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Transcript of Poonam Badam Milk Project 1
SRM UNIVERSITY
A study on Sales Promotion Techniques with special reference to ‘Poonam Badam Milk Pvt. Ltd.,
Project Submitted SRM UNIVERSITY
By
Prabavathi.GReg No 3511010503
In Partial Fulfillment of theRequirement for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF BUSINESS ADMINSITRATIONSRM UNIVERSITY
KATTANGULATHUR,KANCHEEPURAM DISTRICT,
CHENNAI.
BONAFIDE CERTIFICATE
This is to certify that the entitled “A STUDY ON SALES PROMOTION
TECHNIQUES WITH SPECIAL REFERENCE TO ‘POONAM BADAM
MILK PVT. LTD., submitted for the degree of Master of Business
Administration by Prabavathi.G, is the record of the research work carried out by
her, during the period Of April 2012 under my guidance and supervision and this
work has not formed the basis for the award of any Degree, diploma, Associate
ship, fellowship or any other title in this University or any other University or
Institution of higher learning.
Submitted for the viva-voce examination held on ---------------------
………………. ……………….
S.CHANDRAN Dr.JAYASHREE SURESH
(project Guide) ( Dean, MBA)
………………..
(External Examiner)
DECLARATION
I declare that the dissertation entitled “A STUDY ON SALES PROMOTION
TECHNIQUES WITH SPECIAL REFERENCE TO ‘POONAM BADAM
MILK PVT. LTD., submitted by me for the Degree of Master of Business
Administration, is the record of research work carried out by me during the period
from April 2012 under the guidance and supervision of Mrs. S..CHANDRAN ,
Asst Prof, Department of Business Administration, S.R.M School of
Management, SRM University Chennai and that this work has not formed the
basis for the award of any degree, diploma, associate ship, fellowship or any other
title in this university or any other university or Institution of higher learning.
Place:Kattankulathru Signature of the Student
Date: (G.Prabavathi)
ACKNOWLEDGEMENT
I convey my sincere gratitude to my guide Mrs. G.Chandran,
Department of Business Administration, S.R.M College, Chennai
S..CHANDRAN for his excellent guidance, support and encouragement
throughout the period of study.
I Thank to S..CHANDRAN for hisr support to carry out my studies in this
institution.
I owe my thanks to all the staff member of the Business Adminsitration
Department, S.R.M College for their constant hope and encouragement.
I Thank my family members, for their support extended throughout my study.
TABLE OF CONTENTS
CHAPTER
CONTENT
PAGE
NO
INTRODUCTION
ABOUT THE COMPANY
INDUSTRY PROFILE
ABOUT THE COMPANY
HR PRACTCES BY THE COMPANY
CONSUMER SALES PROMOTIN&
METHODS OF PROMOTIONFINDINGS
SUGGESTIONS
CONCLUSION
Introduction
IMPORT:
In a time when customers are exposed daily to a nearly infinite amount of
promotional messages, many marketers are discovering that advertising alone is
not enough to move members of a target market to take action, such as getting
them to try a new product. Instead, marketers have learned that to meet their goals
they must use additional promotional methods in conjunction with advertising.
Other marketers have found that certain characteristics of their target
market (e.g., small but geographically dispersed) or characteristics of their
product (e.g., highly complex) make 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 promotion.
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.Sales promotion describes promotional methods using special short-term
techniques to persuade members of a target market to respond or undertake
certain activity. As a reward, marketers offer something of value to those
responding generally in the form of lower cost of ownership for a purchased
product (e.g., lower purchase price, money back) or the inclusion of additional
value-added material (e.g., something more for the same price).
Sales promotions are often confused with advertising. For instance, a
television advertisement mentioning a contest awarding winners with a free trip to
a Caribbean island may give the contest the appearance of advertising. While the
delivery of the marketer’s message through television media is certainly labeled
as advertising, what is contained in the message, namely the contest, is considered
a sales promotion. The factors that distinguish between the two promotional
approaches are:
1. whether the promotion involves a short-term value proposition (e.g., the
contest is only offered for a limited period of time), and
2. the customer must perform some activity in order to be eligible to receive
the value proposition (e.g., customer must enter contest).
The inclusion of a timing constraint and an activity requirement are
hallmarks of sales promotion.
Sales promotions are used by a wide range of organizations in both the consumer
and business markets, though the frequency and spending levels are much greater
for consumer products marketers. One estimate by the Promotion Marketing
Association suggests that in the US alone spending on sales promotion exceeds
that of advertising.
Objectives of Sales Promotion
Sales promotion is a tool used to achieve most of the five major promotional
objectives discussed in the Promotion Decisions tutorial:
Building Product Awareness – Several sales promotion techniques are
highly effective in exposing customers to products for the first time and
can serve as key promotional components in the early stages of new
product introduction. Additionally, as part of the effort to build product
awareness, several sales promotion techniques possess the added
advantage of capturing customer information at the time of exposure to
the promotion. In this way sales promotion can act as an effective
customer information gathering tool (i.e., sales lead generation), which
can then be used as part of follow-up marketing efforts.
Creating Interest – Marketers find that sales promotions are very effective
in creating interest in a product. In fact, creating interest is often
considered the most important use of sales promotion. In the retail
industry an appealing sales promotions can significantly increase
customer traffic to retail outlets. Internet marketers can use similar
approaches to bolster the number of website visitors. Another important
way to create interest is to move customers to experience a product.
Several sales promotion techniques offer the opportunity for customers
to try products for free or at low cost.
Providing Information – Generally sales promotion techniques are
designed to move customers to some action and are rarely simply
informational in nature. However, some sales promotions do offer
customers access to product information. For instance, a promotion may
allow customers to try a fee-based online service for free for several
days. This free access may include receiving product information via
email.
Stimulating Demand – Next to building initial product awareness, the
most important use of sales promotion is to build demand by convincing
customers to make a purchase. Special promotions, especially those that
lower the cost of ownership to the customer (e.g., price reduction), can
be employed to stimulate sales.
Reinforcing the Brand – Once customers have made a purchase sales
promotion can be used to both encourage additional purchasing and also
as a reward for purchase loyalty (see loyalty programs below). Many
companies, including airlines and retail stores, reward good or
“preferred” customers with special promotions, such as email “special
deals” and surprise price reductions at the cash register.
Classification of Sales Promotion
Sales promotion can be classified based on the primary target audience to whom
the promotion is directed. These include:
Consumer Market Directed - Possibly the most well-known methods of
sales promotion are those intended to appeal to the final consumer.
Consumers are exposed to sales promotions nearly everyday, and as
discussed later, many buyers are conditioned to look for sales promotions
prior to making purchase decisions.
Trade Market Directed – Marketers use sales promotions to target all
customers including partners within their channel of distribution. Trade
promotions are initially used to entice channel members to carry a
marketer’s products and, once products are stocked, marketers utilize
promotions to strengthen the channel relationship.
Business-to-Business Market Directed – A small, but important, sub-set of
sales promotions are targeted to the business-to-business market. While
these promotions may not carry the glamour associated with consumer or
trade promotions, B-to-B promotions are used in many industries.
Sales Promotion Trends: Customers Expectations
Marketers who employ sales promotion as a key component in their
promotional strategy should be aware of how the climate for these types of
promotions is changing. For instance, the onslaught of sales promotion activity
over the last several decades has eroded the value of the short-term requirement to
act on sales promotions. Many customers are conditioned to expect a promotion at
the time of purchase otherwise they may withhold or even alter their purchase if a
promotion is not present. For instance, food shoppers are inundated on a weekly
basis with such a wide variety of sales promotions that their loyalty to certain
products has been replaced by their loyalty to current value items (i.e., products
with a sales promotion). For marketers the challenge is to balance the advantages
short-term promotions offer versus the potential to erode loyalty to the product.
Sales Promotion Trends: Internet Communication
For many years consumers typically became aware of sales promotions in
passive ways. That is, most customers obtained promotions not through an active
search but by being a recipient of a marketer’s promotion activity (e.g., received
coupons in the mail). The Internet is changing how customers obtain promotions.
In addition to websites that offer access to coupons, there are a large number of
community forum sites where members share details about how to obtain good
deals which often include information on how or where to find a sales promotion.
Monitoring these sites may offer marketers insight into how customers feel about
certain promotions and may even suggest ideas for future sales promotions.
Objectives of the study
Primary objective
To study the effective training and sales promotion program
conducted in Poonam Badam Milk Pvt. Ltd
Secondary objectives
To study whether training enhances the skills of the employees.
To study the H.R functions been carried out by the organisation
To determine the developmental task of the individual through
training.
To find out the satisfactory level of employees on training and
development programs being conducted at Poonam Badam
MilkPvt. Ltd
The direct interview schedule has not be followed due to
employees engagement in work.
Since the sample size is small it cannot be considered as true
representation of the whole population.
Time of financial constraints has also been a limitation for the
study.
SCOPE OF THE STUDY
The survey has been confined to the employees in different levels..
The study covers introduction to the Sales training program and various
type of Sales training programs which Poonam Badam Milk provide to
its employee
The results of this study will be useful to the organization in designing
effective Sales promotions and training programmers by considering
the employee interest.
INDUSTRY
PROFILE
INDUSTRY PROFILE:
Soft drink production
Soft drinks are made by mixing dry ingredients and/or fresh ingredients
(for example, lemons, oranges, etc.) with water. Production of soft drinks can be
done at factories or at home.
Soft drinks can be made at home by mixing either a syrup or dry
ingredients with carbonated water. Carbonated water is made using a home
carbonation system or by dropping dry ice into water. Syrups are commercially
sold by companies such as Soda-Club.
Drinks like ginger ale and root beer are often brewed using yeast to cause
carbonation.
Ingredient quality
Of most importance is that the ingredient meets the agreed specification
on all major parameters. This is not only the functional parameter (in other words,
the level of the major constituent), but the level of impurities, the microbiological
status, and physical parameters such as color, particle size, etc.[10]
Potential alcohol content
A report in October 2006 demonstrated that some soft drinks contain
measurable amounts of alcohol. In some older preparations, this resulted from
natural fermentation used to build the carbonation. In the United States, soft
drinks (as well as other beverages such as non-alcoholic beer) are allowed by law
to contain up to 0.5% alcohol by volume. Modern drinks introduce carbon dioxide
for carbonation, but there is some speculation that alcohol might result from
fermentation of sugars in an unsterile environment. A small amount of alcohol is
introduced in some soft drinks where alcohol is used in the preparation of the
flavoring extracts such as vanilla extract.
Thus we can really challenge the hygienic and the ill effects of having a soft
drinks which is on rise by glamorous advertisements given by the popular figures.
Considering the above factors a feel of insecurity captures the mind of every
individual who inclines towards keeping up the health in a natural way.
ABOUT THE
COMPANY
POONAM BADAM MILK
Poonam Badam Milk is one of the leading Manufacturer & Distributor of
Fresh Kesar Badam Milk & Fruit Drinks, Situated at Velachery in Chennai,India.
Poonam Enterprises, is a First Fresh Kesar Badam Milk Maker in
Chennai.They started basically for the considering the Health of the
Customers.The Organization purchase the natural ingredients directly from the
Formers.The farming community is an integral part and forms the backbone of the
organization. specialize in the production of Fresh Kesar Badam milk, Fruit
drinks that stand high in terms of quality. Purity and hygiene being the distinct
features of this range, their Products are manufactured as per the Industrial Norms
and Standards. Backed by an expert and qualified team of professionals, to fulfill
their customer’s expectations with superior quality products at industry leading
prices. Owing to their knowledge and experience of the industry, they have been
able to deliver our range of Poonam Products and its by Products and Spices as
per the defined quality standards.
The company works with adopting to current marketing scenario whereby
adapting the modern techniques in implementing its promotions. They also
emphasize on the various factors that have made them a preferred choice to most
of the people and their customers numbers is on rise.
COMPANY PROFILE
Poonam Badam Milk was prime supplier of health drinks.Poonam Badam
Milk carries a good trade names and enables to harness the benefits of its size
Overview
Poonam Badam Milk is one of the largest supplier of badam milk drinks in
Tamilnadu and the prominent player in Chennai having a wide range of network
through which they supply. Its main activities are providing drinks which to
everybody at a reasonable prices and with a good on not compromising on the
health issues of the customers.. The company has employees serving near to 6
lakhs customers in southern part of Tamilnadu.
Background
Poonam Badam Milk planned journey towards being recognized as a world-
class standard of refresh drinks. They are also making more effective use of our
marketing spend, particularly in advertising and sponsorship. The Poonam Badam
Milk matches the aspirations we have for our customers.”
The Poonam Badam brand today
Today the Poonam Badam Milk brand is alive and trading in many part of
Chennai and Tamilnadu as been recognized as a progressive company – one that
creates a healthy soft drinks keeping in mind the customers needs. It is this
insight – this ability to think beyond what is called a just a soft drinks sales – that
makes them who they are.
Standards of business conduct
Poonam Badam Milk is committed to ensuring that their business is
conducted in all respects according to the Govt.Health regulation, professional
and legal standards.
Customers
Poonam Badam Milk seeks to provide their customers with a product that
hallmarked by integrity, quality, and care.
Workforce
Poonam Badam Milk is guided by the aim to be the employee into a noble
profession in which they operate.
Health and safety
Poonam Badam Milk is committed to providing a working environment,
which is both safe and fit for the intended purpose and ensures that health and
safety issues are a priority for all business operations.
Suppliers
Poonam Badam Milk regard suppliers as their partners and work with them
to help achieve their policy aspirations in the delivery of products
Environment
Poonam Badam Milk is committed to a programme of management, continuous
improvement and reporting of direct and indirect impacts, which marks its
contribution to improving the product by which they live.
Poonam Badam Milk recognizes that their business activities have direct and
indirect impacts on the societies in which they operate. Poonam Badam Milk
endeavor to manage these in a responsible manner, believing that sound and
demonstrable performance is a fundamental part of business success. Poonam
Badam Milk are committed to continuous improvement in the products and
encourage their network partners to strive for quality performance.
HR PRACTISES IN POONAM BADAM MILK PVT .
LTD
JOB ANALYSIS
The job analysis or the information about the job is provided to the aspirants are
usually done through conventional methods like advertisements as well as
through thenotifications in the official website of Poonam Badam Milk Pvt.
Ltd
RECRUITMENTS
Poonam Badam Milk Pvt. Ltd adopt an unique procedure of screening,
they usually send a structured questionnaire to the applicants. The responses or
answers to the questionnaire are evaluated by the managers and on the basis of
that they downsize the candidates before the interview. and The company
usually hire the employees by this method and for jobs which does not need
expertise they select by personal contacts.
TRANING
The company provide a range of professional management training and
development services and solutions from the design of self managed learning
tools, providing a coaching service to delivering a broad range of interpersonal
skills training courses leadership, and sales and people management,. They work
with their clients to ascertain their real training needs and provide customised
training solutions that fit seamlessly with their organisation's requirements and
culture.
They provide:
Executive coaching
Executive coaching is aimed at individually nurturing starting –level and
mid-level executives to achieve their career and personal goals, thus to excel in
their life. POONAM BADAM MILK COMPANY recognises the fact that
Executive Coaching and business mentoring today, is widely accepted as an
essential part of the process of continuous learning in the arena of competitive
business. It is an integral part of leadership development for top-rung
executives. POONAM BADAM MILK COMPANY provides a one-to-one
collaboration between a certified coach and an executive, who wants to better
his/her leadership skills, access new perspectives and above all reach maximum
potential. At the same time they, make executives into groups of 10 or less, can
provide excellence through group activities and case studies. Training and
coaching provides continuous support and is an investment that is made in
developing your key HR resource, high-level managers, for the long-term benefit
of the organization. POONAM BADAM MILK COMPANY’s training and
coaching engrains a unique methodology, where the framed strategic goals of the
organisation are made easier to achieve by understanding the organisational
behaviour and change required for the firm.
Main features
Profound analysis of the organisation and their managerial and leadership
objectives, planning and implementing personal and business strategy.
Identifying strengths and weakness in personal performance through self-
reflection or/and feedback and thus developing in response
Planning for next role and indentifying development needs.
Manage up and manage down
Successfully sell your ideas
Achieve results with ease
Become an inspired leader and raise your emotional intelligence (EI)
quotient
Boost your creative intelligence
Create deep and satisfying people relationships
Attract success in life, work, and business
Business Coaching
The company delivers Business Coaching using its expert professionals in the
particular field of business and the programme content is tailored to address
specific needs of the client. It is delivered by a mixture of the coach being an
expert and a facilitator, using directive management of the programme and a non-
directive style of coaching throughout.
It focuses on such kind of individualised development programmes rather
than scheduled training programmes as, CEOs, company directors and senior
executives do not have time to wait for a conventional coaching modules which
leads to spending days away from the office. Although more expensive than
training, business coaching is more convenient and thus entails a lower
opportunity cost for a busy company director or executive, since our business
coaches will be flexible enough to meet where and when the client wishes.
Typical issues addressed through business coaching:
Developing a compelling vision, mission and strategy
Understanding and using numbers (Key Performance Indicators)
Planning and Execution
Sales and Marketing
Recruiting Winners
Influencing and Presenting
Managing Time
Leading People
Coaching Winners
Team Development
Thinking like a winner, to be a market leader.
Sales training
POONAM BADAM MILK COMPANY’s Professional Sales
Training teaches effective selling skills for marketing and sales professionals
helping them to significantly improve the ability to shoot up the sales of the
organization. It’s Sales Training programs of help sharpen the selling skills of
even experienced sales representatives, enabling them to take advantage of sales
opportunities and aggressively expand the business. By providing a simulated
class room environment where they can make mistakes and learn from them,
organizations can benefit from having sales representatives who can make the
greatest impact on a daily basis.
The company’s sales training focuses on the following areas:
Determine the needs of the customers
Understanding the selling process
Talking the customer’s language
Avoiding common sales mistakes
Maximizing the sales on the feebacks of the customers.
Consumer Sales
Promotion and
Methods of
Promotion
A sales promotion is a marketing technique that is designed to
entice a customer to take a specific action such as make a purchase or
request more information. A sales promotion usually occurs for a
limited period of time to help create a sense of urgency. Examples of
sales promotion can include coupons, free trial periods and discounts,
to name a few. Sales promotions offer a number of advantages to the
owner of a small business.
By offering a reduced price on a popular item, you can lure
customers away from competitors, which may ultimately help turn
them into regular shoppers. For example, if you own a small
electronics store that's competing with a large retailer, offer a
discounted price on a popular cell phone model for a limited time. If
you serve the customers well during the purchase process, they may
be willing to come back.
Price discounts or price-off deals:
Price deals are probably the most commonly used promotional techniques
and Badam milk company is no exception to this. Since its sales have a great
impact on the climatic conditions normally to during winter seasons to boost up
the declining sales during this period it offers a discount on its price.
Price discounts are communicated through POP advertising, window
displays, sales people, advertising in newspapers, magazines and TV
ads.Such promotions work very well in gaining the attention of
consumers, particularly at the point of purchase among similar brands
and may also encourage unplanned or impulse buying.
A price deal for a customer means a reduction in the price of the
promoted product and the consumer saves money on purchase.
The below data shows the actual price of the product and the total sales
Year Actual Price
In Rupees
Discounted Price
In Rupees
Total Sales
(In bottles)
2008-2009 17 15 18468 bottles
2009-2010 17 16 19210 bottles
2011-2012 18 16 21574 bottles
Fig. 1.1
From the above figure we can conclude that the discounted price has a very
good impact towards sales and so the company continues to adopt the sales
promotion strategy in future also.
Advantages of Discounted Prices
The main advantage of this tool is that extra product may encourage
increased usage and help sustain the habit. Also among other similar
brands, a bonus pack stands out at the point of sale.
1.Profit Improvement-So far as Individual capacity is concerned, cost reduction
helped Poonam Badam Milk Company in profit improvement. The more the
profits, the more the stable the company becomes. It enhanced the value,
improves investment opportunities and facilitates the collection of capital.
2. Benefit to the Consumers-The consumers are the ultimate beneficiaries. They
are benefited by the reduced prices which may be possible by savings form cost
reduction programs. Competitive position will improve and the industry as a
whole will strive to improve the productivity and pass on the advantage of such
programs to the consumers.
3. Increase in the Staff Wages- Workers and staff of the industry may also be
benefitted through increased wages and improved staff welfare amenities. Since
4. Increase Market - The company is also benefitted by identifying their
potential areas as the sale differs in various region and thus helps the company to
implement a different plan according t he variation in the regions.. Also internal
revenue will increase through more tax savings.
Disadvantages
There are many important factors that affected.For example,
elasticity of demand for consumer products, as product prices, while a
substantial increase in the number of consumers to buy, the firm may
be more so then and more profit. The contrary, or if there is no
obvious change in sales volume, the company profits will be reduced.
3. Price war- Companies of similar products too offered discounts
by the period where it went to stage that the lowest bidder reaps
more sales. It ultimately make the company into a price war.
Prices may lead to other business enterprises have also followed
the price, which have lead to price wars. Price war is cruel, if
the enterprises do not have the strength of strong support, such
as financial strength, channel power, etc., soon, businesses will
be peer-to break down. But this company with strong strength
defeated the opponents finally to achieve the desired sales.
Therefore, enterprises should think twice on the price war.
4. Quality Re-check- This is evident as many of the customers re-
checked with the retailer about the quantity and the quality as of
fact there was no change but the tendency of the customers on
reduction leads to the creating a conscious of the decline in
quality.
Product price adverse selection problem exists, that
consumers may think that product quality is the price to drop down
and therefore, some consumers have in mind to "get what you pay"
concept. However, the company ensured product quality, makes the
product "inexpensive", there by consumers are more favored in their
enterprises.
Samples, Free Product and Premiums
This is one of the technique been implemented by Poonam
Badam Milk Pvt. Ltd. and just like reduction in prices it also enabled
them to capture a huge market share.
Enticing members of a target market to try a product is often
easy when trial comes at little or no cost to the customer. The use of
samples and free trials may be the oldest of all sales promotion
techniques dating back to when society advanced from a culture of
self-subsistence to a culture of trade.
Sampling and free trials gave customers the opportunity to
experience products, often in small quantities or for a short duration,
without purchasing the product This leads the customer to get
acquainted with the taste of the product and be a customer of it in
mere future.
Though these methods are used in almost all industries
especially useful for getting customers to try a product for the first
time. This has been very much successful to the Poonam Badam
Milk company
Year
Total expenditure
Total Sales
Increase in
sales in the
next year
2008
Rs-3.43 lacs 8.43 lacs 15.63%
2009
Rs-3.54 lacs 9.26 Lacs 17.21%
2010 Rs- 2.64 lacs 12.54 Lacs 34.57%
2011 Rs- 1.89 lacs 16.47 Lacs 43.51%
Fig-1.2
From the above figure we can conclude that there is a huge
improvement in sales from the year the plan been implemented and
gradually during the course of time the promotional cost been is
reduced as the out put been increasing which resulted in future profits.
From the above a we can very easily conclude that this strategy work
out positively for the company and resulting the increase of sales of
the product there by affirming that the price discounts is always is
one of the very powerful method of sales promotion irrespective of its
product a company deal with.
Internal Competition
Fostering a sense of healthy internal competition is another
method adopted by Poonam Badam Milk Company for developing a
sales team. They made availability of incentives and rewards for
performance. Most sales people involved in the competition seek out
new and creative methods to improve on their own, and attempt to
learn best practices from high-performing team members. For
example, in Velachery branch the staffs use do work for long hours
for the completion of assigned project. This been for their own benefit
as the company offered a cash bonus for the highest sellers in a given
period.
They also created a contest in which the entire sales team attempts to
hit a certain goal, with a reward of a company sponsored retreat. The
Rewards includes a trip to Ooty , Kodaikanal and other places.
The result of was so fruitful to the company that it was able to
see a high production and there by increasing the sales volume to a
considerable amount.
Those who are excelling at sales helped those who are less
effective by sharing techniques and tips, and performing role-playing
training exercises.
At the same time Poonam Badam Milk H.R was very much cautious
and concerned that they make the internal competition light-hearted
and friendly, so as not to destroy the sense of teamwork.
It was successful and helped the human resources department to
adopt a plan based on their experience.
Positive Motivation
As the sales manager of Poonam Badam Milk, they also provided
positive, e motivation. Focussing on the good points of each
salesperson’s individual style, and compliment them when they are
successful. They framed necessary criticism in such a way that it is
not derogatory or personally hurtful.
For example, if one salesperson is not aggressive enough at
making sales, they commented as ‘ you know they have a strong
sense of boundaries and professionalism that makes them hesitant to
bother busy executives, but that it is important to be aggressive with
repeat phone calls.
Thus by creating a team atmosphere in which their sales team
feels that they are supported by their supervisors, and they created a a
group of willing individuals who genuinely enjoyed their work and
want to do better at it.
Poonam Badam Milk derived the following advantages by
adopting the Sales Promotion Techniques.Luring New Customers
with Price- There customers increased to a considerable number
in quick span of time.
Gaining Community Favor
It created a good name for their business by staging the
promotion that supports a worthy cause. For example, in velachery
area they installed a free cold water stand near the bus stops during
summer seasons and also they donated .Traffic Police booth near a
prominent road junction to facilitate the traffic police there by
helping the , which is a win-win for everyone and may leads to more
business by becoming more familier and was a good brand building
process.
Encourage Repeat Purchases
Poonam Badam company used rewards programs to encourage
customer loyalty, and they executed it for the business. They
introduced a purchase card and that you hole-punch each time the
customers make a purchase. After they make 10 purchases, they can
redeem the card for a free bottle of badam milk.
Thus a sales promotion has helped to retain o potential
customers that aids them in making a decision. This is beneficial for
company to face the severe competition prevailing in the market.
Findings
The company has shown a gradual increase in its Sales
The amount of expenditure spent towards the sales promotion
is moderate & the output is at inclining state.
The Employees Morale is been kept at a healthy conditions by
being successful in their operations. Packages like Extra over
time & perks increased the employee out put.
Marginal amount been invested allotted on the budget towards
the sales promotion of the company on yearly basis and this is
been on rise.
The machinery and the plant cost has seen an maximum
utilization whereby the replacement of the machines and the
maintenance cost is on high during the period.
There is a drastic improvement in the sales when the new
schemes been introduced and by that they were able to spread
their markets in an untargeted areas.
During the period there is an increase of employees since the
production has gone high and so it demands a new recruitment
of skilled and unskilled manpower
1. Increasing Competition
Due to increase in competition, Soft drinks companies are finding it
increasingly difficult to compete on quality. They are therefore
resorting to more innovative methods of sales promotion. In order to
have a competitive advantage over its competitors like Pepsi, Coke
and other soft drinks once a year such kind of sales promotions
should be followed. 50%.
2. Customers Have Become More Price Sensitive
This increased price sensitivity is a direct result of rampant
inflation. Economic recession is likely to fuel this trend further, as
consumers and dealers become more sensitive towards prices. If the
customers get branded drinks at half the actual price, then they are
definitely going to make huge purchases of Poonam Badam drinks
because they want value for their money, as they are price sensitive.
3. Sales Promotions Generally Create An Immediate Positive
Impact On Sales
Advertising, personal selling and other methods of promotion
produce slower sales response compared to sales promotion. Sales
promotions are mostly adopted by Poonam Badam Milk company
mostly for short duration, for a specified period, leading to a sense of
urgency in consumers to buy now. This creates an immediate positive
impact on sales.
4. Products have become more standardized
In many soft drinks company, there is a proliferation of brands. Most
drinks are being perceived by consumers to be more or less similar
within a given price range because of the inability of manufacturers to
develop truly differentiated products.
Under these circumstances, advertising messages are unable to
strongly influence the consumers’ perceptions and create brand
franchise. As a result of these perceptions of similarity among brands,
marketers have no way but to compete on the basis of extra benefit
offered through sales promotion.
There are many unbranded soft drinks sold at ice cream shops and
shopping malls and places like outer Chennai which are bought at
half the price of actual branded drinks. People who are money
conscious buy such drinks ingnoring the health. Therefore, Poonam
Badam Milk Jeans comes up with such discounts, which helps them in
increasing their sales and also in stock clearance, if any.
5. Consumer Acceptance
As competition intensifies and promotions proliferate, consumers
have learnt to earn the rewards of being smart . Over a period of time,
they have also learnt that brands on promotion are not necessarily of
lower quality.
Poonam Badam Milk sold at disount rates, are not perceived to be a
brand of low quality. Instead, people even time their purchase
accordingly.
6. Advertising Has Become More Expensive And Less Effective
All the advertising media have become quite expensive. Audio-
visual medium, which is considered as the most effective for short-
duration ads, may cost in excess of Rs. 1 lakh for a 10 second
exposure during prime time. In many cases, consumers have reached a
point of boredom due to excessive advertising on TV. Some
consumers even consider advertising as an intrusion into their privacy,
leading to zapping (surfing channels). Firms with small budgets
cannot compete with big companies, which spend huge sums of
money on advertising.
For these small budget firms like Poonam Badam Milk sales
promotion is a more cost-effective promotion method to produce sales
results.
7.Trade Has Become More Powerful
Retailers and wholesalers have become powerful and find themselves
in a position to demand extra facilities from the companies. They
Channel members demand more incentives to get the desired results.
Manufacturers do not seem to have any alternatives but to
concede to their demands, keeping in view the competitive market
conditions. In soft drinks shop decent margins have to be paid to
them in order to have shelf visibility for Poonam Badam Milk brand.
8. Emphasis On Sales Volumes
Towards achieving the long-term profit goals, Poonam Badam
Milk manufacturers try to attain high sales volume. Brand managers
and product managers find themselves under pressure to achieve
short-term sales results for the sake of their careers. Compared to any
other promotional method, sales promotion is a more effective method
to generate short-term sales volume.
9. Sales Promotions Maximise Profits
A number of economic theories conclude that a company can
maximise profits by using sales promotion. Such promotions can
permit price discrimination by allowing the brand to compete in 2 or
more different market segments. Sales promotion may allow a
premium brand to compete with a lower tier brand among price
sensitive consumers. For example, a premium brand of soft drinks
may be on promotion in some price sensitive markets, while in the
remaining markets it is sold at its normal price.
10. Introducing An Element Of Interest:
There are a number of promotions, which are often called interest
promotions. Some of the more popular interest promotion techniques
are samples, contests, and sweepstakes, free premiums and mail-in
premiums. These promotions create an element of interest and
excitement, and consumers enjoy these and response enthusiastically
to such contests and sweepstakes, etc.
11. Impulse Buying Is Increasing
The number of marginal customers is increasing. Displays at
the point of purchases lead to impulse buying by consumers, more so
if the items on display are not expensive.
Poonam Badam Milk company adopted a popular saying in Tamil,
“Ungal Nalanai manadhil kondu thayaritha baanam.” Which the
manufacturer is much focused on the health of the customers
consuming their drinks.
This had a very good impact in the long term in gaining a brand
image.
13. Excess Stocks
Because of increasing number of brands, it is difficult for Poonam
Badam Milk Company to anticipate future sales. This, at times, leads
to excessive inventories, and the quickest way to clear that is to go
for sales promotion.
SUGGESTIONS
Sales promotion activity such as trip to places had incurred a
major expenses though the sales been increased. But cost per
bottle has gone high during the period as the expenses is so
high during the period for the employees. So a proper cost
control system should be adopted to avoid such a situation..
The maintenance cost has gone doubtle the level and so the
other cost. Therefore though there the sales figure been inclined
in the very next season it has touched the below normal level
which shows it was a short term profit mechanism. So a
pragmaticc approach is the need by the time.
Due to over allocation of work and high out put from the
employees which also resulted in huge employee turnover. This
also leads to situation where the toughest one been retained which
is not a healthy sign in the long run for the organization. So there
should be a benchmarks been set up and proper standards on an
employee out put should be taken and a realistic measurement of
performance should be implemented rather than focusing only on
the quanity based.
Companies of the sectors should be revised in order to make the
allocations much more effective.
More departmental allocation of work should be focused .hence
the focus only towards the numbers should be reduced.
The allocations made in different departments should be
revised every year to make the allocation of fund to be a
reasonable one to carry on the functions without affecting the
company budget allocation.
CONCLUSION
Sales promotional progamme is an important progamme in
developing an organization. Every organization conducts training
programs for the development of the personnel in the organization.
The employees in “POONAM BADAM MILK” are happy with
their overall training programs, which were conducted in the
organization. The company implements promotion techniques
programs based on the latest scientific techniques. And also such
promotions are required for organizations to boost up the sales.
The people who are provided training facilities & execute such
promotional techniques should give an opportunity to the employees
also to clear their doubts at the time training programs and also
implement it in their work processes.
The Sales promotion programs are conducted on yearly basis
because they are transferred from one job to another so as to improve
their skills in different areas.
“POONAM BADAM MILK” being a Pvt. sector organization, it
can be called as a model employer, not only in accomplishing its
objectives in other fields, but also in the matter of equipping
themselves in all manners by conducting various promotional
programs to enhance their Sales & human resources skills.
A STUDY ON “Sales Promotion Techniques” at Poonam Badam Milk Company LTD, Chennai.
A STUDY ON “Sales Promotion Techniques” at Poonam Badam Milk Company LTD, Chennai.
PERSONAL INFORMATION
1. Name(optional) --------------------
2. Age:
a) Below 25 b) 26-30 c) 31-35 d) 36-40 e) Above
40
3. Gender:
a) Male b) Female
Consumer Experience :
a) Below 2 years b) 3-5 years c) 6-8 years
d) 9-12 years e) Above 12 years
4. Educational qualification
a) HSC b) Diploma c) Graduate d) Master degree
e) Others
QUESTIONNAIRE ( On Consumers)
1. How long since you have used this Product?
a)0-6 months b) 6-12 months c) 1 year and above .
2.In Case of fresh consumer
Is there any reason you switch over to this product?
a)Good taste b) just like that c) No comments
2. What is the satisfaction level about the product?
a)Highly satisfied b) Satisfied c) Neutral d) Dissatisfied
e) Highly dissatisfied
3.What do you feel about the discount given to you?
a) It’s good b) Satisfied c) I consume more d) No
comments
5. Do you know that you can express your views in the
company?
a) Yes b) No
6.If yes, have you done it before ?
a) Yes b) No c) No idea
7.If so is the response was satisfactory?
a) Highly satisfied b) Satisfied c) Neutral d)
Dissatisfied e) Highly dissatisfied
QUESTIONNAIRE ( On Employees)
8.What type of relations are you having with your superior,
peers and subordinates?
a) Very Good b) Good c) Average d) Bad e) Very
Bad
9.What is your view on the practice & policies of the
management?
a) Strongly agree b) Agree c) Neutral d) Disagree
e) Strongly disagree
10.What type of training is provided by management?
a) Induction or Orientation Training b) Job Training c)
Internship Training d) Training For Promotion
e) Refresher Training or Retaining
11.Are you satisfied with the promotional policy?
a)Highly satisfied b) Satisfied c) Neutral
d) Dissatisfied e) Highly Dissatisfied
12.What types of monetary benefits provide by the
management to employees?
a) Increment b) Increment with promotion c)
Bonus d) Gifts
e) Travelling Allowances
20.Whether you are satisfied with the financial support from
the organization?
a) Strongly agree b) Agree c) Neutral d) Disagree e)
Strongly disagree
21.What are the kinds of non monetary benefits provided by
Any other specify ------
22. Any suggestion for Product Improvement-----------------