STUDY OF CONSUMER ORIENTED
SALES PROMOTION IN FMCG
SECTOR

Tushar N. Chole
MGM’s Institute of Management,
Aurangabad, Maha...
A PROJECT REPORT ON

STUDY OF CONSUMER ORIENTED SALES PROMOTION IN
FMCG SECTOR

Patanjali Ayurveda Kendra Pvt Ltd
SUBMITTE...
DECLARATION

I am TUSHAR N. CHOLE a student of MGM Institute of Management in Dr.Babasaheb
Ambedkar Marathwada University,...
ACKNOWLEDGEMENT
It is my pleasure to present this report. Working on this project was an good experience that will
have gr...
INDEX
Sr.
No.
1

2.1

2.2

3

4

5
6

Page No.

Particular
PART-I (Introduction)
-Preface
-Executive Summary
-Introduction...
[PART-I Introduction ]

PREFACE
In this age of globalization hyper competition has become a regular feature. Todaythe
mark...
Executive Summary
As a part of our study curriculum it is necessary to conduct a grand project. It provides us an
opportun...
IntroductionConcept

“Study of consumer oriented sales promotion in FMCG sector”
The importance of consumer sales promotio...
Promotion is one of the important elements of marketing mix. There are so many elements of
promotion such as …
o Advertisi...
Consumer Oriented Sales Promotion
Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize is g...
Tools of Consumer Oriented Sales Promotion:
There are so many tools or technique available to the marketers for achieving ...
Freebies are a popular form of modern marketing and are some of the best things about the
internet. The definition of free...
Factors Influencing Consumer Oriented sales promotion:
Mainly four factors should be taken into account while determining ...
o Percentage of Sales
o Fixed funds available for sales promotion
o Following the competition, and
o Budgeting by objectiv...
There are three types of sales promotion strategies:
o

A push strategy

o

A pull strategy or

o

A combination of the tw...
Temporary price reductions (price off) substantially increase sales:

There is ample evidence to show that promotions lead...
From this project it is found that promotion not only increases sales of main product but it also
lead to increase in sale...
Objectives of the Project study

1. To study consumer preferences with respect to sales promotion in FMCG sector.
2. To ex...
[ PART-II Profile of the Company ]

INDUSTRY PROFILE

History
The Indian economy is changing in profound ways by the onwar...
Household Care
The detergents segment is growing at an annual growth rate of 10 to 11 per cent during the past
five years....
Here also, HUL is the leader with market share of ~53 per cent; Godrej occupies second position
with market share of ~10 p...
Growth

The Indian FMCG sector is the fourth largest sector the economy with a total
market size of Rs. 167,100crs.
The ma...
Growth Drivers

© MGM-IOM/MBA/MARKETING

III SEM 2013-2014

In-Plant ProjectPage-23
International and National scenario

The Indian FMCG sector is the fourth largest sector in the economy with an estimated
...
A distinct feature of the FMCG industry is the presence of international players through their
subsidiaries (HLL, P&G, Nes...
Competitor’s information
Top FMCG Companies in India - 2012

Sr. No.
1
2
3
4
5
6
7
8
9
10

Companies Name
ITC Ltd.
Hindust...
Company profile of Patanjali Ayurveda Kendra Pvt
Ltd

BACKGROUND & INCEPTION OF THE COMPANY:
Patanjali Ayurveda Kendra Pvt...
Company Profile
Estd. Date

27 September2007

Company

Patanjali Ayurveda Kendra Pvt.Ltd.

Promoters

Mr. BabukajiShrestha...
Beneficiaries Details
Name
Address
A/C Number
Govt. Register

Patanjali Ayurveda Kendra Pvt.Ltd
Swoyambhu, Kathmandu
47000...
Product profile

SR.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

Product name
AAROGYA APPLE...
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68...
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
1...
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
14...
151
152
153
154

UJJWAL DETERGENT POWDER-1KG-PAL
UJJWAL DETERGENT POWDER-2KG-PAL
UJJWAL DETERGENT POWDER-250GM-PAL
UJJWAL ...
 World class central laboratory for in-house testing

 Over-head Water Tanks

 Sewage Treatment Plant-Capacity 60 MT/da...
 ETP Capacity 550 MT/day
 15 T + 6 T steam Boilers available

 Weigh-bridge (Capacity 60 MT)

 Multi commodity automat...
 Inhouse packaging units

 Internally connected metalled roads through all units/sheds

 Excellent drainage system
 Tr...
Board of Directors
Name: Mr. BabukajiShrestha
Chairman
Phone: +977-1-4674666 (Ext. 113)
Email: patanjali@wlink.com.np

Nam...
[ PART-IIIResearch Methodology ]

Research Methodology

Research Objectives:

1. To study consumer preferences with respec...
Research Design
Research design selected for this project is Descriptive.
Data collection Method:
(a) Primary Data Collect...
DATA ANALYSIS

Q 1] Which category PTANJALI PRODUCTS do you use?

Medicine
Food Products
Super foods
Ayurvedic Body Care
A...
Q 2] How often do you use PTANJALI PRODUCT?

Daily
once/week or more
2 to 3 times a month
once/month
every 2-3 months

800...
Q 3] Overall, how satisfied are you with PTANJALI PRODUCT ?

Very Unsatisfied
Unsatisfied
Somewhat Satisfied
Very Satisfie...
Q 4] How likely are you to use/purchase PTANJALI PRODUCT again?

969
26
5

Definitely
Probably
Might or might not
Probably...
Q 5] Would you recommend PTANJALI PRODUCT to others?

974
22
4

Definitely
Probably
Might or might not
Probably not
Defini...
Q 6] Price of the PTANJALI PRODUCT is suitable to the quality of product company
provide?

1000

Less price high quality
h...
LIST OF DAILY WORK

No.
1

Date
17-05-13

2

18-05-13

3

19-05-13

4

20-05-13

5

21-05-13

6

22-05-13

7
8

23-05-13
2...
13
14

29-05-13
30-05-13

15

31-05-13

16
17

01-06-13
02-06-13

18
19
20
21

03-06-13
04-06-13
05-06-13
06-06-13

22

07...
34
35

19-06-13
20-06-13

36

21-06-13

37

22-06-13

38

23-06-13

39
40

24-06-13
25-06-13

41
42
43

26-06-13
27-06-13
...
[ PART-IV ]

Findings
Sales Promotion, a short-term inducement, offered to a consumer or trade has gained momentum
as a pr...
Suggestion
Patanjali Product has less price and high quality so more and more consumer buy Patanjali‟s
products. Demand is...
LEARNING EXPERIENCE

 Image1-Me, working in the main office.
 Image 2- Me, Tushar&siddhesh (fellow student) Visiting Pat...
SWOT Analysis

Strengths:
• Low operational costs
• Presence of established distribution networks in both urban and rural ...
Bibliography

BOOKS
Philip Kotler, “Marketing Management”, 11th edition, Pearson
education Asia Publication.
C.R.Kothari, ...
Annexure
Questionnaire

Patanjali Ayurved Ltd.
CUSTOMER SURVEY FORM
Dear Customer,
As the Marketing Executive of PATANJALI...
4] How likely are you to use/purchase PTANJALI PRODUCT again?
Definitely
Probably
Might or might not
Probably not
Definite...
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Study of consumer oriented sales promotion in FMCG sector tushar chole

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To study consumer preferences with respect to sales promotion in FMCG sector.

To examine tradeoffs, relative importance of different attributes while responding to a sales promotion offer.

To study the effect of sales promotions in FMCG sector

To study consumer behavior in purchase of Patanjali’s Products.

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Study of consumer oriented sales promotion in FMCG sector tushar chole

  1. 1. STUDY OF CONSUMER ORIENTED SALES PROMOTION IN FMCG SECTOR Tushar N. Chole MGM’s Institute of Management, Aurangabad, Maharashtra. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-1
  2. 2. A PROJECT REPORT ON STUDY OF CONSUMER ORIENTED SALES PROMOTION IN FMCG SECTOR Patanjali Ayurveda Kendra Pvt Ltd SUBMITTED TO DR.BABASAHEB AMBEDKAR MARATHWADA UNIVERSITY IN PART OF TWO YEARS FULL TIME COURSE OF MASTERS IN BUSINESS ADMINISTRATION (MBA) SUBMITTED BY TUSHAR N. CHOLE (MARKETING) MR13406 UNDER THE GUIDANCE OF DR.GOUTAM G. SAHA MGM‟S INSTITUTE OF MANAGEMENT AURANGABAD- 431001 2012-2014 © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-2
  3. 3. DECLARATION I am TUSHAR N. CHOLE a student of MGM Institute of Management in Dr.Babasaheb Ambedkar Marathwada University, Aurangabad. Pursuing Master in Business administration (MBA). I hereby declare that the project work allowed to in “ Study of consumer oriented sales promotion in FMCG sector ” of Patanjali Ayurveda Kendra Pvt Ltd. is a real work done by me and the content with this has not been submitted for the award of other degree or diploma in the University. Place: Aurangabad, Maharashtra © MGM-IOM/MBA/MARKETING TUSHAR NARAYAN CHOLE III SEM 2013-2014 In-Plant ProjectPage-3
  4. 4. ACKNOWLEDGEMENT It is my pleasure to present this report. Working on this project was an good experience that will have great impact on my career. It was really useful period of 45 days working with the Patanjali Ayurveda Kendra Pvt Ltd. I like to express my sincere thanks to Dr. Pardeep Kumar Director , Mr.Ashish Gadekar & Mr.Anil Palve of them support. I like to thanks my project guide Dr.Goutam Saha for regular follow-up and valuable suggestions provided throughout. He has always been a source of inspiration and guidance. I also thank all the respondents who have given their valuable time, views and valid information for this project. I would like to thanks Mr. Milind S. Shukla (Head of south Province of Patanjali Ayurveda Kendra Pvt Ltd.), for providing me this chance to work on project in this department. With this I wish to thanks the entire employees of Patanjali Ayurveda Kendra Pvt Ltd. & special thanks to Mr. Satish Solunke (Marketing Executive), Mr. S. Shinde (Marketing Executive), Mr.Tekawade (Marketing Executive) who helped me to complete my training at Patanjali Ayurveda Kendra Pvt Ltd. Aurangabad, Maharashtra. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-4
  5. 5. INDEX Sr. No. 1 2.1 2.2 3 4 5 6 Page No. Particular PART-I (Introduction) -Preface -Executive Summary -Introduction to the concept -Objectives of the study 2-15 PART-II (Profile of the Company) -Industry profile(maximum 3 pages) -History -Growth -International and National scenario -Some prominent companies in the industry, their performance 16-23 -Company profile(maximum 8 pages) -Background and inception of the company -Nature of the business carried -Vision, Mission and Quality Policy -Product/Services Profile -Area of Operation – Global/National/Regional -Ownership Pattern -Competitors Information -Infrastructural facilities -Financial condition -Achievement Award if any PART-III(Research Methodology) -Research Design -Data collection Method -DATA ANALYSIS -Daily report PART-IV -Summary of findings -Suggestions -Learning Experience -Bibliography -SWOT Analysis Annexure Questionnaires © MGM-IOM/MBA/MARKETING III SEM 2013-2014 24-35 36-46 47-50 51 52 In-Plant ProjectPage-5
  6. 6. [PART-I Introduction ] PREFACE In this age of globalization hyper competition has become a regular feature. Todaythe marketsare no less then battlegrounds and one has to strive very hard for survival and growth. Due to very rapid industrialization all over the world the demand for the managerial personnel and the administrative personnel has increased. The perfect study of Management involves both the theoretical as well as practical aspects. To survive in this highly competitive market “Practical Knowledge” is as relevant as the Theoretical. The significance of MBA Degree is that the Theoretical aspects, which a student learns throughout the year in the class sessions, can be practically applied through different projects, which one undertakes. Keeping in tune with this doctrine, we have tried to apply theoretical aspects throughout the project, which we learned under the course of management. In this project more emphasize given to the various tools of sales promotion and its impact on consumers buying decisions. Actually in recent trend to some extent this technique also become victim of clutter, even though it can be eliminated by generating innovative and more attractive tools to lure the customers. Now a day most of the FMCG companies considering sales promotion as an important part of their marketing strategy. From the analysis of survey it becomes clear that consumers do response to the sales promotion campaign, but there are customers who strongly prefer to stick to brand name. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-6
  7. 7. Executive Summary As a part of our study curriculum it is necessary to conduct a grand project. It provides us an opportunity to understand the particular topic in depth and which leads to through to that topic. My topic for the grand project is titled as “STUDY OF CONSUMER ORIENTED SALES PROMOTION IN FMCG SECTOR”in which emphasis given to the effect of sales promotion on buying habits of consumers. To start with we will give brief information regarding FMCG sector then moving to the main topic we will explain what is topic is all about. Promotion is one of the pillars of marketing mix and same way sales promotion is also one of the elements of promotion. With respect to consumer oriented sales promotion there are certain theories narrated as operant conditioning and projective theory. Based on secondary source certain theoretical aspects are also included as a part of study. Then after concentration is given to the primary research. It includes the analysis and results of survey which was focuses on consumer‟s behavior towards sales promotion campaign. The survey was conducted with the help of structured questionnaire. At last conclusion of report, findings and suggestions was given based on study of secondary source as well as primary research. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-7
  8. 8. IntroductionConcept “Study of consumer oriented sales promotion in FMCG sector” The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumer‟s perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as hedonic benefits such as entertainment, exploration and self-expression. Broadly speaking most of the companies using Marketing Mix which includes… o Price o Place (Channel of Distribution) o Product o Promotion These are the four basic pillar of marketing mix. Most of the marketing strategies are built on the basis of these criteria. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-8
  9. 9. Promotion is one of the important elements of marketing mix. There are so many elements of promotion such as … o Advertising o Direct Marketing o Public Relations o Sales Promotion Traditionally, sales Promotions have been used by marketer to increase sales in the short term. However, in the last few decades this communication tool has evolved and now is considered from a strategic point of view. For this reason, it is necessary to realize new studies in this area and study how consumers evaluate sales promotions. Sales promotions have grown in both importance and frequency over the past few decades. Although an accurate estimate for total sales promotions expenditures does not exist, we can be sure that the trend is up. Sales promotion serves three essential roles: It informs, persuades and reminds prospective customers about a company and its products. Even the most useful product or brand will be a failure if no one knows that it is available. As we know, channels of distribution take more time in creating awareness because a product has to pass through many hands between a producer and consumers. Therefore, a producer has to inform channel members as well as ultimate consumers about the attributes and availability of his products. The second purpose of promotion is persuasion. The cut throat competition among different products puts tremendous pressure on their manufacturers and they are compelled to undertake sales promotion activities. The third purpose of promotion is reminding consumers about products availability and its potential to satisfy their needs. From these elements Sales Promotion is the element which is in the focus of this project. Further Sales Promotion is quite broad term it includes … 1. Consumer Oriented Sales Promotion 2. Trade Oriented Sales Promotion © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-9
  10. 10. Consumer Oriented Sales Promotion Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize is given to motivate consumer to increase sales. Consumer Oriented Sales Promotion includes Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Pack‟s, Price-off, Event marketing etc. Definition: For the purpose of this study, following definitions of sales promotion were kept in mind. Kotler defines sales promotion as: “Sales promotion consists of a diverse collection of incentive tools, mostly short-term designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade.” Roger Strang has given a more simplistic definition i.e. “sales promotions are short-term incentives to encourage purchase or sales of a product or service.” Hence, any forms of incentives (price cut or value added nature) offered for short period either to trade or consumers are considered as sales promotion activities. Marketer’s uses consumer oriented sales promotion tools for the following reasons: To increase short term sales To induce trial To reduce inventory To establish a brand name To make cross selling To cope up with competition To avoid advertising clutter © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-10
  11. 11. Tools of Consumer Oriented Sales Promotion: There are so many tools or technique available to the marketers for achieving objective of sales promotion. These tools should be used considering all other factors affecting such as cost, time, competitors, availability of goods etc. These tools are as under… 1. Coupons 2. Price-Off 3. Freebies 4. Scratch Cards 5. Lucky Draws 6. Bundling Offer 7. Extra Quantity Let‟s have look at each tool… 1. Coupons: Coupon is the oldest and most widely used way of sales promotion. Coupons have been used since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a promotion tool because data shows that market for packaged goods increased from 16 billion in 1968 to 310 billion in 1994. To boost up the sales not only manufacturer but retailers personally can also used. A coupon leads to price reductions so as to encourage price sensitive customers. Non users can try a product which may leads to regular sales. 2. Price-off: A price-off is simply a reduction in the price of the product to increase sales and is very often used when introduction a new product. A reduction in price always increases sales but the use of this technique should be carefully considered in the current market situation. Price-off is the most preferred sales promotion technique because consumers response very positively to this scheme. Not only that but it also cause large increase in sales volume. Price-off reductions are typically offered tight on the package through specially marked price packs. E.g. Krack Jack offers 30% Price-off. 3. Freebies © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-11
  12. 12. Freebies are a popular form of modern marketing and are some of the best things about the internet. The definition of freebies is products or services given away for free at no cost to the consumer. Well that‟s the definition we came up with. I am a bargain freebie shopper, pretty much going for any free product and informing everyone about it. At different times, big and small companies often give away prizes and money which is too good to be true. Often it‟s in the pursuit of more customers or a larger fan base and it often works. 4. Scratch Cards A scratch card (also called a scratch off, scratch ticket, scratcher, scratchie, scratch-it, scratch game, scratch-and-win or instant game) is a small token, usually made of cardboard, where one or more areas contain concealed information: they are covered by a substance that cannot be seen through, but can be scratched off. 5. Bundling Offers Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), in the cable television industry (for example, basic cable in the United States generally offers many channels at one price), and in the fast food industry in which multiple items are combined into a complete meal. A bundle of products is sometimes referred to as a package deal or a compilation or an anthology. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-12
  13. 13. Factors Influencing Consumer Oriented sales promotion: Mainly four factors should be taken into account while determining the sales promotion program. > Target market > Nature of product > Stage of product life cycle > Budget available for promotion 1. Target Market: While doing sales promotion, marketer must know who their target market is; otherwise there is no use of all effort because it leads to nowhere. A target market can be in any of the stages of buying hierarchy i.e. awareness, knowledge, liking, preferences, conviction and purchase. Each stage defines a possible goal of promotion. 2. Nature of the product: There are various product attributes which influence sales promotional strategy. When the unit price is low the manufacturer as well as the customer has low risk but he can get the benefit of mass marketing. Therefore, mass marketing requires mass sales promotion schemes. Sales promotion scheme differ for products like its durability, perishable goods etc. 3. Stage of product Life Cycle: Sales promotion strategies are influenced by the life cycle of a product. When a new product introduced, prospective buyers must be informed about its existence and its benefits and middlemen must be convinced to stock it. Later, if a product becomes successful, competition intensifies and more emphasis is placed on sales promotion to increase its sales. 4. Budget Available for Promotion: The funds available for promotion are the ultimate determinant of the promotional programme. A business with ample funds can make more effective use of sales promotion programme than a firm with limited financial resources. The budget for sales promotion can be prepared by the following methods… © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-13
  14. 14. o Percentage of Sales o Fixed funds available for sales promotion o Following the competition, and o Budgeting by objective. Sales Promotion Strategy Sales are the lifeblood of a business, without sales there would be no business in the first place; therefore it is very important that if a business wants to succeed, it should have a sales promotion strategy in mind. The primary objective of a sales promotion is to improve a company‟s sales by predicting and modifying your target customers purchasing behavior and patterns. Sales promotion is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. There are a variety of sales promotional strategies that a business can use to increase their sales, however it is important that we first understand what a sales promotion strategy actually is and why it is so important. A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The importance of a sales promotion strategy cannot be underestimated. This is because a sales promotion strategy is important to a business boosting its sales. When developing a sales promotion strategy for your business, it is important that you keep the following points in mind. Consumer attitudes and buying patterns Your brand strategy Your competitive strategy Your advertising strategy Other external factors that can influence products availability and pricing. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-14
  15. 15. There are three types of sales promotion strategies: o A push strategy o A pull strategy or o A combination of the two A Push Strategy: A „push‟ sales promotion strategy involves „pushing‟ distributors and retailers to sell your products and services to the consumer by offering various kinds of promotions and personal selling efforts. What happens here is that a company promotes their product/services to a reseller who in turn promotes it to another reseller or to the consumer. The basic objective of this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give it shelf space, promote it by advertising, and ultimately „push‟ it forward to the consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials, contests, discounts, and specialty advertising items. A Pull Strategy: A „pull‟ sales promotion strategy focuses more on the consumer instead of the reseller or distributor. This strategy involves getting the consumer to „pull‟ or purchase the product/services directly from the company itself. This strategy targets its marketing efforts directly on the consumers with the hope that it will stimulate interest and demand for the product. This pull strategy is often used when distributors are reluctant to carry or distribute a product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase displays. A Combination of Two Strategies: A „combination‟ sales promotion strategy is just that; it is a combination of a push and a pull strategy. It focuses both on the distributor as well as the consumers, targeting both parties directly. It offers consumer incentives side by side with dealer discounts. The Short term Impact of Promotions: Let‟s have look at the impact of promotions on purchase behavior during the promotional period i.e. the week or the month when the promotion was being run. The majority of the empirical studies have focused on the impact of promotions in the short term. The key findings across the studies are discussed below. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-15
  16. 16. Temporary price reductions (price off) substantially increase sales: There is ample evidence to show that promotions lead to dramatic increases in sales of promoted brand in the short term. Studies have consistently reported high sales effects and high price elasticity of brands which are on promotion. The economic rationale for the promotional response is clear – temporary price cuts increase the value of the product to the consumer and it leads to immediate action. Sales boost can be quantified on the basis of brand switching, primary demand expansion and consumer stockpiling during a promotion. Sales Promotion leads to brand substitution with the product category: The sales „bump‟ during the promotional period into sales due to brand switching, purchase time acceleration and stockpiling. Studies on brand switching have shown that brand switching effects within a category are asymmetric such that promotions on higher quality brands impacts weaker brands disproportionately. During a promotion, higher quality brands induce a large number of consumers to switch to them as compared to lower quality brands. One explanation advanced for this finding by researchers is that large share brands have higher brand equity and attract switchers more than low share brands. Sales Promotion leads to purchase acceleration/stockpiling effects: In response to a promotion, consumers may buy more quantity of the product category or buy at an earlier time than usual (purchase acceleration effect). If consumers buy extra quantity during a promotion or earlier than normal, then they are not in the market to buy products once the promotion is over. Thus purchase acceleration is demonstrated through A lengthening of inter purchase times after a promotion. Purchase acceleration was more likely to be exhibited in increased purchase quantity than in shortened inter purchase times. Results showed that consumers mostly made up for the large quantity purchased by waiting longer until purchasing again. Results indicated that heavy users tended to accelerate purchases more than light users. There was negligible difference in the acceleration propensities of high versus low income groups. Sales Promotion leads to primary demand expansion for a category: While it was traditionally assumed that consumption rates remain fixed during and after a promotion, but from this project I came to know that promotions also have a primary demand expansion effect. When a primary demand expansion occurs, promotion induced increase in purchase quantities does not significantly extend the time till the next purchase in the category occurs, thus indicating that there has been an increase in consumption promotions induced consumers to buy more and consume faster. It is found that promotion induced inventory temporarily increased consumption rates within the category e.g. in categories such as bacon, salted snacks, soft drinks and yogurt exhibited primary demand expansions as a result of promotion while bathroom tissue, coffee, detergent and paper towels exhibited stockpiling only. Sales Promotions affect sales in complementary and competitive categories: © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-16
  17. 17. From this project it is found that promotion not only increases sales of main product but it also lead to increase in sales of complementary categories. Found strong cross relationships between products of the promoted product category indicating brand substitution behavior. They stated that retail price promotions work as a form of implicit price bundling whereby the consumer surplus is transferred from the promoted item to non promoted items. Also found that retail price promotions create significant complementary and substitution effects within the store. The Long term Impact of Promotions: Strategies are builds to reap the benefits for longer period of time; same is true in sales promotion strategies. Let us see impact of promotions effort and study the impact over a longer time period e.g. 4-6 months or even a few years after a sales promotion campaign. The result showed that consumer promotions for leading brands of established packaged products had no after-effects on the brand‟s sales or repeat buying loyalty. The extra sales of a brand while promoted came virtually all from the brand‟s existing long-term customer base for which the experience of buying the promoted brand was nothing new. It is found that although the short term effects of promotions are strong; these promotions rarely exhibit long term effects. It is observed that each sales component generally lacked a permanent effect and the effect of promotion was short lived and increase in promotions affected consumers‟ stockpiling decisions in the long run. They found that the combined short and longterm elasticity of promotions was zero. The stockpiling induced by a promotion was essentially offset by reduced demand in the long term. Thus increased sales were more a result of sales borrowed from the future than increased consumption © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-17
  18. 18. Objectives of the Project study 1. To study consumer preferences with respect to sales promotion in FMCG sector. 2. To examine tradeoffs, relative importance of different attributes while responding to a sales promotion offer. 3. To study the effect of sales promotions in FMCG sector . 4. To study consumer behavior in purchase of Patanjali‟s Products. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-18
  19. 19. [ PART-II Profile of the Company ] INDUSTRY PROFILE History The Indian economy is changing in profound ways by the onward march of its “consumers”. Consumer growth has, of course, always been a central engine of economic growth, but what is significant about the past decade is the acceleration in the pace of change, which in one way reflects greatly on the growth, character and role of FMCG companies. Having stated this, even the most prestigious FMCG firms are always under pressure when it comes to retaining position and growing in the ever competitive scenario. This is a big challenge, and it is rapidly becoming a strategic imperative. In order to recognize the contribution of the FMCG sector to the socio-economic growth of India, to analyze opportunities and challenges over the coming years, and to develop recommendations to its stake holders (including FMCG companies, retailers and the Government), FICCI‟s FMCG Committee and Technopak joined hands to produce this first of its kind research report on the FMCG sector. This research report dwells into the current state and future outlook of FMCG industry, along with deliberating on issues, challenges and opportunities facing the FMCG industry. The report suggests practical strategies and recommendations for policy makers towards achieving competitive advantage in an increasing competitive scenario MAJOR SEGMENTS OF THE FMCG INDUSTRY: © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-19
  20. 20. Household Care The detergents segment is growing at an annual growth rate of 10 to 11 per cent during the past five years. The local and unorganized players account for a major share of the total volume of the detergent market. The preference is given to detergents in urban area compared to bars. Household care segment is featured by intense competition and high level of penetration. With rapid urbanization, emergence of small pack size and sachets, the demand for the household care products is booming. In washing powder segment, HUL is the leader with ~38 per cent of market share. Other major players are Nirma, Henkel and Proctor & Gamble. Personal Care Personal care segment includes personal wash products, hair care products, oral care products, cosmetics etc. The Indian skin care and cosmetics market is valued at $274 million and is dominated by HUL, Colgate Palmolive, Gillette India and Godrej. The coconut oil market accounts for 72 per cent share in the hair oil market. The hair care market can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair gels. In the branded coconut hair oil market, Marico (with Parachute) and Dabur are the leading players. Sachet makes up to 40 per cent of the total shampoo sale. Again the market is dominated by HUL with around ~47 per cent market share; P&G occupies second position with market share of around ~23 per cent. Personal wash can be further segregated into three segments namely Premium, Economy and Popular. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-20
  21. 21. Here also, HUL is the leader with market share of ~53 per cent; Godrej occupies second position with market share of ~10 per cent. Swelling disposable incomes of the Indian consumers, growth in rural demand and upgrading to the premium products are the key drivers for future demand growth in major FMCG categories. Theskin caremarketis ataprimarystageinIndia. Withthechangein lifestyles,increasein disposable incomes, greater productchoiceandavailability, peopleare becomingmorealertaboutpersonal grooming. Themajor players inthissegmentareHindustanUnileverwitha marketshareof ~54percent,followedbyCavinKarewithamarket share of~12percent andGodrejwith amarketshareof~3percent. Theoralcare marketcanbesegmentedintotoothpaste60percent;toothpowder-23per cent;toothbrushes- 17 percent.Thissegmentis dominatedbyColgate-Palmolivewith marketshare of~49percent,whileHULoccupies secondpositionwithmarketshareof~30percent.Intoothpowdersmarket,ColgateandDaburarethemajo r players. FoodandBeverages Thissegmentcomprises of thefoodprocessingindustry,health beverageindustry,breadandbiscuits,chocolates& confectionery, MineralWaterandicecreams.Thethreelargestconsumedcategories ofpackagedfoodsarepacked tea,biscuitsandsoftdrinks.Indianhotbeverage marketisateadominant market.Themajorshare oftea marketis dominatedbyunorganizedplayers.LeadingbrandedteaplayersareHULandTataTea.Mjaorplayersinf ood segment are HUL,ITC,Godrej,NestleandAmul. INDIAN CONSUMERS SPENDING PATTERN © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-21
  22. 22. Growth The Indian FMCG sector is the fourth largest sector the economy with a total market size of Rs. 167,100crs. The market is estimated to grow to US$ 100 billion by 2025, according to market research firm Nielsen. In the last decade the FMCG sector has grown at an average of 11% a year; in the last five years, annual growth accelerated to 17%. FMCGs are slowly and gradually positioning and deeply penetrating in the fast growing rural market. The Rural mindset is open to consumption of newer, more contemporary food categories and as a result, drive consistent growth. FMCG industry to be Rs.40006000 billion industry by 2020. Indian rural market currently worth US$ 9 bn is expected to become a US$ 100 bn opportunity by 2025. By 2025, total consumption is likely to quadruple making India the 5th largest consumer market. Organized retail is expected to grow by 14-18% by 2015 thereby boosting FMCG Rural India accounts for more than 700 Million consumers or 70% of the Indian population and accounts for 40% of the total FMCG market. The Rural market is a large market space with very low organized player penetration. Across the globe, the Indian rural market is probably the single largest “unit” of opportunity Also with changing lifestyle and increasing consumer demand, the Indian FMCG market is expected to cross $80 billion by 2026 in towns with population of up to 10 lakh The sector has a tremendous opportunity for growth in India, with the growing population, the rising incomes, education and urbanization, the advent of modern retail, and a consumption driven society According to Nielsen, FMCG growth was 10.7% in the rural market and 10.8% in the urban market during the quarter ended December 2011; for the quarter ended March 2012, while growth in the urban market improved to 16.5%, it rose even higher, to 17.2%, in the rural market. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-22
  23. 23. Growth Drivers © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-23
  24. 24. International and National scenario The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of Rs.1, 300 billion. The sector has shown an average annual growth of about 11% per annum over the last decade. Unlike the developed markets, which are prominently dominated by few large players, India‟s FMCG market is highly fragmented and a considerable part of the market comprises of unorganized players selling unbranded and unpackaged products. There are approximately 12-13 million retail stores in India, out of which 9 million are FMCG kirana stores. India FMCG sectors‟ significant characteristics can be listed as strong MNC presence, well established distribution network, intense competition between the organized and unorganized players and low operational cost. Easy availability of important raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. Products which have a swift turnover and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG items are those which generally get replaced within a year. Examples of FMCG commonly include a wide range of repeatedly purchased consumer products such as toiletries, soap, cosmetics, oral care products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products etc. Penetration level and per capita consumption in many product categories is very low compared to world average standards representing the unexploited market potential. Mushrooming Indian population, particularly the middle class and the rural segments, presents the huge untapped opportunity to FMCG players. Growth is also likely to come from consumer 'upgrading' in the matured product categories like processed and packaged food, mouth wash etc. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-24
  25. 25. A distinct feature of the FMCG industry is the presence of international players through their subsidiaries (HLL, P&G, Nestle), which ensures innovative product launches in the market from their parent's portfolio. Our country has a varied agro-climatic condition which enables to offer extended raw material base suitable for many FMCG sub sections like food processing industries etc. India is the one of the major producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits & vegetables. Similarly, India has an abundant supply of caustic soda and soda ash, the chief raw materials required in the production of soaps and detergents, which enables the household section of the industry to excel and grow. The accessibility of these raw materials gives India the locational advantage. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-25
  26. 26. Competitor’s information Top FMCG Companies in India - 2012 Sr. No. 1 2 3 4 5 6 7 8 9 10 Companies Name ITC Ltd. Hindustan Unilever Nestle India Dabur India Godrej Consumer Products Proctor and Gamble India Colgate-Palmolive GlaxoSmithKline Consumer Healthcare Marico Emami © MGM-IOM/MBA/MARKETING III SEM 2013-2014 Market Cap (Rs. Cr.) 151,078. 67,858. 39,819. 18,632. 13,335. 12,838. 12,764. 9,842. 9,078. 6,836. In-Plant ProjectPage-26
  27. 27. Company profile of Patanjali Ayurveda Kendra Pvt Ltd BACKGROUND & INCEPTION OF THE COMPANY: Patanjali Ayurveda Kendra Pvt Ltd was officially inaugurated by ParamPujyaYogRisi Swami Ramdevji Maharaj& Ayurveda ShiromaniRishikalpaAcharya Shree BalkrishnajiMaharaj on 27 September 2007 (2064/6/10 B.S.) and started its operation as an Patanjali Ayurveda Kendra Pvt Ltd at swoyambhu, Katmandu, Nepal with the ultimate aim of providing holistic, natural and effective Ayurveda treatment Patanjali Ayurveda Kendra Pvt Ltd. has registered in 2006 to company Registar, Government of Nepal. The company has authorized to operate sales of Ayurvedic Medicines and publication. It was established with the main purpose of curing and preventing common ailments by Ayurveda and importing all kind of Ayurvedic medicines, audio-visual materials and literatures of Divya Pharmacy, DivyaYogSadhana and DivyaPrakashan, Haridwar, India to distribute in Nepal. The Kendra was committed in taking guidance of all the advanced methods of effective treatment procedures of Ayurveda. The Center was equipped with Ayurvedic Doctors, Pathology Department, Pharmacy, Counseling Department and many more facilities. The Ayurvedic doctors were trained from Haridwar and in-house for a minimum period of 2-3 months before being put into professional practice. Patanjali Ayurveda Kendra had made achievements in treating thousands suffering from diseases like osteoarthritis, rheumatoid arthritis, osteoporosis, low back ache, cervical spondylsis, psoriasis, allergic respiratory disorders, multiple sclerosis, age related mental stress and rheumatic diseases. Ayurveda is a holistic healing science. Going beyond just curing an ailment, Ayurveda aims at total well being of the individual – his mind, body and spirit. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-27
  28. 28. Company Profile Estd. Date 27 September2007 Company Patanjali Ayurveda Kendra Pvt.Ltd. Promoters Mr. BabukajiShrestha, President Mr. RajuShrestha, Managing Director Mr. PawmanSubedi, Director Type of Business Sole Distributor of Ayurvedic Product of Divya Pharmacy , DivyaYogSadhana, Divya Prakashan& Patanjali Ayurveda Ltd., Haridwar, India Head Office Patanjali Ayurveda Kendra Pvt.Ltd Swotantramargh,Swoyambhu Chakrapath, Kathmandu,Nepal Tel: +977-1-4674666 / 4674777 Fax No.: +977-1-4033557 Email: patanjali@wlink.com.np / Patanjali@mail.com.np www.patanjaliayurveda.com Number of employees Kathmandu Office Butawal Office Suppliers Bank Details Name Address Swift code 25 Nos. 7 Nos. Divya Pharmacy , Haridwar,India DivyaYogSadhana, Haridwar,India DivyaPrakashan, Haridwar, India Patanjali Ayurveda Ltd., Haridwar,India Bank of Katmandu Head Office / Thamel Branch BOKLNPKA © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-28
  29. 29. Beneficiaries Details Name Address A/C Number Govt. Register Patanjali Ayurveda Kendra Pvt.Ltd Swoyambhu, Kathmandu 470000061438 / 060100061438 Company Registrar Office Tripureshower on 2063.08.15 BS. Reg No. 42691. Tax office on 2063.08.25 BS. PAN/VAT No. 302445329. Department Of Drug Administration on 2063.10.19 BS. Reg No. 17243. Department Of Ayurvedic Administration on 2065.01.30 BS. Reg.No. 1789 Mission: The basic mission of the Company is “Quality Consumer Products at affordable prices” and in the process delivering long-term value to all stakeholders in the Company. Vision: The Company envisions being a dominant global player in the Ayurvedic Product category and the leading Branded Player in the Ayurvedic Product segment in the IndianMarket and thus occupying a place of pride in the Indian Ayurvedic Market. This shall be achieved through Customer Centric Processes, People Development and Operational Excellence © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-29
  30. 30. Product profile SR.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Product name AAROGYA APPLE JUICE -1000 ML-PAL AAROGYA APPLE JUICE -200ML-PAL AAROGYA ATTA (WHEAT)-10KG-PAL AAROGYA ATTA (WHEAT)-2KG-PAL AAROGYA ATTA (WHEAT)-5KG-PAL AAROGYA ATTA NAVRATNA -2KG-PAL AAROGYA ATTA NAVRATNA -5KG-PAL AAROGYA BASMATI RICE-5KG-PAL AAROGYA BISCUITS-10GM AAROGYA DALIA (PUSHTAHAR)-500GM-PAL AAROGYA DALIA (WHEAT)-500GM-PAL AGARBATTI-ALAKHNANDA -PAL AGARBATTI-AMBER-PAL AGARBATTI-JASMINE-PAL AGARBATTI-KONARK-PAL AGARBATTI-LAVENDER-PAL AGARBATTI-MEDITATION-PAL AGARBATTI-OUDH-PAL AGARBATTI-ROSE-PAL AGARBATTI-SANDAL-PAL AGARBATTI-UTSAV-PAL AGARBATTI-VANGANDHA-PAL AGARBATTI-WHITE FLOWER-PAL AGARBATTI-YAJNA SUGANDHAM-PAL ALOE VERA GEL-150ML-PAL ALOE VERA JUICE (FIBER & O/F)-1LT-PAL ALOE VERA JUICE (FIBER)-1LT-PAL © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-30
  31. 31. 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 ALOE VERA JUICE (PLAIN)-1LT-PAL ALOE VERA JUICE .(ORANGE)-1000 ML-PAL AMLA AMRIT-65ML-PAL AMLA CANDY -500GM-PAL AMLA CHATPATA -500GM-PAL AMLA JUICE-1000ML-PAL AMLA MURRABA-1000GM-PAL AMLA PICKLE-1KG-PAL AMRIT RASAYAN -1KG-PAL AMRIT RASAYAN -500GM-PAL BADAM PAK -500GM-PAL BEL CANDY -500GM-PAL BEL MURRABA -1000GM-PAL CRACK HEAL CREAM-50GM-PAL DANT KANTI PASTE (JUNIOR)-100GM-PAL DRISHTI EYE DROP-20ML-PAL DANT KANTI PASTE-40GM-PAL DANT KANTI PASTE-100GM-PAL DANT KANTI PASTE-200GM-PAL GAJAR MURRABA-1KG-PAL HARAD MURRABA -1000GM-PAL HERBAL GULAL GREEN-100GM-PNCPL HERBAL GULAL ORANGE-100GM-PNCPL HERBAL GULAL PINK-100GM-PNCPL HERBAL GULAL YELLOW-100GM-PNCPL HERBAL HAND WASH -250ML-PAL HERBAL HAND WASH REFILL PACK-200ML-PAL HERBAL SHUDDHI FLOOR CLEANER-1LT-PGN HERBAL MEHANDI-100GM-PAL JALJEERA-200GM-PAL KANTI ALOE VERA SOAP-75GM-PAL KANTI NEEM SOAP -75GM-PAL KANTI PANCHGVYA SOAP-75GM-PAL KESH KANTI HAIR CLEANER (POUCH)-8ML-PAL KESH KANTI HAIR CLEANER-100ML-PAL KESH KANTI HAIR CLEANER-200ML-PAL KESH KANTI MILK PROTEIN -200ML-PAL KESH KANTI REETHA HAIR CLEANER-200ML-PAL KESH KANTI ANTI-DANDRUFF HAIR CLEANER-200ML-PAL LICHI HONEY -500GM-PAL MADHURAM SUGAR -1KG-PAL © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-31
  32. 32. 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 MADHURAM SUGAR -2KG-PAL MARIE BISCUITS -120GM-PAL MARIE BISCUITS -300GM-PAL METHI PACHAK-PAL MIXED FRUIT JAM-500GM-PAL MUSTARD OIL-1LT-PAL NAMKEEN BISCUIT-100GM-PAL NAMKEEN BISCUIT-50GM-PAL NARIYAL BISCUIT-100GM-PAL NEEM TULSI FACE WASH -60ML-PAL OJAS AQUAFRESH SOAP -75GM-PAL OJAS MINT TULSI SOAP-75GM-PAL OJAS MOGRA SOAP-75GM-PAL OJAS MULTANI MITTI SOAP-75GM-PAL PACHAK AJWAN (ALOE)-100GM-PAL PACHAK ANARDANA -100GM-PAL PACHAK HARAD VATI -100GM-PAL PACHAK HING GOLI -100GM-PAL PACHAK HING PEDHA -200GM-PAL PACHAK JEERA K.M GOLI-PAL PATANJALI BALM -25GM-PAL PATANJALI BASEN-500GM-PAL PATANJALI KESHAR-1GRM-PAL PATANJALI NAMAK -1KG-PAL PATANJALI POPULAR CAKE-125GM-PAL PATANJALI POPULAR CAKE-250GM-PAL PATANJALI POPULAR DETERGENT POWDER-1 KG-PAL PATANJALI POPULAR DETERGENT POWDER-250GM-PAL PATANJALI POPULAR DETERGENT POWDER-500GM-PAL PATANJALI PPURE COW GHEE-1LTR-PAL PATANJALI TOOTHBRUSH (ACTION)-PAL PATANJALI TOOTHBRUSH (ACTIVE CARE)-PAL PATANJALI TOOTHBRUSH (CURVY)-PAL PATANJALI TOOTHBRUSH (JUNIOR)-PAL PATANJALI TOOTHBRUSH (SOFT)-PAL PATANJALI TOOTHBRUSH-PAL PEEDANTAK PAIN RELIEVER -50GM-PAL PINEAPPLE JAM -500GM-PAL PURE HONEY (MULTIFLORA)-250GM-PAL PURE HONEY -250GM-PAL PURE HONEY -500GM-PAL © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-32
  33. 33. 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 ROSE BODY CLEANSER-75GM-PAL SADA CHYAWANPRASH -1KG-PAL SAUNDARYA FACE WASH 60ML NEEM TULSI FACE WASH 60ML SATAVARI CHURNA -100GM-PAL SEB MURRABA -1KG-PAL SHARBAT- BURANSH-750ML-PAL SHARBAT-BEL-750ML-PAL SHARBAT-KHUS-750ML-PAL SHARBAT-KESHAR BADAM-750ML-PAL SHARBAT-BRAHMI-750ML-PAL SHARBAT-MANGO-750ML-PAL SHARBAT-GULAB-750ML-PAL SHARBAT-MANGO PANNA-750ML-PAL SHILAJEET (STRIP)-5GM-PAL SHWET MUSALI CHURNA-100GM-PAL SOMYA HALDICHANDAN SOAP-75GM-PAL SP. CHYAWANPRASH -1KG-PAL SP. CHYAWANPRASH -500GM SPECIAL THANDAI -750ML-PAL SPICE- BLACK PEPPER POWDER -100GM-PAL SPICE- BLACK PEPPER WHOLE-100GM-PAL SPICE- CAROM SEEDS -100GM-PAL SPICE- CHANA MASALA -100GM-PAL SPICE -CHAT MASALA-100GM-PAL SPICE- CORIANDER POWDER -100GM-PAL SPICE -CUMIN SEEDS-100GM-PAL SPICE- FENUGREEK SEEDS-100GM-PAL SPICE- GARAM MASALA -100GM-PAL SPICE- SABZI MASALA-100GM-PAL SPICE- TURMERIC POWDER-100GM-PAL SQUASH- LEMON-750ML-PAL SQUASH- MANGO -750ML-PAL SQUASH- ORANGE-750ML-PAL TEJUS ANTI WRINKLE CREAM -50GM-PAL TEJUS BEAUTY CREAM-50GM-PAL TEJUS BODY LOTION-100ML-PAL TEJUS COCONUT OIL (BOTTAL)-210ML-PAL TEJUS COCONUT OIL (JAR)-210ML-PAL UJJWAL DETERGENT CAKE-125GM-PAL UJJWAL DETERGENT CAKE-250GM-PAL © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-33
  34. 34. 151 152 153 154 UJJWAL DETERGENT POWDER-1KG-PAL UJJWAL DETERGENT POWDER-2KG-PAL UJJWAL DETERGENT POWDER-250GM-PAL UJJWAL DETERGENT POWDER-500GM-PAL Infrastructural facilities  Centralized Office space available in the Administrative Building  Dry Warehouses with a capacity of 20000 MT.  Advanced warehousing and material handling system for grains © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-34
  35. 35.  World class central laboratory for in-house testing  Over-head Water Tanks  Sewage Treatment Plant-Capacity 60 MT/day  Water Treatment Plant Capacity © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-35
  36. 36.  ETP Capacity 550 MT/day  15 T + 6 T steam Boilers available  Weigh-bridge (Capacity 60 MT)  Multi commodity automated washing and grading unit  Parking for commercial vehicles © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-36
  37. 37.  Inhouse packaging units  Internally connected metalled roads through all units/sheds  Excellent drainage system  Transportation facilities for employees  Dedicated wi-fi and leased-line Broadband connectivity in the campus  Dedicated internal security force © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-37
  38. 38. Board of Directors Name: Mr. BabukajiShrestha Chairman Phone: +977-1-4674666 (Ext. 113) Email: patanjali@wlink.com.np Name: Mr. RajuShrestha Managing Director Phone: +977-1-4674666 (Ext . 113) Email: patanjali@wlink.com.np Name: Dr. PawamanSuvedi Director- Operation Phone: +977-1-4674666 (Ext . 114) Email: patanjali@wlink.com.np Name: Mr. HariPradhan Post: Manager Phone: +977-1-4674666 (Ext .112) Email: admin@patanjaliayurveda.com © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-38
  39. 39. [ PART-IIIResearch Methodology ] Research Methodology Research Objectives: 1. To study consumer preferences with respect to sales promotion in FMCG sector. 2. To examine tradeoffs, relative importance of different attributes while responding to a sales promotion offer. 3. To study the effect of sales promotions in FMCG sector 4. To study consumer behavior in purchase of Patanjali Products. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-39
  40. 40. Research Design Research design selected for this project is Descriptive. Data collection Method: (a) Primary Data Collection Method: o Survey method was used for primary data collection. o We used questionnaire as an instrument for survey method. Structured questionnaire. o Type of questionnaire: Open ended and closed ended. (b) Secondary Data Collection method: Published Sources such as Journals, Internet, and Books etc. Unpublished Sources such as Company Internal reports prepare by them. Websites of Patanjali&, some other sites are also searched to find Data. Sampling Detail 1. Target population: The population for this research study consists of the residence of Aurangabad &Jalana. 2. Sampling unit: In this study the sampling unit is individual consumer. 3. Sample size: 1000 consumers. 4. Sampling method: method. The sample is selected by using convenience-sampling © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-40
  41. 41. DATA ANALYSIS Q 1] Which category PTANJALI PRODUCTS do you use? Medicine Food Products Super foods Ayurvedic Body Care Ayurvedic Publications 900 950 700 800 350 1000 900 950 900 800 800 700 700 600 500 400 300 350 200 100 0 Medicine Food Products © MGM-IOM/MBA/MARKETING Super foods Ayurvedic Body Care III SEM 2013-2014 Ayurvedic Publications In-Plant ProjectPage-41
  42. 42. Q 2] How often do you use PTANJALI PRODUCT? Daily once/week or more 2 to 3 times a month once/month every 2-3 months 800 162 23 10 5 900 800 800 700 600 500 400 300 200 162 100 23 10 5 2 to 3 times a month once/month every 2-3 months 0 Daily once/week or more © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-42
  43. 43. Q 3] Overall, how satisfied are you with PTANJALI PRODUCT ? Very Unsatisfied Unsatisfied Somewhat Satisfied Very Satisfied Extremely Satisfied 2 45 953 1200 1000 953 800 600 400 200 2 45 Somewhat Satisfied Very Satisfied 0 Very Unsatisfied Unsatisfied © MGM-IOM/MBA/MARKETING III SEM 2013-2014 Extremely Satisfied In-Plant ProjectPage-43
  44. 44. Q 4] How likely are you to use/purchase PTANJALI PRODUCT again? 969 26 5 Definitely Probably Might or might not Probably not Definitely not Never used 1200 1000 969 800 600 400 200 26 5 Probably Might or might not 0 Definitely © MGM-IOM/MBA/MARKETING Probably not Definitely not III SEM 2013-2014 Never used In-Plant ProjectPage-44
  45. 45. Q 5] Would you recommend PTANJALI PRODUCT to others? 974 22 4 Definitely Probably Might or might not Probably not Definitely not 1200 1000 974 800 600 400 200 22 4 Probably Might or might not 0 Definitely © MGM-IOM/MBA/MARKETING Probably not III SEM 2013-2014 Definitely not In-Plant ProjectPage-45
  46. 46. Q 6] Price of the PTANJALI PRODUCT is suitable to the quality of product company provide? 1000 Less price high quality high price low quality low price low quality high price high quality 1200 1000 1000 800 600 400 200 0 Less price high quality high price low quality low price low quality high price high quality Q 7] What recommendations would you offer for improving PTANJALI PRODUCT? = Most of the Patanjali‟s consumer are facing problem like; products are not available regularly. So, they suggested increasing Stock and making sure that products are available inmarket regularly © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-46
  47. 47. LIST OF DAILY WORK No. 1 Date 17-05-13 2 18-05-13 3 19-05-13 4 20-05-13 5 21-05-13 6 22-05-13 7 8 23-05-13 24-05-13 9 25-05-13 10 11 26-05-13 27-05-13 12 28-05-13 Work 1. Over-View of Broacher of Patanjali. 2. Reference list Over-View. 3. Discussion of Project with Mr.Milind S. ShuklaSir . 1.Discussion with Mr. SatishSolunke (Marketing Executive), Mr. S. Shinde (Marketing Executive),Mr.Tekawade (Marketing Executive). 2. Over-View of Infrastructure of office. 1. Visit to Bajajnagar in Waluj area (new area ). 2. Open10 new outlets. 3.Discussion about day work. 1.Visit to Chavni area. 2. Open new 11 outlets. 3.Discussion about day work. 1. Discussion of Project with my project guide Dr.GoutamSaha Sir. 1. Visit to 3 outlets in Phulambri area. 2. Discussion with the outlet oweners. 1. Delivery of order in Bajajnagar in Waluj area 1.Visit to Nandanvan colony. 2.Open 5 new outlets and took orders from 7 old outlets. 3.Discussion about day work. 1. Visit to Sultanpur to meet a person who want to open Swadeshi Kendra in that area. 2.Vist to Khultabad to Discuss the problems facing bye the outlet owners. 1. Delivery of order in Chavni area. 1. Visit to N-1 area and Ambedkarnagar. 2. Open 8 new outlets. 3. Discussion about day work. 1. Delivery of order in Nadanvan colony. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-47
  48. 48. 13 14 29-05-13 30-05-13 15 31-05-13 16 17 01-06-13 02-06-13 18 19 20 21 03-06-13 04-06-13 05-06-13 06-06-13 22 07-06-13 23 08-06-13 24 09-06-13 25 10-06-13 26 11-06-13 27 28 12-06-13 13-06-13 29 14-06-13 30 15-06-13 31 32 33 16-06-13 17-06-13 18-06-13 1. Holidy 1. Discussion of Project with my project guide Dr.GoutamSaha Sir. 1. Visit to Kumbharwad ,Gulmandi , RangarGalli area. 2. Open13 new outlets. 3. Discussion about day work. 1. Delivery of order in N-1 area and Ambedkarnagar. 1. Visit to Bajajnagar in Walujarea 2. Open 2 new outlets. 3. Discussion about day work. 1. Delivery of order inKumbharwad ,Gulmandi , RangarGalli area. 1. Delivery of order inBajajnagar in Walujarea . 1. Holidy 1. Visit to Ranjangaon inWalujarea 2. Open 9 new outlets. 3. Discussion about day work. 1. Visit to Palashi&Adgaonsarakto meet a people who want to open SwadeshiKendra in that area 2.Discussion about day work. 1. Visit to Ladsawangi&Karmadto meet a people who want to open SwadeshiKendra in that area 2.Discussion about day work. 1. Visit to Warudkazi, Golatgaon&Gadejalgaonto meet a people who want to open SwadeshiKendra in that area 2.Discussion about day work. 1. Visit to Khodpura&rajabajar. 2. Open 10 new outlets. 3. Discussion about day work. 1. Visit to Harsul&Jatwada Area. 2. Open 5 new outlets& reopen 8 dead outlets 3. Discussion about day work. 1. Holiday 1. Work in main office. 2. Discussion about day work. 1. Work in office. 2. Discussion with Mr. SatishSolunke (Marketing Executive), Mr. S. Shinde (Marketing Executive), Mr.Tekawade (Marketing Executive) about market. 1. Discussion of Project with my project guide Dr.GoutamSahaSir. 1. Delivery of order in Khodpura&rajabajar. 1. Delivery of order in Ranjangaon inWaluj area 1. Visit to N-6, N-7, N-9 area. 2. Open 10 new outlets. 3. Discussion about day work. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-48
  49. 49. 34 35 19-06-13 20-06-13 36 21-06-13 37 22-06-13 38 23-06-13 39 40 24-06-13 25-06-13 41 42 43 26-06-13 27-06-13 28-06-13 44 29-06-13 45 30-06-13 1. Holiday 1. Visit to N-11, N-12 area. 2. Open 10 new outlets. 3. Discussion about day work. 1.Work in godown of kalda corner. 2. Discussion about day work. 1.Work in godown of kalda corner. 2. Discussion about day work. 1.Work in godown of kalda corner. 2. Discussion about day work. 1. Delivery of order in Harsul&Jatwada Area 1. Visit to Bajajnagar in Waluj area (new area ). 2.Discussion about day work. 1. Holidy Discussion withMr.Milind S. Shukla Sir . 1. survey ,Questionnaire& interview wid Customer. 2.Discussion about day work. 1. survey ,Questionnaire& interview wid Customer. 2.Discussion about day work. 1. survey ,Questionnaire& interview wid Customer. 2.Discussion about day work. My Achievements during the Project -During the Project I open 93 new outlets -Regain 33 Dead outlets -Generate business of Rs12 lakhs © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-49
  50. 50. [ PART-IV ] Findings Sales Promotion, a short-term inducement, offered to a consumer or trade has gained momentum as a promotional tool world over. It represents nearly three fourth of the marketing budget at most consumer product companies. Sales promotions can enhance consumers‟ self-perception of being “smart” or a “good” shopper Quality as the most influencing factors in the purchase decision while price is also an important for purchase decision. Schemes always attract more and more consumers towards particular brand. Simultaneously it gives idea about the factors which consumers look most in the product before they make final decision Price off and extra quantity is the two main offers/schemes which consumers have came across at the time of purchase People are ready to buy products of brand which suits their budget means more quantity + less cost + quality. Extra quantity with less or same price, more satisfaction, quality and other factors influence consumers to switch over to other brands. People are more quality and price oriented. Consumer remember that name of the product by the company name and also from the past performance of that company Demand is too much for Patanjali‟s products in market, because of that shortage problem occurs in market regularly. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-50
  51. 51. Suggestion Patanjali Product has less price and high quality so more and more consumer buy Patanjali‟s products. Demand is too much for Patanjali products in market, because of that shortage problem occurs in market regularly. So, I suggest that Patanjali should increase the productivity and make sure that there will be no shortage of product in market. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-51
  52. 52. LEARNING EXPERIENCE  Image1-Me, working in the main office.  Image 2- Me, Tushar&siddhesh (fellow student) Visiting Patanjali‟s best selling outlet in Aurangabad.  Image 3-Me, checking stock in godown. In 45 days of training period at Patanjali Ayurveda Kendra Pvt Ltd., has enhanced my corporate experienced. During my training period, I have gone through various aspects of corporate world and I found higher authorities are always too busy. In few days, the environment made me feel like a part of the organization. I got an opportunity & small task to observe the production line of Patanjali Ayurveda Kendra PvtLtd.. I learnt the importance of maintaining the discipline in work and being on time for that. I also learnt that Marketing professional need to do every job that comes to his/her table. I learnt how the company works with group task and the meaning of coordinating among all employees. How time is important in corporate life is a basic observation of mine. Our skills and knowledge are a key of your fast growing future, and other hand lazy employee always blaming on company‟s work. This project is as my first step in corporate world and it was really very helpful and a landmark for my future career. © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-52
  53. 53. SWOT Analysis Strengths: • Low operational costs • Presence of established distribution networks in both urban and rural areas • Presence of well-known brands in FMCG sector Weaknesses: • Lower scope of investing in technology and achieving economies of scale, especiallyin small sectors • Low exports levels • "Me-too” products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: • Untapped rural market • Rising income levels, i.e. increase in purchasing power of consumers • Large domestic market- a population of over one billion. • Export potential • High consumer goods spending Threats: • Removal of import restrictions resulting in replacing of domestic brands • Slowdown in rural demand • Tax and regulatory structure © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-53
  54. 54. Bibliography BOOKS Philip Kotler, “Marketing Management”, 11th edition, Pearson education Asia Publication. C.R.Kothari, “Research Methodology methods &techniques”, New Age International (p) ltd.publishers, 2nd edition. Website www.patanjaliayurveda.com www.nielsen.com Newspapers Times of India Hindustan Times Journals Sales & Marketing Management Strategic Entrepreneurship Journal Journal of Consumer Research © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-54
  55. 55. Annexure Questionnaire Patanjali Ayurved Ltd. CUSTOMER SURVEY FORM Dear Customer, As the Marketing Executive of PATANJALI AGENCY, I want to thank you for giving us the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. We appreciate your cooperation and want to make sure we meet your expectations. Sincerely, TusharChole Marketing Executive 1] Which category PTANJALI PRODUCTS do you use? Medicine Food Products Super foods Ayurvedic Body Care Ayurvedic Publications 2] How often do you use PTANJALI PRODUCT ? Daily once/week or more 2 to 3 times a month once/month every 2-3 months 3] Overall, how satisfied are you with PTANJALI PRODUCT ? Very Unsatisfied Unsatisfied Somewhat Satisfied Very Satisfied Extremely Satisfied © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-55
  56. 56. 4] How likely are you to use/purchase PTANJALI PRODUCT again? Definitely Probably Might or might not Probably not Definitely not Never used 5] Would you recommend PTANJALI PRODUCT to others? Definitely Probably Might or might not Probably not Definitely not Never used 6] Price of the PTANJALI PRODUCT is suitable to the quality of product company provide? Less price high quality high price low quality low price low quality high price high quality 7] What recommendations would you offer for improving PTANJALI PRODUCT? THANK YOU © MGM-IOM/MBA/MARKETING III SEM 2013-2014 In-Plant ProjectPage-56

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