MBA Project Report-Sales Promotion

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

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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

*******************************************************************, *****************************************S.S.M Komarapalayam,

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

College and

our

beloved Principal

of

Engineering,

*******************************.,

***************, 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 1.1 About the study

2

1.2 About the industry

3

1.3 About the company

6

2. Main theme of the project 2.1 Objectives of the study

22

2.2 Scope and limitations

23

2.3 Review of literature

25

2.4 Methodology 3. Analysis & Interpretation

27 34

4. Findings, Recommendations and Conclusion

5

4.1 Findings

53

4.2 Recommendations

54

4.3 Conclusion

55

Appendix

56

Bibliography

59

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LIST OF TABLES

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

S.NO

NO

1

3.1

DESCRIPTION

201 PAGE 1 NO

EFFECT OF MEDIA 27 DEALER DEMONSTRATION 2

3.2

29 SUCCESS OF ADVERTISEMENT MESSAGE

3

3.3

30 CUSTOMER SATISFACTION

4

3.4

32 NEED FOR ADDITIONAL ADVERTISEMENT AND

5

3.5

SALES PROMOTIONAL ACTIVITIES

34

CUSTOMER DEALER RELATIONSHIP 6

3.6

7

3.7

8

3.8

9

3.9

10

3.10

35 SATISFACTION WITH SALES PROMOTIONAL ACTIVITIES

36

DELIVERY MODE OF DEALER 37 PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION

38

GIFTS GIVEN BY COMPANY 39 SATISFACTION WITH PRICE OF THE PRODUCT 11

3.11

12

3.12

41

DIRECTING MARKETING STRATEGY

42

43 13

3.13

SATISFACTION WITH PRICE OF THE PRODUCT

CHI-SQUARE TEST FOR SIGNIFICANCE 14

3.14 7 WEIGHTED AVERAGE TEST

15

3.15

44


LIST OF CHARTS

8

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S.NO

CHART NO

1

3.1

DESCRIPTION

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EFFECT OF MEDIA

2

36 DEALER DEMONSTRATION

37

SUCCESS OF ADVERTISEMENT MESSAGE

38

CUSTOMER SATISFACTION

39

NEED FOR ADDITIONAL ADVERTISEMENT AND

40

3.2

3

3.3

4

3.4

5

3.5

6

SALES PROMOTIONAL ACTIVITIES CUSTOMER DEALER RELATIONSHIP

41

SATISFACTION WITH SALES PROMOTIONAL

42

3.6

7

3.7

8

ACTIVITIES DELIVERY MODE OF DEALER

43

PAGE IN PRINT MEDIA TO GET MAXIMIUM

44

3.8

9

3.9

10

3.10

GIFTS GIVEN BY COMPANY

45

11

3.11


46

12

3.12

ATTENTION

47 DIRECTING MARKETING STRATEGY


48

3.14

CHI-SQUARE TEST FOR SIGNIFICANCE

49

3.15

WEIGHTED AVERAGE TEST

13

3.13

14 9 15

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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.

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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

1.1

INTRODUCTION ABOUT THE STUDY The role of selling has become more complex because

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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 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.

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1.2

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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. 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. 14


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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! 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.

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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. 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 16


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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 25th 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 in the terms of production efficiency in animal feed section. This is the 6th 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.

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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.

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

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the

largest

volume

sales

with

a

single

brand

name

in

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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

Chief General Manager of the company is Mr. Anand Menon. Mr. R. Sankaranarayanan is the secretary-cum-chief finance manager.

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ORGANISATION STRUCTURE

BOARD OF DIRECTORS

MANAGING DIRECTOR

MARKETING MANAGER

SALES REPRESENTATIVES

PRODUCTION MANAGER

SUPERVISOR

MACHINE OPERATORS DISTRIBUTORS WORKERS

21

FINANCE MANAGER

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

Manager

Supervisor

Store Keeper

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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

Production Manager

24

Supervisor


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Workers

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

Accounts Manager

25

Senior Accountant Accountants


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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

R & D Manager

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Workers

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

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Manager

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

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Manager

Workers

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.

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CHART

Marketing Manager

Assistant Manager

Sales representatives

Area Manager

Agency

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.

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CHART

Manager

Staff

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. 31


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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.

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: 33

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The study on effectiveness of sales promotion and advertising activities with special reference to Hind Cosmetic, palakkad. Secondary Objective: 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

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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 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.

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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 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.

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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 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 37


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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. 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.

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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 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. 39


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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.” 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

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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: 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: 41


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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. 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. 42


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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

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

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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. 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% 44


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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.

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CHAPTER 3 DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION 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.

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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.

3.1 EFFECT OF MEDIA

Table 3.1

Sl. No

48

Media

No. Of Respondents

Perce


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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 Table 3.2 49


SL.

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ATTRIBUTES

NO. OF RESPONDENTS

PERCENTAGE

NO 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

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Table 3.3 SL.NO 1 2

ATTRIBUTES YES NO

NO.OF RESPONDENTS

PERCENTA

105 70

GE 60 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

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Table 3.4 SL.NO 1 2 3 4

ATTRIBUTES

NO.OF RESPONDENTS

PERCENT

49 98 28 0

AGE 28 56 16 0

Excellent Good Satisfactory poor

INTERPRETATION About 60% demanded that advertisement message has succeeded in influencing the customers while 40% had negative opinion. Chart 3.4

3.5 NEED FOR ADDITIONAL ADVERTISEMENT AND SALES PROMOTIONAL ACTIVITIES 52


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Table 3.5 SL.NO 1 2

ATTRIBUTES YES NO

NO.OF RSPONDENTS 70 105

PERCENTAGE 40 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

3.6 CUSTOMER DEALER RELATIONSHIP 53


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Table 3.6

SL.NO 1 2 3 4

DEALER

NO.OF

PERCENTA

RELATIONSHIP CORDIAL VERY FRIENDLY HOSTLE POOR

RESPONDENTS 70 53 42 10

GE 40 30 24 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

3.7 SATISFACTION WITH SALES PROMOTIONAL ACTIVITIES

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Table 3.7 SL.NO

LEVEL OF

NO.OF

PERCENTAG

1 2 3 4

SATISFACTION EXCELLENT GOOD SATISFACTORY POOR

RESPONDENTS 17 88 70

E 10 50 40 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

3.8 DELIVERY MODE OF DEALER Table 3.8 55


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SL.NO

DELIVERY MODE

NO.OF

PERCENTAGE

1 2 3

Prompt Delivery Slightly Late Very Late


60 32 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

3.9 PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION Table 3.9 56


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SL.NO

DETAILS OF

NO.OF

PERCENTAGE

1 2 3

PAGE First Middle Last


40 10 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

3.10 GIFTS GIVEN BY COMPANY Table 3.10 57


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SL.NO

ATTRIBUTES

NO.OF

PERCENTAGE

1 2 3 4 5

Very Good Good Average Bad Very Bad

RESPONDENTS 77 63 35 0 0

44 36 20 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

3.11 SATISFACTION WITH PRICE OF THE PRODUCT Table 3.11

58


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SL.NO

ATTRIBUTES

NO.OF

PERCENTAGE

1 2 3 4 5

Highly satisfied Satisfied Moderate Dissatisfied Highly


20 40 28 12 0

Dissatisfied 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

3.12 DIRECTING MARKETING STRATEGY Table 3.12 SL.NO 59

ATTRIBUTES

NO.OF

PERCENTAGE


1 2 3 4 5

Very Good Good Average Bad Very Bad


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48 24 12 8 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

3.13 SATISFACTION WITH PRICE OF THE PRODUCT

Table 3.13

60


SL.NO ATTRIBUTES

NO.OF

201 1

PERCENTAGE

RESPONDENTS 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

Chart 3.13

3.14 CHI-SQUARE TEST FOR SIGNIFICANCE 1. Test the significance difference between Dealer relationship And satisfaction with price

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H0 : There is no significance difference between Dealer relationship And satisfaction with price H1 : There is significance difference between Dealer relationship And satisfaction with price

Dealer relationship

Cordial

Very

Hostile

Poor

Total

friendly satisfaction with price

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

62


Significance Level

= 5%

Degree of freedom

=9

Table Value

= 16.919

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Calculated Chi-square Value = 40.405 INFERENCE 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 satisfaction with price 63


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Dealer relationship Opinion

Satisfaction Opinion

with price

Cordial

40

Highly satisfied

20

Very friendly

60

Satisfied

80

Moderate

84

Dissatisfied

48

Calculated Value

232

Hostile Poor

72 24

Calculated Value

196

Weighted Average

Weighted Average 49

Value

58

Value

INFERENCE The above table shows that satisfaction with price is first satisfactory factor and dealer demonstration is the second satisfactory factor. 64


CHAPTER 4 FINDINGS, SUGGESSIONS & CONCLUSION

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4.1 FINDINGS 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. 66


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4.2 SUGGESTIONS 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.

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4.3 CONCLUSION 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.

68


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)

69

Student

:

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(b)

Employer

(c)

Professional

(d)

House wife

(e)

Others

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

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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 (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 71


(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 (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. 73


4.

Research Methodology

Second Edition, 1990.

74

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: C.R Kothari Wishwa Prakashan,

MBA Project Report-Sales Promotion

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