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TERM PAPEROF

SALES AND PROMOTION

Topic- IMC PLAN FOR MILK

Submitted To- SD . Navjit Singh Submitted by-Rimpi MehtaLect, LSB,LPU., Roll No- R1811A01

Regd No. 10812432Section 1811

Serial No. 28M.B.A IIIrd (Sem)


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ACKNOWLEDGEMENT

I am grateful to thank our Campus Head for giving me this great

opportunity to do my project.

I also extent my thanks to Mr. Navjit Singh, faculty guide who has

given me moral support to do my project work. It also extend my

thankfulness to my beloved parents and friends for their

continuous encouragement at every moment


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INDEX1.Acknowledgement

2.Executive summary

3.Introduction to marketing

Understanding marketing

Definition of marketing

The marketing mix

Product

Price

Place

Promotion

Understanding marketing communication (Promotion)

Advertisement of milk company

Definition of sales, promotion

Advertisement

The IMC planning process

The marketing plan

The IMC plan

Swot analysis

Determining the budgetConclusion


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EXECUTIVE SUMMARY

This project is about the IMC used by the Milk company. It includes the allthe promotional tools used by the company for marketing communication. Inthis we are using different sales and promotion techniques for the sale of our company milk and building a strong image of our company product in theminds of our customers. Special kinds of price discounts , samples are givento

the customers and traders for the strong positioning of our product in themarket.

The name of milk product isthe pure milk,and the tagline of our milk product is the real milk of India.

The main objective of our company is to provide better quality to our customers as compared to our competitors and building a good image of our

product in the minds of the customers.

By providing a better quantity to our customers our company will generate arevenues, which our company would further invest for increasing our

product line. In this we it is discussed that what are the different kinds of four Ps of our company . What is the Price of our milk , What are thedifferent kinds of promotional tools used by our company for the sale of our

product . Different kinds of strategy are used by our company for increasingrevenues from our milk product. At the end estimation of budget is done for knowing the expected expense done by the company for our milk product.


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INTRODUCTION TO MARKETING

UNDERSTANDING MARKETING- Before we begindiscussing marketing communication, We must take a moment to understandits higher order discipline ,viz, marketing. Marketing is a composite of manyactivities related to customers need fulfillment and satisfaction. Marketingincludes many tasks right from identifying consumers needs and wants tofulfilling them .

DEFINITION OF MARKETING- The American MarketingAssociation defines marketing as the process of planning and executing the

conception, pricing, promotion and distribution of ideas, goods and servicesto create exchange that satisfy individual and organizational objectives.For marketing to be effective ,it requires successful coordination of all theseactivities at different levels in the organization.

THE MARKETING MIX Various maketing activities can beclassified into four general categories,viz,Product, Price, Place( distribution )

and promotion, which are populary known as the 4Ps of marketing or marketing mix.

PRODUCT - This includes all the activities related to the conception and planning of actual product that fulfills consumers needs and wants, i.e,decisions regarding product quality , designs, features , sizes, varieties,

brand name, warranty, gurantee and other services.

In this project the product is milk. The name of our company is the PUREMILK .Milk is provided in different packages of different sizes i.e,1 kg andhalf Kg packets. Pice of is 28 Rs and Half Kg product is Rs14.


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PRICE - This area deals with activities related to setting the price for the product. Decisions regarding retail and wholesale prices, margins of channelmembers, discounts and allowances, credit terms, payment period , etc. are

the part of pricing function of marketing mix. The 1 kg of milk Packet is of Rs. 28 and Half Kg is of Rs 14.

PLACE- Placement or distribution refers to all activities involved ingetting the product to the final consumers. Decisions under this P relatesto the distribution channels, market coverage, locations , inventory,transportation, etc. The main target market of our milk product is thePUNJAB STATE.

As the people of Punjab are very health conscious and believe in better quality , So, our companies main target market is the population of Punjab.

Our company would sell our milk product to all the retail outlets, Sweetshops, Dairy shops, in all over the Punjab.

PROMOTION - Promotion refers to all the activities concerned withinforming consumers about an organizations offering , persuading them to

buy it, and reminding them it from time to time. Activities like advertising,sales promotion, directing, direct marketing, public relations, personalselling and other conventional media to comprise the P of operations. In

promotion of our milk product we will use different kinds of promotionalactivities like advertising, direct marketing to the consumers and retailoutlets..

UNDERSTANDING MARKETING


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COMMUNICATION(PROMOTION)

It involves all the activities concerned with effectively communicatingProduct information to select target audiences. A target audience is a group

of consumers to whom marketing communication messages is directed.The prime purpose of communication is congnitive, affective or behaviouralresponse, whatever that desired response may be. In other words, thecommunicator might want to imprint something in consumersmind(cognitive response), change in attitude(affective response) or get theconsumer to act (behavioral response).

ADVERTISEMENT OF MILK COMPANY (PUREMILK) - The word advertising is derived from its Latin root ad verterWhich means to turn towards or to attract attention to.

DEFINITION OF ADVERTISEMENT- Advertisement is the any paid formof non- personal presentation and promotion of ideas or products by anidentified sponser.The main objective of advertisement can be categorized based on whether their goal is to-InformPersuadeRemindReinforceIn our company of milk product , we can use the Brand Building

advertising that focus on creating product awareness and brand buildingimage.It is strategic and hence relatively long term in nature. We use thetagline pure milk, the real milk of India.


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Retail advertisement can also be used by the retailers on the local scale.It isaimed at building store traffic, creating a distinctive image for the store andmore often than not, at triggers sales in short run. Retail advertisement ismore informational, giving details about the outlets and its offerings.

E.G--- The retail outlets where we sell our milk would put down smallnotice on their blackboards about our product i.e , it is available there , its

prices, it will help in attracting more and more customers.

DIRECT MARKETING- We will sell our milk also throughdirect marketing. Direct marketing is a interactive system of marketingwhich use one or more advertisement media to effect a measurable responseor transaction at any location. The advantage of direct marketing is that in results in quicker sales, better targeting and relationship building and less competition and from this wewill come ,more close to our customers. In this case we will come moreclose to our customers and will get the perception of the customers towardsour product.

TELEVISIONS- Our company will make a advertisement of our companymilk product and telecast it on the T.V. Special kind of creative

advertisement is made by the company for creating interest of the customerstowards our milk product. The main aim of our television advertisement toaware people about our milk product.

INTERNETAs we know in today scenario, Internet is having a special place in the minds of the people. Our company Will also make Our websitefrom which the interested people will get the important information aboutour product and about the product benefits and quality.

The main benefit of Internet communication is that it is directed directlytowards the target market . The customers who are interested will easily gothrough our website and get knowledge about our product. It is totally

personalized and up to date mechanism for attracting customers towards our


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company. Through it customers will also give their experiences andsuggestions for our milk product.

DIFFERENT KINDS OF SALES ANDPROMOTIONS USED BY THE COMPANY

DEFINITION OF SALES AND PROMOTION--- Sales promotion consistof a diverse collection of incentives tools, mostly short term , designed tostimulate quicker and greater purchase of a particular product or services bythe consumers or the trade.

Types of sales promotion used by our company- Our company will useddifferent type of sales promotion activities for increasing sales of our

product and awaring the customers towards our project.Consumer promotions are those that are directed to the consumers. The objective of consumer promotion is to offer the consumers some added benefit to enticehim to buy the product.Ths is normally done in addition to theadvertisement. Whereas advertising has a long run effect on the purhase

behaviour , connumers promotion have more of a short term effect.

SAMPLING- This form of promotion ifs found to be especially useful whenone is introducing a product for the first time. Our company will also givessample to the target customers for checking out their reactions towards our

product The samples are either distributed at the retail outlets and residencesof the final customers.Our company also request the consumers to fill up aquestionnaire after the sample is used and thus are able to get feedback aboutour product that whether the customers like it or not. But the sampling ishowever one of the most expensive method of consumer promotion andthere is no gurantee that the customers will actually go and buy the sale pack of our product.


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PRICE OFF-- This is essentially offers the consumers the product at lessthan the marked maximum retail price. The purpose of this is to induce theconsumer to try our milk product immediately.

QUANTITY DEALS- In the quantity deals , our company may providemore quantity in a same price for attracting the customers towards our

product. Like our company would increase the quantity at the underlying price of our product. This will helps us in attracting more and morecustomers towards our milk product.

DISCOUNTS- Our company will give discounts to our customers. Like if The customers buy four five liter milk or more than it or milk in a bulk , we

will give them discounts.

OUT PRODUCED GIFTS- In this case the gift item is attached to the product from outside. This will attract customers towards our product.Like we will give ONE PLASTIC GLASS free with every 1litre milk packetfor attracting customers or increasing our sales.

CONSUMERS CONTEST- These are run to create an excitement amongstthe target segment. Contest are normally advertised extensively and test

more often than not the knowledge of the consumer on the product or someother skills. We will involve the completion of a sentence , which may say that

I LIKE A PURE MILK BECAUSE OF -------------------.Prizes for this contest would be very excited for creating interest of theconsumers towards it. Different cash prizes, travel allowances will be givento the winners.


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TRADE PROMOTIONS- Trade promotions are those that are run to elict a better and quicker response from the trade. These can be done whenintroducing a new product to ensure enhanced stock preceeding a goodseason , or block a competitor. Trade promotions are normally part of of

push strategy , the assumptions here are being that if the trader has a excessstocks bought trade scheme he will be motivated to push the product inorder to recover his investment as soon as possible .There are several tools for trade promotions

DEALERS GIFTS- For the sake of building a strong image in the minds of the dealers our company will also provide different kinds of dealers gifts andrewards so that they feel motivated and do more hard work for increasingsale of our milk product . If we provide gifts and rewards to our dealers they

feel that our company is taking care of them and they are having a great position in our company.

Different kinds of travel allowances , gifts, rewards are provided by our company. Special kinds of refrigerator are to be provided by the companyfor preservation of milk .On the special events like on new year, Diwali,gifts are given to the traders for getting them loyal to our product.

DEALER CONTEST- Dealer contest are organized by our company for changing our traders as a loyal traders of the company and motivating them.Special kinds of rewards , gifts are given by the company for the winners.

POINT OF SALE MATERIALS- Our company should also provide point of sale material to our dealers and traders. Special kinds of refrigerators, boxesare provided by our company for the better preservation of our milk productin the retail stores, dairy shops and sweet shops.

SHOP BOARD PAINTINGS- Special kinds of hoardings, sign boards arefixed on outside and inside the shops, retail stores, dairy shops, sweet shops

for attracting more and more customers and providing information to thecustomers that the product is provided by this particular shop.


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DEALERS DISCOUNTS For making our traders more loyal to our company special discounts are arranged by our company. The traders whowill purchase our milk product in the bulk or in a continous manner , specialdiscounts are provided by the company to them by the company.

DEALERS MEET- Special meetings are arranged by the company for doingmeeting with the dealers, traders as they are more closed to the customersand they are having more information about the need, wants of thecustomers. The meetings are organized after every one and two months for meeting more information about our product and customer perception aboutour product.


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INTRODUCING NEW TASTE OF MILK

PUREMILK(THE REAL MILK OFINDIA)

MADE IN INDIAManufactured BY- Pure Dairy

Milk CompanyMUMBAI

Phone No-12345678


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THE IMC PLANNING PROCESS Marketing communication is one of the four tools of marketing mix. Hence,it is based on the strategic laid down in the marketing plan, which in turn isderived from overall business plan. Strategic planning is the process of devising a plan of action for meeting an organization goals with its limitedresources and in the wake of varying market conditions. Strategy is allowedan organization to focus on limited sources on the best availableopportunities, thereby achieving sales, profits and competitive advantagegrowth and a sustainable competitive advantage.

There are three primary components of a strategic plan-

OBJECTIVES- What a company wants to achieve. Objective dictate thecourse of action to be taken. E.G The main objective of our company is to

provide better services to the customers. Our main target market is the retailsshops, sweetshops, and dairy shops are there in the Punjab.STRATEGYA long term plan of action designed to achieve theobjectives. The strategy of our company is to expand the market in ruralvillages and also increase the customers.

TACTICS- Immediate actions with resources at hand, short-term isolatedevents to take advantage of opportunities at hand. E.G Company willreduce its prices as compared to others competitors. Like the selling price of 1 Kg Milk Product is Rs 24 and Half Kg milk product is Rs. 12. The current

price of milk of our competitors are 1 Kg is of Rs 28 and half Kg packet isRs 14. Our company will also provide discounts to the retailers ,wholesalersif they purchase our product continuously or in the bulk.


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THE MARKETING PLAN

The IMC Planning process begins with the review of marketing plan.A marketing plan is a written document that details the marketing objectives,

strategies and tactics foe an organization, product or brand, and guides themarketing efforts. It is based on an in depth understanding of the firmsinternal and external environment- the industry, the competition, the productcurrent positioning , its customers, etc.

THE IMC PLAN- Following are the steps involved in the IMC planning process.

SUITATIONAL ANAYSIS - Like the marketing plan , the promotional plan also begins with an analysis of factors that are relevant to

Promotional suitation.

1. PAST PROMOTIONAL SITUATION- Review of campaignincluding their objectives , audiences, strategies, tools, media, and

budgets.2. PRODUCT SITUATION - Our company will analyse that what are

products which are present in our product category. Assessment of product benefits, quality, packaging, price, image, availability,features and unique selling points.

Like our product is the milk our company is providing better qualitymilk to our customers as compared to our competitors.

Price of product is that 1litre milk packet is of Rs 28 and Half Kg is of Rs 14.

Avalibility- Our milk product is available at all the sweet shops, dairy shopsand all the retail stores, which are having conditions for protection of milk.


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IMAGE- Our company have to made a unique image in the minds of our customers. So for this we have to chose features of our product so that our customers would easily remember our product.The mane of our milk product is PURE MILKAND THE TAGLINE OF OUR PRODUCT IS THE REAL MILK OF

INDIA

AUDIENCE SITUATION- An analysis of audience of promotion buyers,influncers, decisions makers their demographic profile and psycographic

profiles, behavioural patterns and life styles, factors influencing their products purchase decisions , buying patterns.

COMPETITIVE SITUATION- Promotional strategies adopted by direct andindirect competitiors. In our product our main competitors are the other milk

companies like Verka, Amul. Through tjis we would analyse that what is the position of our competitors in the market, what are their strengths, weakness,their product, price etc.

Regulatory situation- Regulatory authorities governing the product categoryand media , and rules and regulations of the government which our companyhas to follow.Like our company has to see that what are the factors which we have tofollow for sale of our milk product in the market. Whether we have the getlicense from the government and have to registered our company to them.

Following are the some common area of analysis.A well-known practice for analyzing and summarizing the suitation is calledSWOT analysis.

STRENGTH

Demand profile Absolutely optimistic demand

Margins- Quite reasonable, even or packed liquid milk.

Flexibilty of Product mix- Tremendous with balancing equipments.


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Availability of raw material- Abundant more than 80% of the milk productsare flowing from the unorganized sector.which requires proper channelisation.

Technical margins- Professionally trained technical human resourcemanpower is built in our company.

WEAKNESS

PERISHABILITY- The main weakness of our milk product is its persihability. Special Conditions are required so that our milk cannot getspoiled. Pasteurization has overcome this weakness partially. Surely manynew process will follow to improve milk quality and for extending its shelf life.

LACK OF CONTROL OVER YIELD- Theortically, there is a little controlover the milk yield. However , increased awareness of developments likeembryo transplant, artifical insemination and properly managed animalhusbandry practices coupled with the higher income to rural milk producersshould automatically lead to improve in milk yield.

LOGISTICS OF PROCUREMENTS- Because of bad roads and inadequatetransportation facility make milk procurement problematic. But overalleconomic improvement in India, will lead to the improvement in theselogistic problems.

PROBLEMATIC DISTRIBUTIONS- All is not well with the distribution.There is a need of emergence of a cold chain linking the producer to

refrigerator at the consumers home.

COMPETITION- Now a days competition is very hard in every field. Our milk company may also face competition because of new entrants in themarket.Because of huge competition the market is large is enough for us tocarve out their niche market.We will overcome our competitors if we

provide better services to our customer than our competitors.


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OPPTURNITIES FOR OUR COMPANY

Failures is never ending final and success never ending

VALUE ADDITION- We will add value to our milk products so thatcustomers would buy product and will attract towards our product. Our company will add value added products like shikhand,ice-cream, paneer,khoa, flavoured milk, dairy sweets,etc, this will lead to a greater presenceand flexibility in the market place along with oppturnities in the field of

brand building.

Addition of cultural products like yoghurt and cheese tends to furthetstrength both in term of utisation of resouces and presence in the market

place. A lateral view opens up oppturnities in milk proteins through casein,caseinates and other dietary products, further opening up .

Export OppturnitiesIf our product would get position in the market wewill expand our market in the foreign countries also. Export oppturnitieswould be seen for increasing our customers.Our company would generate

export potentials like various companies i.s- Amul is expoting their productsin foreign countries like Bangladesh, Sri Lanka.

Yet another aspect can be addition of infants foods,geriatric fods andnutritional


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THREATS

Milk VENDORS- Today the milk vendors in the unorganized sector areoccupying the pride , the place in the industry . Organised discrimination of information about the harm that they are doing to producers and consumersshould see steady decline in their importance.

Delicensing in the Indian Dairy Industry has been attracting a large number of entrepreneurs . But the success of them depends on the factor such asefficient economic facilities and innovation in the market place.

2. DETERMINE THE PROBLEM OR OPPTURNITIES- The suitationanalysis done in step 1 helps us to identify problems or oppturnitiesconcerning communications. IMC plans can solve problems like awarenessor knowledge, negative attitude, misconception about our product .I n thiscase we have to sell our milk product to the customers or have to aware thecustomers towards our product.

3. DETERMINE COMMUNICATION OBJECTIVES - Communicationobjectives flow marketing objectives. Our company will use differentcommunication media for increasing the awareness of our customerstowards our product. Like we can use T.V, radio, print media,hoardings, bill board to aware customers towards our product.

The main objective of our different kind of communication media issame-To create awareness of our milk product

To increase sale of ur milk product

To build a good image of our product in minds of the customers.To provide better qualities to our customers.

DETERMINE THE BUDGET - After setting the communicationobjectives, our company has to estimate how much we are willing to spendon the promotional activities. The company has to consider various issues


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like how much the programme will it cost, how much it can afford howmuch competitors are spending.

Our company can make the budget by analyzing the sales expense or estimating sales in the one territory.The Steps involved in the estimating the budget is as follows.

PRODUCT TARGET-The first step in the analysing the budget is to analsyethe target market that where we have to sell our product and at which region.Like our company is targeting the State Punjab .

Our main target market is the sweet shops, dairy milk shops, retailers of the punjab and population of the Punjab. We have to sell our milk product there

so that it would reach to all our customers. Special trade discounts, specialoffering are provided by our company to our traders, retailers so that feelmotivated and helps us in creating awarness our product towards our

product.Like special kinds of refigerators and other rewards are given by our

company to the retailers, dairy milk shops and sweet shops for preservingour milk .

SALES BUDGET OF OUR PRODUCTFor getting information about our sale expenese, we estimate the expenseoccur by our company for selling it in the one small town , Dasuya.

For selling our product in the Dasuya city we recruit five sales persons.

There name are as follows-1. Mr. Sohan singh2. 2Mr. Mandeep Singh3. Mr. Akash Kumar 4. Mr. Ram Kapoor 5. Mr . Yashdeed

We are sending our five people in different regions of Dasuya City.Like onein North Zone, One in south zone , One in East Zone, one in west zone. Andone in central zone.

The main benefit of sales target is


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1. Inreasing market coverage because sales persons are more close totheir customers.They know where they have to go , who are their customers, how they have to communicate with their customers.

2. It also controls selling expense and time because sales personshave to know where they have to go and at what time. Wstage of time and mone should be eliminated by this sales territory medium.

3. It will helps in enabling better evaluation of sales force performance.

4. It will customer relationships. Because customers feels that they aremore close t company and company is providing better services tothem.

5. It helps in increasing sales and increasing profits and revenues of the company.

MANAGEMENT OF TERRITORIALCOVERAGE

In the travel plan of our company customers we will do sheduling of our sales persons in a straight line manner, because through it all thesales persons start their daily schedule from the headoffice from their they get the information about their daily schedule and went to their assigned places.

TIME MANAGEMENT TOOLS - The timing of our sales personsstarts from the morning at 9:00 A. M. In the morning they have to come tothe office for betting their daily schedule . At 10: 00 A.M they have to starttheir daily schedule and had to go their assigned places. In the evening at5:00 P.M they have to get back in the office and had to report the headofficeabout their daily schedule , how was their day and how was their experienceof the whole day. At 2:00 clock, they are having their lunch for one hour.


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ESTIMATION OF THE BUDGET ON THE BASIS OFEXPENSE DONE ON ONE TERRITORY

Salary of one sales persons in 1 month- Rs.15000

Salary of 5 sales persons- 150000 into 5= Rs 75000Telephones charges- 1000into 5= Rs 5000

Vehicles Charges - 1000 into5 Rs 5000Daily meals charges----1000 into5= Rs 5000Advertisement expense on T.V Rs 90,000Expense on print media and other Rs. 3,00,000

Medias like radio, internetRaw materials Expenses Rs. 5,00,00Other Miscellaneous expenses Rs .15,00,000

Total expense Rs. 24,95,000

IMPEMENTATION OF THE PLAN - After making all thisIMC plan we will Implement our planning for getting results andintroducing our product in the market. Different kinds of communicationtools are used by our company , for getting revenues and building a strongimage of our product in the market.

MONITOR/EVALUTION OF PERFORMANCE-After implementing, the whole IMC plan, we will evaluate our

company performance to measure the expected results with theactual result and find whether our company IMC plan was able to build a strong image of our product. Different kinds of surveys, areconducted by our expertise to check the process of our IMC andmonitoring the impact of IMC on the market and consumers mind.


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CONCLUSION

From all the above information it is cleared that IMC is a very importantaspect in introducing our product in the market and getting a strong positionfor our product. The tools of IMC like advertisements, direct marketing arehelpful for our company for establishing a strong position in the minds of the customers and IMC provide assistance for the company for achievingtheir goals and objectives. These are the ways for fulfilling our objectivesand provides us a path for fulfilling our objectives. By choosing differenttypes of tools we convince our customers and attract our consumers towardsour product a, and as a result of which we generate lots of revenues.


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BIBLOGRAPHY-1 http:/marketing about.com/ad/marketing glossary

2 www the free dictionary.com/milk.3 www scrub com/doc/17660303/nestle-imc -plan.4 http freedictionary.com/milk/4540.5. www.imcplanning.comp.india.com6.www//marketing.about.comp//marketingglosary//imc.htm7 www.exampleessay.com.html

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