Professional Documents
Culture Documents
I Mansi Gupta hereby declare that the project report entitled "SALES PROMOTION OF
Technical Campus, Delhi in partial fulfillment of the requirement for the awar of the degree
of BACHELORS IN
work reported in this project has not been submitted and will not be submitted
either in part or in full, for the award of any degree or diploma in this institute
Mansi Gupta
01525501717
ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my mentor
Mr.Jitender Rai for his exemplary guidance, monitoring and constant encouragement
throughout the internship. The help and guidance given by her time to time shall carry me a
I also take this opportunity to express a deep sense of gratitude to Mr. Ankit Malhotra,
Assistant Sales and Marketing Manager, Health Vitals, for his cordial support valuable
I am obliged to employees of health vitals, for the valuable information provided by them in
their respective fields. I am grateful for their cooperation during the period of my internship.
Lastly, I would like to say thanks to those who gave me an opportunity to serve this glorious
organization. I would like to say thanks to Placement Manager MR.Jitender Rai who helped
me in getting into this organization. I also thank Mr. Diwakar Garg, Business Development
Manager, Health Vitals, who took my interview and gave me a chance to work with such a
Mansi Gupta
EXECUTIVE SUMMARY
This Report is about my Summer Internship Program with Health Vitals. This internship was
my first time experience in the market. This report contains the objective of the internship as
well as my whole learning experience. It also contains the company profile and explains the
The products are based on the concept of Nutrition, Ayurveda & Herbs and are totally natural.
As an intern my job was to promote the products of the company. I got a chance to work in six
different phases and learn as much as possible about marketing a product. In the report I have
explained in detail about all the six phases, my experience and learning. This internship gave
me an insight into the practical world of marketing. I met the retailers and took their feedback.
This gave me an opportunity to study the methods of how retailer works. I also got a chance to
meet the wholesalers and understand their job and importance in the market. During product
promotion I also had a chance to interact directly with the end consumer and that helped me
learn ‘what a customer wants’. The end consumer is the most important person in marketing
and being able to interact with them directly helped me very much. I also got to be a part of
Re-launch project of a product. This taught me the importance of proper positioning and
marketing of a product.
I also did the market research about the satisfaction level of the retailers about our company’s
This research helped me apply my theoretical knowledge practically. I have mentioned the
suggestions and recommendations to the company. I have also mentioned the limitations of the
This report is basically a synopsis of all the work done by me in the duration of two months of
Summer Internship.
CONTENTS
1 Executive Summary
2 Chapter-1: Introduction
6
Chapter-5: Data Analysis and Presentation / Study of topic
7 Chapter-6: Finding and Conclusions
8 Chapter-7: Conclusion
9 References/Bibliography
10 Appendices
Chapter – 1
INTRODUCTION
INTRODUCTION
Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the
promotional mix are advertising, personal selling, direct marketing and publicity/public
relations.) Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve product
availability. Examples include contests, coupons, freebies, loss leaders, point of purchase
Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added value
stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or
purchase. Examples of devices used in sales promotion include coupons, samples, premiums,
Sales promotion is needed to attract new customers, to hold present customers, to counteract
competition, and to take advantage of opportunities that are revealed by market research. It is
made up of activities, both outside and inside activities, to enhance company sales. Outside
sales promotion activities include advertising, publicity, public relations activities, and special
sales events. Inside sales promotion activities includes window displays, product and
promotional material display and promotional programs such as premium awards and contests
Seeing the goodopportunity to study sales promotion strategy and practices of HEALTH
IN HEALTH VITALS. During the project work, it is being analyzed the sales promotion
a reward, marketers offer something of value to those responding generally in the form of lower
cost of ownership for a purchased product (e.g., lower purchase price, money back) or the
the company & brand activation with a focus on Sales Promotion & Personal sales.
o To bring out new ways to sell our product in market through different
etc.
Study of Health Vitals Retailers’ Satisfaction Level towards Company Product and
Services.
o To identify the satisfaction level of retailers’ towards the company product and
services.
level of retailers.
Primary data has been be used for the study. Primary data was collected through direct
Ayurvedic medicines are produced by several thousand companies in India, but most of them
are quite small, including numerous neighborhood pharmacies that compound ingredients to
make their own remedies. It is estimated that the total value of products from the entire
Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has
been dominated by less than a dozen major companies for decades, joined recently by a few
others that have followed their lead, so that there are today 30 companies doing a million dollars
or more per year in business to meet the growing demand for Ayurvedic medicine. The products
of these companies are included within the broad category of "fast moving consumer goods"
(FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger
Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines,
particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there
may be some overlap with Ayurveda, such as having traditional herbal ingredients in the
composition of toiletries.
The Indian government and non-government organizations have been collecting statistics on
the Ayurvedic system in India and these data about the manpower and institutional aspects of
In addition to the nearly 400,000 Ayurvedic practitioners, there are over 170,000 homeopathic
physicians; India has about 500,000 medical doctors (similar to the number in the U.S., but
serving nearly 4 times as many people). Reliance on Ayurvedic medicine is heavy in certain
regions of India, such as Kerala in the Southwest. Many Ayurvedic practitioners in small
villages are not registered. One of the famous clinics of India is described in Appendix 2 and a
The SAARC (South Asia Association for Regional Cooperation) was formed in 1985; its
member countries are India, Pakistan, Nepal, Bangladesh, Bhutan, Maldives, and Sri Lanka.
These countries all have been influenced by Ayurvedic medicine. Trade in Ayurvedic
medicines within the SAARC is mostly limited to raw materials that grow in one region (e.g.,
high mountains, northern climate) and are then exported to other regions (e.g., lowland
southern areas). Because of the large number of very small factories that try to service the local
communities, with products labeled with the local language, there is little opportunity for
suppliers in one SAARC country to send finished products to another SAARC or even abroad.
Entrepreneurs in these countries (mainly in India) seeking to break into the market for
natural products have determined, rightly, that the demand for traditional style Ayurvedic
medicines both inside and outside the region is limited, despite growth trends as high as 20%
annually encountered in the late 1990s. They have aimed to bolster interest by carrying out
scientific research into promising herbs and formulas that are based on Ayurveda but not
finding of active ingredients, and this has led to the development of isolates from plants that
are sold as "nutriceuticals" (substances not registered as drugs, but used like nutritional and
dietary supplements, sold over the counter in various formulations with specific health benefits
portrayed for them). For these, there is a growing worldwide demand. The main suppliers of
nutriceuticals are Japan, China, and the U.S., but India stands to become a significant
contributor.
company with affiliates in India that represents the Indian tradition, though it also takes on
similar projects involving herbs from other sources. The company was founded by Dr.
Muhammed Majeed. He was born in Kerala, India; after graduating in Pharmacy from Kerala
University, Majeed emigrated to the U.S. in 1974, where he continued his graduate studies and
then worked at pharmaceutical companies for 15 years. Then, in 1988, he founded Sabinsa
Corporation. Soon after, in 1991, Majeed set up a research and development group at
Bangalore, India called Sami Labs Ltd. That facility now has over 500 employees.
2.2 Profile of the Organization
“Health Is Wealth ” Health has been beautifully explained as a state of complete physical,
mental and social well-being, and not merely the absence of disease or infirmity. Our
association with the health care and wellness segment and an urge to ensure the above
mentioned social well-being was laid with the foundation of Health Vitals in early 1990’s.
Because of the focus on quality and consistency and belief to give the best to our customers,
Our company is involved in Product Development & production, Packaging & logistics
through our associates & Sister Concerns.Our Head Office is in Chandigarh & Zonal Sales
office in Delhi. With an annual Turnover of 40 million we have more than 100 approved
formulations from Govt. of India. We deal in Marketing & Branding of various products like
Nutraceuticals, Ayurvedic, Nutritional, food products under its own Brand Name. Presently,
our marketing network has been judiciously spread in seven states of Northern India on all
major allopathic-ayurvedic stores, wellness centers, departmental stores and super markets. We
are also present on Modern Trade chains like Big Bazaar, Viva Medical chain, Med Way, etc.
We at Health Vitals believe in bringing functional health to everybody, which means, “Being
healthy is all about complete fitness of body, mind & soul”. That is why we follow:“ALWAYS
Our products are based on concept of Nutrition, Ayurveda & Herbs and that’s why they are
totally natural.
Our association with the health care and wellness segment and an urge to ensure the above
mentioned social well-being was laid with the foundation of Health Vitals in early 1990’s.
Because of the focus on quality and consistency and belief to give the best to our customers, it
Involved in Product Development & production, Packaging & logistics through our associates
Turnover - 40 million.
Present on all major allopathic-ayurvedic stores, wellness centers, departmental stores and
super markets. Present on Modern Trade chains like Big Bazar, Viva Medical chain, Medi-
Way, etc.
VISION
To be the most admired household brand in India in the healthcare and wellness segment and
to create an image that is synonymous with trust. We wish and adhere to the following motto:
MISSION
We strive for "FUNCTIONAL HEALTH" with our unique blend of medicine and nutrition,
and endure to spread our vision around the world. To create an employee-friendly atmosphere
that motivates all employees' to market world-class quality products with conviction and in the
process achieve optimum customer satisfaction. To move across the national borders and
ensure the availability of our products at an international level without compromising on the
STRATEGIC INTENT
OUR POLICY :
We are a budding unit; however, backed by a strong strategy, our growth graph has been
steadily ascending.
OUR GROWTH STRATEGY:
To increase our presence on reputed outlets in the markets of Northern Indian states like Delhi,
NCR, Chandigarh, Punjab, Haryana, Uttar Pradesh, Himachal Pradesh, Jammu & Kashmir,
Uttaranchal & extend our products & services to entire India. We also want to reach maximum
OUR STRENGTH :
Our determination to provide quality & dedication of our employees. We thrive for
improvement in every sphere of our organization and life. We thrive towards maintaining the
GOALS
Our presence on nearly 20,000 reputed medical outlets and superstores in Northern India is
acting as an interface between our products and our customers. We plan to increase that number
to more than 50,000 outlets throughout India and achieve a turnover of Rs.200 million from
the present annual turnover of 40 million with our existing range of products. However, our
aim is not just limited to monetary benefits, our utmost priority remains to serve our esteemed
customers with world-class quality health products. We want to build a relationship based on
This Journey begins with a promise, a promise made by a person to himself, a person who is
none other than the chairman of the company, a person who has always tried to make every
human who has come in contact with him functionally healthy. This journey began in early
1990's. The man is none other than one who is known as the pioneer of developing apiculture
in India. From basic but effective honey-based remedies, which can be developed at homes to
a variety of remedies which needs herbs and fruits, he has been able to give the society a
product that has been liked by people in every walk of life, wherever it reaches. Today we
thrive for the same quality and effectiveness among all our products and services. At Health
Vitals, we ensure that no one in the company comprises with the quality. In our endeavor to
bring health and well-being at the door steps of our customers, our longing for quality will
always be there.
PRINCIPLES:
QUALITY:
We at Health Vitals believe in providing the best quality products and services to our
DETERMINATION:
We are determined to deliver the best to our customers and clients through our products and
services.
DEDICATION:
Our dedication towards this industry and our urge to achieve goals and provide excellent
service to our customers has been reflected in the speed with which we have been expanding
in the market.
CUSTOMER VALUE:
Before launching any product or service for our customers, taking customer value into
BELIEF:
We have strong conviction in the brand and we will always make sure that a positive image
stays imprinted in the minds of our customers' with respect to our brand.
MAIN PRODUCTS OF THE COMPANY
AVG amla vital green is a master health formula, which provides necessary nutrition and
medication. It helps in reversing the affect of aging and diseases on body by reviving the doctor
within you. It acts as anti-oxidant, detoxicant, anti-fatigue, anti-stress, anti-aging and anti-
disease AVG amla vital green is rich in fiber, nectar, minerals, vitamins, nutrients, tannins and
pectin. Contains no added flavours, starch, seeds, potato, fat, salt or sugar.AVGamla vital green
mainly contains fresh whole green Amla with all its fiber and nectar intact enriched with small
amount of green Elaichi and Tulsi.AVG amla vital green is very useful in many of our acute
and chronic problems like diabetes, cardiac problems, cholesterol, obesity, weakness,
reproductive weakness, urinary problems, liver problems, indigestion, gas, constipation, piles,
IBS, skin problems, joint pains and arthritis, hair problems etc. Even to prevent ourselves from
It is the flagship product of company and was the first product by company in health and
wellness segment.
CHARACTERSTICS:
AVG Amla Vital Green is rich in:Fiber, Minerals, Vitamins, and Nutrients.
AVG Aloevera is a premium quality Aloevera juice extracted from farm fresh Aloevera leaves
produced in pollution free environment. AVG Aloevera offers combi-effect of nutrition and
effective natural medication. AVG Aloevera is useful in many of our chronic, acute and modern
day lifestyle problems like Skin and cosmetic problems, joint pains, arthritis, heart and
cholesterol, liver, obesity, diabetes, psoriasis, menstrual cycle problems, constipation and other
digestive system problems, general and reproductive weakness and other deficiency disorders
AVG amla vital green is very useful in many of our acute and chronic problems like diabetes,
liver problems, indigestion, gas, constipation, piles, IBS, skin problems, joint pains and
arthritis, hair problems etc. Even to prevent ourselves from these problems one can consume
AVG.
MAHAYOG
It is one of the best supporting natural formulation & acting as preventive, Corrective; Curative
& Revitalizing in Diabetes & Other related problems. It is made of two words MAHA means
great and YOG means formulation “A GREAT FORMULATION”. Made up of highly useful
herbs having multi system health benefits providing MEDICARE + NUTRICARE effects
SIMULTANEOUSLY.
CHARACTERSTICS:
INGREDIENTS:
Mahayog is for everyone who are at risk of Diabetes, who have controlled Diabetes,
uncontrolled Diabetes & having family history of Diabetes .Mahayog is a very useful
supporting formulation .It is equally important for those who are on some anti-diabetic
medicine and & also who are not diabetic. Just because diabetes is a systemic disease and our
body as a whole is affected by diabetes, so not only controlling blood sugar levels is important
for diabetes but also maintaining the overall health and functionality of all organs and systems
is important. Those having family history of diabetes or whose fasting blood sugars are
fluctuating and whose parents are diabetic should also use Mahayog for correcting their system
You can run down the list of all the organizational problems on the mind of senior leaders
and see that the fingerprints of managers are all over them.
1) Turnover
It starts with one of the biggest, most painful organizational problems that can plague a
company: turnover.
When turnover strikes, unfortunately the problem is usually mis-diagnosed. Multiple studies
show that managers falsely attribute employee turnover to either the quality of the job offer,
Most research done directly with employees who recently left their job shows an
overwhelming majority leave because of their manager. This can be because of a direct
problem with their manager (50% of Americans have left a job for this reason), or a variety of
Employee turnover is a high cost at every organization, with The Center for American
Progress even indicating it costs an organization as much as 213% of the salary for highly-
trained employees.
Losing good people will cause any leader to lose sleep at night, and bad managers are the
2) Productivity
No one has a bigger impact on team effectiveness than the manager of that team.
According to Gallup’s research, managers account for 70% of the variance in employee
engagement. This is huge when you consider the relationship between engagement and a
variety of benefits:
Meanwhile, research from Evolv and Wharton (UPenn) has shown the absolute largest
Despite these facts, most employees do not have an effective manager helping them perform
at a high level.
Only about 21% of employees feel they’re managed in a motivating way, and only 34% of
It’s hard to be productive if your manager doesn’t take advantage of your strengths, nor do
Managers determine the best process for their teams. Whether by building consensus or
dictating, the decisions they make determine what and how things get done.
Good managers do this by enabling and empowering the strengths of their team. In First,
Break All The Rules, Marcus Buckingham shows through a variety of workplace research
“People who focus on their strengths every day are 6 times more likely to be engaged in
their jobs, more productive and more likely to say they have an excellent quality of life.”
Unfortunately, your bad managers do the opposite. They use politics and play favorites to
assign work. They add heavy process and bottleneck decision making through them.
This slows down decision-making, product releases, customer issue resolutions, addressing
PR/social media postings in times of crisis, and other issues teams tackle every day. Because
of this, these bad managers frustrate their teams and hurt the company’s reputation one slow
The philosophy, “What’s measured is what matters” has many benefits when running an
organization; it brings focus, creates clarity for evaluating performance, and can get large
organizations moving in one general direction. However, it’s far from perfect.
It can reward terrible behaviors that happen to lead to short term gains. Look no further than
recent scandals in Silicon Valley, where great numbers led to overlooking increasingly bad
behavior.
Another drawback is that it misses tracking and rewarding things like soft skills that are often
For example, a manager that communicates terribly will often have a team that misses targets.
The tracking method most companies use will reveal the missed targets, but not the poor
communication.
As a result, the poor communication is likely to continue. Only once the missed targets lead
While a focus on numbers brings many benefits, numbers alone do not tell the whole story. If
not investigated, the root causes can be missed and never fixed.
5) Job Role Design
They’re called, “hiring managers” for a reason. The best managers understand what
headcount they need, have detailed conversations with their top-of-funnel recruiters (HR)
about what they’re looking for, and then bring in finalists to interact with the pre-existing
team.
The worst managers define the need for headcount around how busy they are (as opposed to
which role would add the most value), barely speak to HR, and then complain when the
“Total Motivation” creator Lindsay McGregor has noted that a clear job role can be almost
Teaching your managers to define job roles well scales a solution to this problem. If every
team finds good people for the right roles, it’s one less organizational problem to worry
about.
6) Leadership Pipelines
Across the last three years, Josh Bersin has repeatedly found leadership pipelines to be a top
concern of executives. For those companies that invest in addressing this issue, he’s found
they experience significantly higher long-term revenue per employee and gross profit margin.
Despite these benefits, leadership pipelines continue to be an unresolved problem for many
companies.
Employee development begins at the managerial level. Yet, many managers aren’t doing it.
There are plenty of excuses: other tasks piling up, demands to hit numbers, and many other
responsibilities. Meanwhile, it continues to be the #1 perk people want at work, and look for
When you don’t develop your talent pipeline, you will lack the leaders who can drive great
performance of their teams. This then manifests itself in a variety of organizational problems
(see the Peter Principle) where people are not ready for their new responsibilities.
A lack of investment in developing people for their next role comes back to bite companies
when they look to promote from within and fill roles as they grow.
7) Relationships with Customers
Managers set the tone for how their teams treat customers. There is nothing more powerful
This can be extremely costly. However, many of these costs are hidden from senior
How many bad experiences are happening you don’t know about? A typical
How much are unhappy customers not spending with you? On average, loyal
Are poor customer experiences tolerated? News of bad customer service reaches
more than twice as many ears as praise for a good service experience.
Managers show what’s acceptable based on what they fix and what they don’t. If they’re not
taking care of customers well, neither will their teams. This can cause huge problems for
senior leaders, when bad customer experiences compound to cost you major clients.
8) Being more Innovative
The best ideas are often surfaced from front-line staff; they are closest to the pain points and
needs of your customer. Unfortunately, many companies fail to tap into this great source.
One company that has succeeded in this area is Toyota. Listening to front line employees is a
key part of their “Total Production System.” Managers are trained to listen to and help
Unfortunately, Justin Berg’s research out of Stanford shows that managers are typically poor
judges of new ideas. Not every idea will be innovative, and managers need to learn to say no,
but the wrong managerial gatekeepers prevent the creation of new revenue streams when a
Even worse, if managers take credit for their team’s ideas, they are discouraging them from
coming to them with future ideas. Yet, that’s too often what’s happening. Bamboo HR’s
Good managers listen to their team’s ideas and give them credit when due. If a lack of
innovation is one of your organizational problems, look no further than your managers who
The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have
about 85% of India's domestic market. These and a handful of other companies are mentioned
repeatedly by various writers about the Ayurvedic business in India; a brief description is
Powder).
Sri Baidyanath Ayurvedic Bhawan
1955.
health products.
Several small companies that have grown rapidly in recent years envision themselves as
STRENGTHS:
One of the oldest brands of Amla juice with a good reputation in the market.
Introducing innovative concepts by producing Amla juice along with its fibres was
AVG Amla is done not by boiling but by crushing the Amla’s, so that its purity and
WEAKNESS:
There is very less effort done by the company in the field of online marketing.
Price of the products are too high, particularly Triphala and Alovera. Due to which
Delay in regular supply in some parts of Delhi/NCR has also affected the image of the
company.
Less percentage of margins on our products, as other companies in the same segment
The product line of the company is not so large which they can now increase as the
With high demand of our products in Delhi/NCR, the company can think to expand
THREATS:
One of the biggest threats for company is Patanjali products, as these are promoted by
a well-known yoga guru and appreciated public figure. Therefore retailers find it easy
Definition: Sales promotions are the set of marketing activities undertaken to boost sales of
Description: There are two basic types of sales promotions: trade and consumer sales
promotions. The schemes, discounts, freebies, commissions and incentives given to the trade
(retailers, wholesalers, distributors, C&Fs) to stock more, push more and hence sell more of a
product come under trade promotion. These are aimed at enticing the trade to stock up more
and hence reduce stock-outs, increase share of shelf space and drive sales through the
channels. However, trade schemes get limited by the cost incurred by the company as well as
the limitations of the trade in India to stock up free goods. Incentives can be overseas trips
and gifts.
A typical trade scheme on soaps would be buy a case of 12 soaps, get 1 or 2 free - or a 8%
discount scheme (1/12=8%). Such schemes are common in FMCG and pharma industries.
But sales promotion activity aimed at the final consumer are called consumer schemes. These
are used to create a pull for the product and are advertised in public media to attract attention.
Maximum schemes are floated in festival times, like Diwali or Christmas. Examples are buy
soap, get diamond free; buy biscuits, collect runs; buy TV and get some discount or a free
item with it and so on. Consumer schemes become very prominent in the 'maturity or decline'
stages of a product life cycle, where companies vie to sell their own wares against severe
competition.
The impact of sales promotions: Sales promotions typically increase the level of sales for the
duration they are floated. Usually, as soon as the schemes end, the sales fall, but hopefully,
settle at a higher level than they were before the sales promotion started. For the company, it
For consumers, these can offer great value for money. But sustained sales promotions can
seriously damage a brand and its sales, as consumers wait specifically for the sales promotion
to buy and not otherwise. Therefore, sales promotions are to be used as a tactical measure as
Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the
promotional mix are advertising, personal selling, direct marketing and publicity/public
relations.) Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve product
availability. Examples include contests, coupons, freebies, loss leaders, point of purchase
Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added value
Sales promotion is needed to attract new customers, to hold present customers, to counteract
competition, and to take advantage of opportunities that are revealed by market research. It is
made up of activities, both outside and inside activities, to enhance company sales. Outside
sales promotion activities include advertising, publicity, public relations activities, and special
sales events. Inside sales promotion activities includes window displays, product and
promotional material display and promotional programs such as premium awards and contests.
Sale promotions often come in the form of discounts. Discounts impact the way consumers
think and behave when shopping. The type of savings and its location can affect the way
consumers view a product and affect their purchase decision. The two most common discounts
are price discounts (“on sale items”) and bonus packs (“bulk items”). Price discounts are the
reduction of an original sale by a certain percentage while bonus packs are deals in which the
consumer receives more for the original price. Many companies present different forms of
Loyal Reward Program: Consumers collect points, miles, or credits for purchases and
Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
more of the product for the same price (for example, 25 percent extra). This is another
type of deal “in which customers are offered more of the product for the same price”.
For example, a sales company may offer their consumers a bonus pack in which they
can receive two products for the price of one. In these scenarios, this bonus pack is
framed as a gain because buyers believe that they are obtaining a free product. The
purchase of a bonus pack, however, is not always beneficial for the consumer.
Sometimes consumers will end up spending money on an item they would not normally
buy had it not been in a bonus pack. As a result, items bought in a bonus pack are often
Loss leader: the price of a popular product is temporarily reduced below cost in order
Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
purchased.
Mobile couponing: Coupons are available on a mobile phone. Consumers show the
Rebates: Consumers are offered money back if the receipt and barcode are mailed to
the producer.
o Aisle interrupter: A sign that juts into the aisle from the shelf.
o Kids eat free specials: Offers a discount on the total dining bill by offering 1 free
o Sampling: Consumers get one sample for free, after their trial and then could
There are different types of discounts available online versus in the stores. On-shelf couponing:
Coupons are present at the shelf where the product is available. * On-line couponing: Coupons
are available online. Consumers print them out and take them to the store.Although discounts
can be found online and in stores, there is a different thought process when shopping in each
location. For example, “online shoppers are more price-sensitive because of the readily
available low search cost and direct price comparisons”. Consumers can easily go to other
websites and find better deals as opposed to physically going to various stores. In addition,
buyers tend to refrain from purchasing bonus packs online because of the skepticism (of fraud
and scams) that may come with the deal. Since “…bonus packs are more difficult than price
discounts to process online, they are more difficult and effortful for the consumer to
understand”. For example, a buy-one-get-one-free deal on a website requires more work than
the same bonus pack offered in a store. Online, consumers have to deal with payment
processing, shipping and handling fees, and days waiting for the products’ arrival, while in a
store, the products are available without those additional steps and delays.
product.
Dealer loader: An incentive given to induce a retailer to purchase and display a product.
Trade contest: A contest to reward retailers that sell the most product.
Point-of-purchase displays: Used to create the urge of "impulse" buying and selling
Push money: also known as "spiffs". An extra commission paid to retail employees to
push products.
Trade discounts (also called functional discounts): These are payments to distribution
Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new
marketing initiatives.
Buy x get y free a.k.a. BOGOF for Buy One Get One Free
Many discounts are designed to give consumers the perception of saving money when buying
products, but not all discounted prices are viewed as favorable to buyers. Therefore, before
making a purchase, consumers may weigh their options as either a gain or a loss to avoid the
risk of losing money on a purchase. A “gain” view on a purchase results in chance taking. For
buy the product. One the other hand, a “loss” viewpoint results in consumers’ aversion for
taking any chances. For instance, consumers will pass on a buy-three-get-one-half-off discount
if they believe they are not benefitting from the deal. Specifically, consumers will consider
their options because “…the sensation of loss is 2.5 times greater than the sensation of gain for
Impulse Buying
Impulse buying results from consumers’ failure to weigh their options before buying a product.
Impulse buying is “any purchase that a shopper makes that has not been planned… [and is]
sudden and immediate”.For example, if a consumer has no intention of buying a product before
entering a store, but purchases an item without any forethought, that is impulse buying. Product
manufactures want to promote and encourage this instant purchase impulse in consumers.
Buyers can be very quick to make purchases without thinking about the consequences when a
promotional campaigns that will be effective in triggering consumer impulse buying behavior”
Comparing Prices
Many consumers read left-to-right, and therefore, compare prices in the same manner.For
example, if the price of a product is $93 and the sales price is $79, people will initially compare
the left digits first (9 and 7) and notice the two digit difference. However, because of this
habitual behavior, “consumers may perceive the ($14) difference between $93 and $79 as
greater than the ($14) difference between $89 and $75”. As a result, many times consumers
mistakenly believe they are receiving a better deal with the first set of prices based on the left
digit solely. And because of that common misconception, companies will use that method more
The right digit effect focuses on the right digits of prices when the left digits are the same. In
other words, prices like $45 and $42 force consumers to pay more attention to the right digits
(the 2 and 5) to determine the discount received. This effect also “implies that consumers will
perceive larger discounts for prices with small right digit endings, than for large right digit
endings. For example, in a $32-to-$31 price reduction, consumers will believe to have received
a greater deal than a $39-to-$38 price reduction. As a result, companies may use discounts with
smaller right digits to mislead consumers into thinking they are receiving a better deal and
increasing profit. However, consumers also are deceived by the infamous 9-ending prices. “The
right digit effect [also] relates to consumers’ tendency to identify 9-ending prices as sale (rather
than regular) prices or to associate them with a discount. For example, a regular price of $199
is mistakenly viewed as a sale or discount by consumers. Sales companies most commonly use
this approach because the misinterpretation of consumers usually results in an increase of sales
and profit.
Framing Effect
The Framing Effect is “the phenomenon that occurs when there is a change in an individual’s
preference between two or more alternatives caused by the way the problem is presented” In
other words, the format in which something is presented will affect a person’s viewpoint. This
theory consists of three subcategories: risky choice framing, attribute framing and goal
framing. Risky choice framing references back to the gain-or-loss thought processes of
consumers. Consumers will take chances if the circumstance is profitable for them and avoid
chance-taking if it is not. Attribute framing deals with one key phrase or feature of a price
discount that is emphasized to inspire consumer shopping. For example, the terms “free” and
“better” are used commonly to lure in shoppers to buy a product. Goal framing places pressure
on buyers to act hastily or face the consequences of missing out on a definite price reduction.A
“limited time only” deal, for example, attempts to motivate buyers to make a purchase quickly,
Outside Forces
Although there are aspects that can determine a consumer’s shopping behavior, there are many
outside factors that can influence the shoppers’ decision in making a purchase. For example,
even though a product’s price is discounted, the quality of that product may dissuade the
consumer from buying the item. If the product has poor customer reviews or has a short “life
span,” shoppers will view that purchase as a loss and avoid taking a chance on it. A product
can also be viewed negatively because of consumers’ past experiences and expectations. For
example, if the size of a product is misleading, buyers will not want to buy it. An item
advertised as “huge,” but is only one inch tall, will ward off consumers. Also, “the effects of
personal characteristics, such as consumers’ gender, subjective norms, and impulsivity” can
also affect a consumer’s purchase intentions. For example, a female will, generally, purchase
constraints”. Neither a discounted price nor a bonus pack has the ability to entice consumers if
Political issues
Sales promotions have traditionally been heavily regulated in many advanced industrial
nations, with the notable exception of the United States. For example, the United Kingdom
formerly operated under a resale price maintenance regime in which manufacturers could
legally dictate the minimum resale price for virtually all goods; this practice was abolished in
1964.
Most European countries also have controls on the scheduling and permissible types of sales
promotions, as they are regarded in those countries as bordering upon unfair business practices.
Germany is notorious for having the most strict regulations. Famous examples include the car
wash that was barred from giving free car washes to regular customers and a baker who could
not give a free cloth bag to customers who bought more than 10 rolls.
FOLLOWS :
(1) Rebate:
Under it in order to clear the excess stock, products are offered at some reduced price. For
example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of
time.
(2) Discount:
Under this method, the customers are offered products on less than the listed price. For
example, giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a discount of
(3) Refunds:
Under this method, some part of the price of an article is refunded to the customer on showing
proof of purchase. For example, refunding an amount of 5/- on showing the empty packet of
Under this method, along with the main product some other product is offered to the customer
Under this method, some extra quantity of the main product is passed on as a gift to the
customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a
free gift of one RICH LOOK shirt on the purchase of two shirts.
Under this method, a customer is asked to scratch a card on the purchase of a product and the
name of the product is inscribed thereupon which is immediately offered to the customer as a
gift. For example, on buying a car when the card is scratched such gifts are offered – TV,
Refrigerator, Computer, Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press, etc.
Under this method, the customers of a particular product are offered gifts on a fixed date and
the winners are decided by the draw of lots. While purchasing the product, the customers are
On the basis of this number alone the buyer claims to have won the gift. For example, ‘Buy a
bathing soap and get a gold coin’ offer can be used under this method.
Under this method, coupons are distributed among the consumers on behalf of the producer.
Coupon is a kind of certificate telling that the product mentioned therein can be obtained at
special discount.
It means that if a customer has a coupon of some product he will get the discount mentioned
therein whenever he buys it. Possession of a coupon motivates the consumer to buy the product,
Such coupons are published in newspapers and magazines. Some companies distribute coupons
among its shareholders. Sellers collect the coupons from the customers and get the payment
Under this method, the product is sold and money received in installment at 0% rate of interest.
The seller determines the number of installments in which the price of the product will be
Under this method, the producer distributes free samples of his product among the consumers.
This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea,
Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them,
(11) Contests:
Some producers organise contests with a view to popularizing their products. Consumers taking
part in the contest are asked to answer some very simple questions on a form and forward the
same to the company. The blank form is made available to that consumer who buys the product
first.
Result is declared on the basis of all the forms received by a particular date. Attractive prizes
are given to the winners of the contest. Such contests can be organised in different ways.
ROLE OF PROMOTION
Definition:
products.
Companies must communicate with their customers, this communication should not be left to
chance.
o Target Market
with your business in a new way, this sets you apart from your competition. Promotion
planning compels you to identify something new or different that offers value to your
customers;
Creates new content and communication opportunities – One of the easiest way to
create new content for your customers is to create news. Promotions are news. News
is content;
Creates upsell and cross sell opportunities – When you package or bundle products
around a theme or solution, you can often generate sales of multiple items rather than a
single item. When you focus on creating added value to your regular assortment, you
Drives customer decision making – Limited availability offers can create a sense of
scarcity in your customers that get them to act. When combined with new content that
helps customers clearly see the benefits of what you are promoting, you can create
compelling reasons to buy now. If you can add sampling of your promotional item to
customers are almost always in a routine to buy from you. Promotions can often get
your regular customers a new reason to be surprised and delighted by your business
Creates training opportunities for your staff – Like regular customers, your retail sales
staff (or any employees who have direct contact with customers), can fall into a routine
and lose the enthusiasm in their voice. Promotions gives you a chance to to train,
plan for new marketing programs focused at specific times of year. If you don’t have
a dedicated marketing team doing this for you already, creating a promotions mentality
will get you marketing with more frequency and give you more experience to build on;
Creates testing opportunities – Maybe you have ideas that you think customers will
like but are unsure of the outcome. Promotions give you a limited time window to test
new ideas and new products and to measure them. This will help you figure out whether
they warrant additional investment of time and money to make them permanent
products or services;
Grows revenue – As I like to say, Ka-Ching! This is the lifeblood of your business.
revenue growth.
Chapter – 4
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
4.1 Overview:
Research refers to „a search for knowledge‟. It can be defined as a scientific and systematic
solutions; collecting, organizing and evaluating data; making deduction and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis
It is a way to systematically solve the research problem. It may be understood as science of studying
how research is done scientifically. In it we study the various steps that are generally adopted by the
researcher in studying his research problem along with the logic behind them. In general methodology
is an optional framework within which the facts are placed so that the meaning may be seen more
clearly. The sources of data shown that designing of a research plan calls for decision on the data sources
are research approaches (primary) research instruments (observation survey experiment) sampling plan
A research design is the determination and statement of the general research approach or strategy
adopted for the particular project. It is the heart of the planning. If the design adheres to the research
Research design is a plan structured and strategies of investigation. It is the arrangement of condition
and analysis of data in a manner to combine relevance to the research purpose with economy in
procedure.
In order to achieve the objective it was necessary to talk to the customers and public to draws the
The size of the sample was around 100 people considering the time constraint.
4.5 Objectives:
To find what the major factors are effects on online shopping experience Health Vitals.
To know the impact of factors towards online shopping experience of Health Vitals.
The research involved gathering the Primary data. For the purpose two types of survey was
Consumer survey
Chapter – 5
ANALYSIS/
STUDY OF TOPIC
Data Reduction, Presentation & Analysis
DIRECT
MARKETING
SALES PERSONEL
PROMOTION SELLING
ADVERTISING PUBLIC
RELATION
ADVERTISING:
services in a variety of media outlets. It can be found everywhere. With advertising a company
advertisements weekly in popular newspapers like : Navbharat Times , Dainik Jagran , Sandhya
Times etc.
PUBLIC RELATIONS:
Public relations are somewhat similar to advertising in that much of it involves messages
communicated through mass media. The major difference is you don't pay for the time or space
for the message. A television or newspaper feature story mentioning a business, for instance,
SALES PROMOTION:
Media and Non-media marketing communication are employed for a pre-determined, limited
time to increase consumer demand, stimulate market demand or improve product availability.
In Health Vital we done sales promotion by park promotions , in park promotion we distribute
free samples of our products in the morning, which actually increases the sales of the company
, we also visited the doctors , and patanjali stores of some areas and we got a very good demand
from them.
During this phase, my task was to do promotional activities in the parks in the morning and in
This was the most interesting phase of my internship, as I got the chance to directly interact
with people (end consumer). The people had a lot of queries in mind related to our product and
it was very challenging but an interesting task to answer all their queries. While doing
promotions we used to distribute samples of our products along with the brochures to people
and try to convince them to consume our products by telling how beneficial it is for their health.
It enhanced my communication skills and the ability to analyze the behavior of people.
DIRECT MARKETING :
Direct Marketing is a channel agnostic form of advertising that allows businesses and non-
profits to communicate straight to the customer, with advertising techniques such as online
display ads, catalogue distribution and outdoor advertising. During my internship I have to visit
the markets and tell the retailers about our products and about our demand in the market and
PERSONEL SELLING :
generates direct contact with prospects and customers. It is one of the most expensive forms of
promotion.in this if any customer have any queries about the products we can answer to his
RE-LAUNCHING OF A PRODUCT
During the fourth phase I got an opportunity to work with my seniors on a project to re-launch
our product “Mahayog”. The company has launched a product MAHAYOG last year but due
to no advertisement and promotion activity the product couldn’t be able to attract more
customers. Now since company is giving advertisement in newspapers on every weekend and
also organizing promotion activities in the parks in the morning and in markets in the evening,
the demand had aroused and people started calling for more information on the helpline
the market and for that they hire a cab in which they took a ready stock of MAHAYOG along
with sample kits and standings. The company also started giving special schemes for that day
only. If any retailer orders for a product while re-launching, then they will get their order on
the spot and also company is providing them a kit of samples of products of company for the
retailers along with banners and posters to fix outside their shop.We covered West Delhi, East
Delhi, Ghaziabad, Noida, Gurgaon and Faridabad, during the process of re- launching of
product “MAHAYOG”.
I learned about the importance of proper marketing and promotional activities in order
The phase of my internship was regarding market research and data collection.The research
was done in order to analyze the performance of Health Vitals’ sales representatives in their
respective areas and the satisfaction level of the retailers’ in concern with the services offered
by Health Vitals.The research was carried out with a sample size of 100 retailers. I asked
retailers to give a bit of their time to fill a small questionnaire of 10 questions, so that with their
suggestions we can improve our products and services. While doing the research work, I got to
know that retailers are unaware about the schemes on MAHAYOG and they are purchasing it
Thus through these phases I got various marketing experiences and gained knowledge about
Once in a week we use to have a meeting with our company mentor Mr. Ankit Malhotra,
The motive of the meeting was generally the work we did in previous week and what
We discussed with him the learning we gained throughout the week and then we were
free to discuss whatever doubts we had in mind regarding the product or market etc.
In these meetings he actually wanted fresh ideas from us, because it was us who were
He also asked us to find out the loop wholes that are in the market and that hamper the
These meetings also served as the way of feedback for both sides. We gave him important
feedback of retailers/customers regarding product and he gave us the feedback for our work
Percentage of Margin
60
50
40
AVG
30 Swadeshi
Patanjali
20 Royal Organic
10
0
MARGIN
It shows that swadeshi and royal organic are offering a higher percentage of margins as
compared to AVG. Now, high margin leads to high demand in the market, as retailer seems to
be happy in selling those products in which they will get maximum margin.
SWADESHI:
In this case the prices of the products are almost same but problem is of margins these
companies give huge margins to the retailers, which is their first need. So in this case if the
company feels that any retailer has the potential to sell good stock, then they should provide
them special margins for that, so that company can boost the sales.
PATANJALI:
As we know that this product was sold with the mane of yoga guru Ramdev so people had trust
in his product, nobody cares about the quality he is serving and the cost of product he sells is
very less compared to our products. So price wise we can’t do anything but quality wise if
people will be told about that then surely we can improve because there are many cost to be
covered so keeping price low will killing our self, so only by increasing the awareness people
CUSTOMER SATISFACTION
Customer Satisfaction
Yes No
20 20 20 20 20
0 0 0 0 0
This chart shows the customer satisfaction on the basis of the quality of our products.
From this we can observe that there was no complaint from any customer on the basis of the
Customer Awareness
25
20
15
Yes
No
10
0
West South East Central North
This chart shows that are customers aware about our brand.
From this we can observe that in each region almost everyone is aware about our brand. But
what company needs to do is start making people aware about the products which was in less
demand.
OVERALL SERVICE SATISFACTION
20
15
10
0
West South East Central North
Yes 19 20 18 18 19
No 1 0 2 2 1
This chart shows the overall service satisfaction level of the retailers.
It showed that almost every retailer is satisfied with the products and services we are providing
to them. But there are few areas in which company’s demand is low and retailers are not happy
with that, so company needs to work in those areas by making people aware about the products,
Chapter – 6
FINDINGS/
OBSERVATION
FINDINGS & RECOMMENDATIONS
It was my first time experience in the business industry and it was simply outstanding because
Customer satisfaction is the most required thing for any business to sustain in the
market and by working in Health Vitals; I am able to know the importance of customer
satisfaction.
I was able to learn that how Heath Industries are working and what process they are
To apply the concepts learned in class and make some useful strategies for the company.
I came to know about the importance of communication skills and how to prepare the
sales pitch according to the requirement of the customer. Any presentation should be
I learned different promotion strategies that are taken by the company for increasing
their sales.
This internship helped us improve time management skills. We had to plan our day
This internship also taught me how to handle rejections. I learned not to feel depressed
as rejection is a part of the job. We need to analyze what went wrong and try to improve
RECOMMENDATIONS
After working for two months in the company, we learned a lot about the working style. The
employees here are very hard working and dedicated towards their work, but still there are
I would like to make some suggestions which I think will be of great importance for the
As we have been doing free sample distributions in parks and markets, it should be
The retailers prefer those products in which they get high margin. So company should
also increase their percentage of margin, as there are many competitors who are offering
the same product but with higher percentage of margin.Once AVG creates a strong
brand name for itself then they can decrease the margins because then demand from the
would not easily believe that our diabetic product Mahayog would help in controlling
the sugar level. So a medical representative would check the sugar level of the potential
customers and then give them the free sample of Mahayog which they can take for a
week and then again check their sugar level. Once they see some improvement in their
sugar level after taking the sample, they will buy it and also suggest it to others.
The company should also start advertising their products online. As social media site
facebook and twitter has millions of users on it, it would be a good platform for the
company to attract more and more potential customers by promoting the products there.
They already have a facebook page by name “Health Vitals Health Forum”, but there
The company should introduce few more products like Amla Candies, JNK powder,
Amla powder; as they have the potential to produce and sell it along with other
products.
In certain areas we found the problem that company’s sales representative does not visit
on regular basis. So after observing this problem this was very important point to be
taken into consideration as it spoils the name of the company and also effects its growth.
The company should also provide some special incentives to retailers who display
If an employee is doing hard work and putting his efforts for the company, so it is the
duty of the top management to take care of the appreciations, promotions, and
salary.They should also provide some rewards for better achievements because this
LIMITATIONS
No work is perfect; there are always some limitations in every work. It can be from the
As the market was scattered in a huge area and the sale force was not enough to tackle
It was very difficult to interact with customers sometimes because they take product as
One of the biggest limitations of this project was that, it was too hot to go and analyze
It can be inferred that the promotional strategies used such as free sampling of products, park
promotion (selling free samples in the park) has increased the sale of the various products.The
products are promoted through promotions in the park like distribution of free samples of the
product.
Various new ways to sell and promote the products are introduced. They are : media promotion,
online promotion and visibility of the product on the website. It is also identified that most of
the retailors are satisfied with the company’s product and services. It is also inferred that the
demand of the products of the company is increasing day by day in the market.
Annexure
QUESTIONNAIRE
Dear Sir/Madam,
Name:
Place:
I am the Sales and Marketing Trainee at Health Vitals (AVG), doing a project
on “Business Research”. I request you to kindly fill the questionnaire below and
1. Age
0-15 years
16-25 years
26-40 years
40- 60 years
Above 60 years
AVG Amla
Alovera
Triphala
Mahayog
3.From how long you are using it?
1-3 Month
3-6 Month
6-12 Month
Once
Twice
Thrice
Yes
No
Somewhat
6.Is the quality of the product better than our competitors (Swadeshi, Cura, GND, Royal
Yes
No
__________________________________________________________________
___
7..Is our product available easily in the market?
Yes
No
Quality
Price
Easy availability
Taste
Newspaper advertisements
Online
Chemist/Doctor
Word of Mouth
Yes
No
Any other suggestions:
___________________________________________________________________________
___
BIBLIOGRAPHY
www.healthvitals.in