Get the insights of Rice products in India and consumer behaviour for the same. The current trends about this industry.

1. A STUDY OF EFFECTIVENESS OF SALES PROMOTION TOOLS
ON CONSUMER BUYING BEHAVIOR OF LT FOODS LTD. (DAAWAT)
BY
AVINASH KUMAR VIPUL, 817006
MBA (2nd year)
National Institute of Food Technology Entrepreneurship and Management
UNDER THE GUIDANCE OF
Mr. Sanjeev Uppal (Plant Head)
Mr. Madhav Pandey (Quality Head)
LT Foods Ltd.
Dr. SANJAY BHAYANA (Faculty guide), Head of department, FBMED department
NIFTEM, Kundli, Sonepat, Haryana

2. • India is the world’s second largest producer of food next to China and has the potential of being the
biggest in the World.
• A strong and dynamic food processing sector plays significant role in the overall economic setup of a
country.
• Food processing is a large sector in India that covers activities such as agriculture, horticulture,
plantation, animal husbandry and fisheries. It also includes other industries that use agricultural
inputs for manufacturing of edible products.
• Rice is the second largest produced cereal in the world. At the beginning of the 1990s, annual
production was around 350 million tons.
• India is the second largest rice producer in the world after China, with 21% of the global production
share.
• Rice is the seed of the grass species Oryza, as a cereal grain, it is the most widely consumed staple
food for a large part of the world.
• Rice is a major component in the human diet. Breakfast, lunch and dinner are never complete when
rice is not served. This fact makes rice-retailing & wholesaling a lucrative and promising business.
INTRODUCTION

3. ABOUT THE COMPANY
• LT Foods Ltd is an India-based rice company. The company is engaged in the manufacture and sale of
rice under the brand DAAWAT.
• They also manufacture and market parboiled rice. Their product is marketed in more than 50 countries.
• LT Foods Ltd was incorporated on October 16, 1990 as a private limited company with the name LT
Overseas Pvt Ltd. In the year 1993, the company started their operations using certain processing
facilities of Lal Chand Tirath Ram Rice Mills (LCTRRM)
 MISSION AND VISION
• Customer Delight through Value added Agri Business
• To command top of the mind recall with the consumer, by ensuring effective brand promotion strategies
• Invest in research & development activities so company can deliver ever better products and always stay
ahead.
• Focus on increasing global footprint by venturing into newer markets.
• At the same time forge fruitful alliances with entities operating within the same plane.

5. • Project Title: A Study the effectiveness of sales promotion tools on consumer
buying behavior of LT Foods Ltd.(DAAWAT )
• Description: In this project analysis of the effectiveness of sales promotion tools
on consumer buying behavior of LT Foods product, Rice is a cereal grain, it is the
most widely consumed staple food for a large part of India. Rice is a major
component in the human diet.
• LT Foods products are purchased more often therefore their sales is much more
effected by sales promotional tools. Consumers keep having more requirements
and needs which have to be fulfilled, they sometimes have either a pre-planned
or unplanned buying decision when they visit supermarkets or wholesale stores.
• Sales promotion tools like free gifts, buy 1 liter oil get ½ kg Biriyani rice free,
coupon, loyalty points, 25% extra rice, discounts attract consumers to make major
purchasing decisions.
PROJECT DESCRIPTION

6. • To study various forms of sales promotion tools that
affects consumer buying behavior.
• To study the effectiveness of sales promotion tools
of LT Foods Ltd. (DAAWAT)
OBJECTIVES
The objectives of the project :

7. • A questionnaire was prepared for effectiveness of sales promotion
tools on consumer buying behavior of LT Foods Products and all
the questions answered the objectives of the study.
• The questionnaire was floated with the help of G-Doc. A sample
size of 280 was taken.
• The frequency distribution for each question or variable was
calculated and thoroughly screened.
• SPSS and Excel was used to do the following analysis.
METHODOLOGY

8. • Gender
DATA ANALYSIS AND INTERPRETATION
Majority of the respondents are males (64.3%) which means
that male respondents had a greater degree of awareness than
their female counterparts about the products of LT Foods Ltd.

9. DATA ANALYSIS AND INTERPRETATION
Education Majority of the respondents have completed their graduation
(55.7%), followed by those who have completed their post-
graduation (33.6%). This means that a significant number of
people who are educated have knowledge about the products of
LT Foods Ltd., which is definitely a welcome step as educated
people are the ones who mostly engage in conscious decision-
making.

10. • Employment
DATA ANALYSIS AND INTERPRETATION
The majority of the respondents (37.9%) are from the salaried
class, closely followed by students (33.6%). Means is that the
products of LT Foods Ltd. are widely popular among the
salaried class and students

11. AWARENESS OF SALES PROMOTION TOOLS
DATA ANALYSIS AND INTERPRETATION
 The most popular sales promotional tools, respondents had the most awareness about 25% extra rice (70%).
The level of awareness decreases in the manner: Discounts, buy one litre oil get ½ kg Biryani rice free,
Coupons, Free gifts, loyalty points and other.

12. AWARENESS OF THE ORGANIC BRAND ECO-LIFE OF DAAWAT
 The respondents (54.3%) are aware about the organic brand Eco Life of
DAAWAT while remaining 45.7% were unaware.

13. EFFECTIVENESS OF SALES PROMOTIONS TOOLS:
 25% Extra Rice (61.8%) & Buy 1 liter oil get ½ kg Biryani Rice Free
(43.2%) were among the two most used sales promotional tools preferred
by the respondents while buying DAAWAT Products.

14. PURCHASE OF DAAWAT PRODUCTS WHEN BENEFITS FROM
SALES PROMOTION TOOLS ARE AVAILABLE
 consumer buying behavior was greatly influenced by sales promotion
tools i.e., when the sales promotion tools were available, 83.9%
respondents showed an interest to buy the products.

15. PURCHASE OF DAAWAT PRODUCTS DUE TO SALES PROMOTION
TOOLS EVEN WHEN ONE DON’T NEED THEM

16. QUALITY OF PRODUCT HAMPERED WITH USE OF SALES
PROMOTION TOOLS
 70% of the respondents believe that quality of DAAWAT products were
not hampered after sales promotional tools were used.

17. AWARENESS OF THE BRAND DEVAAYA FROM HOUSE OF
DAAWAT
 According to study conducted above, there is generally a high level of awareness about the brand Devaaya from the
house of Daawat and under this brand rice is the most preferred and is also the most known product followed by atta,
besan, daliya, suji, maida and poha. It can also be observed from the graph above that there is also quite a high level of
ignorance about the ‘Devaaya’ brand. This can be attributed to the fact that the brand has been recently launched and,
consequently, is in its early stages. It is here that the many marketing tools discussed can be effectively applied to
increase the brand awareness among consumers and attract them into investing into the brand.

18. CONCLUSION
• From the effectiveness of sales promotion tools on consumer buying behavior of LT Foods Product, it
can be concluded that there is no significant difference between effect of sales promotional tools on
males and females for Daawat. But there is a significant difference in the awareness of discounts used
as a promotional tool. Female are found to be more aware about discounts than males.
• The society believes sales promotional tools to have a remarkable impact on the females since they are
considered to be shopaholics but in the study, this general perception found to be untrue.
• Sales promotional tools equally effect the consumer behavior and buying decision of the males as there
was no significant difference between the male and the females.
.

19. 25% Extra Rice and Discount –Sales Promotional Tools, affected the
consumer buying behavior mostly.
Organic Brand Eco-Life of Daawat is well known among customers,
Needs are to increase its sales & Promotion at large levels.
Awareness about Devaaya product is less as it is at initial stage but
the acceptability of this product among the consumers is highly
appreciated.
Sales promotional Tools highly affect the consumer buying behavior
both in rural as well as urban households.
KEY FINDINGS

20. • Working in groups
• Working in cooperative environment
• Exploring corporate life
• Software such as SAP(Sales & Distribution)
LEARNINGS

21. • Burke SJ, Milberg SJ (1993). The role of ethical concerns in consumer purchase behavior:
Understanding alternative processes. Adv. Consumer Research, pp. 119-122.
• Carpenter JM (2008). Consumer shopping value, satisfaction and loyalty in discount
retailing, Journal of Retail and Consumer Service, 15: 358
• Dasu, S., Ton, g, 2010. Dynamic pricing when consumers are strategic: Analysis of posted
and contingent pricing schemes. European Journal of Operational Research 204, 662–671
• Graillot L (1998). Emotions and Consumer Behavior. Res. Appl. Mark., 13(1): 5-25
• Verma, D. & Kapoor, S. (2003). “Dimensions of Buying Roles in Family Decision-Making.”
IIMB Management Review (Journal of Indian Institute of Management, Bangalore),
Volume 15, Number 4, p. 3
• Thomas, A., Linda, N. & Rosanna, G., (2007). “Women Wine Consumers: Information
Search and Retailing Implications.” International Journal of Wine Business Research,
Volume 19, Number 4, pp. 327 -339
REFRENCES