A PROJECT REPORT ON

“MARKETING STRATEGIES AND RATIO ANALYSIS”

UNDERTAKEN AT

GS RADIATORS LTD. LUDHIANA (PUNJAB)

A Project report submitted in the partial fulfillment of the

requirement for the degree Of Master of Business

Administration M.B.A(CIT)

Submitted To: - Submitted By: -

Mrs. Minakshi Rajwant

Kaur

(Prof. of MBA Dept.). MBA (CIT)

Roll No. 4964

MASTER TARA SINGH MEMORIAL COLLEGE FOR WOMEN,

1

LUDHIANA, PUNJAB

SESSION 2014-16

PREFACEThis project is the result of six weeks training at GS Radiators,

Ludhiana. Summer training is an integral part of “Masters in

Business management” course and it aims at providing a firsthand

experience of industry to students. This practical experience helps the

students to view the real business world closely

I was really fortunate of getting an opportunity to pursue my Summer

Training in such a reputed, well established, fast growing and

professionally managed organization. This summer internship training

and consequent report helps the student to practically learn the modern

industrial activities and study real techno-business area. This practical

training develops the feeling of awareness among the students.

The report contains first of all brief introduction about the company.

Finally there comes data presentation and analysis in the end of my

project report. I also put forward some of my suggestion hoping that

they will help GS Radiators, Ludhiana. Move a step forward to being

the very best.

2

I tried my level best to conduct a research to gain a thorough

knowledge about the project on topic, “Study of Marketing Strategies

and RATIO Analysis of GS Radiators”. I put the best of my efforts.

ACKNOWLEDGEMENTS

I am neither a research expert nor a trend spotter; I am a management student with foundation of management principles and theories, who is curious about various sectors and its latest happenings.

Definitely, I can’t ignore the technology, with internet as the backbone and those search engines which helped me in building up this research project.

To being with, I am obliged to Mr. RANJODH SINGH (Managing Director’s GS Radiators Ltd).who allotted me this interesting topic and without whose guidance and constructive criticism this repot might have not been completed .I would like to thank Broker, Agents franchise owners and individuals. I appreciate for their cooperation and contributions for helping me in making project factual and information.

I would like to express my heart full gratitude to Mr. GUNJAN SONKER (Relationship Manager), NIRMAL BANG SECURITIES (PVT) LTD. Who helped me in sharpening my thinking by cheerfully providing challenging comments and questions? Without the individuals have provided, this project would have lost much of its refreshing realism. I’m also thankful to the management & all employees of GS Radiators LTD.

I also express my gratitude to Mrs. (Director), Mrs. (H.O.D) and ALL FACULTY MEMBERS OF MBA DEPARTMENT OF MASTER TARA SINGH MEMORIAL COLLEGE FOR WOMEN who have been instrumental in making this report useful one.

Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and financial support and my colleagues with whom I shared my dad-to-day experiences and received lots off suggestions that improved my work quality.

RAJWANT KAUR

3

MBA (CIT)

4964

ABSTRACT

G.S. Radiators is a company that has been steadily growing throughout the

past decade. The following report will help G.S. radiators maintain the

growth that has been enjoyed in the past, with a strong emphasis on the

growth of the Radiators and products division. Furthermore, by comparing

G.S. Radiators strengths and weaknesses to that of the competition,

opportunities can be identified and capitalized on. G.S. Radiators entered

into Punjab market with its technologically advanced Radiators. But when

it entered in an Indian market, it had to face very tough competition and still

it‘s facing tough competition, but now it has gained the top position among

different companies in India. Not only G.S. Radiators has highest market

share in Radiators Market, but also in accessories of Radiators market.

G.S. Radiators created its own marketing strategies and also defined there

target market to penetrate into Indian market. G.S. Radiators aims to have

more market share in Indian market.

4

The major competitors in Radiators market are Telco, BANCO,

Sandan, and Cougar. In this project we try to find out some important

things; the different kind of marketing strategies of G.S. Radiators in Indian

market. Market strategy, positioning strategy, (Product Strategy, Price

Strategy, and Promotion Strategy), and Competitive advantage of G.S.

Radiators.

5

TABLE OF CONTENTS

Chapter No. Chapter Name Page No.

1. INTRODUCTION

INTRODUCTION

9

2. COMPANY PROFILE

PROFILE

HISTORY OF COMPANY

PRODUCTS OF COMPANY

CUSTOMERS

EXPORTERS & SUPPLIERS

FUTURE PLAN

VISION AND MISION

COMPACY POLICY

EXPORT & IMPORT

10-24

6

PURCHASE POLICY

SALES POLICY

WELFARE & SOCIAL ACTIVITES

SAFETY MEASURES

3. INDUSTRY PROFILE

TYPES OF RADIATORES

MANUFACTURING PROCESS

QUALITY MANAGEMENT

FUNCTONS OF DEPT.’S

PRICING POLICIIES

MARKETING STRAGIES &

ADVERTISEMENT

25-45

4. SWOT ANALYSIS OF THE COMPANY 46

7

5. OBJECTIVES & RESEARCH METHODOLOGY

INTRODUCTION OF SUBJECT MATTER OF PROJECT

NEED OF STUDY

SCOPE OF STUDY

OBJECTIVES OF STUDY

RESEARCH METHODOLOGY

LIMITATIONS OF STUDY

47-50

6. DATA ANALYSIS AND INTERPRETATION

PROBLEM STATEMENT RATIO ANALYSIS

MEANING OF RATIO ANALYSIS

NATURE OF RATIO ANALYSIS

IMPORTANCE OF RATIO ANALYSIS

LIMITATIONS OF RATIO ANALYSIS

CLASSIFICATIONS OF RATIOS

GS RADIATORS ‘S RATIO ANALYSIS

51-69

7. FINDINGS & SUGGESTIONS

FINDINGS

SUGGESTIONS

CONCLUSION

70-79

8. BIBLOGRAPHY

QUESTIONARE

ANNEXURE

BALANCESHEET OF THE COMPANY PROFIT AND LOSS A/C

80-83

8

CERTIFICATEThis is certify that Mrs. Rajwant Kaur worked on the development of the project “Marketing Strategies And Ratio Analysis Of G.S. Radiators Limited”, in the partial fulfillment of the requirement for the degree of MBA (CIT) (COMMERCE AND INFORMATION TECHNOLOGY) under my guidance & supervision.

To the best of my knowledge, the matter represented in this project is a bonafide & genuine piece of work.

During her association with the project I found her to be sincere & motivated individual. She has shown keen interest in this project & him conduct was excellent.

I wish him all success in her career.

Place: Ludhiana Mr. Gurpreet Singh

(manager.)

G.S. Radiators Ltd.

9

10

CHAPT

ER NO.

1

GS Radiators established in 1992 has continually improved in all

the fields, whether it is products, delivery timing, or after sales

services. It is on fast moving track towards growth. It has attained

a prominent position in domestic as well as global automotive

industry.

Because of their quality excellence their radiators are well

accepted by various vehicle manufactures like M&M, Hindustan

Motors, Swaraj Ltd., Punjab Tractors Ltd. Taking the

advantage of globalization, they have made the strong presence

in the overseas market of Europe, Australia and USA etc.

11

COMPANY PROFILE

G.S. RADIATORS Date of Incorporation : 17th October, 1988

Promoters : G. S .Family

Board of Directors : S. Bhagat Singh

S. Jagat Singh

S. Ranjodh Singh

Mr. P.P.Singh

Mr. Iqbal Chand (Nominee IFCI)

12

CHAPT

ER NO.

2

Mr. Malkiat Singh (Nominee PSIDC)

Date of Commencement : April, 1992

Of Commercial production

Line of Business : Automobile Components

Installed capacity : 1, 00,000 units per annum

Number of Employees & Workers : 243

Contract Person : S. Ranjodh Singh (Managing

Director)

GS Group : GS Radiators Ltd.

G.S distributors.

G.S Engitech Pvt. Ltd.

Bankers : State Bank of Patiala

Product Manufactured : Radiators for all type of vehicles

(Car, Jeep, Tractor, Hcv, Lcv)

Selling Market : It is divided into 3 sub markets.

Original Equipment Market(OEM).

Replacement Market.

Export Market.

13

Regd. Office & Works : G. S. Estate,

Post Box No. 714

G. T. Road Ludhiana-141003

(INDIA)

Phones : 0161-2512241

0161-2512242

0161-2512243

Fax : 0161-2512431

E-Mail : gsradis@dataone.in

Website : www.gsradis.com

MEMBERSHIP OF VARIOUS ASSOCIATIONS:-

GS Radiators also contributes its mite in philanthropic & social

facets of national life by actively associating & involving it selves

with professional bodies namely:

1. Automotive Components Manufacturers Association of India.

2. Society of Automotive Engineers, U.S.A.

3. PHD Chamber of Commerce & Industry.

4. Confederation of Indian Industry.

5. Engineering Exports Promotion council.

14

6. Indian Trade Promotion Organization.

7. Punjab Motor Parts Manufacturer Association.

HISTORY OF G.S.RADIATORS Ltd:-

In this era of ever growing demand for Automobiles in India, just

manufacturing is no longer a singular achievement. The most important

aspect of present time is the demand for a quality product that can pass the

most stringent condition of its applications.

GS Radiators Ltd. Established in 1988, is part of ‘G.S. Group’, leader in

chassis as suspension components in India. G.S Radiators adopted the latest

technology from Calsonic Llanelli Radiators Ltd, U.K.

GS Radiators & GS Radis is one of leading manufacturer of radiators for

OEM’s domestic as international after market. In a short span of time, GS

Radiators Ltd. has developed a wide range of radiators for leading vehicle

manufacturers in India like Ashok Leyland, Swaraj Mazda, and Swaraj

Tractors, Mahindra & Mahindra, & ITL-Renault & Hindustan Motors.

GS Radiators has a product range of more than 250 Models to choose from.

15

TECHNOLOGY & EQUIPMENT : backbone

The latest technology from Llanelli Radiators Limited, United Kingdom

along with the best machinery from global suppliers are wholly supported by

a team of highly qualified & professional for manufacturing a new

generation of radiators of the country. The equipment includes a gas-fired

state of art conveyor zed baking oven to ensure a uniform high performance

for the radiator core matrices. The plant also has an imported precision tube

forming machine that user a continuous timing process to produce consistent

quality locked seam tubes.

COLLABORATORS: Heading Edge

GS Radiators is proud of its association with LLANELLI RADIATORS

LIMITED, UNITED KINGDOM & the world leader in heat exchange

technology. Throughout its history of more than 8 decades, Llanelli

Radiators have been in forefront of heat exchange technology development

with many notable achievements acknowledging by the leading automobile

manufacturers of the world. A major breakthrough in technology being the

states of art HYPER FORM assembly line are manufacturing more than

20,000 Radiators in a week.

In response to the need of global internationalization Llanelli Radiators has

now joined hands with Calsonic Corporation of JAPAN. The Calsonic

family now comprises subsidiary companies involved in co-operation

technical development center, ventured & plants in 30 countries round the

world.

16

GS Radiators having through bred engineering technology package from

Llanelli Radiators has access to the best of their expertise, RESEARCH &

DEVELOPMENT & test facilities, which are among the best in the world.

GS Radiators has an opportunity to update the process technology from time

to time with the changes taking place at Llanelli Radiators, U.K.

GS AUTO INTERNATIONAL LIMITED:-

At GS Auto International Limited, a team of 100 young dedicated

technicians works in close co-operation with each other & has succeeded in

bringing to our customers these automotive components, unchallenging in

quality & workmanship.

The strength of GS Radiators is its people, sound, engineering skills,

crystallized over a period of 5 decades which have been handy in not only

keeping the customers happy but also are going to be asset in the

liberalization of Indian economy.

G. S. SALES CORPORATION:-

Every business has to survive with in the periphery of healthy & unhealthy

environment. The mushrooming up to small manufacturing units in the last 2

decades & absence of any Marketing Support System added to the plight of

small manufactures. A mission namely “GS Sales Corp.” was embarked

upon in 1994 to provide a platform to the local units by exploring synergies.

OUT SOURCING :-

17

It is mainly from the domestic manufactures. Testing & Inspection, using in

house facilities, perpetuate consistency & incessant thirst of quality.

PRODUCT RANGE OF GS RADIATORS:-

Our product range include cooling solutions for the AUTO MOTIVE, INDUSTRIAL, MARINE AND RAILWAYS etc.

18

PRODUCTS IMAGES:-

Radiators:-

Filler Tanks:-

19

PRODUCTS

Radiators

Heaters

Plastic Tankers

Concentric and plate type Pressure caps

Brass tank & Heaters

PRODUCTS

Filler Necks

Connector Pipes & Radikool Coolants

Brass Bushes

Drain cock & Plugs

Rubber Gaskets

Radiator Filler Necks & Pressure Caps:-

P-cap-13-Psi-Mini-ss-Plated:-

Water-cooled Single Cylinder diesel engine &

Air-cooled-Welding-Generator:-

20

Tractor Radiators:-

Brass Radiator Tank:-

21

CUSTOMER & CLIENTALE OEM (INDIA)

22

M/s Ashok Leyland

M/s Mahindra & Mahindra Ltd,

Auto Divn Bssby.

M/s Mahindra Nissan Ltd

M/s Punjab Tractor Limited

M/s Mahindra & Mahindra Ltd,

Auto Divn, Nasik

M/s Hindustan Motors Ltd

M/s HMT Tractor Division

M/s Mahindra & Mahindra Tractor

Divn

M/s Swaraj Mazda Ltd

M/s TELCO

M/S Class India Pvt. Ltd, Marinda

M/s Sonalika Tractors

The main Suppliers and Exporters of GS Radiators Ltd.

23

24

“GSR plans for future are to run side by

with the information technology. They are

soon going to launch their automatic

purchase receiving system. In this system,

customer has to just feed his purchase

order in the given format on GSR site and

that order will automatically added to

GSR’s data base. They are also planning a

form to be made available on their site for

their field employees to claim their

TA/DA” bills. Other facilities like warranty

claim, product enquiries, customers view

on the product etc are also going to

launched.

FUT

URE

PLA

N:-

Vision and Missi

25

EXPORTERSA S GENERAL

DISTRIBUTION LTD

ADRAD PTY LTD.

KIRKLAND AND ASSOCIATES LTD.

MATT BUCKLEY TRACTOR SPARES LTD.

PADIS EUROPE B.V.

TVH FORKLIFT PARTS NV WAREGEM

QUALITY TRACTOR PARTS LTD.

SUPPLIERSAGRAWAL METAL WORKS PVT. LTD.

BERI MERCURIO LTD

GUPTA METAL SHEETS PVT LTD.

JUGAL TUBE PVT.LTD.

KOTHARI METALS LTD.

LONDON METALS & OMMODITIES

MAJOR METALS LTD.

NEELKANTH STEELS

S.R.JAIN CHEMICALS(P) LTD.

“ The objective of the GS Radiators is enhancement in customer satisfaction by carrying out improvements in manufacturing facilities, leading to reduced rejections and low environmental pollution.

Providing Motivational Climate in the Organization Enhancement in employee's skill and knowledge by providing conducive environment, motivating them by creating a positive Organizational Culture has helped a lot in improving the competencies of our personnel. Spirit De Corps and team spirit is the inherent trait from the very inception of GS Radiators.”

Vision and Missi

Company policies:-

26

EXPORT IMPORT POLICY :- To accelerate the country’s transition to a globally vibrant

economy with maximum benefit from expanding global market opportunities.

To stimulated sustained economic growth by providing access to essential raw materials, components, consumable and capital

goods required for augmented production. To provide consumer with good quality at reasonable price.

Purchase policy:- Company maintains the goodwill of approval vendors. Purchase preference is given to those who have adopted

internationally known quality management system. There are continuous checks on inventory levels so as to avoid the

situation of over stocks.

SALES POLICY:- Company maintains the goodwill of all the customers.

Sales preference is given to those who have adopted internationally known quality management system.

There is continuous check on inventory levels to avoid the situation of overstocks.

WELFARE ACTIVITIES :-

Provide uniform and shoes to the employees

Provide canteen and mess facility.

Provide medical coverage to the employees.

Providing ambulance and first aid facility.

Various awards and rewards given to employees.

SAFETY MEASURES:-

GS Radiators Ltd. lays utmost care towards health and safety of

all personnel. Central safety committee at the apex level and the

department safety committee at the shop floor are formed to

monitor the safety activity. Training on safety, firefighting is given

to all level of employees at the regular intervals. The company is

generally providing Personal Productive Equipment’s like helmets,

ear plugs, safety shoes, googles etc. to their employees.

SOCIAL ACTIVITIES:-

Educational Institutes run by GS Group:

1. Guru Nanak Public School.

2. Ramgarhia Girls College.

3. Ramgarhia Middle School.

4. Ramgarhia Senior Secondary School.

27 CHAPTER

GS RADIATORS:-

Radiator

Radiator: a part of the cooling system in a liquid-cooling engine, removing

excess heat from the engine and dissipating it into the atmosphere.

The radiator is important in internal engines because the engine cannot run

properly when it is overheated. At high enough Temperatures, oil lubricating the

engine’s moving parts breaks down and burns away. Eventually some of those

parts jam or melt and engine stops running.

A radiator works on the principal that that the heat flows from the hottest region

to the coolest region, and heat in any substance radiator into cooler air surrounding

it. Most cars and trucks use a liquid to transfer heat away from the engine. Engines

used in lawn mowers, chain saws, airplanes, most motorcycle, and some cars rely

only on the transfer of heat from metal to the air. They are called air –cooled

engines.

In liquid –cooled engines, a coolant – usually a mixture of water and chemicals –

circulates through hollow chambers that surround the engine’s cylinders. Heat

28

CHAPTER

produced by burning fuel is transferred from the metal into the coolant. A pump

circulates coolant through the engine to the radiator. Hot coolant arrives at the

radiator, which exposes the coolant to cooler metal and lowers its temperature.

Afterwards, the coolant is pumped through the engine to repeat the cycle.

In a down – flow radiator, the tubes run vertically. In a cross – flow radiator, the

tubes run horizontally, which generally allows for longer tubes and increased heat

transfer. Some radiators have zigzag pattern of tubes to increase their length and

surface area. Making the walls of the tubes as thin as possible improves efficiency

by reducing the distance heat must travel through metal to air. Also some metals

transfer heat better than others.

Thin metal fins support the tubes and also help transfer heat to the air by

increasing surface area, which increase the efficiency of the radiator. The cooling

system normally includes a fan to draw air past the tubes. The fan is important

when the engine is running and generating heat but the car isn’t moving quickly

and causing air to flow past the fins.

CLASSIFICATION OF RADIATORS:-

29

BASIC CONSTRUCTION:-

1. Vertical Flow:

Radiators which have their cores mounted in vertical position so that the hot engine

coolant moves from upper tank, vertically downwards through the core, and finally to the

lower Vertical Flow Radiators.

2. Cross Flow:

Radiators having their cores mounted in horizontal position so that the hot engine coolant

moves from side tank to the opposite side tank, depending on design, In this type of

radiator, the filler well in most cases is in the side tank.

CONSTRUCTION OF CORES:-

1. Gill type radiators core:

The Gill type radiator core has the advantage of fewer soldered joints and is therefore a

stronger construction as compared to pack type core.

2. Pack type radiator core:

It provides much larger surface area for heat radiation for the same size of the core, in

other words it is more efficient. Other is the ease of core assembly of the pack type.

Therefore it is much easier to manufacture Pack type cores as compared to Gill type

cores.

30

BASIC CONSTRUCTION

VERTICAL FLOWCROSS FLOW

CONSTRUCTION OF THE CORE

GILL TYPE RADIATOR COREPACK TYPE RADIATOR CORE

MA NUFACTUR

Production process is process of goods and services by combining as

utilizing the inputs available from different factors of production.

STEPS IN MANUFACTURING PROCESS:-

Preparing for production

Raw material

Basic processing of raw material

Making of parts/components/assemblies

Quality check

Assembly/manufacturing

Quality

Finished & packed

Delivering or shipping

MANUFACTURING CRITERIA OF GS

RADIATORS:

Work instructions & specifications at all stages.

Development of employees at all levels of organization through

continuously training & education.

Minimize wastage by doing the things right at first time.

31

MA NUFACTUR

GS Radiators Ltd.  is a regular investor in

all areas of its development activities.

The modern methods of Research and

Development are duly supported by

latest additions to our modern hi-tech

Tool Room, Machines like Mazak

CNC Vertical Machining Centre, Charmilles Wire cut M/C etc. with

CAD/CAM software. This also includes capability to produce its

own Plastic Moulding on Windsor Injection Moulding machine.

Besides radiators, we are also fully equipped with precision

Sheet Metal and Plastic components to meet future demand of

Automotive Sector.

 

01. RADIATOR TYPE :

COPPER BRASS CORES WITH BRASS

32

MAC

HINES

USED

M

ANU

FAC

TANKS SOLDERED CONSTRUCTION.

COPPER BRASS CORES WITH

PLASTIC TANK

02. CORE SYSTEM : A) FLAT FIN/GILL TYPE – 2 TO 6 ROW

B) MCCORD TYPE/PACKTYPE-

2TO4ROW

03. MACHINE/EQUIPMENT :- 1. TUBE MILL:

Machine imported from West Germany. Brass foil, coated with solder on

both sides is formed into seam locked tube.

Solder coating given – 25 microns

Machine speed – 40 Mts. /Min

2. FIN ROLLING MACHINE:

Machine imported West Germany. Electronic Controls Provided.

a) Flat Fin – Capacity 3R, 4R, 5R, 6 Speed: 20m / min.

b) Corrugated Fin - Capacity 2R, 3R, 4R Speed: 20m / min.

c) Material: Copper Foils – 0.04 to 0.05mm thick used.

3. CORE ASSEMBLY FIXTURES:

Semi-Automatic – Indigenous make as per collaborator’s design.

4. BAKING OVEN:

Machine imported from UK Continuous baking system with belt conveyor

operating with PID Controls Speed adjustable. Core from core assembly are

33

M

ANU

FAC

moved to baking through conveyor and handing is minimized to avoid

damages.

5. RADIATOR ASSEMBLY:

a) Fixtures designed indigenously

b) Assembled radiators move to final finishing by ground conveyor.

6. PAINTING:

Conveyorised Spray booth supplied by a reputed Indian manufacturer.

Radiators are painted in dust free atmosphere. Further it ensures paint free

working atmosphere. Radiators are baked at 120xC for a total time of 40

Min.

7. PACKING:

a) Carton Box Packing

b) Wooden Boxes provided for longer destinations.

C. DEVELOPMENT FACILITIES:

Full-fledged design office exists in the plant with experienced design

engineers.

D. TESTING FACILITIES:

All design are tested as per IS 7611.Following tests are done.

1. 100% Leak test.

2. Vibration test.

3. Impulse test.

4. Bump test.

5. Heat dissipation test (Plenum Chamber)

34

E.QUALITY ASSURANCE:

POLICY: QUALITY-COST-DELIVERY-SERVICE (QCDS)

1. All process sheets are made available by collaborators & updated

periodically.

2. Each Station has check sheets with control parameter for monitoring.

3. Patrol Inspector to monitor process.

4. Statistical process control systems are used in the manufacturing line.

5. All chemicals & chemical lab.

6. All incoming materials are checked against specified standard.

7. Acceptance tests as per IS 7611 are conducted for each batch of radiators.

8. IS 9002 – Preliminary Stage.

F. DEVELOPMENT FOR NEW RADIATOR:

1. Generally samples are to be provided by the customers with the following:-

a) Material specification/dry weight.

b) Heat dissipation at specified water flow & air flow.

c) Water capacity.

d) Operating pressure.

e) Required performance tests with parameters

SELLING MARKETS:-

35

MANUFACTURING FACILITY:-

Products & infrastructures

Cost Components.

Forged Components.

Machined Components.

36

Original Equipment

Market

In O.E.M, GS Radiators supplies its original

equipment to manufacturers who

manufacture new vehicle & it is main source of

demand for automobile components of the

company. These major manufacturers include Ashok Leyland Ltd.,

Mahindra & Mahindra Ltd., Hindustan Motors Ltd., Punjab Tractors

Ltd., Standard Tractors Ltd. etc.

Replacement Market

In this market GS Radiators supplies its component all over the country

through its dealers who finally deal them to choose customers. Who need them for replacement purposes?

Export Market

In this, targets are made of foreign countries such as

UNITED KINGDOM,

HOLLAND etc. The company export

its products to markets of there

countries. It caters to need of wide

range of vehicle like Toyota, Mazda, and

Isuzu etc

QUALITY MANAGEMENT SYSTEM

QUALITY - AN - OBSESSION

Consistency in our product quality speaks for itself. Our quality objective is to meet or rather exceed customer's expectations. We have maintained International Quality management system by incorporating Quality standard of ISO / TS / 16949 duly accredited, by AQSR International Inc. Ann Arbor Michigan USA. 

QUALITY ASSURANVE & INFRASTRUCTURE:-

37

QUALITY ASSURANCE

At G.S. Radiators, quality is an established result of a well-designed & organized system. The concept of Total Quality Control ‘TOM is the hallmark of GS Radiators’ quality assurance team, with extreme core being exercised right from the selection of materials. Instead of today’s highly competitive & quality conscious marketGS Radiators offer the high performance’ core Matrix of Gill & Tubes far heavy commercial vehicles as well as off-highway application such as Tractors & Bull Dozers & Pack Construction or Serpentine Louvered Matrix for Car, Jeeps.

DEVELOPMENT INFRASTRUCTURE

Full – Fledged DESIGN facilities with experienced design engineers – to provide the optimum cooling solutions for the engine management system using advance CAD/CAM solutions & 3D-CNC machining facilities.Facilities exist for prototype development testing.Tool-Room with machines having close accuracy.Calibration facilities.

QUALITY MANAGEMENT SYSTEM

QUALITY POLICY :-

38

QU

ALITY

MANA

GEME

NT

CHAR

T

PRICING STRATEGIES OF G.S.

RADIATORS:-

Price of the G.S. Radiators Firm depends upon the cost of raw material, in

such a manner that with increase in the cost of

raw material there will be increase in the market

price of the machinery. But with a decrease in the

raw material the price of the machine will

automatically proportion.

Labor cost puts great effect on the increase and decrease of the product of

G.S. Radiators because they use to have the very

39

FUN

CTION

S OF

VARIO

US

DEPAR

TMEN

TS

PR

ICI

NG

POL

ICI

ES

&

STR

skilled labor in the factory. So that it will conclude a large portion of cost of

the production of the products.

Inflating and deflation of the market scenario influences in most of the

industries and semi industrial. They use to change their pricing strategy

according to the market scenario. So that different strategies are very helpful

to them to survive in the market well.

Along with the above the competitors are also in great influence on the

pricing strategy of the G.S. Radiators because the customer is very much

aware about the market rate of all the other industries.

GS RADIATORS HAS TWO MAIN

PRICING POLOCIES:-

PRICE ADJUSTMENT

STRATEGIES:-

Geographical Pricing:

A firm decides how to price its products to

consumer in different parts of the country. They

use to charge the different price rates from the

different customers belonging to different areas

of the country. Areas like Gujrat, Bangalore,

Gurgaon, Noida, and Ludhiana are the core area of the G.S. Radiators.

Discount Pricing and Allowances:

40

Finance

It looks after controlling of financial matter of the company and also financial matter pertaining to the purchase of major raw material.

HOD - Purchase

It is responsibilities for management of procurement activities. It ensures timely receipt of material meeting the specification. It also carries out supplier Quality Audits.

Exports

This department looks after the export of the group. It accepts the overseas orders and arranges for the dispatch of the same.

Marketing

It looks after the marketing activities and coordinates the order & schedules received from customer. It coordinates the execution of contracts as per the guidance provide by CMD.

Personnel

It is responsible for all the time of activities, legal matter, pertaining to labour courts, worker welfare and recruitments of personnel.

EDP

This department is concerned with the processing of the data electronically on computers.

PR

ICI

NG

POL

ICI

ES

&

STR

PR

ICIN

G

POLI

CIES

Discounts in the machinery tools are reduction from final selling price that

are available to different channel members and final consumer for

performing different functions.

It can be in a following ways.

1. Trade Discounts.

2. Cash Discounts

3. Quantity Discounts

4. Seasonal Discounts

5. Allowances.

Customer Segment Pricing:

In this type customer pays different prices for the same machinery tool.

Location Pricing:

Different Location are price differently even though the cost of the offering

each location is the same.

Time Pricing:

In this pricing strategy the firm used to charge a price differently in the

delivery period of the machinery to the consumer if the consumer wants its

machine most in the earlear period he has to pay high for it. In the same way

if there is a delay in the delivery of the ordered machine their may be a

chances of discounts and other cash allowances.

Odd Pricing:

41

Skimming Price Policy sets highest price to first profit from price in elastic customer then successfully lowering the price often under the increasing competition that is

called ‘Skim the cream’ This means to say that to have an high profit at the most groom period So that there will be an extra income for to compete in the competition in the near

future and to cover the risk and uncertainties.

Skimming Price Policy

The Penetration Price Policy is a policy where the firm will have low price first and try to increase their market share at the most by increasing the volume of

their product sales. They use to compete to competitors by most reasonable price.

But the G.S. Radiators are the organization where there is a less chance

of decrease in the price tag of their machinery tools.

Penetration Price Policy

The G.S. Radiators firm is a firm who is not very much aware about the odd

pricing of the products them does’ not believe in the odd pricing.

G.S. Radiators is type of firm who is not very much belonging to a singly

pricing strategy. They believe that there should be a different price strategy

for the different consumer to the different areas at the different market

scenario. To some extent they use to have a penetration price policy because

there are 300 competitors are standing in the Ludhiana only and 22 to 30 are

such type of competitors who are producing the products at their quality

product level.

So, that the manager of the firm used different price strategies in a different

period after knowing the competitors pricing. For this I have done a

comparison of same segment competitors like Sandan, Telco, Banco and

Cougar. These are the firms which are very much aware about the customer

need and satisfaction. They often use to produce their product by an advance

technology which will reduce their cost of the production and also helpful to

attract the more and more customers.

42

POLICY ADOPTED BY

G.S. RADIATORS.

G.S.

Radiators

Sandan Banco Telco M.G.P Cougar

Raw material

Quality A B B A B or C B

Value of

Money B C B A C C

Service after

Sales B C A A B B

Product Quality

A B B A C B

Grade A - Excellent

Grade B - Good

Grade C - Not Good

43

COMPARISON CHART OF

GS RADIATORS WITH

OTHER COMPANIES:-

.

ADVERTISEMENT :-

Advertisement is the mass communication of the information intended to

enforce buyers so as to maximize profits. Advertisement is a word which

means to turn the mind toward. It may be to give public notice or to

announce publicity.

To give information to prospective buyer about the machinery tool.

To create demand

To educate people in the use of products

To remove and overcome competition

To build goodwill and create brand loyalty

44

1. Advertisement policy

2. Demonstration

3. Public Realtions

MARKETING STRATEGIES

OF G.S. RADIATORS

WHY G.S. RADIATORS COMES INTO ADVERTISEMENT

MARKET?

The manager of the G.S. Radiators believes in the advertisement. In his point

of view he thinks that instead of reducing the cost of the product we should

advertise their product at the large level and will recover the cost of

advertisement by increasing the sales volume and large profit of the firm.

It creates demand by informing about the prompt availability of the special

machinery tools.

It promotes sales by marinating the present demand and expending the

market by attracting more and more customers.

It makes the goodwill by making the name of the firm and his product

famous and known in every industry field.

Helps in control the sales volume in out of the seasonal fluctuation in

demand.

It facilitates quick turn over rate by promoting highly responsive

market and thus enables the firm to keep smaller inventories which in turn

reduces May expenses and losses.

It reduces the cost of production by making large scale production through

creation of demand

It increase profit by increases sales reduction in cost of production and cost

of distribution. As the cost of per unit reduced which will increase sales in

turn to which there will be increase in the profits.

45

TYPES OF ADVERTISEMENT BY THE G.S.

RADIATORS :-

46

Yellow pages bookIt is a book in which there are several yellow pages. Yellow

pages is the sign of indication to the consumer who want to buy

the machinery tool for the further production in their

factory. It is the most popular and famous type of

advertisement in the field of industry advertisement.

Press MediaPress media of advertisement

refers to publication of advertisement in newspapers

magazines and journals. This is the most important media. A large

number of national state and local newspaper industrial and

technical journal and a wide variety of magazines are available

in which various types of advertises are frequently appear.

Magazines and JournalsMagazines and Journals are used by the firm periodically

may be monthly, quarterly, or yearly. G.S. Radiators use to advertise their products in

various types of magazine like ordinary magazines, special

magazines, industry magazines, machinery tool magazines etc.

etc.

Painted DisplayPainted Display refers pained bulletins and wall paintings. These displayed on structure blade of metal or roofs of the

building. They are usually of big size that can be easily read and see from the large distance but

this is much costlier which discourage the G.S. Radiators

firm.

TYPES OF ADVERTISEMENT

Exhibitions and Demonstrations:-

These are becoming very popular these days in our county in the field of

industry of machinery tools. There are many types of exhibitions held in the

industrial area and also in the different states related to the industry like

Gurgaon, Ludhiana, and Noida. They are organized on a large scale in the

industrial places where masses of industrial consumer can reach easily. They

can order a special type of machine as they required to the manufacturer.

PUBLIC RELATIONS

Public relations is the management of relationships and communication to

establish goodwill and mutual understanding between an organization and

its publics. Public relations is more wide ranging than marketing which

primarily focuses on markets, distribution channels and customers. By

communicating to other groups, public relations creates an environment

which it is easier to conduct marketing. Public relation activities include

publicity, corporate advertising, seminars, publications, charitable donations.

FUNCTIONS OF PUBLIC RELATIONS:-

Facilitates company's overall Reputation.

Aids Promotion.

Helps in tackling social and environmental issues.

Ensures that customers are treated well.

Develops reputation as a good supplier and customer.

47

48

49

SWOT ANALYSIS OF

G.S.RADIATORS

Strengths:Better Quality.

Competitive Staff.

Advance technology from Clasonic Lienelli Radiators

Limited U.K.

Long Life product.

Computerized System.

High production capacity.

High product range.

Better promotion activities.Weaknesses:Slightly higher prices.Communication gap.

Long hierarchy.

Opportunities:A brand image is very good

& production base is too wide, G.S.Radiators can

have some good customer with whom direct business

can be established this, G.S.Radiators will have better quality, regularity

supply.Threats:Frequent increase in prices of

raw material.Serious untimely pioneer cuts.

Government policies.Increasing transportation cost.

Increasing wages & salary limit fixed by Government.

CHAPTER NO. 5

INTRODUCTION TO THE SUBJECT

A marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to increase

sales and achieve a sustainable competitive advantage.

A strategic marketing plan usually evolves from an organization’s overall

corporate strategy and serves as a guide for specific marketing programs and

policies. Marketing strategy is based on a situation analysis- a detailed

assessment of the current marketing conditions facing the company, its

product lines, or its individual brands. From this situation analysis, a firm

develops an understanding of the market and the various opportunities it

offers, the competition and the market segments or target markets the

company wishes to pursue. Marketing strategy is the complete and

unbeatable plan, designed specifically for attaining the marketing

objectives of the firm/business unit. The marketing objectives

indicate what the firm wants to achieve; the marketing strategy provides

the design for achieving them.

EXAMPLE: - if the marketing objectives of a business unit stipulate that

next year, it should achieve a sales revenue of Rs. 1,000 crore and a net

profit of 15 percent of sales revenue, it is the job of marketing strategy to

50

indicate how and wherefrom this sale and profit will come, which product

lines/products/brands will accomplish this task and how.

NEED FOR THE STUDY :-

1. The study has great significance and provides benefits to various parties whom

directly or indirectly interact with the company.

2. It is beneficial to management of the company by providing crystal clear picture

regarding important aspects like liquidity, leverage, activity and profitability.

3. The study is also beneficial to employees and offers motivation by showing how

actively they are contributing for company’s growth.

4. The investors who are interested in investing in the company’s shares will also

get benefited by going through the study and can easily take a decision whether to

invest or not to invest in the company’s shares.

OBJECTIVES OF THE STUDY:-

To identify need of new innovations of the company towards sales promotion.

To know about the different strategies for sales promotion of G.S. Radiators

SCOPE OF STUDY:-

Help in Decision Making.

Help in communicating, coordination and control.

Aid in financial forecasting and comparison.

Help in finding out financial solvency and communicating values.

51

Research methodology includes the various steps in defining a problem by

making a search. The various steps used in research of a program as following:-

Determine / Define the problem

Specifying what information is needed.

Decide the technique for acquiring information

Gather & process the information

Analysis and interpret the information

Present the findings

52

RESEARCH DESIGNThe research design of

this survey has been considered as

descriptive research as the survey is directed

towards marketing strategies opted by G.S.

Radiators.

SAMPLING DESIGN

Universe for this project is G.S.

Radiator, Ludhiana.

SAMPLE SIZE

In view of the constraints,

sample size was restrained to 10.

SAMPLING UNIT

Employees of the G.S. Radiators,

Ludhiana.

RESEARCH

METHODOLOGY

Primary Research

Secondary Research

LIMITATIONS OF THE STUDY:-

Study was confined to managerial level.

Sample selected was simple random sample restricted to 10 employees.

The study was confined only at G.S. Radiators.

The sources of information were only through questionnaire.

53

Primary Research:-

In primary research first of a questionnaire related to the particular problem

is prepared by the researcher , then researcher give this questionnaire to

various respondents, the respondent has to fill this questionnaire, the

researcher collects the data from various respondents after filling of

questionnaire, this type of research is known as primary research.

Secondary Research

There are two types of secondary research

a) Internal: in this type of research the required information & data is collected

from within the company. Required data is collected from various charts,

business reports, company service reports etc.

b) External: in this type of research the required information & data is collected

from various magazines, newspaper etc. .

DATA COLLECTION METHOD

CHAPTER NO. 6

INTRODUCTION OF RATIO ANALYSIS

PROBLEM STATEMENT:-

How to measure the financial position of the company with the help of ratio analysis?

ABOUT   RATIO   ANALYSIS: The ratio analysis is the most powerful tool of

financial analysis. Several ratios calculated from the accounting data can be grouped

into various classes according to financial activity or function to be evaluated. •

DEFINITION :  “The indicate quotient of two mathematical expressions “and as

“The relationship between two or more things. “It evaluates the financial position

and performance of the firm.

NATURE OF RATIO ANALYSIS:-

Selection of relevant data from the financial statements depending upon the

objective of the analysis.

Calculation of appropriate ratios from the above data.

Comparison of the calculated ratios with the ratios of the same firm in the past, or

the ratios developed from projected financial statements or the ratios of some other

firms or the comparison with ratios of the industry to which the firm belongs.

54

IMPORTANCE AND LIMITATIONS OF RATIO ANALYSIS:-

55

IMPORTANCE OF RATIO

ANALYSIS Aid to measure

general efficiency

Aid to measure financial solvency

Aid in forecasting and planning

Aid in intra-firm comparison

Evaluation of efficiency &

Effective tool

LIMITATIONS OF RATIO ANALYSIS

Limitations of

accounting records

Lack of proper standards

No allowances for price level changes

Quantitative factors are ignored

Limited use & Personal bias

CLASSIFICATIONS OF RATIOS

The use of ratio analysis is not confined to financial manager only. There are different parties

interested in the ratio analysis for knowing the financial position of a firm for different purposes.

Various accounting ratios can be classified as follows:

1.

Traditional Classification:- Balance sheet (or) position statement ratio.

Profit & loss account (or) revenue statement ratios.

Composite (or) inter statement ratios.

1. Functional Classification These include liquidity ratios, long term solvency and leverage ratios, activity ratios and

profitability ratios.

2. Significance Ratios: Some ratios are important than others and the firm may classify them as primary and

secondary ratios. The primary ratio is one, which is of the prime importance to a concern.

The other ratios that support the primary ratio are called secondary ratios

56

CLAS

SIFI

CATI

ON

1. Traditional Classification

2. Functional Classification

3. Significance ratios

IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS ANALYSES ARE:

57

Current ratioQuick (or) Acid-test (or) Liquid ratioAbsolute liquid ratio (or) Cash position ratio

LIQUIDITY RATIOS

PROPRIETORY RATIOLEVERAGE

RATIO

Working capital turnover ratioFixed assets turnover ratioCapital turnover ratio Current assets to fixed assets ratio

ACTIVITY RATIO

Net profit ratioReturn on total assets Earnings per shareOperating profit ratioPrice – earnings ratio

PROFITABILITY RATIO

DATA ANALYSIS AND INTERPRETATION

FINANCIAL ANALYSIS OF GS RADIATORS

1. CURRENT RATIO:-

SR.NO YEAR CURRENT

ASSETS

CURRENT

LIABLITIES

CURRENT

RATIO

1. 2011-12 201921587.01 186102420.99 1.09

2. 2012-13 187175667.34 153943649.52 1.22

3. 2013-14 214072434.69 175087259.62 1.22

INTERPRETATION: The ideal level of current ratio is 2:1.we shown too much higher ratio it’s good for the company. Higher the current ratio, the larger is the amount of rupees available per rupees of current liabilities. The

58

2011-12 2012-13 2013-14

CURRENT RATIO 1.09 1.22 1.22

1.025

1.075

1.125

1.175

1.225

1.09

1.22 1.22

CURRENT RATIO

CURRENT RATIO

YEAR

T I M

E S

more is the firm’s ability to meet current obligation and greater is safety of fund of short term creditors.

2. QUICK RATIO:-

SR.NO YEAR QUICK

ASSETS

CURRENT

LIABLITIES

QUICK

RATIO

1. 2011-12 123030580.53 186102420.99 0.66

2. 2012-13 113105827.34 153943649.52 0.73

3. 2013-14 141967611.69 175087259.62 0.81

2011-12 2012-13 2013-14

QUICK RATIO 0.66 0.73 0.81

0.05

0.15

0.25

0.35

0.45

0.55

0.65

0.75

0.85

0.660.73

0.81

QUICK RATIO

QUICK RATIO

YEARS

T I

M E

S

INTERPRETATION: A quick ratio is an Indication that the firm is liquid and the ability to meet its current liabilities in time. The Ideal quick ration is 1:1, Company Quick ratio is less than the ideal ratio. So, The Quick ratio is increased because the sundry debtors are increased due to the increase in the corporate tax and for that the provision created is also

59

increased. So, the ratio is also increased from 2011 and the ration is less than ideal ration from 2011 to 2014. This shows Company has not strong liquidity position.

3. ABSOLUTE LIQUID RATIO

SR.NO YEAR CASH & BANK

BALANCE

CURRENT

LIABLITIES

CASH

RATIO

1. 2011-12 27093502.41 186102420.99 0.15

2. 2012-13 24483513.43 153943649.52 0.16

3. 2013-14 33049995.43 175087259.62 0.19

2011-12 2012-13 2013-14

ABSOLUTE LIQUID RATIO 0.15 0.16 0.19

0.010.030.050.070.090.110.130.150.170.19

0.150.16

0.19

ABSOLUTE LIQUID RATIO

ABSOLUTE LIQUID RATIO

YEARS

T I M

E S

INTERPRETATION: According to the rule of thumb the absolute liquid assets is 0.5/1. But when we calculate the figure is less 0.15 in 2012, 0.16 in 2013 and 0.15 in 2014 that means the company was able to satisfy its primary cash requirement with cash generation by operation.

60

Because of in both years the company Liquidity ratio is extremely increasing in each year for that company has sufficient Assets to meet the requirement of its liabilities.

4. INVENTORY TURNOVER RATIO

SR.NO YEAR COST OF GOOD SOLD

AVERAGE INVENTORY

INVENTORY TURNOVER

RATIO

1. 2011-12

271567212.70 88426236.00 3.07

2. 2012-13

279655789.56 7680423.24 3.66

3. 2013-14

391968603.45 73087331.50 5.36

INTERPRETATION: Inventories are a major part of current assets. If any company wants to manage its working capital efficiency, it has to manage its inventories efficiently. The Table

61

2011-12 2012-13 2013-14

INVENTRY TURNOVER RATIO 3.07 3.66 5.36

0.5

1.5

2.5

3.5

4.5

5.5

3.073.66

5.36

INVENTRY TURNOVER RATIO

INVENTRY TURNOVER RATIO

YEARS

TIM

ES

shows that inventory ratio is increasing which shows the good

financial position & reputation of the company.

5. DEBTOR TURNOVER RATIO:-

SR.NO YEAR SALES AVERAGE DEBTORS

D.T RATIO

1. 2011-12 346343670.90 86381915.96

4.01

2. 2012-13 333379729.35 89779696.02

3.71

3. 2013-14 495871905.82 98769965.08

5.02

2011-12 2012-13 2013-14

DEBTOR TURNOVER RATIO 4.01 3.71 5.02

0.5

1.5

2.5

3.5

4.5

5.5

4.013.71

5.02

DEBTOR TURNOVER RATIO

DEBTOR TURNOVER RATIO

YEARS

TIM

ES

INTERPRETATION: Debtors constitute a substantial portion of total current assets. In India it constitute one third of current

62

assets. The above Table is depicting that there is increase in debtors. It represents an extension of credit to customers. The reason for increasing credit is competition and company liberal credit policy.

6. CREDITIOR TURNOVER RATIO

SR.NO YEAR PURCHASES AVERAGE

CREDITORS

C.T RATIO

1. 2011-12 333082529.85

95272651.83 3.50

2. 2012-13 346436700.90

87211668.18 3.97

3. 2013-14 333377990.35

94051685.90 3.55

2011-12 2012-13 2013-14

c.t ratio 3.5 3.97 3.55

3.25

3.35

3.45

3.55

3.65

3.75

3.85

3.95

4.05

3.5

3.97

3.55

c.t ratio

years

TIM

ES

63

Interpretation: A high ratio indicates that creditors are not paid in time while a low ratio gives an idea that the business is not taking full advantages of credit period allowed by the creditors.

Sometimes it is also required to calculate the average payment period (or average age of payable or debt period enjoyed) to indicate the speed with payments for credit purchase are made to creditors.

64

7. ASSETS TURNOVER RATIO

SR.NO YEAR SALES NET FIXED ASSETS

ASSET TURN OVER RATIO

1. 2011-12 328021883.90 293900614.68 1.12

2. 2012-13 315363706.35 300715242.29 1.05

3. 2013-14 459739270.82 305778292.86 1.50

2011-12 2012-13 2013-14

ASSETS TURNOVER RATIO 1.12 1.05 1.5

0.1

0.3

0.5

0.7

0.9

1.1

1.3

1.5

1.121.05

1.5

ASSETS TURNOVER RATIO

ASSETS TURNOVER RATIO

YEARS

TIM

ES

INTERPRETATION: Higher is the ratio the better is the performance it indicates that fixed assets are being efficiently utilized. An improvement in the ratio indicates better performance and decline in it would show a declining efficiency or improvident investment. Increase in Fixed Assets Turnover Ratio indicates that fixed assets have been used as efficiently as they had been used in previous years.

65

8. NET PROFIT RATIO

SR.NO YEAR PROFIT AFTER

TAX

SALES NET PROFIT MARGIN (%)

1. 2011-12 5069952.82

328021883.90 1.55

2. 2012-13 5399458.96

315363706.35 1.71

3. 2013-14 8121536.16

459739270.82 1.77

2011-12 2012-13 2013-14

NET PROFIT RATIO 1.55 1.71 1.77

1.425

1.475

1.525

1.575

1.625

1.675

1.725

1.775

1.55

1.71

1.77

NET PROFIT RATIO

NET PROFIT RATIO

YEARS

PERC

ENTA

GE

INTERPRETATION: The net profit ratio is the overall measure of the firm’s ability to turn each rupee of income from services in net profit. If the net margin is inadequate the firm will fail to achieve return on shareholder’s funds. High net profit ratio will help the firm service in the fall of income from

66

services, rise in cost of production or declining demand. And G.S Radiators Ltd profit margin increase every year because of its inventory turnover ratio but it is not enough.

9. OPERATING PROFIT RATIO

SR.NO YEAR OPREATING PROFIT

SALES OPERATING PROFIT

MARGIN (%)

1. 2011-12 3769295.11 328021883.90 1.15

2. 2012-13 4211845.51 315363706.35 1.33

3. 2013-14 7014475.23 459739270.82 1.53

2011-12 2012-13 2013-14

OPERATING PROFIT RATIO 1.15 1.33 1.53

0.1

0.3

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.15

1.33

1.53

OPERATING PROFIT RATIO

OPERATING PROFIT RATIO

YEARS

PER

CEN

TAG

E

INTERPRETATION: This ratio shows that effectiveness of a company's management by comparing operating expense to net sales. In compare the operating ratio is increasing in 2014 that means increase in operating cost that increase total productivity.

67

This means that the company has able to generate more margin as it expense in operating sector. Using this ratio the investors interested in investing more in money in the company.

10. DEBT EQUITY RATIO:-

SR.NO YEAR TOTAL DEBT NET WORTH D.E RATIO

1. 2011-12 213277910.53 106592246.86 2.00

2. 2012-13 205900282.36 102992044.93 2.00

3. 2013-14 243182150.00 107786896.24 2.26

2011-12 2012-13 2013-14

DEBT EQUITY RATIO 2 2 2.26

1.875

1.925

1.975

2.025

2.075

2.125

2.175

2.225

2.275

2 2

2.26

DEBT EQUITY RATIO

DEBT EQUITY RATIO

YEARS

TIM

ES

INTERPRETATION: The Company focus on this ratio to improve its market position but overall the company leverage is good. But a lower D/E ratio, the lenders enjoy a better margin of safety. The calculate figure is 0.19 in 2014 which means that the

68

company has been constructive in the growth of their financial control in Previous Years.

11. INTEREST COVERAGE RATIO

SR.NO YEAR EBIT INTEREST I.C RATIO

1. 2011-12 23160083.52 18090130.70

1.28

2. 2012-13 24247360.04 18847901.08

1.29

3. 2013-14 24378339.00 16256802.80

1.50

2011-12 2012-13 2013-14

INTEREST COVERAGE RATIO 1.28 1.29 1.5

1.175

1.225

1.275

1.325

1.375

1.425

1.475

1.525

1.28 1.29

1.5

INTEREST COVERAGE RATIO

INTEREST COVERAGE RATIO

YEARS

TIM

ES

69

INTERPRETATION: Interest coverage ratio is 1.28 in the year 2011. But it is increased automatically to 1.50 in year 2014. And it is increasing from last three years. In this positon outside investors is interested to invest the money in this company.

12. EQUITY RATIO

SR.NO YEAR SAHRES HOLDERS

FUNDS

TOTAL ASSETS

EQUITY RATIO

1. 2011-12 106592246.86 306282157.39 0.35

2. 2012-13 102992044.93 295148327.19 0.35

3. 2013-14 107786896.24 316408258.54 0.34

2011-12 2012-13 2013-14

EQUITY RATIO 0.35 0.35 0.34

0.335

0.337

0.339

0.341

0.343

0.345

0.347

0.349

0.351 0.35 0.35

0.34

EQUITY RATIO

EQUITY RATIO

YEARS

TIM

ES

70

INTERPRETATION: This ratio ensures whether the capital employed has been effectively used or not. This is also test of marginal efficiency and business performance. Higher total equity turnover ratio is always required in the interest of company.

13. RETURN ON EQUITY RATIO

SR.NO YEAR EBIT CAPITAL EMPLOYED

R.O.I RATIO

1. 2011-12 3369952.82 32292500 10.44

2. 2012-13 3899458.96 32292500 12.08

3. 2013-14 5821536.16 32292500 18.02

2011-12 2012-13 2013-14

RETURN ON EQUITY FUNDS

10.44 12.08 18.02

13579

1113151719

10.4412.08

18.02

RETURN ON EQUITY FUNDS

RETURN ON EQUITY FUNDS

YEARS

PERC

ENTA

GE

71

INTERPRETATION: This ratio indicates what percentage of profits earned are enjoyed by equity shareholders. Return on Equity Share Capital or earnings per share helps to determine the market price of equity shares of the Company while comparing with the ratios of other companies. It will indicate whether the capital is effectively used or not. It is effectively used by G.S. Radiators Ltd.

14. RETURN ON INVESTMENT RATIO

SR.NO YEAR NET PROFIT

SHARES HOLDERS

FUNDS

R.O.E. RATIO

1. 2011-12 3369952.82

106592246.86 0.03

2. 2012-13 3899458.96

102992044.93 0.04

3. 2013-14 5821536.16

107786896.24 0.05

72

2011-12 2012-13 2013-14

RETURN ON INVESTMENT RATIO

0.03 0.04 0.05

0.0050.0150.0250.0350.0450.055

0.030.04

0.05

RETURN ON INVESTMENT RATIO

RETURN ON INVESTMENT RATIO

YEARS

TIM

ES

INTERPRETATION: Return on investment is very low in all the past three years from 2011 to 2014 and hardly reached at 0.05 but in year 2014 due to less earnings. This doesn’t shows the sound position of the company.

15. RETURN ON ASSETS

SR.NO YEAR NET PROFIT

AVERAGE TOTAL ASSETS

R.O.A. RATIO

1. 2011-12 3369952.82

316251108.64 1.07

2. 2012-13 3899458.96

300715242.20 1.30

3. 2013-14 5821536.1 305778292.86 1.90

73

6

2011-12 2012-13 2013-14

RETURN ON ASSETS 1.07 1.3 1.9

0.1

0.3

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

1.07

1.3

1.9

RETURN ON ASSETS

RETURN ON ASSETS

YEARS

TIM

ES

INTERPRETATION: The Return on assets shows as to how

much is the profit earned by the firm.

CONCLUSION OF DATA ANALYSIS AND

INTERPRETATION

Total value will be calculated for all the values on the LIKERT SCALE and T

Testwill be applied to check the relation between various dimensions of retention.

The data is processed and analyzed by tabulation interpretation so that the findings

can be communicated and can be easily understood. The findings are presented in

the best possible way. Tables and graphs will be used for illustration of principal

findings of the research.

74

FINDING AND ANALYSIS:-

1. What market segments are you targeting?

Interpretation:

The major target market of G.S. Radiator’s is OEM, Replacement and

Export market. All the respondents replied that their company deals in OEM,

replacement market and export market.

75

CHAPTER NO. 7

2. Rank the following from 1- 6 on the basis of how you have positioned your brand/products, where 1 is more important.

Parameters 1 2 3 4 5 6 Total

Score

Mean

Score

Rank

Price 1 7 2 0 0 0 49 2.33 2

Quality 9 0 1 0 0 0 58 2.76 1

Level of Customer

Service

0 3 6 1 0 0 42 2.00 3

Consistency 0 0 1 6 2 1 27 1.28 4

Credibility 0 0 1 2 3 4 20 0.95 5

Novelty 0 0 0 1 4 5 16 0.76 6

Pric

e

Qualit

y

Level

of C

usto

mer

Ser

vice

Consis

tenc

y

Credi

bilit

y

Novel

ty0

0.5

1

1.5

2

2.5

3

2.33

2.76

2

1.28 0.950000000000001 0.76000000000000

3

Interpretation:

G.S. Radiators company’s products having good quality is having highest

mean score i.e. 2.76 among the respondents. On the other hand the mean

score of the factor, Novelty of G.S. Radiator’s product is very low which

76

0.76 is because their company does not provide any novelty to their

customers.

3. Which out of the following products do you deal in?

Responses Percent of CasesN Percent

Connector Pipes 10 9.1% 100.0%Brass tank & headers 10 9.1% 100.0%Brass bushes 10 9.1% 100.0%Plastic tanks 0 0.0% 0.0%Rubber gaskets 10 9.1% 100.0%Heaters 10 9.1% 100.0%Concentric and plate type oil coolers 10 9.1% 100.0%Drain cock & plugs 10 9.1% 100.0%Radiators 10 9.1% 100.0%Radikool coolants 10 9.1% 100.0%Pressure caps 10 9.1% 100.0%Filler Caps 10 9.1% 100.0%

Total 110 100.0% 1100.0%

77

Interpretation: From the bar diagram it is revealed that G.S. Radiators

deals with products, but no one respondents response in the favour of plastic

tanks. They said that their company does not deal in plastic tanks.

78

4. How do you determine the price?

Determine the Price

Frequency Percent

Valid

Percent

Cumulative

Percent

Cost plus pricing 10 100.0 100.0 100.0

Value base pricing 0 0.0 0.0 0.0

Rate of return pricing 0 0.0 0.0 0.0

Psychological pricing 0 0.0 0.0 0.0

Competitor indexing 0 0.0 0.0 0.0

Total 10 100.0 100.0 100.0

Cost p

lus pr

icing

Value b

ase pr

icing

Rate of

retur

n pric

ing

Psyc

holog

ical p

ricing

Compe

titor

index

ing

0

20

40

60

80

100

120

100

0 0 0 0

Interpretation :

From the bar diagram it is revealed that all the respondents respond that cost

plus pricing method used by their company to determine the price. On other

hand no one respondent response in the favour of other options.

79

5. What is the distribution channel used for distribution of your products?

Distribution channel

Frequency Percent

Valid

Percent

Cumulative

Percent

Dealers/ distributors 10 100.0 100.0 100.0

Retailers 0 0.0 0.0 0.0

Wholesalers 0 0.0 0.0 0.0

Agents 0 0.0 0.0 0.0

Own stores 0 0.0 0.0 0.0

Total 10 100.0 100.0 100.0

Dealers/ distribu-tors

Retailers Wholesalers Agents Own stores 0

20

40

60

80

100

120

100

0 0 0 0

Interpretation: The above chart clearly shown that

dealers/distributors are main distribution channel of G.S. Radiators

according to their employees and whereas company have not own stores.

80

6. What is the percentage that is spent on advertising per

annum?

Percentage spent on advertising

Frequency Percent Valid Percent

Cumulative

Percent

< 10% 10 100.0 0.0 100.0

10 – 20% 0 0.0 0.0 0.0

20 – 30% 0 0.0 0.0 0.0

30 – 40% 0 0.0 0.0 0.0

40 – 50% 0 0.0 0.0 0.0

> 50% 0 0.0 0.0 0.0

Total 10 100.0 100.0 100.0

< 10% 10 – 20% 20 – 30% 30 – 40% 40 – 50% > 50%0

20

40

60

80

100

120

100

0 0 0 0 0

Interpretation: According to the respondents their company spent less

than 10% on advertising per annum. Whereas no one respondents choose

another options.

81

8. Rank the following from 1- 6 on the basis of how you spend on Research and Development.

Parameters 1 2 3 4 5 6 Total

Score

Mean

Score

Rank

New Equipment 0 7 1 0 1 1 42 2.00 2

New Process 0 0 7 1 0 2 33 1.57 3

Value Engineering 8 0 1 1 0 0 55 2.61 1

Training 0 0 1 8 1 0 30 1.42 4

Skill Level 1 1 0 0 7 1 26 1.23 5

Process Integration 1 2 0 0 1 6 24 1.14 6

New Equipment New Process Value Engineering Training Skill Level Process Integration0

0.5

1

1.5

2

2.5

3

2

1.57

2.61

1.421.23 1.13999999999999

Interpretation:

From the above table it can interpret that company spends on value

engineering in research and development category i.e. respondents rated first

rank to value engineering, and least rank to process integration.

82

9. Rank the following from 1-8 on the basis of how you tap the OEM market (OEM Strategy)

Parameters 1 2 3 4 5 6 7 8 Total

Score

Mean

Score

Rank

Product

Development

0 7 0 2 0 0 1 0 61 1.69 2

R & D 7 1 1 0 1 0 0 0 73 2.02 1

Price 0 0 0 7 1 2 0 0 45 1.25 4

Lead Time 0 0 1 0 8 0 0 1 39 1.08 5

Quality 1 0 7 1 0 1 0 0 58 1.61 3

Testing 0 0 1 0 1 7 1 0 33 0.91 6

Evaluation 1 1 0 0 0 0 2 6 25 0.69 8

Customer

feedback

1 1 0 0 0 0 6 2 29 0.80 7

Product Develop-

ment

R & D Price Lead Time Quality Testing Evaluation Customer feedback

0

0.5

1

1.5

2

2.5

1.69

2.02

1.251.08

1.61

0.91 0.690000000000001

0.8

Interpretation:

From the above table according to Weighted Average Method we can

interpret that most of the respondents given 1st rank to R & D that their

company tap OEM market, 2nd rank to product development, 3rd rank to

quality and least rank to evaluation.

83

The organizational study enables me to gather knowledge regarding the

working of an organization. The study has brought light to know the

organization as a whole. Different products and efficiency in working for

attaining of a common goal.

I have been able to understand the activities and strategies of G.S.

Radiators their way of working and their way of approaching the customers

and the importance of Advertising, i.e. how beneficial is the advertising for

any firm to communicate about their offers and events to the consumers. The

results of the survey proved to be encouraging.

The respondents were very positive in providing the information about

how GS. Radiators has to go for promotion and why do they go for G.S.

Radiators and what measures G.S. Radiators has to take in improving the

service to their customers, Though there are many competitors in the market

for this segment,

The company G.S. Radiators is doing well by satisfying its customers by

having good relationship with them and. I offer my best wishes for the

same and hope that my work will be of some use for the company

effectiveness.

84

CONCLUSION

GS Radiators should also come up with aluminum based radiators. As

the market share for these is increasing, it is better to be equipped with

both the segments.

A market survey should be conducted every quarter.

Local mechanics should be given some kind of incentive or benefit, so

as to bring in more business.

They can increase the dealer network so that it helps to increase the

market share.

They can also offer some sort of discount to the dealer.

The firm should have a special type of workers who are always

prepared for the service to the customer after sales because there is a

chance of breakdown of machinery and better service will always

makes and better satisfaction.

The percentage spent on advertising per annum should increase from

the present percentage. Advertisements could be given via radio,

television, newspaper or by way of hoardings.

85

SUGGESTIONS

Kotler Philip and Keller Kevin Lane Marketing Management; Pearson

Education Pte. Ltd. Delhi 110092, 2006.

Kotler, Philip, and Garry Armstrong (1996), Principles of Marketing

(New Delhi: Pretice Hall Of India).

Kotler, Philip, Marketing Management: Analysis, Planning,

Implementation and Control, Prentice Hall of India, New Delhi.

Mamoria C.B. Marketing Management,(2000) Kitab MahalAgencies,

Ashok Rajpath, Patna-80004.

Marketing concepts & strategies William M.Pride and O.C. Ferreell

published by Biztantra New Delhi year2006.

Schiffman, L.G., and Kanuk, L.L., Consumer Behaviour, Prentice

Hall of India, New Delhi, 2000.

WEBSITE:-

86

BIBLIOGRAPHY

CHAPTER NO. 8

WWW.GSRADISINDIA.COM

QUESTIONAIRE

STUDY OF MARKETING STRATEGIES AND RATIO ANALYSIS OF GS RADIATORS

Name :___________________ Designation:___________________

3. General Company Information

Company Name:

Registered Address:

Telephone No. :

General e –mail Address:

Website:

Date of Incorporation (dd/mm/yyyy) :

Date of Commencement (dd/mm/yyyy):

Proprietor:

Brief description of the main product:

2. On what basis have you segmented the markets?

(a) Geographic (Region, City, Rural, Urban or Semi Urban areas)

(b) Demographic (Age, Income, Occupation, Socio – economic classification)

(c) Psychological Segmentation (Psychological/Personality traits, lifestyle or values)

(d) Behavioral Segmentation (Occasions, Benefit, User status, Usage rate,

Loyalty status, Attitude towards products.)

3. What market segments are you targeting?

(a) OEM (b) STU (c) IRL (d) DEF (e) Replacement market (f) Export market

87

4. Rank the following from 1- 6 on the basis of how you have positioned

your brand/products, where 1 is more important.

(a) Price (b) Quality (c) Level of Customer Service (d) Consistency (e) Credibility (f) Novelty

5. Which out of the following products do you deal in?

(a) Connector Pipes (b) Brass tank & headers (c) Brass bushes (d) Plastic tanks (e) Rubber gaskets (f) Heaters (g) Concentric (h) Drain cock & plugs (i) Radiators (j) Radikool coolants (k) Pressure caps (l) Filler Caps

6. How do you determine the price?

(a)Cost plus pricing (b) Value base pricing

(c) Rate of return pricing (d) Psychological pricing

(e) Competitor indexing

7. What is the distribution channel used for distribution of your products?

(a) Dealers/ distributors (b) Retailers

(c) Wholesalers (d) Agents

(e) Own stores

8. Which out of the following is the preferred source for promotion?

(a) Advertising (b) Sales promotion

(c) Events and experiences (d) Public relations and publicity

(e) Personal selling (f) direct marketing

88

(g) Exhibitions and Trade fairs

9. What is the percentage that is spent on advertising per annum?

(a) < 10% (b) 10 – 20%

(c) 20 – 30% (d) 30 – 40%

(e) 40 – 50% (f) > 50%

10. Rank the following from 1- 6 on the basis of how you spend on Research and

Development

(a) New Equipment (b) New Process (c) Value Engineering (d) Training (e) Skill Level (f) Process Integration

11. Rank the following from 1-8 on the basis of how you tap the OEM market (OEM

Strategy)

(a) Product Development (b) R & D (c) Price (d) Lead Time (e) Quality (f) Testing (g) Evaluation (h) Customer feedback

89