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CHAPTER- I
INTRODUCTION
2
sector in every economy is significant. Now, due to globalization, every
economy is facing tough competition. Entries of MNCs and cheaper import
have made the situation more difficult. To carry out the business in this
sector, it has become very difficult. Every company has to spend a large
portion of their budget on promotional efforts. Most of the companies have
applied various elements of promotion mix. Promotion mix elements include
advertising, publicity, sales promotion, personal selling and packaging. Sales
promotion is one of them and it is our concerned topic. In present
competitive situation most of MNCs had developed sales promotion strategy
in selection of parties, techniques and managing sales promotion techniques
effectively and efficiently. This strategy provides competitive advantage to
the companies in the market to grow, stabilize and excel in business
performance. Therefore, sales promotion strategy is very significant for
companies to earn bread and butter. This attracted me to select and study this
topic.
3
CHAPTER- II
Industry Profile
Many top marketing companies have global offices that offer a variety of
services, making it easier for clients to have more aspects of their projects
completed by one company instead of contracting with different companies
for different services. Clients often prefer agencies with full-service branding
and marketing communications services. The types of services marketing
agencies offer include analytics, such as studying data after an advertising
campaign is completed to see where improvements can be made, and media
research, for traditional, digital, social media, and search engine marketing.
Full-service marketing agencies may also offer public relations and social
media research and strategy, as well as production and creative services, and
consumer research, and brand development. All of these services are done in
an effort to improve connections with the customers and boost sales.
5
Company Profile
About us
Steadfast Distributors started out as a small business in 2009 when the core
business of the company at that time was supplying corner grocers and small
retail outlets with grocery items. The company has grown rapidly since then
and now employs over 150 people with warehouse and office space in the
main economic centers.
Mission
6
Sales and marketing strategy
Depending on the profile of the product range we will also conduct above-
the-line advertising and we will position advertising and advertorials in
targeted publications. We use this two-pronged approach for the premier
brands in our portfolio and for those for which we have established strong
national listings and received support from the retail buyers.
In present situation not only in one industry but also all sectors are
facing tough competition. It has become very difficult to grow, stabilize and
excel in business performance. Over and above, business environment is
changing drastically. It is very difficult to predict about future. High degree
of risk is involved in it. Sincere and dedicated efforts are needed in
marketing to retain the existing customers and attract the new customers. It is
required to influence the attitude and behavior of buyers. A lot of
promotional activities are needed. The leading companies are using
difference techniques for promotion. These are advertising, publicity, sales
promotion, personal selling and packaging. These are serving the difference
objectives. Sales promotion is one of them and gives a great impact on
customer buying behavior to increase sales in short term. It contributes to
7
neutralize the competition effect. To achieve the objective a strategy is
needed for effective application of sales promotion. The contribution of sales
promotion strategy is significant in present time to stay in business in
competitive market. The importance of it attracted my attention to select this
topic for research study.
(c) To understand Indian FMCG sector and find out the practices
adopted by the leading companies regarding sales promotion strategy, their
effects and difficulties faced in it by the selected companies.
8
This study is relating to promotion-mix elements out of total
marketing efforts. It will cover mainly sales promotion, methods for sales
promotion, parties involved for sales promotion, combination of promotion
methods with sales promotion, sales promotion strategy and its related
concepts. This topic has studied in FMCG sector in world and Indian
industry. Leading companies have been selected on the basis of their market
share for the research study and their comparative study has been carried out.
Further, focus is there on future of sale promotion strategy also. The scope of
the study as per the topic is sufficient enough to meet the requirement of
research study.
9
REVIEW OF LITERATURE
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experience and a cultural immersion for their customers, as well as an
opportunity to develop the ritual dimension of consumption (Belk et al.,
1988; Maisel, 1974; Rook, 1985; Sherry, 1990). Research notes that the
experience of buying at a flea market is also important, such as the
excitement of looking for interesting objects, the „treasure hunt‟, search for
bargains, the possibility of negotiating, and even the socializing, interaction,
fun experience otherwise not offered in a regular mall (Maisel 1974; Belk et
al., 1988; Sherman et al., 1985). As Sherman et al. (1985) writes, the most
frequent, heavy shoppers at a flea market consider the location an enjoyable
place to shop, with a varied offer of products, while the less frequent, „light‟
shoppers rather had product and ethical reservations about flea markets.
Moreover, a significant observation, especially in the current economic
conditions, is the fact that some researchers consider the flea markets as an
alternative shopping place when the lower and middle class purchasing
power is declining (Sherman et al., 1985), which opens them for consumers
at the lower end of the economic spectrum. Other studies summarize that the
consumers consider the flea market as an opportunity to find lower prices,
variety of products, social benefits, bargains and shopping excitement (Belk
et al., 1988; Sherman et al., 1985). China. It shows their operations (e.g.,
buying, selling, and merchandising) are very similar to those of permanently
anchored small retailers, and consequently they should be able to make
similar societal contributions. (Meshram, Kanika, O‟Cass, Aron 2010)
suggest that street food vendors gain competitive advantage through their
price based value offering while, whereas restaurant owners compete against
street vendors by offering superior performance value. However, both firms
seek advantages by maintaining close relationship with their customers. The
vendors in the street market understand how to sell products to target
customers and how to emphasize commonality with the mainstream markets
and where the difference lie (Emslie et al, 2007) Walsh, J. (2010). In terms
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of the marketing mix, while there is some flexibility for smart street vendors
to vary the product and the place where operations are conducted, it is clear
that price is the variable which is the easiest to manipulate, and the one
which is most commonly changed. Interestingly, research indicates that Thai
consumers are keen to demonstrate that they are good at negotiating price
and understand the value of a product: they are, generally, willing to pay
more for a higher quality item and also expect to pay less for a lower quality
item. The new generation of street vendors, conduct (informal) market
research and integrate the results with their own understanding of business
and of the nature of their customers Dr. Kumar Kanagaluru, (2011), the
retailer‟s perceptions towards various strategies have been studied to
determine a solution to overcome the threat from the organized retailers. The
results of factor analysis technique shows that product strategies is the most
important factor followed by price strategies, distribution strategies and
promotion strategies. Therefore the unorganized small retailers must give
utmost importance to these factors to overcome the competition faced by
them as all these strategies contribute to the positive perceptions of retailers
towards effective sustainability in the market.
Promotional Strategies
13
CHAPTER III
CONCEPT OF PROMOTION STRATEGY
PROCESS OF COMMUNICATION
Promotion Mix
Personal Selling
In the majority of cases applied what belief to the purchaser was delivered,
signs and packaging of the disembodied images in television, radio,
magazines, and coupons. This is the 'impersonal sale' advertising, promotion
and Public Relations.
Personal selling is similar to the advertising in the sense that both wants to
same aims in sales and that understandable, relevant, and credible and need
to be persuasive. Advertising, however, differs from the personal sales in
some aspects. Advertising relies on an impersonal way, to make contact and
to sell. In relation to sales associates advertising, personal a share
significantly more advertising dollars and several times more is based on the
17
number of employees. This relationship exists in all countries. In fact it
makes abundant labor force in developing countries easily and affordably for
personal selling to use. Shoplifting issues also require the use of personal
selling, self-selection and relatively rare self-service (Nishan C, Thushara &
Nadini, 2005). The differences between advertising and personal selling can
also be drop in contrast in relation to Process advertising, communication is
a one-way communication process has relatively more "noise", while the
personal selling is a process of two-way communication with instant
feedback and relatively less "noise". Control of the message is more
dependency relationships, personal than to sell in advertising since provider
react to unforeseen situations and in a manner that may differ from the policy
of the company (Irving, 1997). However, advertising in general less
compelling, because the advertising of which are prepared which have
minimal contact with customers and because the message to the simple
appeal must be kept in a large number of people. Personal selling is flexible
and efficient on the other side. A seller can adapt the message to the ability
of the customer at the time of the presentation, and stimuli can be presented
to the appeal to all five senses (Frampton, 2012).
Motivation
19
social caste system, it is difficult for the representatives of trade (Akkaya,
2002). To sell outside their own social level, In Brazil, the determination of
the sales force compensation and the prices of the products by galloping
inflation rates and the national labor laws is affected. Is someone less than in
the previous pay released year amount if a problem? Several factors can
affect the revenue development. Role conflict and role ambiguity have been
found, with adverse effects on sales staff in the United States conflict and
role ambiguity, a number of techniques used to reduce in Japan and Korea
(Kaufman, 2010).
Personal Selling is not required always a conversation face to face. The best
example of Personal sell can be done by telephone. Although the sale of the
phone there since some time, the growth in the field of direct marketing has
pushed this method of selling at the top. This business practice is now known
as telemarketing becomes very popular (Globalization thrust, 2009). Seller -
20
but not necessarily with consumers who believe that they are flooded with
such calls. Through effective lobbying by telemarketing, U.S. legislators, a
legislation limiting the use of Tele-Marketing have adopted resisted. Within
the lobby work optimally pointed out that legislators disrupt their own fund
raising efforts would the proposed restrictions. However, Governments in
the place of the do not call in 2003 lists ultimately put the United States
(Ghemawat & Reiche, 2011). Telemarketing is not so developed in the
overseas markets, like the limited availability of phones for private
households is a problem. The laws of data protection are another obstacle.
Cold calling (unsolicited sales calls) receives a detailed review on behalf of
the protection of consumers and the right to privacy. A statutory cooling
Period applies to sales closings by phone. The Germany is even more
restrictive. It prohibits the telephone solicitation from reasons of invasion of
privacy, and the announcement of the visit ban also applies to the assurance
of vendor. (Hines & Jr, 2003)
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CHAPTER- IV
RESEARCH METHODOLOGY
RESEARCH DESIGN
In my project I have used various tools of Exploratory Research. This
research will be done to gain background information of the problem. An
initial research will be conducted to clarify and define the nature of the
problem. The various tools used are experience surveys, in depth interviews,
secondary data analysis. Descriptive research was done where questionnaires
were given to the retailers and the wholesalers to find out the competition in
HUL skin category.
QUESTIONNAIRE DESIGN
The questionnaire consists of predominantly closed ended and option based
question in order to provide some ease to the respondents. In order to make
the questionnaire more effective following points are covered:
Uniformity in questions and ease of tabulation and analysis.
Reduce subjectivity
Easier to receive response
Less time consuming.
The questions tried to cover all aspects required to analyze the skin category
of HUL and other competitive brands. The various variables are analyzed in
the questions.
SAMPLING METHODOLOGY
SAMPLE PLAN
The project was conducted for the geographical region of Bilaspur. The
sample consists of both the retailers and wholesalers of the general trade.
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DATA COLLECTION
The data collection exercise was carried over a period of 15 days, in the
various markets of the region. Over the period of 15 days the data was
collected and then all the data was very carefully studied and the results were
found out. “Marketing research means the systematic gathering, recording,
analyzing of data about problems relating to the marketing of goods and
services” Marketing research has proved an essential tool to make all the
need of marketing management. Marketing research therefore is the
scientific process of gathering and analyzing of marketing information to
meet the needs of marketing management. But gathering of observation is
must be systematic. The systematic conduct of research requires:
Orderliness, in which the measurements are accurate. Impartiality in analysis
and interpretation. All of research can be categorized into basic and applied.
1. BASIC RESEARCH: -
Basic Research is that intended to expand the body of knowledge for the
use of others.
2. APPLIED RESEARCH: -
Applied Research is one, which is carried out to find the solution for a
particular problem or for guiding a specific decision. It is usually private in
nature. My research on Vodafone is carried on for guiding specific decisions
and its results are useful only to Vodafone for taking particular decision
regarding product quality, staff and security. Hence the nature of my
research study is “APPLIED RESEARCH “.Research Approach Data
collection methods
a) Secondary Research External secondary data has been generated to
obtain volume of sales regarding beverage markets, fruit drinks, each of the
brands and the positioning of each of the brands.
b) Survey Research Data was collected from candidates using
questionnaire. The questionnaire was distributed in colleges and people on
23
the street. I distributed the questionnaires outside the shops to gather data
from people who had come to visit there. I made an online questionnaire and
circulated on the internet and gathered results from those. Measurement
Instruments: The measurement instrument in the questionnaire was a five
point Likert scale. Apart from details regarding their choice of drink for
refreshment, their frequency of visits and the channels they choose, their
spending patterns will also be mapped.
The data was extracted and put in MS Excel. All the further analysis was
then carried out using SPSS. The measurement was designed to get a fair
idea about the various attributes and conducted factorial analysis of the
important attributes. Samples the aim was to collect 100 samples for the
analysis. The samples should be such that they are consumers of fruit drinks.
I also tried to get an adequate ratio of men and women in the samples.
The main demographics targeted were the younger age group as they are
more health conscious and aware of such health drinks. Also I tried to focus
more on the college going crowd and young professionals as they would be
more interested in trying out new products and were more conscious. Buyers
who have been consuming fruit drinks were better able to answer the
questions regarding the influencing factors and the reasons for their
consumption and purchase.
The samples collected from internet have also been very valuable in the
research. Analysis Techniques the analysis techniques used have been on
SPSS and the tests were performed to ascertain the factors influencing the
consumer decision while buying fruit drinks. Factor analysis was conducted
to discern out of the 13 factors mainly which factors influence the buying
habits of the consumers. Ultimately I identified 5 factors which mainly have
an influence. I also conducted correlation tests to find out the various
reasons for purchasing any particular brand of fruit drink.
24
Limitations: The main limitation is the sampling conducted. It was done in
a random manner and no particular technique followed. In the first survey a
greater number of college students have been surveyed. The data might not
be representative of the entire population. Various statistical techniques as
learned have been implemented and conclusions as best possible have been
drawn making few assumptions as and when required. Since no data was on
interval or ratio scale it was not feasible to conduct Regression and ANOVA.
A limitation of the Study Every study is bound by limitations and as such
this is no exceptions.
1. “Change is Constant” rule of nature. Hence, the study undertaken may not
hold good for longer duration.
2. The study was conducted under the assumption that the information given
by the respondents is authentic.
3. The analysis and suggestion are given only with respect to marketing
aspects as technical suggestion with respect to the product could not be
given.
4. Confidential matters were not disclosed by the company.
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CHAPTER- V
Data Analysis
Type of Respondent
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
Retailer 66 66.7 66.7 85.9
Wholesell 14 14.1 14.1 100.0
r
Total 99 100.0 100.0
26
Deals in HUL Products
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
Yes 80 80.8 80.8 100.0
Total 99 100.0 100.0
27
Personal Care
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
Yes 80 80.8 80.8 100.0
Total 99 100.0 100.0
28
Confectionery
Cumulative
Frequenc Percent Valid Percent
y Percent
Valid 19 19.2 19.2 19.2
No 14 14.1 14.1 33.3
Yes 66 66.7 66.7 100.0
Total 99 100.0 100.0
29
Dental Care
30
Detergent and Soaps
Cumulative
Frequenc Percent Valid Percent
y Percent
Valid 19 19.2 19.2 19.2
No 13 13.1 13.1 32.3
Yes 67 67.7 67.7 100.0
Total 99 100.0 100.0
31
Visits of Agents per week
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 1 9 9.1 11.3 11.3
2 34 34.3 42.5 53.8
3 37 37.4 46.3 100.0
Total 80 80.8 100.0
Missin System 19 19.2
g
Total 99 100.0
32
Orders Placed Per Month
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 1 1 1.0 1.3 1.3
2 9 9.1 11.3 12.5
3 20 20.2 25.0 37.5
4 24 24.2 30.0 67.5
5 22 22.2 27.5 95.0
6 3 3.0 3.8 98.8
9 1 1.0 1.3 100.0
Total 80 80.8 100.0
Missin System 19 19.2
g
Total 99 100.0
33
Quantity in Single Purchase ( '000)
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 5 34 34.3 42.5 42.5
6 14 14.1 17.5 60.0
8 18 18.2 22.5 82.5
25 4 4.0 5.0 87.5
30 8 8.1 10.0 97.5
40 1 1.0 1.3 98.8
50 1 1.0 1.3 100.0
Total 80 80.8 100.0
Missin System 19 19.2
g
Total 99 100.0
34
Most Difficult to Sold
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
Dental Care 80 80.8 80.8 100.0
Total 99 100.0 100.0
35
Easy to Sold
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
Personal Care 80 80.8 80.8 100.0
Total 99 100.0 100.0
36
Incentive
Cumulative
Frequenc Percent Valid Percent
y Percent
Valid 19 19.2 19.2 19.2
Cash Discounts 10 10.1 10.1 29.3
Free Gifts 14 14.1 14.1 43.4
Trade Discounts 56 56.6 56.6 100.0
Total 99 100.0 100.0
37
Attraction to Offers
38
Customer has knowledge of product
Cumulative
Frequenc Percent Valid Percent
y Percent
Valid 19 19.2 19.2 19.2
No 33 33.3 33.3 52.5
Yes 47 47.5 47.5 100.0
Total 99 100.0 100.0
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Customer have knowledge of Company
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
No 50 50.5 50.5 69.7
Yes 30 30.3 30.3 100.0
Total 99 100.0 100.0
40
Customers Attracted by Offers
Cumulativ
Frequenc Percent Valid e
y Percent Percent
Valid 19 19.2 19.2 19.2
No 12 12.1 12.1 31.3
Yes 68 68.7 68.7 100.0
Total 99 100.0 100.0
41
P&G
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
no 50 50.5 50.5 69.7
yes 30 30.3 30.3 100.0
Total 99 100.0 100.0
42
ITC
Cumulativ
Frequenc Percent Valid e Percent
y Percent
Valid 19 19.2 19.2 19.2
no 41 41.4 41.4 60.6
yes 39 39.4 39.4 100.0
Total 99 100.0 100.0
43
Others
Cumulative
Frequenc Percent Valid Percent
y Percent
Valid 19 19.2 19.2 19.2
Yes 80 80.8 80.8 100.0
Total 99 100.0 100.0
44
Analysis Table
45
Analysis Table
46
Analysis Table
Orders Placed
Per Month
9 Total
Visits of Agents per 1 Observed 0 9
week
Expected .1 9.0
% within Orders Placed
.0% 11.3%
Per Month
2 Observed 1 34
Expected .4 34.0
% within Orders Placed
100.0% 42.5%
Per Month
3 Observed 0 37
Expected .5 37.0
% within Orders Placed
.0% 46.3%
Per Month
Total Observed 1 80
Expected 1.0 80.0
% within Orders Placed
100.0% 100.0%
Per Month
47
Chi-Square Tests
48
Analysis Table
49
Analysis Table
50
Analysis Table
Quantity in
Single
Purchase (
'000)
50 Total
Visits of Agents per 1 Observed 1 9
week Expected .1 9.0
% within Quantity in
100.0% 11.3%
Single Purchase ( '000)
2 Observed 0 34
Expected .4 34.0
% within Quantity in
.0% 42.5%
Single Purchase ( '000)
3 Observed 0 37
Expected .5 37.0
% within Quantity in
.0% 46.3%
Single Purchase ( '000)
Total Observed 1 80
Expected 1.0 80.0
% within Quantity in
100.0% 100.0%
Single Purchase ( '000)
51
Chi-Square Tests
52
Analysis Table
53
Analysis Table
54
Analysis Table
Orders Placed
Per Month
9 Total
Incentive Cash Discounts Observed 0 10
Expected .1 10.0
% within Orders Placed
.0% 12.5%
Per Month
Free Gifts Observed 0 14
Expected .2 14.0
% within Orders Placed
.0% 17.5%
Per Month
Trade Discounts Observed 1 56
Expected .7 56.0
% within Orders Placed
100.0% 70.0%
Per Month
Total Observed 1 80
Expected 1.0 80.0
% within Orders Placed
100.0% 100.0%
Per Month
55
Chi-Square Tests
56
Analysis Table
57
Analysis Table
58
Analysis Table
Quantity in
Single
Purchase (
'000)
50 Total
Incentive Cash Discounts Observed 0 10
Expected .1 10.0
% within Quantity in Single
.0% 12.5%
Purchase ( '000)
Free Gifts Observed 0 14
Expected .2 14.0
% within Quantity in Single
.0% 17.5%
Purchase ( '000)
Trade Discounts Observed 1 56
Expected .7 56.0
% within Quantity in Single
100.0% 70.0%
Purchase ( '000)
Total Observed 1 80
Expected 1.0 80.0
% within Quantity in Single
100.0% 100.0%
Purchase ( '000)
59
Chi-Square Tests
60
CHAPTER- VI
Findings
1. It‟s overwhelming to find out that the organization works
in a systematic manner. A blend of co-ordination will
definitely enhance the performance of the company.
2. Quality clubbed with reasonable pricing and quick
delivery made the product of the company stand apart. The
marketing campaign should focus on this aspect and made
according to its line.
3. The strength of the company is its customized products.
This very fact must be highlighted in the marketing
campaign.
4. As the products are reasonably priced, the ambit of the
target consumers should be stretched so that middle class
consumers also fit into it.
5. The company must stick to a norm while giving discounts
on repeat purchase. This will certainly help in sales
promotion in order to create repeat purchase.
6. In order to have a rapid market access, the company can
include dealers, if not retailers at the moment.
7. The company can introduce some reward schemes so that
61
a person is benefited after the fulfillment and over
achievement of the target. This is predominantly done to
motivate the sales force and enhance their performance.
8. Other than emphasis on design, craftsmanship and product
quality, the company‟s unique strength also lies in its
capability as a fully – integrated furniture manufacturer.
This fact should be highlighted during the advertisement
campaigns.
9. The need of the hour is aggressive marketing.
62
Suggestions:
1. Everyone is aware of the growth in wealth and change in
lifestyle among Bangalore‟s novae riche. So the marketing
campaign should be designed to woo the customers.
2. The company should explore all possible ways in order to
aggressively sell its products.
3. In today‟s crowed market place in order to increase the size
of the pie, the Company can adopt innovative promotional
strategies. It will help in creating and reinforcing the
Company‟s identity in the minds of the consumer.
4. In order to be extra ordinary, the Company has to walk the
extra mile. A method named „Experimental Marketing‟
can be adopted by the Company wherein the
prospective consumers can be invited to visit the
showroom and touch and feel the products.
5. Since the competition is intense, so there should be some
value addition so as to make the Company stand apart in
the market. One such way is to improvise the customer
service.
6. Consumer is the king in the market. This fact should be
deeply rooted in the minds of the employees. The
Company can adopt some ways to listen to the customer‟s
feedback which should be noted in writing so that it will
help in continual improvement and make the company to
be in the right track always. Moreover, a sense of
involvement will be felt by the customers whish can give
the company a cutting edge.
63
BIBLIOG
RAPHY
Name Of Name Of Author Edition
Book &
year
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REFRENCES
1) www.google.com
2) www.hulindia.com
3) www.bing.com
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