MBA Project Report Sales Promotion

2011
A STUDY ON SALES PROMOTION ANALYSIS WITH REFERENCE TO HIND COSMETIC PALAKKAD.
A STUDY ON SALES PROMOTION ANALYSIS WITH

REFERENCE TO HIND COSMETIC PALAKKAD.
PROJECT REPORT
Submitted by
**********************
Register No: *********************
in partial fulfillment for the award of the degree

Of
MASTER OF BUSINESS ADMINISTRATION
In
DEPARTMENT OF MANAGEMENT STUDIES

SSM COLLEGE OF ENGINEERING
KOMARAPALAYAM-638183
JULY 2010
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SSM COLLEGE OF ENGINEERING

KOMARAPALAYAM-638183
Department of Management studies
PROJECT WORK
JULY 2010
This is to certify that the project entitled

A STUDY OF SALES PROMOTION
ANALYSIS WITH REFERENCE TO HIND COSMETIC
is the bonafide record of project work done by
****************************
Register No: *****************************
of MBA (DEPARTMENT OF MANAGEMENT STUDIES) during the
year 2010-2011
--------------------- --------------------------------
Project Guide Head of the Department
Submitted for the Project Viva-Voce examination held
on_______________
--------------------------- ----------------------------
Internal Examiner External Examiner
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DECLARATION
I affirm that the project work titled A STUDY ON SALES PROMOTION WITH
REFRENCE TO HIND COSMETIC PALAKKAD being submitted in partial
fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION is the
original work carried out by me. It has not formed the part of any other project
University.
I certify that the declaration made above by the candidate is true
Mr.
LECTURER
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ACKNOWLEDGEMENT
I am deeply indebted to the management of S.S.M college of Engineering,

Komarapalayam, for giving me this ample opportunity to do the project work.
I feel great pleasure to thank our beloved

*******************************************************************, Principal
*****************************************S.S.M College of Engineering,
Komarapalayam, ************************* and *******************************.,
***************, PhD who provided with us all facilities during the course of study.
I am also thankful to ***************************************************

Department of Management studies, for giving us a valuable learning experience
by means of this Organizational studies.
I also thank all the faculty members of the Department of Management

studies, S.S.M College of engineering for their encouragement and support.
At the outset I would like to thank ******************************, head of the

marketing department for their valuable advice and guidance during my project
completion ,for timely help concerning various aspects of project. I also thanks to
all staff members of account department in Hind cosmetic for help me to complete
my project
Last but not least, I would like to thank all the respondents, Company staffs,
my parents, well wishers and friends who have directly and indirectly helped me to
complete this project. And to beloved god to give me the strength both in deal &
financial matter to complete this project.
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CONTENTS
Description Page no.
List of tables
List of charts
Abstract
1. Introduction
1.1 About the study 2
1.2 About the industry 3

1.3 About the company 6
2. Main theme of the project
2.1 Objectives of the study 22
2.2 Scope and limitations 23

2.3 Review of literature 25
2.4 Methodology
27
3. Analysis & Interpretation 34
4. Findings, Recommendations and

Conclusion
4.1 Findings 53
4.2 Recommendations 54
4.3 Conclusion 55
Appendix 56
Bibliography 59
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LIST OF TABLES
TABLE
S.NO NO DESCRIPTION PAGE
NO
EFFECT OF MEDIA
1 3.1 27
DEALER DEMONSTRATION
2 3.2 29
SUCCESS OF ADVERTISEMENT MESSAGE
3 3.3 30
CUSTOMER SATISFACTION
4 3.4 32
NEED FOR ADDITIONAL ADVERTISEMENT AND SALES
5 3.5 34
PROMOTIONAL ACTIVITIES
CUSTOMER DEALER RELATIONSHIP

6 3.6 35
SATISFACTION WITH SALES PROMOTIONAL
7 3.7 36
ACTIVITIES
DELIVERY MODE OF DEALER

8 3.8 37
PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION
9 3.9 38
GIFTS GIVEN BY COMPANY
10 3.10 39
SATISFACTION WITH PRICE OF THE PRODUCT
11 3.11 41
12 3.12 42
DIRECTING MARKETING STRATEGY
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SATISFACTION WITH PRICE OF THE PRODUCT 43
13 3.13
CHI-SQUARE TEST FOR SIGNIFICANCE

14 3.14
WEIGHTED AVERAGE TEST

15 3.15 44
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LIST OF CHARTS
CHART
S.NO NO DESCRIPTION PAGE
NO
EFFECT OF MEDIA
1 3.1 36
DEALER DEMONSTRATION 37
2 3.2
SUCCESS OF ADVERTISEMENT MESSAGE 38
3 3.3
CUSTOMER SATISFACTION 39
4 3.4
NEED FOR ADDITIONAL ADVERTISEMENT AND SALES 40
5 3.5
PROMOTIONAL ACTIVITIES
CUSTOMER DEALER RELATIONSHIP 41

6 3.6
SATISFACTION WITH SALES PROMOTIONAL 42
7 3.7
ACTIVITIES
DELIVERY MODE OF DEALER 43

8 3.8
PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION 44
9 3.9
10 3.10 GIFTS GIVEN BY COMPANY 45
11 3.11 SATISFACTION WITH PRICE OF THE PRODUCT 46
12 3.12 47
DIRECTING MARKETING STRATEGY
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SATISFACTION WITH PRICE OF THE PRODUCT 48

13 3.13
14 3.14 CHI-SQUARE TEST FOR SIGNIFICANCE 49
15 3.15 WEIGHTED AVERAGE TEST

50
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ABSTRACT
This project work is based on A STUDY ON SALES PROMOTION WITH

REFERENCE TO HIND COSMETICS , PALAKKAD.The main objective of the
study is to know the effectiveness of sales promotion activities.
The first chapter of the study explains about brief outline of the study, the
company profile and industry profile. The second chapter deals with objectives of
the study, scope and limitation and methodology applied. The third chapter
explains about analysis and interpretation. The primary data are collected through
questionnaire and secondary data collected through internet, books, journals etc.
On the basis of the questionnaire prepared and its responses the analysis and
interpretation is done. The fourth chapter deals with findings, recommendations
and conclusion.
Researcher in common refers to a search for knowledge. The Researcher

selected descriptive research for study. The technique used here is random
sampling. Sampling size is 175, after collecting data it should be analyzed by table
and diagrams.
The researcher analyzed all those data with the help of various statistical
tools such as percentage analysis, chi square analysis, weighted average Some of
the valuable suggestions are the company can improve sales if the management
provide more advertisement through various media. The company must look for
the price of their product against their competition.
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CHAPTER 1
INTRODUCTION
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1.1 INTRODUCTION ABOUT THE STUDY
The role of selling has become more complex because

producers are more technical, buyers are more sophisticated and the
competition has become more intense. This has necessitated the need for
proper flow of communication from the producer to the consumer either
along with the product or well in advance of the introduction of a product into
the market. Successful marketing consists in offering the right product at the
right price at the right place and time with right promotion.
Promotion is an exercise in information, persuasion and influence.

Promotion has come to mean the overall co-ordination of advertising,
selling, publicity and public relations. Promotion is a helping function
designed to make all other marketing activities more effective and efficient.
Advertising and sales promotion are the central elements in a company's
communication strategy.
DEFINITION
The American marketing Association to bring a semblance of

uniformity and better understanding in the semantics jungle in the field of
marketing. It defined `Advertising as any paid form of non personal
presentation and promotion of ideas, goods or services by an identified
sponsor'.
Sales Promotion is defined by the American Marketing Association in a

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specific sense to mean: those Marketing activities, other than personal

selling. advertising and publicity that stimulate consumer purchasing behavior
and dealer effectiveness, such as display, shows and exhibitions,
demonstrations and various non recurrent selling efforts not in the ordinary
routine.
1.2 INTRODUCTION ABOUT THE INDUSTRY
Developing markets such as India are an important source of growth for

Unilever. The company is adopting unique marketing approaches to increase
consumption of its products in these regions, positioning itself as an ethical brand
that benefits wider society.
Unilevers Lifebuoy Swasthya Chetna (Health Awakening) campaign is

one example. This educates people on the importance of health and hygiene in
preventing diarrhoea and encourages them to adopt a simple hand-washing
regime using soap. Swasthya Chetna is Indias largest ever rural health and
hygiene education program.
Diarrhoea is the worlds leading preventable cause of death, killing 2.2

million people every year including 600,000 Indian children under the age of five.
According to a study by the London School of Tropical Hygiene, washing hands
with soap and water can reduce instances of diarrhoea by 47%.
Many potential Lifebuoy customers live in remote, rural areas which can be
hard to reach through conventional media. Ogilvy worked with Lifebuoy to create a
direct communication campaign specially designed to raise awareness among
Indias largely rural and often illiterate population.
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Lifebuoy health officers visited 43,000 Indian villages and schools over five
years where they used product demonstrations, interactive visuals, competitions
and drama workshops to spread the health and hygiene message.
The program is based on the simple insight that visible clean is not actual
clean which was brought alive through a special Glowgerm UV demo. When held
under ultra-violet lamps, glowgerm powder glows on hands washed only with
water, symbolising germs on those hands, and does not glow on hands washed
with soap.
The program has reached 110 million rural Indians since it began in 2002.
Awareness of germs has increased by 30% and soap use has increased among
79% of parents and among 93% of children in the areas targeted. Soap
consumption has increased by 15%.
The campaign received recognition for its innovation and effectiveness,

winning Silver in the Rural Marketing Advertisers Association of India awards in
2006, and the grand prize at the Asian CSR awards 2007. It was also recognised
by the Indian government who created a special edition postal cover dedicated to
the campaign.
Lux has always believed in taking up ground-breaking endeavors and has

always enjoyed venturing with various brand associations, be it a Coffee Table
Book or A Lux Couture Show at the Lakme Fashion Week or coming up with a
Chocolate seduction soap. The new Lux Strawberry & Cream and Lux Peach and
Cream have a stronger fragrance, creamier lather and moisturizing beauty oils
which makes your skin soft and smooth Skin noticeably softer and perfumed
like
The latest addition in the Lux kitty is the all new Lux Festive Glow with
Honey for naturally radiant and admired skin, with milk cream, ubtan extracts &
honey. Not to forget Lux International which has Swiss Moisturizers in it!
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Everything about Lux, from the look and feel of the products and packaging
to the fragrances, is a delight to the feminine senses. In fact, Lux has been making
waves since 1924, when it launched the world's first mass-market beauty soap in
the US at a fraction of the cost of imported French soaps. Since then it has
expanded into other areas, including shower gels, bath additives, shampoos and
conditioners.
Soaps are useful for cleaning because soap molecules have both a
hydrophilic end, which dissolves in water, as well as a hydrophobic end, which is
able to dissolve non polar grease molecules. Although grease will normally adhere
to skin or clothing, the soap molecules can form micelles which surround the
grease particles and allow them to be dissolved in water. Applied to a soiled
surface, soapy water effectively holds particles in colloidal suspension so it can be
rinsed off with clean water. The hydrophobic portion (made up of a long
hydrocarbon chain) dissolves dirt and oils, while the ionic end dissolves in water.
Therefore, it allows water to remove normally-insoluble matter by

emulsification. In other words, while normally oil and water do not mix, the addition
of soap allows oils to dissolve in water, allowing them to be rinsed away.
We have seen the growth of cleanliness and of a recognition of the part

cleanliness plays in health and morale. We have traced the increase of
industrialization which has brought low-priced plumbing equipment, hot water in
the home, and washing machines within the reach of all. Each has made life better,
healthier, easier, and each has increased the consumption of soap.
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It is fitting that an industry which makes a product so basic to the health and
well-being of the people should be an aggressive, competitive, and enlightened
industry.
We are proud of the fact that the soap industry has played its part for the
welfare of the country as a whole and is ever alert to serve the public better. I hope
those of you who are already working in the industry will derive as much pleasure
from it as I have; and to those who have taken this course only because of an
outside interest in the subject of soap, let me just say, Come on in, the water is
fine!
1.3 INTRODUCTION ABOUT THE COMPANY
Hind Cosmetics is located at Palakkad, Kerala State. The company, being

the first extraction plant, forms a part of Keralas pride. Being located in the Gods
Own Country, it was cultivated dignity and honor for the state and people as well.
Hind Cosmetics was registered as a public limited company on 25 th September

1990. The company was listed in the stock exchanges of Mumbai, Chennai &
Cochin, a company having annual turnover of Rs. 50 crores is the largest
manufacturer of cosmetics field.
The company was started by the Oil millers association of Thrissur in Kerala
with an objective of minimising Oil loss. Earlier Roller mills were used for oil
production, but this cause loss. The technological advancements leads to solvent
extraction process, which made a turning point of development. The company first
to produce and distribute by pass protein cattle feed. Besides cattle feed, the
product line of the company consist of dairy, ice cream, etc.
It is marketed annually about 2.2 lakh tonnes of superior quality cattle feed.
Hind cosmetic is in the oil extraction industry for the past 32 years. The company
has secured the National Productivity Award for the year 2001-2002 for being first
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in the terms of production efficiency in animal feed section. This is the 6 th time in a
row that the company is being selected for this most coveted award.
Hind Cosmetic with a capital base of Rs.36 crores embarks on an expantion

to double its Solvent Extraction capacity & add most modern eco friendly vegetable
refining plant.
The company is a name trusted with thousands of people. Since its

establishments, its growth and development is remarkable and has built an image
offering quality products and it promises to maintain market leadership.
A hind cosmetic is one of the most recognizable Indian brands. Its story is a
classic example of the success of Indian entrepreneurship in the face of stiff
competition. Hind cosmetic took on the might of giant multinationals and wrote a
new chapter in the Indian corporate history. Starting as a one-man operation in
1969, today, hind cosmetics has about 14, 000 employee-base and annual
turnover of more than Rs. 25, 00 crores.
Founder of Hind is Dr. Karsanbhai Patel, son of a small-time farmer and a

qualified Science graduate. In 1969, the year he founded hind, Karsanbhai Patel
was working as junior chemist in Government laboratory. In the night Karsanbhai
used to make detergent in the 100 Sq. Ft. back yard of his home, using bare hands
and bucket. In 1960s and 1970s, the domestic detergent market had only premium
segment, with very few players and was dominated by MNCs. After making the
detergent Karsanbhai used to pack it in polythene bag and sold it door-to-door. He
priced the detergent at Rs. 3 per kg, when the available cheapest brand in the
market was Rs. 13 per kg. In a short span of time, with indigenous process,
packaging and low-profiled marketing, hind created an entirely new market
segment in domestic marketplace and quickly emerged as dominant market player.
Hind rewrote the marking rules and its success story became one of the widely
discussed case studies in the B-schools across the world.
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In the 1980s hind catapulted Surf, which was a well-established detergent

product by Hindustan Lever, and occupied the top slot in the detergent products
segment-a slot it has made its own. In 1990, hind entered the toilet soap market
and today it is the second largest toilet soap brand in India. Today, hind has one of
the largest volume sales with a single brand name in the world.
Consumer Products
Soaps: Bath Soap, Beauty Soap, Lime Fresh Soap, Rose, Sandal
Detergent: Washing Powder, Detergent Cake, Super Washing Powder,
Super Detergent Cake, Popular Detergent Powder, Popular Detergent
Cake
Salt: Shudh
Scouring Products: Clean Dish Wash Bar,Bartan Bar
Industrial Products:
LAB (Linear Alkyl Benzene)

AOS (Alfa Olefin Sulfonate)
Sulfuric Acid
Glycerin
Soda Ash
Pure salt
Vacuum Evaporated Iodized Salt
SSP ( Single Super Phosphate )
Sodium Silicate
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Board of Directors
Board of directors of the company has ten members including the managing
director. They are as follows-
NAME DESIGNATION
Mr. M. C. Paul Chairman and Managing director
Mr. T. O. Paul Executive director
Mr. A. P. George Director and legal advisor
Mr. K. P. John Director
Mr. T. C. Mathew Director
Mr. P. D. Anto Director
Mr. John francis K. Director
Dr. K. C. Vijayaraghavan Director
Mr. T. R. Ragulal Director
Chief General Manager of the company is Mr. Anand Menon. Mr. R.

Sankaranarayanan is the secretary-cum-chief finance manager.
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ORGANISATION STRUCTURE
BOARD OF DIRECTORS
MANAGING DIRECTOR
MARKETING PRODUCTION
MANAGER MANAGER FINANCE MANAGER
ACCOUNTANT
SUPERVISOR
SALES
REPRESENTATIVES
MACHINE OPERATORS
DISTRIBUTORS
WORKERS
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VARIOUS DEPARTMENTS:-
There are mainly eight departments in the Red Sun. They are as follows:-
Purchase Department
Quality Control Department
Production Department
Marketing Department
Accounts Department
HRD Department
Despatch Department
R & D Department
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PURCHASE DEPARTMENT
Purchase department looks after all the purchases of raw materials. The
department looks after the purchase of all divisions. The purchase manager
handles all matters regarding the purchase. The manager is assisted by supervisor
and storekeeper. The purchasing decision is done only after a close examination of
the quantity and quality of the materials to be purchased.
CHART
Manager
Supervisor
Store Keeper
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PRODUCTION DEPARTMENT
The production of all the medicines is managed by the production manager.

The production manager is assisted by five supervisors and ninety workers. The
material requirement for the production of medicines are evaluated by supervisors
and reported to the manager. The production process and the time required for the
completion of the product differs for the entire product. There are more products
being produced by this department.
CHART
Production Manager
Supervisor
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Workers
ACCOUNTS DEPARTMENT
The accounting department maintains all the accounting works of the

company. There are five accountants in the department. These accountants
maintain all accounting records like balance sheet and profit & loss account. The
report thus obtained is submitted to the senior assistant. The senior accountant
thus examines all the records and clears it. The final report is submitted to the
accounts manager. The accounting manager then thus forwards the report to the
top management.
CHART
Accounts Manager
Senior Accountant
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Accountants
2011
RESEARCH &DEVELOPMENT DEPARTMENT
All kinds of research and developments take place in this department. The
company is also maintaining a separate department for all the researches. The lab
assistant creates different ways for the purpose of innovating new medicines. The
research is found successfully is tested and developed so that they can produced
and sold. A small portion of the raw materials purchased are used for this purpose.
CHART
R & D Manager
Workers
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QUALITY CONTROL DEPARTMENT
The quality control department checks the quality of both the raw
materials as well as that of the finished products. Only after proper checking of the
raw materials, they are used for the purpose of production. Then only after proper
checking of the finished products they are further proceeded for despatch. The
functions of this department include incoming raw material quality control, in
process quality control activities, and finished products quality control activities.
CHART
Manager
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Workers
DESPATCH DEPARTMENT
Despatch department deals with packing and dispatching of the product

as per the production and orders received from the concerned agencies. Despatch
department deals only with the finished product. The despatch department
dealings are done by the manager and the workers in the department.
CHART
Manager
Workers
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MARKETING DEPARTMENT
Marketing department undertakes all the matters regarding the sales,

pricing and sales promotion activities of the products. This department provides
cash as well as credit sales. The credit sales are allowed for a period of one
month. The marketing manager takes all the important decisions concerning the
marketing of the products.
CHART
Marketing Manager
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Assistant Manager
2011
Sales representatives
Area Manager
Agency
HUMAN RESOURCE DEPARTMENT
The human resource department deals with the training and development
of workers in the pharmacy. They provide training for all the workers. The HR
manager manages all the work related with the human resource of the company.
CHART
Manager
Staff
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ADVANTAGE OF HIND COSMETIC AS A PARTNERSHIP FIRM
Section 4 of the Indian partnership Act 1932 defines a partnership as the

relation between persons who have agreed to share profits / loss of business
carried on by all or any of them acting for all. According to this definition a
partnership with one another are individually known as partners.
Under the Act, Registration is only optional and not compulsory. Since there
are a lot of consequences developed through non registration in safer side, the
firm is registering it with the register.
FINANCE
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The capital of a partnership firm consists of the amounts contributed by the

various partners. The Amount contributed by the partners is Rs. 12, 00,000. This
fund is treated as a long term fund and the firm obtains its short term fund through
loans and advances.
Means of finance:-
25% of the finance own funds Rs: 1200000.

55% finance overdraft from canara bank.
25% term loans from KSFE.
Borrowing powers:
The firm has a power to borrow money powers from banks, financial institutions,
autonomous corporation, firms or other companies on the security of the assets of
the firm including immovable properties and also accepts deposits of money from
members or non members on such terms and conditions as the partners may been
fit.
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CHAPTER 2
MAIN THEME OF THE PROJECT
2.1 OBJECTIVES OF THE STUDY
Primary Objective:
The study on effectiveness of sales promotion and advertising activities

with special reference to Hind Cosmetic, palakkad.
Secondary Objective:
1. To find out the factors that influences the purchase decision of

consumers.
2. To identify need of new innovations of the company towards sales
promotion.
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3. To know about the different strategies for sales promotion.

4. To suggest to be strengthened after sales services of Hind
Cosmetic.
5. To provide suggestions and recommendations for further
improvements
2.2 Scope of Study
The function of marketing is to ensure that the right product is made

available at the right place, in the right quality, at the right price, at the right
time and under the right impressions to the consumer. All these righteousness
is made possible by performing the sales function. Thus, sales function is the
pivotal factor in any organization. It is even capable of deciding the very
existence of an organization. The various promotional mix elements are
designed for achieving better sales. Advertising is a necessisity with a view to
maximization of the return on the money invested. The probability of securing the
optimum effectiveness is greater when advertising is adequately planned,
executed and constantly evaluated in terms of carefully crystallized objectives.
Thus, advertising offers a reason to buy while; sales promotion offers an incentive
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to buy.
2.3 Limitations of the Study
1) Time Factor: The researcher had only limited period of one month for
study. The elaborate topic could not be fully covered; hence a complete
picture could not be obtained.
2) Experience: The researcher had limited experience in the field being a
student.
3) Response: Some of the respondents failed to express their reactions
clearly.
4) Sample Survey: Since the information is being collected from a sample of
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population, their view cannot be generalized on large population.
2.4 REVIEW OF THE LITERATURE
SALES PROMOTION
According to Robert A. Peterson and William R. Wilson, Self-reports of

sales promotion invariably possess distributions that are negatively skewed and
exhibit a positivity bias. Examination of the customer satisfaction literature and
empirical investigations reveal that measurements of customer satisfaction exhibit
tendencies of confounding and methodological contamination and appear to reflect
numerous artifacts. Implications and suggestions for research and practice are
discussed.
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According to Carol Suprenant, investigate whether it is necessary to

include disconfirmation as an intervening variable affecting satisfaction as is
commonly argued, or whether the effect of disconfirmation is adequately captured
by expectation and perceived performance. Further, they model the process for
two types of products, a durable and a nondurable good, using experimental
procedures in which three levels of expectations and three levels of performance
are manipulated for each product in a factorial design.
According to Gordon H.G.McDougall, investigated the relationship

between three elements core service quality, relational service quality- and
perceived value and customer satisfaction and future intentions across four
services. The results revealed that core service quality (the promise) and
perceived value were the most important drivers of customer satisfaction with
relational service quality (the delivery) a significant but less important driver. A
direct link between customer satisfaction and future intentions was established.
The relative importance of the three drivers of satisfaction varied among services.
Specifically, the importance of core service quality and perceived value was
reversed depending on the service. A major conclusion was that both perceived
value and service quality dimensions should be incorporated into customer
satisfaction models to provide a more complete picture of the drivers of
satisfaction.
According to Ellen Garbarino & Mark S Johnson Several theories of

relationship marketing propose that customers vary in their relationships with a firm
on a continuum from transactional to highly relational bonds. Few empirical studies
have segmented the customer base of an organization into low and high relational
groups to assess how evaluations vary for these groups. For the high relational
customers (consistent subscribers), trust and commitment, rather than satisfaction,
are the mediators between component attitudes and future intentions.
According to J.Joseph Cronin & Steven J Taylor investigate the

conceptualization and measurement of service quality and the relationships
between service quality, consumer satisfaction, and purchase intentions. A
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literature review suggests that the current operationalization of service quality

confounds satisfaction and attitude. Hence, the authors test (1) an alternative
method of operationalizing perceived service quality and (2) the significance of the
relationships between service quality, consumer satisfaction, and purchase
intentions. The results suggest that (1) a performance-based measure of service
quality may be an improved means of measuring the service quality construct, (2)
service quality is an antecedent of consumer satisfaction, (3) consumer
satisfaction has a significant effect on purchase intentions, and (4) service quality
has less effect on purchase intentions than does consumer satisfaction.
Implications for managers and future research are discussed.
2.5 RESEARCH METHODOLOGY
Meaning of Research:-
Research is a systematic method of finding solutions to problems. Research

simply means a search for knowledge. Research is an original contribution to the
existing stock of knowledge making for its advancement. It aims at discovering the
truth. Research is a process of systematic and in-depth study or search of any
particular topic, subject or area of investigation backed by collection, computation,
presentation and interpretation of relevant data.
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Meaning of Methodology:-
Methodology means methods of conducting research and the logic behind

the methods. The methodology is the theory of how research should be
undertaken. It is the tools and techniques used to obtain and analyze data.
Meaning of research methodology:-
Research methodology means the method adopted in studying the problem.

It helps in explaining the tools and techniques used in studying the problem under
study. It is necessary that the researcher should know which tool is used and for
what purpose. Research methodology is a way to systematically show the
research problem. The research methodology not only talk about the research
methods but also consider the logic behind the method we sue in the context of
our research study and explain why we are using others so that the research
results are capable of being evaluated either by the researcher himself or by
others.
DEFINITION
D. Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define

research as the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge aids in construction of theory or
in the practice of an art.
Redman and Mory define research as a systemized effort to gain new

knowledge.
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Research Design
Research design is the framework or blueprint for collecting information

needed in the best possible way. The correct design will save resources and also
tests the validity and the reliability of the research.
A research design is the arrangement of conditions for collection and analysis

of data in a manner that aims to combine relevance of the research purpose with
economy in procedure. It constitutes the blueprint for the collection, measurement
and analysis of data. The design includes an outline of what the researcher will do
from writing the hypothesis and its operational implication to the final analysis of
data. The decision with respect to the following will be included in the research
design.
DESCRIPTIVE RESEARCH
In this study descriptive type of research is adopted. This type of research

includes surveys and fact-finding enquiries of different kinds. These major purpose
of descriptive research is description of the state of affairs as it exists as present.
The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happened or what is happening.
Methods of Data Collection:-
The search for answers to research questions calls for collection of data.
Data are facts, figures and other relevant materials, past, and present, serving as
bases for study and analysis.
Primary Data:
Primary data is collected with the help of interview techniques,

questionnaire and consumer survey methods. Interview is an effective, informal
verbal and non verbal conversation, initiated for specific purpose and
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focused on certain planned content areas. Questionnaire is a systematic

compilation of questions that are submitted to a sampling of population from
which information is desired. Consumer surveys are conducted to learn
what consumers think of promotion how many took advantage of it and
how the promotion affected subsequent brand-choice behavior.
Secondary Data:
Secondary data sources include:

a) Annual financial report of the firm
b) Magazines:. Business Today.
Data Representation:
Tools of Analysis include:

a) Tables
b) Graphs
d) Pie Diagrams
e) Charts
SAMPLING TECHNIQUES
The sampling method adopted is the non-probability sampling method. In

non-probability sampling method the convenience sampling method is used here.
In convenience sampling method the researcher can collect the samples as per his
or her convenience. This is usually adopted when the population is unknown and
the area of study is very wide.
Population Size:-
Population Size of this project is unknown.

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2011
Sample Size: -
It is the number of items that has been selected from a population to make the
study.
Sample size of 175 samples was considered for this study
Area of the study: - The study has been conducted only on the Palakkad district.
SAMPLING METHODS
The sampling method adopted is the non-probability sampling method. In

non-probability sampling method the convenience sampling method is used here.
In convenience sampling method the researcher can collect the samples as per his
or her convenience. This is usually adopted when the population is unknown and
the area of study is very wide.
TOOLS USED FOR DATA ANALYSIS
The collected data were analyzed with the help of simple percentage
analysis, chi-square test and weighted average method.
Percentage Analysis
Percentage refers to a special kind of ratio in making comparison

between two or more data and to describe relationships. Percentage can
also be used to compare the relation terms the distribution of two or more
sources data.
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2011
Number of Respondents
Percentage of Respondent = x 100
Total Respondent
Chi-square Analysis
Chi-square is a non-parametric test of statistical significance for bi-variant

tabular analysis. A non-parametric test like chi-square is a rough estimate of
confidence. Chi-square is used most frequently to test the statistical significance of
results reported in bi-variant tables and interpreting bi-variant tables is integral to
interpreting the results of a chi-square test.
H0 = Null Hypothesis
The hypothesis to be tested is usually referred to as Null Hypothesis.
H1 = Alternative Hypothesis
If H0 is rejected it means that the data on the hand are not compatible
with the null hypothesis H0 but are compatible with some other hypothesis,
that is the Alternative hypothesis.
The chi-square method is the application of testing the significance difference

between observed and expected.
( Oij Eij )2
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2011
Chi-square test =
Eij
Oij = Observed frequency of the cell in the i th row and j th column.

Eij = Expected frequency of the cell in the i th row and j th column.
Significance level = 5%
Degree of freedom = (R-1) (C-1)
Where as
O = Observed Frequency
E = Expected Frequency
R = No of rows
C = No of columns
Weighted Average Method
Weighted average methods are normally used in the comparison of two or

more activities regarding to the products. The result is on the basis of the value we
obtained. If the value of the weighted average is more effective.
Weighted Average = WX / W
Where as WX = Multiply the weights by the variable X.

W = Total of Weights.
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2011
44
2011
CHAPTER 3
DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
Data analysis refers to collection of organize information usually analysis the

result of experience, observation or experiment, or a set of premises. This may
consist of number, words or images, particular as measurement or observation of
set of variables.
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2011
Interpretation is a communication. It is telling a story. It is vital part of

how people experience the places there is it. The good interpretation will leave
your visitors felling connected, inspired and alive with curiosity.
3.1 EFFECT OF MEDIA
Table 3.1
Sl. No Media No. Of Respondents Perce

ntage
1 Visual 70 40
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2011
2 Print 53 30
3 Audio 7 4
4 Displays 3 2
5 Banners 7 4
6 Brochures 35 20
INTERPRETATION
Result shows that visual media and print media influence customers
mostly and brouchers also attract the customers. About 40% were
influenced by visual media, 30% by print media, and 20% by brouchers.
Audio media, displays and banners attracted 4% and 2%.
Chart 3.1
3.2 DEALER DEMONSTRATION
Table 3.2
SL. ATTRIBUTES NO. OF RESPONDENTS PERCENTAGE

NO
1 Excellent 35 20
2 Good 88 50
3 Satisfactory 15 30
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2011
4 Poor 0 0
INTERPRETATION
About 50% of customers respondent dealer demonstration was good while
30% demanded that the result was only satisfaction. And 20% commanded it to be
excellent.
Chart 3.2
3.3SUCCESS OF ADVERTISEMENT MESSAGE
Table 3.3
SL.NO ATTRIBUTES NO.OF RESPONDENTS PERCENTAG

E
1 YES 105 60
2 NO 70 40
INTERPRETATION
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2011
About 56% of customers commanded as discont as an important factor

influencing purchase decision than advertisement 40% and 4% gifts.
Chart 3.3
3.4. CUSTOMER SATISFACTION
Table 3.4
SL.NO ATTRIBUTES NO.OF RESPONDENTS PERCENTA

GE
1 Excellent 49 28
2 Good 98 56
3 Satisfactory 28 16
4 poor 0 0
INTERPRETATION
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2011
About 60% demanded that advertisement message has succeeded in

influencing the customers while 40% had negative opinion.
Chart 3.4
3.5 NEED FOR ADDITIONAL ADVERTISEMENT AND SALES PROMOTIONAL

ACTIVITIES
Table 3.5
SL.NO ATTRIBUTES NO.OF RSPONDENTS PERCENTAGE

1 YES 70 40
2 NO 105 60
INTERPRETATION
50
2011
About 56% of customers were of the opinion that, the product provided
good quality while 28% commended it to be excellent and 16% it as only
satisfactory.
Chart3.5
3.6 CUSTOMER DEALER RELATIONSHIP
Table 3.6
DEALER NO.OF PERCENTA

SL.NO RELATIONSHIP RESPONDENTS GE
1 CORDIAL 70 40
2 VERY FRIENDLY 53 30
3 HOSTLE 42 24
4 POOR 10 6
51
2011
INTERPRETATION
About 40% of customers demanded on the need for additional sales
promotional and advertisement activities while 60% were satisfied with present
status.
Chart 3.6
3.7 SATISFACTION WITH SALES PROMOTIONAL ACTIVITIES
Table 3.7
SL.NO LEVEL OF NO.OF PERCENTAG

SATISFACTION RESPONDENTS E
1 EXCELLENT 17 10
2 GOOD 88 50
3 SATISFACTORY 70 40
4 POOR 0
INTERPRETATION
52
2011
About 40% of the customers were of the opinion that the customers
relationship was cordial and 30% as very friendly, 24% as hostle. And 6%
commanded it as not very good.
Chart 3.7
3.8 DELIVERY MODE OF DEALER
Table 3.8
SL.NO DELIVERY MODE NO.OF PERCENTAGE

RESPONDENTS
1 Prompt Delivery 105 60
2 Slightly Late 56 32
3 Very Late 14 8
INTERPRETATION
50% of customers were the opinion that the present sales promotional
activities were good and 10% commended it as satisfactory and other 10% as
excellent.
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2011
Chart 3.8
3.9 PAGE IN PRINT MEDIA TO GET MAXIMIUM ATTENTION
Table 3.9
SL.NO DETAILS OF NO.OF PERCENTAGE

PAGE RESPONDENTS
1 First 70 40
2 Middle 17 10
3 Last 88 50
INTERPRETATION
50% of customers demanded print media advertisement as more attractive
and influencing on last and 40% were of the opinion on frist page and some
customers about 10% respond as middle page.
54
2011
Chart 3.9
3.10 GIFTS GIVEN BY COMPANY
Table 3.10
SL.NO ATTRIBUTES NO.OF PERCENTAGE

RESPONDENTS
1 Very Good 77 44
2 Good 63 36
3 Average 35 20
4 Bad 0 0
5 Very Bad 0 0
INTERPRETATION
About 60% commanded that they are excellently satisfied by the financial help
provided by dealer while 30% demanded it as satisfactory and 10% as good.
55
2011
Chart 3.10
3.11 SATISFACTION WITH PRICE OF THE PRODUCT
Table 3.11

RESPONDENTS
1 Highly satisfied 35 20
2 Satisfied 70 40
3 Moderate 49 28
4 Dissatisfied 21 12
5 Highly 0 0
Dissatisfied
INTERPRETATION
About 80% of the customers demanded advertisement to see more attractive
when used with sales promotional activity. And 10% were
not attractive and another 10% not sure.
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2011
Chart 3.11
3.12 DIRECTING MARKETING STRATEGY
Table 3.12

RESPONDENTS
1 Very Good 84 48
2 Good 42 24
3 Average 21 12
4 Bad 14 8
5 Very Bad 14 8
INTERPRETATION
44% of customers opinion that gifts given by the company is very good, 36%
opinion that it is good and 20% opinion that it is average.
Chart 3.12
57
2011
3.13 SATISFACTION WITH PRICE OF THE PRODUCT
Table 3.13

RESPONDENTS
1 Highly satisfied 35 20
2 Satisfied 70 40
3 Moderate 49 28
4 Dissatisfied 21 12
5 Highly Dissatisfied 0 0
INTERPRETATION
40% of customers tells that they satisfied with price,20% are highly satisfied
with price, 28% are moderate with price and 12% are dissatisfied with price
Chart 3.13
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2011
3.14 CHI-SQUARE TEST FOR SIGNIFICANCE
1. Test the significance difference between Dealer relationship And

satisfaction with price
H0 : There is no significance difference between Dealer relationship And

H1 : There is significance difference between Dealer relationship And
Dealer relationship
Cordial Very Hostile Poor Total

friendly
Highly satisfied 10 15 5 5 35
Satisfied 35 20 14 1 70
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2011
Moderate 20 15 13 1 49
Dissatisfied 5 3 10 3 21
Total 70 53 42 10 175
( Oij Eij )
Chi-square test =
Eij
Significance Level = 5%
Degree of freedom =9
Table Value = 16.919
Calculated Chi-square Value = 40.405
INFERENCE
It is identified from the above analysis that the calculated Chi-square is

greater than the table value. So, Null hypothesis is rejected. Hence there is
significant difference between Dealer relationship And satisfaction with price.
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2011
3.15 WEIGHTED AVERAGE TEST

Weighted average test for relationship between dealer relationship and
Dealer
relationship Satisfaction
with price
Opinion Opinion
Cordial 40 Highly satisfied 20
Very friendly 60 Satisfied 80
Hostile 72 Moderate 84
Poor 24 Dissatisfied 48
Calculated Value 196 Calculated Value 232
Weighted Weighted Average

Average 49 Value 58
Value
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2011
INFERENCE
The above table shows that satisfaction with price is first satisfactory factor and
dealer demonstration is the second satisfactory factor.
CHAPTER 4
FINDINGS, SUGGESSIONS &
CONCLUSION
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2011
4.1 FINDINGS
1. Company produces more environmental friendly products to customers & also

try to attain maximum consumer satisfaction.
2. Company favour traditional line of sales promotion programmer like transporting
products directly to the shops.
3. Advertising of quality coconut & milk is less as compared to recent years ago.
4. Company provides discount coupons gift etc to the customers.
5. As a trend in our economy, numbers of farmers are on decreasing stage it will
affect the demand of cattle food.
6. Company faces competitors effectively through quality and effective sales
promotion program of the company.
7. Company always depends upon the middlemen for distributing goods, and then
never adopts direct marketing strategy.
8. Company is on developing stage with many of branches and products.
9. The whole office work is done through computerized technology.
10. Company uses process cum machines for production process and packing
(Automatic packing machine)
11. Direct and close supervision used by Hind Cosmetics.
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2011
12. Company factors horizontal communication by method of written

communication.
13. Company import new technologic machines from Italy, Germany for production
process.
4.2 SUGGESTIONS
1. Marketing department should concentrate more on palakkad district explore the

chances created by the opening of a new plant.
2. Strict lost control measure should be taken to reduce unnecessary over heads.
3. Make appropriate market study and introduce more innovations in sales.
4. Advertising through media should be used as effective sales promotion program.
5. Direct marketing technique should be used for effective sales promotion
program.
6. Diversification of products should be used as the key to future growth.
7. The company should pay more attention to outside Kerala markets.
8. Customer retention measures should be enhanced.
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2011
4.3 CONCLUSION
The organizational study enables me to gather knowledge regarding the

working of an organization. The study has brought light to know the organization
as a whole. Different products and efficiency in working for attaining of a common
goal.
65
2011
QUESTIONAIRE
1. Name of the Respondent:
2. Area of the respondent :
3. Age of the respondent :
(a) Below 20
(b) 20 to 29
(c) 30 to 39
(d) 40 to 49
(e) 50 & above
4. Gender :
(a) Male
(b) Female
5. Occupation
(a) Student
(b) Employer
(c) Professional
(d) House wife
(e) Others
6. To which income class, do you belong to
(a) High Income class

(b) Middle Income class
7. To which income class, do you belong to
66
2011
(a) High Income class

(b) Middle Income class
8. from which source, do you come to know about the product
(a) Visual media

(b) Print media
(c) Audio media
(d) Displays
(e) Banners
(f) Brochures
9. Comment on dealer Demonstration
(a) Excellent
(b) Good
(c) Satisfactory
(d) Poor
10. Rank the following factors on the basis of influence of the purchase decision
(a) Advertisement
(b) Cash Discount
(c) Gifts
(d) Coupons
(e) premium
11. Has the advertisement message succeeded in building desirability and

believability with respect of the product in your mind
(a) Yes
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2011
(b) No
12. Your satisfaction level on product quality
(a) Excellent
(b) Good
(c) Satisfactory
(d) Poor
13. Do you think that Advertisement and sales promotional activities are need as
for increasing sales volume
(a) Yes
(b) No
14. Opinion on Customer Dealer relationship
(a) Cordial
(b) Very friendly
(c) Hostile
(d) Poor
15. Sales promotion activities offered by the firm
(a) Excellent
(b) Good
(c) Satisfactory
(d) Poor
16. Deliver made of dealer
(a) Prompt delivery

(b) Slightly late
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2011
(c) Very Late
17. Maximum attention from print media is obtained on advertisement in
(a) First page

(b) Inner page
(c) Last page
BIBLIOGRAPHY
BOOKS
69
2011
1. Marketing Management : Philip Kolter Hall Inc. Tenth Edition,

September 2001.
2. Principles of Marketing : Richard j. Semenik and Gary J. Bamoss

South West publishing Company, First Edition, 1993.
3. Marketing : William G. Zikmund and Micheln D Amico

South West publishing Company, fourth Edition, 1993.
4. Research Methodology : C.R Kothari Wishwa Prakashan, Second

Edition, 1990.
70

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2011

A STUDY ON SALES PROMOTION ANALYSIS WITH REFERENCE TO HIND COSMETIC PALAKKAD.

A STUDY ON SALES PROMOTION ANALYSIS WITH

in partial fulfillment for the award of the degree

DEPARTMENT OF MANAGEMENT STUDIES

SSM COLLEGE OF ENGINEERING

This is to certify that the project entitled

I certify that the declaration made above by the candidate is true

I am deeply indebted to the management of S.S.M college of Engineering,

I feel great pleasure to thank our beloved

I am also thankful to ***************************************************

I also thank all the faculty members of the Department of Management

At the outset I would like to thank ******************************, head of the

1.1 About the study 2

1.2 About the industry 3

2.1 Objectives of the study 22

2.2 Scope and limitations 23

4. Findings, Recommendations and

CUSTOMER DEALER RELATIONSHIP

DELIVERY MODE OF DEALER

SATISFACTION WITH PRICE OF THE PRODUCT 43

CHI-SQUARE TEST FOR SIGNIFICANCE

WEIGHTED AVERAGE TEST

CUSTOMER DEALER RELATIONSHIP 41

DELIVERY MODE OF DEALER 43

11 3.11 SATISFACTION WITH PRICE OF THE PRODUCT 46

SATISFACTION WITH PRICE OF THE PRODUCT 48

14 3.14 CHI-SQUARE TEST FOR SIGNIFICANCE 49

15 3.15 WEIGHTED AVERAGE TEST

This project work is based on A STUDY ON SALES PROMOTION WITH

Researcher in common refers to a search for knowledge. The Researcher

1.1 INTRODUCTION ABOUT THE STUDY

The role of selling has become more complex because

Promotion is an exercise in information, persuasion and influence.

The American marketing Association to bring a semblance of

Sales Promotion is defined by the American Marketing Association in a

specific sense to mean: those Marketing activities, other than personal

1.2 INTRODUCTION ABOUT THE INDUSTRY

Developing markets such as India are an important source of growth for

Unilevers Lifebuoy Swasthya Chetna (Health Awakening) campaign is

Diarrhoea is the worlds leading preventable cause of death, killing 2.2

The campaign received recognition for its innovation and effectiveness,

Lux has always believed in taking up ground-breaking endeavors and has

Therefore, it allows water to remove normally-insoluble matter by

We have seen the growth of cleanliness and of a recognition of the part

1.3 INTRODUCTION ABOUT THE COMPANY

Hind Cosmetics is located at Palakkad, Kerala State. The company, being

Hind Cosmetics was registered as a public limited company on 25 th September

Hind Cosmetic with a capital base of Rs.36 crores embarks on an expantion

The company is a name trusted with thousands of people. Since its

Founder of Hind is Dr. Karsanbhai Patel, son of a small-time farmer and a

In the 1980s hind catapulted Surf, which was a well-established detergent

LAB (Linear Alkyl Benzene)

Chief General Manager of the company is Mr. Anand Menon. Mr. R.

The production of all the medicines is managed by the production manager.

The accounting department maintains all the accounting works of the

RESEARCH &DEVELOPMENT DEPARTMENT

QUALITY CONTROL DEPARTMENT

Despatch department deals with packing and dispatching of the product

Marketing department undertakes all the matters regarding the sales,

HUMAN RESOURCE DEPARTMENT

ADVANTAGE OF HIND COSMETIC AS A PARTNERSHIP FIRM

Section 4 of the Indian partnership Act 1932 defines a partnership as the