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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
CONTENTS


1-   INTRODUCTION

2-   BODY OF REPORT

3-   CONCLUSION

4-   RECOMMENDATION

5-   GRAPHS
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.
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.
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
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.
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
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:
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
$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.
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.
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.
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.
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.
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

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Effect Of Coupon On Deals On Dairy Product Sales

  • 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
  • 2. CONTENTS 1- INTRODUCTION 2- BODY OF REPORT 3- CONCLUSION 4- RECOMMENDATION 5- GRAPHS
  • 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. 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. 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. 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. 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. 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. 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. $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. 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. 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. 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. 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. 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