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ROLE

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Chapter-1

INTRODUCTION
Objective of the study The globalization of world economy and the consumer

awareness towards product features & quality.Now, the consumer is changing brand loyality at fast rate than in the past. This leads to fluctuation in the market share of multinational companies, the market leader of one time is now straggling for survival in the market. • Maruti Udyog Ltd., A joint venture between

Government of India an Suzuki Motor corporation of Japan, had market share of 82% in 1999’s in the passenger car market and now have 56% only due to consumer awareness of other models. Hyundai,. Cielo, FIAT etc. Therefore in order to survive in the market and show their presence to customer, the MNC’s are increasingly using Promotional Strategies to enhance their sales and

distribution function. In general, the Promotional Strategy include all the

activities the MNC’s under takes to communicate and promote its products to the target market.

DPC INSTITUTE

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MANAGEMENT, NEW DELHI

ROLE

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PROMOTIONAL STRATEGIES

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SALES

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DISTRIBUTION MANAGEMENT

The

communication

part

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done

with

the

help

of

advertisement campaign involving electronic, print media etc. MNCs have full-fledged advertising department who takes care of communication part. On the other hand ,the Promotional part is done with the help of “Vehicle” which is used as carrier of product to target market. This vehicle may be product of same MNC’s or other MNC’s. Further the various kind of Promotional Tools used in the sales promotion are : 1. Trade off 2. Center off 3. Rebates 4. Warranties 5. Gifts 6. Contests The “Contest” as Promotional tool of ‘Vehicle’. The”Vehicle” is generally defined as fast moving product having significant market presence or enjoying healthy share in the market demand. is used with the help

DPC INSTITUTE

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MANAGEMENT, NEW DELHI

ROLE

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DISTRIBUTION MANAGEMENT

e.g., Reckitt Benckiser (India) Ltd. (RBI) ,for Promotional strategy for Robin liquid blue : Vehicle = Dettol soap Promotion Product = Robin Blue (2-in-1) liquid Thus, the Robin liquid blue in reaching to target customer via Dettol soap vehicles.

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ROLE

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PROMOTIONAL STRATEGIES

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SALES

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DISTRIBUTION MANAGEMENT

Type of Vehicle The following types of vehicle are used in the Promotional strategies: 1. One company agrees to carry a promotion for another company’s product or service e.g., McDonald’s teamed up with Disney to offer Mulan figurines to people buying its burger. 2. A company chooses / selected high market demand product from its product range ,for promotion of new product, e.g., RBI selected Dettol soap a fast moving product to market Robin liquid blue as promo offer. 3. A company chooses / selected, products from its range and market along with free gift offer. e.g. Hindustan Lever Limited (HLL), (a) Close-up bottle. (b) Ponds Magic with free vanity box. In the present study, how contest and gifts as promotional tools enhances the sales volume / turnover and market research study on the Reckitt Benckiser (India) Ltd. Dettol soap Suraksha, Kapda aur Makan contest involving free Robin liquid blue. Toothpaste with free plastic fridge

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MANAGEMENT, NEW DELHI

ROLE

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PROMOTIONAL STRATEGIES

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SALES

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DISTRIBUTION MANAGEMENT

2. Scope of the study The present study concern to the following 1. Why MNC’s are employing promotional strategies as the sales and distribution tool. 2. How promotional strategies influence the market share of given product. 3. What stages of PLC are preferred for the promotional studies?

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thus includes analysis. organizing . target market. The importance of the sales and distribution function varies across organizations depending upon its nature and variety of products. The exchange process i. the sale and delivery of management as comprises well as management of institutions physical distribution good/services from the manufacturer to the consumer can be consummated directly i.. Distribution channel functions.e. Sales and distribution management Sales and distribution management constitutes one of the most important parts of marketing management. planning. “Exchange” is the core.e.directing and controlling of the company’s sales effort. consumer density and dispersion DPC INSTITUTE OF MANAGEMENT. selling through extra corporate organizations which form the distribution network of the firm. The sales management task .. “Sales management” has been defined as the management of a firm’s personal selling function while “Distribution” is the management of the indirect selling effort i. aspect of marketing and it is the sales and distribution management which facilitates it.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Chapter-2 SALES AND DISTRIBUTION MANAGEMENT (A).. by the firm itself through its own sales.e. NEW DELHI .

Actual transfer of possession i.Finding and communicating with prospective buyer b) Prospecting . Except for extreme instances of organizations which make exclusive use of either their own sales force or distribution channels.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT and the competitive practices among other things. a) Contact . and his satisfaction-generating potential. d) Promotion .Reaching an agreement on price transaction and other terms of the offer so that ownership and possession can be transferred. the following essential tasks need to be performed in order to consummate successful exchange.Of the marketers offerings. e) Physical Distribution f) Collection . Notwithstanding. timely and safe delivery .Bringing together the marketers offering and the prospective buyer c) Negotiation and . externally or jointly. most organizations get the above functions performed through a combination of their own sales force and the distribution net work they choose to hire. A major DPC INSTITUTE OF MANAGEMENT.Of relevant consumers information and revenue in exchange of goods or services. NEW DELHI . whether the sales and distribution function is organized internally.e.

As both the sales and distribution functions are simultaneously performed to accomplish the firm’s sales objectives their dependence on each other for the effective attainment of overall marketing goals becomes obvious. certainly management philosophy towards control. b) The decision of the organization to allocate certain responsibility in the exchange process to its channel members would define the scope of responsibility of its DPC INSTITUTE OF MANAGEMENT. frequency of purchase and customer of concentration) target preference and and buying the practices the customers. (including market size. The interdependence of sales & distribution functions are well established as under: a) All organizations use their own sales force or distribution network to reach out to their customers. In other words. The determinants of task allocations are: competitive practice. product and market requirements. activities of the sales organization would have to be coordinated with channel operations if sales goals have to be effectively realized. Very few firms (unlike say Brooke Bond) use their own sales force to reach upto the retail level). NEW DELHI . The emerging practice is to use own sales force to sell to wholesalers/ semiwholesalers who in turn sell to retailers.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT decision in sales and distribution therefore becomes the judicious allocation of the above tasks between the sales force and channel members.

Marketing through channels implies lower degree of control but would also mean lesser funds tied up in maintaining inventory and lower fixed and variable costs of managing the channels. Since the requirements of each of the above types of first level contact entities are different from that of the other.e. flexibility. Depending upon it own set of variables the organization would try and optimize the effectiveness of the exchange process through the use of some combination of the two. c) Even though. an organization may decide to deal directly with its wholesaler. distribution) would define that of the other (sales management). it is required to decide upon the type of help it will provide to the first and subsequent level of intermediaries. NEW DELHI .ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT own sales force and thereby would determine the type of personnel and training required. the company’s sales task would have to be defined in context of first level of contact chosen by it. retailer or consumer. Necessarily then the scope of one (i. indirect distribution or a combination of the two is of strategic importance and depends upon factors such as the degree of control. costs and financial requirements etc. DPC INSTITUTE OF MANAGEMENT. d) The choice before an organization to have direct distribution. semiwholesaler.

SALES MANAGEMENT – FORMULATION OF SALES STRATEGY The sales management function. The effective functioning of dealersales organization relationship often becomes the key to successful working operations within the organization. the sales organization is the initiator as well as the implementor of these dealer support operations. sales volume and return on investment. This would mean that the sales management has the responsibility of structuring organizational relationship within their own department and with interacting organizational entities so that the sales task can be performed and co-ordinated with the overall marketing goals. point of purchase promotion. DPC INSTITUTE OF MANAGEMENT. local advertising. NEW DELHI . in-store displays. With in the corporation.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT e) To implement overall need the marketing cooperation strategy. Sales managers are entrusted with the task of organizing. planning and implementing the sales effort so as to achieve corporate goals related to market share. as noted earlier comprises the management of the sales personnel and activities that make up the corporate sales effort. The task involves the sales manager in a set of activities both within the organization and outside with other organizations. of the manufacturers distribution outlets in terms of adequate stock maintenance.

NEW DELHI . and also promotion and feedback is facilitated. Recruitment and training procedures f. Task allocation upon type and quality of sales personnel g. Determination of the size of the sales force c. Deciding required b. Embodiment of all these functions can be seen in the development of sales strategy which often proves vital to the success of the organization. It also includes allocating and operationalising the sales effort among the sales personnel.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Within the organization he has the responsibility of structuring relationships both within his own department and with interacting organizational entities so that the sales task can be coordinated with other marketing tasks and performed effectively. Outside the organization. Compensation of sales force DPC INSTITUTE OF MANAGEMENT. Key decision areas in sales management which are particularly relevant to strategy formulation are: a. Territory design e. his task would include developing and maintaining channel relationships effectively so that the flow of goods and service. Organization and design of the sales department d.

Economic . NEW DELHI . Strategy formulation in case of sales would involve identification of the sales goals and designing of a gameplan. The above decisions give a fair idea of the scope of the sales management function. using the organizational resources at hand. Market analysis Step 2 Define sales management objectives in terms of delivering these outputs both quantitative and qualitative. Step 3 Design sales strategy by deciding upon DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT h. Coordination with other Marketing department. Feedback mechanism to be adopted Managing channel relationship k. Macro Environment Analysis : Social . to achieve those goals. j. Assessment of the competitive situation and the corporate goals to determine the output that sales management is expected to give 3. Step 1 1.Technology 2. Performance appraisal and control system i.Political.

ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT 1. Territory design 5. Type of sales effort required 2. Type of sales personnel required 3. Channel support and coordination DPC INSTITUTE OF MANAGEMENT. Size of the sales force 4. NEW DELHI .

Each promotional tool has its own unique characteristics – The ‘Advertising’ concerns with public presentation. and 4. Personal selling. Advertising 2. & response. In last. ability to catch buyers off guard. Invitation while the public relation concern with high credibility.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT THE PROMOTIONAL TOOLS/STRATEGIES The main motive of promotional tools is to communicate and promote the product to the target market. The ‘Sales Promotion’ concern with communication. Sales promotion 3. amplified expressiveness and impersonality. it is shown as follows – DPC INSTITUTE OF MANAGEMENT. PublicRelation. dramatization. Out of all the four tools. Incentive. The various promotional tools are – 1. cultivation. pervasiveness. the relative spending on sales promotion is maximum while in public relation is minimum. For consumer goods. NEW DELHI . the personal selling concern with personal confrontation.

the logistics play an important role. (C) LOGISTICS MANAGEMENT (An aid to physical distribution function. NEW DELHI . DPC INSTITUTE OF MANAGEMENT. In the distribution function.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Consumer goods Sales promotion Advertising ===== DIAGRAM======== Personal selling Public relations Relative spending The present study is concern with the Sales Promotion and Market Research to evaluate. the impact of sales promotion on the sales and distribution function.) The process of getting goods to customers has traditionally been called physical distribution.

and controlling the physical flows of materials and final goods from point of origin to point of use to meet customer requirement at a profit. who is the customer? For Logistics.” DPC INSTITUTE OF MANAGEMENT. which is shown in the following figure: Logistics providing contributes customers to with an organization’s and success by timely accurate product delivery. Recently. implementing. the customer is any delivery destination. Inventory Flow Supplier Procurement Manufacturing export Physical distribution Customers Information flow (Supply Chain Management) “Logistics involves planning. The key question is. NEW DELHI . physical distribution has been expanded into the broader concept of ‘Supply-Chain Management’ which is called logistics. Managers choose a set of warehouse (stocking points) and transportation carriers that will deliver the goods to final destination in the desired time or at the lowest total cost. Typical destination range from customer’s homes to retail and wholesale businesses to the receiving docks of a firm’s manufacturing plants and warehouse.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The physical distribution starts at the factory.

3. which in turn. NEW DELHI . purchasing. 4. Thus. DPC INSTITUTE OF MANAGEMENT. and human financial. growth. Products have a limited life. strategies in each stage of their life cycle. Logistics is one of these key competencies that can be developed as a core strategy. This curve is typically divided into four stages: introduction. problems to the seller. distinct stages. Products require different marketing.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT To implement a marketing strategy it is essential to view all activities relted to the process of gaining and maintaining customers. To the extent that a firm builds its competitive advantage is on logistical competency. (D) PRODUCT LIFE CYCLE To say that a product has a life cycle is to assert four things: 1. 2. Product posing sales pass through challenges. Most product life-cycle curves are portrayed as bellshaped (Figure ). resource manufacturing. logistics plays an important role in the Promotional Strategies. Profits rise and fall at different stages of the product life cycle. and decline. maturity. also influences the sales and distribution function. each and different opportunities.

sales growth tends to be slow at this stage. Much money is needed to attract distributors. (2) induce DPC INSTITUTE MANAGEMENT. technical problems. Profits are negative or low in the introduction stage because of low sales and heavy distribution and promotion expenses. 3.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT 1. Buzzell identified several causes for the slow growth: delays in the expansion of production capacity. MARKETING STRATETIES : INTRODUCTION STAGE Because it takes time to roll out a new product and fill dealer pipelines. and customer reluctance to change established behaviors. 2. Profits are non existent in this stage because of the heavy expenses incurred with product introduction. Decline: The period when sales show a downward drift and profits erode. Maturity: A period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. NEW DELHI OF . Profits stabilize or decline because of increased competition. Growth: A period of rapid market acceptance and substantial profit improvement. Promotional expenditures are at their highest ratio to sales because of the need to (1) inform potential consumers. delays in obtaining adequate distribution through retail outlets. 4. Introduction: A period of slow sales growth as the product is introduced in the market.

technological problems in production.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT product trial. 1. and (3) secure distribution in retail outlets. Slow skimming: Launching the new product at a high price and low promotion. most of the market is aware of the product. This strategy makes sense when the market is limited in size. 3. distribution. and high required margins to support the heavy promotional expenditures. and the firm faces potential competition and wants to build brand preference. marketing management can set a high or a low level for each marketing variable (price. Rapid penetration: Launching the product at a low price and spending heavily on promotion. those who become aware of the product are eager to have it and can pay the asking price. usually higher-income groups. management can pursue one of four strategies. Considering only price and promotion. This strategy makes sense when a largepart of the potential market is unawareof the product. Rapid skimming: Launching the new product at a high price and a high promotion level. In launching a new product. Firms focus their selling on those buyers who are the readiest to buy. product quality). This strategy makes DPC INSTITUTE MANAGEMENT. buyers are willing to pay a high price. promotion. and potential competition is not imminent. Prices tend to be high because costs are high due to relatively low output rates. 2. NEW DELHI OF .

ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT sense when the market is large. This strategy makes sense when the market is large. attracted by the opportunities. During this stage. 4. there is strong potential competition. is price sensitive. and the unit manufacturing costs fall with the company’s scale of production and accumulated manufacturing experience.e. most buyers are price sensitive. products of different sizes. Slow penetration: Launching the new product at a low price and low level of promotion. They introduce new product features and expand distribution. NEW DELHI . flavors. the market is unaware of the product. is highly aware of the product. the firm uses several strategies to sustain rapid market growth as long as possible: • It improves product quality and adds new product features and improved styling. DPC INSTITUTE OF MANAGEMENT. and additional consumers start buying it. Early adopters like the product.. New competitors enter. and there is some potential competition. • It enters new market segments. MARKETING STRATEGIES: GROWTH STAGE The growth stage is marked by a rapid climb in sales. and so forth that protect the main product). • It adds new models and flanker products (i.

This stage normally lasts longer than the previous stages. and customers begin switching toother products and substitutes. and the product will enter a stage of relative maturity. The maturity stage divides into three phases: growth. and decaying maturity. Most products are in the maturity stage of the life cycle. In the third phase.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT • It increases its distribution coverage and enters new distribution channels. decaying maturity. • It lowers prices to attractthe next layer of price-sensitive buyers. Most potential consumers have tried the product. the rate of sales growth will slow. DPC INSTITUTE OF MANAGEMENT. thesales growth rate starts to decline. In the first phase. NEW DELHI . and future sales are governed by population growth and replacement demand. and posses formidable challenges to marketing management. the absolute level of sales starts to decline. There are no new distribution chanels to fill. stable. In the second phase. • It shifts from product-awareness advertising to productpreference advertising. sales flatten on a per capita basis because of market saturation. and most marketing managers cope with the problem of marketing the mature product. MARKETING STRATEGIES: MATURITY STAGE At some point.

watches. including market specialists. Yet they may be ignoring the high potential manymature markets and old products still have. NEW DELHI OF . Dominating the industry are a few giant firms—perhaps a quality leader. which leads to intensified competition. A shakeout begins. Competitors scramble to find niches. television. and a cost leader—that serve the whole market and make their profits mainly through high volume and lower costs. Surrounding these dominant firms are a multitude of market nichers. a service leader. They increase R&D budgets to develop product improvements and line extensions. In the maturity stage. They engage in frequent markdowns. The issue facing a firm in a mature market is whether to struggle to become one of the “big three” and achieve profits through high volume and low cost or to pursue a niching stragegy and achieve profitsthrough low volume and a high margin. product specialists. cameras—were proved DPC INSTITUTE MANAGEMENT. motorcycles. Many industries widely thought to be mature—autos.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The sales slowdown creates overcapacity in the industry. and customizing firms. They make deals to supply private brands. some companies abandon weaker products and concentrate on core profitable products and on new products. and weaker competitors withdraw. They increase advertising and trade and consumer promotion. The industry eventually consists of well-entrenched competitors whose basic drive is to gain or maintain market share.

through the exercise of marketing imagination. and they may cut their promotion budget and reduce their prices further. MARKETING STRATEGIES: DECLINE STAGE The sales of most product forms and brands eventually decline. and increased domestic and foreign competition. who found ways to offer new values to customers. or they may petrify at a low level. as in the case of the Edsel automobile. and profit erosion. most companies have not developed a wellthough-out policy for handling their aging products. shifts in consumer tastes. Sales may plunge to zero. increased price cutting. Sales decline for a number of reasons. products Those remaining They may reduce the number of they offer. DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT otherwise by the Japanese. may withdraw from smaller market segments and weaker trade channels. All lead to overcapacity. NEW DELHI . some firms withdraw from the market. The decline might be slow. including technological advances. Ovaltine. nearly forgotten brands. as in the case of oatmeal. or rapid. and Arm & Hammer baking soda have achieved major sales revivals severaltimes. As sales and profits decline. Seemingly moribund brands like Jell-O. Unfortunately. The resurgence in Hush Puppies’ popularity in the footwear category is a case study in reviving old.

analysis. Marketing research firms fall into three categories: • Syndicated-service research firms: These firms gather consumer and trade information. Companies normally budget marketing researchat 1 percent to 2 percent of company sales. SAMI/Burke. A large percentage is spent buying the services of outside firms. Most large companies have their own marketing research departments.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT MARKET RESEARCH SYSTEM Marketing research is the systematic design. NEW DELHI . Small companies can hire the services of a marketing researchfirm or conduct research in creative and affordable ways. such as: • Engaging students or professors to design and carry out projects • • Using the Internet. Examples: Nielsen Media Research. A company can obtain marketing research in a number of ways. collection. and reporting of data and findings relevant to a specific marketing situation facing the company. which they sell for a fee. DPC INSTITUTE OF MANAGEMENT. Checking out rivals.

They design the study and report the findings. • Specialty-line marketing research firms: These firms provide specialized research services. which sells field interviewing services to other firms. NEW DELHI . DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT • Custom marketing research firms: These firms are hired to carry out specific projects. The best example is the field-service firm.

They must also decide which research approach (observational. In addition.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT THE MARKETING RESEARCH PROCESS Effective marketing research involves the five steps shown in Figure Define the Problem and Research Objectives Develop the Research plan. DPC INSTITUTE OF MANAGEMENT. they must decide on a sampling plan and contact methods. or experimental) and which research instrument (questionnaire or mechanical instruments) to use. firms must decide whether to collect their own data or use data that already exist. NEW DELHI . behavioral data. Collect the Information Analyze the Information Present the Findings (The marketing research process) In conducting research. focus-group. survey.

GreenPark. namely Vasant Kunj. The researcher does not manipulate the variable or arrange for events to happen. Robin Liquid of M/s Reckitt – Benckiser(India) Ltd be distributed. The present study uses ‘Questionnaire’ as the survey tool. surveys are only concerned with condition or relationship that exist.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Chapter-3 RESEARCH METHODOLOGY 1. Further. SURVEY METHOD: Survey methods are concerned with describing. In the present study. Kalkaji. how a new product. the RBI chooses the same target segment as that of Dettol Soap. where research purpose is – (i) How should a new product be distributed? (ii) (iii) What should be the target segment? How should our product be changed? Eg. The RBI is using Dettal Soap Suraksha Kapda aur Makan offer to promote Robin Liquid. DPC INSTITUTE OF MANAGEMENT. Surveys are conducted in case of descriptive research studies. Sarai Kale Khan etc. analyzing and interpreting condition that either exist or existed. recording. NEW DELHI . Gobindpuri. which covers the consumers of south Delhi. Safdarjung Enclave.

The primary data are these which are collected afresh and for the first time and thus happens to be original in nature. NEW DELHI . b) Secondary Data: DPC INSTITUTE OF MANAGEMENT. While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data. The secondary data. 2 Question are related to personal details and rest are concerned with the Dettol Soap Promotional offer. Viz. In the present study. out of 14. Sample size = 50 Sen Ratio (M : F) = 5 :1 2. on the other hand. the following techniques are used – a) Primary Data: It is collected through face to face interview while filling up questionnaires. ‘METHODS OF DATA COLLECTION’ The task of data collection begins after a research problem has been defined and research design chalked out. are those which have already been collected by someone else and which have ready been passed through the Statistical process.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The Questionnaire contain 14 Nos of close ended Question. primary and secondary.

DPC INSTITUTE OF MANAGEMENT. NEW DELHI . Newpapers etc that formed the secondary data.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Relevant information was gathered from magazines.

Sampling may enable more accurate measurement for a sample study. but due to incompletely filled questionnaires and unwillingness DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT c) Communication Approach : Face to face interviews was taken as the communication approach since it is a letter method in case where slight probing is required. it is the process of obtaining information about an entire population by examining only a part of it. In most of the research work & surveys. 3. SAMPLING Sampling may be defined as the selection of same part of an aggregate or totality on the basis of which a judgement or inference about the aggregate or totality is made In other words. NEW DELHI . Sampling can save time & money. 2. Sampling remain the only way when population contain infinitely many members Sample Size A sample size of ______80_______ customer was chosen. Need for Sampling – 1. 3. theusual approach happens to be to make generalization or to draw inferences faced on samples about the parameters of populationfrom which the samples are taken.

The questioning process was face to face interview and the questionnaire was designed in Such a way that it could be understood and answered easily by the respondents. well structured formalized schedule to obtain and record specified and relevant information with fair accuracy and completeness. Since some of the question were probing in nature and required answers on the basis of memory of the respondent. The questionnaire questions. Sampling Technique Disproportionate stratified random sampling technique has been used in sampling due to the following reasons: 1. 2.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT and carelessness on the part of the respondent. This sample size was based upon time & affordability approach. We are forced to reduce the sample size to ______50_____ . Keeping these DPC INSTITUTE MANAGEMENT. QUESTIONNAIRE DESIGN The questionnaire used was a printed. In such type of question there is a risk that the respondent will answer whatever comes to their minds. It provides help in gaining precision through stratification. The close ended question were dichotomous and multiple choice in nature. thereby reducing the impact of the study. NEW DELHI contained both close and open ended OF . It provides information about parts of the universe.

the less accurate the reporting.).ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT consideration in mind. Suraksha. In this contest. Since it has been found that the longer the reporters period. the RBI is promoting new product. Kapda aur makan contest” (Mkt by : M/s Reckitt Benckiser (India) Pvt. In the present study. the Question is design for “Dettol Soap. Firstly the period of time in which respondent were asked to respond was reduced. NEW DELHI . Ltd. ‘Robin Liquid Blue’. DPC INSTITUTE OF MANAGEMENT.

How many Dettol Soap you use per month :  One  Two  Three  Four & more 4. Why you prefer Dettol Soap over other ? 3. NEW DELHI .ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT QUESTIONNAIRE 1. Who influence you to purchase the Dettol Soap: DPC INSTITUTE OF MANAGEMENT. are you using Dettol Soap:  6-month  1-yrs  2-year  More than 2-years 5. Which both soap do you use ?  Dettol  Lux  Life-Boy plus  Other 2. For how long.

Do you aware of Dettol Soap contest in the market ?  Yes  No 8. you come to know about Dettol Soap Contest :  T. of time you use Dettol Soap in a day:  One  Two  Three 7. NEW DELHI . No.  Newspaper/Magazine  Radio  Other DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT  Family  Doctor  Advertisement  Self  Other 6.V. By which source.

Relatives etc. Do you prefer to buy surplus quantity. Neighbours. Personal Details : Sex : Male / Female Age :  17-22  23-28 DPC INSTITUTE OF MANAGEMENT. Friends. NEW DELHI .  1-Promo Pack Extra  2-Promo Pack Extra  3-Promo Pack Extra  4-or more Promo Pack Extra.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT 9.  Yes  No 11. Do you like to convey Dettol Soap contest messages to others viz. 10. Do you go for Dettol Soap Promo Pack than conventional one –  Yes  No 10Since Promo Offer is valid for Limited period.

000 – 1.50.000  1. NEW DELHI .50.000  3.000 – 2. 13.20.000 – 3. DPC INSTITUTE OF MANAGEMENT.000  2.20.50.000  60.50.000 and above.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT  29-34  above 34 12. Occupation : Annual Income (Family) :  Less than 60.

Are allergic to characteristics fragrance of Dettol soap? 2.4 DISCUSSION AND ANALYSIS OF RESULTS 1.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Chapter. Which bath Soap do you use ?  Dettol  Lifebouy plus  Lux  Others RESPONSE: 40 consumer out of 50 are regular user of Dettol soap. ANALYSIS The non-user of Dettol Soap are due to the following reasonsHigh MRP of Dettol soap than conventional soap of other leading brand. Why you prefer Dettol Soap over others? Response DPC INSTITUTE OF MANAGEMENT. 5consumers are part-time users. NEW DELHI . Specially during summer month & rest 5 are non-user.

of adult consumer in the family. and the large or joint families are using four or more soaps per month. How many Dettol soap(s). of adult members in the family rises. DPC INSTITUTE OF MANAGEMENT. NEW DELHI . Analysis The consumption of Dettol soap is directly proportional to no. you use per month? One Two Three Four or more. It kills germs from skin. thus provide full protection to body ? Any kind of wounds/ cuts automatically get antiseptic theraphy. study. 3. than Dettol soap consumption per month is also increasing.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The consumers prefer Dettol Soap because of the following unique features – It is anti-septic in nature. It gives more after-bath freshness than other soap. From above. The small family comprising of parents + kids are using 3-soap per month. as the no. Response The Bachelor’s consumer are using 1-2 soap per month.

4. NEW DELHI . are you using Dettol Soap? 6-month 1-year 2-year 2-years or more DPC INSTITUTE OF MANAGEMENT. For how long.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The Research reveals that average consumption is three Dettol soap per month per family in metro city of Delhi.

ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Response The Dettol soap usage varies with season. Who influence you to purchase the Dettol soap? Family Doctor Advertisement Others Response 40% respondents use Dettol soapon Doctor advice. Rest get influenced by advertisement. Analysis Some people have skin problem and needs more cleanliness of skin. Analysis The all walk of working people belonging to middle class & upper middle class are regular user of Dettol soap for one to two years. 30% on the family influence and 20% influenced by the advertisement. 6. Especially in the summer month. the Dettol soap users are 70% while in winter it reduces to 55%. No. NEW DELHI . of times you use Dettol soap in a day? One Two DPC INSTITUTE OF MANAGEMENT. thus doctors advise them to use Dettol for daily bath and constitute bulk of customers. family etc. 5. which is 40%. specially on cable channels etc.

NEW DELHI .ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Three Four DPC INSTITUTE OF MANAGEMENT.

Sony etc as the advertising vehicle. The RBI doesn’t prefer print media or Road side publicity through Banners. Analysis The RBI. Thus. maybe due to pre occupation with work or other engagement. Newspaper Radio DPC INSTITUTE OF MANAGEMENT. 50% consumers are not aware of this contest because they aren’t regular viewer of cable channel. NEW DELHI . 8. Star Plus.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Response In general.V. choose cable channels viz. 7. you come to know about Dettol soap contest. Do you aware of Dettol soap contest in the market? Yes No Response 50% consumers are aware of contest & the remaining 50% doesn’t. the consumer uses Dettol soap twice a day. T. boards etc. By which source. marketer of Dettol soap.

specially in the print media. Suraksha). ANALYSIS In general. 9. Specially Dettol Soap Suraksha. Rest come to know via friends. Kapda aur Makan Contest becauseThe use of Dettol soap protect (i. their skin from germ etc. DPC INSTITUTE OF MANAGEMENT. relatives or shopkeepers.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Others Response 70% consumers specially ladies & kids come to know about the contest by cable T.e. Analysis RBI introduces Dettol Soap Contest in the market but they have not gone for full-fledge advertisement. the consumers prefer the promo pack.V. NEW DELHI . Do you go for conventional are:  Yes  No Dettol soap promo Pack than Response 95% of respondents prefer promo pack in comparison to conventional one. channel.

Response 95% consumers prefer to buy additional quantity of Promo pack during the contest period. Do you refer to buy surplus stock. 1-promo pack extr 2-promo pack extra 3-promo pack extra 4-from pack extra.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The free gift offer of ‘Robin Liquid Blue’ give whitening affect tocloths (ie kapda). Kapda aur Makhan. DPC INSTITUTE OF MANAGEMENT. 10. because in the metrocity like Delhi. ANALYSIS The purpose of company as well as consumer get solved From consumer angle. he/she is getting a additional benefit in the form Suraksha. The gift coupon in the Lucky draw may provide Makan. Since Promo ofer is valid for limited period. he/she will prefer the contest. NEW DELHI . every one likes to have his own Makhan and if any promo scheme brightens the chances of makhan.

 Yes  No Response 97% of respondent like to convey Dettol soap contest message to their near & dear. Analysis DPC INSTITUTE OF MANAGEMENT. which in turn yield profitability to the company. Further. Neighbours. the company is also achieving the objective- The consumer instead of buying one soap at time. Moreover. NEW DELHI . Consequently the marketing goal of high sales volume in the short period is achieved. 11. Friends. Do you like to convey Dettol soap contest message to other viz. Moreover. which contain two soap. the limited period offer and attractiveness of Contest in term of meeting the basic needs of security & home. encourage consumer to buy additional quantity of promo pack. Relatives etc.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT On the other hand. Robin Liquid Blue in the market. will go for promo pack. high sales volume mean high sales turnover. the company is also able to position his new product.

will also bring some percentage of nonuser into the user category. is done40 are male consumers. 12.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT The company is getting extra mileage because they are getting publicity for the product at no extra cost. On the other hand. This factors also contribute in the sales turnover. Response The market research study on 50 consumers. NEW DELHI . and 10 are female consumers. Personal details :  Sex :  Male  Female  Age :  17-22  23-28  29-34  above 34. DPC INSTITUTE OF MANAGEMENT. The 50% of males are in 23-28 age group range and rest 50% are in 29-34 age group while the 40% females are in 17-22 years age group and 60% are 23-28 yrs age group.

Annual Income (family) Less than 60.000  60. eg.50. MOST FALL IN THE INCOME GROUP OF 2.000  1. etc.50. Pvt.000  3. service.000 – 1.000 & above.000 – 2.000  2. Organization.000 FOLLOWED BY 60.000- DPC INSTITUTE OF MANAGEMENT. Occupation Response The 90% of consumers are working class teachers.50.50.50.20.20. School 14.50.000 – 3. 1.000 – 1. govt.000 .50.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT 13. NEW DELHI .

off is in the pipeline. 3/. The company is able to sell large volume (units) in the shorter period. Robin liquid blue to target market segment along with dettol contest. 4. 3.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT Chapter. 5. company. Promo contest have synergistic on the effect profit on the of sales the turnover. 7. Help in the consolidation market demands. 6. The Introduction and Decline stages of PLC are the right place for Promotional Strategies because in the introduction stage.5 CONCLUSIONS The following conclusions are drawn from the study: 1. Consumer publicity have more penetration power than other means. to be launched soon. it special offer series with Rs. Thus are economical in nature. consequently market share. Consumer do publicity of the contest and explain the things more closely at no extra advertising cost. consequently ability 2. which in turn improves the sales turnover.need for right target market is there DPC INSTITUTE OF MANAGEMENT. Once the target market for robin liquid blue is explore. It helps RBI to position new product. NEW DELHI .

NEW DELHI . DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT which is explore with the help promotional strategies as in the case of Robin Liquid Blue respectively.

W.R. David J.. Sales Management. Sales management. Library. MS-62 ‘Sales Management’ 3. Donald A. 6. Douglas M. Kothari C.P.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT BIBLIOGRAPHY 1.C. Johnson. Singler. G. Marketing Channels. Prentice Hall International. 9. Still Adward. Taylor. Eugene M. Louies W. Cundiff and Norman A. Bowersox. New Delhi. Lambert. McGraw Hill. Strategic Sales Management. Stern and Adel El Ansary. 8. 4. Govoni. 5. McGraw Hill Book Company. Decisions. Bixby Cooper. David Hughes andCharles H. DPC INSTITUTE OF MANAGEMENT.P. NEW DELHI . 1988. Research Methodology Methods & Techniques. D.). Project Report on ‘Market Research on Consumer Behaviour Shanpoo Market in Delhi’. Marketing Management (10 th edn. Richard R. Strategies and Cases. Mass Addison Wesley. IGNOU Study material. 2. Management in Marketing Channels. Kotler Philip. 7. David Kurtz and Elurand Scheuberg. M.

NEW DELHI . Faculty. I would also like to thanks the employee of RBI who helped me in completing this project. DPC Institute of Management for his invaluable guidance and constant encouragement during the course of this project. DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT ACKNOWLEDGEMENT I take the opportunity to express my sincere gratitude to Dr. Varshney. R.L. DPC Institute of Management. RAKESH BEDI MBA (PT) 6 th Sem.

DCP Institute of Management DPC INSTITUTE OF MANAGEMENT.L. (Dr. NEW DELHI . R. Varshney) Project Guide Faculty.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT CERTIFICATE This is to certify that the on project Sales entitled and “Role of Promotional Strategies Distribution Management” submitted in partial fulfillment of Master of Business Administration and is a record of bonafide research work carried out by Rakesh Bedi of DPC Institute of Management under my supervision and guidance. I wish him all the best for his future endeavors.

1-4 DPC INSTITUTE OF MANAGEMENT.ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT CONTENTS Topics CHAPTER –1 Introduction Objective of the study Scope of the study CHAPTER-2 Sales and Distribution Management Promotional Strategies Logistic Management Product Life Cycle Market Research CHAPTER-3 Research Methodology Survey Method Methods of Data Collection Sampling Questionnaire Design CHAPTER-4 Results & Discussions CHAPTER –5 Conclusions BIBLIOGRAPHY 42 41 33-40 25-32 5-24 Page No. NEW DELHI .

NEW DELHI OF .ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT PROJECT REPORT ON ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT “In partial fulfillment for award of degree in Master of Business Administration” Submitted by: Rakesh Bedi (99/DP/MBA/PT/24) DPC INSTITUTE OF MANAGEMENT (AFFILIATED TO GGS INDRAPRASTHA UNIVERSITY) NEW DELHI DPC INSTITUTE MANAGEMENT.

ROLE OF PROMOTIONAL STRATEGIES ON SALES AND DISTRIBUTION MANAGEMENT DPC INSTITUTE OF MANAGEMENT. NEW DELHI .