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A research report

On
COMPARATIVE STUDY ON Sahara Q SHOP &

BIG BAZAAR.
Towards partial fulfillment of Integrated MBA (BBA + MBA)

Guided By: Submitted By:

MRS. TANISHA TANDON ABHISHEK KR. SINGH


4th Semester
Roll No. 1130675002

BBD UNIVERSITY
FAIZABAD ROAD, LUCKNOW (U.P.), INDIA

School Of Management
Session: - 2014-15
DECLARATION

I hereby a firm that the present survey done on Marketing Strategies on Sahara Q-shop and Big Bazaar is
my own and has not been submitted previously.

I was thus assigned research at Lucknow Producer Co-operative Milk Union Limited My research has
been fully experience for me. Now I have broad idea of functioning of organization and this will be very
helpful for me in the coming days.
ACKNOWLEDGEMENT

Life is a process of accumulating and discharging debts, not all of those can be measured. We cannot
hope to discharge them with simple words of thanks but we can certainly acknowledge them.

At this level of understanding it is often difficult to comprehend and assimilate a wide spectrum of
knowledge without proper guidance and advice. Hence I would like to thanks Respected Mrs. Tanisha
Tondon for her support, Nobel Guidance and Encouragement, which maid this project successful.

I express my sincere gratitude to my industry guide Mr. V.K Saxena (Marketing Manager) of Lucknow
producers cooperative milk union ltd, Lucknow for his able guidance, continuous support and
cooperation throughout my research without which the present work would not have been possible.

I pay my sincere thanks to entire team of, Lucknow producers cooperative milk union ltd, Lucknow for
the constant support and helping in the successful completion of my research reports.

Abhishek Kr. Singh


4th Semester
Roll No. 1130675002
TABLE OF CONTENT

Introduction

Company Profile

Research methodology

Data analysis

Interpretation of data

Finding

Limitation

Suggestion

Annexure

Bibliography
INTRODUCTION
Organized retail is gaining tremendous importance in the recent times. On the
other hand, the retail industry is also facing severe competition and those who are
able to retain their customers are the ones that are able to succeed in the market
place.

Sahara Q Shop is the brand name of Sahara India Mega Quality Consumer Merchandise FMCG
Retail Venture. It is also a retail organization but its a Small scale industry than Big Bazaar.

Big bazaar is the largest hypertext chain in India. Big Bazaar is owned by Future Group. Their
strategy is based on understanding Indian customers the product which they want and making
these product available in every city. They claim to offer best product at best prices.

This study is a part of IMBA Programme , which is very helpful in getting practical knowledge
in this globalization world. Now-a-days only theoretical knowledge is not enough to success in
life but most important we must have practical knowledge. Main purpose of this study is to find
out the marketing strategies on Sahara Q-shop and Big bazzar for the sales of product in
Lucknow. It will find out special emphasis on the various strategies on Sahara Q-shop and Big
bazzar. This study will help me to know the strategies and potential of Store also to upgrade my
knowledge related to practical aspect of business world which is very helpful in my career building.

DAIRY INDUSTRY

PROFILE :

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy
processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the
galloping progress around the world. As he expands his overseas operations to India many
profitable options await him. He may transfer technology, sign joint ventures or use India as a
sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's
and foreign investors alike.
Indias dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West. Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today
would have to withdraw the support and subsidy to their

domestic milk products sector. Also India today is the lowest cost producer of per liter of milk in
the world, at 27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take
advantage of this lowest cost of milk production and increasing production in the country
multinational companies are planning to expand their activities here. Some of these milk
producers have already obtained quality standard certificates from the authorities. This will help
them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43, 500 crores by year 2005. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase in the conversion of milk
into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10, 00,000
million. Presently the market is valued at around Rs7, 00,000mn.

BACKGROUND

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The co-operative societies
are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy
federation. Milk production gives employment to more than 72mn dairy farmers. In terms of
total production, India is the leading producer of milk in the world followed by USA. The milk
production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year.
This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn
cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent. The milk production in India accounts
for more than 13% of the total world output and 57% of total Asia's
production. The top five milk-producing nations in the world are India, USA, Russia, Germany
and France.

Although milk production has grown at a fast pace during the last three decades (courtesy:
Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

Lack of use of scientific practices in mulching.


Inadequate availability of fodder in all seasons.
Unavailability of veterinary health services.
COMPANY OVERVIEW
Name of the organization: Lucknow Producers Co-Operative Milk Union Limited

Address of the organization: 22, Jopling Road, Lucknow

Established: 1938

Registration: 23rd March 1938

First Dairy Inspector : N. K. Bhargava

Place of establishment: Initially at Charbagh,

Shifted to Ganeshganj.

Presently at 22, Jopling

Road, Lucknow

Founder : Rai Bhadur Gopal Lal Pandya

Board of Directors : Mr. Gopal Pandya

Mr. N.C.Chaturvedi

Mr. Tej Shanker

Mr. Pushkar Nath Bhatt

Per day production of milk : Initially 4000 liters

Location : Initially Charbagh,

Now Present - : 22, Jopling Road, Lucknow

Area of Distribution : Initially- Bakshi ka

Talab, Tewariganj, Gosainganj


Despite several setbacks and hurdles the co-operative has steadily progressed. Operation Flood-II, which
was implemented in U.P in the year 1983-84, provided the much needed to the co-operative. For the past
few years Lucknow Pradeshik Co-operative Dairy Federation has maintained its lead in area such as
distribution, handling and revenue.

MANAGEMENT THE FORCE WITHIN

The organization boasts of more than 3000 employees that cover a whole range of highly qualified and
motivated professional- MBAs, CAs, Engineers, Dairy Technologists, chemists and Veterinarians.

INFRASTRUCTURE (PLANT & MACHINERY)

The organization is equipped with sophisticated plants & machinery to manufacture Ghee, butter, Milk
powder and other dairy products on a big scale.

PCDF has also distinction of having the most sophisticated & fully computerized first vertical dairy in
India. This is a state of the art project with its various sections located in the basement and three floors
of the building. A well-equipped central quality control laboratory is based at Lucknow with checks
the organoleptic chemical & microbiological quality of the products.

MARKETING:

The federation is marketing milk & milk products, under a common brand name PARAG.

The clientele includes several prestigious institutions in UP & Delhi besides the Indian army. The sales
network is spread throughout northern India. Although PCDF believe that a satisfied customer is
their best advertisement.

OTHER PROGRAMMES:

Due to its reputation, efficiency, wide network and quality manpower, PCDF is currently implementing
following developmental and promotional programmes supported by central/state govt.
Integrated mini dairy project (IMDP)
Women dairy project (WDP)
Rural family welfare projects (RFWP)
Diversified agriculture support project(DASP)

These programme have won many laurels for PCDF adding further to its reputation. PCDFs real sense of
pride lies in the facts that its farmer member are heading surely and steadily towards a prosperous future
and the knowledge that its consumers reaffirm their faith in PARAG, year after year. It is in this context,
that PCDFs success is to be measured.

Parag is an Indian dairy cooperative. The Word Parag is derived from the Sanskrit word,
meaning pollen of flower. It is a brand managed by a cooperative body (PCDF). A Milk
Cooperative, perceived as a business organization, is simply a group of people who have
willingly pooled in resources and energies to pursue a common goal out of which they derive
mutual benefits

Uttar Pradesh is the largest milk producing state of India contributing 17 % of the total
milk production of India. In the year 2010-2011, the total milk production in the state was
21033.3 thousand kg. per day
A milk cooperativ society in a village in Allahabad district set up in 1918 marked the
beginning of milk cooperatives in Uttar Pradesh
Successful efforts gave way to formation of Lucknow Milk Union in 1938-the only Milk
Union in the country -giving Uttar Pradesh the credit of being a pioneer state in the
country in this segment
PCDF (P r ad e shi k C o - op er at i v e D ai r y F e d e ra t i o n ) was the chosen agency to
implement the World Banks prestigious Operation Flood programme in the state
At present PCDF lends its support and services to 6,00,000 rural milk producers through
59 District Milk Unions and about 13,500 Village Dairy Cooperatives in the State
Parag is the brand name for a range of milk and milk products including- Milk , Skimmed
Milk Powder, Whole Milk Powder, Butter , Ghee, and an array of indigenous milk
products like Paneer,Curd,Peda,Milk Cake, Khoa, Laddu, Mattha and Chhachh etc.
Plants in Meerut and Varanasi, are in constant operation to supply balanced diet feed for
milch animals owned by farmers of the state
Training centres ,situated in Kanpur, Lucknow, Meerut, Varanasi, Agra and Rae Bareilly,
impart both skill and awareness based trainings
A Jersey Cattle breeding unit is located in Rae Bareilly, for rearing of Jersey Bulls
MARKETING STRATEGIES OF COMPANY

INDUSTRIAL MARKETING MIX

The establishment or once objective and preparation a strategic marketing plan which is cooperative the
various appropriate method or reaching these object.

o Product quality
o Product development
o Product price
o Product range
o Sales promotion
o After sale service
o Advertising
o Market research
o Stock level
o Unit of sale
o Distribution arrangements
o Cash discount
o Packaging
o Sampling
The distribution channel

Distribution is also a very important component of Logistics & Supply chain management.
Distribution in supply chain management refers to the distribution of a good from one business to
another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined
as a chain of intermediaries; each passing the product down the chain to the next organization,
before it finally reaches the consumer or end-user. This process is known as the 'distribution
chain' or the 'channel.' Each of the elements in these chains will have their own specific needs,
which the producer must take into account, along with those of the all-important end-user.
Channels
A number of alternate 'channels' of distribution may be available:
Distributor, who sells to retailers,
Retailer (also called dealer or reseller), who sells to end customers
Advertisement typically used for consumption goods
Distribution channels may not be restricted to physical products alice from producer to consumer
in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may
sell their services (typically rooms) directly or through travel agents, tour operators, airlines,
tourist boards, centralized reservation systems, etc. process of transfer the products or services
from Producer to Customer or end user.
There have also been some innovations in the distribution of services. For example, there has
been an increase in franchising and in rental services - the latter offering anything from
televisions through tools. There has also been some evidence of service integration, with services
linking together, particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a significant increase
in retail outlets for the service sector. Outlets such as estate agencies and building society offices
are crowding out traditional grocers from major shopping areas.
Channel decisions

Channel Sales is nothing but a chain for to market a product through different sources.
Channel strategy
Consumer location
Type of marketing channel

Intensive distribution - Where the majority of resellers stock the 'product' (with convenience
products, for example, and particularly the brand leaders in consumer goods markets) price
competition may be evident.
Selective distribution - This is the normal pattern (in both consumer and industrial markets)
where 'suitable' resellers stock the product.
Exclusive distribution - Only lambard specially selected resellers or authorized dealers (typically
only one per geographical area) are allowed to sell the 'product'.
Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales and service
support. Motivating the owners and employees of the independent organizations in a distribution
chain requires even greater effort. There are many devices for achieving such motivation. Perhaps
the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the
channel to push the product rather than its competitors; or a compensation is offered to the
distributors' sales personnel, so that they are tempted to push the product. Julian Dent defines this
incentive as a Channel Value Proposition or business case, with which the supplier sells the
channel member on the commercial merits of doing business together. He describes this as selling
business models not products.
Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities need to be
monitored and managed, so will those of the distribution chain.
In practice, many organizations use a mix of different channels; in particular, they may
complement a direct salesforce, calling on the larger accounts, with agents, covering the smaller
customers and prospects. These channels show marketing strategies of an organization. Effective
management of distribution channel requires making and implementing decision in these area.
Specific distribution-related decisions include:
the number of layers between the company and the customer (channel depth) the specific type
of partners in each layer (e.g. wholesalers or distributors, mass merchants or high-end specialty
retailers)

the number of partners at each layer (channel breadth), and the geographic placement of
partners (location, density).
These strategic and logistical decisions frame the distribution channels (from a marketing
perspective) or downstream supply chain (from an operations perspective) for a company's
product
For example, Coke seeks to be ubiquitous ("always within an arm's length") with very broad
distribution across markets via numerous outlets of many different types (e.g. grocery and
convenience stores, restaurants, vending machines).
At the other end of the continuum, some companies choose to distribute their products through
relatively few, geographically clustered specialty stores (e.g. innovative, tech-based entertainment
products - like TiVo -distributed through electronics stores like Best Buy or Circuit City), or may
restrict distribution to protect retailers' margins (e.g. "hot" toys exclusively available at Toy 'r
Us).
A retail distribution strategy is driven by three inter-related objectives: broadening market
coverage, enlisting product support (from retailers) and containing channel conflict (among
retailers).
The primary objective of distribution strategy is to provide sufficiently broad, gap-free
market coverage, i.e. being available in enough outlets so that customers have convenient access
for purchases.
Retailers are gatekeepers since they decide whether or not to carry products based on their
prospective retail profitability, considering factors such as:
- Gaps (versus duplication) in the retailer's product line assortment
- Track record (credibility) of the supplier
- Projected retail margins (initially and over time)
- Anticipated promotion support (e.g. advertising, displays, "deals")
Historically, manufacturers - especially big national brands - held the balance of power over most
retailers and could, more or less, force them to carry products and provide support. In the past
couple of decades, though, the balance of power has generally shifted to the retailers, largely due
to retail consolidation (the big have gotten bigger) and the emergence of power retailers like Wal-
mart and Home Depot.
The second retail distribution strategy objective is to enlist product support.
More specifically, a company needs to select and motivate partners who:
Maintain adequate inventories

Display the product in desirable locations (e.g. eye-level shelves, high traffic areas)
Advertise and promote (special displays and signing, discounted sales prices,
inclusion in flyers and ads)

Sell the product (educating customers, demonstrating the product, 'closing the sale')

Install and service the product

The specific support (level and type) that a product requires hinges primarily on the product
characteristics (simple or complex; high end or mass market; position along the product life
cycle).
At the most basic intuitive level, the required support depends on whether a product is "bought"
(well known and demanded), or needs to be "sold" (unrecognized product, brand or need). The
former benefit from distribution that is broad and deep, and don't require extensive in-store
support. The latter are best served by more selective distribution through specialty stores with
highly motivated, well-trained salespeople who can educate customers and close sales.
The third retail distribution strategy objective is to contain channel conflict.
Given that their prospective profitability is the primary reason that retailers carry products,
projected profit margins and sales volume are critical variables.
On a macro basis, a product's inherent market value drives customer demand, and largely
determines aggregate sales volume and average pricing.
On a more micro basis (i.e. from the perspective of a specific retailer), sales are a share of the
total sales volume in a specific trading area and margins are a direct function of prevailing (or
lowest prices) offered by competing retailers.
Horizontal channel conflict is increasingly common in real life as companies attempt to reach
different customer segments by utilizing multiple distribution channels (including direct from the
manufacturer).
More specifically, when multiple channels are employed and distribution intensity increases,
three profit threats may confront a retailer:
Sales cannibalization: when a retailer loses sales to a newly authorized retailer
Margin dilution: when aggressive retail competition drives retail prices down
Customer diversion: when customers get sold by one retailer,
but buy from another offering lower prices.
So, the dominating distribution objective, broadening market coverage (i.e. increasing customers'
convenience), is somewhat at odds with the other two objectives - enlisting product support and
avoiding channel conflict. While a company may want broad rather than selective distribution,
and may want to attack different market segments though multiple channels of distribution, the
stark reality is that intensive hybrid distribution may, if not very carefully managed, result in
horizontal channel conflict, deteriorating retail economics, and eventual loss of critical retail-level
product support.
Once the retail distribution strategy is set, the management focus shifts to distribution logistics
(i.e. moving goods from the manufacturer, through any intermediaries, to the customer).
To achieve its strategic distribution objectives, a company may choose to use few layers of
intermediaries (called short distribution channels), or relatively many layers (long distribution
channels).
supporting the strategic objectives, refers to the storage and movement of goods, information, and
money between the manufacturer and the final customer. Logistics is sometimes inappropriately
viewed as an exclusive operations function. In reality, marketing often has a major role in the
day-to-day logistics process with responsibilities ranging from sales forecasting and demand
management to inventory planning and the allocation of short supplies.

Specific distribution-related decisions include:


(1) the number of layers between the company and the customer (channel depth)
(2) the specific type of partners in each layer (e.g. wholesalers or distributors, mass merchants
or high-end specialty retailers)
(3) the number of partners at each layer (channel breadth), and the geographic placement of
partners (location, density).
These strategic and logistical decisions frame the distribution channels (from a marketing
perspective) or downstream supply chain (from an operations perspective) for a company's
products.
More specifically, a company's distribution strategy is largely defined by decisions on the number
and type of customer interfaces. That is, order entry points (where and how orders are placed) and
fulfillment nodes (where and how customers obtain finished goods).
For consumer products, the fulfillment approach is a retail distribution strategy that can range
from exclusive distribution though select retailers, or intensive distribution through a multitude
of stores.
For example, Coke seeks to be ubiquitous ("always within an arm's length") with very broad
distribution across markets via numerous outlets of many different types (e.g. grocery and
convenience stores, restaurants, vending machines).
At the other end of the continuum, some companies choose to distribute their products through
relatively few, geographically clustered specialty stores (e.g. innovative, tech-based entertainment
products - like TiVo -distributed through electronics stores like Best Buy or Circuit City), or may
restrict distribution to protect retailers' margins (e.g. "hot" toys exclusively available at Toy 'r
Us).
A retail distribution strategy is driven by three inter-related objectives: broadening market
coverage, enlisting product support (from retailers) and containing channel conflict (among
retailers).
The primary objective of distribution strategy is to provide sufficiently broad, gap-free
market coverage, i.e. being available in enough outlets so that customers have convenient access
for purchases.
Retailers are gatekeepers since they decide whether or not to carry products based on their
prospective retail profitability, considering factors such as:
- Gaps (versus duplication) in the retailer's product line assortment
- Track record (credibility) of the supplier
- Projected retail margins (initially and over time)
- Anticipated promotion support (e.g. advertising, displays, "deals")
- Compatibility of logistics infrastructures (location of facilities, information systems)
- The supplier's market position (clout)
In part to defray initialization costs and mitigate risk (to the retailer), an increasing number of
retailers have instituted slotting fees, payments made to the retailer whenever new products are
adopted. Slotting fees are highly controversial since, in essence, they erect de facto economic
barriers excluding all but the biggest, most deep-pocketed suppliers.
The second retail distribution strategy objective is to enlist product support.
More specifically, a company needs to select and motivate partners who:
(a) Maintain adequate inventories
(b) Display the product in desirable locations (e.g. eye-level shelves, high traffic areas)
(c) Advertise and promote (special displays and signing, discounted sales prices,
inclusion in flyers and ads)
(d) Sell the product (educating customers, demonstrating the product, 'closing the sale')
(e) Install and service the product
The specific support (level and type) that a product requires hinges primarily on the product
characteristics (simple or complex; high end or mass market; position along the product life
cycle).
At the most basic intuitive level, the required support depends on whether a product is "bought"
(well known and demanded), or needs to be "sold" (unrecognized product, brand or need). The
former benefit from distribution that is broad and deep, and don't require extensive in-store
support. The latter are best served by more selective distribution through specialty stores with
highly motivated, well-trained salespeople who can educate customers and close sales.

The third retail distribution strategy objective is to contain channel conflict.

Given that their prospective profitability is the primary reason that retailers carry products, projected
profit margins and sales volume are critical variables.

On a macro basis, a product's inherent market value drives customer demand, and largely determines
aggregate sales volume and average pricing.

On a more micro basis (i.e. from the perspective of a specific retailer), sales are a share of the total sales
volume in a specific trading area and margins are a direct function of prevailing (or lowest prices) offered
by competing retailers.

The implication is that the intensity of competition among retailers is a major driver of retailer support (or
lack thereof). Invariably, as a product's distribution base is broadened (more accounts, stores, and types
of stores are added), the likelihood of horizontal channel conflict increases. In most instances, horizontal
channel conflict boils down to a question of economics: retailer profits are pushed below acceptable
levels as a result of direct or indirect competitive behavior. As their economics deteriorate, retailers'
support for a product understandably deceases.

Horizontal channel conflict is increasingly common in real life as companies attempt to reach different
customer segments by utilizing multiple distribution channels (including direct from the manufacturer).

More specifically, when multiple channels are employed and distribution intensity increases, three profit
threats may confront a retailer:
(1) Sales cannibalization: when a retailer loses sales to a newly authorized retailer

(2) Margin dilution: when aggressive retail competition drives retail prices down

(3) Customer diversion: when customers get sold by one retailer,


but buy from another offering lower prices.

So, the dominating distribution objective, broadening market coverage (i.e. increasing customers'
convenience), is somewhat at odds with the other two objectives - enlisting product support and
avoiding channel conflict. While a company may want broad rather than selective distribution, and
may want to attack different market segments though multiple channels of distribution, the stark
reality is that intensive hybrid distribution may, if not very carefully managed, result in horizontal
channel conflict, deteriorating retail economics, and eventual loss of critical retail-level product
support.

Once the retail distribution strategy is set, the management focus shifts to distribution logistics (i.e.
moving goods from the manufacturer, through any intermediaries, to the customer).

To achieve its strategic distribution objectives, a company may choose to use few layers of
intermediaries (called short distribution channels), or relatively many layers (long distribution channels).
SALE PROMOTION

Sales promotion is different promotion, Sales promotion refers to those marketing activities other than
personal selling, advertisement and publicity, which stimulate consumer purchasing and dealer
effectiveness, such as displays, shows and expositions, demonstrations and various non-recurrent selling
efforts not in the ordinary routine. Its purpose is to increase the desire of salesman, distributors and
dealers to sell a certain brand and to make consumers more eager to buy that brand. This includes sales
activities which supplement both personal selling and advertising.

Sales promotion is only a part of promotion. Promotion includes sales promotion, advertising, personal
selling etc. Promotion helps to make all other marketing activities more effective and efficient, but sales
promotion helps only to sales activity. Sales promotion may be done with the help of tools like displays,
exhibitions, free sample coupons, premium etc. Sales promotion acts as a link between advertisement and
personal selling.

To sum up, promotion is to make the demand inelastic, while there is change in the price. So promotion
must stimulate the consumers to buy more.

Communication and promotion

Marketing communication involves, sharing of meaning, information, concepts, about the products and
services by buyers and sellers. Such communications are conveyed with the help of advertisement,
salesmanship and sales promotion. A communication will be treated as effective only when it is properly
responded by the buyer. The communication must have identical meaning for both sender and receiver. If
the communication does not properly reach the receiver or the message received is not the same as the
message sent, then that will be called Break down at the message stage. In the market communication,
feed back means a response, a reaction over the message sent back by a customer to the sender. In the
case of effective communication feed back will be always present.

Need for Product Promotion

a) To introduce a new product in the market.


b) To influence the public with the help of new uses of the product.
c) To increase the frequency of purchase by each buyer.
d) To encourage dealers to stock more goods.
e) To withstand in the competitive field.
f) To increase the sales by imparting special training to salesmen and by window display.

Effects of Promotion

1. The present day market is very competitive due to the large number of rivals and substitutes. With the
help of promotion producer must create product differentiation in the minds of consumers.
2. Promotion is very essential to communicate the use of the product and the nature of the product to
consumers and middlemen
3. Nowadays most of the consumers market their products in wider area and the consumers are also very
large in number. In such cases personal selling alone cannot be used and so all the steps for promotion are
to be followed.
4. During the periods of depression it is essential to maintain at least some minimum market. Therefore it
is very essential to use promotion.

Promotional Strategy

1. Deciding Promotional Mix

(a) Nature of the product

(b) Nature of the Customer

(c) Nature of the Market.

(d) Availability of Funds

The amount of funds available for promotion will decide the promotional mix. The companies having
huge funds for promotion will favor advertisement and try to cover wider market. If the funds are
available are less than maximum portion of such funds will be allocated for personal selling in a limited
area. These funds may be used for window display also.

Internal
External
Internal reasons

Top managements is more conducive to spending on promotions.


Line manager under greater pressure to achieve targets
Justification of expending is easy.
External reason

Increase in number of brand


Greater pressure from trade to liquidate stocks
SP is two type

Trade
Consumer

Trade promotion

liquidating heavy inventories


Persuade retailers to carry stock, carry more usual stock, promote brand franchise
Consumer promotion

Stimulate purchase
Induce trial
Create new use
Increase repurchase from occasional customers
Reward loyal customers.
Forms the trade promotion

Bulk discounts
Free material
Display windows
Redistribution incentive Shop salesmen incentive
Form of consumer promotion

Free sample free gift


Coupons
In packs
Price packs
Price off
Bundling offer
While the advertising budgeting are controlled by the manager, SP budgeting usually are
controlled by the sales managers

The more the products quality and its advertising


CONSUMER FOCUS

Many companies today have a consumer focus (or consumer orientation).This implies that the company
focuses its activities and product on consumer demands. Generally there are three way of doing this:

1. The customer-driven approach,


2. The sense of identifying market change and
3. The product innovation approach.

The customer-driven approach-

Consumer wants are the derived all the strategic marketing decision. No strategy is pursued unstill it
passes the teat of consumer research. Every aspect of a market offering, including the nature of the
products itself is derived by the need of potential consumer the start point is always the consumer .The
rationale for the approach is that there no points spending R&D funds developing products that people
will not buy .History attested to many product that were commercial failures in sprite of being technology
break through.

Former approach of this consumer focused marketing is known as SIVA (solution Information value and
Access,).This system is basically the 4ps remand and reworded to provide a consumer focus. The SIVA
model provided a demand /costumer centric version alternative to the known 4ps supply side model of
marketing managements.

1. product solution
2. promotion information
3. price value
4. Place access
The four elements of the SIVA model are:

Solution
Information
Value
Access
SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

Strength

There are following major strength of the traditional dairy products sector:

The mass appeal enjoyed by the wide variety of product.


The market for these products for exceeds that for western dairy product like milk powder.
There operating margin are also much higher than the western products.
Weakness

Low advertisement of the other product


Milk consumed by worker
Trucks are not fully load
Complains are very high regard ding leakage sour of milk etc
Availability of Parag in other district is very low.
Awareness of Parag website is very low.
The preparation and market and marketing these of products is generally done by always and that
limits development in the sector.
The practice of inadequate hygiene is the preparation &handing of these products.
Opportunity

The expending business prospect provide by these product and their accompanying value addition ,call
for a though study of this sector I would facilities packed and increase in product and marketing of
hygienically prepared and property packed products to meet the demand of a growing population has been
demonstrated at the NDBS Sugam Dairy.

THREATS

Milk vender the un organized sector .Today milk vender is occupying the pride of place in the industry.

Organized dissemination of information about the harm that they are doing to the producer and consumer
should see a steady decline in their importance
OBJECTIVE OF THE STUDY

To comparatively analyze the differences and similarities between both the Companies.
To know the customers queries, comments and suggestions about both the store and
its products.
To know the working department of both the stores.
To look the current trends in the Indian organized retail industry.

RESERARCH METHODOLOGY
Research Methodology is the procedure adopted for conduction the research study.
Research Methodology should be carefully planned as the accuracy.
RESEARCH DESIGN: -
Sample Size : 200
Research Design
Source of Data Collection : All the outlets of Q shop in Lucknow and 4 branches of Big
Bazaar
Research Area : Customers ranging from 20 years till 80 Years, who shop from these
stores.

DATA INFROMATION: -
Primary Data

Through Questionnaire.

Through Direct Interview.

Secondary Data
Books : Marketing Management - Philip Kotler
Websites: www.saharaqshop.com
www.bigbazaar.net
www.studymode.com
Past Records and Files

SAMPLE PLAN: -
Universe - LUCKNOW
Sampling: PROBABILISTIC SAMPLING METHOD:-

Probability sampling methods are those in which every item in the universe has a known chance,
or probability of being chosen for the sample. This implies that the selection of samples items is
independent the controlled objectively so that items will be chosen at random.

DATA ANALYSIS AND INTERPRETATION

After collection of data, next task of research process is analysis and interpretation of data.
Questionnaire is processed and edited to make sure that all question are answered. He resulting
data should be logical and consistent. After editing, data are tabulated and analyzed. Data
analysis includes the statistical test which may be editing, coding, tabulation, interpretation.
Coding is the assignment of numbers to the observation so that data can be analyzed, whereas
tabulation refers to classification and cross classification of observed data.

1) Which store do you prefer first?


2) Which company gives you at lower price and better quality products?
3) Which companys employees are more customer friendly?

LIMITATION: -

1) Since the study was done in localized area so the sample selected may not give true
picture.
2) The time period allotted for the study was limited as it had to be completed with this stipulated
period of time.
3) Some people dont give the remarkable answer, so the surveyor has to make his own
assumption.
4) The Sample was limited only customers who have made a purchase at the stores.
5) Respondents show reluctance towards given correct information.
6) As per the companys rules, many information were not disclosed.
7) The HR personnel were too busy in their schedule, it was not possible to collect proper info and
spend much time with them.

RECOMMENDATION AND SUGESTION: -

Steps should be taken to minimize the long queue at the billing counter.
Effective after sale services.
Seating arrangement must be made customers as well as for employee also.
Customer Care Centre to guide and council about customer loyalty program.
There must be good online procedures techniques available for customers so that they
can easily buy the products.

CONCLUSION: -
Most of the customers purchase decision depends upon the quality of the milk and price of milk.
Time availability also affects their purchasing decisions. Customer is fully satisfied with its
distribution channel, time availability, and other facility.

BIBLIOGRAPHY: -
Books:-

Research Methodology - C.R. Kothari

Marketing Management - Philip Kotler

Websites: - - paragmilkup.in

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