Jk Final Sip Project2012 2

Promotion schemes:

MMS PROJECT

CHAPTER 1 INTRODUCTIONThe business world today is a world of competition. A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Sales promotion is one of the key elements of promotional mix which plays a vital role in implementation of market strategy. Producers may spend a lot on advertising and personal selling. Still the product may not sell. So promotion schemes need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product. Promotions schemes 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 promotion schemes is to stimulate, motivate and influence the purchase and other desired behavioural responses of the firms customers. Promotions schemes are fairly complicated and are a rich tool of marketing, with innumerable creative possibilities, limited only by the imagination of promotion planners. Promotion is an important and powerful tool of marketing. The aim of promotion is goal-oriented to achieve sales/marketing objectives, which are short-term and immediate. The promotion schemes include Discounts, coupons, free samples, special packs allowances, cooperative advertising, continuity programmers, demonstrations, exchange offers.

CHAPTER 2INDUSTRY AND COMPANY PROFILE2.1 INDUSTRY PROFILEThe Sector Notebook series is a unique set of profiles containing information for specific industries and governments. Unlike other resource materials, which are organized by air, water and land pollutants, the Notebooks provide a holistic approach by integrating processes, applicable regulations and other relevant environment information.Booming industry and is expected to grow in the years to come.The demand for paper in India is rising by nearly 7 per cent per annum. At present, there are 540 paper mills in India. Paper Industry in India is riding on a strong demand and on an expanding mode to meet the projected demand of 13 million tonnes by 2020. Note Books have an unending demand. This industry is light in nature and involves less power. Investment on machinery and hand tools / equipment is very less. This industry can be set-up in small covered area.. The major demand of note books is from the students and commercial establishments. Normally, the market is through retail outlets and also through Super Bazars, Kendriya Bhandars. Manufacturers can also tie up with other establishments for sales. There is a very good demand for note books in rural, semi-urban and urban area since Government is giving emphasis on education and has opened number of schools and colleges in remote villages. PROCESS OF MANUFACTURE :White Paper and Card Board of different weights are required for note books and binding of books. For binding of books, binding cloth, flowered coloured sheets, glue and thread etc. are required. Rolled sheets of paper and Paper Boards are purchased from the market. The paper and paper board are then cut to size in the cutting machine. The papers are then stitched and bound with the help of glue and thread etc. 2.2 INTRODUCTION OF COMPANY2.2.1 Introduction to the organization: Name of the Organization: Sundaram Multi Pap Ltd.Address of the Organization: PIDCO, Palghar (W), Dist.-Thane, 401404, Maharashtra,Telephone Numbers: 02525-253166E-mail: [email protected] activity of the Organization: Production of notebooks.Name & Designation of Head of the Organization: Amrut P. Shah (MD)Company Type :Public LimitedSeller Type: ManufacturingNature of business:The Company designs, manufactures and markets paper stationery products exercise note books, long books, note pads, scrap books, drawing books, graph books for students of all ages, as well as office/ corporate stationery products and printing, writing & packaging paper. Company has over 190 varieties of paper stationery products under the brand Sundaram which are very popular among the student communities and enjoy very high reputation in the market for its superb quality and durability.Sundaram Brand and subsequently a public limited company incorporated in the year 1995. The company manufactures exercise books and other paper stationery products for education & corporate sector. The company caters to the need of domestic market with strong presence in thestate of Maharashtra & Gujarat. The company also exports its products to Africa & USA Markets. The manufacturing activity extended in the area of more than 1 lakh sq. ft. located at logistically ideal site i.e. Palghar, the outskirts of Mumbai. The company has a manufacturing capability of more than 5 lakh books per day with the help of state of the art automatic German technology machinery in combination with Indian technology machinery and requisite infrastructure in place, which makes an ideal mix.The company has state of the art machines with fully automatic exercise books line and advanced machinery. 'Sundaram' brand paper stationeries are popular in domestic market as well as in the international market. The company exports its products to the Middle East, U. S. A. and major African countries. To meet customers' requirements viz. size of the product, quality of the paper, design of the cover, etc. the company undertakes extreme precaution. Sundaram Multi Pap Ltd. has a very wide demand in the Domestic as well as in the International Market. It has sufficient plant & machinery, to cope up with the increasing demand in the export as well as the domestic market. The company has imported a German plant to fulfil the demand of their customers. Sundaram tries to provide good quality and square back exercise book to its foreign customers. Achievements/ recognition:- Best Export Award for the year 2007-08Product portfolio:Sundaram' is the only company across India with widest range of school paper stationery products in its product basket which suites to each and every class of student in domestic market and also at the international front.Local: Long Exercise Book- Friendly, Long Exercise Book Cool, Long Exercise Book Winner, MR big, Drawing book, Other paper stationery, Education stationery, Office paper stationeryInternational: Exercise Book Arabic Exercise Book Cahier French Exercise Book A4 Exercise Book A4 French Book Hard Bound Counter Book Hard Bound Counter Book Hard Bound Manuscript Book Single Colour Exercise Book A4 Single Colour Exercise Book Ruled/Square Paper Typing Duplicate Paper Copier Paper/Multi Purpose Paper A4 Locked Spiral Notebook Locked Spiral Shorthand Notebook Full Hard Bound Book Account Book Locked Spiral Poly Cover Subject Book Drawing Book Manila Colour Bound Normal FileAim / Vision / Mission:Sundarams Mission statement has evolved after deep thought and in consultation with the members of Sundaram company. The Mission Statement as defined below reflects the fabric and character of Sundaram and integrates in the fulfilment of Sundarams Vision. To carve out a niche in the global arena of advanced Information Technology & enhance our brand image. To continue to create and deploy the finest talent in our quest for further expanding the frontiers of Educational and General books for Children. To provide international quality student and office stationery. To achieve rapid and effective spread of knowledge through the power of Information Technology and bring home its wonder to children through electronic media. To share our vast reservoir of experience for education & knowledge enrichment in the field of publication.

Organization structure CHAPTER 3 OBJECTIVES OF THE STUDY1) To study the different promotion schemes of the company,2) To study the effectiveness of promotion scheme for its product.3) To study the impact of promotion scheme on sales growth.

CHAPTER 4NEED FOR THE STUDYThis survey is to identify and focus on the sales promotion of Sundaram Multi Pap Ltd. To accomplish this, a survey was conducted to gather the impartial information about the sales promotion. The study was conducted for the below needs.

SWOT up the various schemes impact on the sales.

Find out various tools and technique of sales promotion.

Improve the sales increase in competitive market.

CHAPTER 5: LITERATU RE REVIEW 5.1-CONCEPT

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. 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 costpromotional techniques to meet their promotion goals. 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.Many studies have focused on the effects of promotion schemes on purchase quantity, and stockpiling and have documented that promotion makes consumers switch brands and purchase earlier or more. The consumersconsumption decision has long been ignored, and it remains unclear how promotion affects consumption (Blattberg et al. 1995).. Thus, for product categories with a varying consumption rate, it is critical to recognize the responsiveness of consumption to promotion in order to measure the effectiveness of promotion schemes on sales more precisely.Wansink and Deshpande (1994) show that when the product is perceived as widely substitutable, consumers will consume more of it in place of its close substitutes.There are some recent empirical papers addressing the promotion effect on consumer stockpiling behaviour under price or promotion uncertainty. Erdem and Keane (1996) and Gonul and Srinivasan (1996) establish that consumers are forward looking. 5.2 Advantages of Promotion schemes: 1. Price discrimination: Producers can introduce price discrimination through the use of promotions schemes. They can charge different prices from different consumer and trade segments varying in their price sensitivity. 2. Effect on consumer behaviour: As schemes are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives. They are persuaded to act now rather than later.5.2 Disadvantages of promotion schemes:There are certain limitations of promotion schemes which may also produce negative effects. 1.Decrease in brand loyalty: The major objective of many sales promotions is to encourage brand switching. This is especially true in case of low-involvement category products, or where there is little or no significant differentiation among brands and the unit value is low. 2. Increased price-sensitivity: Frequently promoted brands in a product category, especially on the basis of price, make consumers and traders more price sensitive not only for the promoted brand but for other brands as well in the same product category. Consumers wait for the promotional schemes to be announced and then purchase the product.3. Quality image may become tarnished: If the promotions in a product category have been rare, or the product happens to be of high-involvement category, the promotions could have negative effect on its quality image. 4. Channelizing support from dealers is doubtful: One of the trade promotion tools is to offer promotional allowances to trade people to motivate them to provide merchandising support and to pass on some benefit to consumers. This is generally the condition attached with such promotional allowances. CHAPTER 6 RESEARCH METHODOLOGY6.1 Research Type: Descriptive Research6.2 Method of data collection:The sources of the data are both primary and secondary data. Primary data: Is being collected through customer survey with the help of schedule. The structured schedule consists of close ended and open ended questions. Secondary Data collectionSecondary data has been collected from the books and websites. The company website was referred for framing the company profile. The concepts were referred from various web pages.6.3 Sampling method: Non Probability 6.4 Sample size: The sample size is of 50 samples which constitute distributors and retailers6.5 Instruments: For the collection of primary data schedule was prepared. This consists of close ended questions which help to collect the information of customers about Sundaram product.

CHAPTER 77.1-ANALYSIS & INTERPRETATION OF DATAMethods and techniques of analysis:While analyzing and interpreting the data, simple statistical techniques like averages, percentages have been used. For graphical presentation simple column diagram are used.

7.2 TABLES, GRAPHS AND INTERPRETATIONDATA ANALYSIS OF DISTRIBUTERS:Q.1.From when you are selling Sundaram note book?Table 7.2.1-Sales of Sundaram product for number of years:Sr.noPeriodNo. of RespondentPercentage %

1More than 5 month00

21 year00

33 year00

4More than 5 year8100

(Source: Primary Data)Graph7.2.1

Interpretation:The above table shows that all distributors are selling Sundaram product from more than five years.Most of the respondents says they are in business from starting.

Q.2.Why do you choose Sundaram Companys product?Table7.2.2-Reason for choosing Sundaram.Sr.noPreferenceNo. of RespondentPercentage%

1Service225

2Company image225

3Both450

4TOTAL8100

(Source: Primary Data) Graph7.2.1

Interpretation:The above tables shows 25 percentage of respondents are have to give the preference to service and 25 percentages of respondents have to give the preference to Company image, 50 percentages of the respondents have to give the preference both.From conducting the surveys more number of respondents is have to give the preference to Company image and service.Q.3. Do you consider schemes while purchasing a particular brand of Sundaram?Table 7.2.3- Consideration of schemes:Sr.noOptionsNo. of RespondentPercentage %

1Yes675

2No225

total8100


Interpretation: The above table shows that 75% of respondents prefer schemes and 25% of respondents does not prefer schemes.

Q.4. Which of the following schemes you have come across so far?Table 7.2.4-Awareness of schemes:Sr.noSchemesYes/NO

1DiscountY

2CreditY

3Lucky drawY

4Extra Qty.Y

5Other specifyCoupons


Interpretation:The above table shows that all distributors have came across all the schemes so far.From the survey most of the distributors are affected by DiscountQ.5. Which Sales promotion activity is more effective to motivate retailers?Table 7.2. 5-Effect of scheme on Sales promotion:Sr.noActivityNo. of RespondentPercentage%

1Discount450

2Credit112.5

3Lucky draw00

4Extra Qty.225

5Coupons112.5

Total8100


Interpretation:The above table 50 percentages of respondents effected by discount,12.5percentages of respondents effected by credit,0 percentages of respondents effected by Lucky draw,25 percentages of respondents effected by Extra Qty. and 12.5 percentages of respondents effected by coupons. From the survey most of the respondents are affected by discount and credit.Q.6.Which scheme can impact more?Table 7.2. 6-Impact of scheme:Sr.noSchemesNo. of RespondentPercentage %

1Discount450

2Credit112.5

3Lucky draw00

4Extra Qty.225

5coupons112.5

Total8100


Interpretation:The abovetable respondent the 50percentage of respondent have prefer discount ,12.5 percentages of respondents have prefer credit, 25 percent of the respondents have prefer extra Qty.12.5 percent of the respondents have prefer coupons.From the survey most of the customers prefer discount.Q.7. Which promotional activity will create long term impact?Table 7.2.7- Long term impact of Promotion Activity:Sr.noOptionsNo. of RespondentPercentage(%)

1Advertisement450

2Sales promotion225

3Publicity112.5

4Personal selling112.5

5Total8100


Interpretation:The above table shows 36 percentages of respondents are said advertisement will create long term impact on promotional activity and 21 percentages of respondents are said sales promotion will create long term impact on promotional activity and 29 percentages of respondents are said publicity will create long term impact on promotional activity and 14 percentages of respondents are said personal selling will create long term impact on promotional activity. Q.8. Which medium do you feel is suitable to promote the various promotional schemes?Table 7.2. 8-Impact of Media:Sr.noOptionsNo. of RespondentPercentage%

1Television225

2News paper00

3Internet112.5

4Banners562.5

5TOTAL8100


Interpretation:The above table shows 25% of respondents said the Television Advertisement can impact more and 0% of respondents said the News paper Advertisement can impact people, 12.5% respondents said the Internet Advertisement can impact people, 62.5% of respondents said the banners Advertisement can impact people.

Q.9. Is there any existing scheme on the books you are currently using?Table 7.2. 9- Any existing scheme:Sr.noOptionsNo. of RespondentPercentage%

1Yes00

2No8100

4Total8100

(Source: Primary Data)Specify: Its season time Graph7.2.9

Interpretation: The above table shows that its season times so no scheme for them

Q.10. Do you think promotional / advertising strategy satisfactory to you?Table 7.2.10-Satisfaction of promotional strategy:Sr.noOptionsNo. of RespondentPercentage%

1Yes225

2No562.5

3May be112.5

4Total8100

(Source: Primary Data) Graph-7.2.10

Interpretation:The above table shows that 25 % of respondents are satisfied with the current promotion strategy, 62.5% of respondents does not satisfied with the current promotion strategy and 12.5% of respondents are confused.

DATA ANALYSIS OF RETAILERSQ.1. Since how long are you in this business?Table 7.2.11-Sales of Sundaram product from number of years:Sr.noPeriodNo. of RespondentsPercentage %

1More than 5 month48

21-2 year714

33 year36

44-5 years1020

5More than 5 year2652

Total100100

(Source: Primary Data)Graph7.11

Interpretation:The above table shows that 8 % of retailers are in business from More than 5 month, 14 %of retailers are in business from1-2 year, 6 %of retailers are in business from 3 year, 20% of retailers are in business from 4-5 years and 52% of retailers are in business from more than 5 years.From the survey most of the retailers are in business from more than 5 years.Q.2. Which companys product you stock for? Table7.2.12.Available product:Sr.noOptionsNo. of RespondentsPercentage %

1Sundaram48

2Sundaram and Classmate510

3Sundaram, Navneet And Classmate714

4Sundaram And Navneet510

5Sundaram and other918

6All2040

Total50100


Interpretation:The above tables shows 8 % of retailers stock only Sundaram product, 10%s of retailers stock Sundaram and Classmate, 14 % of the retailers stock Sundaram, Navneet And Classmate.10 % of retailers stock Sundaram And Navneet, 18 % of retailers stock Sundaram and other and 40% of retailers stock all brands product.From the survey most of the retailers are selling all brands.Q.3.Do you suggest customers to purchase a certain brand?Table-7.2.13-Suggesting customer to purchase Sundarams brand:Sr.noOptionsNo. of RespondentsPercentage %

1Yes1122

2No714

3Depend on customer demand3264

Total50100


Interpretation:The above table shows that 22% of retailers suggest customer to purchase Sundaram brand, 14% of retailers do not suggest customer to purchase Sundaram brand and 64% of retailers suggest customer to purchase certain brand according to the demand.Q.4.If Yes why?Table-7.2.14 -Reason for suggestion:Sr.noOptionsNo. of No. of RespondentPercentage %

1Relationship218.18

2High margin19.10

3Service327.27

4Quality327.27

5No reason218.18

Total11100


Interpretation:18.18% of retailers suggest customer to purchase Sundaram brand because of relationship, 9.10% of retailers suggest customer to purchase Sundaram brand because of High margin, 27.27% of retailers suggest customer to purchase Sundaram brand because of Service, 27.27% of retailers suggest customer to purchase Sundaram brand because of quality of product and 18.18% of retailers gave no reason.Q.5. Which of the following schemes you have come across so far?Table 7.2.15- Awareness of schemes:Sr.noSchemesYes/NO

1DiscountY

2CreditY

3Lucky drawY

4Extra Qty.Y

5Other specifyCoupons


Interpretation:The above table shows that all distributors have came across all the schemes so far.From the survey most of the distributors are affected by Discount and extra quantity.

Q.6.Do customers look for various schemes in the product?Table 7.2.16-Customer preference towards product as per promotion schemes :Sr.noOptionsNo. Of RespondentPercentage%

1Yes4488

2No0612

Total50100


Interpretation:Above table shows that 87% of retailers says that most of the customer ask for scheme. 7.If yes which schemes?Ans: Discount and extra quantityQ.8.Do the scheme has affected the sales of the product?Table 7.2.18-Affect of schemes on sales:Sr.noOptionsNo. of RespondentPercentage%

1Yes3162

2No0612

3May Be1326

Total50100


Interpretation:Above table shows that 62% retailer think that schemes has affected the sales of the product, 12% retailer think that schemes has not affected the sales of the product and 25% retailer are not sure.Q.9. If yes, then how much %?Table 7.2.19-Sales Growth%Sr.noGrowth in%Percentage%

15-1035

211-1525

316-2007

421-2520

526-3013

Total100


Interpretation:Above table shows that 35% retailer think that schemes has affected 5-10% sales, 25% retailer think that schemes has affected 11-15% sales of the product and 7% retailer think that schemes has affected 16-20% sales of the product, 20% retailer think that schemes has affected 21-15% sales of the product and 13% retailer think that schemes has affected 26-30% sales of the product.Q10. Which Trade Promotions do various companies offer?Table7.2.20.Other Company offering trade promotion:Sr.noActivity

1Cash incentives

2Free trips

3Free gifts

4extra margin

5Extra units

6credit facility

7Banners


Interpretation:Above table shows all the trade promotion schemes offer by other companies. CHAPTER 8 FINDINGS1. 100% of the respondents are selling the Sundaram product because of its existence from past 25 yrs.2. Sundaram has a good name in the market and it covers the major shares in the market for its notebooks products.3. Sundaram doesnt give much importance to the promotional activities compare to its competitor.4. The advertisement campaigns were conducted more in urban areas as compare to rural areas.5. The impact of promotion schemes on sales growth is favourable.

CHAPTER 9RECOMMENDATIONS 1. Company should introduce different promotion schemes for different product categories.2. They should promote brands through advertisements.3. Company can advertise with the help of different media print & electronic media or social media.4. The advertisement must contain enough information about the product.5. Banners should be give to distributors and retailers .

CHAPTER 10LIMITATION OF STUDY Biasness in responses given by respondent. Sample size is restricted only to distributors and retailers. The sample chosen may not be the true representative of the whole population. The geographical area is restricted to Mumbai western suburbs, Vasai, Palghar & Dahanu.

CHAPTER 11FUTURE SCOPE OF STUDY Sales promotion is one of the key elements of promotional mix which plays a vital role in implementation of market strategy. The scope of the promotion scheme in my study was limited to the marketing strategy adopted by Sundaram and within the marketing area at Mumbai. Further research study can be conducted to understand the customer perception regarding promotion activities.

CHAPTER 12CONCLUSIONGood promotional strategies help to improve the sales of product and it happens when company has adequate promotional activities. Also it is necessary to company to understand consumers wants and improvements suggested in promotion. Company can formulate new schemes to maintain customer relationship which will help them to make good position in market. Promotional schemes are very important to promote the product in the market and helps maintaining the consistency in the market.

BIBLIOGRAPHYReferences:1 Kotler Philip, Marketing Management, Prentice- Hall of India Private Limited, July 2000, 10th Edition.2 Saxena Rajan, Marketing Management, Mc-graw Hill Company, 2006, 3rd Edition.3 Kothari C.R., Research Methodology Methods and Techniques

Websites: www.businessworld.com , www.sundaram.com

ANNEXUREINTERVIEW SCHEDULE FOR DISTRIBUTORSName of store:Add.:Contact No.Q.1.From when you are selling Sundaram note book?1)more than 5 month 2)year 3)2 years 4)5 yearsQ.2.Why do you choose sundaram companys product? 1)Service 2)Company image 3)BothQ.3. Do you consider schemes while purchasing a particular brand of Sundaram? 1)Yes 2) NoQ.4. Which of the following schemes you have come across so far? 1)Discount 2) Credit 3)Lucky Draw 4)Extra Qty. 5)otherQ.5. Which Sales promotion activity is more effective to motivate retailers? 1)Discount 2) Credit 3)Lucky Draw 4)Extra Qty. 5)otherQ.6.Which scheme can impact more? 1)Discount 2) Credit 3)Lucky Draw 4)Extra Qty. 5)other

Q.7. Which promotional activity will create long term impact? 1)Advertisement 2)Sales promotion 3)Publicity 4) Personal sellingQ.8. Which medium do you feel is suitable to promote the various promotional schemes? 1)Radio 2) TV 3)Newspaper 4)Banners 5)OthersQ.9. Is there any existing scheme on the NOTEBOOK you are currently using? 1) Yes 2)No Q.10. Do you think promotional / advertising strategy satisfactory to you? 1) Yes 2)No 3) May Be

INTERVIEW SCHEDULE FOR RETAILERSName of store:Add.:Contact No.Q1. Since how long are you in this business?1)more than 5 month 2)year 3)2 years 4)5 yearsQ2. Which brands product you stock for? 1)Sundaram 2) Sundaram, NavneetAnd Classmate 3) Sundaram and Classmate 4) Sundaram And Navneet 5) Sundaram and otherQ.3.Do you suggest customers to purchase a certain brand?Yes 2)No.Q.4.If Yes why?1) High margin 2)Quality 3) Service 4) Relationship 5)No reason Q.5 Which of the following schemes you have come across so far? 1)Discount 2)credit 3)Lucky draw 4)Extra Qty . 5)Other specify Q.6.Do customers look for various schemes in the product?Yes 2)No Q.7.If yes which schemes?...........................................................................................Q.8.Does the scheme has affected the sales of the product?1)Yes 2)no 3)MaybeQ.9. If yes, then how much %? ..........................................................................................................................................Q10. Which Trade Promotions do various companies offer?Ans:..

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Jk Final Sip Project2012 2