SRM UNIVERSITY A study on Sales Promotion Techniques with special reference to ‘Poonam Badam Milk Pvt. Ltd., Project Submitted SRM UNIVERSITY By Prabavathi.G Reg No 3511010503 In Partial Fulfillment of the Requirement for the award of the degree MASTER OF BUSINESS ADMINISTRATION DEPARTMENT OF BUSINESS ADMINSITRATION
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SRM UNIVERSITY
A study on Sales Promotion Techniques with special reference to ‘Poonam Badam Milk Pvt. Ltd.,
Project Submitted SRM UNIVERSITY
By
Prabavathi.GReg No 3511010503
In Partial Fulfillment of theRequirement for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF BUSINESS ADMINSITRATIONSRM UNIVERSITY
KATTANGULATHUR,KANCHEEPURAM DISTRICT,
CHENNAI.
BONAFIDE CERTIFICATE
This is to certify that the entitled “A STUDY ON SALES PROMOTION
TECHNIQUES WITH SPECIAL REFERENCE TO ‘POONAM BADAM
MILK PVT. LTD., submitted for the degree of Master of Business
Administration by Prabavathi.G, is the record of the research work carried out by
her, during the period Of April 2012 under my guidance and supervision and this
work has not formed the basis for the award of any Degree, diploma, Associate
ship, fellowship or any other title in this University or any other University or
Institution of higher learning.
Submitted for the viva-voce examination held on ---------------------
………………. ……………….
S.CHANDRAN Dr.JAYASHREE SURESH
(project Guide) ( Dean, MBA)
………………..
(External Examiner)
DECLARATION
I declare that the dissertation entitled “A STUDY ON SALES PROMOTION
TECHNIQUES WITH SPECIAL REFERENCE TO ‘POONAM BADAM
MILK PVT. LTD., submitted by me for the Degree of Master of Business
Administration, is the record of research work carried out by me during the period
from April 2012 under the guidance and supervision of Mrs. S..CHANDRAN ,
Asst Prof, Department of Business Administration, S.R.M School of
Management, SRM University Chennai and that this work has not formed the
basis for the award of any degree, diploma, associate ship, fellowship or any other
title in this university or any other university or Institution of higher learning.
Place:Kattankulathru Signature of the Student
Date: (G.Prabavathi)
ACKNOWLEDGEMENT
I convey my sincere gratitude to my guide Mrs. G.Chandran,
Department of Business Administration, S.R.M College, Chennai
S..CHANDRAN for his excellent guidance, support and encouragement
throughout the period of study.
I Thank to S..CHANDRAN for hisr support to carry out my studies in this
institution.
I owe my thanks to all the staff member of the Business Adminsitration
Department, S.R.M College for their constant hope and encouragement.
I Thank my family members, for their support extended throughout my study.
TABLE OF CONTENTS
CHAPTER
CONTENT
PAGE
NO
INTRODUCTION
ABOUT THE COMPANY
INDUSTRY PROFILE
ABOUT THE COMPANY
HR PRACTCES BY THE COMPANY
CONSUMER SALES PROMOTIN&
METHODS OF PROMOTIONFINDINGS
SUGGESTIONS
CONCLUSION
Introduction
IMPORT:
In a time when customers are exposed daily to a nearly infinite amount of
promotional messages, many marketers are discovering that advertising alone is
not enough to move members of a target market to take action, such as getting
them to try a new product. Instead, marketers have learned that to meet their goals
they must use additional promotional methods in conjunction with advertising.
Other marketers have found that certain characteristics of their target
market (e.g., small but geographically dispersed) or characteristics of their
product (e.g., highly complex) make advertising a less attractive option. For these
marketers better results may be obtained using other promotional approaches and
may lead to directing all their promotional spending to non-advertising
promotions.
Finally, the high cost of advertising may drive many to seek alternative,
lower cost promotional techniques to meet their promotion goals.sales promotion.
Sales promotions are used widely in many industries and especially by marketers
selling to consumers. We will see that the objectives of sales promotion are quite
different than advertising and are specifically designed to encourage customer
response.Sales promotion describes promotional methods using special short-term
techniques to persuade members of a target market to respond or undertake
certain activity. As a reward, marketers offer something of value to those
responding generally in the form of lower cost of ownership for a purchased
product (e.g., lower purchase price, money back) or the inclusion of additional
value-added material (e.g., something more for the same price).
Sales promotions are often confused with advertising. For instance, a
television advertisement mentioning a contest awarding winners with a free trip to
a Caribbean island may give the contest the appearance of advertising. While the
delivery of the marketer’s message through television media is certainly labeled
as advertising, what is contained in the message, namely the contest, is considered
a sales promotion. The factors that distinguish between the two promotional
approaches are:
1. whether the promotion involves a short-term value proposition (e.g., the
contest is only offered for a limited period of time), and
2. the customer must perform some activity in order to be eligible to receive
the value proposition (e.g., customer must enter contest).
The inclusion of a timing constraint and an activity requirement are
hallmarks of sales promotion.
Sales promotions are used by a wide range of organizations in both the consumer
and business markets, though the frequency and spending levels are much greater
for consumer products marketers. One estimate by the Promotion Marketing
Association suggests that in the US alone spending on sales promotion exceeds
that of advertising.
Objectives of Sales Promotion
Sales promotion is a tool used to achieve most of the five major promotional
objectives discussed in the Promotion Decisions tutorial:
Building Product Awareness – Several sales promotion techniques are
highly effective in exposing customers to products for the first time and
can serve as key promotional components in the early stages of new
product introduction. Additionally, as part of the effort to build product
awareness, several sales promotion techniques possess the added
advantage of capturing customer information at the time of exposure to
the promotion. In this way sales promotion can act as an effective
customer information gathering tool (i.e., sales lead generation), which
can then be used as part of follow-up marketing efforts.
Creating Interest – Marketers find that sales promotions are very effective
in creating interest in a product. In fact, creating interest is often
considered the most important use of sales promotion. In the retail
industry an appealing sales promotions can significantly increase
customer traffic to retail outlets. Internet marketers can use similar
approaches to bolster the number of website visitors. Another important
way to create interest is to move customers to experience a product.
Several sales promotion techniques offer the opportunity for customers
to try products for free or at low cost.
Providing Information – Generally sales promotion techniques are
designed to move customers to some action and are rarely simply
informational in nature. However, some sales promotions do offer
customers access to product information. For instance, a promotion may
allow customers to try a fee-based online service for free for several
days. This free access may include receiving product information via
email.
Stimulating Demand – Next to building initial product awareness, the
most important use of sales promotion is to build demand by convincing
customers to make a purchase. Special promotions, especially those that
lower the cost of ownership to the customer (e.g., price reduction), can
be employed to stimulate sales.
Reinforcing the Brand – Once customers have made a purchase sales
promotion can be used to both encourage additional purchasing and also
as a reward for purchase loyalty (see loyalty programs below). Many
companies, including airlines and retail stores, reward good or
“preferred” customers with special promotions, such as email “special
deals” and surprise price reductions at the cash register.
Classification of Sales Promotion
Sales promotion can be classified based on the primary target audience to whom
the promotion is directed. These include:
Consumer Market Directed - Possibly the most well-known methods of
sales promotion are those intended to appeal to the final consumer.
Consumers are exposed to sales promotions nearly everyday, and as
discussed later, many buyers are conditioned to look for sales promotions
prior to making purchase decisions.
Trade Market Directed – Marketers use sales promotions to target all
customers including partners within their channel of distribution. Trade
promotions are initially used to entice channel members to carry a
marketer’s products and, once products are stocked, marketers utilize
promotions to strengthen the channel relationship.
Business-to-Business Market Directed – A small, but important, sub-set of
sales promotions are targeted to the business-to-business market. While
these promotions may not carry the glamour associated with consumer or
trade promotions, B-to-B promotions are used in many industries.
Sales Promotion Trends: Customers Expectations
Marketers who employ sales promotion as a key component in their
promotional strategy should be aware of how the climate for these types of
promotions is changing. For instance, the onslaught of sales promotion activity
over the last several decades has eroded the value of the short-term requirement to
act on sales promotions. Many customers are conditioned to expect a promotion at
the time of purchase otherwise they may withhold or even alter their purchase if a
promotion is not present. For instance, food shoppers are inundated on a weekly
basis with such a wide variety of sales promotions that their loyalty to certain
products has been replaced by their loyalty to current value items (i.e., products
with a sales promotion). For marketers the challenge is to balance the advantages
short-term promotions offer versus the potential to erode loyalty to the product.
Sales Promotion Trends: Internet Communication
For many years consumers typically became aware of sales promotions in
passive ways. That is, most customers obtained promotions not through an active
search but by being a recipient of a marketer’s promotion activity (e.g., received
coupons in the mail). The Internet is changing how customers obtain promotions.
In addition to websites that offer access to coupons, there are a large number of
community forum sites where members share details about how to obtain good
deals which often include information on how or where to find a sales promotion.
Monitoring these sites may offer marketers insight into how customers feel about
certain promotions and may even suggest ideas for future sales promotions.
Objectives of the study
Primary objective
To study the effective training and sales promotion program
conducted in Poonam Badam Milk Pvt. Ltd
Secondary objectives
To study whether training enhances the skills of the employees.
To study the H.R functions been carried out by the organisation
To determine the developmental task of the individual through
training.
To find out the satisfactory level of employees on training and
development programs being conducted at Poonam Badam
MilkPvt. Ltd
The direct interview schedule has not be followed due to
employees engagement in work.
Since the sample size is small it cannot be considered as true
representation of the whole population.
Time of financial constraints has also been a limitation for the
study.
SCOPE OF THE STUDY
The survey has been confined to the employees in different levels..
The study covers introduction to the Sales training program and various
type of Sales training programs which Poonam Badam Milk provide to
its employee
The results of this study will be useful to the organization in designing
effective Sales promotions and training programmers by considering
the employee interest.
INDUSTRY
PROFILE
INDUSTRY PROFILE:
Soft drink production
Soft drinks are made by mixing dry ingredients and/or fresh ingredients
(for example, lemons, oranges, etc.) with water. Production of soft drinks can be
done at factories or at home.
Soft drinks can be made at home by mixing either a syrup or dry
ingredients with carbonated water. Carbonated water is made using a home
carbonation system or by dropping dry ice into water. Syrups are commercially
sold by companies such as Soda-Club.
Drinks like ginger ale and root beer are often brewed using yeast to cause
carbonation.
Ingredient quality
Of most importance is that the ingredient meets the agreed specification
on all major parameters. This is not only the functional parameter (in other words,
the level of the major constituent), but the level of impurities, the microbiological
status, and physical parameters such as color, particle size, etc.[10]
Potential alcohol content
A report in October 2006 demonstrated that some soft drinks contain
measurable amounts of alcohol. In some older preparations, this resulted from
natural fermentation used to build the carbonation. In the United States, soft
drinks (as well as other beverages such as non-alcoholic beer) are allowed by law
to contain up to 0.5% alcohol by volume. Modern drinks introduce carbon dioxide