a complete project report for b school student faculty and management people.containing fmcg industry growth sale promotion techniques mapro sweet sauces and many more.

1. 1
Summer Internship Project Report
On
“A study of “Consumer & retailers Oriented Sales Promotion
in FMCG sector.”
Mapro Food. Ltd
Submitted in partial fulfillment of the requirements for the Two
Year Full Time Post Graduate Diploma in Management Class of
2018-20
By: Under Guidance
Kunal Pal Prof. Dr. Aditi Dang
DM18B26 P.I.B.M.-Pune
2018-2020 Mr. Milind Karmaker
Territory sales officers

2. 2
P.I.B.M- Pune Institute of Business Management Pune
CERTIFICATE OF ORIGINALITY
I hereby declare that this Summer Internship Project is my own work and that, to
the best of my knowledge and belief, it reproduces no material previously
published or written that has been accepted for the award of any other degree of
diploma, except where due acknowledgement has been made in the text.
Kunal Pal
DM18B26
31th July,2019

3. 3
(On Organization Letterhead)
Date: ………….
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. /MS……………………. of P.I.B.M- Pune PGDM Batch 2016-18 has
successfully completed his/ her summer internship under the guidance of Mr./
Ms.……………………… (Industry Mentor’s Name) for a duration of …………………. weeks,
from…….to…………, 2017.
During his/her tenure with us, we found him/her ……………………….
We wish him/ her all the very best for future endeavors.
Signature Name Designation Organization seal

4. 4
CERTIFICATE
This is to certify that Mr. Kunal Pal PGDM (2018-20 Batch) a student of P.I.B.M- Pune Institute
of Business Management, Pune has undertaken the project on “A Study of Consumer & retailers
Oriented Sales Promotion in FMCG sector”. The survey, data collection, & analysis work for
preparing the project has been carried out by the student in partial fulfillment of the requirements
for the award of PGDM, under my guidance and supervision.
I am satisfied with the work of Mr. Kunal Pal
Date:
Prof.Dr Aditi Dang

5. 5
ACKNOWLEDGEMENT
I am extremely grateful to all those people who have shared their expertise and
knowledge with me and without whom the completion of the project would have
been virtually impossible
I am highly thankful to my guides, Prof. Dr Aditi Dang during the course of
completion of this project. His valuable guidance, suggestion and support provide
me just the right kind of view desired to accomplish the task of completing this
project. A great enthusiasm was filled in by him and always proves a source of
inspiration to us.
I am indebted for their valuable support and cooperation during the entire tenure of
this project. Not to forget all those who have kept my spirits surging and helped
delivering my best.
I would like to express my deepest sense of respect to Pune Institute of Business
Management who offered opportunity for management.
At last I would like to thank all the respondents met in the preparation, who gave
their valuable time to provide us required information and their honest support to
complete our project in time.
Kunal Pal

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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 & RETAILERS
ORIENTED SALES PROMOTION IN FMCG SECTOR” in which emphasis given to the
effect of sales promotion on buying habits of consumer.
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 sales promotion there are certain theories narrated as operant conditioning and
projective theory. Based on primary & 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.
At last conclusion of report, findings and suggestions was given based on study.

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Contents
ACKNOWLEDGEMENT...................................................................................................................................5
Executive Summary.......................................................................................................................................6
Project Synopsis............................................................................................................................................8
About the Sector...........................................................................................................................................9
FMCG SECTOR:..........................................................................................................................................9
Subcategories of FMCG Sector .................................................................................................................9
Food and Beverages Market...................................................................................................................10
Food and Beverages Market Size............................................................................................................10
Food and Beverages Market Segmentation ...........................................................................................10
Trends in The Food and Beverages Market ............................................................................................11
BACKGROUND & INCEPTION OF THE COMPANY: Mapro Food Ltd............................................................12
Market share of Mapro Food..................................................................................................................12
Products..................................................................................................................................................13
INTRODUCTION OF PROJECT ......................................................................................................................14
Tools of Consumer Oriented Sales Promotion: ......................................................................................15
REVIEW OF LITERATURE..............................................................................................................................17
RESEARCH METHODOLOGY ........................................................................................................................18
Research objective:.................................................................................................................................18
Research type..........................................................................................................................................18
Data collection Method: .............................................................................................................................18
Primary Data Collection Method: ...........................................................................................................18
Secondary Data Collection method: .......................................................................................................18
Data Analysis & Interpretation ...................................................................................................................19
Consumers ..............................................................................................................................................19
Retailers: .................................................................................................................................................22
FINDINGS AND SUGGESTION ......................................................................................................................24
Suggestion...............................................................................................................................................25
CONCLUSION...............................................................................................................................................26
BIBLOGRAPHY .............................................................................................................................................26
THANK YOU.................................................................................................................................................27

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Project Synopsis
Project Title :
A Study of Consumer & Retailers Oriented
Sales Promotion in FMCG sector
Company Name:
Mapro Food Ltd
Student Name : Kunal Pal
Student Roll No : DM18B26
External Project Guide Name: Mr. Milind Karmarker
External Project Guide Designation:
Territory sales officers
Internal (PIBM) Project Guide Name Prof. Dr Aditi Dang
Duration of project From 20th
May 2019 To 20th
July 2019

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About the Sector
FMCG SECTOR:
The Fast moving consumer goods (FMCG) sector is one of the key sectors contributing in
our Indian economy. It is the fourth largest Sector which provides employment to around 3
million people which accounts to be total of 5% of the total factory employment of the
country. These products are consumed in daily basis by each and every strata of the society
irrespective of their social class, income group etc. FMCG sector is more lucrative because
of low penetration levels, well established distribution network, low operating cost, lower
per capita consumption, larger consumer base and simple manufacturing process for the
most of the products result in a fairly low capital investment.
The industry is highly competitive due to the presence of multinational companies,
domestic, companies and unorganized sector. A major portion of the market is captured by
unorganized players selling unbranded and unpackaged products. More than 80% of the
revenue of the total revenue of the FMCG companies comes from the product which is
priced below Rs. 100.This has made proliferation of localized brands which are offered in
loose form in small towns and rural parts where the Brand awareness is low. In last 10
years’ domestic players are giving tough competition to multinationals, in fact they have
outstripped many MNCs in terms of growth and market cap.
Urban India accounts for 66% of total FMCG consumption while Rural India accounts the
remaining 34%. However, India being a developing nation rural India accounts more than
40% of major FMCG categories such as Personal Care, Fabric Care, Hot Beverages. As per
data of ASSOCHAM FMCG giants like Hindustan Unilever and Dabur India generates half
of their sales from rural India while Colgate Palmolive India and Marico Constitute nearly
37% respectively.
 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.4000-6000
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.
Subcategories of FMCG Sector

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Food and Beverages Market
The food and beverages market consists of sales of beverages, food, pet food and tobacco products
by entities (organizations, sole traders and partnerships) that produce beverages, food, pet food
and tobacco products. The companies in the food and beverages industry process raw materials
into food, pet food and tobacco products, package and distribute them through various distribution
channels to both individual customers and commercial establishments.
Food and Beverages Market Size
The food and beverages market expected to reach a value of nearly $9471.66 billion by 2022,
significantly growing at a CAGR of 8.9% during the forecast period. The growth in the food and
beverages market is due to increasing population, strong economic growth and rising disposable
income in many emerging countries.
However, the market for food and beverages is expected to face certain restraints from several
factors such as weak wage growth in developed economies and changing regulatory environment.
Food and Beverages Market Segmentation
The global food and beverages market is further segmented based on type and geography.
By Type - The food and beverages market is segmented into meat, poultry and seafood, bakery
& confectionary, alcoholic – beverages, dairy, tobacco products, non-alcoholic – beverages,
frozen and fruit & veg, syrup, seasoning, oils, & general food, grain products, and pet food.
Among these segments, the meat, poultry and seafood market accounts for the largest share in
the global food and beverages market.
By Geography - The global food and beverages is segmented into North America, South
America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these
regions, the Asia Pacific food and beverages market accounts the largest share in the global food
and beverages market.

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Trends in The Food and Beverages Market
Shift to natural ingredients, functional drinks for hydration and nutritional benefits and rise in
micro distilled/artisan spirits are the major trends witnessed in the global food and beverages
market. Potential Opportunities in The Food and Beverages Market with increasing organic food
consumption, increase in demand for food and beverages due to rapid urbanization, positive
economic growth outlook in many developed and developing countries, rising disposable income
the scope and potential for the global food and beverages market is expected to significantly rise
in the forecast period.

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BACKGROUND & INCEPTION OF THE COMPANY: Mapro
Food Ltd.
In 1959, Kishore Vora started operations in a small room, as a home business with a mutually
beneficial relationship with the farmers to make
strawberry jam for product sales. This eventually led
to the launch of the Mapro brand in 1978.Located
around the idyllic hill-town of Panchgani in Western
India.
Mapro Foods manufactures Fruit Jams; Fruit beverage concentrates – Crushes and Squashes; and
Fruit Bars. With an annual processing capacity of around 30 thousand MT, Mapro is a market
leader in Western India. Founded in 1959, The
company has grown organically over the last five
decades with sustained profitability
Market share of Mapro Food
21%
4%
10%
24%
Market share of Mapro Food
Mapro Hershey Eurofrutta Mala kissan

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Products
o Restore- Under this segment comes Health Drink Concentrates like lemon barley water, lemon
ginger squash, jeera masala cordial etc. that’s gave to almost 16% of their business.
o Lounge, Coolz-All seasonal product and mostly used as various flavor to mix with water syrup
and also alcoholic drink. It’s a luxury product and gave almost 9-12% of their business.
o Syrups &Sharbats- Star product of mapro that’s earn maximum profit and sale of this company
almost 48%. Most sales product under this verity like rose, strawberry kukum etc.
o Confectionary, jam, ketchup, Toppings- chocolate falero jam in different flavor ketchup tomato
sauce chocolate strawberry topping have a great name of mapro food. That’s gave 30% business.
Though it’s have huge competitor in market.
o Competitor- Hershey, kissan,amul,mala some of big name though its maintain and sustainable
profitable company with 43% market share of sweet sauces market.

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INTRODUCTION OF PROJECT
. “Study of consumer & Retailers 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.
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.
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.

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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. Retailers Oriented Sales Promotion
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
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.
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

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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.
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.

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REVIEW OF LITERATURE
Consumer & Retailers Oriented Sales Promotion is the main topic of this project. Here emphasize
is given to motivate consumer to increase sales. Consumer & Retailers Oriented Sales Promotion
includes Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Pack’s, Price-off,
Event marketing etc.
Marketer’s uses consumer & Retailers 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

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RESEARCH METHODOLOGY
Research objective:
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.
Research type:
Descriptive Research involves the description of the characteristics of the variable, description of
the extent of association between variables and it allows the researcher to infer about the
variables
Data collection Method:
Primary Data Collection Method:
o Survey method was used for primary data collection.
o We used questionnaire as an instrument for survey method.
o Structured questionnaire.
o Type of questionnaire: Open ended and closed ended.
Secondary Data Collection method:
o Reference books &Internet.
Target population:
The Population for this research study consists of the residence of Pune PCMC.
Sampling unit: In this study the sampling unit is individual consumer.
Sample size: 30 consumers 30 retailers.

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Data Analysis & Interpretation
Consumers
Q1-Which brand of sweet sauces do you use?
(Preference of consumers)
 Kissan-8
 Mala-6
 Kukum-2
 Mapro-11
 Hershey-3
Q2- Do you always buy the same brand of sweet sauces (Brand Loyalty of consumers)
 Yes-19
 No-11
Q3- Which factors do you normally consider
while purchasing a particular brand of sweet
sauces? (Purchasing Criteria of consumers)
 Quality-10
 Teste-6
 Company image-3
 Price-6
 Packaging-3
 Others-2
27%
20%36%
10%
7%
PREFERENCE OF CONSUMERS
Kissan Mala Mapro Hershey Kukum
63%
37%
BRAND LOYALTY OF
CONSUMERS
Yes No
33%
20%10%
20%
10%
7%
PURCHASING CRITERIA OF
CONSUMERS
Quality Teste Company Image
Price Packaging Others

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Q4. Do you consider promotional schemes while purchasing a particular brand of sweet
sauces? (Impact of Promotional Schemes)
 Yes-23
 No-7
Q5-Which of the following promotional schemes you have come across so far. (Available
Promotional Schemes)
 Coupons-3
 price off-12
 Freebies-4
 scratch cards-3
 lucky draw-2
 Bundling-1
 extra qty-5
77%
23%
IMPACT OF PROMOTIONAL
SCHEMES
Yes No
10%
40%
13%
10%
7%
3%
17%
AVAILABLE PROMOTIONAL SCHEMES
Coupons Price off Freebies Scratch cards
Lucky Draw Bunding Extra Qty

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Q6. Which medium do you feel is suitable to promote the various promotional
schemes? (Mediums for
Promotion)
 Radio & social media-12
 TV-11
 Newspaper-3
 Hoarding-2
 Others-2
Q7. Is there any existing scheme on the sweet sauces you are currently using? (Existing
Schemes being used)
 Yes-24
 No-6
Q8- If you get an attractive promotional offer in the product other than of your choice
will you switch over? (Consumers
Choices)
 Yes-19
 No-11
40%
36%
10%
7%
7%
MEDIUMS FOR PROMOTION
Redio &social Media TV Newspaper Hoarding others
80%
20%
EXISTING SCHEMES BEING USED
Yes No
63%
37%
CONSUMERS CHOICES
Yes No

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Retailers:
Q1. Since how long are you in this business? (Retailers Experience)
 1-5 Years-3
 5-10 Years-10
 More than 10 years-17
Q2. Name the sweet sauces (Company) you stock for. (Stock Details)
 Kissan-14
 Mala-6
 Kukum-4
 Mapro-11
 Hershey-6
Q3. Do you suggest customers to purchase a certain brand? (Retailers Influence over
customers)
 Yes-8
 No-22
10%
33%57%
RETAILERS EXPERIENCE
1-5 years 5-10 years more then 10 years
34%
14%10%
27%
15%
STOCK DETAILS
Kissan Mala Kukum mapro Hershey
27%
73%
RETAILERS INFLUENCE
OVER CUSTOMERS
Yes No

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Q4-If Yes why? (Retailer’s Preference)
 High margin-14
 Quality-8
 Scheme-5
 Relationship-03
Q5- Do customers look for various schemes in the
product? (Customers Preference)
 Yes-24
 No-6
46%
27%
17%
10%
RETAILERS PREFERENCE
High Margin Quality Scheme Relationship
80%
20%
CUSTOMERS PREFERENCE
Yes No

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FINDINGS AND SUGGESTION
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.
 Showing brand loyalty of persuasion factors but it’s become changed if customer getting
good offers discount etc.
 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 come
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 price oriented.
 Most of retailer’s experience and only maintain stock with recognize brand with superior
quality
 Now no retailers are forcing customer to buy brand, if they suggest then that’s brand which
gave high margin with maintaining quality.
 Most important it’s okay that’s scheme size is small but need to be very frequent.
****Consumer remember that name of the product by the company name and also from the
past performance of that company.

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Suggestion
From this project I have suggested that based upon my observations and some surveys which
already research from this topic following as:
1) Temporary price reductions (price off) substantially increase sales
2) Sales Promotion leads to purchase acceleration/stockpiling effects
3) Sales Promotion leads to primary increase in demand for a category
4) Advertisement by social media.
5) Promotion scheme made for not only customer also have in mind retailers.

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CONCLUSION
I concluded for this project which is based on data founded many long term and short term
impacts on sales promotion strategy in FMCG sector. Followings are reasons:
From this project it is found that promotion not only increases sales of main product but it also
leads to increase in sales of complementary categories. Found strong cross relationships between
products of the promoted product category indicating brand substitution behavior.
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.
Most of retailer’s experience and only maintain stock with recognize brand with superior quality
Now no retailers are forcing customer to buy brand, if they suggest then that’s brand which gave
high margin with maintaining quality. Most important it’s okay that’s scheme size is small but
need to be very frequent.
BIBLOGRAPHY
 Mapro food (website)
 Kissan, Mala website
 MARKETING91.COM
 business.gov.in

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THANK YOU