MARKETING STRATEGIES OF MODERN FOOD ENTERPRISES PRIVATE LIMITED

A DESCRIPTIVE STUDY

Submitted by

ARAVIND P L (2015-31-027)

P J AASHIQUE (2015-31-003)

MINOR PROJECT

Submitted in partial fulfillment of the requirement for the Post Graduate degree of

MBA IN AGRIBUSINESS MANAGEMENT

Under the guidance of

Dr. Smitha Baby

Assistant Professor

Agricultural Extension

Communication Centre

KAU,Mannuthy

COLLEGE OF CO-OPERATION BANKING AND MANAGEMENT

KERALA AGRICULTURAL UNIVERSITY

VELLANIKKARA, KAU (P.O)

THRISSUR-680 656

KERALA, INDIA

2016

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DECLARATION

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Fellowship or other similar titles of any other University or Society. Place: Vellanikkara ARAVIND. Associateship.L Date: (2015-31-027) P.P. DECLARATION We hereby declare that this project entitled “MARKETING STRATEGIES OF MODERN FOOD ENTERPRISES PRIVATE LIMITED – A DESCRIPTIVE STUDY” is a bonafide record of research work done by us during the course of major project work and that it has not previously formed the basis for the award to me of any Degree/Diploma.J AASHIQUE (2015-31-003) 3 .

DESIGN OF THE STUDY 4 .

Food and grocery account for around 31 per cent of India’s consumption basket. In India. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. which was valued at US$ 490 billion in 2013@. 1.The Indian gourmet food market is currently valued at US$ 1.2 Bread Industry in India The bread industry in India.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent.53 bn) in FY 2015(E). Indian food service industry is expected to reach US$ 78 billion by 2018. foreign collaborations. Accounting for about 32 per cent of the country’s total food market. 13 per cent of India’s exports and six per cent of total industrial investment. one of the largest industries in India and is ranked fifth in terms of production. It has approved proposals for joint ventures (JV). The Indian food and grocery market is the world’s sixth largest. grew at a CAGR of ~9% over the last three years.0 INTRODUCTION 1. ValueNotes estimates that the industry will be worth approximately INR 53bn (~USD 0.0. export and expected growth. Food has also been one of the largest segments in India's retail sector. The food industry.1 Food Processing Industry The Indian food industry is poised for huge growth.71 billion!is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP). with retail contributing 70 per cent of the sales. 5 . CHAPTER 1 DESIGN OF THE STUDY 1. valued at INR 33bn (~USD 0. increasing its contribution to world food trade every year. The Indian food processing industry accounts for 32 per cent of the country’s total food market. particularly within the food processing industry. India's organic food market is expected to increase by three times by 2020. The Government of India has been instrumental in the growth and development of the food processing industry. consumption. growing at a CAGR of ~10%. the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition.98 billion) by 2020. The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 894. industrial licenses and 100 per cent export oriented units.86bn) by FY 2020. which is currently valued at US$ 39.0.4 billion by 2018.

as a public sector enterprises with the objective of popularizing wheat consumption especially in non-wheat producing areas. Growing disposable incomes. west and east zonal states consume about 27%.A rough consumption of bread indicate the southern state leading with 32% while north. Modern have over 40% of the bread market in India. 6 . backed by its food and agricultural sector. and a variety of breads. This was the was the first privatization of public sector unit by the Government of India.1 STATEMENT OF THE PROBLEM India is the world’s second largest producer of food next to China and has the potential of being the biggest. Food processing is an important segment of the economy having a share of 9-10% of GDP in agricultural and manufacturing sector. 1.. The main competitors are Elite and local producers. the bread industry is coming up with innovative products and flavors.0. It was taken over by Hindustan Unilever Ltd in January 2000.Latest trends witnessed in the industry reveal that companies manufacturing bread products are likely to increase their manufacturing capacities to expand their foothold in different regions. They are maintaining this market share consistently over a long period.6 to 1. They have 48% of the total market share in Kerala. 23% and 18% respectively. Government of India and is registered under the companies act 1963. According to All India Bread Manufacturers Association (AIBMA) the per capita consumption of bread in India is only around 1. It is essential to understand and study about the various marketing strategies followed by the market leaders in this sector.3 Modern Food Enterprises Priavate Limited Modern foods enterprises Pvt Ltd is situated at Edapalli Ernakulam. A descriptive study about the marketing strategies along with the customer awareness and preferences is to be done. MFEL was established under the ministry of Agriculture and Food Processing. which is entirely different from their competitor.8 Kg in various zones in 2015. With a change in eating habits and preferences of consumers. female work participation as well as a widening scope of the Indian retail market will drive the industry growth. Modern Food Enterprises Private Limited (MFEPL) is holding the highest market share in the bread industry. This consistency can be maintained only through a definite and unique marketing strategy. In April 2016 it was taken over by Everstone Group. 1. changing lifestyles and preferences of consumers supported by an increase in the youth population. The marketing strategies are the connecting link between the customers and the business organization.

Satisfaction Index. STUDY AREA . A sample of 60 consumers. To analyze the marketing strategies adopted by MFEPL 2.2 OBJECTIVES OF THE STUDY 1.4. Time Series analysis are to be used by IBM SPSS. Secondary data were collected through books. INSTITUTION – Modern Food Enterprises Private Limited PERIOD OF STUDY – August-September 2016 SAMPLE DESIGN – The primary data for the study were collected from consumers.1 GENERAL OBSERVATIONS  Consumer’s socio-economic profile.  Consumption pattern  Life style  Brand awareness  Market share of competitors  Methods used for marketing  Quality parameters of the product  Shelf-life of the product 7 .Thrissur district MFEPL is facing tough competition from Elite Breads and local brands in Thrissur District. The level of competition is high in Thrissur district compared to other districts. Primary data will be collected by administering structured questionnaires to consumers.1. 1. DATA COLLECTION METHODS – The study uses both primary and secondary data. DATA ANALYSIS – Statistical tools such as Percentage analysis. To know the customer awareness and preferences about MFEPL 1.4 OBSERVATIONS MADE 1. journals and websites related to the subject domain area.3 METHODOLOGY  Respondents of the study comprises the consumers of MFEPL.

4 PROMOTION  Knowledge of promotion  Influence of promotion strategy  Brand preference  Media reach of consumers 1. The study also direct the organization to further modify their strategies according to customer behavior.6 LIMITATION OF THE STUDY Since the study is restricted to Thrissur district. 8 .2 PRODUCT  Respondent’s awareness towards MFEPL. a generalization of the result is not possible.4.5 SCOPE OF THE STUDY This study concentrated on the marketing strategies of MFEPL to provide a basic understanding for management studies and guidance for future entrepreneurs.4.4. 1. Because the competition factor differs for each district.  Availability of the product 1.  Attribute about the product  Quality parameters exclusively for bread  Consumer awareness about other brands 1.5 PLACE  Availability  Convenience of purchase 1. This study helps the organization to know about the views and ideas about the product by the customer.3 PRICE  Affordability  Pricing policy of MFEPL  Price offers 1.4.

REVIEW OF LITERATURE 9 .

In the case of urban consumers they generally agreed that the product had effective promotion and enjoyable taste. quantity and price the package is worth off. Subhalekshmi (1999) found that rural consumes in general had a favourable attitude regarding attractiveness of packing and availability of curry powder/masala in convenient packing and size. Rant (1987) in his study on consumers attitude towards advertising pointed out that around 89% of the respondents believed that advertising is useful to the consumers. consumers were more conscious of quality than price. A comprehensive review of past studies is useful to formulate concepts. The consumers were found to give more weightage to the quality of the product. It also provides an opportunity to make comparison and make shopping easier to consumers. The review was made on the following headings: 1. It further informs the consumer. Marketing Strategies Consumer Awareness Singh and Singhal (1980) a well-designed packaging act as a main identifying feature for quality and quantity and makes the consumers more informative and choosy. Mani and Srinivasan (1988) stated that educational status was a major determinant of consumption of processed products by household and with regard to brand preference. an attempt is made to review critically the available literature. as to what quality. Similarly consumption was more in case of employed wife and higher income groups. by giving convenient information about the products and increase customer awareness. price and keeping quality while selecting the product. She observed that rural consumers in general favoured the packing aspect of the product features whereas urban consumers agreed to the promotion and product like taste of the other product. Raju and Saravanan (2001) pointed out that in most of the families purchase decision was taken collectively in the case of consumer durables and revealed that advertisement or publicity 10 . Sabeson (1992) found that increase in educational level of households (head) and wife lead to increase consumption of processed food products. CHAPTER 2 REVIEW OF LITERATURE In this chapter. methodologies and tools of analysis to be used for study. Consumer Awareness 2.

Kalaivanan (2005) opined that the buying behaviour is vastly influenced by awareness and attitude towards the product. Feinberg. it is critical that you form a close working relationship with your client. Howard and Kerin (2006) found that consumers with different levels of involvement. operationalized by whether they are in the market for a particular product. In addition to the psychological factors brands give consumers the means whereby they can make choice and judgements. have different information processing styles and hence respond to different price promotion cues. and Zhang (2002) provides evidence of a betrayal effect. retailers. economic situation. Because. In the business of web design. The realistic task is to capture the customer under certain circumstances for a period of time. personality and self-concept. Gaur & Vahed (2002) observed that customers buying behaviour normally should include the less observable decision process that accompany consumption including where. how often and under what condition customer make their purchase of desired goods and services. providing more. sales people and reference group like family members. occupation. Ramasamy and. Customers can then rely on chosen brands to guarantee standard quality and service. Vikas (2003) in his study says that brands are successful because the people prefer them to ordinary products. customer service has vital importance. Thompson (2007) stated that it is a well-known fact that no business can exist without customers. Vimal (2001) remarked that in the new economy. 11 . friends and relatives. Generally people get awareness about the products or services from various information sources like commercial advertisement in mass communication media. they are ready to postpone their buying decisions. life style. Reddy and Rajarshmi (2005) found that almost all people prefer brand product and if their favourite brand is not available in store and if their favourite brand is not available in the markets. in which loyal consumers of a brand provide less favourable preferences for that brand when they are excluded from a targeted deal offered only to competitors' customers. however efficiently is not necessarily better. Kotler and Armstrong (2004) opined that a buyer decision is also influenced by personal characteristics such as buyer's age.through mass media proves to be the best source of reaching the public closely followed by information from retailers and friends. Krishna. The goal should be to build limited loyalty to have as much of the customers attention as realistically possible. it is important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage.

and is correctly associated with a particular product. Kumar and Das (2009) opined that today's consumer can greatly influence the manufacturer or the marketer regarding size. quality. personal selling. post-sale service etc. packaging. price and service) and the methods and tools (distribution channels. pricing. channels of distribution. servicing. 12 . content of the product. personal selling. service or business. He also revealed that the consumers uniformly both in urban and rural areas desire to have quality product at reasonable prices and trust more in the advice of the retailers. Word-of-mouth marketing from family and friends. Brand awareness plays a major role in a consumer's buying decision process. Kumar (2008) revealed that majority of the consumers are highly concerned with the quality of the products. promotion. price. By increasing a potential or current customer's knowledge about a product. physical handling and fact finding analysis. and is essential to help the companies to build market share. packaging. The organization exists for the customer and the customers are the deciding forces behind the success or failure of the business organization. advertising. Marketing Strategies Frey (1961) suggested that marketing variables should be divided in to two parts: The offering (Product.with a set of 1 elements namely. Consumer awareness is the extent to which a brand is recognized by customers. Consumer awareness key role in customer decision making.Balsubrahmanian and Sathyanarayanan (2008) explained in their study that the success of any business lies in maintaining a strong base of loyal customer. or high recognition of the product through repeated advertising. sales promotion and publicity). Borden (1965) claimed to be the first to have used the term "Marketing Mix. Markets today have. The eventual goal of most businesses is to generate profits and increase sales. brand. display. Price sensitive customers are targeted by companies with lucrative promotion schemes.product planning. a healthy economic environment is established in which customers are informed and protected and businesses are accountable. With the entry of several new retail formats in the country the competitive scenario is undergoing a major change and is becoming extremely challenging. advertising. Consequently. can drive consumers to purchase certain brands over others. branding. integrated marketing communications strategies are instrumental in helping companies expand their customer base and encourage repeat purchases. therefore become "Customer driven" rather than being "Seller driven".

goods or services by an identified sponsor.a shift from standardization to customization. displays. These highly promotion prone consumers may switch brands to receive special deals that reflect and reinforce their smart shopper self- perception. Retailers also use promotional 13 . Totten and Block (1994) stated that the term sales promotion refers to many kinds of selling incentives and techniques intended to produce immediate or short-term sales effects. (2002) indicated that sales promotion may be attractive to highly promotion prone consumers for reasons beyond price savings.Bobrow and Bobrow (1985) defined marketing practices as strategies that one organization uses to achieve its marketing goals. and so on. 'they concluded that highly promotion prone consumers might try a new product that has promotion. however. distinct and desirable place relative to competing products. and price-offs. Clewelt (2000) The marketing objective says 'where to go' and the marketing strategy says 'how to go'. Philip Kotler (1996) opined that the best advertising is done by the satisfied consumers. In third stage. Since an additional amount is given for free. target the most promising segment. consumers may be persuaded to buy the product it' they feel it represents a fair deal that provides value for money. According to Shimp (2003). There are five stages in development of an advertising program. and position the product in the consumers mind as a clear. Second stage involves calculating a budget that takes in to account product life cycle stages and market share. Typical sales promotion includes coupons. According to Gilbert and Jackaria (2002). or other channel members) and/or consumers to buy a brand and to encourage the sales force to aggressively sell it. even under similar circumstances. retailers. will probably not be the same that another company would use. advertising message is chosen and executed. In the first stage advertising objects are set. Advertising is any paid form of non-personal presentation and promotion of ideas. packs with 'buy-one-get-one-free' may not increase brand awareness before trial purchase because the customer will only come across the product once in the store (unlike samples or coupons). SAM' (2000) stated that a firm would be able to achieve much success if it has continues approach to market with a mass marketing strategy. in-pack premiums. sales promotion refers to any incentive used by a manufacturer to induce the trade (wholesalers. The marketing strategy helps to segment the market. samples. The only way to replace customer satisfaction with customer delight is to tailor ones offer to individual needs of each customer. Chandon et al. if the promotion is noticeable it will facilitate brand recognition and brand recall for future purchases. that is .

beliefs and attitude of the customer towards products and services. like consumers elsewhere spent more on non-food items compared with food products. Ferrel and Hartline (2008) to succeed in today's competitive market place. The marketing strategy is the marketing logic by which :he company hopes to achieve its marketing objectives. In a developing country like India. The young 15 to 30 years old are technology-savvy. believe in self-gratification. Henchion and 0' Reilly (2007) in their study on Irish speciality food producers conclude that the Internet can complement other marketing channels used by Irish speciality food producers and endorse its function as a key part of Ecrm "its role in managing information and relationships may be more important than online sales".IMC switches the focus towards the customer. sales promotion. The share of food related items however is going down. Kristoffer Ejehro (2007) states that the field of marketing is an era that is always evolving and developing. look out for differentiation that adds 'fun' to the experience of consuming that product. personal selling. al (2005) concluded that television and advertising together present a lethal combination and has become an integral part of modern society. Mukesh Pandey (2004) opined that the media burst. discerning shoppers. It is the most convenient route to reach not only the adult consumers. using them as the basis for the marketing communication efforts and relying on two way communications to create and strengthen the relationships that exists between a company and its customers. which means IN ith income growth. Kotwal et. Isha and Girish (2006) opined in their study that the objective of modern marketing is to make profit through satisfying customer needs and wants. public relation and publicity. a large chunk of consumer expenditure is on basic necessities. Canavan. Sharif Menon (2007) in his study "competitive promotional tools and retailing" opined that the major competitive promotional tools starting from the advertising. wants. have money are spoilt for choice. growing popularity of internet has brought the generation closer to all developed world economies. One of the biggest development during the last decades is the introduction of INIC(Integrated Marketing Communication).incentives to encourage desired behaviours from consumers. Indians. They conclude that -leveraging the Internet as a 'marketing channel' as distinct from mainly a 'distribution channel' is evident in the specialty food market and this is likely to be of increasing importance to speciality food producers". 14 . each company must frame a marketing strategy. but also adolescents. direct marketing. Hence the marketers have to understand the real needs. Sales promotion is more short-term oriented and capable of influencing behaviour. especially food related items.

Sandip Anand (2008) states that the consumers are neither receiving 'information value' nor `entertainment value from television advertisements. The emphases on buying behaviour of consumers gained renewed strengthen following the adoption of modem marketing practices in 21St century. retailers need to modify their marketing strategies and focus on practices like below-the-line promotions. which they want. corporate can establish brand equity that assists firms in a variety of ways to manage competition and maintain market share. which enables SMEs in niche markets to differentiate their product or service from the standardised offerings of larger firms". Ibis study also presents a conceptual model for innovative marketing in SMEs based on "incessant supplemental adjustments to current activities and practices. and Ekta Kapur (2009) this article argues that in the current economic turmoil. Taken together. Mal Murugan (2008) found that the word of mouth is twice effective than radio advertisement and four times effective than the personal selling. Amarjeet kumar and Shantanu Uniyal (2009) observed that in this era of time shifting and fast changing consumer loyalty advertisers are searching for new techniques of attracting consumers interest. Sales promotion in general can be classified in to two types . these variables are the basis from which SMEs can formulate a unique proposition. Bluetooth marketing.as such: price promotion and non-price promotion.Kamalm et. Gilmore and Carson (2009) examining innovative marketing in SMIF. affiliate marketing and other unconventional methods of promotion Kirti Dutta (2009) opined that advertising is the most visible and noticeable component of communication mix.s„ reiterates previous authors in the literature who state that the primary components of innovative marketing are `uniqueness' newness' and 'unconventionality'. 15 .CGA is the latest strategy where consumers purposely involved in creating ad campaigns. The need to understand the emerging markets and consumers has become a big challenge for the corporate world especially in creating and managing a powerful brand. This unending quest for being different and innovative has brought advertisers to new concept called Consumer Generated Advertisement (CGA). Jain R. A recent article by 0' Dwyer.al (2008) opined that India is witnessing change in life styles of a large sections of our population. By developing a powerful brand. Tong and Hawley (2009) described that sales promotion is seen as temporary incentive to encourage the trial or use of a product or service. Though there is a relationship between brand used and add recall but viewers are not very satisfied with the ads. Renganathan (2009) in his study entitled "Consumer Market and Buying Behaviour" stated that ever since the marketing concept was developed buying behaviour of consumers has been the pivotal point of marketing theory and practices.

Therefore it is a crucial determinant for brand image. The product component is the specific tangible good that have developed to sell. Distribution refers to how products bring to market. sales promotion offers an incentive to buy. the price charged and the satisfaction that is derived from the brand. For a company to succeed. along with physical characteristics of the brand. Pricing strategies helps to project the value proposition and relate to profitability. Nelson (2010) viewed as advertising is non-personal communication and promotion of ideas. Lim and Chung (2011) WOM (Word Of Mouth) is a low cost and reliable way of spreading information or experiences regarding products or services.Chandran Chavady (2010) told that where advertisement offers a reason to buy. involves strategies to communicate your brand benefits to customers. 16 . Elmazi L (2010) Strategy is linked with the effective usage of development potentials and results of an organisation that reacts to adopt itself to the environmental changes. The marketing mix is a central tool used in the development of the strategic section of a company's marketing plan. The final component. promotions. It is a blend of four key elements that go into developing and promoting a product offering. Market analysis is an important part of formulating marketing strategy. thus it is believed as a key issue in information or experience diffusion in consumer markets as well as shaping consumers expectation. it should understand the market it is targeting. goods or services by an identified sponsor by various media.

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30 (9): 11p.2001. 4.13 (9):2-3 Vimal Sukumar. Developing and Implementing promotional strategies. 1.2003.2006.31 :28-30. Marketing strategy includes all basic. Selecting a Supply Chain Process to reach the place of the customer. Indian Journal of Marketing. CHAPTER 3 THEORETICAL ORIENTATION In the process of marketing the consumers conceive the goods from the conceptual stage to the actual form. Product. Taniya . 2. Designing and development of a product. Promotion and Place 20 . 3.Branding: Flub of The corporate wheel. This is often related to 4Ps Price. Initiating. Indian Journal of Marketing.Customer Satisfaction – 20 ways to increase customer loyalty. Price determination. Marketing strategies serves as the fundamental base of marketing plans designed to fill market needs and reach marketing objectives. Marketing is based on thinking about the business in terms of customer needs and their satisfaction and is the process of communicating the value of a product or service to customers for the purpose of selling that product or service. The basic marketing tools that the firm uses to pursue its marketing objectives in the target market. Vikas. Indian Journal of Marketing. evaluation and selection of market oriented strategies and therefore contribute to the goals of the company and its marketing objectives. The process is actually a combination of 4Ps of marketing. Arora and Girish. short term and long term activities in the field of marketing that deals with the analysis of the strategic initial situation of a company and the formulation.an analytical study on physicians behaviour towards marketing of pharmaceutical products.Usha.

 Price – Price refers to the money value equivalent to the value of product. Advertising development involves a decision across five M’s . press reports. contests and prices etc… Advertising Advertising is defined as any form of paid communication or promotion for product. Location is the most important aspect of retail business. Product – The first of the 4Ps of marketing is product. to differentiate and enhance the image of the product. Mission looks at the process of setting objectives for the advertisement activities. incentives. The main objective of place strategy is to capture the attention of the customers and making it easy to buy. Money . A product can be either a tangible good or an intangible service. There can be several types of pricing strategies. Pricing can also be used as demarcation. market share and consumer base. competition. media and measurement.  Promotion –Promotion consists of all the activities than helps to be aware of the existence and purpose of a product. each tied in with an overall business plan. commissions and awards. money. direct marketing. consumer schemes. supply – demand and a host of other direct and indirect factors. ability of the market to pay.basically the budget decisions for the advertising activities should consider the stages of product life cycle. Word of mouth is the most effective form of promotion for a product or brand. advertising frequency and product substitutability. That fulfills a need or want of consumers. service and idea. 21 . segment targeted. It depends on cost of production. The objectives should be based on the marketing strategies set by the company. message. Product refers to the item actually being sold. Various other methods of promotion are advertising.  Place – Marketing is about having the right product at the right place and at the right time.

Direct marketing can be used to deliver message or service. message execution. Public relations Companies cannot survive in isolation they need to have a constant interaction with customers. to grab attention of new customer. Measurement -Checking on the effectiveness of communication is essential to company's strategy. Once the message is decided the next step is finalizing the media for delivering the message. Direct marketing reduces cost for companies. Sales promotion is usually targeted at the fence sitters and brand switchers. free goods and allowances. coupons. and social responsibility review. for example. message evaluation and selection. This servicing of relation is done by the public relation office. support product publicity. Sales force incentive could be convention. magazine and the internet. the choice of media types are made from newspaper. message generation. handle matters with lawmakers. radio. television. competition among sales people. The major function of the public relation office is to handle press releases. Trade incentive could be price off. Direct marketing The communication establishes through a direct channel without using any intermediaries is referred to as direct marketing. makes an experience personal and pleasant. free trial and demonstration. Based on this. direct mail. The choice depends on reach of media. trade shows. increase consumption of occasional users. Face to face 22 . guide management with respect to public issues. reward the existing customer.Message’s development further is divided into four steps. Consumer incentives could be samples. employees and different stakeholders. Sales promotion Sales promotion activity can have many objectives. frequency of transmission and potential impact on customer. create and maintain the corporate image. Direct marketing saves time.

telemarketing. selling.  Exchange Offer In an exchange offer. This is one of the most successful marketing techniques for already-introduced goods as well as new goods. TV and kiosks are media for direct marketing. Such offers can help draw customers in huge numbers who are interested in buying technologically advanced and new products.  Discount Coupons For a company to succeed in achieving its sales targets. direct mail. The customer gets a particular product for a price which is less than its actual price if he gives the company the old product which he is currently using. So. the company needs to advertise the exhibition in different media and give an idea of the kind of goods kept for sale/display. leading and popular magazines. understanding buyer psychology is very essential. Exhibitions can be arranged in major locations in the city. distributing discount coupons by publishing them in newspapers. 23 . catalogue marketing. to attract maximum customers to the venue. For this method to work. Sales Promotion Tools  Offering Products for Free Offering company-manufactured products for free for a specified period like a few days or months could be one of the finest tools of sales promotion. or handing them over personally to customers. generally in the most popular areas. would be a good idea to boost the sales of certain selected products. A buyer always looks for discounts and is always interested in schemes which offer quality products at attractive rates as compared to the prevailing market rates.

Marketing strategies are most effective when they are well aligned with corporate strategies. A key component of marketing strategy is often to keep marketing in line with a company’s overarching mission statement-which should address matters of: target audience. unique proportion and implementation. Peter Drucker said "because its purpose is to create a customer.marketing and innovation. As the customer constitutes the source of a company’s revenue. Marketing is the heart of business organization. Designing goals and engaging customers. Thus sound marketing is critical to the success of the organization. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. political. 24 . It is the revenue producing activity for the organization. This is so because marketing keeps the business in close contact with its economic. the business has two and only two fUnctions . prospects and competitors in ways that meet those goals are all key components of successful marketing strategies. all the rests are costs". Marketing is said to he the eyes and ears of a business organization. A marketing strategy is a process that can allow an organization to concentrate its (often limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. social and technological environment and informs it of events that can influence activities as per the requirements of the market. Marketing and innovation create value. marketing strategy is closely linked with sales.