M.B.A.

Programme

CHAPTER NO. 1

INTRODUCTION & RESEARCH DESIGN

1.1 INTRODUCTION

Prior to the Industrial Revolution, small scale enterprises dominated the economic
scene, and selling was no problem. The chief problem was to produce enough goods for
nearby customers. Orders were obtained with minimum effort, and they were on hand before
goods were produced. In most firms a single individual supervised all phases of the business,
including both manufacturing and selling. Manufacturing problems received the most
attention. Selling and other marketing problems were handled on part time basis.
With the Industrial Revolution, which began 1760 in England and shortly after the
American Revolution in the United States, It became increasingly necessary to find and sell
new markets. Newly built factories were turning out huge quantities of goods of every
description. Their continued operation demanded great expansions in the area of sales
coverage, as adjacent markets could not absorb the increased quantities being manufactured.
But even under these circumstances other business problems took precedence overselling.
These were problems associated with hiring large numbers of workers, and acquiring land,
building, and machinery. To solve them, large amounts of capital had to be raised. The result
was that more and more businesses adopted the corporate form of organization- the day of
large scale manufacturing enterprises had arrived. First hand administration of all phases of
the operation being beyond the capabilities of most individuals, authority was increasingly
delegated to others. Separate functional departments were established, but sales departments
were set up only after the activation of manufacturing and financial departments.
The advent of specialized sales departments helped to solve the organizational
problems of market expansion, but another problem remained- communicating with
customers. Little by little, manufacturers shifted portions of the marketing function to
middlemen. At the start, goods were sold to retailers, who resold them directly to consumers.
Eventually, some larger retailers began to purchase for resell to other retailers, and; as time
passed, many of these evolved into wholesale institutions. Other wholesalers developed out
of the import- export business. The manufacturer’s sales department was becoming more
remote from consumers, and it was increasingly difficult to maintain contract with final
buyers and users of the product and to control the conditions under which wholesalers and

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retailers made their sales. Thus, in some respects the addition of middlemen to the channel of
distribution complicated the problem of market expansion.
Meanwhile marketing activities conducted by the manufacturer’s sales department
grew in importance. Many tasks, such as advertising and sales promotion, became
increasingly complex. One solution was to split the marketing function, a trend that is still
continuing. New departments were and are being organized for the performance of
specialized marketing tasks. Marketing activities today are carried on not only by the sales
department, but by such departments as advertising, marketing research, export, sales
promotion, and merchandising, traffic and shipping, and credits and collections. In spite of
this growing fragmentation of marketing operations, the sales department still occupies a
strategically important position. The underlying responsibility for the making of sales has not
shifted elsewhere. Businesses continue to rely upon their sales departments for the inward
flow of income. It has been aptly said that the sales departments is the income producing
division of business.
It has often been found that the sales and marketing functions in organizations are not
in tandem. This leads to a lack of coordination between the sales and marketing activities and
the business of the firm gets badly affected. If the organization attempts to swap the jobs of
the sales and marketing people, both sections resent the move, as they normally do not like
the other job. A marketing person may perceive sales activity to be more important than
marketing because it is the one that ultimately makes a marketing program successful.
Moreover, the sales department views the marketing department as being alienated from the
actual market, while the marketing personnel feel that the sales personnel do not properly
understand the behavior of the customer and, therefore fail to handle them effectively. This
belief makes the marketing people visualize their function as being superior to the sales
function.
This research is keen to study planning sales with special reference to Ghatge Patil
Industries Limited, Uchagaon (Kolhapur). The Ghatge Patil Industry is one of the top five
foundry industries in India. It is an organization with a symphony of men and machines, unity
and strength, strength to work as a successful organization. The united strength of 1250
dedicated minds. They strive consistently at achieving excellence in precision engineering
since 1960. The company is looking for expansion of its sales operations and market. In this
study the researcher has tried to find sales approach and has suggested some action for the
sales improvement of the company.
1.2 OBJECTIVES OF THE STUDY

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 To study the sales planning and sales policies of the company.

 To study planning and control of sales operations and control of sales costs of the
company.
 To study the advertising and sales promotion policies of the company.
 To study selection and management of channels of distribution of the company.
 To study branding, packing and labeling functions of the company.

1.3 RESEARCH DESIGN AND METHODOLOGY

 Defining the problem:

The company has expected sales but the customers are specific. In this project work I
am suggesting to company to increase the sales volume towards the other customers
(those who are not regular customers for company) as well as overseas market
potential for the company. So the project will give me a fair idea about what is the
exact problem faced by the company against their customers in the market and to see
how it affects the sales of Ghatge Patil Industries Limited. To give suggestions based
on the analysis made from the data collected.

 Collection of the data:

a) Primary data:
Data regarding the company is collected by interacting with the company guide.

b) Secondary data:
Secondary data was collected in various magazines, company’s annual reports,
journals and Web sites.

 Sampling Technique:
The sampling technique selected is Convenience sampling.

 Duration of the study:

The duration of the study is for a period of 60 days.

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 Analysis of the Collected Information:

It involves converting raw data into useful information by tabulating the data and
using Graphs to draw Inferences.

 Report research finding:

The research findings and personal experience will be used to propose suggestions and
recommendations to increase the sales of products and which will be useful to the company.

1.4 LIMITATIONS OF THE STUDY

Here, the difficulties experienced while conducting the study are given below.

 As this organization is very large in size, it is hard to study each and every aspect
related with sales planning and control.
 The company also has limitations to provide required information as they cannot
provide confidential information.
 The staff of the company has their limitations in providing information due to their
busy work schedule.

CHAPTER NO. 2
COMPANY PROFILE
2.1 INTRODUCTION
Ghatge Patil is located 400 km south of Mumbai on the Mumbai Bangalore national
highway. It is well connected by all means of transport, an international airport located at
Pune which is 235 km away and also a domestic airport located at Kolhapur. The closest sea
port is located at Mumbai. Kolhapur is also well connected to major cities like Mumbai and
Pune via road with state transport buses running between these cities at a regular interval.

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2.2 HERE IS HOW IT ALL BEGAN AT GHATGE PATIL INDUSTRIES

1960: Started as a partnership firm with a machine shop for jobbing work
1962: A small foundry unit was established
1966: Started manufacturing clutches and power takeoffs in technical collaboration with
Twin Disc
USA
1967: Manufacture of Marine Gear Boxes in collaboration with Parsons UK
1971: Manufacture of Automotive power take offs in collaboration with Dana Corporation
USA
1978:
 Developed earth moving assemblies of Komatsu, Japan
 Dresers, USA licensed for manufacture by Bharat Earth movers Ltd for Torque
Converters, steering clutches, Main clutches, brake assemblies etc.
 Pneumatic clutches and brakes in collaboration with Barufieldi, Italy
 Electromagnetic clutches and brakes in collaboration with ZF, Germany
 Export of Grey Iron and S.G. Iron castings like Brake Drums, Pulleys, Brake
Discs etc to USA, UK, Germany and Australia.
1979:S.G. Iron converter installed in collaboration with George Fisher, Switzerland.
1980: Modernization of foundry with installation of fully automatic high pressure molding
line by
Kunkel Wegner.
1992: Manufacture of Gate and Globe valves. API 6A accreditation received from Gate
Valves
1996: Received ISO 9001 and 9002 accreditation from BVQI.
1998: Medium Frequency induction furnace replaces main frequency furnaces.
2000: Shot blasting furnace installed to boost capacity. API 6D accreditation received.
2001: Cold box core making machine introduced
2002: Installation of HMC4, VMC1 and VTL1
2003:
 Installation of belec spectrometer with 25 elements.
 Installation of horizontal 75 liters cold core box machines
 Installation of second horizontal 80 litre cold core box machines
2004: Installation of press pour machine.

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2.3 PLANT LAYOUT OF THE COMPANY

 Total Area: - 88056 sq.m.

 Total Built Up Area: -

41572 sq.m.

 Measurements are
approximate.

1) Foundry 6) Product Machine Shop-1 A) Canteen

2) Core Shop 7) Product Machine Shop-2 B) Weigh Bridge

3) Foundry Engineering Division 8) Sand Drying Unit C) Casting Finishing

4) Empty Space Booth 9)Logistics D) Casting Painting

5) Parking plant E) Effluent Treatment

F) Heat Treatment plant

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2.4 ORGANIZATION CHART OF THE COMPANY

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2.5 FOUNDRY DIVISION

 Facilities

 Customers

 Products

 QA

 Facilities

 Engineering

 Core Shop

 Molding

 Melting

 Finishing

 Foundry

Scientific development process (Step wise)

1. Enquiry from customer

2. Feasibility Study
3. Clarification if required
4. Quotation Submission
5. Customer Acceptance
6. Communication from Marketing to FED for development

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7. APOP
8. Casting 3D model preparation
9. Mould scheme and runner system preparation
10. Conversion of mould scheme to 3D model
11. Pattern manufacturing bar chart
12. Equipment manufacturing through CAD CAM

13. Match plating

14. Trial casting
15. Casting inspection
16. Section of casting for internal defect
17. Radiography Magna flux if required
18. Correction if required
19. Second trial
20. Sample lot
21. PPAP documentation
22. Dispatch
23. Customer feedback

 Engineering

A. CAD

1. AutoCAD 2000 for 2D designing

2. Ideas 9M2 for 3D modeling
3. Unigraphics for tool path generation

B. CAM

4. Oerlekon Angus KD2 – MCT Vertical Machining centre

5. Boko Rotrifitted Vertical Machining centre
6. Co-ordinate Measuring machine

C. PATTERN SHOP

7. Plano Milling
8. General purpose machines
9. Drilling
10. Turning
11. Milling

 Core Shop

A. Roperwerk Cold box Core shooter: Capacity 16 lts – 2nos

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B. Hottinger Cold box Core shooter

C. GPI cold box core shooter: Capacity 80 lts
D. Span cold box core shooter: Capacity 35 lts
E. GPI cold box core shooter: Capacity 16 lts
F. GPI cold box core shooter: Capacity 6 lts
G. Span shell core shooter (Vertical)
H. GPI cold box core shooter (Horizontal)
I. Automatic cold box sand coating and distribution system
J. Continuous core drying oven

1. Capacity: 80 tons per day

2. Temperature gradient: Room temperature to 150 deg cel to room temperature

 Molding

Molding: High pressure molding line Kunkel Wagner

Sand Plant: Extensive mixer WM 100 Kunkel Wagner and Return Sand Cooler Kunkel
Wagner

 Melting

Molding: High pressure molding line Kunkel Wagner

Sand Plant: Extensive mixer WM 100 Kunkel Wagner and Return Sand Cooler Kunkel

 Finishing
A. Fettling

1. BMD shot blasting machine – continuous hanger type. Capacity 8MT

per hour
2. BMD shot blasting machine – continuous hanger type. Capacity 2MT
per hour

B. Painting

1. Continuous spray painting booth to paint the castings as per customer

specifications

CUSTOMERS

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 Domestic

1. Eicher Motors
2. Eicher Tractors
3. HMT
4. Indo Farm Tractors and Motors Ltd
5. JCB Ltd

6. L&T John Deere Ltd

7. Punjab tractors Ltd
8. Standard tractors
9. Tata motors
10. Volvo India Pvt. Ltd

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PRODUCTS

 Grey Iron

1. Cylinder Block
2. Carter
3. Differential Housing
4. Case Transmission
5. Engine bed frame
6. Clutch housing
7. Gear box housing
8. Crank case
9. Rear Axel Housing
10. Cylinder Block
11. Brake Drum
12. Differential Housing

13. Fly Wheel Housing

 Spherodoid Graphite Iron

1. Export Hub
2. Hub
3. Front Axel Support
4. Hub
5. Bogie Encourage
6. Export Lever
7. Crank Shaft

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QUALITY ASSURANCE

Quality Assurance at GPIND is well equipped to meet stringent customer

requirements. Each component/product has a quality plan to ensure quality is maintained at
each step. Periodical reviews by ISO and API help GPIND maintain the strict norms.

CERTIFICATIONS

BVQI:
Bureau Veritas Quality International certifies that the Quality Management System of
the Ghatge Patil Industries Limited has been assessed and found to be in accordance
with the requirements of the quality standards.
 Deutsche Bahn:
Manufacturer – Related Product Qualification for the Manufacture of Products for
Rail Vehicles.
 American Petroleum Institute:
Certificate of Authority to Use Official Monogram.

2.6 PRODUCT DIVISION

 Facilities

 Engineering

 Production

 Assembly and Testing

 Customers

 Domestic

 International

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METALLURGICAL TESTING

Spectrometer: Make: Baush and Lomb (USA) and Belec

 Microscope

Make: Carl Zeiss Jena (Germany)

 Universal Testing Machine

Leipzing (Germany)

 Engineering

Facilities used during engineering phase include CAD software for 2D development
of the product and general purpose machines such as tooling assembly, grinding,
drilling.

 Production

Production includes the use of following equipment:

A. CNC Machines

B. CNC Lathes

Heavy duty CNC vertical turret lathes

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C. Broaching Machines

Vertical broaching machine with 16 tones pull 1600 stroke length

D. Induction Hardening Machine

Radio frequency of 60 KW power rating

E. Jig Boring Machine

High precision co-ordinate boring machine ‘SIP’ Swiss make for manufacturing of
all tooling and precision components.

F. Gear Cutting Machine

Battery of gear hobbling, gear shaping and gear machines up to 8mm module and
400mm PCD

Balancing Machine

Horizontal and vertical spindle machines with dynamic balancing with weight
capacity of 100kgs.

G. Heat Treatment Equipment

1. Fluidized bed furnace

2. Salt beth furnaces

3. Nitriding furnace

4. Marquench furnace

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5. Tempering furnace

6. Boggie earth furnace

7. Annealing furnace

ASSEMBLY AND TESTING

The machine components are deftly assembled together by highly skilled workers. Each and
every finished product is carefully checked by experienced personnel, virtually making it
failure proof. Special care is taken to see that the products remain corrosion free while
shipping them overseas.

CUSTOMERS

 Domestic

1. Ashok Leyland, India

2. Bharat Earth Movers Ltd
3. Caterpiller India Ltd
4. Fiat India Ltd
5. Kirloskar Oil Engines Ltd
6. Laxmi Machine works
7. Larsen and Tubro
8. Oil India Ltd

9. ONGC

 International

1. Arab pumps, Jordan

2. Central Diesel, Indonesia
3. PC conductor Jassa Indonesia
4. Volvo Penta, Sweden
5. ABB vetco, USA
6. Cooper Cameron, USA
7. Pemex, USA
8. Wellhead Inc, USA
9. Wood Group, USA

PRODUCTS

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 Earth moving equipments

1. Torque Converters
2. Brake Foundation

 Industrial Valve

1. Gate valve
2. Pneumatic Actuator
3. Swing check valve
4. Ball valve
5. Well head assembly
6. Piston hydraulic actuator

7. Needle valve

 Transmissions

1. Automatic power takeoff

2. Electromagnetic clutches and brakes
3. Fluid couplings

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4. Industrial power take off

5. Hydraulic marine gear box
6. Marine power take off
7. Mechanical marine gear box

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COLLABORATIONS

Company Product Year

Clutches And Power Take

Twin Disc Inc.USA 1966
Offs

Parsons Engineering Co. UK Marine Gear Boxes 1967

Transfliud srl. Italy Fluid Couplings 1968

Automotive Power Take

Dana Corporation, USA 1971
Offs

Barufieldi Italy Pneumatic Clutches 1978

Electro Magnetic Clutches

ZF Friedrichshafen AG 1978
Germany And
Brakes

Sureflo Corporation, USA Industrial Valves 1982

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CHAPTER NO. 3

THEORETICAL BACKGROUND

3.1 SALES PLANNING AND CONTROL

Sales Management is generally acknowledged to be the backbone of marketing. Brech

defines it as “The over management of sales and it refers to only a specialized application of
the process of management as a whole.” According to the American Marketing Association
“The planning, direction and control of the personal selling activities of a business unit
include recruiting, selecting, training, assigning, rating, supervising, paying and motivating;
as these tasks apply to the personal sales force.” The ultimate objective of sales management
is to influence the customers of the target market to get sales orders. A sales force serves as a
company’s personal link to customers.

“Sales management” originally referred exclusively to the direction of sales force

personnel. Later, the term took on broader significance – in addition to the management of
personnel selling, “sales management meant management of all marketing activities,
including advertising, sales promotion, marketing research, physical distribution, pricing, and
product merchandising. In time, business adopting academic practice came to use the term
“marketing management” rather than “sales management” to describe the broader concept.
Then, the Definitions Committee of the American Marketing Association agreed that sales
management meant “the planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising, paying, and motivating as
these tasks apply to the personal sales force.”

The American Marketing Association’s definition made sales management

synonymous with management of the sales force, but modern sales managers have
considerably broader responsibilities. Sales managers are in charge of personal selling
activity, and their primary assignment is management of personal sales force. However,
personnel- related tasks do not comprise their total responsibility, so we call their personnel-
related responsibilities “sales force management.”

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Sales manager are responsible for organizing the sales effort, both within and outside
their companies. Within the company, the sales manager builds formal and informal
organizational structures that ensure effective communication not only inside the sales
department but in its

relations with other organizational units. Outside the company, the sales manager serves as a
key contact with customers and other external publics and is responsible for building and
maintaining an effective distribution network.

Sales managers have still other responsibilities. They are responsible for participating
in the preparation of information critical to the making of key marketing decisions, such as
those on budgeting, quotas, and territories. They participate- to an extent that varies with the
company- in decisions on products, marketing channels and distribution policies, advertising
and other promotion, and pricing. Thus, the sales manager is both an administrator in charge
of personnel- selling activity and a member of the executive group that makes marketing
decisions of all types.

Sales management is a key function in many kinds of enterprises. Manufacturing and

wholesaling enterprises encounter a wide range of problems in sales management. Retail
institutions, small and large, have sales management problems, even though the differences
(when compared to the problems of manufacturers and wholesalers) are so great that retailing
problems (at least in the academic world) are ordinarily considered separately. But some
retailers have sales management problems more akin to those of manufacturers and
wholesalers than to those of other retailers- the automobile dealer, the real estate broker, and
the direct – to consumer marketer all are in this category. Firms selling intangibles, such as
the insurance company, the stockbroker, the mutual fund, and airline, has problems in sales
management. Sales management problems exist even in companies not employing sales
personnel as, for example, in the company that uses manufacturers’ agents (rather than its
own sales personnel) to reach its markets; indeed, the problems of managing a sales force of
“independent outsiders” often are more complex than when sales personnel are on the
company payroll.

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Objectives of Sales Management

From the company viewpoint, there are three general objectives of sales management:
sales volume, contribution to profits, and continuing growth. Sales executives, of course, do
not carry the full burden in the effort to reach these objectives, but they make major
contributions. Top management has the final responsibility, because it is accountable for the
success or failure of the entire enterprise. Ultimately, too, top management is accountable for
supplying an ever- increasing volume of “socially responsible” products that final buyers
want at satisfactory prices.

Top management delegates to marketing management, which then delegates to sales

management, sufficient authority to achieve the three general objectives. In the process,
objectives are translated into more specific goals- they are broken down and restated as
definite goals that the company has a reasonable chance of reaching. During the planning that
precedes, g goal setting, sales executives provide estimates on market and sales potentials, the
capabilities of the sales force and the middlemen, and the like. Once these goals are finalized,
it is up to sales executives to guide and lead the sales personnel and middlemen who play
critical roles in implementing the selling plans.

Sales management, then, is influential in charting the course of future operations. It

provides higher management with informed estimates and facts for making marketing
decisions and for setting sales and profit goals. Largely on sales management’s appraisal of
market opportunities, targets are set for sales volume, gross margin, and net profit in units of
product and in dollars, with benchmarks of growth projected for sales and profits at specific
future dates. Whether or not these targets are reached depends upon the performance of sales
and other marketing personnel.

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Functions of Sales Management

The general functions of sales management or marketing management are given

below:

(1) Sales planning and sales policies

(2) Pricing policy and price fixing

(3) Advertising and sales promotion

(4) Scientific salesmanship, management and control of sales force

(5) Marketing research

(6) Planning and control of sales operation and control of sales costs.

(7) Selection and management of channels of distribution

(8) Branding packaging and labeling

(9) After sales service and satisfaction

10) Integration and coordination of all functions.

The Importance of Sales Planning

A sale planning is the first step in the sales management process. It guides the
organization in achieving its objectives in a systematic manner leading to profitability and
success. Planning is a prerequisite not only for achieving business success but also for
surviving in the present complex and ever- changing global environment. The importance of
planning can be understood in terms of its influence on different managerial functions. It is
discussed in the following section.

 Better Implementation of Corporate Plans

Planning ensures better coordination and implementation of corporate plans as it

influences other management functions like organizational design, selection, training,
monitoring and compensation of sales personnel.

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 Provide a Sense of Direction

Proper sales planning helps anticipating future events, but it should not be
confused with forecasting and budgeting. Forecasts and budgets give a future projection
based on the organization’s existing strengths and weaknesses, but does not consider
possible changes in these factors, because of changes in the organization in the future.
This narrow view can create problems because both the environment and the company
undergo dynamic changes over time.

 Focus on Realistic Objectives

Good sales planning helps the management avoids setting unrealistic
objectives that leads to unnecessary expenditure on recruitment of excess sales
personnel and promotional activities. It also helps minimize responses that are not
logical especially when decisions in response to unexpected conditions have to be
taken by sales personnel.
 Improve Coordination
A well designed sales plan leads to better communication and coordination
among sales personnel and management, reducing conflicts. Effective coordination
ensures the subordination of personal goals to organizational goals and to a greater
understanding of set objectives by sales personnel.
 Facilitate Control
Proper sales planning ensures that the organization has greater control over
sales volumes and is better geared to face unexpected demands in the future. Planning
provides the basis for control. The control function ensures that activities confirming
to developed plans are being carried out.
 Ensures Healthy Interpersonal Relationships
Planning helps in maintaining healthy relationship among sales personnel.
This can be achieved by involving them in the planning process.
 Reduce Uncertainty and Risk
An important element in the sales planning is to conduct a situational and
environmental analysis. This creates alertness among sales personnel about probable
situations, enabling formulation of proactive contingency plans.

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 Sales Planning

Planning is choosing from the alternative courses of action. It is a managerial

function. It involves the selection from among several alternatives, enterprise
objectives, policies and procedures, programs and schedules. A sale planning is a part
of marketing planning, covering sales forecasting, and sales programs to achieve sales
goals, and making a sales marketing or selling of the product- what is to be sold, how,
when and by whom it is to be sold. A sale planning gives us a full- fledged sales
program or sale campaign to be launched in the near future. The picture of the sales
program is based on objectives, policies and procedures. Planning is the primary
managerial function, and it precedes all other managerial functions.

We begin planning by laying down our objectives or the destination where we want to
reach. We outline the probable alternatives for taking a course of action to reach our
destination. We then proceed to evaluate these alternatives and finally select the most
appropriate course of action which will fulfill our set goals. We formulate our plan of
action. We then implement our plan of action. Sales controls assure realization of
sales targets. If necessary, we may have to modify our plan. Sales planning adopt the
technique of planning as usual and finds out ways and means to achieve the sales
goals economically, efficiently and at the right time.

Sales Policy

Policies are the guiding principles set by the company to govern actions, usually
repetitive actions. Sales policy provides the basic guide to thinking and action taken
by the executives within the sales organization under a given set of circumstances. A
sound sales policy covers the following important items: (1) Products or services to be
sold- type, number, variety and quality. (2) Customers of the products- types of
customers, size and location of customers. Market can be divided into smaller uniform
segments according to type of customers. (3) Branding and packing, (4) Selection of
channel of distribution. (5) Prices of products – sale price, discount resale price
maintenance. (6) Advertising and sales promotion.

A comprehensive sales policy and strict adherence to its provisions assure the success
of any business. The backbone of successful sales policies is consumer satisfaction
and customer

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goodwill, based on reputation for reliability and fair trade practices. Once a high
reputation is established through fair trading, the enterprise will face minimum sales
resistance, and it will gain considerable competitive strength. Sound sales policies,
reliable quality of goods and fair practices are the three pillars of firm’s credibility and
goodwill.

At present, sales policies are given a wider meaning and are synonymous with
marketing policies. Marketing mix represents a blend or combination of four ‘P’s: (a)
Product, (b) Price, (c) Place (distribution) and (d) Promotion and policies relating to
them give us a mix of activities to achieve marketing or selling objectives.

 Sales Organization

A good sales organization is a foundation for effective execution of sales

policy and sales program. A sales organization must be planned in detail and all
activities should be well coordinated and integrate to secure united efforts and
maximum efficiency. A sales organization is the medium to execute a sales plan.

Sales organization is the counterpart of the factory. Just as the factory produces goods
on a mass scale, in the same manner, the sales department, with the help of
salesperson, advertising and sales promotion, produces mass market and brings about
mass distribution through multiple channels of distribution. In a good sales
organization, all departments are carefully planned. There is adequate coordination
among all the departments. Each department or section should be self contained and
there should not be overlapping of functions. Divisions of labour and proper
delegation of authority create a sound sales organization. At the top, we have an
assistant vice president, below them a senior manager and deputy manager product
division, below them a junior superintendent, a senior officer and at last a supervisor.

 Importance of Sales Organization

The sales manager is responsible for coordinating and controlling all the activities of
the department with help of competent staff.

A sales organization is like a power station sending out energy which is devoted to the
advertising and selling of particular lines and there is tremendous loss of energy between the
power station and points where it reaches the customers. Therefore, there arises the great

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necessity of planning, organizing and controlling all sales efforts through a sound sales
organization – to prevent wastage in distribution.

Sales manager must be skilled in planning, organizing, coordinating and controlling

all the sales operations and must assure the optimum contribution of personal selling efforts
to the overall marketing objectives of the company.

Sales Related Policies Pertaining to the Product

The sales- related product policies of a company determine what products the company
should be involved with what products to add, what products to drop, whether to add or
remove a product line. These policies also lay down the company’s stand with regard to
product design and quality, after- sales service, product recall, warranties and repair.

 Product line policy

A product line is a set of related products sold by a company. The product line of one
firm may vary from another. Some firms may have a narrow product line while others
may have a broad product line. A firm may decide to have a broad product line and
leverage the corresponding increase in revenue the firm is likely to experience against
the production and engineering costs. The product line policies of a company are also
influenced by the amount of risk the company is willing to undertake. If a company
wants to add a new product to an existing product line, it needs to make significant
changes in its sales management policy.

 Product design policy

Product design policies indicate the frequency at which the company may make
changes to its product design and also refer to the extent to which product design
should be protected from imitation.

Sales- Related Policies Pertaining to Distribution

The success of a product in the market depends on a combination of several factors.

The distribution of the product determines the sales of a product and it must be effectively
coordinated

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 M.B.A. Programme

with various other factors such as product quality, its positioning, the marketer’s reputation,
marketing efforts and product promotion to ensure successful sales of the product. Ineffective
distribution can result in a massive drop in the sales of even established products.

The sale of products through distributors is dependent on the consistency in the

supply of products to the distributor. Instances of lack of stock or late delivery of supplies to
distributors make it difficult for the latter to meet the demands of the buyers and lead to a
significant drop in the sales of the product. Hence, the frequency and the regularity of
distribution play a vital role in efficient sales management. To a large extent, the promotion
of the product by the channel members depends on the relationship that the manufacturer has
with its channel members.

The sales planning process

A company should carry out research before formulating a sale plan. To start with, it
should collect past sales data from sales records and organize it in to various categories like
product, territory and customer groups. The sales manager should then study economic
conditions that may influence the company and the industry. Once the manager has adequate
data relating to past sales and the economic situations, he or she should take operational
decisions on the development of the sales plan. Decisions relate to the timing of the year
when the plan should be developed, place of the meeting and members who would
participate.

The sales planning process consists of the following basic steps.

 Setting objectives
 Determining operations to meet objectives
 Organizing action
 Implementation
 Measuring results against standards
 Re-evaluating and control

Setting objectives

A situational analysis followed by an environmental audit provides the

information necessary to determine sales objectives.

Internal situational analysis

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 M.B.A. Programme

An internal situational analysis with the addition of a SWOT analysis gives a

clear picture of the organization’s present condition- its internal strengths and
weaknesses and external opportunities and threats. An objective approach is needed
while undertaking situation analysis. Generally, the internal strengths and weaknesses
can be obtained from company’s sales records, market share, nature of product sold,
target markets and so on. A structured approach (like looking in to product life cycle
positions) is necessary for an effective situational analysis.

External environment audit

The factors analyzed during external audit are largely external and
uncontrollable and can have a significant impact on the organization’s functioning.
They include competition, market, political, economic and social conditions.
Generally, a PEST (Political, Economic. Social and Technological) analysis is
conducted to identify the direction, extent and time of impact of relevant external
variables that can significantly affect an organization. Sales objectives are clearly
defined only after conducting internal and external audits. Objectives may be long-
term or short-term. The former contributes to the organization’s mission and should
not be in conflict with it. The latter contribute to the attainment of objectives set in
the marketing plan. The selection of these should be based on priorities related to
long-term objectives. Generally, the objectives will be more specific in the first year
of a sales plan than its fifth year, i.e. the accuracy reduces over longer periods. Next,
objectives must be output oriented and measurable and not just activity oriented. For
example, an objective of increasing sales is of no consequence as it is vague. The
goal must be quantified.

Determining Operations to Meet Objectives

After objectives are decided, sales strategies to achieve objectives have to be

formulated. Sales strategies are operations, which organize and direct sales activities
that help achieve objectives. A strategy must be prepared to accomplish each
objective formulated. Strategies must be defined in terms of logic, feasibility and
practicality. All the strategies are defined and combined to form a master plan, which
makes for easy review by sales manager as well as top management. The sales
manager must develop sales strategies in relation with overall corporate or marketing
strategy. The importance of linking both these strategies can be better understood by

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 M.B.A. Programme

comparing possible variations in a sales strategy with respect to corporate strategy.

An organization typically adopts a build, hold, harvest or divests corporate strategy.

If the organization strategy is a build marketing strategy, which focuses on increasing

sales volume, the sales manager must then design a sales strategy that focuses sales
force activities on current and new accounts to increase sales of various products.

If the organization is going for a hold marketing strategy, which focuses on

maintaining current sales volume, then the sales force strategy must focus on
consolidating relationships with current accounts to improve the organization’s
position among existing customers.

If a harvest marketing strategy, which focuses on reducing overall operations costs, is

being selected, then the sales force must be directed towards their most profitable
customers. This approach will help to improve the sales to expenses ratio.

If the organization is going for a divest marketing strategy, which focuses on

minimizing operations costs totally and clearing inventory and overheads at the
earliest, then the sales force strategy should be based on selling products without
specific focus on profits. The major objective of the sales team here is to clear pile up
inventory at the earliest.

Organizing for Action

Once sales objectives are defined with the help of sales strategies, the sales manager
must devise ways to organize the objectives in to tactics. Development of tactics
involves identifying steps and taking decisions on operational aspects. It includes
answering questions like,

Which customers to target?

Which products to highlight among the entire product range?

What are the apparent market trends?

What is the sales department’s present condition?

What are the different ways to introduce a new product into the market?

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 M.B.A. Programme

Tactics are used as short-term action plans depending on the current need of
the organization. Increasing profits through a skimming strategy or focusing on sales
promotion while introducing a new product are examples of short-term tactics.

Measuring Results against Standards

The basic process of control involves three steps (1) Establishing standards (2)
Measuring performance against these standards and (3) Re-evaluating and correcting
variations from standards.

Sales managers need performance standards to measure results obtained from

implementing the sales plan. Different performance measures can be taken and related
to set performance standards to assess the effectiveness of the sales plan. Sales
volumes, selling costs, market share, profit margins are some frequently used
performance measures. Usually industry averages, past sales performance or present
managerial expectations are used as standards to evaluate results. Objectives set by
sales managers are considered the best performance standards as they are based on
corporate objectives, current forecasts and budgetary support.

Re-evaluating and control

The process of re-evaluation can begin midway during implementation of the sales
plan or at the end of the process. All programs have to be monitored constantly and
consistently over varying periods of time for effective control and to ensure that
overall organizational objectives are met at the end of the year. For example, if the
company objective is to increase sales by Rs. 10 crores, then one must monitor and
ensure that at least Rs. 2.5 crores in sales volumes is achieved every quarter.

Adjustments in sales objectives or strategies or tactical changes are undertaken in this

stage of the planning process. A through reanalysis of planning assumptions and the
practicality of the planning approach is also done at this stage.

Causes of Unsuccessful Sales Planning

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 M.B.A. Programme

Sales plans become unsuccessful when manager have a penchant to benchmark sales
plans using top plan models adopted by successful companies. A sales plan must add
value and must be able to achieve set goals that are unique to a company. One must
never make the mistake of trying to create new processes in the organization by
copying successful plan models. The aim should be better existing standards with
sales plans that are specific to a company. Another reason why sales plans fail is
because managers try to duplicate the general steps in the planning process without
thinking of specific requirements of the organization.

Lack of Awareness or Understanding of Important Aspects

Sometimes, sales managers prepare sales plans without being aware of corporate or
strategic plans formulated by top management. Sales managers sometimes formulate
plans with no reference to the abilities and views of colleagues and subordinates. This
leads to confusion and lack of interest on the part of sales personnel while
implementing plans. Lack of awareness of changes in social values and systems and
their likely impact on business is another reason for failure of plans. Having contacts
outside traditional business circles with sociologists and economists will enable one to
get first hand information about these trends, which should be kept in mind during
planning. Insufficient understanding of the organization’s present business interests
and factors affecting success like external environment influences, competitor moves
and customer dynamics, cause plans to falter. The organization’s strengths and
weaknesses have to be kept in mind while preparing the plan.

Absence of Proper Planning

Sales managers sometimes develop sales plans that are nothing more than a list of
numbers which do not focus on key organizational issues, clarify the company’s
position in the market or explain opportunities in quantitative terms. Another reason
for plan failure is contradiction in objectives. The sales plan objective may be mainly
profit oriented and to achieve this, sales targets are sometimes inflated beyond what
can be logically achieved.

Accuracy of Sales Planning

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 M.B.A. Programme

Accuracy in sales planning is of outmost importance to any organization.

Organization’s that have higher rate of profits tend to have less sales plan accuracy
because they are more optimistic in forecasting profit rates, based on current profit
growth rates. Large organizations are more accurate than small ones in sales planning
because they often have a formal planning department or a planning board that
comprises teams of sales managers and supervisors from different regions. In small
organizations the planning function is usually vested with a few key managers. Sales
plans are more accurate if objectives are set by the top management and are supported
by sales managers. The greater the involvement of top management, the higher the
sales plan’s accuracy.

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 M.B.A. Programme

CHAPTER NO. 4

DATA ANALYSIS AND INTERPRETATION

THE SALES PLANNING AND SALES POLICIES OF THE GHATGE

PATIL INDUSTRIES

 The Ghatge Patil Industry is one of the top 5 foundry industries in India.

 If we consider the sales market of the company, the 85% to 88% market share is
within India and 12% to 15% market share is contributed by overseas market.

 If we consider the domestic market of the company, the Eicher Tractors contribute
20% market share of the company.

 Company’s 25% market share is contributed by Tata Motors.

 Company’s 35% market share is contributed by John Deere Ltd. It is the major market
share of the company.

 5% to 6% market share is contributed by International who is the maker of Sonalika

Tractors.

 The total foundry division supply is distributed as,

30% - Automobile sector

60%- Tractors

10%- Other sectors

 The remaining 20% domestic market is distributed among the other clients of the
company.

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 M.B.A. Programme

4.1Showing the total Domestic Market customer wise of the Ghatge Patil
Industries Limited.

Customer Name Market Percentage

Eicher Tractors 20%

Tata Motors 25%

John Deere Ltd. 30%

International 5%

Others 20%

Total 100%

Market Percentage

20.00% 20.00%
Eicher Tractors
5.00% Tata Motors
John Deere Ltd.
International
Others
25.00%
30.00%

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 M.B.A. Programme

FIGURE NO. 4.1

The above pie chart shows that John Deere Ltd is the major market holder of the
company. The Eicher Tractors and Tata Motors contribute near by 50 percent market of the
company. The International contributes 5% market of the company. The other customers like
Volvo India Pvt. Ltd., Ashok Leyland Ltd., OIL, ONGC etc. are included in 20 percent
Market.

4.2 Showing the total Domestic and Overseas market of the Ghatge Patil

Industries Limited.

Market Percentage (%)

Domestic Market 85%

Overseas Market 15%

Total 100%

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 M.B.A. Programme

Percentage (%)

15.00%
Domestic Market
Overseas Market

85.00%

FIGURE NO. 4.2

The above pie chart shows that 85 percent market is contributed by home country.
Only 15 percent market is contributed by overseas market.

4.3 Showing the total Foundry Division supply distribution in various

sectors.

Sector Percentage (%)

Automobile Sector 30%

Tractor Industry 60%

Other Industry 10%

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 M.B.A. Programme

Total 100%

Percentage (%)

30.00%
10.00%
Automobile Sector
Tractor Industry
Other Industry

60.00%

FIGURE NO. 4.3

The above pie chart shows 60 percent market is contributed by automobile sector. The
tractor industry covers 10 percent market and 30% market is contributed by oil exploration
and distribution, earth moving and marine industries.

COMPANY POLICY

In the first earlier years, the main product of the foundry division was the making of
only brake drum. The company was producing brake drums up to 30,000 units. The profit
behind this was not optimum. To increase the sales volume and profit, company changed the
production policy and decided to make critical products .These critical products are according
to their specific size, measurements and design structure.

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 M.B.A. Programme

 Nowadays, company is making critical products in large number up to 15,000 or

20,000 units. The company has reduced the production of brake drums up to 10000
units. The profit behind brake drums is less and the profit behind making critical
products is large and has significantly increased the market share as well as profit in
terms of money.

 Besides foundry division the company has their own product range. These products
have made according to the demand of the customers. These products have company’s
own design and structure and these products are machined by the company.

 Thus, by making increase in critical production and decrease in old production, the
company has achieved the desired sales volume and profit generation.

 Quality- the GPI has made quality and consistency in the production. The GPI has
casting accuracy between 0 to 40 microns. The company has made it with consistency.
This is the uniqueness of the company and due to this; company has maintained her
brand name.

 The foundry division has the casting capacity of 3000 tones/ month.

 The GPI has the annual turnover of 250 crores, in which 160 crores are of the foundry
division and 90 crores are of the product division. This turnover is for 2009- 2010.

 The GPI has set the sales turnover for the year 2010- 2011 of Rs. 300 crores. In that,
the 210 crore contribution will be of foundry division and 90 crore turnover will be of
product division.

 The pricing policy of the company is different for foundry division and product
division.

a) For product division: product item – No. of units manufactured – price per unit.

b) For foundry division: product item- production in metric tons – price per unit tone.

 The old products are fly wheel housing, engine bed frame, brake drum, hubs etc.

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 M.B.A. Programme

 The critical items have less competition in the market. So the maximum market
demand is at the Ghatge Patil Industries.

 In GPI the maximum sales is towards the Eicher Motors, Eicher Tractors, Tata Motors
etc. As automobile companies have more demand in market. The parts of these
automobiles are manufactured in GPI. The other customers have less priority in sales
dispatch in GPI. The maximum sales dispatch is towards the automobile industries
because these are always in demand and have scope all over the year. The sectors like
oil and gas, earthmoving etc. have less market and their demand is not continuous, so
automobile industry has maximum sales dispatch.

 The company is making more critical items and generating more profit. The company
has reduced the production of old products. The critical items include carter, case
transmission, clutch housing, cylinder block, differential housing, gear box housing,
rear axle housing etc.

The Advertising and Sales Promotion Policies of the Ghatge Patil

Industries

 The GPI has a variety of advertising and sales promotion activities. The main
advertising is through the print media like magazines. The GPI is the member of
Indian Institute of Foundry Association and other related foundry associations.
These associations have their combine magazines. These magazines are also the
advertising medium of the company.

 Besides magazines the company arranges foundry exhibitions. These exhibitions are
also arranged by the Indian Institute of Foundry Association. Company has their own
website- http:/gpind.com.

 If we look at the overseas market of the company. The main advertising and sales
promotion media are company’s old customers, company’s website and the agents
(middlemen) in overseas market.

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 M.B.A. Programme

Market Research of the Ghatge Patil Industries

 The marketing research of the company is mainly based upon comparison with
competitors in relation with price and quality. And recent trends in market as per
industries like automobile, earthmoving, oil and gas etc.

 The contracts of order are gained upon the cost and quality of the product. Suppose
company has a product with low cost and high quality. The customers of the company
give more priority to GPI. The customers give more manufacturing order to the GPI.
The customers compare the products of the GPI and other competitors and take the
decision to which the order should be given for manufacturing.

 The recent trends are also very important in marketing research. In our domestic
market the festival period have very much boom period in market and sales of the
companies. The trends have 3 subparts in total year.

Boom Period-

In our domestic market the festival time is more profitable to the company. In festival
period, the automobiles have more demand in the general market. So the companies
like Eicher Motors Eicher Tractors, Tata Motors, and International have more demand
because of festivals. As these products have demand automatically the GPI’s sales
increases. This boom period starts from August, September and ends with December.
The festivals like Ganesh Festival, Dashahara, Divali have maximum market demand
for the company as well as their customers. During the November and December the
sales of the company decreases in a very small quantity.

March ending or Year ending Trend-

This period starts from January to March ending. As companies in their starting year
sets the target for a particular year. To achieve this target, companies try to sell more
and more products within this period. Sometimes there may be change in government
policies from the New Year, so there will be increase in the cost of products. So the
already made sales quota is sale out up to March ending. In last year, the government
removed excise duty for the

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 M.B.A. Programme

Tractors. So the cost of the tractors decreased and many farmers purchased tractors
due to decrease in their costs. Automatically the GPI’s sell increased.

Nowadays Maharashtra state is facing with the problem of power

shortage. To overcome this problem, the generator sets manufacturing has increased in
large scale. Due to increase in manufacturing of generator sets, the parts of these sets
are manufactured in GPI, so there is an increase in sales of GPI.

From 1st April, 2006 the Maharashtra Government implemented 6 th pay commission,
due to this commission the Government and semi government employees pay scale
raised up to 40%. So the purchasing power of the people has increased. So many
people buy vehicles. The profit of Tata Motors, Eicher Motors and Tractors increased
in large amount. Automatically the GPI’s sale increased and acquired more profit.

Nowadays the sugar rate is more than 3500/ quintal. The farmers are getting more
than Rs. 2300/ ton of sugarcane. Due to increased profit of farmers, they are
purchasing more tractors for their field work. So automatically the GPI’s turnover has
increased.

As, at the end of year the automobile companies try to achieve beyond the target sales,
to achieve sales more than desired goal, they increase marginal turnover. Suppose a
company has set desired goal to sell 3000 units. To achieve marginal turnover they try
to sell 3200 units. The GPI get this advantage.

Off Season-

The period between Junes to August is the slack period for industry. Because there is
no heavy selling during this period for the automobile sector or other sectors in India.

Overseas Sales-

Boom period-

In foreign market, the period from January to July is the boom period. As, in this
period there is the demand for GPI’s products from overseas market. The period from
September up to Christmas, the market is in demand.

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Off Season-

As, in foreign market the month of August is of the total summer vacation. There are
holydays within this period. The Christmas period of 3 weeks is also of no demand for
products in GPI.

Environmental Issues-

The environment for all of us is very important. For reduction of pollution, the
Government has made some policies like Bharat Stage 1,2,3,4 in India. The running
stage is Bharat stage 4 which is equal to the Euro Stage 4. The companies have to
follow certain norms, rules, regulations and conditions for obeying this government
policy. For implementation of these policies the automobiles companies has to make
changes in engine or other parts of the vehicle. For making such changes some
machine and equipments has to be newly implemented in manufacturing. The GPI
automatically get advantage of this change.

Planning and Control of Sales Operations and Control of Sales Costs of the
Ghatge Patil Industries

 Control of sales planning-

As GPI has its unique planning about the sales operations. In planning of sales
figures, the customer requirement is considered first. According to the requirement the
production capacity of the foundry division and product division is considered.
Suppose, machining unit has the production capacity of 2000 tons per unit, the
customer requirement is taken as per constraint of the foundry division.

In making sales planning, core making constraint is also considered. Sometimes in

company or organization, the running products are given more priority in sales
planning e.g. automobile parts, earth moving parts etc. In sales planning some
customers are given more priority, who is the regular customers of the company. The
distribution is done during the sales planning. In total sales quantum, the figures of
sales are distributed according to specific customer. The adjustments are made in sales

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 M.B.A. Programme

planning and control e.g. there are 20 customers within India for foundry products of
GPI. Then 3 to 4 customers, who are regular, have given

More priority in sales dispatch. The customers who have in long time relation with
GPI are treated softly for sales planning. Some customer orders are postponed for
some period by requesting them e.g. a customer’s requirement for one month is1000
cylinder blocks. If the requirement will not complete in a given period of time, the
order is postponed for a week or more days. In sales planning, there are customers for
company which contributes 80% sales dispatch from GPI. These customers are given
more priority than others. The adjustments are made for other customers also. The
more profitable products are given more priority in sales planning e. g. critical items
of product division.

The contingency plans are made in sales planning e.g. suppose a customer wants 500
tons of castings. Then all the alternative ideas are generated for the completion of the
sales order. There may be reduction of other customer’s order or may be addition in
order.

 Control of sales operations-

Every organization possesses the control of sales operations. In GPI also, the sales
operations are controlled by the marketing department.

The Just in Time (J.I.T) concept has more emphasis on control of sales operations.
This concept is used in day to day operations. The delivery is made on the exact date
of the month e. g. a customer’s requirement is of 2500 tons casting for a month. The
delivery is divided into the four parts. The delivery for a week will be of 600 tons.
Some customer orders for the company are not in regular intervals e.g. suppose the
first week delivery of product of a month has specific rate or cost. The prices for these
products are in consideration during control of sales planning.

The production constraint is taken into consideration during the control of sales
operations. The sacrifice point is made with the customers of the company e. g.
suppose a customer

Requirement for a month is of 1500 tons of casting. If this target sale is not possible,
the sacrifice point will be made with customer. The company will provide 1000 tons

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 M.B.A. Programme

in current month and other 500 tons will be delivered on the first week of the next
month.

Control of Sales Costs of the Company

The control of sales costs is a major objective of the sales organization of the
company.

 Inventory control-

The inventory control is very important in control of sales costs. The inventory
control is the control of finished goods of the company. The finished goods are
manufactured according to the dispatch date of the ordered goods. If the inventory
control is not done there will be material blockage in the store house. The cost of such
goods will be more than normal cost of production for the company.

 Packing cost reduction- In domestic market of the company, the goods are packed in
a plastic coating but for overseas market the packing is of wooden pallets. The
wooden pallets are used for the prevention of corrosion of products.

 Maximum utilization of vehicle load and travel- There must be maximum

utilization of vehicle load and transportation of the company. Suppose, a container has
the capacity of 16 tons. To utilize this full capacity the company will arrange two
customers in a single container of which one will be of 6 tons and one will of 10 tons.
The location of two customers is one at Pune and other at Nashik. There will be one
route for both the customers. Thus sales costs are controlled in sales department.

Selection and Management of Channels of Distribution of Ghatge Patil

Industries

In GPI the distribution channel is direct i.e. from manufacturer to original equipment
manufacturer e.g. Tata Motors, Eicher Motors etc. The manufactured goods are stored in
company’s store house. The domestic distribution channel mediums are trucks and containers.
The containers have the capacity of 10 tons or 16 tons.

The goods which are supplied to overseas market carried out by ships or sea route. If
there is delay in supply, the goods are travelled by air route. The air route is very much costly

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 M.B.A. Programme

than sea route e.g. To travel 1 kg of material by sea route costs Rs. 10, to travel same amount
of material costs Rs.150 by air route. The demonstration samples are distributed by air route
to the foreign countries.

Branding, Packing and Labeling Functions of the Ghatge Patil Industries

 Branding-

AS Ghatge Patil Industries has its unique brand. This is a partnership business
established in 1960. It is one of the top five foundry industries in India. They are well
known for the quality, accuracy and consistency in domestic as well as overseas
market.

 Packing-

Wooden boxes, paper sheet boxes, pallets used for the packing of finished goods. As
the castings are different in size and weight, to pack them different size wooden boxes
and pallets are used.

Fumigation process- It is the process in which the wooden boxes are kept under a
cover in which chemical treatment of silica gel or dust powder. It prevents wooden
boxes from fungal infection. It kills the germs and minimizes the level of water
vapours in the wooden boxes.

 Heat treatment-

Heat treatment is given to the wooden boxes. Heat treatment reduces the fungus from
wood. The water vapours are also removed from wood by the heat treatment process.

 Oiling-

Oiling is done on the surface of castings because there should not be the corrosion of
it.

 VCI cover or bag-

The VCI bags are used as a cover of casting. As this bag sucks the water vapours from
the atmosphere.

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 M.B.A. Programme

 Paper sheet boxes –

As these boxes are made of paper sheets these paper sheets are used to pack the
casting. The small castings are totally covered by the paper sheets.

 Painting-

Painting is done on the surface of casting because it prevents corrosion and prevention
of rust. It is the primary colour which helps to develop secondary colour on the
surface of casting. The castings which are supplied to the domestic market are packed
by the only plastic cover. The finished product which is supplied to overseas market is
covered by wooden boxes. To avoid the movement of casting plywood sheets are
used. The entire wooden box is then tied with metal strips.

 Labeling-

To the tightly banded wooden box the packing slip is attached on it. The supplier
name, customer name, place where to supply, no. of boxes, items enclosed in each
box, net weight and gross weight of box etc. are mentioned in packing slip.

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 M.B.A. Programme

4.4The sale data of Graphite Iron Machined from year 2003 to 2009.

Year GI Machined

Rs. In Kgs.
lacks

2003-2004 2523 8242

2004-2005 4125 12562

2005-2006 2074 6028

2006-2007 2522 8023

2007-2008 4035 9045

2008-2009 5095 8230

14000

12000

10000

8000

6000 GI Machined Rs. in lacs

GI Machined Kgs.
4000

2000

0
4 5 6 7 8 9
2 00 2 00 2 00 2 00 2 00 2 00
0 3- 0 4- 0 5- 0 6- 0 7- 0 8-
20 20 20 20 20 20

FIGURE NO. 4.4

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Above table shows maximum production in year 2004-2005, but the sales behind this
sale is not comparable with production and in year 2005-06 both production and sales are
less. In year 2008-09 the sales is higher as compared with production.

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 M.B.A. Programme

4.5 Showing the sale data of Spherodoid Graphite Iron Machined from
year 2003 to 2009.

Year SGI Machined

Rs. In Kgs.
lacks

2003-2004 70.80 1915

2004-2005 450.79 1071

2005-2006 490 1375

2006-2007 410 1085

2007-2008 350 800

2008-2009 320 540

2500
SGI Machined Rs. in
2000 lacs

SGI Machined Kgs.

1500

1000

500

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 M.B.A. Programme

FIGURE NO. 4.5

The above table shows that the production is highest in year 2003-04 but the sales are
very as compared with production. In year 2004-05 the production has reduced in higher
amount and the sales has also increased in higher amount. Consecutively from year 2005-06
to 2008-09 the production has decreased and sales have increased.

4.6 Showing the sale data of Graphite Iron Rough from year 2003 to 2009.

Year GI Rough

Rs. In Kgs.
lacks

2003-2004 2974 8673

2004-2005 5347 12283

2005-2006 5134 13191

2006-2007 5865 14828

2007-2008 7298 15118

2008-2009 6767 10190

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 M.B.A. Programme

16000 GI Rough Rs. in

lacs
14000 GI Rough Kgs.

12000

10000

8000

6000

4000

2000

0
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

FIGURE NO. 4.6

This graph pertain the sales data of GI Rough from 2003-2009. In year 2007-08 both
production and sales has reached at the highest peak. From year 2003-04 to 2007-08 both
production and sales have successively increased. In year 2008-09 there is a little decrease in
both production and sales.

4.7 Showing the sale data of Spherodoid Graphite Iron Rough from year
2003 to 2009.

Year SGI Rough

Rs. In Kgs.
lacks

2003-2004 370 972

2004-2005 689 1210

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 M.B.A. Programme

2005-2006 580 1431

2006-2007 415 965

2007-2008 910 1601

2008-2009 620 725

Chart Title
1800
1600
1400
1200
1000
SGI Rough Rs. in lacs
800 SGI Rough Kgs.
600
400
200
0
08

09
04

05

06

07

0
0

0
-2

-2

-2

-2

-2

-2
03

04

05

06

07

08
20

20
20

20

20

20

FIGURE NO. 4.7

The above graph shows in year 2007-08 both production and sales have increased.
Also in year 2004-05 both production and sales have increased. If we consider the sales
figures of 2005-06 the production is higher but comparable sales are not satisfactory. In year
2008-09 both production and sales are good.

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 M.B.A. Programme

4.8 Showing the sale data of Exports from year 2003 to 2009.

Year Exports

Rs. In Kgs.
lacks

2003-2004 230 860

2004-2005 90 225

2005-2006 550 790

2006-2007 1050 1990

2007-2008 1738 3611

2008-2009 900 810

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 M.B.A. Programme

4000

3500

3000

2500 Exports Rs. in

lacs
2000
Exports Kgs.
1500

1000

500

0
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

FIGURE NO. 4.8

The above graph shows that from year 2004-05 up to 2007-08 both production and
sales have successively increased. In year 2008-09 the current production is less than
previous years but the sales are greater than production. The reason behind higher sales is the
products are costly.

4.9 Showing the total sale data from year 2003 to 2009 of GPI.

Year Metric tons Rs. In lacks

2003-2004 20662 6167.8

2004-2005 27351 10701.79

2005-2006 22815 8828

2006-2007 26891 10262

2007-2008 30175 14331

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 M.B.A. Programme

2008-2009 20495 13702

35000

30000

25000

20000

15000
Metric tons
10000 Rs. in lacks

5000

0
04 05 06 07 08 09
20 20 20 20 20 20
0 3- 0 4- 0 5- 0 6- 0 7- 0 8-
20 20 20 20 20 20

FIGURE NO. 4.9

The above graph shows successive production increase in years 2003-04 and 2004-05.
The highest production have made in year 2007-08. There is also successive increase in
production in years 2005-06 and 2006-07. The least production have made in year 2008-09.

The above graph shows combination of all sales (GI, SGI Machined, GI, SGI Rough
and Export sales). The sales from 2003 to 2005 have step wise increased. From 2005 to 2006
the sales have decreased in little amount. The highest sales have made in year 2007-08. A
little decrease has made in sales in year 2008-09 but this is the best sales if we compare with
production.

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 M.B.A. Programme

CHAPTER NO. 5

FINDINGS, SUGGESTION AND CONCLUESION

FINDINGS

From the study of project, of “Sales Planning and Control”, I came to some findings
which are as follows.

 It is studied that, for control of sales costs, inventory control, packing cost reduction
and maximum utilization load and travel are used.
 To increase the sales volume and profit, the company has changed the production
policy and is making more critical products which are profitable to company. The
company has used product line policy very effectively.
 The company is making more critical items which have their own design and
structure. Here, the company has used product design policy very effectively.
 The sales forecasting of the company is very good. The company has forecasted the
production of foundry division for 2011 is of 210 tons. This is more by 50 tons than
previous year. The company has very good sense of direction i.e. can prepare future
events.
 In market research of the company, comparison with competitors in relation with
price and quality, recent market trends and boom periods like festivals, year ending,
vacations, environmental issues and government policies are considered. The market
research is customer oriented in Ghatge Patil Industries.
 In control of sales planning customer requirement, the running products, regular
customers are given more priority. The contingency plans are made in sales planning.
Just in Time (JIT) concept has more emphasis in sales planning as time frame is more
important in sales planning control. The company has avoided setting unrealistic
objectives that leads to unnecessary expenditure.

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SUGGESTION

 The distribution policy of the company is according to the standard norms. They have
used direct distribution channel. Company has used all possible transportation
medium i.e. air, water and land. The distribution is frequent and regular.
 The company uses its full production capacity which is profitable to them.
 The first pie chart shows total domestic market customer wise of the Ghatge Patil
Industries. The company has more sales towards the Eicher Tractors, Tata Motors,
John Deere Ltd., International etc. The company has maintained good relations with
them. Here the company has used hold marketing strategy. The company has to pay
attention towards the other customers like HMT, JCB Ltd. Volvo India Pvt. Ltd. etc.
 The 3rd pie chart shows foundry division supply distribution in various sectors. The
other sectors include oil and gas, earth moving etc. the company has to pay attention
towards these customers.
 Some customers of the company are regular. The company has maintained good
customer relation with them.

CONCLUSIONS

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 M.B.A. Programme

The Study conducted by me in Ghatge Patil Industries gave me a good opportunity to

understand the Sales Management and its implications in an organization.

 The company has quality and consistency in production. The Ghatge Patil
Industry has received ISO 9001 and 9002 accreditation from BVQI.
 The company has monopoly in critical items. These products are more in demand.
 The Ghatge Patil Industries is one of the top five foundry industries in India. It has
unique brand.
 The packing and labeling of finished goods in GPI is good. These are according to
the standard norms i.e. safe, germfree and durable.
 The Ghatge Patil Industry has used all possible advertising and sales promotion
tools. The advertising and sales promotion policies are comparable with standards.

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BIBLIOGRAPHY

1. Marketing Management S. A. Sherlekar

2. Marketing Management Philip Kotler

3. Marketing Management V.S. Ramaswami and S. Namakumari

4. Website http://gpind.com

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