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A STUDY ON
SALES PROMOTION ACTIVITIES OF
RAVITEJA PLASTICS AND LUGGAGE NEEDS, KURNOOL
A Project Report to
RAYALASEEMA UNIVERSITY, KURNOOL
Submitted in partial fulfillment for the award of the degree of
Email : psnbabu@rediffmail.com
Sri VijayaDurgaDegreeCollege
(Affiliated to Rayalaseema University)
(CO-EDUCATION)
Certificate
This is to certify that the bonafied project work entitled “SALES PROMOTION
ACTIVITIES OF RAVITEJA PLASTICS AND LUGGAGE NEEDS” carried out by
Mr. N .Madhu Sudhan Reddy Register number: 115007017 year 2013-2014 in partial
fulfillment for the award of Bachelor of Business Management of Rayalaseema
University, Kurnool.
Examiner
1.
2.
3
All details collected and furnished by him are true and original to
my knowledge.
PLACE :
DATE :
A.GAYATRI SOUMYAM.B.A
4
DECLARATION
AND LUGGAGE NEEDS.”Is original and bonafied work of my own in partial fulfillment
not been copied from any earlier reports. The empirical conclusions and findings in this
Date :
Place : Kurnool
N.MADHUSUDHAN REDDY
B.B.M
5
ACKNOWLEDGEMENT
I take this opportunity to extend my profound thanks and deep sense of gratitude to the
authorities of Raviteja plastics and luggage needs. For giving me the opportunity to
undertake this project work in their esteemed organization. I profusely thank Mr. Suresh
kumar (Manager)
I would like express my sincere gratitude to the following people without whose
support, help and encouragement, this project would not have reached its successful
completion.
N.MADHUSUDHAN REDDY
B.B.M
6
PREFACE
Studying the various elements of sales promotion covers the entire scope of promotion
of a business. This project work explains sales promotion towards RPG, variables such as
product, price, place and promotion variables of RPG.
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures has to take
effective steps in meeting the consumers in the markets. In the present consumer oriented
markets it is the duty of manufacturers to know what is required by the consumer.
CONTENTS
Chapter-8 Conclusion
Chapter-9 Bibliography
Chapter-10 Questionnaire
8
COMPANY
PROFILE
9
INTRODUCTION:
Welcome to theworld ofexquisite Handbags, Luggage Bags and various types of
Designer Bags. Since 1991, RPG Enterprises has been working towards bringing to its
clients the finest quality in luxury Handbags and Luggage at competitive prices. Our goal is
to cater to the client's exact requirements and achieve total customer satisfaction. We are a
manufacturer, supplier, distributor, trader & importer of exclusive designer handbags and
luggage bags for all ages and for all occasions. Our products are a symbol of class and
elegance, adding sophistication to one's personality.
Our ecstatic collection of attractive bags is sure to leave you enthralled. A grandeur of
experience in style and magnificence is offered for you to make you feel special. Our
unearthly line of attractive Hand Bags, School Bags and Luggage Bags are hugely acclaimed
for their unmatched comfort and exquisite colors, designs and style to suit every mood and
occasion. We present a collection of bags of different materials, designs and styles.
Today, marketing must be understood not in the old sense of making a sale- “telling
and selling”- but in the sense of satisfying customer need. If the marketer does a good job of
understanding consumer needs, develops products that provide superior value and prices,
distributes and promotes them effectively, these products will sell very easily. Thus, selling
and advertising are only a part of larger, “marketing mix” – a set of marketing tools that
work together to affect the market place.
The marketing concept holds that achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfaction better than
competitors do. Under the marketing concept, customer focus and value are the paths to sales
and profits.A lack of consumer awareness in any industry can harm sales. If specific products
and services are better known those products and services will remain on the frontline in
sales. Therefore, it is important to implement sales promotion.
10
COMPANY PROFILE:
In 1991,The RPG manufacturing company has been started in Kurnool.
First we supposed to manufacture only plastic items. After the completion of a successful
year there is an amazing support from the customers and simultaneously demand also
increased. So the company decided to manufacture the plastic bags such as college bags,
handbags, purses, wallets, trolley bags, luggage bags and suitcases etc..,. It gained a good
response from the customers.This taken an advantage in market and grasped the first
position in the market.
After gaining such a response from the customers we decided to spread up the
business in local markets by establishing its first subsidiary in local areas andsubsequently
went on to strengthen its position by establishing two more subsidiaries.
No of Staff 40
:
No of Production Lines 5
:
No of Designers 2
:
Hand Bags
Luggage Bags
Shopper Bags
Beaded Bags
Toilet Bags
Industrial Bags
Promotional Bags
School Bags
College Bags
Fancy Bags.
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With elegance and style as our objectives, we produce and export a wide
variety of Bags, i.e."Complete Bag Solutions" under one roof. We have achieved an
enviable International reputation becauseof our consistent endeavors towards customer
satisfaction, total quality control and strict adherence to delivery schedules. We have a team
of skilled craftsmen, who are considered masters in their respective fields.
We have in-house production facilities and check quality at each stage of production.
Well-planned procedures ensure that production and delivery takes place as on schedule. Our
dedication and professional attitude helped us in earning the unending trust of our national
and international clients.
Basic information:-
Company Information:-
Establishment year:1993
Contact no:9951016594
Business information:-
Type of company: Manufacturing and selling company
Raw material:-
Requirement of rawmaterials:-
Requirement of rawmaterials depend upon the business,demand for this products in market.
We import the raw materials approximately 4-5 times in a month in bulk quantities. This
shows the demand of our products in market.
Product profile
It deals with many types of plastic products and bags which are useful to everyone in
our daily life. Our company is mainly a manufacturing company but it does both
manufacturing and selling. There is a specialty in preparing different types of products
according to the wants and needs of customer. It prepares the products according to the
customer preferences and requirements. There are so many types of bags which we
manufacture are discussed in detail below.
Travel bags
Luggage bags
College bags
Suitcases
Purses
Wallets
Handbags Complimentary bags
Trolley bags
Shopper bags
Beaded bags
Promotional bags
Industrial bags
Toilet bags
Fancy bags
14
Designer Bags:
We offer designer Bags, which have good quality zip sliders and other metal fittings.
These bags are available in excellent finishes and also feature wheels for additional handling
ease.
School Bags:
We specialize in the production of a wide variety of school bags suitable for children.
Superior material is used to manufacture high quality school bags. Stylish shoulder straps are
attached that can be adjusted as per requirements by children themselves.
College Bags:
We are presenting unique collection of Ladies Beaded Bag. Our range of ladies
beaded bag are available in a variety of attractive designs and colors& are sure to fascinate.
We are presenting unique collection of Ladies Beaded Bag. Our range of ladies
beaded bag are available in a variety of attractive designs and colors& are sure to fascinate.
Laptop Bags:
We offer Laptop Bags which are available with many pouches and pockets to store
laptop accessories like battery, Cd's, charger etc. Our laptop bags protect the laptops from
dust, moisture, heat etc. and are widely demanded in the market.
We offer a range of Leather Luggage Bags, which are perfectly designed to keep the
sophisticated laptop in safe bags. These are manufactured from quality raw materials, thus
giving laptops best protective carriers for safe mobility. Made from pure leather with a blend
of perfect class and style, these bags are good in resistant to wear and tear and can carry
heavier laptops even.
We have a wide range of collections for Fancy Bagpacks in different color,designs and
sizes. We manufacture these bags as per the client’s requirement.
Backpacks:
This new backpack is made from the finest cowhide leather.The bag also has spacious
compartments and with an extra compartment on the front.
17
18
THEORETICAL
BACKGROUND
Sales Promotion:
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures has to take
effective steps in meeting the consumers in the markets. In the present consumer oriented
markets it is the duty of manufacturers to know what is required by the consumer. It is also
their duty to make the customers know where, when how and at what prices.
Meaning of Promotion:
The term promotion is the term and includes mainly three type of sales activity
The term promotion is very often used as a synonym for selling. But selling is a
narrow term which includes only transfer of title or personal selling. Promotion on the other
hand is broader in its outlook and includes a variety of activities used ultimately for
increasing sales volume.
Similarly the terms sales promotion cannot be taken to mean what is commonly does.
Sales promotion is only a part of the promotion. Basically promotion is an "exercise" in
information persecution and influence. Promotion has come to mean the overall co-
ordination of advertising selling, publicity and public relations. Promotion is a helping
function designed to make all other marketing activities more effective and efficient. But
sales promotion as such helps only the selling activity still, there exit same difference of
opinion on the real connection of the term sales promotion.
DEFINITION:
"Sales promotion means any step that are taken for the purpose of obtaining or
increasing sales". - A.H.R
DELONS
1. Sales promotion at Dealers Level: - It may include various schemes some of which are
discussed here.
(I) Advertising Materials: -The advertising material prepared by the company such as store
signs, banners, shelf signs, board etc. are distributed to sub dealer for display purposes this is
in fact a method of advertising.
(ii) Store Demonstration: - In the promises of the whole seller or the retailer the products
sales personnel will conduct special demonstration for the company’s product. A personal
demonstration is good to introduce a new product at its peculiar advantage can be high
lightened and the consumer’s doubt clear. It can be used to reticulate an old product. A good
demonstration with a great dealer of action will draw heavy crowds in to the store and will
attract attention to the product.
(iii) Special Display and Shows: -These are in seasonal in character but could be arranged
in an elaborate manner and for all the products of a company. Usually these are arranged
along with trade fair and exhibition. Besides effecting sales these shows impress the
company’s name generally on the public.
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1. Coupons (A Chit of Stated Value):-These are given directly to the consumer these
coupons are in most cases kept inside the package. The consumers many receive a price
reduction of the stated values of the coupon at the time of purchase. The retailer receives
reimbursement for the value of the coupon form the manufacturer. Coupons act as a short run
stimulus to the sale of the product, since they are directly tied with the purchase of the item.
They encourage the retailer to stock the product.
2. Price-off-offer (Also known as bargain offer price packs) :-This offer is intended to
stimulate the sales during a slump season. In this method the customer is offered a reduction
from the printed price list. It is also used when a substitute for competing product enters the
market.
Many experts on sales promotion fed that ‘Off Schemes’ are among the weaker and less
desirable methods of promotion. These can be trade resentment particularly when the retailer
raises the price to retain his margin. Secondly that is not conductive to building up brand
loyalty. Consumers may simply shift to the products that offer this scheme.
3. Samples: - In the hope of converting a prospect into a customer a sample (Some quantity
of the product) may be given. This helps the consumer to verify the real quality of the
product. Various pair manufacturing companies offer this method. For developing brand
loyalty this method is quite useful. Sampling is a fast method of demand creation because
one knows the result as soon as the consumer has had time to use the sample and buy the
brand.
4. Money Refund Offer: - An offer usually stated on the package is that manufacturers will
return within a stated period part or all of the purchaser’s money if he is not completely
satisfied with the product.
5. Trading Stamps: - A premium in the form of stamps is given by the sellers to consumers
while selling goods. The number and value of stamp that the buyer receives depends on the
22
values of the purchase. These stamps are redeemable through premium catalogues at the
stamp redemption centers.
6. Buy-Back Allowance: This an allowance following a previous trade deal not offer a
certain amount of money for new purchases based on the quantity of purchases on the first
trade deal. It extends the life of a trade deal and helps to prevent part deal sales decline. It
greatly strengthens the buyer’s motivation to co-operate on the first deal.
7. Premium: -There are various forms of premiums provided by the manufacturer as sales
promotional devices:-
(b) Factory in pack premium these are popular in the case of Body food and Tin food items,
Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in the
box itself. Factory in pack premium are particularly goods for product meant for children.
(c) Self Liquidating Premiums: - The cost of the premium is collected from the buyer
himself. But when the buyers pay for it he has to pay only a considerably low price for the
premium. This is possible for the manufacturer purchases the items in bulk at a premium and
his cost per unit as is substantially low.
1. Communicating Market News :-Often this service is reciprocal the manufacturer may
acquaint his dealer with the fact relating to his production and prices while the dealer may
familiarize him in return with the information bearing on charges in the consumer's demand,
their like and dislike complaints and criticism, substitutes etc.
2. Inviting to Sales Conference and Convention: - The gestures of regard and respect pave
the way for better relation and co-operation.
23
3. Offering Reasonable Terms of Sale: - Of all the forms of encouragement, the monetary
incentive evokes immediate response. Hence every producer must offer the most responsible
terms of sale such as longer periods of credit and higher rates of descants.
Aggressive Selling
Meaning:-
Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers use various sales efforts to obtain increased sales volume
for his product it is called aggressive selling or offensive selling. The sales efforts which a
manufacturer makes to retain his customers i.e. to protect his already established market
against aganist his competitors is termed as defensive selling. In contrast to this aggressive
selling is concerned with the sales efforts made with the express objective of selling more by
expanding the market for the product of the selling firm.
Aggressive selling is based on the answer to the question how much does the firm gain
(in term of sales with profit) by using this method defensive selling is based on consideration
as to how much the firm will lose if it does not use this method increase of sales can be
obtained from two sources:-
2. From the competitors i.e. those consumers who were purchasing similar product of
competing firms, if the market for the product is static.
24
Sales promotion efforts use for aggressive selling may be divided in two classes.
1. Trade Promotion: -Under trade promotion methods special incentives are offered to the
trader to buy products of the firm. Such incentive may take one or more of the following:-
(a) Cash Allowance: - A definite percentage of discount is allowed on the purchase of given
unit of a product.
(b) Extra Product: - Instead of giving any cash allowance extra product is given with each
unit of product ordered. For instance if a box normally contains 20 Cakes of Soap, special
box contains 25 cakes may be made and sold at the same price as that of the box of 20 cakes.
(c) Gifts: - Various gifts are awarded in return for an order of a particular magnitude.
(a) Coupons:-A coupon of a giving value is sent to the consumer. By presenting this coupon
to the retailer consumers can purchase a particular product mentioned on the coupon at a
reduced price. The retailer sells the products mentioned. In the coupon to such consumer
(consumers presenting the coupons) under an agreement with the manufacturer at a price
lower than the user retail price. Thus the consumer get the benefit of reduced price to the
extent of the value of the coupons.
(b) Self Liquidating Offers :-Under this system, the firm offers an article at an attracting
price if the consumer send a given sum of money accompanied by a given number of box
tops from the packages of a particular product the benefit to the consumer is that he receives
the articles at a bargain price.
25
(c) Bargain Packs:-Under this system a product is sold at a reduced price for a short period
Bargain pack method encourages new consumers to try the product. It is also helpful in
obtaining large displays in the shops.
(d) Sampling:-The method involves giving the product or a small quantity of the product to
a consumer free with the hope that the customer will be favorable impressed with its actual
use and will eventually become a regular purchaser of the product.
(ii) Instead of using wholesalers, the firm may develop its own sales force to call directly on
retailers.
(iii) The firm may follow a compromise method by employing a manufacturer’s agent and
giving him a large enough commission to encourage him to sell product intensively and
aggressively.
(iv) New territory exploitation sales promotion has a particularly important role in
developing the company’s product in new territories.
In fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.
26
OBJECTIVES
27
&
LIMITATIONS
1. To increase sales directly by publicity through media which are complementary to press
and poster advertising.
2. To disseminate information through sales man dealers etc. So as to insure the product
getting in to satisfactory use by the ultimate consumer.
1.Due to time and money constrains the present study was confined only to a sample of 100
customers and that too of Kurnool& nearby areas.
RESEARCH
&
METHODOLOGY
Data and information for the study were collected from both:
Data Collection:-
30
There are two main sources for collecting data. These are;
1. Primary Data:
It is the data that is collected for the first time. It is fresh and the originally collected by
the surveyor.
In this Project - Sales Promotion Schemes, the researcher contacted 250 customers and situated
on the various points of the Kurnool& nearby areas.
The response were collected personally by the research through a structural questionnaire,
consisting of 20 questions.
2. Secondary Data:
Secondary data is the one which is collected by the some one else and already used in
some or the other form. Here the secondary data used was the theoretical aspects of promotional
tools and the statistical method made use of.
Sample:-
A sample of 100 customers was chosen from Kurnool& nearby areas. The sample chosen
was fully on the basis of convince of the researcher. It was a non-probability sample.
METHODOLOGY
Questionnaire method:
In this method questions are designed in such a way that how market executives promote
sales. They are designed in an order with closed ended and open ended questions.
Observation method:
31
In this method it is possible to get both past and current information, it enables to
observe the variables which influenced sales promotion.
Interview method:
It is most commonly used method in data collection it has wide flexibility. The purpose of
this method is to facilitate understanding behavioral aspects of consumers being surveyed. There
are three types of such as personal interview method, mail interview method, and telephonic
interview method.
32
CATEGORY PERCENTAGE
T.V 20%
RADIO 40%
OTHERS 10%
GRAPH
Series 1
40
30
20
10
Series 1
T.V RADIO NEWS PAPERS OTHERS
The above graph shows the mode of advertisement. According to the graph 20% of
advertisement is shown in TV and 40% of advertisement is shown in radio, 30 is shown in
newspapers and 10% is from other modes of advertisement.
CATEGORY PERCENTAGE
YES 64
NO 36
34
GRAPH
SERIES 1
Series 1
70
60
50
40
30
20
10
0
YES NO
The above graph shows the sales promotion. The graph shows 64% of people are agreed that
personal selling increases sales promotion and 36% of people are not agreed with this.
CATEGORY PERCENTAGE
YES 60
NO 40
35
GRAPH
Series 1
NO 40
YES 60
0 10 20 30 40 50 60 70
Series 1
The above graph shows that 60% of people agree that we offer discounts to the dealers and
40% are not agreed with this.
CATEGORY PERCENTAGE
YES 70
NO 30
36
GRAPH
Sales
30
YES
NO
70
The above graph shows about special displays. In the above graph 70% of people are agreed
that we conduct special displays and 30% of people are not agreed with this.
CATEGORY PERCENTAGE
YES 80
NO 20
37
GRAPH
Column1
20%
YES
NO
80%
The above graph shows that the RPG products are available at reasonable prices. In the
above graph that 80% of people are saying that the RPG products are available at reasonable
prices and 20% are not agreed with this.
CATEGORY PERCENTAGE
YES 65
NO 35
38
GRAPH
Series 1
70
60
50
40
30
20
10
0
YES NO
Series 1
The above graph shows that the availability of products according to customer preferences.
In the above graph that 65% people are agreed with us and rest 35% are not agreed with us.
CATEGORY PERCENTAGE
YES 54
NO 46
39
GRAPH
Chart Title
54
46
4.4 3.5 5
4.5
2.4
2 2 3
1.8 2.8
The above graph shows that the advantage of RPG over its competitors. It is found from the
research that 65% of people are saying that it has a competitive advantage over its
competitors but 35 are not agreeing with us.
TYPE PERCENTAGE(%)
FAMILY 10
FRIENDS 35
DEALERS 20
40
ADS 35
GRAPH
Series 1
10%
35% FAMILY
FRIENDS
35% DEALERS
ADS
20%
From the above graph we can say that the percentage of people who are influenced tobuy
products that is 35% of people are influenced to buy RPG products because of
advertisements and 35% are of friends & 20% are influenced by dealers, 10% are influenced
by their family.
EXCELLENT 40
AVERAGE 30
41
FAIR 20
POOR 10
Sales
10
20 40
30
From the above graph we can say that the percentage of people who rate our products that is
40% of people are rating it as excellent & 30% are rating as Average & 20% are rating it as
fair, 10% are rating it as poor.
BETTER 40
42
VERY GOOD 30
AVERAGE 20
POOR 10
GRAPH
PERCENTAGE
10%
BETTER
20% 40%
VERY GOOD
AVERAGE
POOR
30%
The above graph shows the opinion of people that the promotional activities of RPG. 40%
of people are saying that are better and 30% are saying that are very good & 20% are
average, 10% are saying that are poor.
CATEGORY PERCENTAGE
43
PRICE 30
QUALITY 40
ADS 30
50
45
40 40
35
30 30 30
25
20
15
10
0
0 0.5 1 1.5 2 2.5 3 3.5
From the above graph we can say that the percentage of people who are influenced to buy
products because of factors like price, quality, and advertisementsthat is 40% of people are
influenced to buy RPG products because of its quality and 30% for its price & 30% are of
advertisements.
44
SWOT
ANALYSIS
SWOT ANALYSIS
STRENGTHS:
THREATS:
FINDINGS
&SUGGESTIONS
1. It is found from the survey that most of the people are buying this product.
2. It is found from the survey that college bags are mostly preferred by youngsters.
3. RPG rates second place among different promotions in sales.
4. It is clear from analysis that consumers prefer RPG because of its brand image.
5. Among RPG products available college bags, laptop bags, hand bags, wallets are
leading the market as all the distinguished features.
47
6. It is from the survey that the cause for sales promotion are advertisements, posters,
and hoardings.
7. It is found that most of the respondents use the RPG products.
8. It is that majority of the respondents are satisfied with our products.
CONCLUSION
CONCLUSION
Sales promotion is a process by which the marketer tries to build a long term
relationship with the customers by learning their needs and wants to satisfy their mutual
49
aspirations. Consumers have different degrees of promotions to specific brands and stores
and companies.
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures has to take
effective steps in meeting the consumers in the markets. In the present consumer oriented
markets it is the duty of manufacturers to know what is required by the consumer.
Here the Aggressive selling and the sales promotion are major in this market.
50
BIBLIOGRAPY
BIBLIOGRAPHY
51
Website - www.libertybags.com
www.bagindustry.com
52
QUESTIONAIRE
Please take few minutes of your time to fill this questionnaire and this information will be
confidential
About You :
Name :
Age :
Gender :
53
Occupation :
A) Yes B) No
A) Yes B) No
A) Yes B) No
A) Yes B) No
A) Yes B) No
A) Yes B) No
N.MADHUSUDHAN REDDY
(B.B.M)Signature