MBA Project Report-Sales Promotion

A STUDY ON SALES PROMOTION ANALYSIS WITH REFERENCE TO HIND COSMETIC PALAKKAD. 2011

A STUDY ON SALES PROMOTION ANALYSIS WITH

REFERENCE TO HIND COSMETIC PALAKKAD.

PROJECT REPORT

Submitted by

**********************

Register No: *********************

in partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

In

DEPARTMENT OF MANAGEMENT STUDIES

SSM COLLEGE OF ENGINEERING

KOMARAPALAYAM-638183

JULY 2010

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SSM COLLEGE OF ENGINEERING

KOMARAPALAYAM-638183

Department of Management studies

PROJECT WORK

JULY 2010

This is to certify that the project entitled

A STUDY OF SALES PROMOTION

ANALYSIS WITH REFERENCE TO HIND COSMETIC

is the bonafide record of project work done by

****************************

Register No: *****************************

of MBA (DEPARTMENT OF MANAGEMENT STUDIES) during the

year 2010-2011

--------------------- --------------------------------

Project Guide Head of the Department

Submitted for the Project Viva-Voce examination held

on_______________

--------------------------- ----------------------------

Internal Examiner External Examiner

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DECLARATION

I affirm that the project work titled A STUDY ON SALES PROMOTION WITH

REFRENCE TO HIND COSMETIC PALAKKAD being submitted in partial

fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION is the

original work carried out by me. It has not formed the part of any other project

University.

I certify that the declaration made above by the candidate is true

Mr.

LECTURER

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ACKNOWLEDGEMENT

I am deeply indebted to the management of S.S.M college of Engineering,

Komarapalayam, for giving me this ample opportunity to do the project work.

I feel great pleasure to thank our beloved

*******************************************************************, Principal

*****************************************S.S.M College of Engineering,

Komarapalayam, ************************* and *******************************.,

***************, PhD who provided with us all facilities during the course of study.

I am also thankful to ***************************************************

Department of Management studies, for giving us a valuable learning experience

by means of this Organizational studies.

I also thank all the faculty members of the Department of Management

studies, S.S.M College of engineering for their encouragement and support.

At the outset I would like to thank ******************************, head of the

marketing department for their valuable advice and guidance during my project

completion ,for timely help concerning various aspects of project. I also thanks to

all staff members of account department in Hind cosmetic for help me to complete

my project

Last but not least, I would like to thank all the respondents, Company staffs,

my parents, well wishers and friends who have directly and indirectly helped me to

complete this project. And to beloved god to give me the strength both in deal &

financial matter to complete this project.

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CONTENTS

Description Page no.

List of tables

List of charts

Abstract

1. Introduction

1.1About the study

1.2About the industry

1.3About the company

2

3

6

2. Main theme of the project

2.1Objectives of the study

2.2Scope and limitations

2.3Review of literature

2.4Methodology

22

23

25

27

3. Analysis & Interpretation 34

4. Findings, Recommendations and Conclusion

4.1Findings

4.2Recommendations

4.3Conclusion

53

54

55

Appendix 56

Bibliography 59

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LIST OF TABLES

S.NOTABLE

NO DESCRIPTION PAGE NO

1 3.1EFFECT OF MEDIA

27

2 3.2DEALER DEMONSTRATION

29

3 3.3SUCCESS OF ADVERTISEMENT MESSAGE

30

4 3.4CUSTOMER SATISFACTION

32

5 3.5NEED FOR ADDITIONAL ADVERTISEMENT AND

SALES PROMOTIONAL ACTIVITIES34

6 3.6CUSTOMER DEALER RELATIONSHIP

35

7 3.7SATISFACTION WITH SALES PROMOTIONAL

ACTIVITIES36

8 3.8DELIVERY MODE OF DEALER

37

9 3.9PAGE IN PRINT MEDIA TO GET MAXIMIUM

ATTENTION38

10 3.10GIFTS GIVEN BY COMPANY

39

11 3.11SATISFACTION WITH PRICE OF THE PRODUCT

41

12 3.12DIRECTING MARKETING STRATEGY

42

13 3.13SATISFACTION WITH PRICE OF THE PRODUCT

43

6


14 3.14CHI-SQUARE TEST FOR SIGNIFICANCE

15 3.15WEIGHTED AVERAGE TEST

44

7


LIST OF CHARTS

S.NOCHART

NO DESCRIPTION PAGE NO

1 3.1EFFECT OF MEDIA

36

2 3.2DEALER DEMONSTRATION 37

3 3.3SUCCESS OF ADVERTISEMENT MESSAGE 38

4 3.4CUSTOMER SATISFACTION 39

5 3.5NEED FOR ADDITIONAL ADVERTISEMENT AND

SALES PROMOTIONAL ACTIVITIES

40

6 3.6CUSTOMER DEALER RELATIONSHIP 41

7 3.7SATISFACTION WITH SALES PROMOTIONAL

ACTIVITIES

42

8 3.8DELIVERY MODE OF DEALER 43

9 3.9PAGE IN PRINT MEDIA TO GET MAXIMIUM

ATTENTION

44

10 3.10 GIFTS GIVEN BY COMPANY 45

11 3.11 SATISFACTION WITH PRICE OF THE PRODUCT 46

12 3.12

DIRECTING MARKETING STRATEGY

47

48

8


13 3.13 SATISFACTION WITH PRICE OF THE PRODUCT

14 3.14 CHI-SQUARE TEST FOR SIGNIFICANCE 49

15 3.15 WEIGHTED AVERAGE TEST50

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ABSTRACT

This project work is based on A STUDY ON SALES PROMOTION WITH

REFERENCE TO HIND COSMETICS , PALAKKAD.The main objective of the

study is to know the effectiveness of sales promotion activities.

The first chapter of the study explains about brief outline of the study, the

company profile and industry profile. The second chapter deals with objectives of

the study, scope and limitation and methodology applied. The third chapter

explains about analysis and interpretation. The primary data are collected through

questionnaire and secondary data collected through internet, books, journals etc.

On the basis of the questionnaire prepared and it’s responses the analysis and

interpretation is done. The fourth chapter deals with findings, recommendations

and conclusion.

Researcher in common refers to a search for knowledge. The Researcher

selected descriptive research for study. The technique used here is random

sampling. Sampling size is 175, after collecting data it should be analyzed by table

and diagrams.

The researcher analyzed all those data with the help of various statistical

tools such as percentage analysis, chi square analysis, weighted average Some of

the valuable suggestions are the company can improve sales if the management

provide more advertisement through various media. The company must look for

the price of their product against their competition.

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CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION ABOUT THE STUDY

The role of selling has become more complex because

producers are more technical, buyers are more sophisticated and the

competition has become more intense. This has necessitated the need for

proper flow of communication from the producer to the consumer either

along with the product or well in advance of the introduction of a product into

the market. Successful marketing consists in offering the right product at the

right price at the right place and time with right promotion.

Promotion is an exercise in information, persuasion and influence.

Promotion has come to mean the overall co-ordination of advertising,

selling, publicity and public relations. Promotion is a helping function

designed to make all other marketing activities more effective and efficient.

Advertising and sales promotion are the central elements in a company's

communication strategy.

DEFINITION

The American marketing Association to bring a semblance of

uniformity and better understanding in the semantics jungle in the field of

marketing. It defined `Advertising as any paid form of non personal

presentation and promotion of ideas, goods or services by an identified

sponsor'.

Sales Promotion is defined by the American Marketing Association in a

specific sense to mean: those Marketing activities, other than personal

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selling. advertising and publicity that stimulate consumer purchasing behavior

and dealer effectiveness, such as display, shows and exhibitions,

demonstrations and various non recurrent selling efforts not in the ordinary

routine.

1.2 INTRODUCTION ABOUT THE INDUSTRY

Developing markets such as India are an important source of growth for

Unilever. The company is adopting unique marketing approaches to increase

consumption of its products in these regions, positioning itself as an ethical brand

that benefits wider society.

Unilever’s Lifebuoy ‘Swasthya Chetna’ (‘Health Awakening’) campaign is

one example. This educates people on the importance of health and hygiene in

preventing diarrhoea and encourages them to adopt a simple hand-washing

regime using soap. Swasthya Chetna is India’s largest ever rural health and

hygiene education program.

Diarrhoea is the world’s leading preventable cause of death, killing 2.2

million people every year including 600,000 Indian children under the age of five.

According to a study by the London School of Tropical Hygiene, washing hands

with soap and water can reduce instances of diarrhoea by 47%.

Many potential Lifebuoy customers live in remote, rural areas which can be

hard to reach through conventional media. Ogilvy worked with Lifebuoy to create a

direct communication campaign specially designed to raise awareness among

India’s largely rural and often illiterate population.

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Lifebuoy health officers visited 43,000 Indian villages and schools over five

years where they used product demonstrations, interactive visuals, competitions

and drama workshops to spread the health and hygiene message.

The program is based on the simple insight that ‘visible clean is not actual

clean’ which was brought alive through a special ‘Glowgerm’ UV demo. When held

under ultra-violet lamps, glowgerm powder glows on hands washed only with

water, symbolising germs on those hands, and does not glow on hands washed

with soap.

The program has reached 110 million rural Indians since it began in 2002.

Awareness of germs has increased by 30% and soap use has increased among

79% of parents and among 93% of children in the areas targeted. Soap

consumption has increased by 15%.

The campaign received recognition for its innovation and effectiveness,

winning Silver in the Rural Marketing Advertisers Association of India awards in

2006, and the grand prize at the Asian CSR awards 2007. It was also recognised

by the Indian government who created a special edition postal cover dedicated to

the campaign.

Lux has always believed in taking up ground-breaking endeavors and has

always enjoyed venturing with various brand associations, be it a ‘Coffee Table

Book’ or ‘A Lux Couture Show’ at the Lakme Fashion Week or coming up with a

‘Chocolate seduction soap’. The new Lux Strawberry & Cream and Lux Peach and

Cream have a stronger fragrance, creamier lather and moisturizing beauty oils

which makes your skin soft and smooth “Skin noticeably softer and perfumed

like”

The latest addition in the Lux kitty is the all new Lux Festive Glow with

Honey for naturally radiant and admired skin, with milk cream, ubtan extracts &

honey. Not to forget Lux International which has Swiss Moisturizers in it!

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Everything about Lux, from the look and feel of the products and packaging

to the fragrances, is a delight to the feminine senses. In fact, Lux has been making

waves since 1924, when it launched the world's first mass-market beauty soap in

the US at a fraction of the cost of imported French soaps. Since then it has

expanded into other areas, including shower gels, bath additives, shampoos and

conditioners.

Soaps are useful for cleaning because soap molecules have both a

hydrophilic end, which dissolves in water, as well as a hydrophobic end, which is

able to dissolve non polar grease molecules. Although grease will normally adhere

to skin or clothing, the soap molecules can form micelles which surround the

grease particles and allow them to be dissolved in water. Applied to a soiled

surface, soapy water effectively holds particles in colloidal suspension so it can be

rinsed off with clean water. The hydrophobic portion (made up of a long

hydrocarbon chain) dissolves dirt and oils, while the ionic end dissolves in water.

Therefore, it allows water to remove normally-insoluble matter by

emulsification. In other words, while normally oil and water do not mix, the addition

of soap allows oils to dissolve in water, allowing them to be rinsed away.

We have seen the growth of cleanliness and of a recognition of the part

cleanliness plays in health and morale. We have traced the increase of

industrialization which has brought low-priced plumbing equipment, hot water in

the home, and washing machines within the reach of all. Each has made life

better, healthier, easier, and each has increased the consumption of soap.

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http://en.wikipedia.org/wiki/Molecule

http://en.wikipedia.org/wiki/Emulsification

http://en.wikipedia.org/wiki/Hydrocarbon

http://en.wikipedia.org/wiki/Colloidal

http://en.wikipedia.org/wiki/Micelles

http://en.wikipedia.org/wiki/Fat

http://en.wikipedia.org/wiki/Nonpolar

http://en.wikipedia.org/wiki/Hydrophobic

http://en.wikipedia.org/wiki/Water

http://en.wikipedia.org/wiki/Hydrophilic


It is fitting that an industry which makes a product so basic to the health and

well-being of the people should be an aggressive, competitive, and enlightened

industry.

We are proud of the fact that the soap industry has played its part for the

welfare of the country as a whole and is ever alert to serve the public better. I hope

those of you who are already working in the industry will derive as much pleasure

from it as I have; and to those who have taken this course only because of an

outside interest in the subject of soap, let me just say, “Come on in, the water is

fine!”

1.3 INTRODUCTION ABOUT THE COMPANY

Hind Cosmetics is located at Palakkad, Kerala State. The company, being

the first extraction plant, forms a part of Kerala’s pride. Being located in the “God’s

Own Country”, it was cultivated dignity and honor for the state and people as well.

Hind Cosmetics was registered as a public limited company on 25 th September

1990. The company was listed in the stock exchanges of Mumbai, Chennai &

Cochin, a company having annual turnover of Rs. 50 crores is the largest

manufacturer of cosmetics field.

The company was started by the Oil millers association of Thrissur in Kerala

with an objective of minimising Oil loss. Earlier Roller mills were used for oil

production, but this cause loss. The technological advancements leads to solvent

extraction process, which made a turning point of development. The company first

to produce and distribute by pass protein cattle feed. Besides cattle feed, the

product line of the company consist of dairy, ice – cream, etc………….

It is marketed annually about 2.2 lakh tonnes of superior quality cattle feed.

Hind cosmetic is in the oil extraction industry for the past 32 years. The company

has secured the National Productivity Award for the year 2001-2002 for being first

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in the terms of production efficiency in animal feed section. This is the 6 th time in a

row that the company is being selected for this most coveted award.

Hind Cosmetic with a capital base of Rs.36 crores embarks on an expantion

to double its Solvent Extraction capacity & add most modern eco friendly vegetable

refining plant.

The company is a name trusted with thousands of people. Since its

establishments, its growth and development is remarkable and has built an image

offering quality products and it promises to maintain market leadership.

A hind cosmetic is one of the most recognizable Indian brands. Its story is a

classic example of the success of Indian entrepreneurship in the face of stiff

competition. Hind cosmetic took on the might of giant multinationals and wrote a

new chapter in the Indian corporate history. Starting as a one-man operation in

1969, today, hind cosmetics has about 14, 000 employee-base and annual

turnover of more than Rs. 25, 00 crores.

Founder of Hind is Dr. Karsanbhai Patel, son of a small-time farmer and a

qualified Science graduate. In 1969, the year he founded hind, Karsanbhai Patel

was working as junior chemist in Government laboratory. In the night Karsanbhai

used to make detergent in the 100 Sq. Ft. back yard of his home, using bare hands

and bucket. In 1960s and 1970s, the domestic detergent market had only premium

segment, with very few players and was dominated by MNCs. After making the

detergent Karsanbhai used to pack it in polythene bag and sold it door-to-door. He

priced the detergent at Rs. 3 per kg, when the available cheapest brand in the

market was Rs. 13 per kg. In a short span of time, with indigenous process,

packaging and low-profiled marketing, hind created an entirely new market

segment in domestic marketplace and quickly emerged as dominant market

player. Hind rewrote the marking rules and its success story became one of the

widely discussed case studies in the B-schools across the world.

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In the 1980s hind catapulted Surf, which was a well-established detergent

product by Hindustan Lever, and occupied the top slot in the detergent products

segment-a slot it has made its own. In 1990, hind entered the toilet soap market

and today it is the second largest toilet soap brand in India. Today, hind has one of

the largest volume sales with a single brand name in the world.

Consumer Products

Soaps: Bath Soap, Beauty Soap, Lime Fresh Soap, Rose, Sandal

Detergent: Washing Powder, Detergent Cake, Super Washing Powder,

Super Detergent Cake, Popular Detergent Powder, Popular Detergent

Cake

Salt: Shudh

Scouring Products: Clean Dish Wash Bar,Bartan Bar

Industrial Products:

LAB (Linear Alkyl Benzene)

AOS (Alfa Olefin Sulfonate)

Sulfuric Acid

Glycerin

Soda Ash

Pure salt

Vacuum Evaporated Iodized Salt

SSP ( Single Super Phosphate )

Sodium Silicate

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Board of Directors

Board of directors of the company has ten members including the managing

director. They are as follows-

NAME DESIGNATION

Mr. M. C. Paul Chairman and Managing director

Mr. T. O. Paul Executive director

Mr. A. P. George Director and legal advisor

Mr. K. P. John Director

Mr. T. C. Mathew Director

Mr. P. D. Anto Director

Mr. John francis K. Director

Dr. K. C. Vijayaraghavan Director

Mr. T. R. Ragulal Director

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Chief General Manager of the company is Mr. Anand Menon. Mr. R.

Sankaranarayanan is the secretary-cum-chief finance manager.

ORGANISATION STRUCTURE

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BOARD OF DIRECTORS

MANAGING DIRECTOR

MARKETING MANAGER

PRODUCTION MANAGER FINANCE MANAGER

SALES REPRESENTATIVES

DISTRIBUTORS

SUPERVISOR

MACHINE OPERATORS

WORKERS

ACCOUNTANT


VARIOUS DEPARTMENTS:-

There are mainly eight departments in the Red Sun. They are as follows:-

Purchase Department

Quality Control Department

Production Department

Marketing Department

Accounts Department

HRD Department

Despatch Department

R & D Department

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PURCHASE DEPARTMENT

Purchase department looks after all the purchases of raw materials. The

department looks after the purchase of all divisions. The purchase manager

handles all matters regarding the purchase. The manager is assisted by supervisor

and storekeeper. The purchasing decision is done only after a close examination

of the quantity and quality of the materials to be purchased.

CHART

22

Manager

Supervisor


PRODUCTION DEPARTMENT

The production of all the medicines is managed by the production manager.

The production manager is assisted by five supervisors and ninety workers. The

material requirement for the production of medicines are evaluated by supervisors

and reported to the manager. The production process and the time required for the

completion of the product differs for the entire product. There are more products

being produced by this department.

CHART

23

Store Keeper

Production Manager

Supervisor


ACCOUNTS DEPARTMENT

The accounting department maintains all the accounting works of the

company. There are five accountants in the department. These accountants

maintain all accounting records like balance sheet and profit & loss account. The

report thus obtained is submitted to the senior assistant. The senior accountant

thus examines all the records and clears it. The final report is submitted to the

accounts manager. The accounting manager then thus forwards the report to the

top management.

CHART

24

Workers

Accounts Manager

Senior Accountant Accountants


RESEARCH &DEVELOPMENT DEPARTMENT

All kinds of research and developments take place in this department. The

company is also maintaining a separate department for all the researches. The lab

assistant creates different ways for the purpose of innovating new medicines. The

research is found successfully is tested and developed so that they can produced

and sold. A small portion of the raw materials purchased are used for this purpose.

CHART

25

R & D Manager


QUALITY CONTROL DEPARTMENT

The quality control department checks the quality of both the raw

materials as well as that of the finished products. Only after proper checking of the

raw materials, they are used for the purpose of production. Then only after proper

checking of the finished products they are further proceeded for despatch. The

functions of this department include incoming raw material quality control, in

process quality control activities, and finished products quality control activities.

CHART

26

Workers


DESPATCH DEPARTMENT

Despatch department deals with packing and dispatching of the product

as per the production and orders received from the concerned agencies. Despatch

department deals only with the finished product. The despatch department

dealings are done by the manager and the workers in the department.

CHART

27

Manager

Workers

Manager


MARKETING DEPARTMENT

Marketing department undertakes all the matters regarding the sales,

pricing and sales promotion activities of the products. This department provides

cash as well as credit sales. The credit sales are allowed for a period of one

month. The marketing manager takes all the important decisions concerning the

marketing of the products.

CHART

28

Workers


HUMAN RESOURCE DEPARTMENT

The human resource department deals with the training and development

of workers in the pharmacy. They provide training for all the workers. The HR

manager manages all the work related with the human resource of the company.

CHART

29

Marketing Manager

Assistant Manager

Area Manager

Sales representatives

Agency


ADVANTAGE OF HIND COSMETIC AS A PARTNERSHIP FIRM

Section 4 of the Indian partnership Act 1932 defines a partnership “as the

relation between persons who have agreed to share profits / loss of business

carried on by all or any of them acting for all”. According to this definition a

partnership with one another are individually known as partners.

Under the Act, Registration is only optional and not compulsory. Since there

are a lot of consequences developed through non registration in safer side, the

firm is registering it with the register.

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Manager

Staff


FINANCE

The capital of a partnership firm consists of the amounts contributed by the

various partners. The Amount contributed by the partners is Rs. 12, 00,000. This

fund is treated as a long term fund and the firm obtains its short term fund through

loans and advances.

Means of finance:-

25% of the finance own funds Rs: 1200000.

55% finance overdraft from canara bank.

25% term loans from KSFE.

Borrowing powers:

The firm has a power to borrow money powers from banks, financial institutions,

autonomous corporation, firms or other companies on the security of the assets of

the firm including immovable properties and also accepts deposits of money from

members or non members on such terms and conditions as the partners may been

fit.

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CHAPTER 2

MAIN THEME OF THE PROJECT

2.1 OBJECTIVES OF THE STUDY

Primary Objective:

The study on effectiveness of sales promotion and advertising activities

with special reference to Hind Cosmetic, palakkad.

Secondary Objective:

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1. To find out the factors that influences the purchase decision of

consumers.

2. To identify need of new innovations of the company towards sales

promotion.

3. To know about the different strategies for sales promotion.

4. To suggest to be strengthened after sales services of Hind

Cosmetic.

5. To provide suggestions and recommendations for further

improvements

2.2 Scope of Study

The function of marketing is to ensure that the right product is made

available at the right place, in the right quality, at the right price, at the right

time and under the right impressions to the consumer. All these righteousness

is made possible by performing the sales function. Thus, sales function is the

pivotal factor in any organization. It is even capable of deciding the very

existence of an organization. The various promotional mix elements are

designed for achieving better sales. Advertising is a necessisity with a view to

33


maximization of the return on the money invested. The probability of securing the

optimum effectiveness is greater when advertising is adequately planned,

executed and constantly evaluated in terms of carefully crystallized objectives.

Thus, advertising offers a reason to buy while; sales promotion offers an incentive

to buy.

2.3 Limitations of the Study

1) Time Factor: The researcher had only limited period of one month for

study. The elaborate topic could not be fully covered; hence a complete

picture could not be obtained.

2) Experience: The researcher had limited experience in the field being a

34


student.

3) Response: Some of the respondents failed to express their reactions

clearly.

4) Sample Survey: Since the information is being collected from a sample of

population, their view cannot be generalized on large population.

2.4 REVIEW OF THE LITERATURE

SALES PROMOTION

According to Robert A. Peterson and William R. Wilson, Self-reports of

sales promotion invariably possess distributions that are negatively skewed and

exhibit a positivity bias. Examination of the customer satisfaction literature and

empirical investigations reveal that measurements of customer satisfaction exhibit

35


tendencies of confounding and methodological contamination and appear to reflect

numerous artifacts. Implications and suggestions for research and practice are

discussed.

According to Carol Suprenant, investigate whether it is necessary to

include disconfirmation as an intervening variable affecting satisfaction as is

commonly argued, or whether the effect of disconfirmation is adequately captured

by expectation and perceived performance. Further, they model the process for

two types of products, a durable and a nondurable good, using experimental

procedures in which three levels of expectations and three levels of performance

are manipulated for each product in a factorial design.

According to Gordon H.G.McDougall, investigated the relationship

between three elements – core service quality, relational service quality- and

perceived value – and customer satisfaction and future intentions across four

services. The results revealed that core service quality (the promise) and

perceived value were the most important drivers of customer satisfaction with

relational service quality (the delivery) a significant but less important driver. A

direct link between customer satisfaction and future intentions was established.

The relative importance of the three drivers of satisfaction varied among services.

Specifically, the importance of core service quality and perceived value was

reversed depending on the service. A major conclusion was that both perceived

value and service quality dimensions should be incorporated into customer

satisfaction models to provide a more complete picture of the drivers of

satisfaction.

According to Ellen Garbarino & Mark S Johnson Several theories of

relationship marketing propose that customers vary in their relationships with a firm

on a continuum from transactional to highly relational bonds. Few empirical studies

have segmented the customer base of an organization into low and high relational

groups to assess how evaluations vary for these groups. For the high relational

customers (consistent subscribers), trust and commitment, rather than satisfaction,

are the mediators between component attitudes and future intentions.

36


According to J.Joseph Cronin & Steven J Taylor investigate the

conceptualization and measurement of service quality and the relationships

between service quality, consumer satisfaction, and purchase intentions. A

literature review suggests that the current operationalization of service quality

confounds satisfaction and attitude. Hence, the authors test (1) an alternative

method of operationalizing perceived service quality and (2) the significance of the

relationships between service quality, consumer satisfaction, and purchase

intentions. The results suggest that (1) a performance-based measure of service

quality may be an improved means of measuring the service quality construct, (2)

service quality is an antecedent of consumer satisfaction, (3) consumer

satisfaction has a significant effect on purchase intentions, and (4) service quality

has less effect on purchase intentions than does consumer satisfaction.

Implications for managers and future research are discussed.

2.5 RESEARCH METHODOLOGY

Meaning of Research:-

Research is a systematic method of finding solutions to problems. Research

simply means a search for knowledge. Research is an original contribution to the

existing stock of knowledge making for its advancement. It aims at discovering the

37


truth. Research is a process of systematic and in-depth study or search of any

particular topic, subject or area of investigation backed by collection, computation,

presentation and interpretation of relevant data.

Meaning of Methodology:-

Methodology means methods of conducting research and the logic behind

the methods. The methodology is the theory of how research should be

undertaken. It is the tools and techniques used to obtain and analyze data.

Meaning of research methodology:-

Research methodology means the method adopted in studying the problem.

It helps in explaining the tools and techniques used in studying the problem under

study. It is necessary that the researcher should know which tool is used and for

what purpose. Research methodology is a way to systematically show the

research problem. The research methodology not only talk about the research

methods but also consider the logic behind the method we sue in the context of

our research study and explain why we are using others so that the research

results are capable of being evaluated either by the researcher himself or by

others.

DEFINITION

D. Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define

research as “the manipulation of things, concepts or symbols for the purpose of

generalizing to extend, correct or verify knowledge aids in construction of theory or

in the practice of an art.”

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Redman and Mory define research as a “systemized effort to gain new

knowledge.”

Research Design

Research design is the “framework or blueprint” for collecting information

needed in the best possible way. The correct design will save resources and also

tests the validity and the reliability of the research.

A research design is the arrangement of conditions for collection and analysis

of data in a manner that aims to combine relevance of the research purpose with

economy in procedure. It constitutes the blueprint for the collection, measurement

and analysis of data. The design includes an outline of what the researcher will do

from writing the hypothesis and its operational implication to the final analysis of

data. The decision with respect to the following will be included in the research

design.

DESCRIPTIVE RESEARCH

In this study descriptive type of research is adopted. This type of research

includes surveys and fact-finding enquiries of different kinds. These major purpose

of descriptive research is description of the state of affairs as it exists as present.

The main characteristic of this method is that the researcher has no control over

the variables; he can only report what has happened or what is happening.

Methods of Data Collection:-

The search for answers to research questions calls for collection of data.

Data are facts, figures and other relevant materials, past, and present, serving as

bases for study and analysis.

Primary Data:

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Primary data is collected with the help of interview techniques,

questionnaire and consumer survey methods. Interview is an effective, informal

verbal and non verbal conversation, initiated for specific purpose and

focused on certain planned content areas. Questionnaire is a systematic

compilation of questions that are submitted to a sampling of population from

which information is desired. Consumer surveys are conducted to learn

what consumers think of promotion how many took advantage of it and

how the promotion affected subsequent brand-choice behavior.

Secondary Data:

Secondary data sources include:

a) Annual financial report of the firm

b) Magazines:. Business Today.

Data Representation:

Tools of Analysis include:

a) Tables

b) Graphs

d) Pie Diagrams

e) Charts

SAMPLING TECHNIQUES

The sampling method adopted is the non-probability sampling method. In

non-probability sampling method the convenience sampling method is used here.

In convenience sampling method the researcher can collect the samples as per his

or her convenience. This is usually adopted when the population is unknown and

the area of study is very wide.

40


Population Size:-

Population Size of this project is unknown.

Sample Size: -

It is the number of items that has been selected from a population to make the

study.

Sample size of 175 samples was considered for this study

Area of the study: - The study has been conducted only on the Palakkad district.

SAMPLING METHODS

The sampling method adopted is the non-probability sampling method. In

non-probability sampling method the convenience sampling method is used here.

In convenience sampling method the researcher can collect the samples as per his

or her convenience. This is usually adopted when the population is unknown and

the area of study is very wide.

TOOLS USED FOR DATA ANALYSIS

The collected data were analyzed with the help of simple percentage

analysis, chi-square test and weighted average method.

Percentage Analysis

41


Percentage refers to a special kind of ratio in making comparison

between two or more data and to describe relationships. Percentage can

also be used to compare the relation terms the distribution of two or more

sources data.

Number of Respondents

Percentage of Respondent = x 100

Total Respondent

Chi-square Analysis

Chi-square is a non-parametric test of statistical significance for bi-variant

tabular analysis. A non-parametric test like chi-square is a rough estimate of

confidence. Chi-square is used most frequently to test the statistical significance of

results reported in bi-variant tables and interpreting bi-variant tables is integral to

interpreting the results of a chi-square test.

H0 = Null Hypothesis

The hypothesis to be tested is usually referred to as Null Hypothesis.

H1 = Alternative Hypothesis

If H0 is rejected it means that the data on the hand are not compatible

with the null hypothesis H0 but are compatible with some other hypothesis,

that is the Alternative hypothesis.

42


The chi-square method is the application of testing the significance difference

between observed and expected.

( Oij – Eij )2

Chi-square test =

Eij

Oij = Observed frequency of the cell in the i th row and j th column.

Eij = Expected frequency of the cell in the i th row and j th column.

Significance level = 5%

Degree of freedom = (R-1) (C-1)

Where as

O = Observed Frequency

E = Expected Frequency

R = No of rows

C = No of columns

Weighted Average Method

Weighted average methods are normally used in the comparison of two or

more activities regarding to the products. The result is on the basis of the value we

obtained. If the value of the weighted average is more effective.

Weighted Average = € WX / € W

Where as €WX = Multiply the weights by the variable X.

€W = Total of Weights.

43


44


CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

45


Data analysis refers to collection of organize information usually analysis the

result of experience, observation or experiment, or a set of premises. This may

consist of number, words or images, particular as measurement or observation of

set of variables.

Interpretation is a communication. It is telling a story. It is vital part of

how people experience the places there is it. The good interpretation will leave

your visitors felling connected, inspired and alive with curiosity.

3.1EFFECT OF MEDIA

Table 3.1

46


Sl. No Media No. Of Respondents Perce

ntage

1 Visual 70 40

2 Print 53 30

3 Audio 7 4

4 Displays 3 2

5 Banners 7 4

6 Brochures 35 20

INTERPRETATION

Result shows that visual media and print media influence customers

mostly and brouchers also attract the customers. About 40% were

influenced by visual media, 30% by print media, and 20% by brouchers.

Audio media, displays and banners attracted 4% and 2%.

Chart 3.1

3.2 DEALER DEMONSTRATION

47


Table 3.2

SL.

NO

ATTRIBUTES NO. OF RESPONDENTS PERCENTAGE

1 Excellent 35 20

2 Good 88 50

3 Satisfactory 15 30

4 Poor 0 0

INTERPRETATION

About 50% of customers respondent dealer demonstration was good while

30% demanded that the result was only satisfaction. And 20% commanded it to be

excellent.

Chart 3.2

3.3SUCCESS OF ADVERTISEMENT MESSAGE

48


Table 3.3

SL.NO ATTRIBUTES NO.OF RESPONDENTS PERCENTA

GE

1 YES 105 60

2 NO 70 40

INTERPRETATION

About 56% of customers commanded as discont as an important factor

influencing purchase decision than advertisement 40% and 4% gifts.

Chart 3.3

3.4. CUSTOMER SATISFACTION

49


Table 3.4

SL.NO ATTRIBUTES NO.OF RESPONDENTS PERCENT

AGE

1 Excellent 49 28

2 Good 98 56

3 Satisfactory 28 16

4 poor 0 0

INTERPRETATION

About 60% demanded that advertisement message has succeeded in

influencing the customers while 40% had negative opinion.

Chart 3.4

50


3.5 NEED FOR ADDITIONAL ADVERTISEMENT AND SALES PROMOTIONAL

ACTIVITIES

Table 3.5

SL.NO ATTRIBUTES NO.OF RSPONDENTS PERCENTAGE

1 YES 70 40

2 NO 105 60

INTERPRETATION

About 56% of customers were of the opinion that, the product provided

good quality while 28% commended it to be excellent and 16% it as only

satisfactory.

Chart3.5

51


3.6 CUSTOMER DEALER RELATIONSHIP

Table 3.6

SL.NO

DEALER

RELATIONSHIP

NO.OF

RESPONDENTS

PERCENTA

GE

1 CORDIAL 70 40

2 VERY FRIENDLY 53 30

3 HOSTLE 42 24

4 POOR 10 6

INTERPRETATION

About 40% of customers demanded on the need for additional sales

promotional and advertisement activities while 60% were satisfied with present

status.

Chart 3.6

52


3.7 SATISFACTION WITH SALES PROMOTIONAL ACTIVITIES

Table 3.7

SL.NO LEVEL OF

SATISFACTION

NO.OF

RESPONDENTS

PERCENTAG

E

1 EXCELLENT 17 10

2 GOOD 88 50

3 SATISFACTORY 70 40

4 POOR 0

INTERPRETATION

About 40% of the customers were of the opinion that the customers

relationship was cordial and 30% as very friendly, 24% as hostle. And 6%

commanded it as not very good.

Chart 3.7

53


3.8 DELIVERY MODE OF DEALER

Table 3.8

SL.NO DELIVERY MODE NO.OF

RESPONDENTS

PERCENTAGE

1 Prompt Delivery 105 60

2 Slightly Late 56 32

3 Very Late 14 8

INTERPRETATION

50% of customers were the opinion that the present sales promotional

activities were good and 10% commended it as satisfactory and other 10% as

excellent.

Chart 3.8

54


3.9 PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION

Table 3.9

SL.NO DETAILS OF

PAGE

NO.OF

RESPONDENTS

PERCENTAGE

1 First 70 40

2 Middle 17 10

3 Last 88 50

INTERPRETATION

50% of customers demanded print media advertisement as more attractive

and influencing on last and 40% were of the opinion on frist page and some

customers about 10% respond as middle page.

Chart 3.9

55


3.10 GIFTS GIVEN BY COMPANY

Table 3.10

SL.NO ATTRIBUTES NO.OF

RESPONDENTS

PERCENTAGE

1 Very Good 77 44

2 Good 63 36

3 Average 35 20

4 Bad 0 0

5 Very Bad 0 0

INTERPRETATION

About 60% commanded that they are excellently satisfied by the financial help

provided by dealer while 30% demanded it as satisfactory and 10% as good.

Chart 3.10

56


3.11 SATISFACTION WITH PRICE OF THE PRODUCT

Table 3.11


RESPONDENTS

PERCENTAGE

1 Highly satisfied 35 20

2 Satisfied 70 40

3 Moderate 49 28

4 Dissatisfied 21 12

5 Highly

Dissatisfied

0 0

INTERPRETATION

About 80% of the customers demanded advertisement to see more attractive

when used with sales promotional activity. And 10% were

not attractive and another 10% not sure.

Chart 3.11

57


3.12 DIRECTING MARKETING STRATEGY

Table 3.12


RESPONDENTS

PERCENTAGE

1 Very Good 84 48

2 Good 42 24

3 Average 21 12

4 Bad 14 8

5 Very Bad 14 8

INTERPRETATION

44% of customers opinion that gifts given by the company is very good, 36%

opinion that it is good and 20% opinion that it is average.

Chart 3.12

58


3.13 SATISFACTION WITH PRICE OF THE PRODUCT

Table 3.13


RESPONDENTS

PERCENTAGE

1 Highly satisfied 35 20

2 Satisfied 70 40

3 Moderate 49 28

4 Dissatisfied 21 12

5 Highly Dissatisfied 0 0

INTERPRETATION

40% of customers tells that they satisfied with price,20% are highly satisfied

with price, 28% are moderate with price and 12% are dissatisfied with price

59


Chart 3.13

3.14 CHI-SQUARE TEST FOR SIGNIFICANCE

1. Test the significance difference between Dealer relationship And

satisfaction with price

H0 : There is no significance difference between Dealer relationship And


H1 : There is significance difference between Dealer relationship And


Dealer relationship


Cordial Very

friendly

Hostile Poor Total

60


Highly satisfied 10 15 5 5 35

Satisfied 35 20 14 1 70

Moderate 20 15 13 1 49

Dissatisfied 5 3 10 3 21

Total 70 53 42 10 175

( Oij – Eij )

Chi-square test =

Eij

Significance Level = 5%

Degree of freedom = 9

Table Value = 16.919

Calculated Chi-square Value = 40.405

INFERENCE

61


It is identified from the above analysis that the calculated Chi-square is

greater than the table value. So, Null hypothesis is rejected. Hence there is

significant difference between Dealer relationship And satisfaction with price.

3.15 WEIGHTED AVERAGE TEST

Weighted average test for relationship between dealer relationship and


62


INFERENCE

The above table shows that satisfaction with price is first satisfactory factor and

dealer demonstration is the second satisfactory factor.

63

Opinion

Dealer

relationship

Opinion

Satisfaction

with price

Cordial 40 Highly satisfied 20

Very friendly 60 Satisfied 80

Hostile 72 Moderate 84

Poor 24 Dissatisfied 48

Calculated Value 196 Calculated Value 232

Weighted

Average

Value

49

Weighted Average

Value 58


CHAPTER 4

FINDINGS, SUGGESSIONS &

CONCLUSION

4.1 FINDINGS

64


1. Company produces more environmental friendly products to customers & also

try to attain maximum consumer satisfaction.

2. Company favour traditional line of sales promotion programmer like transporting

products directly to the shops.

3. Advertising of quality coconut & milk is less as compared to recent year’s ago.

4. Company provides discount coupons gift etc to the customers.

5. As a trend in our economy, numbers of farmers are on decreasing stage it will

affect the demand of cattle food.

6. Company faces competitor’s effectively through quality and effective sales

promotion program of the company.

7. Company always depends upon the middlemen for distributing goods, and then

never adopts direct marketing strategy.

8. Company is on developing stage with many of branches and products.

9. The whole office work is done through computerized technology.

10. Company uses process cum machines for production process and packing

(Automatic packing machine)

11. Direct and close supervision used by Hind Cosmetics.

12. Company factors horizontal communication by method of written

communication.

13. Company import new technologic machines from Italy, Germany for production

process.

4.2 SUGGESTIONS

65


1. Marketing department should concentrate more on palakkad district explore the

chances created by the opening of a new plant.

2. Strict lost control measure should be taken to reduce unnecessary over heads.

3. Make appropriate market study and introduce more innovations in sales.

4. Advertising through media should be used as effective sales promotion

program.

5. Direct marketing technique should be used for effective sales promotion

program.

6. Diversification of products should be used as the key to future growth.

7. The company should pay more attention to outside Kerala markets.

8. Customer retention measures should be enhanced.

4.3 CONCLUSION

66


The organizational study enables me to gather knowledge regarding the

working of an organization. The study has brought light to know the organization

as a whole. Different products and efficiency in working for attaining of a common

goal.

67


QUESTIONAIRE

1. Name of the Respondent:

2. Area of the respondent :

3. Age of the respondent :

(a) Below 20

(b) 20 to 29

(c) 30 to 39

(d) 40 to 49

(e) 50 & above

4. Gender :

(a) Male

(b) Female

5. Occupation

(a) Student

(b) Employer

(c) Professional

(d) House wife

(e) Others

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6. To which income class, do you belong to

(a) High Income class

(b) Middle Income class

7. To which income class, do you belong to

(a) High Income class

(b) Middle Income class

8. from which source, do you come to know about the product

(a) Visual media

(b) Print media

(c) Audio media

(d) Displays

(e) Banners

(f) Brochures

9. Comment on dealer Demonstration

(a) Excellent

(b) Good

(c) Satisfactory

(d) Poor

10. Rank the following factors on the basis of influence of the purchase decision

(a) Advertisement

(b) Cash Discount

(c) Gifts

(d) Coupons

69


(e) premium

11. Has the advertisement message succeeded in building desirability and

believability with respect of the product in your mind

(a) Yes

(b) No

12. Your satisfaction level on product quality

(a) Excellent

(b) Good

(c) Satisfactory

(d) Poor

13. Do you think that Advertisement and sales promotional activities are need as

for increasing sales volume

(a) Yes

(b) No

14. Opinion on Customer Dealer relationship

(a) Cordial

(b) Very friendly

(c) Hostile

(d) Poor

15. Sales promotion activities offered by the firm

(a) Excellent

(b) Good

70


(c) Satisfactory

(d) Poor

16. Deliver made of dealer

(a) Prompt delivery

(b) Slightly late

(c) Very Late

17. Maximum attention from print media is obtained on advertisement in

(a) First page

(b) Inner page

(c) Last page

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BIBLIOGRAPHY

BOOKS

1. Marketing Management : Philip Kolter – Hall Inc. Tenth Edition,

September 2001.

2. Principles of Marketing : Richard j. Semenik and Gary J. Bamoss

South West publishing Company, First Edition, 1993.

3. Marketing : William G. Zikmund and Micheln D Amico

South West publishing Company, fourth Edition, 1993.

4. Research Methodology : C.R Kothari Wishwa Prakashan, Second

Edition, 1990.

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Documents

MBA Project Report-Sales Promotion