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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 of Vehicle. TheVehicle is generally defined as fast moving product having significant market presence or enjoying healthy share in the market demand. is used with the help

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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 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. Toothpaste with free plastic fridge

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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 channel functions. The exchange process i.e., the sale and delivery of management as comprises well as management of

institutions

physical

distribution

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 - Reaching an agreement on price transaction 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 f) Collection - Actual transfer of possession i.e. timely and safe delivery - 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 of concentration) target preference and and buying the

practices

the

customers,

certainly

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 need the

marketing cooperation

strategy, of

the

manufacturers

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 dealersales 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

responsibility

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 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 upon type and quality of sales personnel

g. Compensation of sales force

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h. Performance appraisal and control system i. j. Feedback mechanism to be adopted 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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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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Consumer goods Sales promotion

Advertising ===== DIAGRAM======== Personal selling

Public relations

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 providing contributes customers to with an organizations and success by

timely

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.
Inventory Flow

Supplier

Procurement

Manufacturing export

Physical distribution

Customers

Information flow

(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 posing sales pass through challenges, distinct stages, each and

different

opportunities,

problems to the seller. 3. Profits rise and fall at different stages of the product life cycle. 4. Products require different marketing, and human financial, resource

manufacturing,

purchasing,

strategies in each stage of their life cycle. Most product life-cycle curves are portrayed as bellshaped (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 productpreference 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 markdowns. 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. products Those remaining They may reduce the number of

they offer.

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 wellthough-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) (iii) What should be the target segment? 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 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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both

close

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open

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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. 13. Occupation : 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. 5consumers 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 reasonsHigh MRP of Dettol soap than conventional soap of other leading 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 following unique features

It is anti-septic in nature.

It kills germs from skin, thus provide full protection to body ? Any kind of wounds/ cuts automatically get antiseptic theraphy.

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. The small family comprising of parents + kids are using 3-soap per month, and the large or joint families are using four or more soaps per month.

Analysis

The consumption of Dettol soap is directly proportional to no. of adult consumer in the family. From above, study, as the no. of adult members in the family rises, than Dettol soap consumption per month is also increasing.
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The Research reveals that average consumption is three Dettol 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 the summer month, the Dettol soap users are 70% while in winter 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 to two years. 5. Who influence you to purchase the Dettol soap? Family Doctor Advertisement Others

Response 40% respondents use Dettol soapon Doctor advice, 30% on the family influence and 20% influenced by the advertisement, specially on cable channels etc. Analysis

Some people have skin problem and needs more cleanliness of skin, thus doctors advise them to use Dettol for daily bath 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 channels viz. Star Plus, Sony etc as the advertising vehicle.

The RBI doesnt prefer print media or Road side publicity through Banners, boards etc. Thus, 50% consumers are not aware of this contest because they arent regular viewer of cable channel, maybe due to pre occupation with work or other engagement.

8. By which source, you come to know about Dettol soap contest. T.V. Newspaper Radio

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Others

Response

70% consumers specially ladies & kids come to know about the contest by cable T.V. channel. Rest come to know via friends, relatives or shopkeepers. Analysis

RBI introduces Dettol Soap Contest in the market but they have not gone for full-fledge advertisement, specially in the print media.

9.

Do you go for conventional are: Yes No

Dettol

soap

promo

Pack

than

Response

95% of respondents prefer promo pack in comparison to conventional one.

ANALYSIS

In general, the consumers prefer the promo pack. Specially Dettol Soap Suraksha, Kapda aur Makan Contest becauseThe use of Dettol soap protect (i.e. Suraksha), their skin from germ etc.

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The free gift offer of Robin Liquid Blue give whitening affect tocloths (ie kapda).

The gift coupon in the Lucky draw may provide Makan.

10. Since Promo ofer is valid for limited period. Do you 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 Promo pack during the contest period.

ANALYSIS

The purpose of company as well as consumer get solved

From consumer angle, he/she is getting a additional benefit in the form Suraksha, Kapda aur Makhan, because in the metrocity like Delhi, every one likes to have his own Makhan and if any promo scheme brightens the chances of makhan, he/she will prefer the contest.

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On the other hand, the company is also achieving the objective-

The consumer instead of buying one soap at time, will go for promo pack, which contain two soap. Moreover, the limited period offer and attractiveness of Contest in term of meeting the basic needs of security & home, encourage consumer to buy additional quantity of promo pack. Consequently the marketing goal of high sales volume in the short period is achieved.

Further, high sales volume mean high sales turnover, which in turn yield profitability to the company.

Moreover, the company is also able to position his new product, Robin Liquid Blue in the market.

11. Do you like to convey Dettol soap contest message to other viz. Friends, Neighbours, Relatives etc. Yes No

Response

97% of respondent like to convey Dettol soap contest message to their near & dear.

Analysis

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The company is getting extra mileage because they are getting 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 nonuser 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 done40 are male consumers, and

10 are female consumers.

The 50% of males are in 23-28 age group range and rest 50% 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 teachers, govt. service, Pvt. Organization, etc.

eg.

School

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 2,50,000 FOLLOWED BY 60,000 1,50,000 .

1,50,000-

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Chapter- 5

CONCLUSIONS
The following conclusions are drawn from the study: 1. Promo contest have synergistic on the effect profit on the of sales the

turnover, company.

consequently

ability

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 (10 th 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 and Cases. 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) 6 th Sem. DPC Institute of Management.

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CERTIFICATE
This is to certify that the on project Sales entitled and Role of

Promotional

Strategies

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 CHAPTER 1 Introduction Objective of the study Scope of the study CHAPTER-2 Sales and Distribution Management Promotional Strategies Logistic Management Product Life Cycle Market Research CHAPTER-3 Research Methodology Survey Method Methods of Data Collection Sampling Questionnaire Design CHAPTER-4 Results & Discussions CHAPTER 5 Conclusions BIBLIOGRAPHY 42 41 33-40 25-32 5-24 Page No. 1-4

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PROJECT REPORT ON

ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT

In partial fulfillment for award of degree in Master of 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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