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29711425 project-report

  2. 2. OMEGAN SCHOOL OF BUSINESS, PUNE A PROJECT REPORT ONSALES PROMOTION ACTIVITY ON MOTHER DAIRY BY Santosh Sathe [08 OSB 351] FACULTY GUIDE PROF.SHANTANU PRASAD A Report submitted in partialfulfillment of The requirements of MBA Program Session [2008-2010] 2
  3. 3. OMEGAN SCHOOL OF BUSINESS, PUNEDECLARATION I am Santosh Sathe of MBA, (Second semester) from OmeganSchool of Business, Pune, Hereby declare that this project workentitled “Sales Promotion Activity at MOTHER DAIRY FOOD ANDVEGETABLES PVT. LTD. Pune, Maharashtra carried out for 60days. To the best of my knowledge & belief, it is an original pieceof work and is the sheer outcome of my own efforts under thevigilant guidance of my guides has not either in full or in part hasbeen submitted to any other institution for the award of any othercourse. Santosh Sathe Omegan School of Business, Pune- MaharashtraDate:- 3
  4. 4. OMEGAN SCHOOL OF BUSINESS, PUNE CERTIFICATE This is to certify that, the project entitled “Sales Promotion Activity” at MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD which is being submitted by Mr. Santosh Sathe in the partial fulfillment of the course MASTER OF BUSINESS ADMINISTRATION submitted to Omegan School Of Business, affiliated to ICFAI University, Tripura has satisfactorily completed the research work under our guidance and supervision.Mr. Shantanu Prasad Mr. SunilLalla [Faculty Guide][Principal] 4
  5. 5. OMEGAN SCHOOL OF BUSINESS, PUNE Mr. Deepak Mahadik. [Company Guide]Acknowledgement I would like to express my gratitude to all those who gave methe possibility to complete this project. I want to thank OMEGANpune Center for giving me permission to commence this project inthe first instance, to do the necessary research work and to useavailable data. I am grateful to Mr. Sunil Lalla (Principal of Omegan Schoolof Business, Pune) And Mr. DEEPAK MAHADIK (Product saleManager) MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD.Pune, under guidance I have completed this final report. I have nowords to acknowledge the valuable time & support that I receivedfrom them during project work. I am deeply indebted to PROF.SHANTANU PRASAD offaculty in-charge of Marketing Management and other people whohelped, stimulating suggestions and encouragement helped us inall the time of research for and writing of this report. 5
  6. 6. OMEGAN SCHOOL OF BUSINESS, PUNESr.no Index Pg.No Table of Cover Content Title of project Certificate Acknowledgement Abstract1 Introduction 81.1 Objectives, Scope 14 And Limitation2 Main Text 162.1 Theoretical Concept 182.2 Data Collection 233 Conclusion 254 Finding & Suggestion 265 Appendices 285.1 Questionnaire 28 65.2 Data Analysis 306 Reference 40
  7. 7. OMEGAN SCHOOL OF BUSINESS, PUNEAbstract As a part of my MBA curriculum I am doing my internshiptraining at MOTHER DAIRY FOOD AND VEGETABLES PVT LTD.,PUNE. In this report I am going to share my ideas & work inthat company for the period of 60 days from 21.04.2009 to21.06.2009. During my internship my role was “ManagementTrainee – in Marketing & Sales marketing”. I was supposed to boost the sales of one of theaverage performing. Product of company like, milk and milkrelated products. As a part of this internship I had identified someproblems and provided some recommendations to the companyabout the idea of marketing & also about the personal selling. Mother Dairy, the wholly owned subsidiary of theNational Dairy Development Board, has recently introduced threevariants in the fresh milk category across Pune market. Apart fromthis, Mother Dairy also sells Cow milk in Pune. Initially, the milkwill be supplied to the city from Mother Dairy`s Vashi unit in NaviMumbai and once volume picks up and cross a 50,000-60,000 liter 7
  8. 8. OMEGAN SCHOOL OF BUSINESS, PUNEmark, it plans to have a unit in Pune. My work in that organization mainly consists of to meet theretailers and sell the product (Milk). Collect the data of existingcompetitor e.g. asking retailer what product he is selling reasonsto sell those products. To help in increase sale ratio of company.Tell the advantages of our product and what are the benefits ofretailer and customer will get. CHAPTER NO.1INTRODUCTION Mother dairy one of the largest liquid milk plant in Asia itstarted it operation in 1974 under the operation flood program ofthe National Dairy Development Board. Presently mother dairy sale more than 25 lakh liter of milkper day out of which approximately 9 lakh liters of milk it sold asbulk vended milk and other 16 lakh liter of milk is sold in sachetsin five different across six states including Mumbai. Mother Dairy, the wholly owned subsidiary of the National DairyDevelopment Board, has recently introduced three variants in thefresh milk category across Pune market. The variants launched include Full Cream milk, Tea Specialand Cow milk. According to Paul Thachil, CEO, dairy & foods,Mother Dairy Fruit and Vegetable Pvt. Ltd, Full Cream milk is thethickest, creamiest and tastiest milk available to the consumers inPune. This milk is ideal for families with children. Tea Special isformulated to give consumers an extremely tasty and special cupof tea. 8
  9. 9. OMEGAN SCHOOL OF BUSINESS, PUNE Apart from this, Mother Dairy also sells Cow milk in Pune.Initially, the milk will be supplied to the city from Mother Dairy`sVashi unit in Navi Mumbai and once volume picks up and cross a50,000-60,000 litter mark, it plans to have a unit in Pune. The company has organized a special consumer trialprogramme Creamier milk challenge in the case of Full Creammilk. In this programme, consumers can avail Full Cream milk for30 days by paying for only 25 days.AWARDS Mother Dairy has received "Best Productivity Performance"award for three consecutive years starting from 1987-88 to 1989-90 and again from 1995-96 to 1997-1998 from Nationalproductivity Council and a commendation Certificate for RajivGandhi National Quality Award, National Energy ConservationAward - 2004, Oil and Gas Conservation Award - 2004 and 2005,Indian Innovation Award - 2004 and Safety Initiative Award - 2005. 9
  10. 10. OMEGAN SCHOOL OF BUSINESS, PUNEPROCESSING OF MILK At mother dairy processing of milk is done through state ofthe art microprocessor technology which integrates andcompletely automates all function of milk processing and insurehigh product quality, reliability and safetyThe Various stages of milk processing are given below: • CLARIFICATION The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier spines the milk at very high speed, removing all dust particles that are invisible to the naked eye. • STANDERDISATION 10
  11. 11. OMEGAN SCHOOL OF BUSINESS, PUNE Milk from different breeds of cow and buffalos varies in its composition. Hence, to make milk uniform in composition it is standardized by raising or lowering its fat and SNF percentage to a desired level, so as to deliver the milk to consumer as per prescribed PFA norms.• HOMOGENIZATION In this process, the milk is subjected to very high pressure due to which the large fat globules present in milk are broken down in to tiny droplets. The Milk fat gets evenly distributed and milk appears whiter and thicker. Milk homogenized for consumer who do not like creamy lair on top. Homogenization increases the profitability of milk.• PASTEURIZATION In this process the milk is heated at 72c for 15 seconds and then it is rapidly cooled down to 4c. This process skill all the pathogenic bacteria present in the milk and it is safe for consumption. 11
  12. 12. OMEGAN SCHOOL OF BUSINESS, PUNEADDITION OF NEW PRODUCT In 1994 Mother dairy began diversifying into other valueadded milk Product Mother dairy offers a range of delicious flavorsof ice-creams to consumers at very competitive price in order tocater to the diversified need of the consumers Mother dairy hasalso launched other dairy products like flavored milk dahiLassi,MishtiDoim Ghe,Cheese Dairy Whitener Chach etc.and manymore are in the offing.MOTHER DAIRY LAUNCHES FRESH MILK IN PUNE Mother dairy markets approximately 2.8 million liters of milkdaily in the markets of Delhi, Mumbai, sauashtra and Hyderabadmother dairy milk has a market share of 66% in the brandedsector in Delhi where it sells 2.3 million liters of milk daily andundertakes its marketing operations through aroung 14,000 retailoutlets and 845 exclusive outlets of mother dairy. Mother Dairy, the Indian foods and Beverage Companylaunched its offering in the fresh milk category today in Pune. Thecompany announced three variants in the fresh milk category--fullcream milk, tea special milk and cow milk which will be availablein the retail market Sunday, 22 February onwards. Milk will be supplied to Pune from its existing Vashi unit inNavi Mumbai and once volumes pick up and cross a 50,000 to 60,000 liter mark it plans to have a unit in Pune. Alternatively, thecompany may tie up with some existing entity for packaging and 12
  13. 13. OMEGAN SCHOOL OF BUSINESS, PUNEother needs to supply to the Pune market. The tea special milkvariation is expected to give the company a first mover advantagein this particular segment which is priced at Rs 22 per liter whichis the same as cow milk. Whereas the full cream milk with a 6.8per cent fat content vis-à-vis 6.6 per cent in competitive brandswill be sold at a rate of Rs 28 for a liter. "The tea special variant exists in places like Saurashtra forbulk sale purposes but we are introducing this for the first time asa product for end-consumers. Our market study shows that thereis a high tea drinking population. I think we are the third or thefourth largest foods company in India and by the year-end of2008-2009 we should close our turn over at approximately Rs3300 crore. Our daily production of milk is close to 2.6 millionliters right now," said Paul Thachil, CEO, dairy and foods, MotherDairy Fruit & Vegetable Private Ltd. Mother Dairy sells its horticulture brands under the nameSafal and vegetable oil related products under Dhara. It hasaround 800 owned outlets for milk in Delhi. The vegetable andfruit outlets too exist in Delhi, which are 400 in number whileJaipur has 25, and Bangalore has 20 of them. After Pune, thecompany is eyeing Nagpur for further expansion before the end ofthis calendar year. Their current market share in fresh milk isclose to 10 per cent. Mother Dairy is a wholly owned subsidiary of the NationalDairy Development Board. Mother dairy has taken up the concept of Total ProductiveMaintenance (TPM) whole heartedly. The number of employeesinvolved in KAIZENS and the no. of KAIZENS per employee arevery encouraging. Mother Dairy is a member of CII-TPM Club andthe KAIZENS done by Mother Dairy employees have been selectedand presented in 2nd, 3rd, 4th, 5th and 6th National KaizenConferences held from time to time during the last three years.Our TPM efforts have resulted in increase in MTBF and decrease in 13
  14. 14. OMEGAN SCHOOL OF BUSINESS, PUNEMTTR, quality improvement, Cost reduction and reduction inaccidents.1.1 OBJECTIVE, SCOPE AND LIMITATIONOBJECTIVE 1. To study the impact of sales promotion activity on sale 2. To study the sales promotion programs on mother dairy. 3. To study the build and retain brand loyalty. 14
  15. 15. OMEGAN SCHOOL OF BUSINESS, PUNE 4 To study to introduce new product. 5. To study to attract new customer.SCOPE OF STUDY This study helps to understand the sales promotion policiesused by mother Dairy for marketing of milk in market with theprofitability. The study will help the management of mother dairy informing the future policies regarding sales promotion strategy.Through retailer sample survey conducted information aboutcurrent market situation. This study focuses on last two to threemonths. 15
  16. 16. OMEGAN SCHOOL OF BUSINESS, PUNELimitations • The biggest problem what I faced while completing my project was in sufficient time of retailer and customer. The time we needed to give the knowledge of our product to the customer and the actual time customer had. • The second problem what I noticed in that company was limited scheme i.e. company offers very limited number of schemes and limited timing for scheme, where people are looking for more schemes. • Limited Area was one of the disadvantages that I had to complete the project. The area that I had was very small and restricted to some limits. CHAPTER NO.2MAIN TEXTDIRECT SELLING PROCESS ADAPTED FOR CUSTOMERS Prospecting for evaluating the potential customer-It is a processof finding and evaluating potential customer. I identified if thepotential customer has the ability, willingness and authority to buythe product. 16
  17. 17. OMEGAN SCHOOL OF BUSINESS, PUNE 1) Generating leads- A sales lead can be in the form of an individual or an organization that might need or buy the company’s product. 2) Identifying organization- A prospect is a person In the organization that indicates need for a productApproach – In this stage I made an initial contact with the potentialcustomer and tried to find out his needs.Presentation – It is the most important stage in the sales process. The aimof my presentation is to attract the prospect’s attention, stimulatehis interest and stir a desire for the product, so that he takesappropriate action. The main aim is to communicate the product’sbenefits effectively to the prospect and convince him to purchasethe product. I not only spoke about the benefits the customer islooking for, but also convinced him about the additional benefitsof the product.Handling Objections- 17
  18. 18. OMEGAN SCHOOL OF BUSINESS, PUNE I clarified the doubts or objections that the customer had.Closing – In this stage I asked the potential customer to make thepurchase.Follow up – It was my last stage wherein I aimed to develop a long-termrelationship with the customer.2.1 THEORETICAL CONCEPTMarketing “The Process of planning and executing the conception,pricing promotion and distribution of ideas, goods and services tocreate exchanges that satisfy individual and organizational goal.” - American Marketing Association 18
  19. 19. OMEGAN SCHOOL OF BUSINESS, PUNE Marketing management is analysis planning, implementationand control of programs designed to create, build, maintainmutually beneficial exchanged and relationship with target marketfor the purpose of achieving organizational goal. -Philip KotlerSALES PROMOTION Sales Promotion refer to those activities (Other thanadvertising personal selling and publicity) which stimulate marketdemand for product through short term incentives which areessentially temporary and non recurring in nature sales promotiontechnique build bridge the product and the consumer. As an activity taken out to boost the sales of a product it caninclude a host of activities like running advertising campaign,handling public relation activity, distribution of free sample,offering free gifts, conducting trade fairs, exhibitions andcompetitions, offering temporary price discounts, launching doorto door selling and telemarketing.OBJECTIVES OF SALES PROMOTION The Main objective of sales promotion is to boost the sales ofa product by creating demand, i.e. both consumers demand aswell as trade demand. It improves the performance of the middleman and act as a supplement to advertising and personal selling.The Sales promotion also helps in achieving the following purpose- 1) Encourage the customers to try a new product. 19
  20. 20. OMEGAN SCHOOL OF BUSINESS, PUNE 2) Attract new customers. 3) Encourage the customers to use the product or service and make them brand loyal. 4) Counter a competitor’s promotional activities. 5) Increase the sales during the slack period. 6) To improve the public image of the firm and the product. 7) To provide the knowledge about productMETHOD OF SALES PROMOTION 20
  21. 21. OMEGAN SCHOOL OF BUSINESS, PUNE Method of Sales Promotion Point of Purchase Trade Show Free Sample Coupon Bonus Price cut Offer Contest Demonstration• Point of Purchase: 21
  22. 22. OMEGAN SCHOOL OF BUSINESS, PUNE Point of Purchase Consists of display & Demonstration of the Product at prominent place in local market, like Squash tea, Coffee, Soft Drinks etc.• Trade Show: It Consists of Display & Demonstration of product in a stall in Exhibition organized by the manufacturers & traders Associations.• Free Sample: This involves distribution of products/ services at free of Cost.• Coupons: A coupon is a certificate which entitles its holder to a specified saving discount or gift on the purchase of a particular product.• Bonus: A bonus is the offer of an article at no cost or at a very nominal price on the purchase of a specified product.• Price Cut offer: Price Cut offer is an Offer to get the Product at Price lower than the Normal Selling Price• Contests: Contest involve call for the consumer to submit an entry to be examined by a panel of judges who will select the best entries 22
  23. 23. OMEGAN SCHOOL OF BUSINESS, PUNE• Demonstration: It involves activities which enable the consumer to know howto make operational use of the product2.2 DATA COLLECTIONMEANING OF RESEARCH Research in common parlance refers to a search forknowledge. Once can also define as a scientific and systematicsearch for relevant information for specific topic. In fact, researchis an art of scientific investigation. The Advance Learner’s Dictionary of Current English laysdown the meaning of research as “a careful investigation orinquiry especially through search for new facts in any branch ofknowledge.” Redman and Mory define research as a“systematized effort to gain new knowledge.” Some people consider research as a movement, a movementfrom the know to the unknown. It is actually a voyage ofdiscovery. We all process the vital instinct of inquisitiveness for,when the unknown comforts us, we wonder and ourinquisitiveness makes us probe and attain full and fullerunderstanding of the unknown. 23
  24. 24. OMEGAN SCHOOL OF BUSINESS, PUNESIGNIFICANCE OF RESEARCH “All progress is born of inquiry. Doubt is often better thanoverconfidence, for it leads to inquiry, and inquiry leads toinvention” is a famous Hudson Maxim in context of which thesignificance of research can well be understood. Increasedamounts of research make progress. Research inculcates scientificand inductive thinking and it promotes the development of logicalhabits of thinking and organization. The role of research in several fields of applied economic,whether related to business or to the economic as a whole, hasgreatly increased in modern times. The increasingly complex nature of business and governmenthas focused attention on the use of research in solving operationalproblems. Research, as an aid to economic policy, has gainedadded importance, both for government and business.Seven major steps in research process  Determine the problem or opportunity.  Specify what information is needed.  Identify the source of information.  Decide the technique for acquiring the information. 24
  25. 25. OMEGAN SCHOOL OF BUSINESS, PUNE  Gather and process the information.  Analyze and interpret the information.Collecting the data In dealing with any real life problem it is often found that dataat hand are inadequate, and hence, it becomes necessary tocollect data are appropriate. There are several ways of collectingthe appropriate data which differ considerably in context of moneycosts, time and other resources at the disposal of the researcher.PRIMARY DATABy Interview: This method implies the collection of information byinterviewing, shopkeepers. The information obtained relates towhat is currently happening and is not complicated by either thepast behavior or future intentions or attitudes of respondents.SECONDARY DATA Secondary data was collected through magazines, Pampalate, Book late and data from websites.Sample Area:- The sample area selected for the project was mother dairyRetail Store, Pimpari ChinchwadSample Space:- The total sample space for my questionnaire part was 50Data Collected from the Manager at the Store: - 25
  26. 26. OMEGAN SCHOOL OF BUSINESS, PUNECompetitors:- Chitale, Gokul, Katraj, Amul CHAPTER NO.3CONCLUSION From this 60 days experience in a corporate, I got a goodexposure about what really the corporate life is about. It’s wakingalong with targets and mind stresses every morning. The personwho can manage these target and stress are shining in thosefields. I personally think that marketing is not everyone’s cup of teabut if one set his target high and continuously strive towards that,nothing is impossible. The only thing required in our field is theright attitude or a positive attitude towards attainingOne’s goal. By going 60 days in to company I came to know variousthings about the organization, employees, customers, workers,and about the marketing field. Company is doing direct sellingwith the help of two managers. All the employees are also happy from last 35 fromour company because company is providing lots of facilities to theemployees, they had taken all the employees on the permanentbasis in that time, but thing is that till this time they are not givinglay off, or early retrenchment in recession also. So we are gettinggood production i.e. product whatever & whenever we want it. The other thing is that we reached to the customerexpectation in regarding to the product quality, price, andtimelineness of the order, so the clients of company are going toincrease, the marketing dept performing good role with all theclients. 26
  27. 27. OMEGAN SCHOOL OF BUSINESS, PUNE I realized the deficiency of co –ordination, but the companyis right now working on that problem, & I hope this problem willcome under control in forthcoming days. CHAPTER NO.4FINDINGSThe findings of the project are as follows:  The data I have collected 80 % of the customer are agreed on the sales promotion strategies applied by mother dairy.  Sales promotion strategy levels of mother Dairy are better than other competitors in the market as per data collection.  Good quality is preferred than the price nowadays, that’s what people are choosing mother dairy now days without caring prices.  Many players have entered into this industry so options widens for the customers. Hence brand loyalty is affected. 27
  28. 28. OMEGAN SCHOOL OF BUSINESS, PUNE  The availability of the milk products also affects the market for e.g. milk powder.SUGGESTION 1. The time difference is more between product promotion and launching the product in the market than the estimated time. 2. The number of schemes related to the product are more to the distributors and retailers as compare to customer, where as more schemes given to the customer can add the total sales and the total revenue. 3. For better selling provide the new promotional strategies of the product. 28
  29. 29. OMEGAN SCHOOL OF BUSINESS, PUNE CHAPTER NO.5APPENDICES5.1 QUESTIONNAIRE 1. Why you had specifically chosen mother dairy only? a) Quality c) Price b) Brand d) Other 2. Are you satisfied with sales promotion strategies offered by Mother Dairy? a) Yes b) No 3. According to you which offer is useful for you? a) Discount c) Coupons b) Other 4. How do you grade them according to their sales promotion activity? a) Poor b) Fair 29
  30. 30. OMEGAN SCHOOL OF BUSINESS, PUNE c) Average d) Good 5. Till what extend does bonus scheme attract you to purchasethe product? a) Completely b)Average b) Never d)Other 6. Have they provided you price cut offer during festiveseason? a) Yes b)No 7. Which medium of advertising is most powerful? a) Press advertising b) Radio Advertising c) Television advertising d) Other 8. What are you looking more different in our product? a) More Quality b) More Quantity c) Other 9. Did you get any kind of Demonstration of the product from ourcompany? a) Yes b) No 30
  31. 31. OMEGAN SCHOOL OF BUSINESS, PUNE 10. Does point of purchase is helpful for you? a) Yes b) No5.2 DATA ANALYSISReason Of selectionReason Of selection RespondentQuality 22Brand 12Price 11Other 05 31
  32. 32. OMEGAN SCHOOL OF BUSINESS, PUNESatisfaction of Sales Promotion Satisfaction of Sales Respondent Promotion Yes 36 No 14 32
  33. 33. OMEGAN SCHOOL OF BUSINESS, PUNEWhich offer is useful?Which offer is useful RespondentDiscount 27Coupon 17Other 06 33
  34. 34. OMEGAN SCHOOL OF BUSINESS, PUNEGrading according to sales promotion ActivityGrading According to sales Respondentpromotion ActicityPoor 02Fair 08Avrage 17Good 23 34
  35. 35. OMEGAN SCHOOL OF BUSINESS, PUNEExtent of Attraction by bonus LevelExtent of Attraction by bonus RespondentLevelComplete 17Average 13Never 20 35
  36. 36. OMEGAN SCHOOL OF BUSINESS, PUNEExercised Price Cuts during Festive OffersExpericed Price Cuts During RespondentFestive OffersYes 30No 20 36
  37. 37. OMEGAN SCHOOL OF BUSINESS, PUNEEffective Medium of AdvertisementEffective Meadium of RespondentAdvertisementPress Advertising 07Radio Advertising 14Television Advertising 25Other 04 37
  38. 38. OMEGAN SCHOOL OF BUSINESS, PUNECustomer Expectations Regarding the ProductCustomer Expectations RespondentRegarding the ProductMore Quantity 25More Quality 20Other 05 38
  39. 39. OMEGAN SCHOOL OF BUSINESS, PUNEReceived Demonstration about productReceived Demonstrationabout productYes 36No 14 39
  40. 40. OMEGAN SCHOOL OF BUSINESS, PUNEPoint of PurchasePoint of Purchase Responden tYes 31No 19 40
  41. 41. OMEGAN SCHOOL OF BUSINESS, PUNE CHAPTER NO.6References I got all the information regarding the study of productanalysis & corporate selling with written proofs from the followingreferences.Books: Business studies by P.C. Tulsian Marketing management by Philip kotler 41
  42. 42. OMEGAN SCHOOL OF BUSINESS, PUNEWebsites:Pamphlet: www.motherdairy.com 42