The KPES College
Com Sem V
Unit 4 – Circular Letters
Introduction
Business Communication involves various form of communication which can be
used by various groups of people to fulfill various organisational purposes. For
example, to start a business relation the buyer or a supplier letters which can
ultimately become helpful for official relationships.
Circular letter is also one of the types of business letters. As the name suggest,
circular letter possesses a message regarding specific information to number of
people who are associated with any specific institute, business or organisation.
In such letters, the sole purpose will be to update specific groups of people
regarding latest changes made, at the same time to make the specific group of
people aware about introducing new schemes or sale.
Most of the time, it is observed that circular letters are not required any
specific reply from the targeted group of people. Here, the single message
regarding specific group of people will be passed to specific group of people at
the same time. The structure and language will be purely formal. As we have
kept in mind for other types of business letters.
There are some common situations in which circular letters are written:
- Opening of new branch/ business
- Admission of a partner
- Death/Retirement of a partner
- Dismissal of an employee
- Change in address/Shifting of premises
- Stock clearance sale/Festival sale
- Discounts and schemes
What is Circular Letter?
A circular letter is used to share the same information with a large audience. It
differs in purpose from a personal letter which sends particular information to
one of a few receipts. Circular letters are often used to announce new
information or to clarify policies.
B.
According to Prof. W. J. Weston,
“A circular letter is one which is meant to be read by a number of
correspondents. It is of the nature of an advertisement and is usually a business
announcement or an attempt to advance/increase business.”
Generally, the letter that is used to circulate any special message to a large
number of people/audience at the same time is known as circular letter. It is
one of the cost effective /low cost/cheaper means (medium) of circulating
information or introducing new products to the mass.
Characteristics/Features of circular letter
A well-drafted circular letter should possess the following features in it:
1. Wide Publicity
One of the most important features of a circular letter is that it makes
wide publicity of information in the least possible time.
2. Methods of drafting
Circular letter is very simple in nature. It is drafted in a simple language
so that people of various sections can easily understand.
3. Alternativeness
Another dominant/important feature of circular letter is the attractive
and distinctive presentation of message. In this letter, information is so
presented that it can convince the readers.
4. Conciseness
A well drafted circular letter is always concise but complete. It
expresses the message using the least possible words.
5. Courtesy
Since circular letter is written to external parties, it presents
information courteously. Circular letter is drafted by using polite and
cordial language, to win the reader’s heart.
6. Persuasiveness
Circular letter is written in a persuasive and motivational way so as to
influence the reader’s decision in favour of the company.
7. Universality
 The format of the message and the wording of the circular letter
should be easy to understand. So everyone can understand the
information in it.
8. Non-controversial
A business circular letter is free from political, religious, social or any
other controversies
In a brief, Circular is a mass communication tool. The information sent
(disseminated) through circular letters is of interest to all or a section of
employees or groups related to the organisation.
Importance of Circulars as a Medium of Communication in
Corporate World
Circular letter is one of the most important letters which is written most
frequently. Its importance in business requires no explanation. A well furnished
circular letter is quite able to win the hearts of many customers at a time. It
contributes a lot to combat competition. The importance of circular letter in
modern business in discussed below in the light of advantages it provides:
Sending message to mass people: The foremost advantage of circular letter is
that it is able to send message or information to a large number of people at a
time at a cheaper rate. In fact it provides the advantage of mass
communication.
Cost effective: Circular letter is a cost effective method of sending message.
Since it can send message to a large number of readers at a time, the reaching
cost per reader is reduced tremendously. It in fact, saves money of the
organization.
Pervasive medium: Circular letter is one of the pervasive media of
communication. It can reach everyone irrespective have of age and can reach
every corner of any location. Mass people can get information from it very
easily and very rapidly.
Prompt publicity of product or service: Circular letter helps publicize goods
and services to mass people very swiftly by circulating interesting and amazing
news to them. It also produces prompt feedback from the respondents.
Business or market expansion tool: Circular letter is an important tool used for
expanding business and market. News related to product, service and
customer is given to a large number of people that help to expand the business
or market base of a company.
Introducing new product or service: Circular letter is widely used to introduce
a new product or service to the mass people or target market so that they
show their interest towards it. Product or service information, technological
advancement, quality etc are included in the circular to impress the
prospective buyers.
Increasing the goodwill of the company: Through circular letters, the
customers are informed about the social welfare activities, quality of the
products, quality of the products, sponsorship in different areas etc. of the
company. It enhances the goodwill of the company to the mass people.
It is clear from the above discussion that the importance of circular letter in
business is inevitable. We should materialize the advantages provided by it to
get maximum benefit from it.

Saving time: Circular letter not only saves money but also saves time. By it a
message can be sent to a good number of audiences at a time, hence it saves
time of sending message to individual person or customer.

Creating market: Circular letter helps to create new market for existing or new
products and services. The message circulated by this type of letter arouses
interests in the minds of the people and thus it creates new market for
products or services.
Circular Letter - Opening a new business/firm Circular Letter- Announcement of admitting a new partner

DOSHI CLOTHES STORE DOSHI & CO.

288, Om Arcade, Kalbadevi Road, Bombay-2 Lankapur Market, Dariyaganj, Jamnagar.
Contact No.: 086808 68080 Contact No.: 086060 86060
Email: info@doshiclothes.com Email: www.doshi2joshi.com
8th August 2016 16th August 2016

Anilkant B. Samant Anil Kumar Gupta

29, Swastik Apartment, 78, Shiva Blessings-2,
Middle Square, Opp. Business World,
Marine Drive, Bombay. Marine Drive, Mumbai

Sub: Regarding opening of Doshi Clothes Store - our new venture
Dear Sir,
th
You will be pleased to hear that from the 15 of August (Independence Day),
we shall open a retail clothes shop under the style of Doshi & Co. at the place
mentioned above.
As you know, I was the Manager of National Clothes Store, a well-known firm
for its personal service to the customers. I feel that my long experience for the
last ten years in the line and sufficient capital ( ) will enable us to make a
success of our new enterprise.
Sub: Regarding announcement of admitting a new business partner
Dear Sir,
I am glad to inform you that owing to the large increase in my business, I have
taken into partnership Mr. J. N. Joshi today. This business will run under the
style of Doshi & Joshi.
Mr. Joshi has worked as Manager of the Cloth Section of International
Departmental Stores of our city. He is thoroughly conversant with all the
details of this business. Mr. Joshi also has brought into the business a capital of
2.5 crores.

We have got a large variety of clothes so as to satisfy the requirements of all I must thank you for the expansion of our business because it is the result of
types of customers. I request you to be so kind as to pay a visit to my shop at the patronage of customers like you. I am sure you will kindly continue your co-
your convenient date and time. operation.

Thank you. I shall be able to give you better service and better variety of goods with the
help of my partner Mr. Joshi.
Yours faithfully,
Yours faithfully,
Aman Kapadiya
Proprietor Doshi & Co.
Doshi & Co.
Mr. Joshi will sign:

.............................
Circular Letter- Announcing the retirement of a partner Circular Letter – Announcing the death of a partner

DOSHI & JOSHI CO. JOSHI & SMITH CO.

Lankapur Market, Dariyaganj, Jamnagar. Dariyapur Market, Lakhpatnagar, Jamnagar.
Contact No.: 086060 86060 Contact No.: 085544 85544
Email: www.doshi2joshi.com Email: www.joshismith.com
16th August 2016 28th December 2016

Anil Kumar Gupta Vikas Sharma

78, Shiva Blessings-2,
Opp. Business World,
Marine Drive, Mumbai
Sub: Regarding retirement of a partner from Doshi & Joshi Co.
Dear Sir,
We regret to inform that owing to his ill health our partner Mr. Doshi retires
today from our partnership.
You may remember that Mr. Doshi is the founder of this firm. The present
position of our firm is largely due to his personal efforts. We are sorry to lose
his able assistance.
For the last three years Mr. Doshi was suffering from cancer and the work of
the entire firm was carried on by the rest of the partners. We assure you of the
same efficient service and satisfaction.
The resources of the firm are not affected at all by the withdrawal of Mr.
Doshi’s capital as the rest of the partners have made additional contributions
to the capital of the firm. The firm will now be run under the style of ‘Joshi &
Company’.
8, Janki Business World,
Opp. Ram-Lakhan Complex,
Lankapur Cross Road,
Mumbai
Sub: Regarding death of a partner of Joshi & Smith Co.
Dear Sir,
We are sorry to announce the untimely death of our partner Mr. Joshi a
fortnight back. He had taken great pains in bringing the firm to its present
position.
We are, however, happy to inform you that we have taken into partnership Mr.
Satish Joshi. He is the son of our partner Late Mr. Joshi. Mr. Satish has been
working in our firm for the last five years in various capacities. We feel that he
is quite able to occupy his father’s place.
The business will be run under the present name. The capital will remain the
same.
We thank you for your confidence in the past. We hope that you will continue
your co-operation and patronage.

We thank you for your confidence in the past. We hope that you will continue Yours faithfully,
your co-operation. The same personal attention and careful service will
Joshi & Smith Co.
continue to be extended to all customers.
Mr. Satish Joshi will sign:
Yours faithfully,
........................................
J.N.Joshi
Circular Letter – announcing a special/festival sale Circular Letter – Announcing a clearance sale
RELIANCE STORES
1st Floor, King’s Fort Avenue, New M.G. Road, Vadodara.
DOSHI CLOTHES STORE
Contact: 079- 2233 4455 288, Om Arcade, Kalbadevi Road, Bombay-2
email: care.ahm@reliance.com Contact No.: 086808 68080
Email: info@doshiclothes.com
30th November 2015
8th August 2016
Yashvant Sinha
29, Swastik Apartment, Anilkant B. Samant
Middle Square, 29, Swastik Apartment,
Marine Drive, Bombay. Middle Square,
Marine Drive, Bombay.
Dear Sir,
Sub: Clearance sale due to shifting of premises
Shopping for Christmas is indeed a pleasure. You would like to buy excellent
novelties and fine presents for your friends and members of your family. Hence Dear Sir,
the problem is how to select the best of everything. And of course, you would
You may remember that we announced last week the shifting of our business
like to make sure that the prices you pay for whatever you buy are really to the newly constructed vast building named ‘International Estate’ near Metro
competitive. Cinema. We wish to minimise the cost of shifting and to get fresh stock at the
new premises. We have therefore, decided to clear off our present stock at
That is where we can help you. Our firm has started a special Christmas sale bargain prices.
from the 5th December, and the sale will remain open up to 20th December.
Latest designs and choicest varieties have been put in our show-rooms so that We enclosed the price list giving information as to the original prices and the
our customers may select exactly what they want. At the same time we have bargain offers.
kept the prices at a competitive level. The prices quoted by us are much below the cost. Moreover, the stocks to be
disposed of are very limited. We request you to pay an early visit to our store.
We invite you to drop in here at your convenience during the sale days. You We have confidence that you will find many bargains at prices unlikely to be
will find the things available whatever you would like to buy at very repeated for a considerable period.
competitive prices in our show-rooms. Every article bears the guarantee of our
The clearance sale will continue from the 22nd to the 25th January.
firm for its quality and durability.
Thank you.
You will not be pressed to buy anything but if you like to purchase any of the
articles on display, you will find the prices very competitive. Yours faithfully,

We shall appreciate an early visit from you. Aman Kapadiya

Managing Director
Yours faithfully, Doshi & Co.
Manager
Reliance Stores Encl: The Price list of bargain offers
Circular Letter – Announcing a price rise We thank you for your patronage in the past and trust that you will surely
continue.
RAMANLAL SHAH & CO. LTD. Thank you.
15, Gurudev Arcade, Chamanpura market, Lallubhai Marg,
Ahmedabad-2 Yours faithfully,
Contact No.: 086808 68080
Email: info@shahsuppliers.com William Smith
General Manager
11th November 2016
Encl: A Price List
Mr. Jigar Patel
Jay Novelty Stores
29, Swastik Mall,
Pirchhalla Road,
Bhavnagar.

Sub: Regarding announcement of rise in prices

Dear Sir,

We regret to inform you that the Venus Perfumery Ltd. has decided to increase
the prices of ‘Menka’ hair oil by 5% from today.

You will appreciate the circumstances which have forced the company to
increase the prices. You must be aware that prices of oil seeds used in the
manufacture of hair oils have particularly risen too high. Other manufacturers
in the line have already increased their prices. Some producers have tried to
maintain their prices by lowering the quality of their products.

You know that the preparations of the Venus Perfumery, Ltd. are famous all
over India. The quality of their products has been responsible for their frame.
They cannot afford to lower the quality. At the same time no producer can be
expected to sell the product below its cost. The only alternative for the
company was to increase the prices by the lowest possible rate.

We enclose the revised price list.

You will note that even with the increased prices, our ‘Menka’ hair oil prices
compare very favourably with the prices of similar other products.
Circular Letter – Shifting of Premises In the new premises, you will have

The expansion of your business has made necessary for you to move to - Easy access to other shops
larger premises. - Enough parking facilities
- Separate departments like sales, inquiry etc.
Draft a circular letter to announce this fact to your customers. Provide - all business related activities at same place
details of your new premise, explaining how the customers are likely to
Along with these, one additional attraction is a waiting room where you can set
benefit by the change.
and do your own work.

GUPTA TRADERS Please remember that our telephone number will remain the same.
17, Golden Arc Avenue, S.G.Road, Ahmedabad.
Make Gupta Traders a pleasant shopping experience!
Contact No. 079 – 2745 1020/30/40
Email: guptatraders@gmail.com Thank you.
th
6 December, 2016
Regards,
Mr. M.R. Shah
Anup Sharma
19, Gulmohar Avenue,
Main Market, C.G.Road Manager
Ahmedabad. Gupta Traders

Sub: Regarding moving to larger premises

Dear Sir,

You are our valuable/reliable customers and that is the reason we are
informing you that our business has made it necessary to move to a larger
premises. Our new address is mentioned below:

7, Nandan Plaza
Opp. Janta Junction,
S.P. Ring Road, South Bopal,
Ahmedabad.

We have realised that because of our crowded area the customers were not
much interested to visit us frequently. We have also noticed that some of our
customers were disappointed as they did not get enough space to discuss
business related matters at our store. Keeping in mind such issues, we are
happy to let you know that we have shifted to our new premises in South Bopal
area.