Analysis of Promotion Policy

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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 STUDIESKURUSHETRA UNIVERSITY KURUSHETRA


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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

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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

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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

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Table of Contents

Particulars Page No.

1. Company Profile 6

2. Objective of Study 8

3. History of company 9

4. Production and sale of company 11

5. objective of study 14

5. Introduction about the Project 17

6 Research methodlogy 22

7, Finding 23

8. Recommendations & Suggestions 24

9. Limitations 25

10. Conclusion 26

11. Bibliography 27

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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

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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 1993-

94, 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.

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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. To Position himself in the Market

2. To Increase productivity

3. To Innovate new things

4. To double the export and bring foreign currency

5. To get maximum profits

6. To Increase the performance of employees

7. To Development technical and administrative skills.

8. Optimum utilization of human on Resources.

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HISTORY OF L.P.S

1972Established Lakshmi Precision Screws Pvt Ltd as Socket

Head Screws Manufacturer.

1973 Technical tie-up with the German firm M/s Richard

Bergner.

1977 Acknowledge quality source of fastener.

1980 Technical tie-up with M/s Richard Bergner expires.

1983 Secured self-certification status from FORD.

1986 Declared Public Limited Company.

1989 Secured self-certification status from M/s Lakshmi Machine

1992 Established as manufacturer-exporter.

1994 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.

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2002 Testing by National Accreditation Board for Calibration

& Testing.

2004 Installed Bolt Maker (AF 2525) to add production Capacity

to 12200 MT.

2006Self certification status from TELCO.

2008 Golden peacock Award.

2010 Environment award

Outline of the Company

1) Name of the Company : LAKSHMI PRECISION SCREWS LTD.

2) Founded on : March 10, 1972

3) Head Office & Factory : 46/1, Mile StoneRohtak-124001Haryana (INDIA)

4) Chairman & Managing Director : Lalit Kumar Jain

5) Total Assets : 978 Mill. INR (March-2004)($21 Million)

6) Annual Sales : 1123 Mill. INR (March-2004)($24 Million

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PRODUCTION AND SALES OF THE

COMPANY

YEAR PRODUCTION (in tones) SALES IN MILLIONS

92-94 3016 309

94-96 3556 404

96-98 4897 552

98-00 6529 735

00-02 6385 696

O2-04 5753 684

04-06 5607 706

06-08 6556 816

08-10 6165 834

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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

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PRODUCTS LIST

1. BOLT & NUTS FOR AUTOMOBILES

A. 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

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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.

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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

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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

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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.

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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

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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

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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.

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Research Methodology Used

Following is the summary of the methodology used for research: -

Research Design - Descriptive

Data Source - Primary

Data Collection Method - Questionnaire

Sample Size - enquiries

Area Covered - North India

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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.

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Recommendations & Suggestions

(1) Timely distribution of incentive should be made

(2) Company should go for E-commerce due to globalization.

(3) Frequent official visits should be encouraged.

(4) Company should be emphasis on advertisement and promotion

scheme specially in print media and business magazine.

(5) Company should provide more gift scheme to the dealer.

(6) Company have to offer Bulk Discount & Cr Facility in

order to remain competent.

(7) Company should stress on Zero-Defect Concept.

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The limitations of this study are as follows: -

(1) Sample size was small therefore chance of error is high.

(2) Some time no cooperation of respondent.

(3) 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.

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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.

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Kotler, Philip, Marketing Management, New Delhi, Prentice

Hall of India Pvt. Ltd.

From Company record

Website: www.1psindia.com

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

Documents

Analysis of Promotion Policy