lokanath marketing.docx

8/19/2019 lokanath marketing.docx

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CHAPTER-I

INTRODUCTION


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INTRODUCTION

The Lokanath weaver’s Industrial cop Society Ltd. is famous firm in Kerala from

its inception in 1955 for production of the superior uality handloom te!tiles "oth for e!port and indi#enous sales. In fact this society was a model society to re#ister many

of the other industrial type of handloom weaver’s co operative society in different

parts of India. This reputed factory type handloom society situated in Kannur$ the city

of looms and lores.

The society is workin# with all modern facility for dyein#$ processin#$ testin#$

weavin#$ stitchin# and packin# accordin# to the modern fashion trend. The society

was re#istered on 1%&'&1955 with %% mem"ers and 5( looms. )t present 1(* looms

with 155 mem"ers are en#a#ed for its production process

The handloom industry is one of the lar#est se#ments in the unor#ani+ed

sector .It plays an important role in the country’s economy. It is the oldest cotta#e

industries in India diffused widely throu#hout the country .,andloom assumes

importance "ecause it not only meet clothin# needs of the people "ut also #ives

e!pression to Indian art and culture$ craftsmanship and herita#e.

) study report "ased on the industrial visit as a part of the fulfillment of my

de#ree of -achelor of -usiness ana#ement course in order to relate the theoretical

studies with that of the practical knowled#e from the company$ I have done my

pro/ect study at Lokanath 0eavers Ltd.


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1.1 OBJECTIVES OF THE STUDY

• To know a"out the or#ani+ational structure

•To know a"out the various products in production department.

• To know the raw material usa#e of the company.

• To acuire the knowled#e a"out profit disposition of the company.

• To acuire knowled#e a"out production process.

• To study the distri"ution channel in marketin#

• To study the ,uman esource 2epartment functions

• To know a"out the functions of various department such as production$

finance$ personnel and marketin#.

1.2 SCOPE OF THE STUDY

The scope of study has "een spread to the entire of the company and their

activities and functions. It covers all aspects relatin# to the #rowth of the or#ani+ation.

It also covers the standard operatin# procedure followed in the company.

METHODOLOGY AND DATA COLLECTION

) research desi#n is an arran#ement of conditions for collectin# and analysis of

data in a manner that aims to com"ine relevance to the research purpose with

economy in procedure.

The study has "een conducted on the customers of ayyil 0eavers. This would

help me to #ain knowled#e to understand and /ustify the reason for customers to place

the opinion sta#e. ) esearch desi#n is the "asic plan that #uides the data collection

and analyses phases of research instrument. ) well developed uestionnaire was

prepared on the "asis of o"/ectives.


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2ata was collected from "oth primary and$ secondary sources.

PRIMARY DATA

The primary data was collected from customers of )33IL 04)4S. 2ata

was also collected "y means of interactions with the arketin# ana#er and other

staff mem"ers of the company are used apart from these$ casual talks with the

company workers are also helpful for successful completion of the work. Secondary

data was collected from various pu"lished sources like annual reports$ company

"rochures$ past records and we"sites.

SECONDARY DATA COLLECTION

Secondary data was collected from referrin# ma#a+ines$ news paper$ /ournal and

we"site$ eferrin# "ooks related to the study

1.4 PERIOD OF STUDY

The duration of the study is up to 6 week on 1sh 2ecem"er (715 to (1st 2ecem"er

(715.

1.5 LIMITATIONS OF THE STUDY

• It was very difficult to collect data

•

8verall pro#ram in the or#ani+ation.• Lack of time was also there.

• (1 days was not enou#h to collect the entire data and to study all the

functions properly.


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CHAPTER-II

ORGANISATION PROFILE


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2.1 INDUSTRY PROFILE

The history of India handloom te!tiles is mentioned in our epics and uranas

nearly five million years a#o. ) piece of cotton sticks to a silver vase and some

spindles were found e!cavations. This revealed that the spinnin# and weavin# of

cotton was known to the ,arappa’s various materials used in spinnin# and the method

of spinnin# is mentioned in the ancient scripts.

-uddhist era scripts reveal that 0oolen :arpets were known India as early as

577.-;: some varieties Indian fa"rics are mentioned in the :hinese literature. This

indicates the early e!perts of India acro olos records show that Indian te!tiles used

to "e e!ported to :hina and south 4ast )sia from )ndhra and Tamil ports in the


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HANDLOOM SOCIETY

,andloom Society is an ancient industry in India. The features of the sector

very across the country. In some parts of Kerala$ Tamilnadu$ )ssam and 8rissa it has

attained the status of a nature Industry and in other parts$ it is still and enterprise

confined to the needs of the household.

The last 177 years have seen the #rowth of mechani+ed te!tile production

internationally. In part due to competition handloom has lost much of its market and is

almost none!istent in most countries. ,owever handlooms are still a force to veckon

with in India and some other )sian countries such as Sri Lanka$ -an#ladesh$

Thailand and :am"odia Today India’s te!tiles sector comprises four important

se#ments modern te!tile mills. Independents power looms$ ,andlooms$ and #arments.

Throu#h there is a hu#e informal tailorin# enterprises$ it has not studies or considered

worthily or pu"lic attention leave alone policy. There are also such sectors like te!tile

machinery manufacturin# and spinnin# sectors which form part of the te!tile sector.

Throu#h of employs the lar#est num"er of people the handloom sector is

considered a sunset Industry and there is an air or inevita"ility #iven the relentless

march of mechani+ation and speciali+ation still there are many advocates of handloom

for reason includin# ideolo#y$ philosophy and sheer love for handloom .

PRODUCTS AND ECONOMIC ARGUMENTS

The southern state of India has a rich tradition and population with hi#h health

standards and 177? literacy. It has a prominent place in the tourism map of India.

Kerala known as @ods 8wn :ountry has seashore stretchin# to 577 km in the 0est

and hi#hly re/oin and "ad wakes on the other side. The "oat races the outstandin#

dance pro#rammance. Kathakali martial arts and her"al treatment system called

)yurvedic are the identities of this state.

Aor e!port of handloom products. Kerala mainly dependin# upon the products

from :annanore. The main products are shirtin# furnishin# Turkish Towels safe an


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sheets crepe such e!port oriented and lun#ies$ 4are+ha$ Thorthu etc for domestic

purpose. The products are coarser varieties :annanore undu is a popular variety.

CHALLENGES FOR THE INDIAN HANDLOOM INDUSTRY

)s noted earlier handloom weavers facin# severe livelihood crisis "ecause of

adverse #ovt policies.#lo"alisation and chan#in# socio&economic conditions. The

national and state #overnment does have several schemes pertainin# to producin#

inputs$ market support and development meant to safe #uard the interest of the

weavin# community in effective implementation of the scheme and the chan#ed

conte!t of te!tile industry increasin# completion from the power loom and mill

sectors& have "een lar#ely responsi"le for the crisis in the handloom.

Lack of information to weavers re#ardin# various policies and schemes is no

less a si#nificant cause for the windin# fortunes of the weaver community. 4ven

#overnment departments and implementin#.

The formal education system has not included teachin# and impartin# skills

for this profession into its fold. )s result any inaction and chan#es has "een let to the

weavin# fails$ in the recent decades due to lack of information and fast paced chan#es

practices in handloom sector "ecome states and apparently redundant.

resently #overnment policies are increasin#ly "y the #lo"ali+ation process

and are related to 0T8 induced trade re#imes. )s the controls on e!ports #et

li"erali+ed and domestic markets open up the te!tile scenario in the country is likely

to under#o drastic chan#es in terms of skills inputs like desi#ns market tends and

chan#in# demands there in the uestion is whether these chan#es include the interests

of weavers who are skill practicin# their skills and knowled#e honed over centuries.

In earlier plannin# process at the national level development handloom sector

was seen as emulation for rural development "ein# on local resources level

craftsmanship and caterin# primarily for local markets. In the first decades followin#

India’s independence all national policies emphasi+ed this however current thinkin# at

the ape! policy level is that the handloom sector is a redundant profession and is a


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"urden on the #overnment e!cheuer. olitical leaderships in #eneral has "een

avoidin# taken up on "ehalf of the weaver community.

:onseuently there is no discourse on handloom policies and also the

replacement of the whole set of e!istin# policies. ,andloom weavers have on say in

policy matter and around Kannur$ :hennai -an#alore and um"ai here the decisions

are taken "y the "oard of directors consist of president 2irectors and mem"ers.

Secretary is the head of the or#ani+ation where he acts as link "etween the

8r#ani+ation and "oard of directors. Several trainin# pro#rammes are arran#ed to

workers to improve the skills and knowled#e in the works. The company is #oin# on a

loss even then the workers are paid %.66? "onus.

The promotion for the ,andloom helps to improve the standard of livin# of

the weavers "elon#in# to all :o operative Society is proposed to implement products

and the market.


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2.2 COMPANY PROFILE

Lokanath 0eavers Industrial :o 8perative society ltdB.. C.LL 99.p.o.chovva

Kannur *>99* was ori#inally a private factory and when it was closed down the

#overnment have decided to convert these into a industrial :o 8perative Society "y

#ivin# the mem"ership to these work. who were thrown out for employment due to

the closure. The #overnment has #iven interest free loan to the society to purchase the

"uildin# and looms. The Society was re#istered on 1%&7'&1955 and started its

commercial operation on 7>&7%&1995 with 9% mem"ers and 5( looms. It was

re#istered as a :o operative Society under the act vi of 196( DadrasE

In fact this society was model society to many of the industrial type of

handloom weavers :o operative Societies in different part of these states. The

Industry situated a"out 6.5 km away from Kannur railway Station and workin# on

common worked shed with other facilities the dye house$ office "uildin# etc

constructed on its own land and weavin# all verities accordin# to the modern trend.

-y years the society had made mainly use of in different pro/ect packa#es scheme of

#ovt of India mainly for the products of e!porta"le uality handloom #ods and

marketin# of economical manner.

The firm is mainly producin# e!porta"le handloom products like "ed sheet

pillow cover$ mat ta"le cover$ "a# munds$ furnishin# fa"rics etc. "ased on the order

o"tained from the reputed handloom e!porters in

MANAGEMENT OF THE COMPANY

)ccordin# to the "ylaw of the society the mem"ers of the -oard of directors

shall "e elected as per rule 65 of Kerala co operative Society rules for a period of 6

years. The -oard of 2irectors shall consist of > elected mem"ers as per the "ylaw and

they are electin# president and vice president )t present there are * selected mem"ers

are within the company


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The -oard shall appoint a fulltime paid secretary form amon# the suita"le

person approved "y the district industries office Kannur. The Secretary shall not to "e

mem"ers of the -oard the -oard of 2irectors shall meet once a fortni#ht to conduct

the affair of the society. The president shall preside over the meetin# of the -oard. )ll

uestions "efore the "oard of directors shall "e decide "y ma/ority of votes.

OBJECTIVES OF LCWS LTD

• To improve the handloom industry and to promote economic condition of the

mem"ers of the industry• To improve the uality of the products and to increase the earnin#s of the

workers

• Skills up#radin# trainin# to weavers includin# women workers to make

efficiency with uality for e!port product

• To develop the marketin# of different handloom fa"rics in national and

international level

• To diversity the e!istin# products with improved desi#n$ pattern and te!tures

• To do such other as may "e conductive of the profit of the or#ani+ation

• To facilitate process of credit from financial institution

HIGHLIGHTS OF THE COMPANY

ioneer in the weavin# Industry with 55 years of e!perience

4n#a#ed in the production of wide ran#e of products

It has a capacity to meet hu#e reuirement at any part of tune

,i#hly e!perienced mana#ement team with #ood knowled#e a"out

market and its products

• Aactory with strict uality control F )+o free dyein#

• 4co friendly and said commitment roducts

• Located in the


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In the simple sense a product can "e defined as


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STORE KEEPING CLERK FINANCE AUDITOR TECHNICAL STAFF

BOARDS OF DIRECTORS

SECRETARY

CLEARK 2

CUTTING AND STTICHING

CLEARK 1

STORE KEEPING

CLEARK 3

STORE KEEPING

WEAING !ASTER

DYEING !ASTER

DYEING

WARP "OININGWARPINGWEAING WINDING

13

2.4 DEPARTMENTAL STUDIES

PERSONNEL DEPARTMENT


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In lar#e si+e or#ani+ation a separate department in formed to perform function

like manpower planned /o" desi#n and analysis determination of compensation etcB.

that department called personnel mana#er .)ccordin# to 4dwin -.Alippo personal

mana#ement can "e defined as personal function concerned with the procurement$

development compensation towards the accomplishment of the or#ani+ation ma/or

#oals or o"/ectives

In the small enterprises$ personnel department may on may not e!ist. Thus

department works as a link "etween mana#ement and employees.

PERSONNEL DEPARTMENT AT LCWS LTD

The ersonnel department of lcws ltd closely monitors the prepress or

achievin# the o"/ectives of motivatin# the staff and improvin# the or#ani+ation

efficiency "y of implementin# their constructive idea. The L:0S ltd aims for

satisfaction of demand of national and international market. )ccordin# to the decision

is taken "y the -oard of 2irector’s and who have complete control over the society.

HUMAN RESOURCE OF LCWS LTD CONTITUTES

• Secretary

• ( clerk

• ( store keepers

• '5 0eavers

• 17 0inders

• ( work /oiners

• ( 4mployees in work sections

• 5 employees in dyein# section

• ( employees in packa#in# Sections

• 1 watchman

• 1 sweeper

Cow all to#ether the e!istin# *% employees in the or#ani+ation. The watchman

also a weaver in the company

TIME SCHEDULE


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Type of 0orkers Startin# time Lunch "reak 2epartin# Time

Staff 9.67 am 1.77 pm To (.77 pm 5.67m

0orkers %.67 am 1.67 pm to (.77 pm 5.67 pm

0atchman 5.67m %.67 )m

AIMS AND OBJECTIVES OF PERSONAL MANAGEMENT

8nce of the principle of mana#ement is that all the work performed in an

or#ani+ation should in same way directly or indirectly contri"ute to the o"/ectives of

those or#ani+ations o"/ectives are predetermined ends or #oals at which individual or

#roup activity in an or#ani+ation in aimed

The "asic o"/ectives of the personnel mana#ement are to help the reali+ation

of or#ani+ational #oals. ,owever$ the specific o"/ectives of personnel mana#ement

may "e as follows

1. To ensure effective utili+ation of human resource. )ll other or#ani+ational

resources will "e effectively utili+ed "y the human resource.

(. To #enerate ma!imum development of human resource with in the

or#ani+ation "y offerin# opportunities for advertisement to employees throu#h

trainin# and e!ecution or "y effectin# transfer

6. To esta"lish and maintain an adeuate$ or#ani+ational structure of relationship

amon# the mem"ers of an or#ani+ation "y dividin# of or#ani+ational task into

functions positions and /o"s and definin# clearly the responsi"ility$

accounta"ility$ authority for each /o" and its relation with there /o"s in the

or#ani+ation


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'. To ensure respect for human "ein#s "y providin# various$ services and welfare

facilities to the personnel

5. To identify and satisfy the needs of individual "y offerin# various monitory

and non monetary rewards*. To achieve and maintain hi#h employees in the or#ani+ation "y sewin# the

"etter human relation.

FUNCTIONS OF PERSONAL MANAGER


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F#$%&'($ () *+,-($./ .$.+,

!.$.++$& )#$%&'($ O*+,.&'+ )#$%&'($-

O,.$''$P/.$$'$ D',+%&'$ (&'.&'$ .%&'.&'$ ($ %($&,(//'$

P,(%#,++$& )#$%&'($

C((*+,.&'$ .$ %(.$'$

D++/(*+$& )#$%&'($I$&+,.&'($ %(*+$-.&'$ !.'$&+$.$%+ )#$%&'($

17

PERSONNEL MANAGEMENT PRACTICES AT LOANATH WEAVERS


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MAN POWER PLANNING

an power plannin# is an important function of a personnel mana#ement it is

the determination of the man power reuirements of a concern in advice man power.

lannin# is concerned with the flow of people into throu#h and out of the or#ani+ation

. It is reuired in the case of a newly stated concern and e!istin# concern.

RECRUITMENT

ecruitment is the first step in the process to fillin# the vacancy. It is the

process to fillin# the vacancy. It is the process of searchin# for an o"tainin# applicant

for /o" so that ri#hts mem"ers can "e selected

ecruitment is the process of findin# out some sources from which the

reuired employees are made availa"le

)ccordin# to < date yarder= a recruitment a process of to discover the source

of man power recruitment of the staffin# schedule and to employee effective measure

for attractin# the man power in adeuate num"er to facilities effective selection of an

efficient work force

The recruitment follows in Lokanath 0eavers is simple and effective in the

fact it selects person and place him at ri#ht place in order to himself the /o" at

Lokanath 0eavers reuires more of "oth technical as well as educational knowled#e.

The reuirement source of mana#ement and technical staff are advertisin#. It is not

directly done "y the company. It is done "y the industrial department. Thus

department advertisin# the vacancies in the news paper employees. The reuirement

works is direct contact recommendation. Thus is directly done "y the company itself.

The company also recruits candidate throu#h internal promotion. Society provides

promotion only for secretary post. It is "ased

SELECTION


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Selection is an important function of personnel mana#ement. It is the process

of choosin# ri#ht candidates to the ri#ht position at ri#ht time. It is not a simple

process "ecause it involves the re/ection of more people that selected department. It

wants to take into account num"er of factors like the skills$ a"ility$ e!perience$

ualification attitude etcB.

In the word of 2ate yarder= selection is the process in which candidates for

employment are divided into two classes those who are to "e offered employment are

divided into two classes$ those who are to "e offered employment and those who are

not=

Hsually in Lokanath weavers the selection is done "y the department in case

of mana#ement and technical staff mem"ers industrial department provides a rank list

of the society and on the "asis of the list mem"ers are selected and placed at the ri#ht

place at the ri#ht time

TRAINING

Trainin# is the process of increasin# the knowled#e and skill for doin# a

particular /o". Trainin# is must for newly appointed employees to perform the /o"

assi#ned effectively. The purpose of trainin# is "asically to "rid#e the #ap "etween /o"

reuirement and present competence of an employee$ 4dwin -.Alippo days


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THE MAIN OBJECTIVES OF THE TRAINING IS

1. Introduction of new desi#ns

(. roduct diversification

6. roduct development

'. uality improvement

5. evival of traditional craft

*. Improvement on the dyein# methods

>. educe wasta#e

AS PER THE TRAINING PROGRAMME THE TRAINERS HAS TO

PROVIDE CERTAIN PRODUCTS SUCH AS

1. Sarees with e!tra wrap "oarder and e!tra pillow(. 2othi with lo""y "oarded desi#n

6. Aurnishin# with multi treadle weavin# work

'. Terry towel and "ed sheet

5. -ath mat and floor mat

*. Shirtin# with fi"er composition and style and pattern

INDUSTRY RELATION

The industry relation is used to denote collective relationship "etween

mana#ementJ employees and #overnment in any industrial or non industrial

or#ani+ation under the present day factory system of industrial production in two

parties who came into direct contact with each other are the mana#ement representin#

the employees. Industrial relation is not a new phenomenon "ut the #rowth of

industries has made of comple!

Lokanath 0eavers Industry keeps #ood industrial relationship with mem"ers

and "oard of directors. ) work committee is formed for redressin# the #rievances of

the workers. If the #rievance is occurred in the dyein# department the committee

constitutes dyein# master$ secretary$ "oard of directors

STRIE AND LAY OFF

Strike means that employees are said to "e on strike when they stop workin#.

The stop pa#e of work should "e pay #roup or "ody of person hence if one employee

stop workin#$ it cannot "e a case of strike. The "ody of person should also "e

employed "y the industry to work.


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)t the Lokanath weavers durin# the period of "uy off no wa#e on fa"rics paid

in the history of Lokanath weavers no strikes arrived at all.

GRIEVANCE HANDLING

)t L:0S LT2 the followin# procedure is adopted to handle the #rievances of

workers in most possi"le way they are

• 4nuiry is done "y 0eavin# master or "y dyein# master to find out the

route cause of pro"lems

• )n employee is #iven the chance to present the pro"lems and to e!plain

the involment in the pro"lem

• 0eavin# dyein# master present the root causes to secretary "e a#ain

conducts a detailed enuiry in to pro"lem

• :onductin# a "oard meetin# and secretary present the pro"lem and su##est

solution

• Su##estions are discussed with "oard of directors

• )fter discussion finali+in# unit a"le solution

THE REASONS FOR GRIEVANCES ARE FLOWS

1. Low wa#es

(. Less incentives

6. 8"/ection to a particular work

'. Inadeuate welfare measures

5. In disciplined "ehavior

*. Lat off

TRADE UNION

The term trade union means a union or association of workers formed fore

lookin# after their interest "y stren#thenin# their "ar#ainin# power.

In a democratic country workers en/oy the ri#ht to com"ine themselves into an

or#ani+ation for protectin# and promotin# their interest.C.-arou Says the ri#ht if the

workers to com"ine and at in com"ination on their own interest is one of the essential

freedom of modern civili+ation the or#ani+ation of workers are known as trade union.


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Sharp difference in culture and opinion "etween the workin# class and mana#ement

#roup #ives rise to trade unions

)ccordin# to the Indian trade union at a trade union is a com"ination formed

for the purpose of re#ulatin# the relations "etween the workman and employee or

"etween the workman and workman and employee or "etween the workman and

workman$ or "etween the employees and employees for imposin# restrictive

candidates on the contract of any trade or "usiness. ) trade union is a or#ani+ation of

employees in which the workers find the power attack on their pro"lem

)ccordin# to @2, cole ) trade union means an association of workers in own

or more occupations an association carried on mainly for the purpose of protectin#

and advancin# the mem"ers economic interest on connectin# with their daily work.

In Lokanath weavers industry that e!ist two trade union namely

:,H

ICTH:

RETIREMENT

In L:0S retirement is at the a#e of 5>. )fter retirement they are paid

#ratitude dependin# on their services.

DISCIPLINARE ACTION TAEN AT LCWS LTD

8ral reprimand

2omestic enuiry

Aindin# of the enuiry

0ritten warnin#

Suspension

2ischar#e

2ismissal


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SAFETY MEASURES TAEN BY THE LCWS

4LIIC)TI8C 8A ,))2S

4S8CC4L 8T4:TI4 4HI44CTS

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84 L)38HT )C2 24SI@C

84 T)ICIC@

S8T 4CHI3 )C2 :,4:KIC@

LEAVE STRUCTURE AT LCWS LTD

In adeuate leave facility is an important cause of a"senteeism. Leave "enefits

can en/oy "y the workers only if they have an at least ('7 days of attendance and for

A):T8I4S ):T 19'%. The society provides a total of days of leave for staff

mem"ers and workers and also provided payment instead of casual leaves.

TOEN SYSTEM

In this token system is used to make the attendance of the works. There e!ist

token "oards from the workers at the time of their arrival have to take one token each

and put it on the "o! provided for the purpose. The society starts its function from

%.67 am and late comin# of workers arrival after the permitted time will "e market as

a"sent

MONETORY AND NON-MONETORY INCENTIVES

MONETORY INCENTIVES

EPE

)s per the employee’s provident fund and miscellaneous provision )ct 195( a

provident fund shall "e esta"lished for the "enefits of worker. Hnder this scheme

monthly deduction from the employees are made. The total amount is despite with the


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provident fund commissioner in the prescri"ed manner. 8n superannuation the

employee #ets full "alance with the interest

GRATUITY)s per the payment of #ratuity )ct 19>( all employees are eli#i"le for #ratuity

irrespective of their wa#es. The society #ive prime importance for the safety or

welfare of workers and in order to ensure industrial safety the society provides safety

education trainin# to workers and supervisors.

WAGES AND SALARIES

-oth wa#es and salaries are paid in same formation. That is "asic wa#e or

salary plus dearness allowances

0)@4S M "asic wa#es N 2)

S)L)3 M "asic salary N 2)

BONUS

-onus is cash paid for carryin# out task. Hsually society paid ma!imum

minimum "onus to employees

MA!IMUM BONUS

If in an accountin# year the profit earned "y the industry is ma!imum then the

employer should day "onus in proposition is to the salary or wa#es earned "y the

employee durin# that accountin# year. @enerally in a co&operatin#. Society the

ma!imum "onus paid is (7? where as the L:0S LT2 had paid a "ones of 57? of

the employee.

MINIMUM BONUS

The minimum "ones which an employees is reuired to pay even if it firm

suffer losses durin# the accountin# year is %.66?

WAGES PAYMENT

In L:0S pa#e payment is "ased on task completed usually workloads for five

"undles are #iven per day. )nd if the workers are not a"le to complete it in particular

day they are allowed to cover it "y the ne!t day. In the case of dama#es in the cloth

carelessness of day of the worker the cost of such cloths will "e recovered from the

wa#e of such workers.


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DECISION MARETING

In L:0S the decisions are taken "y "oard directors and the secretary the

"oard of directors havin# the meetin# a fortni#ht or often it the necessary to conduct

the affairs of the firm. The president shall preside over the meetin# of the "oard

several think are pointed out and discussed in the meetin#. ainly the discussion in

a"out the short$ comin# of the year pro"lem faced presently discussion re#ardin# the

payment. ro"lem of work etc. the uorum for the meetin# "oard of directors shall "e

decided "y ma/ority of vote. If there is an euality of vote the presidents or other

presidin# mem"er shall have a castin# vote.

Co mem"er of the "oard of directors shall "e present at meetin# of the "oard

when any matter in which he is personally interested is "ein# discussed increase of ur#ency where there may not "e sufficient time to convene a meetin# of the "oard of

"y the "oard of directors$ the secretary may o"tain the order of the "oard of directors

"y circulation of papers amon# the mem"er present at the head uarters of the firm

such decision arrived in circulation shall "e placed "efore the meetin# of the "oard of

directors for their satisfaction

roper decision helps the firm to attain the o"/ectives and #oals.


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B(., () D',+%&(,-

S+%,+&.,

P+,-($ '$ C.,+

26

PERSONNEL DEPARTMENT CHART


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27

FINANCE DEPARTMENT

Ainance department is the nerve centre$ which maintains systematic records

and controls income and pedicure of the factory. )ccount officers is the "oard of the

department. ,e was assistant accounts department

Ainance mana#er is responsi"le for the day to day financial activities of the

firm. )t the end of the financial year or period the financial mana#er importuned

mova"le property in the or#ani+ation is called nerve centre.

In Lokanath weavers industrial co&operative society$ the society has a #ood

finance department. They are recordin# all the financial dealin#s of the or#ani+ation.

The company is followin# dou"le "ook keepin# system.

FUNCTION PERFORMED BY FINANCE DEPARTMENT

1. reparation of finance statement at monthly half&yearly inte#rals

(. aintainin# of cash "ook$ "ill vouchers$ "ank "ook$ involves$ /ournals etc..

6. econciliation of "ank "alance

'. eceipts of fi!ed deposits

5. Transfer of found to the "ank account

*. ecordin# all the transitions in appropriate "ooks.

>. :alculatin# the cash reuired for day to day operations

%. epayment of loan and its investment

9. -ud#etin#

17. reparation of trail "alance

11. reparation trainin# and profit and loss account and "alance sheet


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28

SOURCE OF FINANCE

The main source of funds is raised from share capital from mem"ers. ) fund

forms various. @overnment share$ district co&operative "ank and income from assets

i.e empty and waste cotton.

DUTIES OF FINANCE MANAGER

Ainancial plannin#

rocurement of fund

4stimatin# the capital reuirement

Source of fund

)llocation and utili+ation of funds

2isposal of surplus

Ainancial control

FINANCE DEPARTMENT AT LCWS LTD

In Lokanath weavin# company financial calculation is done "y the financial

auditor$ who himself prepares the accounts and statement of the company. Aurther the

accounts are "alanced "y the auditor and secretary check and then handover to "oard

of directors.

SOURCE OF FINANCE

4very company should maintain relia"le source of finance. Such source

should "e continues source. The main forces in L:0S are

•

Share capital• :ash credit

C"#$%"&

The company has share capital of (('77 and #overnment share for 5'7777 and

a total of >*('77

:apital of the society

:ompany share capital ((('77


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29

@overnment share capital 5'7777

Total share capital >*('77

CAPITAL STRUCTURE

:ompany reuires capital to carry out its operation capital structure refers to

the completion or make up to the "i# term source of funds and as preference shares

de"entures and loans. There should "e correct preparation of these finance to the help

an optimum capital structure

ACCOUNTING POLICIES

The accountin# policies of L:0S areO

aE The company maintains its amount on the historical cost conversation in

accordance with #enerally accepted accountin# principles and compliances

with the accountin# stand of the companies act 195*

"E Ai!ed assets are valued at the cost for acuisition on less depreciationcE etirement "enefits showed inactivity

WORING OF THE COMPANY

There has "een increase in "oth production and sales as compared of last year.

:ompared with this year company. roduct has made #ood trust in its traditional local

markets. The company earned a tradin# profit of 56*577.((. (717. It is ('77'(.((

more than the previous tear.

WORING CAPITAL

The term workin# capital literally means the capital reuired for a day to day

workin# of the "usiness such as purchasin# raw materials payment of wa#e etcB


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30

)ccordin# to Shu"in


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31

dE 8ut of the "alance$ sum not e!ceedin# two months’ salary any as the

description of the #eneral "ody is paid a "onus to the mem"ers of the

-oard

eE The "alance if any is added to the reverse full all turn dispersi"le and

invisi"le profits are also taken to the reserve fund.

DEPOSITS

Lokanath weavin# company may accept deposits from the mem"er and non

mem"ers with a view of promote thrift and savin#. 2eposits may at the discretion of

the "oard of directs received at any time form mem"ers and none mem"ers. 2eposits

are another part of "orrowin# there is mainly three deposits in L:0S Ltd

I. They are

II. Thrift deposits

III. Ai!ed deposit

I. ecurrin# deposit

MA!IMUM BORROWING LIMIT

The total "orrowin# of the firm "y "oth way of deposits or other wise and

whether from mem"er or other includin# the state #overnment shall not at any time

e!ceeds ei#ht times the paid up share capital plus the reserve fund.

OTHER BORROWINGS

It shall "e competent to the -oard of directors to "orrow funds "y way of

deposits either for mem"ers or from institution re#istered under the co&operative

central -ank. The Lokanath 0eavin#. :ompany usually "orrows funds from co&

operative -ank. -ut no they have started raisin# fund from state -ank of Travancore

and union "ank of India. The -ank also provides financial assistance to the company.

TA!

L:0S Ltd does not pay any ta! for the handloom products. -ut they pay

ta!es for tim"er and for some raw materials which "ein# "ou#ht up in the industry.

-ook and )ccounts aintained -I L:0 ltd


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32

• inutes "ook for recordin# the proceedin#s of the #eneral "ody mem"ers

admission re#ister and nomination re#ister pay "ook cash "ook and receipt

"ook

• Share application re#ister

• e#ister of fluid resource

• @eneral led#er and voucher

• Led#er of "orrowin#s suspend accounts re#ister

• e#ister of monthly receipt and dis"ursement

• e#ister of dividend

FINANCIAL STATEMENT

In L:02 ltd financial auditor records the day to day happenin# of the firm for

affection participation in the affairs of the firm for affairs of the firm. )ll entries are

recorded in the "ooks and the document re#ularly and completely

The need of financial statement thus arises select the entire picture of the firm.

Ainancial statement comprises of

• Tradin# or manufacturin# account

• rofit and loss account

• -alance sheet

• Statement re#ardin# the receipt and payment account


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33

PRODUCTION DEPARTMENT

roduction is any process or procedure desi#ned to transform a set of input

element into a specified set output elements. roduction is the "asis activity all

industrial units. )ll other activities revolve step&"y&step creation of one form of

materials into another throu#h chemical or mechanical processin# to create or

enhance a utility of products or services

roduction mana#ement is conserved with plannin# or#ani+in# directin# and

controllin# the production system as to produce #oods of the fri#ht uality in the ri#ht

ualities accordin# to the time schedule and at minimum cost in involves decisions

makin# concerned with production process

roduction mana#ement since lon# has "een associated with a factory

situation where #oods produced in physical sense

F"'%()* +", / 0$/0

)ny premise in which persons are employed for the purpose of makin#

alertin# repairin# ornamentin#$ finishin# clearin# washin# "reakin# demolishin# or

adopted for sale any article.

P)(0'%$(/ "* 0$/0 ",

The conversation of inputs& men machinery$ money materials$ methods and

mana#ement into output throu#h a transformation process=

ictorial modal of production mana#ement

La"our materials ener#y Input

lant and facilities rocesses

roducts or services 8utput


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34

AIMS AND FUNCTIONS OF PRODUCTION DEPARTMENT

roduction is the functional area reasona"le for turnin# Input in to finished

outputs throu#h a series of production process. The production mana#er is reasona"le

for makin# sure that raw material are provided and make into finished #oods

effectively. ,e or she must make sure that work is carried out smoothly and must

make sure. That work is carried out smoothly and must surprise procedure for makin#

work more efficient and more en/oya"le.

FIVE PRODUCTION SUB-FUNCTIONS

In manufacturin# or#ani+ation the production function may "e split into fivesu" function

1 P)(0'%$(/ #&"//$/

The production plannin# departments will stands and tar#ets for each

section of the production process. The uality of products comin# of a

production line will "e closely monitored. In "usiness focusin# on lean

production line will "e closely monitored. In "usiness focusin# on learn

production$ uality will "e monitored "y all employees at every state of

production rather than at the end as is the case for "usiness usin# uality

control approach.

2 #)'+", D#")%/%

The purchase department will "e reasona"le for providin# the materials

components and euipment reuired to keep the production process runnin#

smoothly. ) viral aspect of this role is ensurin# stocks arrive on time and to the

ri#ht uality.

3 ,%() D#")%/%

The store department will "e respondin# for stockin# all necessary

tools$ pares raw materials and euipment reuired to service the

manufacturin# process. 0here sourcin# is unrelia"le "uffer stocks need to "e

keep and the use of computeri+ed stock control system keeps at minimal "ut

necessary level for production to continue unhindered

4 0,$/ "/0 %'+/$'"& ,##()% 0#")%/%


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35

The desi#n and technical support department will "e responsi"le for

researchin# new products or modification to e!istin# ones$ estimatin# cost of

reproducin# in different uality and "y usin# different methods. It will also

responsi"le for the desi#n and testin# of new products processes and product

types. To#ether with development may also "e responsi"le for work study and

su##estions as to how workin# practices can "e improved

5 W()6 0#")%/%

The work department will "e concerned with manufacture of

products. This will include the maintenance of the production line and other

necessary repairs. The mark department may also have responsi"ility for

uality means fitness for product i.e$ product process or service should do

e!actly what is e!pected of it.

PRODUCTION DEPARTMENT AT LCWS LTD

Lokanath weavin# company is mainly as portin# company the product is

produced accordin# to the order of the specified uality$ desi#n colour etc. for their

customer. In most cases the customer #ives a sample and place orders. The weavin#

master checks out the sample and identifies the particular yarn. It there is no such

stock of yarn$ then they purchase it from the market. The color of the yarn is chan#ed

from the date house after identifyin# the material needed for the sample production

process starts.

MACHINERY AND E7UIPMENTS

The company use only two machines and are availa"le from outside the state

at locally. The society use variety of other euipment these are availa"le from the

district itself and sometimes the societies itself manufactures these euipments with

the help of carpenter

BY PRODUCT

-y product is the product which is made from the principle raw materials in

order to avoided the waste of the material.


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36

In L:0S LT2 products when the specific order for one item is cancelled the

"yproduct the L:0S LT2 are "a#s purse shoppin# "a#s etc. this result in the

effective utili+ation of the firm.

PRODUCTION PROCESS

Sta#e .1

1 -oilin#

( -leachin#

6 0ashin#

' 2yein#

5 2ryin#

Sta#e .(

1. 0arpin#

(. 0arp /oinin#

6. 0eavin#

Sta#e .6

1. Ainishin#(. :uttin#

6. ackin#

PRODUCTION DEPARTMENT CHART


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SECRETARY

WEAING !ASTER DYEING !ASTER

WARP "OININGWARPINGWEAING WINBING

DYEING SECTION

WORKERS

WORKERS WORKERSWORKERS WORKER

37

PLAN LOCATION


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38

Location of an industry is important as the choice of location of "usiness or a

shop in a city$ unscientific and unplanned industriali+ation is harmful not only to the

industrial unit "ut also to the social and economic structure of the industry as a whole

L:0S LT2 is situated :,8) 0,I:, IS )-8HT 6.5 )0)3 A8

Kannur ailway station and workin# on common work shed with other facilities the

day house office "uildin# etc.. the industry located at :,8) offers the availa"ility

also it offers a competitive market for the firm.

WHY DYE HOUSE APART FROM THE SOCIETY

In L:0S LT2$ 2ye house located apart from the company to make society isa town area and is located nearer to schools #eneral li"rary etc. in the dye P house

there is the use of chemicals which makes the environment as polluted. The reason is

to make fluent of environment as polluted. The reason is to make fluent of waste

water. 2ye house of L:0S LT2 provide a water purification system which helps to

clean the waste water. This cleaned water fall info the nearest river$ thus the society

act as eco& friendly as a whole.

L)C L)38HT

lan layout is referred to as the arran#ement and location of different

departments and of the machinery in a department so that optimum utili+ation of

space availa"le can "e made with the view to ena"lin# the plant to function in an

effective manner.

) complete layout pro/ect the master plan for physically inte#ratin# the factors

of producin# which are reuired in the premises. lant layout results in hi#h material

handlin# costs$ ideal machinery lar#e in process inventories and e!cessive space

reuirement to mention only a few of the conseuent inefficiencies.

In Lokanath weavin# company the yarns which have "een stored or purchase

moves to the dye house for dyein# the yarn. )fter dyin# it #oes for windin# and them

warpin# after warpin# if moves in to weavin# section then to cuttin# and stickin#


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39

section. )fter the producin# is moved to packin# section further it is stored till the

delivery.

PRODUCING PLANNING AND CONTROLING

-efore startin# any work it is necessary to plan property for #ettin# "etter

results. roduction plannin# involves the plannin# of various input like men

machines$ materials etc. for a #iven period of time so that the customer could #et the

ri#ht uality or products at the ri#ht place price and at ri#ht time.

In L:0S LT2 pre&plannin# is done "y for castin# the holiday i9n the last 6

years (717$ (711$ (71( the production were *5$'%$6>$'.77$*'$>7$177.77 and *($1%7*5.77 rupees respectively. )vaila"ility of raw material and customer needs are the

"ase for predation predate controllin# activities are done "y the secretary in the

society.

LIGHTING

Li#htin# is of the physical facility reuired in factory. )deuate and #ood

li#htin# in necessary for a worker so that he may see minute detail of his /o" with ease

and accuracy. Li#htin# is said to "e #ood when it is free from #alleries and is properly

diffused its color should "e pleasant and its flow should also "e direct and steady

In L:0S LT2 companies provide dayli#ht an arftification illumination totally

provides with 117 tu"es '% tu"es is used in the weavin# department itself.

VENTILATION

It means to the free flow of air from outdoor and vice versa. entilation may

"e natural and artification ventilation.

In L:0S LT2 provide only natural ventilation throu#h doors windows$ air

holes etc. for workers. The staff mem"er provided with artificial ventilation that is use

of fans.


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40

PURCHASE DEPARTMENT

urchase is a mana#erial activity that #oes "eyond the simple act "uyin# it

includes research and development for the selection of material and follow up to

ensure timely delivery of smooth flow of production

In L:0S LT2 the purchase department is set up under office administration

here$ the material needed for the production process. So the purchase department

makes availa"le the needed stock at the reuired time for the smooth operation of

production.

RAW MATERIALS

aw materials are those industrial #oods which in part or in whole "ecome a

portion of physical production or economy in stora#e transportation or handin#

3arn is a lon# continues len#th if inter looked fi"er suita"le for use in the

production of te!tiles sewin# weavin# rope makin# etc.

Cature or types determine which type of cloth sheets LIK4 (>7s yarn (1*

yarns usin# for weavin# more soft cloths.

DYES

:ompany purchase a variety of chemical and dye for dyin# processes. ,ere

Qvat’ dyes are suin# for dyin# nature determines what uantity reuired for each

dyin#.

CHEMICALS

The society use chemical for "oilin# "leachin# and for colorin# the yarn. The

color of the yarn is chan#ed "y addin# the chemicals. Some of the chemical are not

availa"le from the local market. Itself they are purchased from aharashtra$

:oim"atore and )hmada"ad.


41/69

SECRETARY

WEAING !ASTER

WORKETS

DYEING !ASTER

41

PURCHASE DEPARTMENT

7UALITY CONTROL


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42

uality of products and workin# process are check in process are check in

uality controllin#. It is necessary for the production of #ood with hi#h uality. There

for uality controllin# is done "y three technical supervisors. 2yein# master is the

supervisor in dyin# section the #iven instruction to the worker$ fi! the uality of dyes

reuested and ensure the uality of yarn after dyein#.

0eavin# master supervise weavin# process in weavin# section. ,e #ives the

direction for weavin# different types of materials in various patterns. ,e measurin#

the uality after weavin# the common technical supervisor. ,e controllin# the uality

of the products after finished process is conducted for o"tainin# of #ood uality it the

material.

PRODUCTION PROBLEM AT LCWS LTD

1. Cone availa"ility of raw material

(. :ause delay in case of new patterns

6. Con availa"ility of adeuate num"er of workers

'. rice of raw material chan#e at a time

5. Hna"le to manufacture the while color and li#ht color products.*. 2urin# rainy season it is difficult to dryin# the yarn$ it cause delay

>. atchin# pro"lems.

MARETING DEPARTMENT

arketin# is the process of communicatin# the value of product or services to

customers. arketin# mi#ht sometime "e interpreted as the art of sellin# product "ut


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43

sale is only as the part of marketin#. arketin# is the overall strate#y and function of

promotin# of service to customers.

arketin# is the link "etween society’s material reuirement and its economic

pattern satisfies the needs and wants throu#h e!chan#e process and "uildin# lon#

team relationship. The process of communicatin# the value of product or service

throu#h positionin# the customers. arketin# can "e looked as an or#ani+ation

function and set the process for creatin#$ deliverin# and communicatin# value to

customers

arketin# is the science of choosin# tar#et market throu#h market analysis

and market se#mentation as well as understandin# customers "uyin# "ehaviors’ and

providin# superior customer value.

Thus marketin# is the process of providin# the ri#ht product of the ri#ht

uantity in the ri#ht place at the ri#ht time. It is the process of creatin#$ distri"utin#$

promotin# and pricin# #oods$ service and ideas to facilitate satisfyin# e!chan#e

relationship in a dynamic environment.

COMPONANTS OF MARETING CONCEPTS

The components of marketin# concept are as under.$

1. Satisfaction of customersO

In the modem area$ the customer is the focus of the or#ani+ation. The

or#ani+ation should aim at producin# those #oods and services which will lead to

satisfaction of customers.

(. Inte#rated marketin#O

The function of production$ finance and marketin# should "e inte#rated to

satisfy the needs and e!pectations of customers.

6. rofita"le sales volumeO


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44

arketin# is successful only when it is capa"le of ma!imi+in# profita"le sales

and achieves lon# run customer satisfaction.

IMPORTANCE OF MARETING

The importance of marketin# can "e discussed in three heads as consumers$ firms and

society.

1. Importance to consumersO

arketin# provide information a"out product and services. It helps them to

know the "enefits and techniues of product throu#h advertisin#$ pu"licity and

pu"lic relation.

• arketin# provides satisfaction to customers "y #ivin# different

product to meet their demand and taste when they need.

• arketin# help to developin# standards of livin# throu#h providin#

technolo#ical product and services

• arketin# increase the "uyin# ha"it of consumers mainly throu#h

advertisement$ offers and discounts. :onsumers "uy more on fewer

prices.

(. Importance to firmsO

• arketin# minimi+e the risk of distri"ution throu#h adoptin#

proper and effective distri"ution channels such as warehousin# and

transportation system.

• arketin# helps in plannin#. It provides valua"le information to

mana#ement a"out the market includin# consumer demand$ cost of

production and sales.

• arketin# helps to ma!imi+e the profit. The various information

and statements relatin# to sales$ production etc helps to reduce

unnecessary cost and utili+e the revenue in proper way$ it makes

more profit.

6. Importance to society

• arketin# creatin# employment opportunities.

• arketin# increase the standard of livin# of the people.

• arketin# utili+e$ natural$ financial$ physical and human resources.

These resources help economic development of the country.


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45

• arketin# "rin#s proper development of nation. The lar#e num"er

of "usiness creates travellin# facilities such as road$ railway$

seaport etc with the help of @ovt. Aor the e!port and import

process.

MARETING FUNCTION

arketin# function is defined as all activities of operation or service "y which

ori#inal product and the final consumers are linked. )ll marketin# functions can "e

classified into four. These are as followsJ

FUNCTION OF MARETING


46/69

BUYING SELLING SELLING

!ARKETING INFOR!ATION

!ARKETING FUNCTION

RESERCH ECHANGE FACILITATINGPHISICAL SUPPLY

STORAG WARE HOUSE TRANPORTATIONPRODUCT PLANNING DEELOP!ENT!ARKETING RESERCH

RISK BEARINGFINANCING STANDARDISATION GRAN

46

RESEARCH FUNCTION8


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47

The research function of marketin# is that ena"les you to #enerate adeuate

information re#ardin# your particular tar#et market. 3ou must carry out adeuate

research to identify the si+e$ "ehavior$ culture$ "elieve$ #ender etc of your tar#et

market. This function is su" divided into twoJ

"9 M")6%$/ ),")'+8

It refers to the intelli#ence service of the or#ani+ation. arketin# research helps in

analy+in# the "uyer’s ha"it$ popularity of the product$ effectiveness of advertisin#

media etc. arketin# mana#er takin# for "etter decision.

"E P)(0'% #&"//$/ "/0 0:&(#/%8

roduct must "e desi#ned and developed that it meet the reuirement of the

customers. Aor this systematic product plannin# and developed is necessary. roduct

plannin# and development refers to plannin# and developin# of product which e!actly

match to consumers.

E!CHANGE FUNCTION

@oods are produced for satisfyin# human wants. This is achieved only when #oods

finally reached the hands of consumers. The process of passin# #oods into consumers

hand is called e!chan#e. This function is su"divided into twoJ

"9 B*$/ "/0 ",,&$/8

The "uyin# function is performed in order to acuire uality materials for

production. The function of collectin# and concentratin# #ods of the same time from

different sources at a place is called assem"lin#. )ssem"lin# not only includes the

collection of #oods at one place "ut also #radin#$ storin#$ sortin# and assumption of

risk.

9 S&&$/8

The "asic o"/ective of all marketin# activities is to sell #oods and services and

make profit. Sellin# help a firm in achievin# its o"/ectives "y satisfyin# the needs and


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48

wants of customers. Sellin# means findin# the customers and transferrin# the #oods

them for them for money.

PHISICAL SUPPLY FUNCTION

There are the functions related with creation of place and time utilities. hysical

transfer of #oods from the manufacture to the consumer taken place "y means of

transportation and stora#e. This function includesJ

"9 T)"/,#()%"%$(/8

It refers to the physical movement of #oods or material from the point of ori#in to

the point of conception. It help the manufactures to "rin# material into factories and to

send to product into market. Transportation provides place utility to the product.

9 S%()" "/0 W")+(,$/8

Stora#e means holdin# and preservin# the #oods from the time they are produced

until they are needed "y customers. It ena"les #oods to "e made availa"le toconsumers whenever they are needed. Thus$ stora#e create time utility.

0arehousin# is an act of storin# and ascertainin# finished #oods so as to create

adeuate time utility at a minimum possi"le time.

'9 P"'6"$/8

In modem days it is used "y manufacturer to esta"lish his "randed product as

district from those of competitors. acka#in# is the function of desi#nin# and

producin# the packa#e of product.

FACILITATING FUNCTION8

These functions are su"sidiary in nature. -ut they have a direct relationship with

the marketin# process and hence important. These functions help the primary function

of "uyin#$ sellin#$ stora#e etc. This makes the marketin# functions easily. This

includesJ


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49

"9 F$/"/'$/8

It is reuired for production as well as for marketin#. arketin# reuired adeuate

finance for performin# various marketin# function. It is said that finance is the lye

"lood of modem "usiness. 0ithout adeuate flow of fund$ it is not possi"le to conduct

marketin# activities.

9 R$,6 ")$/8

The process of movin# a finished product from the point of production to the point

of consumption is characteri+ed with lots of risk such as product dama#e$ pilfera#e

and default etc. They "usiness is dynamic and full of risk and uncertainty.

'9 M")6%$/ I/()"%$(/8

The accurate marketin# information can chan#e the market condition. Successful

marketin# reuires correct and timely decisions. 2ecisions are taken on the "asis of

information relatin# customers wants$ their ha"its$ their purchasin# power$ supply and

demand market trend$ pricin# policies of competitors

09 S%"/0")0$;"%$(/ "/0 G)"0$/

Standardi+ation means esta"lishin# certain standard for a commodity on the "asis of

desired features like uality$ disa"ility$ colour$ si+e$ desi#n$ safety etc$ effectin# the

commercial value of a product.

@radin# means classification of standard product into certain classes. It is the process

of sortin# out the product into classes made up of unit processin#$ similar si+e and

uality

RECENT TRENDS IN MARETING


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50

• Social emphasisO

arketin# is concerned with the lon# term health and happiness of marketin# on the

net. The volume of "usiness throu#h net is increase.

• ore concern a"out ualityO

Cow a day a tendency is seen in the customers that are more concerned a"out uality

of the product than price. arketin# #ives importance to value added marketin#.

• etainin# customersO

Cow marketin# reali+e that retainin# e!istin# customer is more profita"le than

runnin# after new customers.

• 2iscount shoppin#O

2iscount shoppin# is the recent trend in the marketin# field. Cow a day’s companies

offer many types of discounts to the customers.

• Con "usiness marketin#O

arketin# is applied not only "usiness or#ani+ation "ut also non "usiness

or#ani+ation. oluntary institutions are adoptin# principles and practices to marketin#

to promote their ideolo#ies$ welfare schemes and pro#rammes in #eneral.

• :oncentratin# in rural marketin#O

There is a tendency on the part of many market to concentrate on rural se#ment to tap

the market potential.

• ,er"al worldO

) #reen revolution is takin# place in the fast movin# consumin# #oods sector. )

her"al ta# attached to a product is enou#h to make itself.

• ore and more competitionO


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Increasin# competition is an important features of modem marketin# and "rou#ht

a"out many chan#es in the field of marketin#

MARETING PROBLEMS OF SMALL SCALE UNIT

)ll type of "usiness enterprise face makin# pro"lems$ "ut these pro"lem are more

severe in case of small scale unit "ecause of lack of knowled#e$ inadeuate funds and

lack of e!perience. Some of marketin# pro"lem commonly faced "y small scale

entrepreneurs in India areJ

1E :ompetition from lar#e scale sectorO

-ecause of scarcity of recourses$ small entrepreneurs usually use inferior

technolo#y. )s a result their product are not standardi+ed. The o"solete technolo#y

used "y them #ets translated into inferior uality of products.

(E Lack of marketin# knowled#eO

ost of the small scale entrepreneurs are not hi#hly educated or professionally

ualified to have knowled#e for effective sales promotion. Lar#e scale unit mostly

have well known "randed names.

6E 0eak "ar#ainin# powerO

)t the time of purchase of inputs$ lar#e scale entrepreneurs mana#e to #et hu#e

discount and credit. Such facilities are not availa"le to small units.

'E roduct uality

It is costly and difficult for small unit to have uality testin# and evaluatin#

euipment

5E Lack of sales promotion


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52

Small unit lack the resources and knowled#e for effective sales promotion. Lar#e

scale units mostly have well know "randed names. They also have hu#e amount of

resources to spend on advertisement and other sales promotion tools.

*E :redit sales

The small scale enterprise is invaria"ly called upon to sell on credit. ,owever$ when

comes to purchasin# inputs$ they are denied li"eral credit facilities. )s a result they to

"orrow e!cessive work capital than actually needed. This increase the #eneral cost of

production and price$ makin# it non&competitive.

MAIN E!PORTING COUNTRIES8

Aollowin# are the main e!portin# countries of Loath 0eaversJ

@ermany

H.S.)

4n#land

Arance

Swit+erland

2enmark

The most demanded products in forei#n markets are curtains$ wall han#in#$ "ed

cover$ carpet etc.

MARETING MI!8


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PRODUCT

TARGET !ARKETPRICEPLACE

PRO!OTION

53

arketin# mi! is an important tool used "y marketin# mana#er to desi#n the

process of marketin# in an or#ani+ation. )ccordin# to hilip kotler marketin# mi! can

"e define as the amount and the kinds of marketin# varia"les a firm is usin# at a

particular time. arketin# mi! is ended to dis"urse a com"ination of four elements in

marketin# which are poorly known as ' s. They areJ

82H:T

I:4

L):4

88TI8C

arketin# mi! is developed to satisfy the anticipated needs of the customers and

to achieve the o"/ectives of the or#ani+ation. The elements in the marketin# mi! must

"e "alanced and properly co&oriented to achieve optimum marketin# mi!.

MARETING MI! CHART

MAJOR COMPETITORES

)+hikkal weavers industrial DworkshopE :o&operative society Ltd. Co.,L.IC2

D:E (7$


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SECRETARY

STORE KEEPER

DISTRIBUTORS

54

:hirakkal weavers :o operative FS. Society Ltd.C8,.(71

Irinav 0eavers industrial Dworkshop co&operative society Ltd. Co. ,L.1C2.

D:E19$

Kadathanad 0eavers industrial co&operative society Ltd. Co. ,L.IC2D2E1*>

Kanhirode 0eavers :o&operative FS Society Ltd. Co. LL&''

Karivellur 0eavers :o&operative FS Society Ltd. Co. A&1691

Kerala ,andloom 0eavers Industrial :o&operative Society Ltd. Co.,.((>

Kerala State ,andloom 0eavers :o&operative Society Ltd. D,)CT4E. . -.

Co. *'$

Kuthuparam"a 0eavers :o&operative Society Ltd

ayyannur 0eavers co&operative DFSE Society Ltd. Co. A&161%

ora+ha 0eavers Industrial :o&operative Society Ltd.Co ,L. IC2D:E5$

ayyannur 0eavers :o&operative Society Ltd. Co. A. 1675

MARETING DEPARTMENT CHART


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55


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56

CHAPTER-III

DATA ANALYSIS AND INTERPRETAION

DATA ANALYSIS AND INTERPRETATION

TABLE NO. 3.18

T"& ,+(


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57

Y") A0:)%$,$/

E=#/,,

N% S"&, A0:)%$,$/

E=#/,

R"%$( >?9

(711&(71( 1((1>1 (5((5%75 7.'%

(71(&(716 *9'*> ((6'196' 7.61

(716&(71' (*%(( (*67%>17 7.17

(71'&(715 '%167 (6>1955( 7.(7

T(%"& 2@@5 5@1 .2

S()'8 P)$")* D"%"

A0:)%$,$/ =#/, )"%$(8 )dvertisin# e!pense ratio is the relationship "etween

advertisin# e!penses and net sales.

)dvertisin# e!pense ratio M )dvertisin# e!pense Cet sales 177

CHART NO 3.1

20112012 20122013 20132014 201420150

0:1

0:2

0:3

0:4

0:5

1 2 3 41 2 3 40:48

0:31

0:1

0:2

A+,&'-'$ E;*+$-+ R.&'(

INFERENCE8 8nly a minute amount is spend on advertisement when compared

to the net sales. It is recommenda"le that a sli#ht improvement on advertisementcan "e made

TABLE NO. 3.28

T"& ,+(


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58

0eavers :o&operative FS Society$

Kannur

Lokanath 0eavers :o&operative

$Kannur

9 1%

Kannur 0eavin# ill$ahi 1* 6(

Kannur 0:SL$Kakkad 5 17

T(%"& 5 1

S()'8 P)$")* D"%"

CHART NO 3.2

C+")% ,+(


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59

ackin# 5 17

2iscount ' %

T(%"& 5 1

S()'8 P)$")* D"%"

CHART NO 3.3

C+")% ,+(


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60

T(%"& 5 1

S()'8 P)$")* D"%"

CHART NO 3.4

C+")% ,+(


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61

!.+ #*- 48=

F#,$'-'$ ).@,'%- 28=

S.,++- 24=

INFERENCE8 it is the manufacturin# and sellin# of made&ups $that "rin#s hi#h

rate of profit in the society. )nd the ne!t profit makin# product is furnishin#

fa"rics.

TABLE NO. 3.@

T"& ,+(


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62

P")%$'&"), N(. ( ),#(/0/%, P)'/%"

,i#hly satisfied 1> 6'

Satisfied (> 5'

Ceither satisfied nor

dissatisfied

( '

2issatisfied ' %

T(%"& 5 1

S()'8 P)$")* D"%"

CHART NO 3. @8

C+")% ,+(


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63

4!cellent 67 *7

ery #ood 1' (%

@ood 5 17

)vera#e 1 (

oor 7 7

T(%"& 5 1

S()'8 P)$")* D"%"

CHART NO 3.8

C+")% ,+(


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64

T(%"& 5 1

S()'8 P)$")* D"%"

CHART NO 3.8

P$ '+")% ,+(


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65

CHART NO 3.

C+")% ,+(


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66

CHAPTER-IV

FINDINGS SUGGESTIONS AND CONCLUSION

4.1 FINDINGS

Lokanath 0eavers Industrial :o&operative Society is a reputed society

en#a#ed in producin# variety of product with the help of efficient workers.

uality is the main factor that influences the purchasin# decision of the

customers of the society.

The promotional activities undertaken "y the society is less satiety.

0hile analy+in# the marketin# mi! of the society it is pointed out that the

society produce one product at different variety "y chan#e in the si+e and

shape.


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67

Lokanath 0eavers society protects and promotes handloom sector throu#h its

operation.

4mployees viewed that internet tradin# is the most profita"le trainin# method.

The main speciality of handloom product is it is traditional and hi#h uality.

The main pro"lem faced "y the society is competition.

There is an efficient marketin# department in Lokanath

4.2 SUGGESTIONS

Technolo#y up #radation is a must in these industries to meet the competition

and to widen the market for handloom product.

There is a need in reco#ni+e the value of handloom sector in sustaina"le

development.

-ud#et allocation has to increase with news scheme which address the

pro"lem of the sector.

) "etter facility like land water and electricity is to provide.


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68

Take measures to attack worker such as conduct seminar a"out the values of

weavin# and make aware a"out the varies @overnment offers provide to

workers.

ake constant search for activities of power loom and consider consumer

satisfaction id the ultimate #oal an always.

4.3 CONCLUSION

Lokanath 0eavers Industrial :o&operative Society is the co&operative firms

produce a variety of product to customers. They prefer "ulk orders from customers.

The society undertakes various market promotion schemes to attract its customers.

2ue care has "een #iven to customerUs needs and wants while marketin# their product.

2espite of all these the society is still facin# continuous loss mainly due to stiff

competition from ower looms and other weavin# society and also due to inefficient

marketin# activities. The society should avail assistance from the central and local

@ovt. Aor introducin# attractive marketin# edias. :ontinuous effort should "e made

in "uild up innovative marketin# schemes so as to attract its customers. -y doin# so


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the society can retain hi#h position in the locality and overcome a ma/or portion of its

difficulties "y "rin#in# constant improvement in the marketin# activities which

constitute a ma/or part of the society for its #rowth and pro#ress.

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