A

PROJECT REPORT ON sales promotion techniques of FMCG products

(Shampoo) in satna region

FOR THE AWARD OF

BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)

VINDHYA INSTITUTE OF MANAGEMENT AND RESEARCH SATNA

YEAR-2014-2017

Submitted by
Submitted to

Simran wadhwani
Prof.Prashant mishra
 DECELARATION

I UNDERSIGNED, HEREBY DECELARE THAT THIS PROJECT REPORT ENTITLED ON

sales promotion techniques of FMCG products (Shampoo) in satna
region HAS WRITTEN AND SUBMITTED UNDER THE GUIDANCE OF PROF.
PRASHANT MISHRA (V.I.M.R). IT IS MY ORIGINAL WORK AND HAS NOT BEEN
SUBMITTED TO ANY OTHER UNIVERSITIES OR COLLEGES FOR THE PARTIAL
FULFILLMENT OF THE REQUIREMENT OF A COURSE OF STUDY.

THE MATTER PRESENTED IN THIS REPORT HAS NOT BEEN COPIED FROM ANY
SOURSE. I UNDERSTAND THAT ANY SUCH COPYING IS LIABLE TO BE PUNISHABLE IN
ANY WAY THE UNIVERSITY AUTHORITIES DEEM TO BE IT.

THIS WORK HUMBLY SUBMITTED TO AWADHESH PRATAP SINGH UNIVERSITIES

REWA FOR THE PARTIAL FULFILLMENT OF BACHLOR OF BUSINESS ADMINISTRATION
(SEM.6TH )

MISS SIMRAN WADHWANI

PLACE-

DATE-

ACKNOWLEDGMENT

Whenever we are standing on most difficult step of the dream of our life, we often
remind about The Great God for his blessings and kind help and he always helps us
in tracking off the problems by some means in our lifetime. I feel great pleasure to

2
present this project entitled A study of SALES PROMOTION TECHNIQUES OF FMCG
PRODUCTS IN SATNA REGION.

I am great full to those people who help me a lot in preparation

of this project report. It is their support and blessings, which has brought me to
write this project report.

I would give sincere thanks to manager, Prof. K.P.TRIPATHI H.O.D (B.B.A DEPT.) who
is been & will be source of inspiration to us.

I am very thankful to my project guide Prof. PRASHANT MISHRA for his whole
hearted support and affectionate encouragement without which my successful
project would not have been possible. I would also like to express thanks to V.I.M.R.
SATNA (M.P.) for giving students of B.B.A. an opportunity to make projects.

SIMRAN WADHWANI

TABLE OF CONTENTS

S CONTENTS PG. NO.

NO
1 INTRODUCTION OF THE STUDY 6-13

2 COMPANY PROFILE 14-17

3 OBJECTIVES OF THE STUDY 21-22

3
5 RESEARCH METHODOLOGY 23-25

6 DATA ANALYSIS & INTERPRETATION 26-35

7 FINDINGS & SUGGESTIONS 36-38

8 LIMITATIONS 39-40

9 CONCLUSION 41-42

10 REFERENCE 43

11 ANNEXURE 44-46

INTRODUCTION
OF THE STUDY

4
Sales promotion techniques

Companies use various sales promotion techniques to promote their products. The
intention is to increase sales, make a large customer base, encourage trial,
encourage repeat purchases to stimulate consumers purchase. The types of sales
promotion techniques used by the company depend upon the sales promotion
objectives set by the company.

5
 TYPES OF SALES PROMOTION
TECHNIQUES

6
 1) Rebate: Under it in order to clear the excess stock, products are offered at
some reduced price. For example, giving a rebate by a car manufacturer to
the tune of 12,000/- for a limited period of time.

2) Discount:

Under this method, the customers are offered products on less than the listed price.
For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly giving
a discount of 50% + 40% by the KOUTONS.

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(3) Refunds:

Under this method, some part of the price of an article is refunded to the customer
on showing proof of purchase. For example, refunding an amount of 5/- on showing
the empty packet of the product priced 100/-.

(4) Product Combination:

Under this method, along with the main product some other product is offered to the
customer as a gift. The following are some of the examples:

(5) Quantity Gift:

Under this method, some extra quantity of the main product is passed on as a gift to
the customers. For example, 25% extra toothpaste in a packet of 200 gm tooth
paste. Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts.

(6) Instant Draw and Assigned Gift:

Under this method, a customer is asked to scratch a card on the purchase of a

product and the name of the product is inscribed thereupon which is immediately
offered to the customer as a gift. For example, on buying a car when the card is
scratched such gifts are offered TV, Refrigerator, Computer, Mixer, Dinner Set,
Wristwatch, T-shirt, Iron Press, etc.

(7) Lucky Draw:

8
Under this method, the customers of a particular product are offered gifts on a fixed
date and the winners are decided by the draw of lots. While purchasing the product,
the customers are given a coupon with a specific number printed on it.

On the basis of this number alone the buyer claims to have won the gift. For
example, Buy a bathing soap and get a gold coin offer can be used under this
method.

(8) Usable Benefits:

Under this method, coupons are distributed among the consumers on behalf of the
producer. Coupon is a kind of certificate telling that the product mentioned therein
can be obtained at special discount.

It means that if a customer has a coupon of some product he will get the discount
mentioned therein whenever he buys it. Possession of a coupon motivates the
consumer to buy the product, even when he has no need of it.

Such coupons are published in newspapers and magazines. Some companies

distribute coupons among its shareholders. Sellers collect the coupons from the
customers and get the payment from the company that issues the same.

(9) Full Finance @ 0%:

Under this method, the product is sold and money received in instalment at 0% rate
of interest. The seller determines the number of instalments in which the price of the
product will be recovered from the customer. No interest is charged on these
instalments.

9
(10) Samples or Sampling:

Under this method, the producer distributes free samples of his product among the
consumers. Sales representatives distribute these samples from door-to-door.

This method is used mostly in case of products of daily-use, e.g., Washing Powder,
Tea, Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it
satisfies them, they buy it and in this way sales are increased.

(11) Contests:

Some producers organise contests with a view to popularizing their products.

Consumers taking part in the contest are asked to answer some very simple
questions on a form and forward the same to the company. The blank form is made
available to that consumer who buys the product first.

Result is declared on the basis of all the forms received by a particular date.
Attractive prizes are given to the winners of the contest. Such contests can be
organised in different ways.

10
 COMPANY
PROFILE

HINDUSTAN UNILEVER LIMITED

11
Revenue 4824.52 ( USD in Millions )
Market Cap 2023017.6075733 ( Rs. in Millions )
Corporate Address Unilever House,B. D. Sawant Marg,Chakala, Andheri
EastMumbai-400099, Maharashtra
www.hul.co.in
Management Details
Chairperson - Harish Manwani
MD - Sanjiv Mehta
Directors - Kalpana Morparia, Sanjiv Misra, O P Bhatt, S
Ramadorai, Aditya Narayan, Pradeep Banerjee, PB Balaji

Business Operation Household & Personal Products

Background
Hindustan Unilever (HUL) is India's largest fast moving
consumer goods company, with leadership in Home &
Personal Care Products and Foods & Beverages. HUL's
brands, spread across 20 distinct consumer categories, touch
the lives of two out of three Indians. In the summer of 1888,
visitors to the Kolkata harbour noticed crates full of Sunlight
soap bars, embossed with the words 'Made

Financials Total Income - Rs. 325150.9 Million ( year ending

Mar 2016)
Net Profit - Rs. 40823.7 Million ( year ending Mar 2016)
Company Secretary Dev Bajpai
Bankers Royal Bank of Scotland, Syndicate Bank, Bank of India
Auditors BSR & Co LLP

12
Hindustan Unilever (HUL) is India's largest fast moving consumer goods company, with leadership in
Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct
consumer categories, touch the lives of two out of three Indians. In the summer of 1888, visitors to the
Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words 'Made in England
by Lever Brothers'. With it, began an era of marketing branded Fast Moving Consumer Goods
(FMCG).Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company,
followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three
companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public,
being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the
company. The rest of the shareholding is distributed among about 360,675 individual shareholders and
financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched
Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond
joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with
India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was
incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an
international acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The
growth process has been accompanied by judicious diversification, always in line with Indian opinions
and aspirations. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the
Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with
significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and
the Dollops Ice-cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of
Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India
merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring
synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of
Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Quality
Ice cream Group families and in 1995 the Milk food 100% Ice cream marketing and distribution rights
too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had
significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a
common distribution system since 1993 for Personal Products. The two also had a common

13
management pool and a technology base. The amalgamation was done to ensure for the Group,
benefits from scale economies both in domestic and export markets and enable it to fund investments
required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern
Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings
(PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat
business. In 2002, HUL acquired the government's remaining stake in Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group
of Companies, a leader in value added Marine Products exports.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,
Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household
names across the country and span many categories - soaps, detergents, personal products, tea, coffee,
branded staples, ice cream and culinary products. They are manufactured over 37 factories across India.
The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising
about 2,500 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban
population, and about 250 million rural consumers.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The
Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has facilities in Mumbai and
Bangalore. HURC and the Global Technology Centres in India have over 200 highly qualified scientists
and technologists, many with post-doctoral experience acquired in the US and Europe.

HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme
endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the
incidence of diarrhoea. It has already touched 120 million people in approximately 50, 676 villages
across India. The vision is to make a billion Indians feel safe and secure.

FMCG major Hindustan Unilever (HUL) has received its boards nod for divestment of 43.31% stake in
Hindustan Field Services (HFS) to Smollan Group 30 June 27, 2010. HFS is a joint venture (JV) company
between HUL and Smollan Holdings. It was incorporated for building capabilities for 'in-store'
execution in Modern Trade and operates as a dedicated venture with processes, capability and culture
of execution. Smollan Group currently holds 49% stake in HFS.

In 2012 HUL entered into an agreement with Unilever for manufacturing, marketing and distributing
the Brylcreem brand in India.

Product range of the company includes:

Home & Personal care

14
Personal wash

Lux

Breeze

Lifebuoy

Dove

Liril

Pears

Hamam

Rexona

Laundry

Surf Excel

Rin

Wheel

Sunlight

Hare care

Sunsilk Naturals

Clinic

Deodorant

Axe

Rexona

Ayurvedic Personal & Health Care

Ayush

15
Skin Care

Fair & Lovely

Pond's

Vaseline

Aviance

Oral Care

Pepsodent

Closeup

Colour Cosmetic

Lakme

Foods

Tea

Brooke Bond

Lipton

Coffee

Brooke Bond Bru

Foods

Kissan

Annapurna

Knorr

Ice Cream

16
 Kwality Wall's

OBJECTIVES OF
THE STUDY
17
THE STUDY IS UNDERTAKEN WITH THE FOLLOWING OBJECTIVES

(a) To understand the concept of promotion, methods of promotion

in markets, sales promotion, need, objectives, importance in
competitive situation, and relation with various promotional
methods,
(b) To study the tools or techniques of sales promotion , impact on
sales, parties involved in sales promotion, management of sales
promotion measures, need for sales promotion strategy and its
importance, and role of sales promotion strategy in progress of
number of customers, sales volume, profits and progress of the
business as a whole.
(c) To understand Indian FMCG sector and find out the practices
adopted by the leading companies regarding sales promotion
strategy, their effects and difficulties faced in it by the selected
companies.
(d) On the basis of study, to summaries the findings and give
suggestions for further improvement in sales promotion strategy
practices and its contribution in achieving objectives of sales
promotion.

18
RESEARCH
METHODOLOGY

19
 RESEARCH METHODOLOGY

It is a conceptual structure within which research should be conducted.

Thus the preparation of such a design facilitates research to be as
efficient as possible and will yield max information. Research
methodology is a way to systematically solve the research problems. It
may be understood as a science of studying that how research is done
scientifically. It is necessary for the researcher to know not only the
research methods and techniques but also the methodology.

RESEARCH OBJECTIVES - To study the sales promotion techniques of

FMCG products (Shampoo) in satna region To identify the influencing
factors on individuals choice among the alternatives. To analyze the
interest of respondents in towards FMCG Products.

SOURCES OF DATA - The task of collecting data begins after a research

problem has been defined and plan is chalked out. This study pertains
to collection of data from primary and secondary sources .

Primary Data - The Data that are collected for the first time for a specific
purpose is called primary data. Primary or first-hand data will be
collected with the help of handling out the questionnaire to the
customer and employees. In this study data is collected through
observation or questionnaire method.

Secondary Data The data that are already in existence and obtained
from published or unpublished sources are called secondary data.
Secondary data was collected through company websites, discussions
with company or through newspapers.

RESEARCH DESIGN In this study descriptive research design is used.

Descriptive research design includes surveys and fact findings,
enquires of different kinds. The major purpose of Descriptive research
is description of state of affairs, as it exists at present. The main
characteristic of this method is that the researcher has no control over
the variable; he can only report what has happened or what is
happening.

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The researcher has used questionnaire for the following purposes

For identify the demographic profiles of the respondents.

To identify the consumers opinion towards the advertisement of

FMCG Product.

SAMPLING PLAN

Sampling Sampling is the selection of certain percentage of a group

of items according to the predetermined plan.

Sample design It is a definite plan for obtaining a sample from a

given population.

Sample unit Sample unit may be geographical, social, constructional

or individual. In this study the sample units are individuals .

Sample size It refers to the number of items to be selected from a

universe to form a sample. The Sample size selected for the survey is
15 Dealers. The sample size determination was purely by intuition.

DATA ANALYSIS
Sampling technique In this study convenient sampling technique is
used.

&
INTERPRETATION

21
1. WHICH COMPANYS SHAMPOO DO YOU USE REGULARLY?

HUL 59
%
P&G 20
%
GODREJ 18
%
J&J 03
%

22
 Series 1
60
50
40
30
20
10 Series 1
0

49%
COMPANY NAME
QUALITY OF THE SHAMPOO 29%

IDENTIFYING NAME 12%

TYPE OF THE SHAMPOO 10%

2.HOW IMPORTANT DOES THE BRAND NAME OF THE SHAMPOO?

IMPORTANT 69%

Not IMPORTANT 14%

VERY IMPORTANT 17%

Column1
NOT IMORTANT IMPORTANT
11% VERY IMPORTANT
15%
74%

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3.WHAT DO YOU UNDERSTAND BY THE TERM BRAND OF SHAMPOO?

4.HOW DO YOU RATE YOUR PRESENT SHAMPOO FROM THE FOLLOWING

QUALITIES?
PACKAGING OF SHAMPOO 29%

COMPANY NAME 59%

PRICE OF THE SHAMPOO 12%

12%
29%

PACKAGING OF SHAMPOO COMPANY NAME price of shampoo

59%

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5. ARE YOU SATIFIED WITH THE OVERALL PERFORMANCE OF YOUR
PRESENT SHAMPOO?
SATISFIED 63%

DISSATISFIED 37%

Sales
70%
63%
60%

50%

40% 37%

30%

20%

10%

0%
SATISFIED DISSATISFIED

6.HAVE YOU EVER CHANGE NEW BRAND OF SHAMPOO?

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YES 61%

NO 39%

39%

61%
YES NO

Table no.6.7 Would you recommend your friend or relatives to buy

HUL shampoo?

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YES 79%

NO 21%

21%
NO

79%
YES

Table no. 6.8 Has HUL company met your expectations?

27
YES 79%

NO 21%

21%

YES NO

79%

6.9 what are the main criteria in respondents mind while purchasing
any brand?

28
PACKAGING 04%

QUALITY 12%

PRICE 21%

ALL OF THEM 63%

4%
12%
packaging
quality
21% price
63% all of them

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30
 FINDINGS

Majority of people use HUL products as it has large variety of

products.
Lower class people use clinic plus because it is easily affordable
to them.
Middle class people use sunsilk because it is an economical
soap.
Upper class people use tresseme as it indicates higher society.
Johnson and Johnson have targeted the children and they have
achieved it.
Peoples demands for sunsilk and clinic plus as it is economical.
Dove and tresseme are favorites of women.

Suggestions
1. Customers awareness regarding advertising is very high. It should be kept
in mind by companies for communication purpose.
2 Use of televisions and newspapers are more planners also should use these
media to reach to maximum number of viewers/readers

31
 CONCLUSION

Companies use various sales promotion techniques to promote their products. The
intention is to increase sales, make a large customer base, encourage trial,
encourage repeat purchases to stimulate consumers purchase. The types of sales
promotion techniques used by the company depend upon the sales promotion
objectives set by the company.

Sales promotion techniques is undertaken to introduce new products or

services, to attract new customers, to induce existing customers to buy
more ,Helps the firm to remain competitive, to increase sales in off-
seasons and to add to the stock of the dealers.

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33
BIBLIOGRAPHY

1.Www.hul.com

2. WWW.gpcl.com

3. www.jjidp.com

4. www.nirma.com

5. www.colgate.com

6. www.jkhc.com

7. www.henkel.com

8. research methodology, C.R. Kothari

9. marketing research, Harper W.boyd

10. marketing management, Philip Kotler

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 QUESTIONNAIRE
This questionnaire is to be filled by the respondents to know about
their perception for sales promotion techniques of FMCG products.

1. Which companys shampoo do you use regularly?

o P&G
o HUL
o GODREJ
o J&J

2. What do you understand by the term brand of shampoo?

o COMPANY NAME
o QUALITY OF THE SHAMPOO
o IDENTIFYING NAME
o TYPE OF THE SHAMPOO

3. How important does the brand name of the shampoo?

o NOT IMPORTANT
o IMPORTANT
o VERY IMPORTANT

4. How do you rate your present shampoo from the following

qualities-
o PACKAGING OF SHAMPOO
o COMPANY NAME
o PRICE OF THE SHAMPOO
5. Are you satisfied with the overall performance of your present
shampoo?
o satisfied
o dissatisfied

6. have you ever change new brand of shampoo?

o YES
o NO

7. What are the factors that you consider when you purchase the
shampoo?
o PARENTS SUGGESTION
o FRIENDS SUGGESTION
o T.V, ADS

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 8. Which companys advertisement do you prefer more?
o HUL
o P&G
o GODREJ
o J&J

9. What in the premium segment which shampoo do you use?

o DOVE
o TRESSEME
o LOREAL
o ALL OF THEM

10.At what extent the price of the shampoo affects your purchasing
will?
o NOT REALLY
o TOO MUCH
o DEPENDS ON BRAND

36