A STUDY ON PROMOTIONAL STRATEGY

CHAPTER- I

INTRODUCTION

Introduction to the Topic Every business organization reaches to the

customers through their goods or services. To sell the products to the
customers a number of activities are being performed. This is called
marketing and it is an important function. Marketing is the performance of
business activities that directs the flow of goods and services from producer
to the customer. It is the activity that directs to satisfy the human needs
through exchange process. Marketing starts with the identification of a
specific need of customers and ends with satisfaction of that need. For easy
understanding these activities are divided in 4 groups for products and 7
groups for services. These elements are product, price promotion, placement
for products and three additional elements for services are process, people
and physical evidence. These are called elements of marketing mix.
Promotion is one of the elements of marketing mix. Promotion decisions are
taken simultaneously with other decisions like finding target group,
determining objectives, budgeting for promotion, launching of new products,
distribution etc.. Marketers are concerned with effective utilization of
promotion-mix to increase sales and market share. Methods of promotion
include advertising personal selling, publicity, sales promotion and
packaging. Sales Promotion is the activity that aims directly to influence
buyers to buy products and increase sales. In sales promotion mainly three
parties are involved i.e. consumers, traders and sales force. “Sales
promotions include incentive offering and interest creating activities which
are generally short term marketing events other than advertising, personal
selling, publicity and direct marketing. The purpose of sales promotion is to
1
stimulate, motivate and influence the purchase and other desired behavioral
responses of the firm’s customers”. Kazmi and Batra The main objective of
sales promotion is to increase the sales of products in short term by
influencing behavior of buyers. Sales promotion methods are many and these
are selected as per the target groups. For this purpose, a sales promotion
strategy is to be prepared to achieve the objectives effectively. The strategy
is a game plan that is needed to perform the tasks effectively and get
competitive advantages over others in market. Sales promotion

Strategy directs the manager in selection of parties, methods of sales

promotion, implementation of methods and measuring effectiveness of
whole efforts regarding sales promotion. In competitive situation, it is very
difficult to increase sales or profit. But with sales promotion strategy sales
can be increased in short – term. It explains what, when, where, who and
how to do so that objectives of the planning are achieved. Without the
strategy the task may not be completed effectively. Sales promotion strategy
would help to neutralize the effective of competition and defend the
company in the market in performing the sales related tasks. The importance
of sales promotion strategy is increasing day by day and in future higher
level of competition it would increase further. Indian industry is a fast
developing industry. Fast Moving Consumer Goods (FMCG) are more in
demand and frequently purchased by customers. These goods include all
consumable goods (other than pulses and grains) and consumers buy at
regular intervals in small quantities. Main items in this category are
detergents, soaps, shaving products, shampoos, toothpastes and brushes,
packed food stuffs, household accessories, creams, oils, tea, coffee etc. The
major players in the markets are HUL .Nestle, P & G, Colgate, ITC, Nirma,
Britania, Amul, Emami, Marico and Dabur. Every family spends a large
portion of monthly budget on FMCG products. Contribution of FMCG

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

PROFILE OF THE STUDY

Industry Profile

The purpose of the marketing industry is to communicate companies’

offerings to consumers, clients, and the general public. Marketing
professionals bridge the gap between companies and their customers. The
American Marketing Association defines marketing as “the activity,
institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and
society at large.″ In the United States, the marketing consultant industry is a
$43 billion business, consisting of nearly 198,000 businesses that employed
more than 355,000 workers in 2016, as reported by the market research
group IBISWorld.

Marketing companies employ consultants who advise businesses on ways to

improve their marketing tactics, with the goal of understanding what
customers want, giving them what they want, and increasing profits.
Businesses may hire marketing professionals to conduct marketing and sales
research (e.g., public opinion polls, surveys, etc.), sales forecasting,
developing marketing objectives and policies, developing and pricing new
products, and for other assistance in improving and enhancing their business
operations. Governments, educational, religious, social service, and
nonprofit organizations hire marketing specialists to help them manage their
products and services and promote their brands.

The types of jobs in the marketing industry include marketing managers,

market research analysts, and marketing specialists. Marketing professionals
may work in-house with companies on a full-time basis or they may be hired
4
as independent consultants. The Department of Labor reported that there
were 192,890 marketing managers employed in the United States in May
2015. Other business areas that the marketing industry works closely with
include brand and product management and development, advertising,
promotions, public relations, and media relations.

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.

The marketing industry is a relatively young industry. It began in the early

1900s, when scholars started to study the relationship between sellers and
buyers. By the 1950s, competition between companies was keen. The
common tactic of selling as much product as possible without considering
what customers wanted had saturated the market. Companies wanted to
streamline their sales process and make their sales transactions more
efficient and effective, so they started to take buyers into account. This
approach gave rise to what became known as the marketing concept, which
is the philosophy that companies should first analyze their customers’ needs
and then any decisions they make should aim to meet those needs.

5
Company Profile

About us

Steadfast Distributors is a privately owned international trading and

distribution company. Our management has many years experience in the
fields of importing and distributing. The basic function of the company is to
source, market and distribute supermarket foodstuffs and beverages from
both the domestic and overseas markets.

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.

In India, we are well established with a highly professional sales, marketing,

and warehousing and distribution operation. Consequently we are able to
deal with all the major supermarkets and independent retail operators. We
are continuously sourcing products, which we feel have the potential to
impact on the Indian market. We have all the necessary experience,
knowledge and capital to ensure the success of our suppliers.

Mission

Our company's mission is to spot developing niche markets and take

advantage of these opportunities by working closely with our suppliers and
our customers. We strive to provide an excellent marketing service that is
supported by an experienced sales team. We would like to think that our
customers see us as adding value and that our suppliers view us as genuine
partners.

6
Sales and marketing strategy

Steadfast Distributors concentrates on brand building and brand

custodianship in terms of representing its national and international brands in
the Indian retail sector.

We strive to build awareness of the brand firstly through distribution and

listings in the retail trade and making use of strong below-the-line in-store
activities such as in-store promotions, sampling, gondola ends and price
deals for select periods of the year.

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.

Rationale of the Study

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.

Objectives of the study

The study of this topic has been undertaken with a number of

objectives. Following are the objectives of this study:

(a) To understand the concept of promotion, methods of promotion in

markets, sales promotion, need, objectives, importance in competitive
situation, and relation with various promotional methods,

(b) To study the tools or techniques of sales promotion, impact on

sales, parties involved in sales promotion, management of sales promotion
measures, need for sales promotion strategy and its importance, and role of
sales promotion strategy in progress of number of customers, sales volume,
profits and progress of the business as a whole.

(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.

(d) On the basis of study, to summaries the findings and give

suggestions for further improvement in sales promotion strategy practices
and its contribution in achieving objectives of sales promotion.

(e) To meet the requirement of Ph. D research study.

Scope of the Study

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.

Expected Contribution from the Study

It is expected the study of this topic would contribute in clarifying the

all concepts relating to marketing communication, promotion mix, sales
promotion, and strategy relating to sales promotion, impact of sales
promotion strategy on sales, profit and profitability of companies, market
share and goodwill of the companies. After study of the topic in depth the
fundamental concepts have been made very clear. The beneficiary from the
study of this topic would be first of all self-researcher, academicians,
practicing managers, prospects researchers and the banks. If these parties
refer this research study in future may take advantage of the finding and
suggestions. Academician, practicing managers and research students may
take benefits for academic purpose and on the jobs. The FMCG companies
may implement the suggestions for improvement of sales for achieving sales
targets. It can be said the benefits would be multidimensional for above
mentioned parties.

9
REVIEW OF LITERATURE

Informal Sector The “informal economy”, meanwhile, or what is

variously called “cash-in-hand work”, the “shadow economy” or the
“underground sector”, is here defined as the paid production and sale of
goods and services which are unregistered by, or hidden from, the state for
tax and/or benefit purposes but which are legal in all other respects (Colin C.
Williams, John Round., 2008) 1 . This widely agreed definition recognizes
that the only illicit aspect of informal work is that the transactions are
unregistered and/or hidden from the state for tax and/or social security
purposes. Gerxhani (2004, p.274)4 states, they “choose to participate in the
informal economy because they find more autonomy, flexibility and freedom
in this sector than in the formal one. In other words, participants have the
freedom of operating their own business; they have flexibility in determining
hours or days of operation; they can use and develop their creativity”.
Previous studies on flea market: Multitudes of Flea markets exist around the
world, however, few studies in consumer research have explored this
phenomenon. „Academic research into flea markets has yielded a rather
small and circumscribed literature of discontinuous quality‟, states Sherry
(1990). While it has usually been regarded as a second-order marketing
system (Sherry, 1990), the flea market represents an interesting economic
phenomenon to be studied from the marketing point of view (Belk, Sherry
and Wallendorf, 1988; Sherman, McCrohan and Smith, 1985; Sherry, 1990;
Yavas and Riecken, 1981), especially considering the economic changes due
to recession. As an informal and formal marketplace and economy (Sherry,
1990), marketing authors suggested that flea markets usually cater to lower
class or low income shoppers, but not exclusively (Belk et al., 1988;
Sherman et al., 1985; Sherry, 1990; Yavas and Riecken, 1981). They provide
not only a place for low cost goods, new or used, but also a shopping

10
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
11
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

Promotion is concerned with any vehicle you employ for getting

people to know more about your product or service. Advertising, public
relations, point-of-sale displays, and word-of-mouth promotion are all
traditional ways for promoting a product. Promotion can be seen as a way of
closing the information gap between would-be sellers and would-be buyers
(Jones, 2007). Zeithaml et al. (1985) described promotion as part of specific
effort to encourage customers to tell others about their services. Kotler,
(2005) discovered that Promotions have become a critical factor in the
product marketing mix which consists of the specific blend of advertising,
12
personal selling, sales promotion, public relations and direct marketing tools
that the company uses to pursue its advertising and marketing objective.
Shopping experience According to Dholakia (1999), the rationale for
shopping is making physical visits to a shopping site. It is considered as a
household task as well as a form of recreation, relaxation and entertainment.
Shopping is also considered to have the most positive attribute of being a
leisure activity along with work (Dholakia, 1999). Study suggests that
consumers of Indian unorganized retail market do not require the service
paraphernalia offered by many retailers. Store environment plays a vital role
for store patronage and repeat purchases which includes convenience, value
for money products, etc. Sinha & Banerjee (2004) Terblanche & Boshoff
(2006) suggested that retailers will have to accept that it is not only what
they are marketing but also how it is done. The personal (face-to-face)
interaction between retail staff and shoppers is of critical importance. Das &
Kumar (2009) studied the impact of sales promotion on consumers shopping
experiences. A major finding reveals that keeping product satisfaction
constant, sales can be improved by enhancing shopping experience which
includes convenience of shopping, ease of locating products, easy check in
and checkouts, customer friendly sales people and customer friendly
policies. Secondly finding reveals that purchase decision for the same
product under same promotion at different stores may vary because
difference in shopping experiences provided by different stores. Further this
study shows that promotion plays a limited role on consumers buying
behavior where only small percentage of people are attracted to such sales
promotion and wait for it. Study lastly emphasizes on the importance of
shopping experience (ease of shopping, parking space, convenience etc.) for
positively impacting consumer buying behavior.

13
 CHAPTER III
CONCEPT OF PROMOTION STRATEGY

Promotion and Communication The aim of promotion to both

communicate with buyers and seller they concern, Effective promotion
requires a good understanding of the process Power of persuasion and how
this process affect Environmental factors. The potential buyer must to get not
only the desired information but should the ability to understand this
information. In addition, the information Sufficiently must be. Strongly
motivate those buyers react positively. How to contact with person means
certain facts and information are exchanged together with this person
(Grehalva, 2004). The communication is basically five-step process of
comprising source code, Information, decoding, encoding and target. The
encoding is a step that converts the idea or the information in a form, the
transfer (written or spoken words) (Bhattacharya, 2006). For a receiver
understand the information encoded, the Person must be capable of decoding
these words. The source can encode and the receiver can decode by
experience that each has a representing the two great circles in (Figure - 1)
the fields of the experience of each of the parties (McShane, S.L., Von
Glinow and M.A., 2003). If the two districts have a large community room,
communication is relatively easy, since the two individuals have similar
mental and social attributes Communication is more dependencies, if the
overlap Area is smaller. It is often the case with the international
Communication. If the parties are not meet, communication is probably not
possible, the transmitter and receiver that have nothing, Common and so
they have a very difficult time understanding each other. In addition 'Noise'
(people with disabilities) can affect an easy. The phases of high, affecting
communication difficult to predict, therefore, the sender must focus on the
receiver. (Fang, 1997) The message should contain. The information that the
14
recipients can identify with, and the Information should be coded with the
corresponding images and the words, the experience of recipient set and
language

PROCESS OF COMMUNICATION

Promotion Mix

To communicate with influence of costumers is usually the most visible

component of the promotion, customer impact, several promotional tools are
but this is not the only component. The mix of funding also consists of three
distinct but interconnected activities: sales, advertising and sales promotion
(Samson, 2010). Four promotional (4Ps) join each other cannot and it
difficult sometimes, to choose one of the four activities, certain advertising
can be. Consider trade fair. Promotion trade fair can be as advertising,
because fair sponsor and participating companies, commonly used in the
direct mail and newspapers, to announce the event. Since the media on
behalf of advertising and press releases received, they are ready, free offer
Advertising for both fair. Moreover, staff at a kiosk is necessary, and plenty
of opportunity for the representatives of the company by sales personnel
makes sales. (Kotler, 2001). Finally, it is not uncommon that the participants
fair to free offer Gifts and a special award on the display and these
15
techniques are classified as sales promotion tools. This chapter focuses on
the sales staff, advertising and sales promotion (Singh & Bodla, 2003)

PROCESS OF PROMOTION MIX

Personal Selling

According to the American Marketing Association, personal selling is an

"oral presentation in a conversation with one or more potential buyers’ for."
makes the purpose of sales” Personal selling, also selling, used at every level
of the distribution. The cost of sales staff highly. (Robert & N Anthony,
2008) Sales, the arts of education which are defined as interaction face to
face, which, the something tangible or intangible value for another element
equivalent exchanged usually with a lot of money or higher of the item sold,
Sale is part of the promotional mix. Figure - 3 is systematic, repeatable and
measurable. If properly analyzed, data return on sales overcome objections
and help, to models deliver the projections and sales predictions. Personal
Selling “The Marketing Hub describes relationships in the Promotional
mix.” Marketing effects personal selling and expands the selling and
targeting the costumer environment by experience to possible customer’s
target. In the language sales for distribution and commercialization 'personal
16
selling' singles of situations where a real man tries to sell something to a
different staff. You may questions now, what other kind of real sale there.
The answer is that personal for sale a functional equivalent (C. Johnson &
Weinstein, 2004).

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.

PROCESS OF PERSONAL SELLING

Personal Selling Vs. Advertising

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).

Varying Quality and Style of Personal Selling:

The quality of the different personal selling of a product from employee to

employer and a destination to another, Retail seller’s sale for manufacturers
is usually better trained and better qualified than those who work for the big
and retailers. With regard to the target group, vendors who sell to industrial
users are rather "Getter" and are usually aggressive, well-educated and well
informed. Commercial seller receives high remuneration, simply can mix
with management (Van Der Merwe, 2003). Those Sales to wholesalers,
retailers and consumers have a routine, to sell the place, and this seller are
"Order takers" and generally less aggressive new company. Personal selling
18
as a costly product of low unit value requires a premium to revenue
generating products. Personal selling is not considered to be a respected
profession in most countries. Is taught often in business schools or
vocational schools rather than universities, and thus the quality of sales
outside the United States is anything but exemplary.

In Brazil, for example, sellers are not very good by American

standards (Anand, Davar, Dhingra & Dhingra, 2010). Intercultural
Negotiation: Successful negotiations require an understanding of the culture
of each party and may also adopt a negotiating strategy, representing the
other portion of the cultural system. A strategy is dependent on stereotypes.
It is possible, for example using Prejudices stereotyped to identify the
negotiator personality of country or different ethnic groups. Although
stereotypes just label, it is also risky because the generalization can drive,
think to do, that members of the group must assume the same trains. These
prejudices affect trade negotiations on their results, (Kristen, 2006).
International marketing are the effects of cultural adaptation on intercultural
communication. Should be performed to determine the conditions which it
desirable as merchants their behavior in response to the cultural of adaptation
to make the other party

Motivation

Seller must be motivated than other employees. In many Western countries

the dependency to retain and motivate the best sellers finds it. The concept of
personal recognition of vendor is counter to the approach of the team of the
Japan for businesses and his aversion to a compensation system, which has
paid for performance. In Saudi Arabia, where the sales allowance is
considered to be undesirable, representatives of local trade qualified are
difficult to find missing work. Because the India various languages and

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).

PROCESS OF PERSONAL SELLING

To education for sale, training manuals, job descriptions, correspondence

training films written by the company, entry/debates, case studies, role
playing, and So on. Telemarketing

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)

21
 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.

22
 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.

25
 CHAPTER- V

DATA ANALYSIS AND INTERPRETATION

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

Frequenc Percent Valid Cumulative

y Percent Percent
Valid 19 19.2 19.2 19.2
No 8 8.1 8.1 27.3
Yes 72 72.7 72.7 100.0
Total 99 100.0 100.0

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

Frequen Valid Cumulativ

c y Percent Percent e 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

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

39
 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

Visits of Agents per week * Orders Placed Per Month

44
 Analysis Table

Orders Placed Per Month

1 2 3
Visits of Agents per 1 Observed 1 0 6
week
Expected .1 1.0 2.3
% within Orders Placed
100.0% .0% 30.0%
Per Month
2 Observed 0 1 14
Expected .4 3.8 8.5
% within Orders Placed
.0% 11.1% 70.0%
Per Month
3 Observed 0 8 0
Expected .5 4.2 9.3
% within Orders Placed
.0% 88.9% .0%
Per Month
Total Observed 1 9 20
Expected 1.0 9.0 20.0
% within Orders Placed
100.0% 100.0% 100.0%
Per Month

45
 Analysis Table

Orders Placed Per Month

4 5 6
Visits of Agents per 1 Observed 1 0 1
week
Expected 2.7 2.5 .3
% within Orders Placed
4.2% .0% 33.3%
Per Month
2 Observed 15 3 0
Expected 10.2 9.4 1.3
% within Orders Placed
62.5% 13.6% .0%
Per Month
3 Observed 8 19 2
Expected 11.1 10.2 1.4
% within Orders Placed
33.3% 86.4% 66.7%
Per Month
Total Observed 24 22 3
Expected 24.0 22.0 3.0
% within Orders Placed
100.0% 100.0% 100.0%
Per Month

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

Asymp. Sig. (2-

Value df
sided)
Pearson Chi-Square 56.420a 12 .000
Likelihood Ratio 64.482 12 .000
Linear-by-Linear Association 4.999 1 .025
N of Valid Cases 80
a. 15 cells (71.4%) have expected count less than 5. The minimum
expected count is .11.

48
 Analysis Table

Quantity in Single Purchase (

'000)
5 6 8
Visits of Agents per 1 Observed 6 0 0
week Expected 3.8 1.6 2.0
% within Quantity in
Single Purchase ( 17.6% .0% .0%
'000)
2 Observed 23 0 0
Expected 14.5 6.0 7.6
% within Quantity in
Single Purchase ( 67.6% .0% .0%
'000)
3 Observed 5 14 18
Expected 15.7 6.5 8.3
% within Quantity in
Single Purchase ( 14.7% 100.0% 100.0%
'000)
Total Observed 34 14 18
Expected 34.0 14.0 18.0
% within Quantity in
Single Purchase ( 100.0% 100.0% 100.0%
'000)

49
 Analysis Table

Quantity in Single Purchase (

'000)
25 30 40
Visits of Agents per 1 Observed 1 1 0
week
Expected .5 .9 .1
% within Quantity in
Single Purchase ( 25.0% 12.5% .0%
'000)
2 Observed 3 7 1
Expected 1.7 3.4 .4
% within Quantity in
Single Purchase ( 75.0% 87.5% 100.0%
'000)
3 Observed 0 0 0
Expected 1.9 3.7 .5
% within Quantity in
Single Purchase ( .0% .0% .0%
'000)
Total Observed 4 8 1
Expected 4.0 8.0 1.0
% within Quantity in
Single Purchase ( 100.0% 100.0% 100.0%
'000)

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

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 71.081a 12 .000
Likelihood Ratio 86.082 12 .000
Linear-by-Linear Association 8.850 1 .003
N of Valid Cases 80
a. 15 cells (71.4%) have expected count less than 5. The minimum expected count
is
.11.

Incentive * Orders Placed Per Month

52
 Analysis Table

Orders Placed Per Month

1 2 3
Incentive Cash Discounts Observed 0 0 8
Expected .1 1.1 2.5
% within Orders Placed
.0% .0% 40.0%
Per Month
Free Gifts Observed 0 8 0
Expected .2 1.6 3.5
% within Orders Placed
.0% 88.9% .0%
Per Month
Trade Discounts Observed 1 1 12
Expected .7 6.3 14.0
% within Orders Placed
100.0% 11.1% 60.0%
Per Month
Total Observed 1 9 20
Expected 1.0 9.0 20.0
% within Orders Placed
100.0% 100.0% 100.0%
Per Month

53
 Analysis Table

Orders Placed Per Month

4 5 6
Incentive Cash Discounts Observed 2 0 0
Expected 3.0 2.8 .4
% within Orders Placed
8.3% .0% .0%
Per Month
Free Gifts Observed 0 4 2
Expected 4.2 3.8 .5
% within Orders Placed
.0% 18.2% 66.7%
Per Month
Trade Discounts Observed 22 18 1
Expected 16.8 15.4 2.1
% within Orders Placed
91.7% 81.8% 33.3%
Per Month
Total Observed 24 22 3
Expected 24.0 22.0 3.0
% within Orders Placed
100.0% 100.0% 100.0%
Per Month

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

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 62.969a 12 .000
Likelihood Ratio 58.691 12 .000
N of Valid Cases 80
a. 17 cells (81.0%) have expected count less than 5. The minimum
expected count is .13.

Incentive * Quantity in Single Purchase ( '000)

56
 Analysis Table

Quantity in Single Purchase (

'000)
5 6 8
Incentive Cash Discounts Observed 10 0 0
Expected 4.3 1.8 2.3
% within Quantity in
29.4% .0% .0%
Single Purchase ( '000)
Free Gifts Observed 0 14 0
Expected 5.9 2.4 3.2
% within Quantity in
.0% 100.0% .0%
Single Purchase ( '000)
Trade Discounts Observed 24 0 18
Expected 23.8 9.8 12.6
% within Quantity in
70.6% .0% 100.0%
Single Purchase ( '000)
Total Observed 34 14 18
Expected 34.0 14.0 18.0
% within Quantity in
100.0% 100.0% 100.0%
Single Purchase ( '000)

57
 Analysis Table

Quantity in Single Purchase (

'000)
25 30 40
Incentive Cash Discounts Observed 0 0 0
Expected .5 1.0 .1
% within Quantity in
.0% .0% .0%
Single Purchase ( '000)
Free Gifts Observed 0 0 0
Expected .7 1.4 .2
% within Quantity in
.0% .0% .0%
Single Purchase ( '000)
Trade Discounts Observed 4 8 1
Expected 2.8 5.6 .7
% within Quantity in
100.0% 100.0% 100.0%
Single Purchase ( '000)
Total Observed 4 8 1
Expected 4.0 8.0 1.0
% within Quantity in
100.0% 100.0% 100.0%
Single Purchase ( '000)

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

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 93.445a 12 .000

Likelihood Ratio 89.145 12 .000
N of Valid Cases 80
a. 16 cells (76.2%) have expected count less than 5. The minimum expected count
is
.13.

60
 CHAPTER- VI

FINDINGS, SUGGESTIONS, RECOMMENDATIONS &

CONCLUSION

This report lists the various recommendations and suggestions

with respect to the findings and in congruence with the
objectives of the study.

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

Marketing Paramhans Fourth

Management Foundation
Edition, 1992

Research Methodology C.R.Kothari Second

Edition, 1993

Marketing Philip Kotler Twelth

Management
Edition, 1999

Fundamentals of D.N. Elhance Present

Statistics
Edition, 1992

64
REFRENCES

1) www.google.com

2) www.hulindia.com

3) www.bing.com

65