30 40 50 60 70 80 90

Series1

80% of respondents have purchased Lunar products, while 20% respondents never purchased lunar products.

DO YOU REMEMBER ANY ADVERTISEMENT OF LUNAR

TABLE 13

64


Yes 35 70

No 15 30

Total 50 100

CHART 13

Yes No0

10

20

30

40

50

60

70

80

Series1

70% respondents remember lunar advertisement while 30% do not remember lunar advertisement.

DO YOU THINK THE BENEFIT DISCRIBED IN THE ADVERTISEMENT IS BELEIVABLE


65

Yes 40 80

No 10 20

Total 50 100CHART 14

TABLE 14

Yes No0

10

20

30

40

50

60

70

80

90

Percentage

Percentage

80% respondents feels that benefit described in lunar advertisement is believable, while remaining 20% feels that these benefits are not believable.

BY VIEWING THE ADVERTISEMENT OF LUNAR WILL YOU CONSIDER IT FOR PURCHASING

TABLE 15

66


Yes 30 60

No 20 40

Total 50 100

CHART 15

Yes No0

10

20

30

40

50

60

70

Series1

60% of respondents says that they will purchase lunar products by viewing the advertisement, while 40% of respondents says that they will not purchase the product by considering the advertisement.

DO YOU THINK THE ADVERTISEMENT OF LUNAR IS MUCH BETTER THAN OTHER ADVERTISEMENT OF PRODUCTS IN THIS CATEGORY

67

TABLE 16


Strongly agree 5 10

somewhat agree 18 36

Disagree 27 54

Total 50 100

CHART 16

Strongly agree

somewhat agree

Disagree

0 10 20 30 40 50 60

Series1

10% of respondents strongly agree that lunar advertisement is better than other brands, 36% of respondents somewhat agree that lunar advertisement is better than other brands. And 54% of respondents disagree that lunar advertisement is better than other brands.

REASON FOR PURCHASING LUNAR PRODUCTS

TABLE 17


68

High quality 22 44

Law price 13 26

Better advertisement 15 30

Any other 0 0

Total 50 100

CHART 17

High quality Law price Better advertisement Any other0

5

10

15

20

25

30

35

40

45

50

Series1

44% of respondents says that high quality is the reason for purchasing lunar products, 26% says that law price is the reason for purchasing lunar products and 30% of respondents says that better advertisement is the reason for purchasing lunar products.

WILL YOU PURCHASE LUNAR PRODUCT AGAIN

TABLE 18


69

Definitely 20 40

Probably 24 48

Not 6 12

Total 50 100

TABLE 18

DefinitelyProbablyNot

40% of respondents says that they will definitely buy lunar products again, while 48% of respondents says that they probably buy lunar products again, and 12% of respondents says that they will not buy Lunar product again.

8.4 FINDINGS

80% of respondents are interested in advertisement and 20% respondents are not interested

100% respondents says that advertisement is better media for publicity

70

80% Respondents feels that advertisement is suitable for selling while 20% feels that advertisement is not suitable for selling.

60% of respondents feel that advertisement is most effective publicity tool while 30% feels that word of mouth is more effective and 10% feels that other tools are more effective.

Figure shows that Paragon has 44% has brand recall, while lunar has 22% brand recall, VKC has 18% brand recall and other brands has 16% brand recall.

100% of respondents are aware of lunar products. 12% of respondents buy lunar products on a regular basis, 68% of respondents

buy lunar products occasionally, while 20% of respondents heard of lunar products but never brought. And no one is unaware of lunar products.

30% of respondents notice lunar advertisement through television while 34% of respondents notice Lunars advertisement through newspaper, 24% through magazine and 12% through other sources such as posters, flex etc.

20% of respondents have an opinion that Lunars advertisement is very good, 50% have good opinion 20% have average opinion and 10% of respondents feels that Lunars advertisement is poor.

40% of respondents feel that better quality is the main merit of lunar products. While 46% feels that lunar advertisements are easily understandable and 14% feels other things are main merits of lunar advertisement.

44% of respondents feel that quality of advertisement is improving. While 54% feels that quality of advertisement is not improving.

80% of respondents have purchased Lunar products, while 20% respondents never purchased lunar products.

70% respondents remember lunar advertisement while 30% do not remember lunar advertisement.

80% respondents feels that benefit described in lunar advertisement is believable, while remaining 20% feels that these benefits are not believable

60% of respondents says that they will purchase lunar products by viewing the advertisement, while 40% of respondents says that they will not purchase the product by considering the advertisement

10% of respondents strongly agree that lunar advertisement is better than other brands, 36% of respondents somewhat agree that lunar advertisement is better than other brands. And 54% of respondents disagree that lunar advertisement is better than other brands.

71

44% of respondents says that high quality is the reason for purchasing lunar products, 26% says that law price is the reason for purchasing lunar products and 30% of respondents says that better advertisement is the reason for purchasing lunar products.

40% of respondents says that they will definitely buy lunar products again, while 48% of respondents says that they probably buy lunar products again, and 12% of respondents says that they will not buy Lunar product again.

8.5 SUGGESTION

Advertisement should be attractive and catchable Innovative ideas should be introduced in advertisement Try to give more importance to television advertisement Advertisement should be able to compete with competitors Advertisement should give enhance to quality and designs. Necessary steps should be taken to improve the effectiveness of lunar

advertisement

CHAPTER 9

CONCLUSION

72

Lunar is a name that stands for quality Hawaii Footwear. This Company is

mainly producing Hawaii chapels and umbrellas. Lunar product s are manufacturer as

per strict quality guidelines. These commitment and efficiency of employees helped

Lunar products to capture the highly competitive market product quality enables the

organization to get the prominent place among the competitors.

When I analyzed various departments I can understand that dedicated

employees are the key factor in Lunar’s success. All the employees are very

cooperative and supportive and they always try to achieve organization goals

together. The long vision of management helped to win the competitive market. The

marketing strategy and financial decision are sufficient to capture the market and

Lunar having strong production unit. The company is now progressing towards full

automation to keep in place with expansion programme for the surviving the

escalating domestic and international demands.

BIBLIOGRAPHY

73

Philip Kotler -Marketing Management

L R Potti - Research Methodology

Website - www.lunars.com

QUESTIONNAIRE

Are you interested in advertisement?

Yes No

1. Is advertisement a better media for publicity

74

Yes No

2. Do you think the idea of advertisement is suitable for selling

Yes No

3. What is the first company that comes to mind when you think of footwear brands?

..................

4. Are you aware of lunar products

Yes No

5. How familiar are you with lunar?I have never heard of themI have heard of them but never buy their productsI buy their products occasionallyI buy their products on a regular basis

6. Through which media do you notice the lunar advertisement

Television Newspaper Radio Others

7. hat is your opinion about lunar advertisement

Very good Good Average Poor

8. What is the major merit you find in lunar advertisement

Better quality easily understandable others

9. Do you think the quality of advertisement is improving

Yes No

10. Have you ever purchased any product of lunar

Yes No

11. Do you remember any advertisement of lunar

Yes No

12. Do you think the benefit described in the advertisement is believable

Yes No

75

13. By viewing the advertisement of lunar will you consider it for purchase

Yes No

14. Do you think advertisement of lunar is much better than other advertisement of product in this category

Strongly agree Somewhat agree Somewhat disagree

15. What is the reason for purchasing lunar products

High quality

Lower price

Better advertisement

Any other

16. Will you purchase lunar products again

Definitely Probably Not

76

lunar rubbers pvt ltd

Documents