Project Report

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A

PROJECT REPORT

ON

SALES PROMOTION ACTIVITY ON MOTHER DAIRY

BYSantosh Sathe

[08 OSB 351]

MASTER OF BUSINESS ADMINISTRATION

Omegan School of Business, Omegan School of Business,Branch- Pune.Branch- Pune.2008 – 2010.2008 – 2010.

OMEGAN SCHOOL OF BUSINESS, PUNE

A

PROJECT REPORT

ON

SALES PROMOTION ACTIVITY ON MOTHER DAIRY

BYSantosh Sathe

[08 OSB 351]

FACULTY GUIDE

PROF.SHANTANU PRASAD

A Report submitted in partial fulfillment of

The requirements of

MBA Program

Session [2008-2010]

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DECLARATION

I am Santosh Sathe of MBA, (Second semester) from Omegan School of Business, Pune, Hereby declare that this project work entitled “Sales Promotion Activity at MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD. Pune, Maharashtra carried out for 60 days.

To the best of my knowledge & belief, it is an original piece of work and is the sheer outcome of my own efforts under the vigilant guidance of my guides has not either in full or in part has been submitted to any other institution for the award of any other course.

Santosh Sathe

Omegan School of Business,

Pune- Maharashtra

Date:-

3


CERTIFICATE

This is to certify that, the project entitled “Sales Promotion

Activity” at MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD

which is being submitted by Mr. Santosh Sathe in the partial

fulfillment of the course MASTER OF BUSINESS

ADMINISTRATION submitted to Omegan School Of Business,

affiliated to ICFAI University, Tripura has satisfactorily

completed the research work under our guidance and

supervision.

Mr. Shantanu Prasad Mr. Sunil

Lalla

[Faculty Guide]

[Principal]

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Mr. Deepak Mahadik. [Company Guide]

Acknowledgement

I would like to express my gratitude to all those who gave me the possibility to complete this project. I want to thank OMEGAN pune Center for giving me permission to commence this project in the first instance, to do the necessary research work and to use available data.

I am grateful to Mr. Sunil Lalla (Principal of Omegan School of Business, Pune) And Mr. DEEPAK MAHADIK (Product sale Manager) MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD. Pune, under guidance I have completed this final report. I have no words to acknowledge the valuable time & support that I received from them during project work.

I am deeply indebted to PROF.SHANTANU PRASAD of faculty in-charge of Marketing Management and other people who helped, stimulating suggestions and encouragement helped us in all the time of research for and writing of this report.

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Table of Content

6

Sr.no Index Pg.No

Cover

Title of project

Certificate

Acknowledgement

Abstract

1

1.1

Introduction

Objectives, Scope And Limitation

8

14

2

2.1

2.2

Main Text

Theoretical Concept

Data Collection

16

18

23

3 Conclusion 25

4 Finding & Suggestion 26

5

5.1

5.2

Appendices

Questionnaire

Data Analysis

28

28

30

6 Reference 40


Abstract

As a part of my MBA curriculum I am doing my internship training at MOTHER DAIRY FOOD AND VEGETABLES PVT LTD., PUNE.

In this report I am going to share my ideas & work in that company for the period of 60 days from 21.04.2009 to 21.06.2009. During my internship my role was “Management Trainee – in Marketing & Sales marketing”.

I was supposed to boost the sales of one of the average performing. Product of company like, milk and milk related products. As a part of this internship I had identified some problems and provided some recommendations to the company about the idea of marketing & also about the personal selling.

Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board, has recently introduced three variants in the fresh milk category across Pune market. Apart from this, Mother Dairy also sells Cow milk in Pune. Initially, the milk will be supplied to the city from Mother Dairy`s Vashi unit in Navi Mumbai and once volume picks up and cross a 50,000-60,000 liter mark, it plans to have a unit in Pune.

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My work in that organization mainly consists of to meet the retailers and sell the product (Milk). Collect the data of existing competitor e.g. asking retailer what product he is selling reasons to sell those products. To help in increase sale ratio of company. Tell the advantages of our product and what are the benefits of retailer and customer will get.

CHAPTER NO.1

INTRODUCTION

Mother dairy one of the largest liquid milk plant in Asia it started it operation in 1974 under the operation flood program of the National Dairy Development Board.

Presently mother dairy sale more than 25 lakh liter of milk per day out of which approximately 9 lakh liters of milk it sold as bulk vended milk and other 16 lakh liter of milk is sold in sachets in five different across six states including Mumbai. Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board, has recently introduced three variants in the fresh milk category across Pune market.

The variants launched include Full Cream milk, Tea Special and Cow milk. According to Paul Thachil, CEO, dairy & foods, Mother Dairy Fruit and Vegetable Pvt. Ltd, Full Cream milk is the thickest, creamiest and tastiest milk available to the consumers in Pune. This milk is ideal for families with children. Tea Special is formulated to give consumers an extremely tasty and special cup of tea.

Apart from this, Mother Dairy also sells Cow milk in Pune. Initially, the milk will be supplied to the city from Mother Dairy`s Vashi unit in Navi Mumbai and once volume picks up and cross a

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50,000-60,000 litter mark, it plans to have a unit in Pune.

The company has organized a special consumer trial programme Creamier milk challenge in the case of Full Cream milk. In this programme, consumers can avail Full Cream milk for 30 days by paying for only 25 days.

AWARDS

Mother Dairy has received "Best Productivity Performance" award for three consecutive years starting from 1987-88 to 1989-90 and again from 1995-96 to 1997-1998 from National productivity Council and a commendation Certificate for Rajiv Gandhi National Quality Award, National Energy Conservation Award - 2004, Oil and Gas Conservation Award - 2004 and 2005, Indian Innovation Award - 2004 and Safety Initiative Award - 2005.

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PROCESSING OF MILK

At mother dairy processing of milk is done through state of the art microprocessor technology which integrates and completely automates all function of milk processing and insure high product quality, reliability and safety

The Various stages of milk processing are given below:

CLARIFICATION

The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier spines the milk at very high speed, removing all dust particles that are invisible to the naked eye.

STANDERDISATION

Milk from different breeds of cow and buffalos varies in its composition. Hence, to make milk uniform in composition it is standardized by raising or lowering its fat and

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SNF percentage to a desired level, so as to deliver the milk to consumer as per prescribed PFA norms.

HOMOGENIZATION

In this process, the milk is subjected to very high pressure due to which the large fat globules present in milk are broken down in to tiny droplets. The Milk fat gets evenly distributed and milk appears whiter and thicker. Milk homogenized for consumer who do not like creamy lair on top. Homogenization increases the profitability of milk.

PASTEURIZATION

In this process the milk is heated at 72c for 15 seconds and then it is rapidly cooled down to 4c. This process skill all the pathogenic bacteria present in the milk and it is safe for consumption.

ADDITION OF NEW PRODUCT

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In 1994 Mother dairy began diversifying into other value added milk Product Mother dairy offers a range of delicious flavors of ice-creams to consumers at very competitive price in order to cater to the diversified need of the consumers Mother dairy has also launched other dairy products like flavored milk dahi Lassi,MishtiDoim Ghe,Cheese Dairy Whitener Chach etc.and many more are in the offing.

MOTHER DAIRY LAUNCHES FRESH MILK IN PUNE

Mother dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, sauashtra and Hyderabad mother dairy milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through aroung 14,000 retail outlets and 845 exclusive outlets of mother dairy.

Mother Dairy, the Indian foods and Beverage Company launched its offering in the fresh milk category today in Pune. The company announced three variants in the fresh milk category--full cream milk, tea special milk and cow milk which will be available in the retail market Sunday, 22 February onwards.

Milk will be supplied to Pune from its existing Vashi unit in Navi Mumbai and once volumes pick up and cross a 50,000 to 60, 000 liter mark it plans to have a unit in Pune. Alternatively, the company may tie up with some existing entity for packaging and other needs to supply to the Pune market. The 'tea special' milk variation is expected to give the company a first mover advantage in this particular segment which is priced at Rs 22 per liter which is the same as cow milk. Whereas the full cream milk

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with a 6.8 per cent fat content vis-à-vis 6.6 per cent in competitive brands will be sold at a rate of Rs 28 for a liter.

"The tea special variant exists in places like Saurashtra for bulk sale purposes but we are introducing this for the first time as a product for end-consumers. Our market study shows that there is a high tea drinking population. I think we are the third or the fourth largest foods company in India and by the year-end of 2008-2009 we should close our turn over at approximately Rs 3300 crore. Our daily production of milk is close to 2.6 million liters right now," said Paul Thachil, CEO, dairy and foods, Mother Dairy Fruit & Vegetable Private Ltd.

Mother Dairy sells its horticulture brands under the name Safal and vegetable oil related products under Dhara. It has around 800 owned outlets for milk in Delhi. The vegetable and fruit outlets too exist in Delhi, which are 400 in number while Jaipur has 25, and Bangalore has 20 of them. After Pune, the company is eyeing Nagpur for further expansion before the end of this calendar year. Their current market share in fresh milk is close to 10 per cent.

Mother Dairy is a wholly owned subsidiary of the National Dairy Development Board.

Mother dairy has taken up the concept of Total Productive Maintenance (TPM) whole heartedly. The number of employees involved in KAIZENS and the no. of KAIZENS per employee are very encouraging. Mother Dairy is a member of CII-TPM Club and the KAIZENS done by Mother Dairy employees have been selected and presented in 2nd, 3rd, 4th, 5th and 6th National Kaizen Conferences held from time to time during the last three years. Our TPM efforts have resulted in increase in MTBF and decrease in MTTR, quality improvement, Cost reduction and reduction in accidents.

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1.1 OBJECTIVE, SCOPE AND LIMITATION

OBJECTIVE

1. To study the impact of sales promotion activity on sale

2. To study the sales promotion programs on mother dairy.

3. To study the build and retain brand loyalty.

4 To study to introduce new product.

5. To study to attract new customer.

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SCOPE OF STUDY

This study helps to understand the sales promotion policies

used by mother Dairy for marketing of milk in market with the profitability.

The study will help the management of mother dairy in

forming the future policies regarding sales promotion strategy. Through retailer sample survey conducted information about current market situation. This study focuses on last two to three months.

Limitations

The biggest problem what I faced while completing my project was in sufficient time of retailer and customer. The time we needed to give the knowledge of our product to the customer and the actual time customer had.

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The second problem what I noticed in that company was limited scheme i.e. company offers very limited number of schemes and limited timing for scheme, where people are looking for more schemes.

Limited Area was one of the disadvantages that I had to complete the project. The area that I had was very small and restricted to some limits.

CHAPTER NO.2

MAIN TEXT

DIRECT SELLING PROCESS ADAPTED FOR CUSTOMERS

Prospecting for evaluating the potential customer-It is a process of finding and evaluating potential customer. I identified if the potential customer has the ability, willingness and authority to buy the product.

1) Generating leads- A sales lead can be in the form of an individual or an organization that might need or buy the company’s product.

2) Identifying organization- A prospect is a person In the organization that indicates need for a product

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Approach –

In this stage I made an initial contact with the potential customer and tried to find out his needs.

Presentation –

It is the most important stage in the sales process. The aim of my presentation is to attract the prospect’s attention, stimulate his interest and stir a desire for the product, so that he takes appropriate action. The main aim is to communicate the product’s benefits effectively to the prospect and convince him to purchase the product. I not only spoke about the benefits the customer is looking for, but also convinced him about the additional benefits of the product.

Handling Objections -

I clarified the doubts or objections that the customer had.

Closing –

In this stage I asked the potential customer to make the purchase.

Follow up –

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It was my last stage wherein I aimed to develop a long-term relationship with the customer.

2.1 THEORETICAL CONCEPT

Marketing

“The Process of planning and executing the conception, pricing promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goal.”

- American Marketing Association

Marketing management is analysis planning, implementation and control of programs designed to create, build, maintain mutually beneficial exchanged and relationship with target market for the purpose of achieving organizational goal.

-Philip Kotler

SALES PROMOTION

Sales Promotion refer to those activities (Other than advertising personal selling and publicity) which stimulate market demand for product through short term incentives which are

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essentially temporary and non recurring in nature sales promotion technique build bridge the product and the consumer.

As an activity taken out to boost the sales of a product it can include a host of activities like running advertising campaign, handling public relation activity, distribution of free sample, offering free gifts, conducting trade fairs, exhibitions and competitions, offering temporary price discounts, launching door to door selling and telemarketing.

OBJECTIVES OF SALES PROMOTION

The Main objective of sales promotion is to boost the sales of a product by creating demand, i.e. both consumers demand as well as trade demand. It improves the performance of the middle man and act as a supplement to advertising and personal selling.

The Sales promotion also helps in achieving the following purpose-

1) Encourage the customers to try a new product.

2) Attract new customers.

3) Encourage the customers to use the product or service and make them brand loyal.

4) Counter a competitor’s promotional activities.

5) Increase the sales during the slack period.

6) To improve the public image of the firm and the product.

7) To provide the knowledge about product

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METHOD OF SALES PROMOTION

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Point of Purchase:

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Method of Sales Promotion

Point of Purchase

Trade Show

Free Sample

Coupon

Bonus

Contest

Demonstration

Price cut Offer


Point of Purchase Consists of display & Demonstration of the Product at prominent place in local market, like Squash tea, Coffee, Soft Drinks etc.

Trade Show:

It Consists of Display & Demonstration of product in a stall in Exhibition organized by the manufacturers & traders Associations.

Free Sample :

This involves distribution of products/ services at free of Cost.

Coupons:

A coupon is a certificate which entitles its holder to a specified saving discount or gift on the purchase of a particular product.

Bonus:

A bonus is the offer of an article at no cost or at a very nominal price on the purchase of a specified product.

Price Cut offer:

Price Cut offer is an Offer to get the Product at Price lower than the Normal Selling Price

Contests:

Contest involve call for the consumer to submit an entry to be examined by a panel of judges who will select the best entries

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Demonstration:

It involves activities which enable the consumer to know how to make operational use of the product

2.2 DATA COLLECTION

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define as a scientific and systematic search for relevant information for specific topic. In fact, research is an art of scientific investigation.

The Advance Learner’s Dictionary of Current English lays

down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge.” Redman and Mory define research as a “systematized effort to gain new knowledge.”

Some people consider research as a movement, a movement from the know to the unknown. It is actually a voyage of discovery. We all process the vital instinct of inquisitiveness for, when the unknown comforts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown.

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SIGNIFICANCE OF RESEARCH “All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry, and inquiry leads to invention” is a famous Hudson Maxim in context of which the significance of research can well be understood. Increased amounts of research make progress. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization.

The role of research in several fields of applied economic, whether related to business or to the economic as a whole, has greatly increased in modern times.

The increasingly complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business.

Seven major steps in research process Determine the problem or opportunity.

Specify what information is needed.

Identify the source of information.

Decide the technique for acquiring the information.

Gather and process the information.

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Analyze and interpret the information.

Collecting the dataIn dealing with any real life problem it is often found that data

at hand are inadequate, and hence, it becomes necessary to collect data are appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher.

PRIMARY DATABy Interview :

This method implies the collection of information by interviewing, shopkeepers. The information obtained relates to what is currently happening and is not complicated by either the past behavior or future intentions or attitudes of respondents.

SECONDARY DATASecondary data was collected through magazines, Pam

palate, Book late and data from websites.

Sample Area:- The sample area selected for the project was mother dairy

Retail Store, Pimpari Chinchwad

Sample Space:- The total sample space for my questionnaire part was 50

Data Collected from the Manager at the Store: -

Competitors:-

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Chitale, Gokul, Katraj, Amul

CHAPTER NO.3

CONCLUSION

From this 60 days experience in a corporate, I got a good exposure about what really the corporate life is about. It’s waking along with targets and mind stresses every morning. The person who can manage these target and stress are shining in those fields.

I personally think that marketing is not everyone’s cup of tea but if one set his target high and continuously strive towards that, nothing is impossible. The only thing required in our field is the right attitude or a positive attitude towards attainingOne’s goal.

By going 60 days in to company I came to know various things about the organization, employees, customers, workers, and about the marketing field. Company is doing direct selling with the help of two managers. All the employees are also happy from last 35 from our company because company is providing lots of facilities to the employees, they had taken all the employees on the permanent basis in that time, but thing is that till this time they are not giving lay off, or early retrenchment in recession also. So we are getting good production i.e. product whatever & whenever we want it.

The other thing is that we reached to the customer expectation in regarding to the product quality, price, and timelineness of the order, so the clients of company are going to increase, the marketing dept performing good role with all the clients.

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I realized the deficiency of co –ordination, but the company is right now working on that problem, & I hope this problem will come under control in forthcoming days.

CHAPTER NO.4

FINDINGS

The findings of the project are as follows:

The data I have collected 80 % of the customer are agreed on the sales promotion strategies applied by mother dairy.

Sales promotion strategy levels of mother Dairy are better than other competitors in the market as per data collection.

Good quality is preferred than the price nowadays, that’s what people are choosing mother dairy now days without caring prices.

Many players have entered into this industry so options widens for the customers. Hence brand loyalty is affected.

The availability of the milk products also affects the market for e.g. milk powder.

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SUGGESTION

1. The time difference is more between product promotion and launching the product in the market than the estimated time.

2. The number of schemes related to the product are more to the distributors and retailers as compare to customer, where as more schemes given to the customer can add the total sales and the total revenue.

3. For better selling provide the new promotional strategies of the product.

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CHAPTER NO.5APPENDICES

5.1 QUESTIONNAIRE

1. Why you had specifically chosen mother dairy only?

a) Quality c) Priceb) Brand d) Other

2. Are you satisfied with sales promotion strategies offered by Mother Dairy?

a) Yes b) No

3. According to you which offer is useful for you?

a) Discount c) Couponsb) Other

4. How do you grade them according to their sales promotion activity?

a) Poor b) Fairc) Average d) Good

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5. Till what extend does bonus scheme attract you to purchase

the product?

a) Completely b)Averageb) Never d)Other

6. Have they provided you price cut offer during festive season?

a) Yes b)No

7. Which medium of advertising is most powerful?

a) Press advertising b) Radio Advertising c) Television advertising d) Other

8. What are you looking more different in our product?

a) More Qualityb) More Quantityc) Other

9. Did you get any kind of Demonstration of the product from our company?

a) Yes b) No

10. Does point of purchase is helpful for you?

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a) Yes b) No

5.2 DATA ANALYSIS

Reason Of selection

Reason Of selection RespondentQuality 22

Brand 12Price 11Other 05

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Satisfaction of Sales Promotion

32

Satisfaction of Sales Promotion

Respondent

Yes 36

No 14


Which offer is useful?

33

Which offer is useful Respondent

Discount 27

Coupon 17

Other 06


Grading according to sales promotion Activity

Grading According to sales promotion Acticity

Respondent

Poor 02

Fair 08

Avrage 17

Good 23

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Extent of Attraction by bonus Level

Extent of Attraction by bonus Level

Respondent

Complete 17

Average 13

Never 20

35


Exercised Price Cuts during Festive Offers

36

Expericed Price Cuts During Festive Offers

Respondent

Yes 30

No 20


Effective Medium of Advertisement

Effective Meadium of Advertisement

Respondent

Press Advertising 07

Radio Advertising 14

Television Advertising 25

Other 04

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Customer Expectations Regarding the Product

38

Customer Expectations Regarding the Product

Respondent

More Quantity 25

More Quality 20

Other 05


Received Demonstration about product

39

Received Demonstration about productYes 36

No 14


Point of Purchase

Point of Purchase Respondent

Yes 31

No 19

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CHAPTER NO.6

References

I got all the information regarding the study of product analysis & corporate selling with written proofs from the following references.

Books:

Business studies by P.C. TulsianMarketing management by Philip kotler

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Websites: Pamphlet:

www.motherdairy.com

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http://www.motherdairy.com/

Project Report

Documents

omegan pune center

pune certificate

pune declarationi

pune abstractas

branch pune

project report

project work

pune maharashtra date