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AN ANALYSIS OF THE IMPACT OF PROMOTIONAL ELEMENTS ON SALES AND PROFITS: AN EMPIRICAL STUDY Tapas Kumar Bose SumanKumar Dawn Presented by, Rhitikajain
Introduction  Study conducted on Clariant (India) Limited an affiliate of Clariant AG. In India it is the market leader in Textiles, chemicals, Leather dyes, and important  supplier to the high end segment. Belch and Belch -2003 (major factors underlying strategic shift in marketing). The role of 4Ps’
Review of literature Strang (1976) Peckham (1978) Wilkinson, Mason, Paksoy (1982) Czepiel (1984) Farris and Quelch (1987) Tat et al (1988) Turnball and Wilson (1989) Bose (2002)
Objectives of the study To pinpoint the gap in the existing knowledge relating to promotional strategies through literature survey. To identify the promotional elements chosen by CIL for enhancing its efficiency and Profitability. To enquire the impact of different promotional elements of CIL on the sales and profits of the company during the study period. To examine the degree of association between independent variables and dependent variables.
Data collection  Primary Data Direct interviews of officials and executives of the company. Secondary Data Annual reports (1995-96 to 2004-05) Books of Accounts (1995-96 to 2004-05) Company’s website.
Research Methodology Pearson Product-Moment Correlation Coefficient Analysis (Bivariate) Co-efficient of Determination (r2) t-test Regression- Analysis (Bivariate)
Formulation of Hypotheses Ho  There is significant relationship between the Sales and the 3 independent variables (general promotional expenses, discount on sales and trade commission) during the period of study. No significant relationship between operating profit and the 3 independent variables during the period of the study. No significant relationship between Net profit and the 3 independent variables during the period of the study.
Analysis and Interpretation
Table 2:   Pearson Product-Moment      Correlation Coefficient
Table 3 :   coefficient of determination(r2)
Table 4 : Test of significance
Table 5 : Regression Analysis (y= a+bx)
Limitations of the study Limited time period of 10 years. No possibility to have an access over the confidential decisions and policies of the company and so the interpretation are on the basis of the published data. Promotional elements are just the major factor for the corporate growth. Other factors also contribute to Sales and Profit of the company. No previous study on the same theme so own methodology and analytical framework developed.
Conclusion  Elements of promotional strategies largely responsible for increasing Sales and Profits of the multinational company. Cause and Effect relationship. The findings of the study will go a long way in improving the performance and profitability of the chemical companies in India.

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An analysis of the impact of promotional elements on sales and profits

  • 1. AN ANALYSIS OF THE IMPACT OF PROMOTIONAL ELEMENTS ON SALES AND PROFITS: AN EMPIRICAL STUDY Tapas Kumar Bose SumanKumar Dawn Presented by, Rhitikajain
  • 2. Introduction Study conducted on Clariant (India) Limited an affiliate of Clariant AG. In India it is the market leader in Textiles, chemicals, Leather dyes, and important supplier to the high end segment. Belch and Belch -2003 (major factors underlying strategic shift in marketing). The role of 4Ps’
  • 3. Review of literature Strang (1976) Peckham (1978) Wilkinson, Mason, Paksoy (1982) Czepiel (1984) Farris and Quelch (1987) Tat et al (1988) Turnball and Wilson (1989) Bose (2002)
  • 4. Objectives of the study To pinpoint the gap in the existing knowledge relating to promotional strategies through literature survey. To identify the promotional elements chosen by CIL for enhancing its efficiency and Profitability. To enquire the impact of different promotional elements of CIL on the sales and profits of the company during the study period. To examine the degree of association between independent variables and dependent variables.
  • 5. Data collection Primary Data Direct interviews of officials and executives of the company. Secondary Data Annual reports (1995-96 to 2004-05) Books of Accounts (1995-96 to 2004-05) Company’s website.
  • 6. Research Methodology Pearson Product-Moment Correlation Coefficient Analysis (Bivariate) Co-efficient of Determination (r2) t-test Regression- Analysis (Bivariate)
  • 7. Formulation of Hypotheses Ho There is significant relationship between the Sales and the 3 independent variables (general promotional expenses, discount on sales and trade commission) during the period of study. No significant relationship between operating profit and the 3 independent variables during the period of the study. No significant relationship between Net profit and the 3 independent variables during the period of the study.
  • 9. Table 2: Pearson Product-Moment Correlation Coefficient
  • 10. Table 3 : coefficient of determination(r2)
  • 11. Table 4 : Test of significance
  • 12. Table 5 : Regression Analysis (y= a+bx)
  • 13. Limitations of the study Limited time period of 10 years. No possibility to have an access over the confidential decisions and policies of the company and so the interpretation are on the basis of the published data. Promotional elements are just the major factor for the corporate growth. Other factors also contribute to Sales and Profit of the company. No previous study on the same theme so own methodology and analytical framework developed.
  • 14. Conclusion Elements of promotional strategies largely responsible for increasing Sales and Profits of the multinational company. Cause and Effect relationship. The findings of the study will go a long way in improving the performance and profitability of the chemical companies in India.