1. 2. 3.

INDUSTRY PROFILE COMPANY PROFILE INTRODUCTION TO TOPIC

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1. INDUSTRY PROFILE

Fig no. 1.1: Textile Industry 1.1 Evolution: Indian Textile industry is one of the leading textiles industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. Indian textile industry largely depends upon the textile manufacturing and exports. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates job in its own industry, but also opens up the scopes for the ancillary sectors. India textile industry currently generates employment to more than 35 million people. Indian textile industry can be divided into various segments, some of which can be listed as below:
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Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and coir

1.2 CURRENT SCENERIO: The Indian textile industry contributes about 14% to the industrial production, 4% to the countrys gross domestic product (GDP) and 17% to the countrys export earnings. The industry provides direct employment to over 35 million people and is the second largest provider of employment after agriculture. Fabric production rose to 60,996 million sq meters in FY 2011 from 52,665 million square meters in FY 2007. Production of raw cotton grew to 32.5 million bales in FY 2011 from 28 million bales in FY 2007 while Production of man-made fiber rose to 1,281 million kgs in FY 2011 from 1,139 million kgs in FY 2007. Production of yarn grew to 6,233 million kgs in FY 2011from 5,183 million kgs in FY 2007. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US $ 80billion by 2020.Exports of textile grew to USD 26.8 billion in FY 2010 from USD 17.6 billion in FY 2006. Indias textile trade is dominated by exports with a CAGR of 6.3 per cent during the same period1.

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1.3 MAJOR PLAYERS IN THE TEXTILE INDUSTRY: TABLE: 1.1 MAJOR PLAYERS IN THE TEXTILE INDUSTRY COMPANY Welspun India Ltd Vardhman groups Alok Industries Ltd BUSINESS AREAS Home Textiles, bathrobes, terry towels Yarn, fabric, sewing threads, acrylic fibre Home textiles, Woven and Knitted apparel fabric, garments and polyester yarn Raymond Ltd Worsted suiting, tailored clothing, denim, shirting, woolen outwear Arvind Mills Ltd Spinning, weaving, processing and garment production (denims, shirting, khakis, knitwear) Bombay Dyeing and Manufacturing Company Ltd Bed Linen, towels, furnishings, fabric for suits, shirts, dresses and saris in cotton and polyester blends Garden Silk Mills Ltd Mafatlal Industries LTD Aditya Birla Nuvo, a diversified conglomerate of the Aditya Birla Group, comprising three divisionsMadura Garments, Jayashree Textiles, and Indian Rayon Jayashree Textiles domestic linen and worsted yarn Indian Rayon viscose filament yarn Dyes and printed Fabric Shirting, poplins, bottom wear fabric, voiles Madura Garments Lifestyle market (Louis Philippe, Van Heusen, Allen Solly, The Collective)

ITC Lifestyle Reliance Industries Ltd

Lifestyle market Fabric, Formal Menswear

Source: www.cci.in/survey reports/textile industry

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1.4 OPPORTUNITIES OF TEXTILE INDUSTRY

Indias strong performance and growth in the textiles sector is aided by several key advantages that the country enjoys, in terms of easy availability of labor and material, buoyant and large market demand, presence of supporting industries and supporting policy initiatives from the government. 1. Abundant Availability Of Raw Materials a. Cotton b. c. d. e. Jute Silk Wool Handloom

2. Low raw material costs, wastage costs and labor costs 3. Enhanced Flexibility In Production 4. Lower Lead Times 5. Favorable demand conditions large, growing domestic market 6. Strong Presence of related and supporting industries in terms of design, engineering and machinery 7. Industry competition promotes innovation

1.5 CHALLENGES OF TEXTILE INDUSTRY:

The Indian textile industry faces the following constraints: Fragmented structure with the dominance of the small scale sector High power costs Rising interest rates and transaction costs Unfriendly labor laws Foreign investments are not coming in as the overall factors influencing the industry are not investment friendly. Logistical disadvantages in terms of shipping costs and time pose serious threats to its growth

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2. COMPANY PROFILE INTRODUCTION TO SARWATI OVERSEAS LIMITED:

Sarwati Overseas Ltd. services the worldwide market and owns and operates its manufacturing facilities in India. The design studio is in New York and warehouses in Toronto, Canada and Greenville, South Carolina. The company is completely EDI compatible. Our combination of modern technology and traditional skills create a unique vertical manufacturing facility, with a ISO-9002 systems certification, capable of producing a wide range of home furnishings for any North American company. Companys business partners Sonoma Group, Marmaxx, Cracker Barrel, Welcome Home, Saks Inc, HBC Companies, Sears, Canadian Tire, LNT & JC Penney and many more. We also work closely with Private Brand Departments and OEM Program.

Company design and manufacture two seasonal lines introduced at the March and October New York markets. Company also has holiday textiles which are graphic groups and can be tailored to the needs of any retailer.

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INRODUCTION TO THE COMPANY

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INRODUCTION TO COMPANY 2.1 INTRODUCTION TO SARWATI OVERSEAS (P) LTD, PANIPAT

Fig no. 2.1: Plant of Sarwati Overseas (P) ltd, Panipat 2.1.1 FOUNDER Shri ASHOK JAIN had founded the Sarwati Overseas Ltd in the year 1993. Later on company is converted into private limited in the year 1997. 2.1.2 PRESIDENT Shri RAKESH JAIN & ASHOK JAIN had an experience of manufacturing textile products like cushions, table cloth for more than 20 years. 2.1.3 DIRECTOR 1. Shri Ashok Jain had joined the company in the year 2003 as Assistant Manager (Executive Customer Service) and being promoted as Director (Works and Administration) in the year 2007. He mainly deals in exports of home furnishing.
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2. Shri Anand Jain, Director of Sarwati polymers Deals in Retail outlets. Sarwati polymers were established in the year 2002 to showcase the best in home fashion. Sarwati polymers has exclusive 9 independent retail outlets in Delhi, Noida, Gurgaon, Ludhiana, Mumbai, Pune etc 2.1.4 COMMITMENTS OF ORGANISATION

Competitive market price. Quality products. On time deliveries. They use safe, eco friendly dyes for healthy environment. No Child Labor! Clean and healthy working environment! Progressive company policy for workers!

2.1.5 PRODUCT RANGE OF ORGANISATION

Fig no. 2.2: Products of Sarwati Overseas 1. Cushions and Throw Pillows 2. Kitchen Linens 3. Tabletop Linens 4. Fashion Bedding 5. Windows Fashion 6. Floor coverings

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2.1.6 PEOPLE

Fig no. 2.3: Employees working at Sarwati Overseas Employing over a thousand people, investing in infrastructure, managing people, production and quality, meeting the pressures of on-time deliveries-the whole exercise only goes forward year after year when the return is the satisfaction of a job done well. Total no of employees: 300400 2.1.7 ENVIRONMENT Today, more and more people are looking beyond the boundaries of their own lives and considering the quality of life they create for the future. Company believes every little bit counts. All effluent by-products of manufacturing and dyeing go through a treatment plant to neutralize them before discharge or recycling.

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2.1.8 INFRASTRUCTURE

Fig no. 2.4: Infrastructure of Sarwati Overseas Sarwati Overseas have an extremely efficient production infrastructure equipped with all the facilities under one roof which is capable of performing in the most competitive environments Company manufacturing unit works with the latest technology developments for color, dyeing, and processing. Various processes of printing, weaving, quilting, cording, embroidery etc. are brought under one roof to ensure quality and time efficiencies. Yarn is tested for strength and dyed according to computerised calibration. Company weaving facilities are set up to weave both dobbies and jacquards in fabric and rugs. Company is able to weave standard and wide widths, on traditional handlooms as well as modern shuttle-less looms. Company manufacture and weave cotton chenille yarn. The process unit is able to dye, screen print, and give finishes to both cotton and synthetic yarn.

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2.1.9 QUALITY AT ORGANISATION

Fig no. 2.5: Quality Standards Quality and value are the fundamental concerns at Sarwati, which Company is able to control by completely owning the manufacturing facilities. Company is able to offer product at manufacturers costs allowing larger margins for retailers. Ensuring that this product meets exacting quality standards has earned us an ISO 9002 systems certification. At Sarwati overseas, Quality is corporate mantra at every level of production and administration that ensures maximum customer satisfaction. The in-house quality checks done under professional personnel make sure that the home furnishing meets all international standards. They have a team of highly talented designers who are continuously coming out with exquisite designs, magnificent cuts and fabulous colors to appeal the clients all over the globe. They are engrossed in bringing forth a collection of products which is a fusion of modernity and tradition. The company understands each yarn needs specific attention and it is because of this emphasis on quality that they have successfully achieved customer appreciation resulting in long term relations. Sarwati believes that if something is worth doing, it is worth doing well. Company inculcates a work habit that is called PRIDE: Personal Responsibility in Delivering Excellence.

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INRODUCTION TO THE TOPIC

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3. INTRODUCTION TO THE TOPIC 3.1 PRICING

Setting the right price is an important part of effective marketing. It is the only part of the marketing mix that generates revenue (product, promotion and place are all about marketing costs).Price is also the marketing variable that can be changed most quickly, perhaps in response to a competitor price change. Put simply, price is the amount of money or goods for which a thing is bought or sold. The price of a product may be seen as a financial expression of the value of that product. For a consumer, price is the monetary expression of the value to be enjoyed/benefits of purchasing a product, as compared with other available items. The concept of value can therefore be expressed as: (Perceived) VALUE = (perceived) BENEFITS (perceived) COSTS A customers motivation to purchase a product comes firstly from a need and a want.e.g. Need: "I need to eat Want: I would like to go out for a meal tonight") The second motivation comes from a perception of the value of a product in satisfying that need/want (e.g. "I really fancy a McDonalds"). The perception of the value of a product varies from customer to customer, because perceptions of benefits and costs vary. Perceived benefits are often largely dependent on personal taste (e.g. spicy versus sweet, or green versus blue). In order to obtain the maximum possible value from the available market, businesses try to segment the market that is to divide up the market into groups of consumers whose preferences are broadly similar and to adapt their products to attract these customers.
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In general, a products perceived value may be increased in one of two ways either by: (1) Increasing the benefits that the product will deliver, or, (2) Reducing the cost. For consumers, the PRICE of a product is the most obvious indicator of cost - hence the need to get product pricing right. 3.2 FACTORS AFFECTING DEMAND: Consider the factors affecting the demand for a product that are (1) Within the control of a business and (2) Outside the control of a business: 3.2.1 Factors within a businesses control include: Price (assuming an imperfect market i.e. not perfect competition) Product research and development Advertising & sales promotion Pricing and organization of the sales force Effectiveness of distribution (e.g. access to retail outlets; trained distributor agents) Quality of after-sales service (e.g. which affects demand from repeat-business) 3.2.2 Factors outside the control of business include: The price of substitute goods and services The price of complementary goods and services

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 Consumers disposable income Consumer tastes and fashions Price is, therefore, a critically important element of the choices available to businesses in trying to attract demand for their products.

3.3 DEFINITION
Method adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products. Different pricing methods place varying degree of emphasis on selection, estimation, and evaluation of costs, comparative analysis, and market situation.

3.4 PRICING A PRODUCT

Definition: To establish a selling price for a product No matter what type of product the company sells, the price charged to the customers or clients will have a direct effect on the success of your business. Though pricing strategies can be complex, the basic rules of pricing are straightforward:

All prices must cover costs and profits. The most effective way to lower prices is to lower costs.

Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives.

Prices must be established to assure sales.

Before setting a price for the product, company must know the costs of running its business. If the price for the product or service doesn't cover costs, the cash flow will be cumulatively negative, it will exhaust the company financial resources, and the business will ultimately fail.To determine how much it costs to run the business including property and/or equipment leases, loan repayments, inventory, utilities, financing costs, and salaries/wages/commissions, also add the costs of markdowns, shortages, damaged merchandise, employee discounts, cost of goods
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sold, and desired profits to your list of operating expenses. Most important is to add profit in the calculation of costs. Treat profit as a fixed cost, like a loan payment or payroll, since none of us is in business to break even. Because pricing decisions require time and market research, the strategy of many business owners is to set prices once. However, such a policy risks profits that are elusive or not as high as they could be. 3.5 SITUATIONS TO REVIEW THE PRICE OF THE PRODUCT:

Introducing a new product or product line Cost of products changes Entering into a new market Competitors change their prices; The economy experiences either inflation or recession; Sales strategy changes Customers are making more money because of the product or service.

3.6 BASICS OF PRICING: To price products, company need to get familiar with pricing structures, especially the difference between margin and markup. As mentioned, every product must be priced to cover its production or wholesale cost, freight charges, a proportionate share of overhead (fixed and variable operating expenses), and a reasonable profit. Factors such as high overhead (particularly when renting in prime mall or shopping center locations), unpredictable insurance rates, shrinkage (shoplifting, employee or other theft, shippers' mistakes), seasonality, shifts in wholesale or raw material, increases in product costs and freight expenses, and sales or discounts will all affect the final pricing. 3.6.1 OVERHEAD EXPENSES: Overhead refers to all non labor expenses required to operate your business. These expenses are either FIXED OR VARIABLE.

FIXED EXPENSES:

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Fixed expenses are those expenses which remain fixed throughout the month or year irrespective of change in production. In other words, fixed expenses are those expenses which do not change with the change in production. Fixed expenses include rent or mortgage payments, depreciation on fixed assets (such as cars and office equipment), salaries and associated payroll costs, liability and other insurance, utilities, membership dues and subscriptions (which can sometimes be affected by sales volume), and legal and accounting costs. These expenses do not change, regardless of whether a company's revenue goes up or down.

VARIABLE EXPENSES: Variable expenses are those expenses which change with the change in production. Variable expenses are really semi variable expenses that fluctuate from month to month in relation to sales and other factors, such as promotional efforts, change of season, and variations in the prices of supplies and services. Fitting into this category are expenses for telephone, office supplies (the more business, the greater the use of these items), printing, packaging, mailing, advertising, and promotion. When estimating variable expenses, use an average figure based on an estimate of the yearly total.

3.6.2 COST OF GOODS SOLD: Cost of goods sold, also known as cost of sales, refers to the cost to purchase products for resale or cost to manufacture products. Freight and delivery charges are customarily included in this figure. Accountants segregate cost of goods on an operating statement because it provides a measure of gross-profit margin when compared with sales, an important yardstick for measuring the business' profitability. Expressed as a percentage of total sales, cost of goods varies from one type of business to another. Normally, the cost of goods sold bears a close relationship to sales. It will fluctuate, however, if increases in the prices paid for merchandise cannot be offset by increases in sales prices, or if special bargain purchases increase profit margins. These situations seldom make a large percentage change in the relationship between cost of goods sold and sales, making cost of goods sold a semi variable expense.

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3.6.3 DETERMINING MARGIN: Margin, or gross margin, is the difference between total sales and the cost of those sales. For example: If total sales = Rs 1,000 and cost of sales = Rs 300, then the margin = Rs700. Gross-profit margin can be expressed in rupees or as a percentage. As a percentage, the grossprofit margin is always stated as a percentage of net sales. When all operating expenses (rent, salaries, utilities, insurance, advertising, and so on) and other expenses are deducted from the gross-profit margin, the remainder is net profit before taxes. If the gross-profit margin is not sufficiently large, there will be little or no net profit from sales. Some businesses require a higher gross-profit margin than others to be profitable because the costs of operating different kinds of businesses vary greatly. If operating expenses for one type of business are comparatively low, then a lower gross-profit margin can still yield the owners an acceptable profit.The following comparison illustrates this point. Keep in mind that operating expenses and net profit are shown as the two components of gross-profit margin, that is, their combined percentages (of net sales) equal the gross-profit margin: Business A Net sales Cost of sales Gross-profit margin Operating expenses Net profit 100% 40 60 43 17 Business B 100% 65 35 19 16

Markup and (gross-profit) margin on a single product, or group of products, are often confused. The reason for this is that when expressed as a percentage, margin is always figured as a percentage of the selling price, while markup is traditionally figured as a percentage of the seller's cost.

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3.7 TYPES OF PRICING

3.7.1 COST PLUS PRICING: Many manufacturers use cost-plus pricing. The key to being successful with this method is making sure that the "plus" figure not only covers all overhead but generates the percentage of profit required as well. FOR EXAMPLE: Cost of materials + Cost of labor + Overhead = Total cost + Desired profit (20% on sales) = Required sale price Rs 150.00 Rs 50.00 Rs 30.00 Rs 40.00 Rs 120.00 Rs 30.00

3.7.2 DEMAND PRICING: Demand pricing is determined by the optimum combination of volume and profit. Products usually sold through different sources at different prices--retailers, discount chains, wholesalers, or direct mail marketers--are examples of goods whose price is determined by demand. A wholesaler might buy greater quantities than a retailer, which results in purchasing at a lower unit price. The wholesaler profits from a greater volume of sales of a product priced lower than that of the retailer. The retailer typically pays more per unit because he or she are unable to purchase, stock, and sell as great a quantity of product as a wholesaler does. This is why retailers charge higher prices to customers. Demand pricing is difficult to master because you must correctly calculate beforehand what price will generate the optimum relation of profit to volume.

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3.7.3 COMPETITIVE PRICING: Competitive pricing is generally used when there's an established market price for a particular product or service. If all competitors are charging rs 100 for a replacement windshield, for example, that's what company should charge. Competitive pricing is used most often within markets with commodity products, those that are difficult to differentiate from another. If there's a major market player, commonly referred to as the market leader that company will often set the price that other, smaller companies within that same market will be compelled to follow. To use competitive pricing effectively, know the prices each competitor has established. Then figure out the optimum price and decide, based on direct comparison, whether company prices defend the competitors prices. Should the company wish to charge more than competitors, be able to make a case for a higher price, such as providing a superior customer service or warranty policy. Before making a final commitment to the prices, make sure company know the level of price awareness within the market. If company uses competitive pricing to set the fees for a service business, be aware that unlike a situation in which several companies are selling essentially the same products, services vary widely from one firm to another. As a result, company can charge a higher fee for a superior service and still be considered competitive within your market. 3.7.4 MARK UP PRICING: Used by manufacturers, wholesalers, and retailers, a markup is calculated by adding a set amount to the cost of a product, which results in the price charged to the customer. For example, if the cost of the product is rs 100 and your selling price is rs 140, the markup would be rs 40. To find the percentage of markup on cost, divide the rupees amount of markup by the rupees amount of product cost. Rs 40 / Rs 100 = 40% This pricing method often generates confusion--not to mention lost profits--among many firsttime small-business owners because markup (expressed as a percentage of cost) is often

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confused with gross margin (expressed as a percentage of selling price). The next section discusses the difference in markup and margin in greater depth.

3.8 TOTAL QUALITY MANAGEMENT

Fig no 3.1: Total Quality management TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950s and has become steadily more popular in the West since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the companys operations, with things being done right first time, and defects and waste eradicated from operations. Many companies have difficulties in implementing TQM. Surveys by consulting firms have found that only 20%-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are skeptical about TQM. However, when you look at successful companies you find a much higher percentage of successful TQM implementation.
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3.9 BENEFITS OF TQM IMPLEMENTATION: The most effective way to spend TQM introduction funds is by training top management, people involved in new product development, and people involved with customers its much easier to introduce EDM/PDM in a company with a TQM culture than in one without TQM. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. For example, they are more likely to view EDM/PDM as an information and workflow management system supporting the entire product life cycle then as a departmental solution for the management of CAD data.

3.10 IMPORTANT ASPECTS OF TQM IMPLEMENTATION: A. Customer-driven quality B. Top management leadership and commitment C. Continuous improvement D. Fast response E. Actions based on facts F. Employee participation G. TQM culture.

A. CUSTOMER DRIVEN QUALITY TQM has a customer-first orientation. The customer, not internal activities and constraints, comes first. Customer satisfaction is seen as the companys highest priority. The company believes it will only be successful if customers are satisfied. The TQM Company is sensitive to customer requirements and responds rapidly to them. In the TQM context, `being sensitive to customer requirements goes beyond defect and error reduction, and merel y meeting specifications or reducing customer complaints. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements, but also those that enhance and differentiate them for competitive advantage. Each part of the company is involved in Total Quality, operating as a customer to some functions and as a supplier to others. The
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Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service, and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers. B. TOP MANAGEMENT LEADERSHIP AND COMMITMENT: TQM is a way of life for a company. It has to be introduced and led by top management. This is a key point. Attempts to implement TQM often fail because top management doesnt lead and get committed instead it delegates and pays lip service. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company, and in creating and deploying well defined systems, methods and performance measures for achieving those goals. These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction, and to management and employee remuneration.

C. CONTINOUS IMPROVEMENT: Continuous improvement of all operations and activities is at the heart of TQM. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product, continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. As well as recognizing the link between product quality and customer satisfaction, TQM also recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the companys processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality, and to an increase in customer satisfaction. Improvement cycles are encouraged for all the companys activities such as product development, use of EDM/PDM, and the way customer relationships are managed. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement. Elimination of waste is a major component of the continuous improvement approach. There is also a strong emphasis on prevention rather than detection, and an emphasis on quality at the
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design stage. The customer-driven approach helps to prevent errors and achieve defect-free production. When problems do occur within the product development process, they are generally discovered and resolved before they can get to the next internal customer. D. FAST RESPONSE: To achieve customer satisfaction, the company has to respond rapidly to customer needs. This implies short product and service introduction cycles. These can be achieved with customerdriven and process-oriented product development because the resulting simplicity and efficiency greatly reduce the time involved. Simplicity is gained through concurrent product and process development. Efficiencies are realized from the elimination of non-value-adding effort such as re-design. The result is a dramatic improvement in the elapsed time from product concept to first shipment. E. ACTION BASED ON FACTS: The statistical analysis of engineering and manufacturing facts is an important part of TQM. Facts and analysis provide the basis for planning, review and performance tracking, improvement of operations, and comparison of performance with competitors. The TQM approach is based on the use of objective data, and provides a rational rather than an emotional basis for decision making. The statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related, and are not caused by particular employees. In practice, data is collected and put in the hands of the people who are in the best position to analyze it and then take the appropriate action to reduce costs and prevent non-conformance. Usually these people are not managers but workers in the process. If the right information is not available, then the analysis, whether it be of shop floor data, or engineering test results, cant take place, errors cant be identified, and so errors cant be corrected. F. EMPLOYEE PARTICIPATION: A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities. Such participation is reinforced by reward and recognition systems which emphasize the achievement of quality objectives. On-going
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education and training of all employees supports the drive for quality. Employees are encouraged to take more responsibility, communicate more effectively, act creatively, and innovate. As people behave the way they are measured and remunerated, TQM links remuneration to customer satisfaction metrics. G. TQM CULTURE: Its not easy to introduce TQM. An open, cooperative culture has to be created by management. Employees have to be made to feel that they are responsible for customer satisfaction. They are not going to feel this if they are excluded from the development of visions, strategies, and plans. Its important they participate in these activities. They are unlikely to behave in a responsible way if they see management behaving irresponsibly saying one thing and doing the opposite. 3.11 PRODUCT DEVELOPMENT IN A TQM ENVIRONMENT: Product development in a TQM environment is very different to product development in a nonTQM environment. Without a TQM approach, product development is usually carried on in a conflictual atmosphere where each department acts independently. Short-term results drive behavior so scrap, changes, work-around, waste, and rework are normal practice. Management focuses on supervising individuals, and fire-fighting is necessary and rewarded. Product development in a TQM environment is customer-driven and focused on quality. Teams are process-oriented, and interact with their internal customers to deliver the required results. Managements focus is on controlling the overall process, and rewarding teamwork. 3.12 TQM AS A FOUNDATION: TQM is the foundation for activities which include; 1. Meeting Customer Requirements 2. Reducing Development Cycle Times 3. Just In Time/Demand Flow Manufacturing 4. Improvement Teams 5. Reducing Product and Service Costs 6. Improving Administrative Systems Training
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3.13 STEPS OF TQM: 1. Pursue New Strategic Thinking 2. Know the Customers 3. Set True Customer Requirements 4. Concentrate on Prevention, Not Correction 5. Reduce Chronic Waste 6. Pursue a Continuous Improvement Strategy 7. Use Structured Methodology for Process Improvement 8. Reduce Variation 9. Use a Balanced Approach 10. Apply to All Functions 3.14 PRINCIPLES OF TQM: 1. Quality can and must be managed. 2. Everyone has a customer and is a supplier. 3. Processes, not people are the problem. 4. Every employee is responsible for quality. 5. Problems must be prevented, not just fixed. 6. Quality must be measured. 7. Quality improvements must be continuous. 8. The quality standard is defect free. 9. Goals are based on requirements, not negotiated. 10. Life cycle costs, not front end costs. 11. Management must be involved and lead. 12. Plan and organize for quality improvement.

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3.15 MANAGING AND IMPROVING THE PROCESSES: 1. Defining the process 2. Measuring process performance (metrics) 3. Reviewing process performance 4. Identifying process shortcomings 5. Analyzing process problems 6. Making a process change 7. Measuring the effects of the process change 8. Communicating both ways between supervisor and user

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REVIEW OF LITERATURE

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LITERATURE REVIEW
In order to comprehensively answer the research questions, literature is reviewed on pricing and total quality management. To appreciate the specific nature of pricing and total quality management, it was essential to first explore general pricing and total quality management literature.

TQM gurus have mentioned little about organization structure. Many companies superimpose their TQM committees on their existing structures, overlooking the fact the success of any organization rests heavily on the compatibility between its strategy and its structure. Restructuring is absolutely necessary for a successful TQM implementation Naceur Jabnoun, (2000). It includes senior management commitment, development needs of senior directors, company-wide employee involvement, reward recognition, orientation towards strategic management and core competencies and organizational capability Hides, et al., (2000). The reliability and validity of the instrument were tested and validated. Various methods were employed for this test and validation. The instrument presented was reliable and valid. Industrial practitioners will be able to use this instrument to evaluate their TQM implementation so as to target improvement areas Zhang, et al., (2000). There is a need for a formal empirical study to resolve the existing debate about the standards long-term contribution and true value to ISO 9000-certified companies. For the purposes of this study, a TQM measurement instrument was developed and tested for its reliability and validity to measure TQM performance improvement in certified companies. This performance improvement was then used to test the basic research hypothesis: Can ISO 9000 standards provide a good first step towards TQM? Presentation was done in eight basic TQM categories, showing the certified companies performance improvement in the basic elements of each category, and revealing their strengths and weaknesses on their way to TQM Gotzamani, (2001). TQM is a proven systematic approach to the improvements of the organizations overall business process, including quality of products and services. Organizational lack of information and data on the critical success factors are an obstacle in implementing TQM effectively and successfully. It has developed a TQM soft model which is fit for application. There is a relationship between the soft elements of critical
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success factors on TQM tangible effects, influences by soft elements activities such as culture, trust, teamwork, employment continuity, education and training, top management leadership for quality and continuous improvement, employee involvement and customer satisfaction/ involvement. Three main research methods were adopted in developing the TQM soft model: a postal questionnaire survey, a structured interview and the practical implementation of the model at a manufacturing company. Multiple regression analysis and binomial testing are used to analyze the data Lau & Idris, (2001). There are many success and failure stories of the firms adopting total quality management (TQM). There was a broad review of the current status of TQM and ISO 9000. It considers the extent to which ISO 9000 and TQM are being successfully implemented. It also presents the reasons for obtaining an ISO 9000 certificate, difficulties faced during the registration process, improvements achieved and disappointments experienced after being certified Beskese & Cebeci, (2001). Quality has been widely accepted as essential in todays global competition, limited work has been conducted on the management processes that lead to it. The control processes in quality assurance and total quality management was discussed. The generic management control process is first presented and its deficiencies are highlighted. It proposes control processes for quality assurance and total quality management Jabnoun, (2002). In the manufacturing industry, product quality has become a key factor in determining a firms success or failure in the global marketplace. Advanced, highly reliable manufacturing methods have made it possible to achieve very high standards of product quality. As a result, more and more firms are making product quality a keystone of their competitive strategy. The improvement of production quality is a long-term commitment to continuous improvement in every aspect of the production process. Todays competitive market, in almost every category of products and services, is characterized by accelerating changes, innovation, and massive amounts of new information. Changing customer needs fuels much of the rapid evolution in markets. Most organizations that have been successful with their quality improvement effort have adopted an integrated approach commonly referred to as total quality management (TQM) Mohammad Talha, (2004). Organizations need to keep vigilant in observing the changes occurring in the business environment and adjust their strategy in accordance with these changes. Quality management system needs to be implemented and aligned with the company's business strategy.
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TQM principles that were developed in the manufacturing area can be adapted in the design and development area and provide a greater leverage for the business in the future. Finally, it is highly important for organizations to redefine and broaden the application of the principles of total quality management and to understand the need to tailor these principles Prajogo & Sohal, (2004). In keeping with the socio-economic and cultural transformation that has placed newer demands on the educational system, in terms of greater responsibility and accountability and increased expectations by stakeholders, the system has been pressurized to shift its focus from one in quantitative expansion to one with emphasis on quality. Such shifts and changes are being witnessed not only in the developed countries, but also in the developing countries of the world. The education system, and more so the higher education system in particular, in an attempt to react to the demands and ever increasing pressures from its stakeholders, finds itself in a marketoriented environment, with internal and external customers; wherein, delighting the customer, is the rule for survival in the long run. Delighting the customer, is the core message of total quality management (TQM) and, hence, there is a need to identify and apply the relevant concepts of TQM to each and every aspect of academic life; that is, to the teaching, learning and administrative activities Sahney, et al (2004). While the concepts of performance evaluation and total quality management (TQM) have been explored in the management literature of the last decades, there has been relatively little work on the particular characteristics that an organization with a TQM approach to human resource (HR) performance evaluation should adopt. It gives an overview of the implications of a quality orientation for the evaluation of employee performance. It reveals the main difficulties with the concept of performance evaluation from a quality perspective; and it also examines particular characteristics of performance evaluation that could maximize the effectiveness of HR performance evaluation in organizational environments with a quality orientation. Both the assumptions of TQM and the requirements for HR evaluation are used as a foundation from which to examine the ways in which HR performance evaluation might have changed to integrate TQM requirements. The main criteria of a TQM-based HR performance evaluation system are refined and enhanced, thus moving towards a situation in which TQM can drive HR performance evaluation in practice. It also serves as a guide for the evaluation of the effectiveness of such a system Soltani, et al., (2004). The rapid rate of change in global and niche markets has increased pressure on organizations to become more competitive. TQM is not
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immune from such changes. Rather, TQM theory and practice must continually adapt to be in the vanguard of such change and potential future changes. It determine the influencing/driving factors for the future of TQM involved a panoptic literature review and an inductive grounded theory approach using multiple case studies. It indicates that both the mechanistic and organism aspects of TQM will continue into the future, along with the continual representative development of initiatives to meet current and future organizational change McAdam & Henderson, (2004).

TQM practices are determined by different types of cultures. Interestingly, hierarchical culture was found to have a significant relationship with certain practices of TQM. Additionally, the cultural factors underpinning different elements of TQM are dissimilar, even antagonistic; organizations can implement them in harmony Prajogo & McDermott, (2005). The objectives, which are pursued, are fundamentally qualitative rather than quantitative in their nature with a particular emphasis given on the companies customers. However, the pricing methods, which are adopted by the majority of the companies, refer to the traditional cost-plus method and the pricing according to the market's average prices Avlonitis & Indounas, (2005). An examination of TQM empirical studies resulted in compilation of critical success factors. Implementation difficulties exist to operationalize such a large number of critical success factors in organizations. It analyzed and sorted the critical success factors in descending order according to the frequency of occurrences using Pareto analysis Karuppusami & Gandhinathan, (2006). The model based on TQM with respect to role stressors provides a basis for assessing the level of role conflict and role ambiguity under which the use of different aspects of TQM should be retained or revised. It suggests that TQM is not a panacea that can be unthinkingly applied, but must be practiced with a clear sense of the impact on role stressors Lee Teh, et al., (2008). Customer value-based pricing is increasingly recognized by academics and practitioners as the most effective approach to pricing for companies wishing to achieve increased profitability and sustained success. However, despite this apparent support for the implementation of value-based pricing, the practical reality is that many companies continue to price their products and services primarily on the basis of costs and/or competitive price levels. Five main obstacles to the
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implementation of value-based pricing strategies have been identified: deficits in value assessment; deficits in value communication; lack of effective market segmentation; deficits in sales force management; and lack of support from senior management Andreas Hinterhuber, (2008). The most important TQM barriers in Indian industry are: no benchmarking of ot her company's practices and employees are resistant to change. Factor analysis of the potential barriers to TQM implementation revealed the following five underlying constructs: lack of customer orientation, lack of planning for quality, lack of total involvement, lack of management commitment, and lack of resources Bhat & Rajashekhar, (2009). Customer focus must be the prime objective for various industries to achieve total quality management. All the factors must be used systematically to achieve total quality management (TQM) and it can be done efficiently by using a model having four phases to implement TQM Kumar, et al (2009). Three levels of TQM application starting with quality control, then a broader application of management involvement with quality assurance process and finally a system-wide application of TQM that involves a high degree of strategic integration of TQM principles. The integration between functional areas in the factory, formalization of activities and clear strategy were present at the TQM businesses and resulted in effective and efficient systems of customer service, operational excellence and human resource integration Azizan Abdullah, (2010). Three main stages (commodity, control, and value) corresponding to different levels of maturity of the pricing function. Many managers feel they lack opportunities to push the price button; there was a progressive and systematic deployment of tools and capabilities allows companies to gain more pricing power Carricano, et al., (2010). Total quality management (TQM) has begun to influence national business systems and is widely seen as a revolution in management. TQM initiatives continuously search the needs of the customers and incorporate them in the organization on an ongoing basis. There was a significance and usage of TQM in Indian service industries. The Indian service industries are well aware of the TQM program, though more efforts need to be focused on implementing it properly, use of TQM models and frameworks, and continuously improving the ongoing TQM practices Talib, et al., (2011). Total quality management (TQM) is a modern management
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philosophy and a journey, not a destination. TQM is a systematic management approach to meet the competitive and technological challenges which has been accepted by both service and manufacturing organizations globally. It defines the quality with emphasis on top management commitment and customer satisfaction. It focuses on attaining and maintaining impeccable quality in manufacturing as well as services, by improving the performance of products, processes and services to satisfy customers' expectations. Manufacturing and service industries recognize TQM differently Kumar, et al., (2011). TQM barriers are identified. There are two groups of barriers, one having high driving power and low dependency requiring maximum attention and of strategic importance (such as lack of top-management commitment, lack of coordination between departments) and the other having high dependence and low driving power and are resultant effects (such as high turnover at management level, lack of continuous improvement culture, employees' resistance to change) Talib, et al., (2011).

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RESEARCH METHODOLOGY

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3. RESEARCH METHODOLOGY
Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is very important guideline and lead to completion of any project work through observation, data collection and data analysis. RESEARCH It tends to describe the steps taken by the researcher in studying the research problem along with the logic behind them. . The methodology combines economy with efficiency. The procedure adopted for conducting the research requires a lot of concentration as it has direct bearing on accuracy, reliability and adequacy of results obtained. Research in common language refers to a search for knowledge. Research can also be defined as a scientific and systematic search for pertinent information on a specific topic. Research is an art of specific investigation. Research is an academic and as such the term should be used in a technical sense. It is a voyage of discovery. Research methodology is a way to systematically study and solve the research problems Types of Research Basic research: the basic premise is the need to KNOW and the concern is primarily academic in nature. Applied research: Solution or action oriented research, that is contextual and practical in approach. Exploratory research is loosely structured and the basic premise is to provide direction to subsequent, more structured method of enquiry. Conclusive research is structured and definite in orientation. These studies are usually conducted to validate formulated hypotheses and specified relationships.

3.1. JUSTIFICATION OF THE STUDY The study is significant as it helps to know the pricing and quality management techniques of a manufacturing concern. Marketing management plays a vital role in todays business firms. It is

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a very challenging part of Business Management. Proper pricing and quality management programs are very compulsory for every organization in todays Competitive Business Environment. In modern era, it is very necessary to have multi skilled employees so that productivity can be increased. The study explains the pricing and quality management techniques used by the organization and also helps to know its sources. The study helps to know how the company is using pricing and quality management methods as a tool to get the competitive advantage in the industry and to enhance the efficiency of their organization. So the study becomes relevant to understand the process of pricing and developing potential employees in the manufacturing concern. 3.2 SCOPE This study provides a value insight on the pricing and quality management process being followed by SARWATI OVERSEAS PVT LTD. This study helps to get the practical knowledge in pricing strategy followed by the organization. The study helps me for my future in MARKETING. This study gives some suggestions for making the present pricing and quality management system more effective. The study was conducted during the six weeks pricing in the MARKETING Department on the STUDY OF PRICING AND QUALITY MANAGEMENT PROCESS.

3.3 OBJECTIVE OF THE STUDY Main objective: - The basic objective of the project is to study the pricing and quality management process being followed by SARWATI OVERSEAS PVT. LTD. Sub objectives: 1. To know about the various guidelines involved in deciding the product pricing. 2. To study how the actual process of Marketing carried out in the organization. 3. To know the pricing strategies used by Sarwati Overseas. 4. To know about the implementation of total quality management. 5. To know about the quality management operation.

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6. To know how the distribution method affects the sales percentage. 7. To know about the companys policies to compete with the competitors pricing policies. 8. To know about the benefits and consequences of implementing TQM. 9. To know about the actual performance of the employees.

3.4. RESEARCH DESIGN

The research design used in this project is Descriptive in nature. Descriptive research includes surveys and fact-finding enquiries of different kinds. The main purpose of this descriptive research is description of the state of affairs as it exists at present. As the study was conducted on the pricing and quality management process, so the practices followed by Sarwati OVERSEAS PVT LTD have been studied and its main procedures for T&D are viewed. As the main characteristic of descriptive research is that it has no control over the variables; it can only report what has happened or what is happening so here descriptive research has been used. 3.5. SAMPLE DESIGN The sample design used in this study is RANDOM SAMPLING.

3.5.1. UNIVERSE In statistics, universe or population means an aggregate of items about which we obtain information. A universe or population means the entire field under investigation about which knowledge is sought. A population can be of two kinds (i) Finite and (ii) Infinite. In a finite population, number of items is definite such as, numbers of students or teacher in a college. On the other hand, an infinite population has infinite number of items e.g. no. of stars in a sky, no. of water drops in an ocean, no. of leaves in a tree or no. of hairs on the head. But in this research project, only finite population is used as ALL THE EMPLOYEES OF SARWATI OVERSEAS PVT LTD PANIPAT.
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3.5.2 SAMPLE UNIT All Employee of SARWATI OVERSEAS PVT LTD 3.5.3 SAMPLE SIZE A part of population is called sample. In other words, selected or sorted units from the population are known as sample. In fact, a sample is that part of the population which we select for the purpose of investigation. In this research project, the sample size of this study is 100 employees. 3.6. METHODS OF DATA COLLECTION To determine the appropriate data for research mainly two kinds of data was collected 1) Primary Data 2) Secondary Data Primary data: - Primary data had been collected from the employees of the company directly. Secondary data: - Secondary data are the data collected for some purpose other than the research situation; such data are available from the sources such as books, company reports, journals, rating organization, census department etc . Sources of secondary data are Internet. Book and Journals. Company manual. Research work of others.

DATA USED FOR THE STUDY For the study conducted both kind of data have been used, primary as well as secondary. PRIMARY DATA- With the help of questionnaire and researchers own observation SECONDARY DATA- With the help of internet and company manuals.
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3.7 RESEARCH INSTRUMENT

QUESTIONNAIRE Questionnaire refers to a device for securing answer to a formally arranged list of Questions by using a term, which the respondents fill in by themselves. Questionnaire design Open Ended Questions Close Ended Questions Dichotomous Questions Multiple Questions

A. Open Ended Questions In this question, the respondents answer in his own words. This type of questions is rarely used because it is difficult to weight the result.

B. Close Ended Questions In this question respondent is given a limited number of alternatives from which he selects the one that most closes matches his opinion or attitude.

C. Dichotomous Questions A Dichotomous question refers to one which offers the respondent a choice between only two alternatives and reduces the issues to its simplest form.

D. Multiple Questions A Multiple choice Question refers to one which provides several set of alternatives for its answers. These types of questions are asked on demographic section.

3.8. TOOLS USED FOR ANALYSIS Graphical and Tabular analysis

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The tools used for the analysis are as follows:Tables: Tables are used to represent the response of the respondents in a precise term so that it become easy to evaluate the data collected. Pie-charts: Pies charts have been used to express that how much percentage of the respondents have a particular response towards a particular option. Graphs:-Graphs are nothing more than a graphical representation of the data collected. Chi-square test: - Chi-square test is used when the set of observed frequencies obtained after experimentation have to be supported by hypothesis or theory. The test is known as X2- test of goodness of fit and is used to test if the deviation between observation (experiment) and theory may be attributed to chance (fluctuations of sampling). Ho= There is no significant difference between level of employees and satisfaction of training programmes. H1= There is significant difference between level of employees and satisfaction of training programmes. Here we have the assumption of H0. If, Calculated value < Tabulated value Then, hypothesis is accepted else its rejected. (O-E) 2 = E O E = = Observed frequency Expected frequency where,

PERCENTAGE METHOD Percentage refers to a special kind of ratio. Percentages are used in making comparison between two (or) more series of data. Percentages are used to describe the relationship. Percentage can
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also be used to compare the relative terms, the distribution of two or more series of data. Since the percentage reduce everything to a common base and thereby allow meaning comparisons to be made.

The data collected through questionnaire response was analyzed in the following manner: Raw data was coded and tabulated The tabulated data was converted into percentage, to show the percentage of opinion among respondents.

Percentage analysis thus involves the simple interpretation/ analysis of the various items to be taken up in the questionnaire on a percentage basis from the data collected. Interpretation of the gaps also includes mean scores obtained by the organization on every aspect/ item as calculated.

3.9. LIMITATIONS OF THE STUDY Limitation is regarding the sample selection. Limited time for conducting the study. Lack of interest of respondents. Findings are based on the views expressed by the respondents of different occupation, age and sex so it may suffer from biased prejudices. The study has not been intended on a very large scale, have the possibility of errors, which cant be ruled out. The misunderstanding of the terms used in questionnaire by the respondents. Consciously avoiding a particular response due to the extreme factors. Lack of awareness and knowledge among the selected sample unit. Some of the workers did not respond properly as they thought HR Department was carrying on some performance assessment on the basis of their responses.

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Time limitation was another constraint. Workers were not able to entertain properly due to their busy schedules. It was found that some workers were not really satisfied with their present job in the organization. They were little confused.

DATA ANALYSIS & INTERPRETATION

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ANALYSIS
4.1 What is the price range of your product? TABLE NO 4.1 PRICE RANGE OF THE PRODUCT

PRICE RANGE PERCENTAGE

0-200 200-400 400-600 600-800 50% 30% 15% 5%

PRICE RANGE
5% 15% 50%

0-200 200-400

30%

400-600 600-800

Fig no 4.1: Price range of the product INTERPRETATION: From the above table it can be inferred that, 50% of the product lies between the ranges of Rs 0 to Rs 200 whereas 30% of the product lies in the range of Rs 200 to Rs 400 and 15% of the product lies between the ranges of Rs 400-Rs 600.

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4.2 What is the Pricing policy of the company to sell products as compared to the competitors prices? TABLE NO 4.2: PRICE LEVEL PRICE RANGE Percentage Higher prices Lower prices Same prices 20% 25% 55%

PRICE LEVEL
20%

55% 25%

Higher prices Lower price Same price

Fig no 4.2: Price Level

INTERPRETATION: From the above table it can be inferred that, 55% of the products remains with the same price level as competitors whereas 25% of the product remains with lower price and 20% of the products remain with higher prices.
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4.3 What is the pricing strategy followed by the organization? TABLE NO 4.3 PRICING STRATEGY PRICING STRATEGIES PERCENTAGE Skimming Penetration Go-pricing Marginal pricing Cost plus 4% 14% 60% 10% 12%

PRICING STRATEGY
12% 10% Skimming Penetration Go-pricing Marginal pricing 60% Cost plus 4%

14%

Fig no 4.3 pricing strategy INTERPRETATION: From the above table it can be inferred that, 60% of the respondent is in opinion that company follows go-pricing strategy whereas 14% of the respondent is in the opinion that company follows penetration pricing policy.

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4.4 How does the method of distribution affect the price? TABLE NO 4.4 DISTRIBUTION METHODS DISTRIBUTION METHODS PERCENTAGE Direct sales Brokers/agency Online selling 15% 75% 10%

DISTRIBUTION METHODS
10% 15%

Direct Sales Brokers/agency Online Selling 75%

Fig no 4.4 distribution methods

INTERPRETATION: From the above table it can be inferred that, 75% of the price of the product is affected by the Distribution method of Broker/agency whereas 10% of the price of the product is affected by the distribution method of online selling.
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4.5 How does the promotional policy affect the price of the product? TABLE NO 4.5 PROMOTIONAL POLICY PROMOTION POLICY PERCENTAGE Free sampling Advertisement Introductory price 60% 25% 15%

PROMOTIONAL POLICY
15%

25% 60%

Free sampling Advertisement Introductory price

Fig no 4.5 promotional policy 1INTERPRETATION: From the above table it can be inferred that, 60% of the prices of products are affected by the free sampling whereas 25% of the prices of the product are affected by the advertisement and 15% of the prices of the products are affected by the introductory prices.

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4.6 What are the quality practices organization are applying for? TABLE NO 4.6 QUALITY PRACTISES QUALITY PRACTICES PERCENTAGE Customer satisfaction survey Quality function deployment Benchmarking Data warehouse Balanced scoreboard Flexible manufacturing 5% 0% 15% 15% 0% 65%

QUALITY PRACTICES
0% 5% 15% Customer satisfaction survey Quality function deployment 15% 65% Benchmarking Data warehouse Balanced scoreboard 0% Flexible manufacturing

Fig no 4.6 quality practices INTERPRETATION: From the above table it can be inferred that, 65% of the employees are in the opinion that flexible manufacturing quality practices is applied in the organization whereas 15% of the employees are in the opinion that benchmarking and data warehouse is applied in the organization.
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4.7 Is there any difference in sales turnover in percentage after implementing TQM? TABLE NO 4.7 DIFFERENCE IN SALES TURNOVER DIFFERENCE IN SALES TURNOVER PERCENTAGE No difference 0-5% 5-10% 10-15% 15-20% 20-25% More than 25 % 0% 0% 5% 20% 65% 10% 0%

DIFFERENCE IN SALES TURNOVER

0% 0% 10% 0% 5% 20% No difference 0-5% 5-10% 10-15% 15-20% 65% 20-25% More than 25 %

Fig no 4.7 difference in sales turnover INTERPRETATION: From the above table it can be inferred that with the implementation of TQM 65% of the sales turnover result in difference of 15% to 20% whereas 20% of the sales turnover result in difference of 10% to 15%.
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4.8 What is the estimated profit margin difference after applying TQM? TABLE NO 4.8 DIFFERENCE IN PROFIT MARGINS DIFFERENCE IN PROFIT MARGINS PERCENTAGE No difference 0-5% 5-10% 10-15% 15-20% More than 20% 0% 0% 15% 70% 15% 0%

DIFFERENCE IN PROFIT MARGINS

0% 15% 0% 0% 15% No difference 0-5% 5-10% 10-15% 15-20% 70% More than 20%

Fig no 4.8 difference in profit margins INTERPRETATION: From the above table it can be inferred that, 70% of the respondent are agreed that there is a difference of 10-15% in the profit margins after the implementation of TQM whereas 15% of the respondent are agreed that there is a difference of 5-10% and 15-20%.

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4.9 What is the estimated customer satisfaction difference after applying TQM? TABLE NO 4.9 DIFFERENCE IN CUSTOMER SATISFACTION DIFFERENCE IN PERCENTAGE CUSTOMER SATISFACTION No difference 0-5% 5-10% 10-15% 15-20% More than 20 % 0% 5% 10% 65% 20% 0%

DIFFERENCE IN CUSTOMER SATISFACTION

0% 0% 20% 5% 10% No difference 0-5% 5-10% 10-15% 65% 15-20% More than 20%

Fig no 4.9 difference in customer satisfaction INTERPRETATION: From the above table it can be inferred that, 65% of the respondent are agreed that there is a difference of 10-15% in the customer satisfaction after the implementation of TQM whereas 20% of the respondent are agreed that there is a difference of 15-20%.
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4.10 What other benefits does the organization gain with TQM? TABLE NO 4.10 OTHER BENEFITS OTHER BENEFITS PERCENTAGE Improve productivity Improve morale Less paper Less waste Less rework 65% 5% 5% 10% 10%

Increase market share 5%

OTHER BENEFITS
5% Improve productivity Improve morale Less paper work 65% 5% Less waste Less rework Increase market share

10% 10% 5%

Fig no 4.10 other benefits INTERPRETATION: From the above table it can be inferred that, 65% of the respondent agreed that with the introduction of TQM productivity has been approved whereas 10% of the employees is in the opinion of wastage and rework process is cut down.

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4.11 What side effects does your organization suffer with TQM? TABLE NO 4.11 SIDE EFFECTS SIDE EFFECTS PERCENTAGE Decrease productivity Weaken morale More paper Higher cost Higher staff turnover Others 5% 5% 35% 35% 10% 10%

SIDE EFFECTS
5% 10% 10% 5% Decrease productivity Weaken morale 35% 35% More paper Higher cost Higher staff turnover Others

Fig no 4.11 side effects INTERPRETATION: From the above table it can be inferred that, 35% of the respondent is in opinion that organization is suffering side effect of higher cost and more paper work whereas 10% of the respondent is in the opinion that organization is suffering side effect of staff turnover and others effects also.
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STATISTICAL TOOL
CHI-SQUARE ANALYSIS ON THE RELATIONSHIP BETWEEN PRICING

STRATEGIES AND QUALITY OF THE PRODUCTS H0: Pricing strategies doesnt affect the quality of the products. H1: Pricing strategies affect the quality of the products. Observed Frequency Responses Yes No Sub-total Skimming 20 20 40 Go-pricing 50 10 60 Sub-total 70 30 100

Expected Frequency Responses Yes No Sub-total Skimming 28 12 40 Go-pricing 42 18 60 Sub-total 70 30 100

O 20 50 20 10 Total

E 28 42 12 18

O-E -8 -8 8 -8

(O-E)2 64 64 64 64

(O-E)2/E 2.285 1.523 5.333 3.555 12.696

Degree of freedom = (r-1)*(c-1) = (2-1)*(2-1) =1

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Tabulated value = 3.841 Calculated Value = 12.696 Hence Tabulated Value is less than calculated value than null hypothesis is rejected. INTERPRETATION: - This shows that pricing strategies affect the quality of the product.

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FINDINGS, SUGGESTIONS & CONCLUSION

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5.1 FINDINGS OF THE STUDY

1) It has been stated that 50% of the product lies between the price range of Rs 0-200, whereas 30% of the products lies between the price range of Rs 200-400, and 15% of the product lies between the price range of Rs 400-600, and 5% of the products lies between Rs 600-800. 2) It has been analyzed that 55% of the products remains with the same price level as competitors, whereas 25% of the products are highly charged 3) Major percentage of the price is being affected by the broker/agency distribution method. As 15% of the products are distributed by direct sales hence it affects more over prices, and 10% of the product are distributed under online selling having a low factor in the change of price, and 75% of the products are distributed by the brokers/agency having a dramatic change of price. 4) Free sampling is analyzed as the major used promotion policy which affects the price of the product. Promotional policy of free sampling affects 60% change in the price whereas advertisement affects only 25% and the policy of introductory price affects only 15%. 5) It is found that Quality Practices of the organization that is applied does have the positive change such as Flexible Manufacturing is applicable 65% in TQM whereas Benchmarking and Data warehouse has 15% share in Quality practice of TQM and Customer satisfaction survey has only 5% in Quality Practice. 6) It is found that after implementing TQM there is a dramatic change in the Sales Turnover where the difference in sales turnover is 15-20% which gives a very positive representation of the productivity. 7) Similarly, after the implementation of TQM it can be seen that there is a positive difference in the profit margin of the organization where it is found that there is change of 10-15% in the profit margin and this shows a positive growth of the organization and this gives an opportunity of a new business with the greater profit margins.

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8) It has been stated that the rise in customer satisfaction has a positive influence over the sales of the organization, where 65% of the respondent stated that there is a change of 10-15% in the satisfaction level of the customer, 20% of the respondent are satisfied with the change of 15-20% in the satisfaction level of the customer. It is also found that this kind of change can be obtained only by applying TQM. 9) It is found that application of TQM has a greater impact on the other benefits also such as 65% of the respondent are influenced with the improvement in the productivity, 10% with the less wastage, 10% with the less rework, 5% having the improvement in morale, 5% of the respondent are influenced by the increase in market share of the organization. 10) On the other hand it is also stated that application of TQM is causing side effects to the organization where in the organization paper work has increased by 35%, higher cost of 35%, higher staff turnover with 10%. 11) It is also found that the organization are using various price strategy as compared to the competitor prices with the major share of 55% the organization is keeping same prices as the competitor have and the organization is charging higher prices for 20% of the products as compared.

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5.2 SUGGESTIONS
There should be a proper department with all the necessary equipments and infrastructure in TQM department Training should be conducted according to the various policies, strategies and the methods to be followed. There should be more improvement in the latest technological factors regarding TQM The organization should get the proper feedback of every employee at a particular period of time. Employees should be provided training for the implementation of the various strategies at every level of organization. The company should remain updated with the recent changes in the price of raw material as well as for the finished goods. The organization should innovate and develop the new products on the regular basis. The quality of the product should be standardized so that low quality products can be reduced. Company is able to introduce new quality models to increase the efficiency and productivity. The company should follow a policy where Quality of products can be exported in spite of domestic trade where they can charge higher prices with higher profits. The organization should reduce the manpower required with the help of latest technology of new machineries. An open co-operative culture has to be created by the management for the successful implementation of TQM. Pricing decisions should be taken with the expertise advice with the help of market research. The company must from time to time take the help of quality experts. The company must follow the guidelines issued by the government relating to pricing and total quality management.

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5.3 CONCLUSION
The study conducted at SARWATI OVERSEAS PRIVATE LIMITED, Panipat deals with analyzing the pricing strategy and total quality management of the organization. The present study concludes that with the implementation of TQM an organization is able to increase its productivity, quality of the products. Company is able to sell its product almost with the same prices of the competitors but with a greater quality, with the implementation of the TQM company is able to increase its sales turnover as well as the profit margins. Companys flexible manufacturing quality practice proves an edge towards the organizational progress. With the free sampling promotional policy organization is able to affect the majority percentage of the price of the product. The study concluded that the distribution method of brokers/agency is the best suitable method to promote the product of the organization which also affects the price of the product after the implementation of the TQM the customer satisfaction level has undergone a significant change. Even the TQM implementation results in improvement in productivity as well as less wastage and less rework required. The price of the product mainly remains in between the range of Rs 0-200. The companys main pricing strategy is go-pricing that is the price prevalent in the industry. Besides the successful implementation of the TQM in the organization the company suffers from paper wastage, high expert cost, and even the high cost for staff turnover. The study also concludes the major benefits and drawbacks of implementing TQM.

The company follows go-pricing strategy and penetration pricing policy. The company follows flexible manufacturing; benchmarking and data warehouse quality practices.

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5.4 FUTURE DIRECTIONS. This study has covered different aspects of Pricing Strategy and Total Quality Management of the organization.

It has been studied from both prospective pricing strategies and total quality management techniques. The study has been done on employee responses in aspects of feedback given at the end of training session but still there are many related areas which could be taken as future direction of the study & that would be follow up. This study is based out on coverage of basic idea about all the marketing issues related to pricing strategies and total quality management but further more studies can be done in context with focusing on any one particular area like best pricing policies followed by the organization or impact of total quality management in the context of Indian industries. More studies can be done in the context of quality standards issued by the legal regulatory from time to time.

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1) Ahmet Beskese, Ufuk Cebeci, (2001) "Total quality management and ISO 9000 applications in Turkey", The TQM Magazine, Vol. 13 Iss: 1, pp.69 74 2) Andreas Hinterhuber, (2008) "Customer value-based pricing strategies: why companies resist", Journal of Business Strategy, Vol. 29 Iss: 4, pp.41 50 3) Azizan Abdullah, (2010) "Measuring TQM implementation: a case study of Malaysian SMEs", Measuring Business Excellence, Vol. 14 Iss: 3, pp.3 - 15 4) Daniel I. Prajogo, Amrik S. Sohal, (2004) "Transitioning from total quality management to total innovation management: An Australian case", International Journal of Quality & Reliability Management, Vol. 21 Iss: 8, pp.861 875 5) Daniel I. Prajogo, Christopher M. McDermott, (2005) "The relationship between total quality management practices and organizational culture", International Journal of Operations & Production Management, Vol. 25 Iss: 11, pp.1101 1122 6) E. Soltani, J. Gennard, R.B. van der Meer, T. Williams, (2004) "HR performance evaluation in the context of TQM: A review of the literature", International Journal of Quality & Reliability Management, Vol. 21 Iss: 4, pp.377 396 7) Faisal Talib, Zillur Rahman, M.N. Qureshi, (2011) "Analysis of interaction among the barriers to total quality management implementation using interpretive structural modeling approach", Benchmarking: An International Journal, Vol. 18 Iss: 4, pp.563 587 8) Faisal Talib, Zillur Rahman, M.N. Qureshi, (2011) "Assessing the awareness of total quality management in Indian service industries: An empirical investigation", Asian Journal on Quality, Vol. 12 Iss: 3, pp.228 243 9) G. Karuppusami, R. Gandhinathan, (2006) "Pareto analysis of critical success factors of total quality management: A literature review and analysis", The TQM Magazine, Vol. 18 Iss: 4, pp.372 385 10) George J. Avlonitis, Kostis A. Indounas, (2005) "Pricing objectives and pricing methods in the services sector", Journal of Services Marketing, Vol. 19 Iss: 1, pp.47 57 11) H.C. Lau, M.A. Idris, (2001) "The soft foundation of the critical success factors on TQM implementation in Malaysia", The TQM Magazine, Vol. 13 Iss: 1, pp.51 62 12) Jaideep Motwani, (2001) "Critical factors and performance measures of TQM", The TQM Magazine, Vol. 13 Iss: 4, pp.292 300

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13) K. Subrahmanya Bhat, Jagadeesh Rajashekhar, (2009) "An empirical study of barriers to TQM implementation in Indian industries", The TQM Journal, Vol. 21 Iss: 3, pp.261 272 14) Katerina D. Gotzamani, George D. Tsiotras, (2001) "An empirical study of the ISO 9000 standards contribution towards total quality management", International Journal of Operations & Production Management, Vol. 21 Iss: 10, pp.1326 1342 15) M.T. Hides, Z. Irani, I. Polychronakis, J.M. Sharp, (2000) "Facilitating total quality through effective project management", International Journal of Quality & Reliability Management, Vol. 17 Iss: 4/5, pp.407 422 16) Manu Carricano, Jean-Francois Trinquecoste, Juan-Antonio Mondejar, (2010) "The rise of the pricing function: origins and perspectives", Journal of Product & Brand Management, Vol. 19 Iss: 7, pp.468 476 17) Mohammad Talha, (2004) "Total quality management (TQM): an overview", Bottom Line: Managing Library Finances, Vol. 17 Iss: 1, pp.15 19 18) Naceur Jabnoun, (2000) "Restructuring for TQM: a review", The TQM Magazine, Vol. 12 Iss: 6, pp.395 399 19) Pei-Lee Teh, Keng-Boon Ooi, Chen-Chen Yong, (2008) "Does TQM impact on role stressors? A conceptual model", Industrial Management & Data Systems, Vol. 108 Iss: 8, pp.1029 1044 20) Raj Kumar, Dixit Garg, T.K. Garg, (2009) "Total quality management in Indian industries: relevance, analysis and directions", The TQM Journal, Vol. 21 Iss: 6, pp.607 622 21) Raj Kumar, Dixit Garg, T.K. Garg, (2011) "TQM success factors in North Indian manufacturing and service industries", The TQM Journal, Vol. 23 Iss: 1, pp.36 46 22) Rodney McAdam, Joan Henderson, (2004) "Influencing the future of TQM: internal and external driving factors", International Journal of Quality & Reliability Management, Vol. 21 Iss: 1, pp.51 71 23) Sangeeta Sahney, D.K. Banwet, S. Karunes, (2004) "Conceptualizing total quality management in higher education", The TQM Magazine, Vol. 16 Iss: 2, pp.145 159
24) Zhihai Zhang, Ab Waszink, Jacob Wijngaard, (2000) "An instrument for measuring TQM

implementation for Chinese manufacturing companies", International Journal of Quality & Reliability Management, Vol. 17 Iss: 7, pp.730 755
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BOOKS:

Philips Kotler, Marketing Management Kothari .C.R Business research methodology , New Age International publisher Stephan R. Covey ,Seven Habits of Highly Effective People Stephan Robbins, Organizational Behavior Weihrich & Koontz, (2000) Essentials of management, Tata Mcgraw Hill Chawla Deepak, Business Research methodology ,Vikas Publishing House

WEBSITES:
www. sarwati overseas.com, viewed on 6 aug 2012 www.cci.in/survey reports, viewed on 25 aug 2012

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PRICING AND TOTAL QUALITY MANAGEMENT QUESTIONAIRE

Q1 What is the price range of the product? 0-200 200-400 400-600 600-800

Q2 What is the strategy of the company to sell product as compared to the competitor prices? Higher prices lower prices same prices

Q3 What is the pricing strategy followed by the organization? Skimming penetration go-pricing marginal pricing cost plus

Q4 How does the method of distribution affect the price? Direct sales brokers/agency online sales

Q5 How does the promotion policy affect the price of the product? Free sampling advertisement introductory price

Q6 Does the organization apply TQM? Yes No

Q7 Does the nature of the product affect the price? Yes No

Q8 Does the customer expect a certain price range? Yes No

Q9 what are the quality practices organization are applying for? Customer satisfaction survey Data warehouse
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quality function deployment balanced scoreboard

benchmarking flexible manufacturing

Q10 Is there any difference in sales turnover in percentage after implementing TQM? No difference >25% Q11 What is the estimated profit margin difference after applying TQM? No difference 0-5% 5-10% 10-15% 15-20% >20% 0-5% 5-10% 10-15% 15-20% 20-25%

Q12 What is the estimated customer satisfaction difference after applying TQM? No difference 0-5% 5-10% 10-15% 15-20% >20%

Q12 What other benefits does the organization gain with TQM? Improve Productivity Improve morale Less paper Less waste Less rework Increase market share Q13 What side effects does the organization suffer with TQM? Decrease Productivity Weaken morale More paper Higher Cost Higher staff turnover Others

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Details of person completing this Questionnaire: NAME ORGANISATION POSITION AGE INCOME GROUPS COUNTRY PHONE FAX EMAIL ADDRESS COMMENTS

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