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CHAPTER 1
INTRODUCTION
The business world today is a world of competition. A business cannot survive if its
products do not sell in the market. Thus, all marketing activities are undertaken to
increase sales. Sales promotion is one of the key elements of promotional mix which
plays a vital role in implementation of market strategy.
Producers may spend a lot on advertising and personal selling. Still the product may
not sell. So promotion schemes need to be offered to attract customers to buy the
product. Thus, sales promotion is important to increase the sale of any product.
Promotions schemes include incentive offering and interest creating activities which
are generally short term marketing events other than advertising, personal selling,
publicity and direct marketing. The purpose of promotion schemes is to stimulate,
motivate and influence the purchase and other desired behavioural responses of the
firms customers. Promotions schemes are fairly complicated and are a rich tool of
marketing, with innumerable creative possibilities, limited only by the imagination of
promotion planners. Promotion is an important and powerful tool of marketing. The
aim of promotion is goal-oriented to achieve sales/marketing objectives, which are
short-term and immediate. The promotion schemes include Discounts, coupons, free
samples, special packs allowances, cooperative advertising, continuity programmers,
demonstrations, exchange offers.
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CHAPTER 2
INDUSTRY AND COMPANY PROFILE
2.1 INDUSTRY PROFILE
The Sector Notebook series is a unique set of profiles containing information for
specific industries and governments. Unlike other resource materials, which are
organized by air, water and land pollutants, the Notebooks provide a holistic approach
by integrating processes, applicable regulations and
other
relevant
environment
information.Booming
2.2
INTRODUCTION OF COMPANY
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The manufacturing activity extended in the area of more than 1 lakh sq. ft. located at
logistically ideal site i.e. Palghar, the outskirts of Mumbai. The company has a
manufacturing capability of more than 5 lakh books per day with the help of state of
the art automatic German technology machinery in combination with Indian
technology machinery and requisite infrastructure in place, which makes an ideal mix.
The company has state of the art machines with fully automatic exercise books line
and advanced machinery. 'Sundaram' brand paper stationeries are popular in domestic
market as well as in the international market. The company exports its products to the
Middle East, U. S. A. and major African countries. To meet customers' requirements
viz. size of the product, quality of the paper, design of the cover, etc. the company
undertakes extreme precaution.
Sundaram Multi Pap Ltd. has a very wide demand in the Domestic as well as in the
International Market. It has sufficient plant & machinery, to cope up with the
increasing demand in the export as well as the domestic market.
The company has imported a German plant to fulfil the demand of their customers.
Sundaram tries to provide good quality and square back exercise book to its foreign
customers.
Achievements/ recognition:Best Export Award for the year 2007-08
Product portfolio:
Sundaram' is the only company across India with widest range of school paper
stationery products in its product basket which suites to each and every class of
student in domestic market and also at the international front.
Local:
Long Exercise Book- Friendly,
Long Exercise Book Cool,
Long Exercise Book Winner,
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A4 Single Colour
Exercise Book
Ruled/Square
Paper Typing
Duplicate Paper
Copier Paper/Multi Purpose Paper
A4 Locked
Spiral Notebook
Locked Spiral
Shorthand Notebook
Full Hard
Bound Book
Account Book
Locked Spiral Poly Cover
Subject Book
Drawing Book Manila
Colour Bound
Normal File
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Organization structure
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R1
S7
(0
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CHAPTER 3
OBJECTIVES OF THE STUDY
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CHAPTER 4
NEED FOR THE STUDY
This survey is to identify and focus on the sales promotion of Sundaram Multi Pap
Ltd. To accomplish this, a survey was conducted to gather the impartial information
about the sales promotion. The study was conducted for the below needs.
SWOT up the various schemes impact on the sales.
Find out various tools and technique of sales promotion.
Improve the sales increase in competitive market.
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of their product
dispersed)
or
advertising a less attractive option. For these marketers better results may
be obtained using other promotional approaches and may lead to directing
all their promotional spending to non-advertising promotions.
Finally, the high cost of advertising may drive many to seek alternative,
lower cost promotional techniques to meet their promotion goals. Sales promotions
are used widely in many industries and especially by marketers selling to consumers.
We will see that the objectives of sales promotion are quite different than advertising
and are specifically designed to encourage customer response.
Many studies have focused on the effects of promotion schemes on purchase quantity,
and stockpiling and have documented that promotion makes consumers switch brands
and purchase earlier or more. The consumersconsumption decision has long been
ignored, and it remains unclear how promotion affects consumption (Blattberg et al.
1995).. Thus, for product categories with a varying consumption rate, it is critical to
recognize the responsiveness of consumption to promotion in order to measure the
effectiveness of promotion schemes on sales more precisely.
Wansink and Deshpande (1994) show that when the product is perceived as widely
substitutable, consumers will consume more of it in place of its close substitutes.
There are some recent empirical papers addressing the promotion effect on consumer
stockpiling behaviour under price or promotion uncertainty. Erdem and Keane (1996)
and Gonul and Srinivasan (1996) establish that consumers are forward looking.
5.2 Advantages of Promotion schemes:
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1.
use of promotions schemes. They can charge different prices from different consumer
and trade segments varying in their price sensitivity.
2.
period, customers may feel a sense of urgency and stop comparing the alternatives.
They are persuaded to act now rather than later.
5.2 Disadvantages of promotion schemes:
There are certain limitations of promotion schemes which may also produce negative
effects.
1. Decrease in brand loyalty: The major objective of many sales promotions is to
encourage brand switching. This is especially true in case of low-involvement
category products, or where there is little or no significant differentiation among
brands and the unit value is low.
2. Increased price-sensitivity:
Frequently promoted brands in a product category, especially on the basis of price,
make consumers and traders more price sensitive not only for the promoted brand but
for other brands as well in the same product category. Consumers wait for the
promotional schemes to be announced and then purchase the product.
3. Quality image may become tarnished: If the promotions in a product category
have been rare, or the product happens to be of high-involvement category, the
promotions could have negative effect on its quality image.
4. Channelizing support from dealers is doubtful: One of the trade promotion
tools is to offer promotional allowances to trade people to motivate them to provide
merchandising support and to pass on some benefit to consumers. This is generally
the condition attached with such promotional allowances.
CHAPTER 6
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RESEARCH METHODOLOGY
6.1 Research Type: Descriptive Research
6.2 Method of data collection:
The sources of the data are both primary and secondary data.
Primary data: Is being collected through customer survey with the help of
schedule. The structured schedule consists of close ended and open ended
questions.
CHAPTER 7
7.1-ANALYSIS & INTERPRETATION OF DATA
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7.2
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ou
e:
Sr.no
Period
No. of Respondent
Percentage %
1 year
3 year
100
(S
rc
Primary Data)
Graph7.2.1
100
80
3 year
1 year
60
40
20
0
%
Interpretation:
The above table shows that all distributors are selling Sundaram product from more
than five years.
Most of the respondents says they are in business from starting.
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Sr.no
Preference
No. of Respondent
Percentage%
Service
25
Company image
25
Both
50
TOTAL
100
(Source: Primary Data)
Graph7.2.1
Preference
Service
Both
Company image
Interpretation:
The above tables shows 25 percentage of respondents are have to give the preference
to service and 25 percentages of respondents have to give the preference to Company
image, 50 percentages of the respondents have to give the preference both.
From conducting the surveys more number of respondents is have to give the
preference to Company image and service.
Q.3. Do you consider schemes while purchasing a particular brand of
Sundaram?
Table 7.2.3- Consideration of schemes:
No. of
Percentage %
6 Page 16
75
No
25
total
100
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80
70
60
50
40
30
20
10
0
yes
No
Graph7.2.3
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Interpretation:
The above table shows that 75% of respondents prefer schemes and 25% of
respondents does not prefer schemes.
Q.4. Which of the following schemes you have come across so far?
Table 7.2.4-Awareness of schemes:
Sr.no
Schemes
Yes/NO
Discount
Credit
Lucky draw
Extra Qty.
Other specify
Coupons
Graph7.2.4
Other
specify(coupo
ns)
Extra Qty.
Schemes
Lucky draw
Discount
Credit
Interpretation:
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The above table shows that all distributors have came across all the schemes so far.
From the survey most of the distributors are affected by Discount
Q.5. Which Sales promotion activity is more effective to motivate retailers?
Table 7.2. 5-Effect of scheme on Sales promotion:
Sr.no
No. of
Activity
Percentage%
Respondent
Discount
50
Credit
12.5
Lucky draw
Extra Qty.
25
Coupons
12.5
Total
100
(Source: Primary Data)
Graph7.2.5
50
40
30 Discount
20
10
0
Credit
Lucky draw
Extra Qty.
Coupons
Percentage%
Interpretation:
The above table 50 percentages of respondents effected by discount,12.5percentages
of respondents effected by credit,0 percentages of respondents effected by Lucky
draw,25 percentages of respondents effected by Extra Qty. and 12.5 percentages of
respondents effected by coupons.
From the survey most of the respondents are affected by discount and credit.
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No. of
Schemes
Percentage %
Respondent
Discount
50
Credit
12.5
Lucky draw
Extra Qty.
25
coupons
12.5
Total
100
(Source: Primary Data)
Graph7.2.6
50
40
30 Discount
credit
Lucky draw
Extra Qty.
Coupons
20
10
0
Interpretation:
The above table respondent the 50percentage of respondent have prefer discount ,
12.5 percentages of respondents have prefer credit, 25 percent of the respondents have
prefer extra Qty. 12.5 percent of the respondents have prefer coupons.
From the survey most of the customers prefer discount.
Q.7. Which promotional activity will create long term impact?
Table 7.2.7- Long term impact of Promotion Activity:
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Sr.no
Options
Advertisement
50
Sales promotion
25
Publicity
12.5
Personal selling
12.5
Total
100
Graph7.2.7
Promotion activity
Advertisement
12.5
Sales promotion
12.5
50
Publicity
Personal selling
25
Interpretation:
The above table shows 36 percentages of respondents are said advertisement will
create long term impact on promotional activity and 21 percentages of respondents are
said sales promotion will create long term impact on promotional activity and 29
percentages of respondents are said publicity will create long term impact on
promotional activity and 14 percentages of respondents are said personal selling will
create long term impact on promotional activity.
Q.8. Which medium do you feel is suitable to promote the various promotional
schemes?
Table 7.2. 8-Impact of Media:
Sr.no
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Options
No. of
Percentage
Respondent
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Television
25
News paper
Internet
12.5
Banners
62.5
TOTAL
100
Graph7.2.8
70
60
50
40
30
20
10
0
Television
News paper
Internet
Banners
Interpretation:
The above table shows 25% of respondents said the Television Advertisement can
impact more and 0% of respondents said the News paper Advertisement can impact
people, 12.5% respondents said the Internet Advertisement can impact people, 62.5%
of respondents said the banners Advertisement can impact people.
Q.9. Is there any existing scheme on the books you are currently using?
Table 7.2. 9- Any existing scheme:
Options
No. of Respondent
Percentage%
Yes
No
100
Total
100
Sr.no
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Yes
No
Interpretation:
The above table shows that its season times so no scheme for them
Options
No. of
Percentage
Respondent
Yes
25
No
62.5
May be
12.5
Total
100
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Graph-7.2.10
Response
70
60
50
Response
40
30
20
10
0
Yes
No
May be
Interpretation:
The above table shows that 25 % of respondents are satisfied with the current
promotion strategy, 62.5% of respondents does not satisfied with the current
promotion strategy and 12.5% of respondents are confused.
Period
No. of Respondents
Percentage %
1-2 year
14
3 year
4-5 years
10
20
26
52
Total
100
100
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Graph7.11
60
50
40More than 5 month
1-2 year
3 year
4-5 years
30
20
10
0
Interpretation:
The above table shows that 8 % of retailers are in business from More than 5 month,
14 %of retailers are in business from1-2 year, 6 %of retailers are in business from 3
year, 20% of retailers are in business from 4-5 years and 52% of retailers are in
business from more than 5 years.
From the survey most of the retailers are in business from more than 5 years.
Q.2. Which companys product you stock for?
Table7.2.12.Available product:
Sr.no
Options
No. of Respondents
Percentage %
Sundaram
10
Classmate
14
10
18
All
20
40
Total
50
100
(Source: Primary Data)
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Graph7.2.12
40
35
30
25
20
15
10
5
0
Sundaram
Sundaram, Navneet A nd
Classmate
Sundaram A nd Navneet
A ll
Interpretation:
The above tables shows 8 % of retailers stock only Sundaram product, 10%s of
retailers stock Sundaram and Classmate, 14 % of the retailers stock Sundaram,
Navneet And Classmate.10 % of retailers stock Sundaram And Navneet, 18 % of
retailers stock Sundaram and other and 40% of retailers stock all brands product.
From the survey most of the retailers are selling all brands.
Q.3.Do you suggest customers to purchase a certain brand?
Table-7.2.13-Suggesting customer to purchase Sundarams brand:
Sr.no Options
No. of Respondents
Percentage %
Yes
11
22
No
14
32
64
Total
50
100
(Source: Primary Data)
Graph7.2.13
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Preference
70
60
50
40
30
20
10
0
Yes
No
Interpretation:
The above table shows that 22% of retailers suggest customer to purchase Sundaram
brand, 14% of retailers do not suggest customer to purchase Sundaram brand and 64%
of retailers suggest customer to purchase certain brand according to the demand.
Q.4.If Yes why?
Table-7.2.14 -Reason for suggestion:
Sr.no
Options
Percentage %
Relationship
18.18
High margin
9.10
Service
27.27
Quality
27.27
No reason
18.18
Total
11
100
(Source: Primary Data)
Graph7.2.14
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Reason
30
25
20
15
10
5
0
Relationship
High margin
Service
Quality
Interpretation:
18.18% of retailers suggest customer to purchase Sundaram brand because of
relationship, 9.10% of retailers suggest customer to purchase Sundaram brand because
of High margin, 27.27% of retailers suggest customer to purchase Sundaram brand
because of Service, 27.27% of retailers suggest customer to purchase Sundaram brand
because of quality of product and 18.18% of retailers gave no reason.
Q.5. Which of the following schemes you have come across so far?
Table 7.2.15- Awareness of schemes:
Sr.no
Schemes
Yes/NO
Discount
Credit
Lucky draw
Extra Qty.
Other specify
Coupons
Graph7.2.15
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Other
sp ecify(coupo
ns)
Extra Q ty.
Scheme s
Lucky draw
Discount
Credit
Interpretation:
The above table shows that all distributors have came across all the schemes so far.
From the survey most of the distributors are affected by Discount and extra quantity.
Options
No. Of Respondent
Percentage%
Yes
44
88
No
06
12
Total
50
100
(Source: Primary Data)
Graph7.2.16
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90
80
70
60
50
40
30
12
20
10
0
88
Yes
No
Interpretation:
Above table shows that 87% of retailers says that most of the customer ask for
scheme.
7.If yes which schemes?
Ans: Discount and extra quantity
Q.8.Do the scheme has affected the sales of the product?
Table 7.2.18-Affect of schemes on sales:
Sr.no
Options
No. of
Percentage
Respondent
Yes
31
62
No
06
12
May Be
13
26
Total
50
100
(Source: Primary Data)
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Graph7.2.18
70
60
50
40
25
30
13
20
10
0
62
Yes
No
May Be
Interpretation:
Above table shows that 62% retailer think that schemes has affected the sales of the
product, 12% retailer think that schemes has not affected the sales of the product and
25% retailer are not sure.
Q.9. If yes, then how much %?
Table 7.2.19-Sales Growth%
Sr.no Growth in%
Percentage%
5-10
35
11-15
25
16-20
07
21-25
20
26-30
13
Total
100
(Source: Primary Data)
Graph7.2.19
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Growth
13
.5-10
35
20
.11-15
16-20
21-25
26-30
25
Interpretation:
Above table shows that 35% retailer think that schemes has affected 5-10% sales,
25% retailer think that schemes has affected 11-15% sales of the product and 7%
retailer think that schemes has affected 16-20% sales of the product, 20% retailer
think that schemes has affected 21-15% sales of the product and 13% retailer think
that schemes has affected 26-30% sales of the product.
Q10. Which Trade Promotions do various companies offer?
Table7.2.20.Other Company offering trade promotion:
Sr.no
Activity
Cash incentives
Free trips
Free gifts
extra margin
Extra units
credit facility
Banners
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Graph7.2.20
B
a
c r e
n
d it
E cxn i
f a
e
l it t ry
a r
u ns
it s
e x
t r a
m
a r
g i
n
A
c t
iv
it
y
F r
e e
g if
t s
C a s
h
F ri n c
e e
e n t i
t rvi e s
p s
Interpretation:
Above table shows all the trade promotion schemes offer by other companies.
CHAPTER 8
FINDINGS
1. 100% of the respondents are selling the Sundaram product because of its
existence from past 25 yrs.
2. Sundaram has a good name in the market and it covers the major shares in
the market for its notebooks products.
3. Sundaram doesnt give much importance to the promotional activities
compare to its competitor.
4. The advertisement campaigns were conducted more in urban areas as
compare to rural areas.
5. The impact of promotion schemes on sales growth is favourable.
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CHAPTER 9
RECOMMENDATIONS
1. Company should introduce different promotion schemes for different product
categories.
2. They should promote brands through advertisements.
3. Company can advertise with the help of different media print & electronic
media or social media.
4. The advertisement must contain enough information about the product.
5. Banners should be give to distributors and retailers .
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CHAPTER 10
LIMITATION OF STUDY
The sample chosen may not be the true representative of the whole population.
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CHAPTER 11
FUTURE SCOPE OF STUDY
Sales promotion is one of the key elements of promotional mix which plays a
vital role in implementation of market strategy.
The scope of the promotion scheme in my study was limited to the marketing
strategy adopted by Sundaram and within the marketing area at Mumbai.
Further research study can be conducted to understand the customer
perception regarding promotion activities.
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CHAPTER 12
CONCLUSION
Good promotional strategies help to improve the sales of product and it happens when
company has adequate promotional activities. Also it is necessary to company to
understand
consumers wants
and improvements
suggested in
promotion.
Company can formulate new schemes to maintain customer relationship which will
help them to make good position in market.
Promotional schemes are very important to promote the product in the market and
helps maintaining the consistency in the market.
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BIBLIOGRAPHY
References:
1
Websites:
www.businessworld.com , www.sundaram.com
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ANNEXURE
INTERVIEW SCHEDULE FOR DISTRIBUTORS
Name of store:
Add.:
Contact No.
Q.1.From when you are selling Sundaram note book?
1)more than 5 month
3)2 years
2)year
4)5 years
2)Company image
3)Both
Q.3. Do you consider schemes while purchasing a particular brand of
Sundaram?
1)Yes
2) No
Q.4. Which of the following schemes you have come across so far?
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1)Discount
2) Credit
3)Lucky Draw
4)Extra Qty.
5)other
2) Credit
3)Lucky Draw
4)Extra Qty.
5)other
2) Credit
3)Lucky Draw
4)Extra Qty.
5)other
2)Sales promotion
4) Personal selling
Q.8. Which medium do you feel is suitable to promote the various promotional
schemes?
1)Radio
3)Newspaper
2) TV
4)Banners
5)Others
Q.9. Is there any existing scheme on the NOTEBOOK you are currently using?
1) Yes
2)No
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4)5 years
2)No.
2)Quality
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3) Service
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4) Relationship
5)No reason
Q.5 Which of the following schemes you have come across so far?
1)Discount
4)Extra Qty
2)credit
.
3)Lucky draw
5)Other specify
2)No
2)no
3)Maybe
..
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