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Effect Of Coupon On Deals On Dairy Product Sales

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Effect Of Coupon On Deals On Dairy Product Sales

  1. 1. REPORT Of BUSINESS COMMUNICATION EFFECT OF COUPON DEALS ON DAIRY PRODUCT SALES Presented To: Madam Saiqa Imtiaz Asif Presented By: Ghulam Khadija Roll # 13 Shagef Akram Roll # 17 Amara Fayyaz Roll # 45 MBA (I) 2nd Semester 27-11-2000 Department of Business Administration Bahauddin Zakariya University, Multan
  3. 3. INTRODUCTION For many year green Valley Dairies, Inc. was using a Coupon Plan to promote its product, with the help of grocers. For this they applied the technique of newspaper advertisement of cooperating grocers. This incentive plan includes discount on nine categories of their products and this discount cost will be covered by green valley themselves rather than the grocers. They were sure that campaign would increase their sale, thereby overcoming these costs. Management felt that the plan had been successful but they had no hard facts. So, a research was conducted to evaluate the effects of Coupon deals a dairy products sales. So a panel of 500 household were selected. Each was requested to keep a diary of dairy products purchases and sales figure were calculated before and after discount deals.
  4. 4. BODY OF THE REPORT Dairy records were submitted by the respondents and they covered three periods. 1- Two week period, ending one month before the discount period. 2- Two week period in which discount was offered. 3- Two week period beginning while month after the discount period. This plan was made to determine short run and long run effects of this offer.
  5. 5. Average qualities of dairy products purchased by house holds two-week periods before, during and after coupon promotion. Product group Before During After (During) v % age % age (After) Fluid Milk (Half gallons) 5.9 7.6 5.9 29% 0% Cottage cheese (Pounds) 1.3 3.7 1.7 184% 31% Yogurt (half Pints) 1.7 5.8 2.2 24% 29% Ice cream (gallons) 0.7 1.5 0.9 114% 28% Ice Milk (gallons) 0.4 1.4 0.6 250% 50% Process cheese (pounds) 0.7 2.9 0.7 314% 0% Natural cheese (pounds) 0.7 2.7 1.1 286% 57% Butler (Pounds) 1.2 2.8 1.2 133% 0% Cream Products (Pints) 1.2 1.9 1.2 58% 0% 30.3 15.5 120% 12% 13.8
  6. 6. 1. FLUID MILK The table shows the effect of discount on sales of fluid milk. The sale before this incentive was 5.9 half-gallons by an average consumer. During those two weeks in which discount was offered, Sales rose to 7-6 half-gallon which shows that discount offered has positive impact an sales. The data calculated after the discount offered was withdrawn, sales again come to the original place of 5.9 half-gallons. 2. COTTAGE CHOOSE The consumption of cottage cheese during the discount period was increased and it raises the sales to 180% when the discount was withdrawn. The level of increase was only 31%. It means that after the withdrawn of discount sales continue to increase but at lower rate.
  7. 7. 3. YOGURT The effect of discount an yogurt consumption was in upward direction and sales figure increased to 241% to this Item However after this discount period the sale of yogurt increased 29% as compared to original sales. 4. ICE CREAM 114% increase in sales of ice cream was observed during the discount period and sale-figure continued to grow 28% even after the discount period. 5. ICE MILK The percentage of increase in sales of ice-milk was observed 114% during the discount period while there was even 50% increase in sales when the discount was withdrawn. 6. PROCESS CHEESE There was 314% increase in sale of process cheese when the discount was offered. However sales figure again came to original. Level when the discount was withdrawn
  8. 8. 7. NATURAL CHEESE The consumption of natural cheese showed an increase During discount period, which results in 286% increase in sales.57% increase in sales was observed after the end of discount period. 8. CREAM PRODUCTS Cream product showed 58% increase during discount period. however after discount period sales again came to original position. BUTTER During discount period the sale of butter raise to 133% however sales again come to original position after end of discount period. After this we selected one item fluid milk from these items category and calculated the relationship between demographic characteristics and effect of coupen discount on sales. Necessary calculations are as below:
  9. 9. Total effects of coupen discount promotion on sales of fluid milk by demographic characteristic percentage change from before period. Demographic During After Education Grade school +58 +27 High school +28 +8 College +20 -1 OCCUPATION Labour and crafts +41 +5 Professional and clerical +14 -7 Farmer +41 -9 Retired and unemployed +69 +17 RACE White +27 -3 Non-white +68 +14 EMPLOYMENT STATUS Wife employed +54 +7 Wife unemployed +6 0 CITY SIZE Less than 2,500 +28 -1 2500-49,999 +26 -2 50,000-49,99999 +28 +9 500,000-999,999 +39 +17 1,000,000 and over +33 +13 INCOME OF HOUSEHOLD $30,000 and over +43 +4 $20,000-$29,999 +17 +2
  10. 10. $15,000-$19,999 +21 +1 $10,000-$14,999 +8 +3 Under $10,000 +49 0 We covered almost all the demographic characteristics of our target population in this research. The objective was to find how different categories of population respond towards the some discount offered on the sale of certain dairy products. EDUCATION The consumption of fluid milk by grade school children was increased and it results in 58% increase in sale during discount period and 27% increase was observed after withdrawn of discount 28% increase in sales was observed during the increase the consumption of high school students and this category has contributed to 8% increase in sales even if the discount was withdrawn. However during the discount period college students increased the consumption by 20% but after discount they reduced the consumption of fluid milk and which results in 1% decline in sales figure.
  11. 11. OCCUPATION In this category the response of people form different occupation towards incentive system was observed 41% increase in sales was observed during discount period because of the increase consumption from people in professions of labour and farming. However after discount period 5% increase in sales was contributed by labourers and craftsman while farmer decrease these consumption by 9%. During discount period professionals and clerical, retired and unemployed increased the consumption of fluid milk, while after the discount 7% decrease in consumption was observed from professionals and clerical people while retired and unemployed people showed 17% increase in consumption compared to consumption before discount period. RACE New white people show positive response towards sales during the discount period. However after the discount period white people reduced their consumption.
  12. 12. EMPLOYMENT STATUS It both the members of the family are employed then more increase in sales was observed as compare to family where wife is unemployed. CITY SIZE The area having population between 500,000 – 499,999 showed more response towards increase in sale during discount. INCOME OF HOUSEHOLDS People having income level under $10,000 available the maximum discount opportunity and showed 49% increase in sales.
  13. 13. CONCLUSION After collection and analysis we conclude that overall effect of discount on sales was in direction and it increase the total sale figure to 120% during the discount and even after the discount was withdrawn 12% increase in sales, in sales, compared to the original sales before discount was observed which shows that discount has the positive impact an future sales. 726% increase in sales was observed from all the demographic characteristics of population during the discount and 10% increase in sales was even observed after the discount.
  14. 14. RECOMMENDATION Green Valley dairies should continue such kind of incentive plans in future which will help in increasing their revenues and in return their profits will also increase.
  15. 15. Sales of Dairy Products 40 During 30 Sales 20 Series1 After Before 10 0 1 2 3 Time Period Sales of Dairy Products 40 30 Sales 20 Series1 10 0 1 2 3 Time Period