A

SUMMER TRAINING PROJECT REPORT

ON

CARRIED OUT AT LAKSHMI PRECISION SCREW LTD.

AT ROHTAK.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF

Submitted by: Sumit Sindhu MBA 5yr(5th sem.) Roll No. 11 INSTITUTE OF MANAGEMENT STUDIES
KURUSHETRA UNIVERSITY KURUSHETRA

DECLARATION
I SUMIT SINDHU Roll No.11Class MBA-Vth SEM of the KURUSHETRA UNIVERSITY KURUSHETRA, hereby declare that the Summer Training Report entitled Analysis Of Promotion Policy is an original work and the same has not been submitted to any other institute for the award of any other degree. A seminar presentation of the Training Report was made on ___________________and the suggestion as approved by the faculty were duly incorporated

Signature of the Candidate

Acknowledgement
There is always a sense of gratitude which are express to other for the selfless services they render during all phase of life. I have completed this project with the help of different personalities. I feel obliged to all of them. I feel acknowledgement my indebtedness and deep sense of gratitude to my expert guide Mr. GULSHAN AHUJA (MARKET EXECUTIVE, LAKSHMI PRECISION SCREW LIMITED, ROHTAK) without their guidance and encouraging attitude it would have not possible for me to complete this project. I also feel indebtedness to the staff of LAKSHMI PRECISION SCREWS LIMITED, ROHTAK.

Sumit sindhu

PREFACE
-

We cannot achieve anything worthwhile in any field of knowledge on the of the basis of theoretical knowledge from books in order to achieve positive and concrete results, the class room learning need to be effectively wedded to the situation existing outside the class room. This is particularly true for `Management`. To develop healthy skills in Management, it is necessary that the theoretical knowledge must be supplemented with the real practical environment actually; it is the implementation of theory in practice training that the mean of `programming` itself is realized. I assign the Lakshmi Precision Screws Ltd., Rohtak for the summer training which constitutes an integral of the five years Master Degree in Management in KUK. This training is undergone after the completion of the Vth sem of the course. I got my training at LPS Ltd. During the four weeks of my training, I had the opportunity of getting practical insight into the business world, which enabled me to supplement my theoretical knowledge of the working capital management which the practical working in one of leading organizations.

Sumit

Table of Contents
Particulars 1. 2. 3. 4. 5. 5. 6 7, 8. 9. 10. 11. Company Profile Objective of Study History of company Production and sale of company objective of study Introduction about the Project Research methodlogy Finding Recommendations & Suggestions Limitations Conclusion Bibliography Page No. 6 8 9 11 14 17 22 23 24 25 26 27

Introduction About Company

Lakshmi Precision Screws Ltd. Is a symbol of technical perfection? A leading fastener manufacturer in this part of the country, LPS is the largest exporter of fasteners from this country. It has the most modern manufacturing facilities with the latest in automatic and semi-automatic machinery. A fully aumatic plating and phosphate plant together with heat treatment in dust free atmospheric condition helps in achieving de-crab free produce with

homogeneous grain structure. LPS group of companies started in 1968 and subsequently started its activities in 1972. Lakshmi Precision Screws was converted into a public limited company in 1971. Initially manufacturing high tensile fasteners, its product range

has increased steadily to cater to different industrial sectors including automobiles, machine tools, refrigeration, textile machinery etc, for the export and domestic markets. The company is one of the leading exporters of industrial fasteners in India. It has been awarded the certificate of export excellence by the Engineering Export Promotion Council twice in succession in 1992-93 and 199394, in recognition of its export performance. The quality products of the company are not only patronized by customers in but also abroad. About 30% products are exported to USA, Europe, Japan and other South East Asian Countries. The company has a team of technically qualified and experienced professionals in the field of manufacturing, quality management, marketing, finance, materials, personnel and

administration. LPS has been certified with the coveted ISO-9002 certification by Bureau Of Indian Standards. Also, the company has now received QS-9000 certification. The company is conforming to the international standards in all endeavors. The company has entered into a joint venture agreement with the Bossard International Switzerland for development of software and

marketing/distribution of new range of fasteners for niche market of electrical and electronics etc. In 2001-02 the company was awarded the Golden Peacock Environment Management award which was given by WEF.

Objective of LPS

The main objective of LPS is to provide customer satisfaction or we can say that making things according to customer demands.

The Other main Objective of the Company are:

1. 2. 3. 4. 5. 6. 7. 8. To Position himself in the Market To Increase productivity To Innovate new things To double the export and bring foreign currency To get maximum profits To Increase the performance of employees To Development technical and administrative skills. Optimum utilization of human on Resources.

HISTORY OF L.P.S

1972Established

Lakshmi

Precision

Screws

Pvt

Ltd

as

Socket

Head Screws Manufacturer. 1973 Bergner. 1977 1980 1983 1986 1989 Acknowledge quality source of fastener. Technical tie-up with M/s Richard Bergner expires. Secured self-certification status from FORD. Declared Public Limited Company. Secured self-certification status from M/s Lakshmi Machine Technical tie-up with the German firm M/s Richard

1992 1994

Established as manufacturer-exporter. Received Regional Export Award from Engineering Export promotion Council, (EEPC) India. .

1996

Received Regional Export Award from EEPC for the second Consecutive year.

1999

Established Plant-II

2000

Received Employment Generation Award from Director of Industries, Haryana State.

2002 & Testing. 2004

Testing by National Accreditation Board for Calibration

Installed Bolt Maker (AF 2525) to add production Capacity to 12200 MT.

2006Self certification status from TELCO.

2008
2010

Golden peacock Award.

Environment award

Outline of the Company

1) Name of the Company 2) Founded on 3) Head Office & Factory : : : LAKSHMI PRECISION SCREWS LTD. March 10, 1972 46/1, Mile Stone Rohtak-124001 Haryana (INDIA) Lalit Kumar Jain 978 Mill. INR (March-2004) ($21 Million) 1123 Mill. INR (March-2004) ($24 Million

4) Chairman & Managing Director : 5) Total Assets 6) Annual Sales : :

PRODUCTION AND SALES OF THE COMPANY

YEAR 92-94 94-96 96-98 98-00 00-02 O2-04 04-06 06-08 08-10

PRODUCTION (in tones) 3016 3556 4897 6529 6385 5753 5607 6556 6165

SALES IN MILLIONS 309 404 552 735 696 684 706 816 834

VARIOUS DEPARTMENT OF THE COMPANY

Marketing Department Accounts Department Sales Department Export Department Production Department Purchase Department Personnel and Administration Department Manufacturing Department

Quality ontrol Department Standard Room Tool Room

PRODUCTS LIST
1. A. BOLT & NUTS FOR AUTOMOBILES Engine Parts: Con Rod Cylinder Studs Counter Weights Cylinder head Rocker Arm Engine Mounting Main Bearing etc. B. Chasis Parts: Wheel Bolts Wheel Hub Bolts & Nuts Axle Bolts/Pin Flanged Bolts Collar Bolt

OBJECTIVE OF STUDY

1. To innovate new things. 2. To know what is the future prospect of LPS. 3. To know the level of customer satisfaction in Respect to Quality, price, packing, delivery of products. 4. To know the position of LPS in market with respect other companies. -

LPS Marketing A Brief Outline

Introduction:Marketing is the human activity directed at satisfying needs and wants through the exchange process. Marketing is the process through which procedure and customers o various goods are brought together in a exchange relations and the transfer of ownership takes place. Marketing process starts even before the goods go in production. It does not end with the sale but continuous with the satisfaction of consumer is obtained.

Sales Procedure:To carry out selling function, it is important to have a qualified and experienced sales force with a leader who can plan, Organize, direct and control the selling job objectively. The salesman is an extremely important link in the chain of distribution. It is sometimes said that the salesmanship is the other name of persuasion. The organization sells its product to low types of target market. These are:(1) Selling to original equipment manufactures i.e. Industrial Consumers. (2) Selling to open market or market selling. (3) The company has established its various sales representatives in various parts in India; mainly in industrial development cities of India

like Chennai, Bangalore, Coimbatore, and Kanpur etc. Their main test is to find out new market or customers for their product. The overall functions of representative are :-To bring offers. - Making contracts - Report and figure work - Market feedback

Marketing Mix Strategy:Marketing Mix is one of the major concepts in modern marketing. It can be defined, as marketing mix is the particular blend of contractible marketing variables that the firm used to achieve its objectives in the target market. Now the question arises what variables make up a company marketing mix. There are actually a great number of marketing variables. Fortunately they can be classified into a few major groups one of the popular classifications has been proposed by Mc McCarthy and is called 4Ps - Product - Price - Place - Promotion

Promotion Policy
Introduction:
Promotion includes all those activities which are aimed at creating or stimulating demand. It has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion to facilitate the sale of good or service, or acceptance of an idea. Thus promotion is marketing activity which is aimed at informing, and inducing the customer to buy the goods or services. The role of promotion is a marketing mix is very important.

Promotion plays a very important role in marketing mix. In marketing mix firstly we decide the corporate objectives and in second step we decide the marketing objectives, in third step we make marketing strategy, and in fourth step we do all promotion activity as advertising, sales promotion, personal selling etc. After the promotion activity customer know about the product and the customer purchase the product. In this time the five major tools are present, these are called as promotion mix. These are advertising, personal selling, sales promotion, publicity and public relations. Each of these promotion tools has its own characteristics.

1.

Advertising is a unilateral and paid form of non-personal mass

communication by a clearly identified sponsor. Usually it is designed to create a favorable attitude toward the company or product. LPS do the advertisement in only business magazine and they do personal selling also. They do not give advertising on television because company products are not useful for the every person. 2. Sales promotion includes all short term incentives, generally organized on a temporary and or local basis, and designed to stimulate immediate purchase and to move sales forward more rapidly than would otherwise occur, and to effect higher demand. LPS do sales promotion by giving discount in many ways by cash discount, bulk discount and by giving gifts in the form of monetary and non-monetary.

3.

Personal selling has the objectives of organizing a verbal potential with

customers and to deliver a tailor made message with the short term objectives of

making a sale. LPS

do personal selling, by this way the company can

know about the needs of customers so that they can develop product that can fulfill customer needs and increase in selling their product and profit.

4.

Publicity, like advertising, is an impersonal method of promotion and it

is also addressed to groups of audience. It differs from advertising in the sense that the seller does not sponsor it. It is the coverage of commercially significant information regarding the company or its products. These are five major tools of promotion. In Lakshmi Precision Screws Ltd., they use mainly advertising, personal selling. And they do advertising not on routine basis they choose that way the industry people should aware about their product.

Factors affecting promotion policy

The factors that guide a marketer decision in selecting a promotion policy are:

1.

Nature of the product: Promotion policy depends on the nature

of the product. For example, industrial goods need a different kind of promotion than consumer goods. Industrial goods particularly plant, machinery and other expensive installations need a heavy emphasis on personal selling. Advertising and direct mail may perform the international -

role. The buyer wants to know detailed specifications and uses of the product as well as demonstration of the product which requires a salesman to do it. In LPS they use advertising and personal selling. And they do advertising according to their product they do advertising in magazines which are related to the business. Or we can say related to the industry.

2. Nature of the market : Market characteristic exercise an important

influence in the design of promotion policy. A firm operating in a small local market generally prefers to concentrate heavily on personal selling. on the other hand a firm dealing in goods having regional or national market, has to depend more on advertising. Another market characteristic influencing the promotion policy decision in the density of customers. Concentration of one or a few types of customers in a market area requires for a market where a variety of customer groups are found.

3. Overall marketing strategy: Market strategy affects the promotion policy. For example, whether the firm wishes to push the product or create pull for the product. The push refers to selling the product aggressively to the marketing network. In the strategy the emphasis is on personal selling and trade promotion. But in the pull strategy the firm creates consumer demand for its product or brand such that the customer demands the brand at the retail outlet. Advertising and consumer promotion go a long way in creating the desired pull the brand.

4. Buyer readiness stage : The choice of different elements of promotion is also depend on buyer readiness and awareness of the brand. Depending on where the buyer is in the hierarchy of response models, promotion policy can be assembled. Like advertising will play a major role in creating awareness, demonstration and will help bring about a change at the affective and behavioral levels while personal selling.

5. Product life cycle stage : PLC will also play a role in deciding on
the promotion policy. For example, in the introduction stage, advertising and publicity have a significant role and prove to be cost affective in creating awareness, desire and finally the trial. Even samples play a key promotional role in industrial products. But in the maturity stage, sales promotion and personal selling help make the product steer through the competition maze. Thus it is important to know where the product is in its life cycle.

Research Methodology Used

Following is the summary of the methodology used for research: Research Design Data Source Data Collection Method Sample Size Area Covered - Descriptive - Primary - Questionnaire enquiries

- North India

Findings
The findings of this study are:
LPS is on 3rd position in the Fastners Market. The Quality of LPSs product is good. The most competitor company of the LPSs is Sundaram Fasteners Ltd. Sales promotion activities of LPS like advertisement etc. are not so good. Price Range of LPSs Product can complete competitor like Sundaram Fasteners Limited. The Company has been able to attract new customers.

Recommendations & Suggestions

(1) (2) (3) (4) Timely distribution of incentive should be made Company should go for E-commerce due to globalization. Frequent official visits should be encouraged. Company should be emphasis on advertisement and promotion

scheme specially in print media and business magazine. (5) (6) Company should provide more gift scheme to the dealer. Company have to offer Bulk Discount & Cr Facility in

order to remain competent. (7) Company should stress on Zero-Defect Concept.

The limitations of this study are as follows: (1) (2) (3) Sample size was small therefore chance of error is high. Some time no cooperation of respondent. It may be possible that all respondent did not provide absolutely correct information. (4) Sampling may not present the exact picture of market. It is just representative of population. In the light of all above limitations, I have tried my best to find out real information from the respondent in a honest manner.

On the basis of above explanation, I draw conclusion that promotion policy of LPS is trustworthy and profitable & the sale of the company has enhanced to a great extent. The company has been able to attract new

customers. In spite of all these things, I believe that all the promotion policy is important for the company. The company always do promotion program but not so much that they can attract new customer in large number. The company should stress on promotion policy to aware and attract the new customers.

 Kotler, Philip, Marketing Management, New Delhi, Prentice Hall of India Pvt. Ltd.

From Company record

Website: www.1psindia.com Website: www.google.com