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ROLEOF PROMOTIONAL STRATEGIESON SALESAND DISTRIBUTION MANAGEMENT
Chapter-1
INTRODUCTION
Objective of the study
The globalization of world economy and the consumer
awareness towards product features & quality.Now, the
consumer is changing brand loyality at fast rate than in the
past. This leads to fluctuation in the market share of
multinational companies, the market leader of one time is
now straggling for survival in the market.
Maruti Udyog Ltd., A joint venture between
Government of India an Suzuki Motor corporation of
Japan, had market share of 82% in 1999s in the
passenger car market and now have 56% only due to
consumer awareness of other models. Hyundai,. Cielo,
FIAT etc.
Therefore in order to survive in the market and show their
presence to customer, the MNCs are increasingly using
Promotional Strategies to enhance their sales and
distribution function.
In general, the Promotional Strategy include all the
activities the MNCs under takes to communicate and
promote its products to the target market.
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The communication part is done with the help of
advertisement campaign involving electronic, print media
etc. MNCs have full-fledged advertising department who
takes care of communication part.
On the other hand ,the Promotional part is done with the
help of Vehicle which is used as carrier of product to
target market. This vehicle may be product of same MNCs
or other MNCs.
Further the various kind of Promotional Tools used in the
sales promotion are :
1. Trade off
2. Center off
3. Rebates
4. Warranties
5. Gifts
6. Contests
The Contest as Promotional tool is used with the help
of Vehicle.
TheVehicle is generally defined as fast moving product
having significant market presence or enjoying healthy
share in the market demand.
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e.g., Reckitt Benckiser (India) Ltd. (RBI) ,for Promotional
strategy for Robin liquid blue :
Vehicle = Dettol soap
Promotion Product = Robin Blue (2-in-1) liquid
Thus, the Robin liquid blue in reaching to target customer
via Dettol soap vehicles.
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Type of Vehicle
The following types of vehicle are used in the Promotional
strategies:
1. One company agrees to carry a promotion for another
companys product or service e.g., McDonalds teamed
up with Disney to offer Mulan figurines to people buying
its burger.
2. A company chooses / selected high market demand
product from its product range ,for promotion of new
product, e.g., RBI selected Dettol soap a fast moving
product to market Robin liquid blue as promo offer.
3. A company chooses / selected, products from its range
and market along with free gift offer.
e.g. Hindustan Lever Limited (HLL),
(a) Close-up Toothpaste with free plastic fridge
bottle.
(b) Ponds Magic with free vanity box.
In the present study, how contest and gifts as promotional
tools enhances the sales volume / turnover and market
research study on the Reckitt Benckiser (India) Ltd. Dettol
soap Suraksha, Kapda aur Makan contest involving free
Robin liquid blue.
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2. Scope of the study
The present study concern to the following
1. Why MNCs are employing promotional strategies as the
sales and distribution tool.
2. How promotional strategies influence the market share
of given product.
3. What stages of PLC are preferred for the promotional
studies?
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Chapter-2
SALES AND DISTRIBUTION MANAGEMENT
(A). Sales and distribution management
Sales and distribution management constitutes one of the
most important parts of marketing management.
Exchange is the core, aspect of marketing and it is the
sales and distribution management which facilitates it.
Sales management has been defined as the management
of a firms personal selling function while Distribution is
the management of the indirect selling effort i.e., selling
through extra corporate organizations which form the
distribution network of the firm. The sales management task
,thus includes analysis, planning, organizing ,directing and
controlling of the companys sales effort.
Distribution management comprises management of
channel institutions as well as physical distribution
functions.
The exchange process i.e., the sale and delivery of
good/services from the manufacturer to the consumer can
be consummated directly i.e., by the firm itself through its
own sales.
The importance of the sales and distribution function varies
across organizations depending upon its nature and variety
of products, target market, consumer density and dispersion
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and the competitive practices among other things.
Notwithstanding, whether the sales and distribution function
is organized internally, externally or jointly, the following
essential tasks need to be performed in order to
consummate successful exchange.
a) Contact - Finding and communicating with
prospective buyer
b) Prospecting - Bringing together the marketers
offering and the prospective buyer
c) Negotiation and
transaction
- Reaching an agreement on price
and other terms of the offer so that
ownership and possession can be
transferred.
d) Promotion - Of the marketers offerings, and his
satisfaction-generating potential.
e) Physical
Distribution
- Actual transfer of possession i .e.
timely and safe delivery
f) Collection - Of relevant consumers information
and revenue in exchange of goods
or services.
Except for extreme instances of organizations which make
exclusive use of either their own sales force or distribution
channels, most organizations get the above functions
performed through a combination of their own sales force
and the distribution net work they choose to hire. A major
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decision in sales and distribution therefore becomes the
judicious allocation of the above tasks between the sales
force and channel members. The determinants of task
allocations are: competitive practice, product and market
requirements, (including market size, frequency of purchase
and customer concentration) preference and buying
practices of the target customers, and certainly the
management philosophy towards control.
The interdependence of sales & distribution functions are
well established as under:
a) All organizations use their own sales force or distribution
network to reach out to their customers. The emerging
practice is to use own sales force to sell to wholesalers/
semiwholesalers who in turn sell to retailers. Very few
firms (unlike say Brooke Bond) use their own sales force
to reach upto the retail level). As both the sales and
distribution functions are simultaneously performed to
accomplish the firms sales objectives their dependence
on each other for the effective attainment of overall
marketing goals becomes obvious. In other words,
activities of the sales organization would have to be
coordinated with channel operations if sales goals have
to be effectively realized.
b) The decision of the organization to allocate certain
responsibility in the exchange process to its channel
members would define the scope of responsibility of its
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own sales force and thereby would determine the type of
personnel and training required.
c) Even though, an organization may decide to deal directly
with its wholesaler, semiwholesaler, retailer or consumer,
it is required to decide upon the type of help it will
provide to the first and subsequent level of
intermediaries. Since the requirements of each of the
above types of first level contact entities are different
from that of the other, the companys sales task would
have to be defined in context of first level of contact
chosen by it.
d) The choice before an organization to have direct
distribution, indirect distribution or a combination of the
two is of strategic importance and depends upon factors
such as the degree of control, flexibility, costs and
financial requirements etc.
Marketing through channels implies lower degree of
control but would also mean lesser funds tied up in
maintaining inventory and lower fixed and variable costs
of managing the channels. Depending upon it own set of
variables the organization would try and optimize the
effectiveness of the exchange process through the use of
some combination of the two. Necessarily then the scope
of one (i.e. distribution) would define that of the other
(sales management).
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e) To implement overall marketing strategy, the
manufacturers need the cooperation of distribution
outlets in terms of adequate stock maintenance, in-store
displays, local advertising, point of purchase promotion.
With in the corporation, the sales organization is the
initiator as well as the implementor of these dealer
support operations. The effective functioning of dealer-
sales organization relationship often becomes the key to
successful working operations within the organization.
This would mean that the sales management has the
responsibility of structuring organizational relationship
within their own department and with interacting
organizational entities so that the sales task can be
performed and co-ordinated with the overall marketing
goals.
SALES MANAGEMENT FORMULATION OF
SALES STRATEGY
The sales management function, as noted earlier comprises
the management of the sales personnel and activities that
make up the corporate sales effort. Sales managers are
entrusted with the task of organizing, planning and
implementing the sales effort so as to achieve corporate
goals related to market share, sales volume and return on
investment. The task involves the sales manager in a set of
activities both within the organization and outside with
other organizations.
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Within the organization he has the responsibil ity of
structuring relationships both within his own department
and with interacting organizational entities so that the sales
task can be coordinated with other marketing tasks and
performed effectively. It also includes allocating and
operationalising the sales effort among the sales personnel.
Outside the organization, his task would include developing
and maintaining channel relationships effectively so that
the flow of goods and service, and also promotion and
feedback is facilitated.
Embodiment of all these functions can be seen in the
development of sales strategy which often proves vital to
the success of the organization. Key decision areas in sales
management which are particularly relevant to strategy
formulation are:
a. Deciding upon type and quality of sales personnel
required
b. Determination of the size of the sales force
c. Organization and design of the sales department
d. Territory design
e. Recruitment and training procedures
f. Task allocation
g. Compensation of sales force
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h. Performance appraisal and control system
i. Feedback mechanism to be adopted
j. Managing channel relationship
k. Coordination with other Marketing department.
The above decisions give a fair idea of the scope of the
sales management function. Strategy formulation in case of
sales would involve identification of the sales goals and
designing of a gameplan, using the organizational resources
at hand, to achieve those goals.
Step 1
1. Macro Environment Analysis : Social ,Political,
Economic ,Technology
2. Assessment of the competitive situation and the
corporate goals to determine the output that sales
management is expected to give
3. Market analysis
Step 2
Define sales management objectives in terms of delivering
these outputs both quantitative and qualitative.
Step 3
Design sales strategy by deciding upon
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1. Type of sales effort required
2. Type of sales personnel required
3. Size of the sales force
4. Territory design
5. Channel support and coordination
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ROLEOF PROMOTIONAL STRATEGIESON SALESAND DISTRIBUTION MANAGEMENT
THE PROMOTIONAL TOOLS/STRATEGIES
The main motive of promotional tools is to communicate
and promote the product to the target market.
The various promotional tools are
1. Advertising
2. Sales promotion
3. PublicRelation, and
4. Personal selling.
Each promotional tool has its own unique characteristics
The Advertising concerns with public presentation,pervasiveness, amplified expressiveness and impersonality.
The Sales Promotion concern with communication,
Incentive, Invitation while the public relation concern with
high credibility, ability to catch buyers off guard,
dramatization.
In last, the personal selling concern with personal
confrontation, cultivation, & response.
Out of all the four tools, the relative spending on sales
promotion is maximum while in public relation is minimum.
For consumer goods, it is shown as follows
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Sales promotion
Advertising
Personal selling
Public relations
ROLEOF PROMOTIONAL STRATEGIESON SALESAND DISTRIBUTION MANAGEMENT
Consumer goods
===== DIAGRAM========
Relative spending
The present study is concern with the Sales Promotion and
Market Research to evaluate, the impact of sales promotion
on the sales and distribution function.
In the distribution function, the logistics play an important
role.
(C) LOGISTICS MANAGEMENT
(An aid to physical distribution function.)
The process of getting goods to customers has traditionally
been called physical distribution.
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The physical distribution starts at the factory. Managers
choose a set of warehouse (stocking points) and
transportation carriers that will deliver the goods to final
destination in the desired time or at the lowest total cost.
Recently, physical distribution has been expanded into the
broader concept of Supply-Chain Management which is
called logistics, which is shown in the following figure:
Logistics contributes to an organizations success by
providing customers with timely and accurate product
delivery. The key question is, who is the customer? For
Logistics, the customer is any delivery destination. Typical
destination range from customers homes to retail and
wholesale businesses to the receiving docks of a firms
manufacturing plants and warehouse.
InventoryFlow
Supplier Procurement Manufacturingexport
Physicaldistribution
Customers
Informationflow
(Supply Chain Management)
Logistics involves planning, implementing, and
controlling the physical flows of materials and final goods
from point of origin to point of use to meet customer
requirement at a profit.
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To implement a marketing strategy it is essential to view
all activities relted to the process of gaining and
maintaining customers. Logistics is one of these key
competencies that can be developed as a core strategy.
To the extent that a firm builds its competitive
advantage is on logistical competency. Thus, logistics
plays an important role in the Promotional Strategies,
which in turn, also influences the sales and distribution
function.
(D) PRODUCT LIFE CYCLE
To say that a product has a life cycle is to assert four
things:
1. Products have a limited life.
2. Product sales pass through distinct stages, each
posing different challenges, opportunities, and
problems to the seller.
3. Profits rise and fall at different stages of the product
life cycle.
4. Products require different marketing, financial,
manufacturing, purchasing, and human resource
strategies in each stage of their life cycle.
Most product life-cycle curves are portrayed as bell-
shaped (Figure ). This curve is typically divided into four
stages: introduction, growth, maturity, and decline.
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1. Introduction: A period of slow sales growth as the
product is introduced in the market. Profits are non
existent in this stage because of the heavy expenses
incurred with product introduction.
2. Growth: A period of rapid market acceptance and
substantial profit improvement.
3. Maturity: A period of a slowdown in sales growth
because the product has achieved acceptance by
most potential buyers. Profits stabilize or decline
because of increased competition.
4. Decline: The period when sales show a downward drift
and profits erode.
MARKETING STRATETIES : INTRODUCTION STAGE
Because it takes time to roll out a new product and fill
dealer pipelines, sales growth tends to be slow at this
stage. Buzzell identified several causes for the slow growth:
delays in the expansion of production capacity; technical
problems, delays in obtaining adequate distribution through
retail outlets; and customer reluctance to change
established behaviors.
Profits are negative or low in the introduction stage because
of low sales and heavy distribution and promotion expenses.
Much money is needed to attract distributors. Promotional
expenditures are at their highest ratio to sales because of
the need to (1) inform potential consumers, (2) induce
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product trial, and (3) secure distribution in retail outlets.
Firms focus their selling on those buyers who are the
readiest to buy, usually higher-income groups. Prices tend
to be high because costs are high due to relatively low
output rates, technological problems in production, and high
required margins to support the heavy promotional
expenditures.
In launching a new product, marketing management can set
a high or a low level for each marketing variable (price,
promotion, distribution, product quality). Considering only
price and promotion, management can pursue one of four
strategies.
1. Rapid skimming: Launching the new product at a high
price and a high promotion level. This strategy makes
sense when a largepart of the potential market is
unawareof the product; those who become aware of the
product are eager to have it and can pay the asking
price; and the firm faces potential competition and wants
to build brand preference.
2. Slow skimming: Launching the new product at a high
price and low promotion. This strategy makes sense
when the market is limited in size; most of the market is
aware of the product; buyers are willing to pay a high
price; and potential competition is not imminent.
3. Rapid penetration: Launching the product at a low price
and spending heavily on promotion. This strategy makes
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sense when the market is large, the market is unaware of
the product, most buyers are price sensitive, there is
strong potential competition, and the unit manufacturing
costs fall with the companys scale of production and
accumulated manufacturing experience.
4. Slow penetration: Launching the new product at a low
price and low level of promotion. This strategy makes
sense when the market is large, is highly aware of the
product, is price sensitive, and there is some potential
competition.
MARKETING STRATEGIES: GROWTH STAGE
The growth stage is marked by a rapid climb in sales.
Early adopters like the product, and additional consumers
start buying it. New competitors enter, attracted by the
opportunities. They introduce new product features and
expand distribution.
During this stage, the firm uses several strategies to
sustain rapid market growth as long as possible:
It improves product quality and adds new product
features and improved styling.
It adds new models and flanker products (i.e., products of
different sizes, flavors, and so forth that protect the main
product).
It enters new market segments.
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It increases its distribution coverage and enters new
distribution channels.
It shifts from product-awareness advertising to product-
preference advertising.
It lowers prices to attractthe next layer of price-sensitive
buyers.
MARKETING STRATEGIES: MATURITY STAGE
At some point, the rate of sales growth will slow, and the
product will enter a stage of relative maturity. This stage
normally lasts longer than the previous stages, and posses
formidable challenges to marketing management. Most
products are in the maturity stage of the life cycle, and
most marketing managers cope with the problem of
marketing the mature product.
The maturity stage divides into three phases: growth,
stable, and decaying maturity. In the first phase, thesales
growth rate starts to decline. There are no new distribution
chanels to fill. In the second phase, sales flatten on a per
capita basis because of market saturation. Most potential
consumers have tried the product, and future sales are
governed by population growth and replacement demand. In
the third phase, decaying maturity, the absolute level of
sales starts to decline, and customers begin switching
toother products and substitutes.
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The sales slowdown creates overcapacity in the industry,
which leads to intensified competition. Competitors
scramble to find niches. They engage in frequent mark-
downs. They increase advertising and trade and consumer
promotion. They increase R&D budgets to develop product
improvements and line extensions. They make deals to
supply private brands. A shakeout begins, and weaker
competitors withdraw. The industry eventually consists of
well-entrenched competitors whose basic drive is to gain or
maintain market share.
Dominating the industry are a few giant firmsperhaps a
quality leader, a service leader, and a cost leaderthat
serve the whole market and make their profits mainly
through high volume and lower costs. Surrounding these
dominant firms are a multitude of market nichers, including
market specialists, product specialists, and customizing
firms. The issue facing a firm in a mature market is whether
to struggle to become one of the big three and achieve
profits through high volume and low cost or to pursue a
niching stragegy and achieve profitsthrough low volume and
a high margin.
In the maturity stage, some companies abandon weaker
products and concentrate on core profitable products and
on new products. Yet they may be ignoring the high
potential manymature markets and old products still have.
Many industries widely thought to be matureautos,
motorcycles, television, watches, cameraswere proved
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otherwise by the Japanese, who found ways to offer new
values to customers. Seemingly moribund brands like Jell-O,
Ovaltine, and Arm & Hammer baking soda have achieved
major sales revivals severaltimes, through the exercise of
marketing imagination. The resurgence in Hush Puppies
popularity in the footwear category is a case study in
reviving old, nearly forgotten brands.
MARKETING STRATEGIES: DECLINE STAGE
The sales of most product forms and brands eventually
decline. The decline might be slow, as in the case of
oatmeal; or rapid, as in the case of the Edsel automobile.
Sales may plunge to zero, or they may petrify at a low level.
Sales decline for a number of reasons, including
technological advances, shifts in consumer tastes, and
increased domestic and foreign competition. All lead to
overcapacity, increased price cutting, and profit erosion.
As sales and profits decline, some firms withdraw from the
market. Those remaining may reduce the number of
products they offer. They may withdraw from smaller
market segments and weaker trade channels, and they may
cut their promotion budget and reduce their prices further.
Unfortunately, most companies have not developed a well-
though-out policy for handling their aging products.
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MARKET RESEARCH SYSTEM
Marketing research is the systematic design, collection,
analysis, and reporting of data and findings relevant to a
specific marketing situation facing the company.
A company can obtain marketing research in a number of
ways. Most large companies have their own marketing
research departments.
Small companies can hire the services of a marketing
researchfirm or conduct research in creative and affordable
ways, such as:
Engaging students or professors to design and carry out
projects
Using the Internet.
Checking out rivals.
Companies normally budget marketing researchat 1 percent
to 2 percent of company sales. A large percentage is spent
buying the services of outside firms. Marketing research
firms fall into three categories:
Syndicated-service research firms: These firms gather
consumer and trade information, which they sell for a
fee. Examples: Nielsen Media Research, SAMI/Burke.
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Custom marketing research firms: These firms are hired
to carry out specific projects. They design the study and
report the findings.
Specialty-line marketing research firms: These firms
provide specialized research services. The best example
is the field-service firm, which sells field interviewing
services to other firms.
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THE MARKETING RESEARCH PROCESS
Effective marketing research involves the five steps shown
in Figure
Define the Problem and Research
Objectives
Develop the Research plan.
Collect the Information
Analyze the Information
Present the Findings
(The marketing research process)
In conducting research, firms must decide whether to
collect their own data or use data that already exist. They
must also decide which research approach (observational,
focus-group, survey, behavioral data, or experimental) and
which research instrument (questionnaire or mechanical
instruments) to use. In addition, they must decide on a
sampling plan and contact methods.
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Chapter-3
RESEARCH METHODOLOGY
1. SURVEY METHOD:
Survey methods are concerned with describing, recording,
analyzing and interpreting condition that either exist or
existed. The researcher does not manipulate the variable or
arrange for events to happen, surveys are only concerned
with condition or relationship that exist.
Surveys are conducted in case of descriptive research
studies, where research purpose is
(i) How should a new product be distributed?
(ii) What should be the target segment?
(iii) How should our product be changed?
Eg. In the present study, how a new product, Robin Liquid of
M/s Reckitt Benckiser(India) Ltd be distributed.
The RBI is using Dettal Soap Suraksha Kapda aur Makan
offer to promote Robin Liquid. Further, the RBI chooses the
same target segment as that of Dettol Soap.
The present study uses Questionnaire as the survey tool,
which covers the consumers of south Delhi, namely Vasant
Kunj, Safdarjung Enclave, GreenPark, Gobindpuri, Kalkaji,
Sarai Kale Khan etc.
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The Questionnaire contain 14 Nos of close ended Question,
out of 14, 2 Question are related to personal details and
rest are concerned with the Dettol Soap Promotional offer.
Sample size = 50
Sen Ratio (M : F) = 5 :1
2. METHODS OF DATA COLLECTION
The task of data collection begins after a research problem
has been defined and research design chalked out. While
deciding about the method of data collection to be used for
the study the researcher should keep in mind two types of
data. Viz. primary and secondary.
The primary data are these which are collected afresh and
for the first time and thus happens to be original in nature.
The secondary data, on the other hand, are those which
have already been collected by someone else and which
have ready been passed through the Statistical process.
In the present study, the following techniques are used
a) Primary Data:
It is collected through face to face interview while filling up
questionnaires.
b) Secondary Data:
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Relevant information was gathered from magazines,
Newpapers etc that formed the secondary data.
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c) Communication Approach :
Face to face interviews was taken as the communication
approach since it is a letter method in case where slight
probing is required.
3. SAMPLING
Sampling may be defined as the selection of same part of
an aggregate or totality on the basis of which a judgement
or inference about the aggregate or totality is made In other
words, it is the process of obtaining information about an
entire population by examining only a part of it. In most of
the research work & surveys, theusual approach happens to
be to make generalization or to draw inferences faced on
samples about the parameters of populationfrom which the
samples are taken.
Need for Sampling
1. Sampling can save time & money.
2. Sampling may enable more accurate measurement for a
sample study.
3. Sampling remain the only way when population contain
infinitely many members
Sample Size
A sample size of ______80_______ customer was chosen, but
due to incompletely filled questionnaires and unwillingness
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and carelessness on the part of the respondent. We are
forced to reduce the sample size to ______50_____ . This
sample size was based upon time & affordability approach.
Sampling Technique
Disproportionate stratified random sampling technique has
been used in sampling due to the following reasons:
1. It provides information about parts of the universe.
2. It provides help in gaining precision through
stratification.
QUESTIONNAIRE DESIGN
The questionnaire used was a printed, well structured
formalized schedule to obtain and record specified and
relevant information with fair accuracy and completeness.
The questioning process was face to face interview and the
questionnaire was designed in Such a way that it could be
understood and answered easily by the respondents. The
questionnaire contained both close and open ended
questions.
The close ended question were dichotomous and multiple
choice in nature. Since some of the question were probing
in nature and required answers on the basis of memory of
the respondent. In such type of question there is a risk that
the respondent will answer whatever comes to their minds,
thereby reducing the impact of the study. Keeping these
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consideration in mind. Firstly the period of time in which
respondent were asked to respond was reduced. Since it
has been found that the longer the reporters period, the
less accurate the reporting.
In the present study, the Question is design for Dettol
Soap, Suraksha, Kapda aur makan contest (Mkt by : M/s
Reckitt Benckiser (India) Pvt. Ltd.). In this contest, the RBI
is promoting new product, Robin Liquid Blue.
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QUESTIONNAIRE
1. Which both soap do you use ?
Dettol
Lux
Life-Boy plus
Other
2. Why you prefer Dettol Soap over other ?
3. How many Dettol Soap you use per month :
One
Two
Three
Four & more
4. For how long, are you using Dettol Soap:
6-month
1-yrs
2-year
More than 2-years
5. Who influence you to purchase the Dettol Soap:
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Family
Doctor
Advertisement
Self
Other
6. No. of time you use Dettol Soap in a day:
One
Two
Three
7. Do you aware of Dettol Soap contest in the market ?
Yes
No
8. By which source, you come to know about Dettol Soap
Contest :
T.V.
Newspaper/Magazine
Radio
Other
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9. Do you go for Dettol Soap Promo Pack than conventional
one
Yes
No
10Since Promo Offer is valid for Limited period. Do you
prefer to buy surplus quantity.
1-Promo Pack Extra
2-Promo Pack Extra
3-Promo Pack Extra
4-or more Promo Pack Extra.
10. Do you like to convey Dettol Soap contest messages to
others viz. Friends, Neighbours, Relatives etc.
Yes
No
11. Personal Details :
Sex : Male / Female
Age :
17-22
23-28
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29-34
above 34
12. Occupation :
13. Annual Income (Family) :
Less than 60,000
60,000 1,50,000
1,50,000 2,50,000
2,50,000 3,20,000
3,20,000 and above.
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Chapter- 4
DISCUSSION AND ANALYSIS OF RESULTS
1. Which bath Soap do you use ?
Dettol
Lifebouy plus
Lux
Others
RESPONSE:
40 consumer out of 50 are regular user of Dettol soap. 5-
consumers are part-time users. Specially during summer
month & rest 5 are non-user.
ANALYSIS
The non-user of Dettol Soap are due to the following
reasons-
High MRP of Dettol soap than conventional soap of otherleading brand.
Are allergic to characteristics fragrance of Dettol soap?
2. Why you prefer Dettol Soap over others?
Response
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The consumers prefer Dettol Soap because of the followingunique features
It is anti-septic in nature.
It kills germs from skin, thus provide full protection tobody ?
Any kind of wounds/ cuts automatically get antiseptictheraphy.
It gives more after-bath freshness than other soap.
3. How many Dettol soap(s), you use per month?
One
Two
Three
Four or more.
Response
The Bachelors consumer are using 1-2 soap per month. Thesmall family comprising of parents + kids are using 3-soapper month, and the large or joint families are using four ormore soaps per month.
Analysis
The consumption of Dettol soap is directly proportional tono. of adult consumer in the family. From above, study, asthe no. of adult members in the family rises, than Dettolsoap consumption per month is also increasing.
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The Research reveals that average consumption is threeDettol soap per month per family in metro city of Delhi.
4. For how long, are you using Dettol Soap?
6-month
1-year
2-year
2-years or more
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Response
The Dettol soap usage varies with season. Especially in thesummer month, the Dettol soap users are 70% while inwinter it reduces to 55%.
Analysis
The all walk of working people belonging to middle class &upper middle class are regular user of Dettol soap for one totwo years.
5. Who influence you to purchase the Dettol soap?
Family
Doctor
Advertisement
Others
Response
40% respondents use Dettol soapon Doctor advice, 30% onthe family influence and 20% influenced by theadvertisement, specially on cable channels etc.
Analysis
Some people have skin problem and needs more cleanlinessof skin, thus doctors advise them to use Dettol for dailybath and constitute bulk of customers, which is 40%.
Rest get influenced by advertisement, family etc.
6. No. of times you use Dettol soap in a day?
One
Two
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Three
Four
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Response
In general, the consumer uses Dettol soap twice a day.
7. Do you aware of Dettol soap contest in the market?
Yes
No
Response
50% consumers are aware of contest & the remaining 50%doesnt.
Analysis
The RBI, marketer of Dettol soap, choose cable channelsviz. Star Plus, Sony etc as the advertising vehicle.
The RBI doesnt prefer print media or Road side publicitythrough Banners, boards etc. Thus, 50% consumers are notaware of this contest because they arent regular viewer ofcable channel, maybe due to pre occupation with work or
other engagement.
8. By which source, you come to know about Dettol soapcontest.
T.V.
Newspaper
Radio
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Others
Response
70% consumers specially ladies & kids come to know aboutthe contest by cable T.V. channel. Rest come to know viafriends, relatives or shopkeepers.
Analysis
RBI introduces Dettol Soap Contest in the market but theyhave not gone for full-fledge advertisement, specially in theprint media.
9. Do you go for Dettol soap promo Pack thanconventional are:
Yes
No
Response
95% of respondents prefer promo pack in comparison to
conventional one.
ANALYSIS
In general, the consumers prefer the promo pack. SpeciallyDettol Soap Suraksha, Kapda aur Makan Contest because-
The use of Dettol soap protect (i.e. Suraksha), their skinfrom germ etc.
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The free gift offer of Robin Liquid Blue give whiteningaffect tocloths (ie kapda).
The gift coupon in the Lucky draw may provide Makan.
10. Since Promo ofer is valid for limited period. Doyou refer to buy surplus stock.
1-promo pack extr
2-promo pack extra
3-promo pack extra
4-from pack extra.
Response
95% consumers prefer to buy additional quantity of Promopack during the contest period.
ANALYSIS
The purpose of company as well as consumer get solved
From consumer angle, he/she is getting a additional benefitin the form Suraksha, Kapda aur Makhan, because in themetrocity l ike Delhi, every one likes to have his ownMakhan and if any promo scheme brightens the chances ofmakhan, he/she will prefer the contest.
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On the other hand, the company is also achieving theobjective-
The consumer instead of buying one soap at time, will gofor promo pack, which contain two soap. Moreover, thelimited period offer and attractiveness of Contest in term ofmeeting the basic needs of security & home, encourageconsumer to buy additional quantity of promo pack.Consequently the marketing goal of high sales volume inthe short period is achieved.
Further, high sales volume mean high sales turnover, whichin turn yield profitability to the company.
Moreover, the company is also able to position his newproduct, Robin Liquid Blue in the market.
11. Do you like to convey Dettol soap contestmessage to other viz. Friends, Neighbours,Relatives etc.
Yes
No
Response
97% of respondent like to convey Dettol soap contestmessage to their near & dear.
Analysis
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The company is getting extra mileage because they aregetting publicity for the product at no extra cost. This
factors also contribute in the sales turnover.
On the other hand, will also bring some percentage of non-user into the user category.
12. Personal details :
Sex :
Male
Female
Age :
17-22
23-28
29-34
above 34.
Response
The market research study on 50 consumers, is done-
40 are male consumers, and
10 are female consumers.
The 50% of males are in 23-28 age group range and rest50% are in 29-34 age group while the 40% females are in
17-22 years age group and 60% are 23-28 yrs age group.
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13. Occupation
Response
The 90% of consumers are working class eg. Schoolteachers, govt. service, Pvt. Organization, etc.
14. Annual Income (family)-
Less than 60,000
60,000 1,50,000
1,50,000 2,50,000
2,50,000 3,20,000
3,20,000 & above.
MOST FALL IN THE INCOME GROUP OF 1,50,000-2,50,000 FOLLOWED BY 60,000 1,50,000 .
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Chapter- 5
CONCLUSIONS
The following conclusions are drawn from the study:
1. Promo contest have synergistic effect on the sales
turnover, consequently on the profit ability of the
company.
2. Consumer do publicity of the contest and explain the
things more closely at no extra advertising cost. Thus are
economical in nature.
3. Consumer publicity have more penetration power than
other means.
4. The company is able to sell large volume (units) in the
shorter period, which in turn improves the sales turnover.
5. Help in the consolidation market demands, consequently
market share.
6. It helps RBI to position new product, Robin liquid blue to
target market segment along with dettol contest. Once
the target market for robin liquid blue is explore, it
special offer series with Rs. 3/- off is in the pipeline, to be
launched soon.
7. The Introduction and Decline stages of PLC are the right
place for Promotional Strategies because in the
introduction stage,need for right target market is there
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which is explore with the help promotional strategies as
in the case of Robin Liquid Blue respectively.
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BIBLIOGRAPHY
1. Kotler Philip, Marketing Management (10th edn.).
2. IGNOU Study material, MS-62 Sales Management
3. Kothari C.R., Research Methodology Methods &
Techniques.
4. Eugene M. Johnson, David Kurtz and Elurand Scheuberg,
Sales management, McGraw Hill.
5. G. David Hughes andCharles H. Singler, Strategic Sales
Management. Mass Addison Wesley.
6. Richard R. Still Adward. W. Cundiff and Norman A.P.
Govoni. Sales Management. Decisions. Strategies andCases.
7. David J. Bowersox. M. Bixby Cooper. Douglas M. Lambert.
Donald A. Taylor. Management in Marketing Channels,
McGraw Hill Book Company.
8. Louies W. Stern and Adel El Ansary, 1988. Marketing
Channels, Prentice Hall International.
9. Project Report on Market Research on Consumer
Behaviour Shanpoo Market in Delhi, D.P.C. Library, New
Delhi.
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ACKNOWLEDGEMENT
I take the opportunity to express my sincere gratitude to Dr.
R.L. Varshney, Faculty, DPC Institute of Management for his
invaluable guidance and constant encouragement during
the course of this project.
I would also like to thanks the employee of RBI who helped
me in completing this project.
RAKESH BEDI
MBA (PT) 6th Sem.
DPC Institute of Management.
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CERTIFICATE
This is to certify that the project entitled Role of
Promotional Strategies on Sales and Distribution
Management submitted in partial fulfillment of Master of
Business Administration and is a record of bonafide
research work carried out by Rakesh Bedi of DPC Institute of
Management under my supervision and guidance.
I wish him all the best for his future endeavors.
(Dr. R.L. Varshney)
Project Guide
Faculty,
DCP Institute of Management
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CONTENTS
Topics PageNo.
CHAPTER 1 1-4
Introduction
Objective of the study
Scope of the study
CHAPTER-2 5-24
Sales and Distribution Management
Promotional Strategies
Logistic Management
Product Life Cycle
Market ResearchCHAPTER-3 25-32
Research Methodology
Survey Method
Methods of Data Collection
Sampling
Questionnaire Design
CHAPTER-4 33-40
Results & Discussions
CHAPTER 5 41
Conclusions
BIBLIOGRAPHY 42
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PROJECT REPORT
ONROLE OF PROMOTIONALROLE OF PROMOTIONAL
STRATEGIES ON SALES ANDSTRATEGIES ON SALES ANDDISTRIBUTIONDISTRIBUTION
MANAGEMENTMANAGEMENT
In partial fulfillment for award of degree in Masterof Business Administration
Submitted by:
Rakesh Bedi(99/DP/MBA/PT/24)
DPC INSTITUTE OF MANAGEMENT
(AFFILIATED TO GGS INDRAPRASTHA UNIVERSITY)NEW DELHI
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