DECLARATION

I Mansi Gupta hereby declare that the project report entitled "SALES PROMOTION OF

HEALTH VITALS." submitted by me to Jims Engineering Management Technical Campus,

Greater Noida

in partial fulfillment of the requirement for the awar of the degree of BACHELORS IN

BUSINESS ADMINISTRATION is a record of bonafide project work caried out by me

under the guidance of Rashi Gupta. I further declare that the

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

or any other institute or university

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

long way in the journey of life on which I am about to embark.

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

information and guidance, which helped me in completing this project.

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

prestigious organization like Health Vitals.

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

supply chain management of the company.

Health Vitals was established in 2007 with the thought of,

“ALWAYS CHEERING FOR A FUNCTIONAL HEALTH”

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

products and services.

This research helped me apply my theoretical knowledge practically. I have mentioned the

result and analysis of this research in the report.

I also did the SWOT Analysis of Health Vitals. Based upon the analysis I have given some

suggestions and recommendations to the company. I have also mentioned the limitations of

the project which can be worked upon.

This report is basically a synopsis of all the work done by me in the duration of two months

of Summer Internship.
 CONTENTS

S. No. Topic Page No

1 Executive Summary

2 Chapter-1: Introduction

3 Chapter-2: Company Profile

4 Chapter-3: Literature Review

5 Chapter-4: Research Methodology

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 displays, premiums, prizes, product samples, and rebates

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 or incentives to consumers, wholesalers, retailers, or other organizational customers to

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,

point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

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

VITALS, it is relatively importanttake up internship assignment on “SALES PROMOTION”

IN HEALTH VITALS. During the project work, it is being analyzed the sales promotion

strategies of this organization. Decisions relating to promotion strategies referred to as sales

promotion. Sales promotion describes promotional methods using special short-term

techniques to persuade members of a target market to respond or undertake certain activity.

As 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 inclusion of additional value-added material.

OBJECTIVES OF THE STUDY:

 A managerial insight into role of marketing communications mix in increasing sales

of the company & brand activation with a focus on Sales Promotion & Personal sales.

o To study the promotional activities of the Organization.

o To participate in all the promotional activities of the organization.

o To analyze the role of marketing communications mix in increasing sales of

the company & brand activation.

 o To bring out new ways to sell our product in market through different

promotional tools like newspaper advertisements , magazine advertisements ,

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.

o To identify the products those were most preferred by the retailers.

o To get in touch with the retailers.

o To make certain recommendations to the company to enhance the satisfaction

level of retailers.

o To know the demand and availability of our product in the market.

 SCOPE OF THE STUDY:

Primary data has been be used for the study. Primary data was collected through

direct interaction with the company’s marketing department. If needed

schedule/questionnaires would be devised to get the information on all the relevant

areas of the study.

 Chapter – 2
COMPANY PROFILE
2.1 Overview of Industry as whole

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.

STATUS OF AYURVEDA IN INDIA

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

Ayurveda have emerged:

 Number of registered medical practitioners: 366,812

 Number of dispensaries: 22,100

 Number of hospitals: 2,189

 Number of hospital beds: 33,145

 Number of teaching institutions (undergraduate): 187

 Number of upgraded postgraduate departments: 51

 Number of specialties in postgraduate medical training: 16

 Number of pharmacies manufacturing Ayurvedic medicines: 8,400

In India, 60% of registered physicians are involved in non-allopathic systems of

medicine. 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 new clinic complex is serving visitors from abroad is

mentioned in Appendix 3.

MODERN MARKET DEVELOPMENTS

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

necessarily reflecting traditional practices. Of necessity, such research eventually focuses on

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.

As an example of development of Ayurvedic nutriceuticals, Sabinsa Corporation, a U.S.

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,

Health Vitals was established in 2007.

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 CHEERING FOR A FUNCTIONAL HEALTH ”

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 came into existence a decade later in 2007.

Incorporated in 2012

Involved in Product Development & production, Packaging & logistics through our

associates & Sister Concerns.

Head Office in Chandigarh & Zonal Sales office in Delhi

Turnover - 40 million.

Deals in Marketing & Branding of various products like Nutraceuticals, Ayurvedic,

Nutritional, food products under its own Brand Name.

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:

"LET EVERYBODY BE HEALTHY & LET EVERYBODY BE HAPPY "

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

quality of our products and ethical standards of the company.

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 households with our innovative strategies.

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

quality of our products & service for our clients.

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 trust because where health is concerned trust is a mandate.

FOUNDER'S MESSAGE

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

customers, so as to maintain our brand name.

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

consideration has always been a tradition at Health Vitals.

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

AMLA VITAL GREEN (AVG)

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 these problems one can consume AVG.

It acts as:Anti-oxidant, Detoxicant, Anti-fatigue, Anti-stress, Anti-aging, and Anti-disease.

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.

ALOE VERA GREEN

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,

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 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:

 Managing Smartly Your Life Style Diseases.

 Diabetes, Stress,Heart Obesity & Weakness. 

 A Cinnamon based Herbal Blend Processed with Arjuna, Jamun&SafedMusli.

INGREDIENTS:

Mahayog is a unique combination of Curative, Corrective, Revitalizing& Stress Buster

Herbs. Corrective Herbs: Arjuna, Giloy, Brahmi,Ashwagandha , Dalchini(Cinnamon)Triphla

(A World famous classical Ayurvedic formulation) + Aloevera.Curative Herbs: Jamun,

Karela, Meshshringi, Methidana, Neem, Gorakhmundi.Revitalizing& Stress Buster

Herbs: SafedMusli, Ashwagandha&Brahmi.

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 and controlling their problem in time.

2.3 Problems of the Organization

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.

Let’s take a closer look at 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,

or claim the employee wasn’t a fit anyways.

The truth shows something quite different.

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

secondary reasons that are also caused by managers.

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

biggest reason it happens.

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

variance in predicting employee performance is how effective their manager is.

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

managers can even name the strengths of their employees.

It’s hard to be productive if your manager doesn’t take advantage of your strengths, nor do

the things that make you engaged at work.

3) Process Management

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

that focusing on the strengths of your team is hugely beneficial:

“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

to resolve issue at a time.

4) Making their Numbers

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

the root cause of missed targets or success.

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

to more dramatic changes to the team or manager will things improve.

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

process doesn’t unfold as they’d hope.

“Total Motivation” creator Lindsay McGregor has noted that a clear job role can be almost

2x more important than compensation in determining productive motivation among

employees once you hire and onboard them.

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

in future jobs in study after study.

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

than leadership by example.

If they’re careful and diligent, their team will be, too.

If they’re curt and brief, unfortunately, so will their team.

This can be extremely costly. However, many of these costs are hidden from senior

leaders. A few stats from HelpScout paint a stark picture:

 How many bad experiences are happening you don’t know about? A typical

business hears from 4% of it’s dissatisfied customers.

 How much are unhappy customers not spending with you? On average, loyal

customers are worth up to 10 times as much as their first purchase.

  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

Every company claims to be innovative, and wants to be thought of as an industry leader.

Yet, many fail to get beyond buzzwords and marketing claims.

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

develop employee ideas, not come up with their own.

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

good idea isn’t given the light of day.

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

study found it’s the #1 complaint of employees about their boss.

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

are stifling innovation on their teams.

2.4 Competition Information

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

provided for them, arranged here from oldest to newest:

Dabur India Ltd. is India's largest Ayurvedic

medicine supplier and the fourth largest producer of

FMCG. It was established in 1884, and had grown to a

business level in 2003 of about 650 million dollars per

year, though only a fraction of that is involved with

Ayurvedic medicine. Last year, about 15% of sales

volume was pharmaceuticals, the remaining 85% were

mostly non-medicine items such as foods and

cosmetics. Dabur's Ayurvedic Specialities Division has

over 260 medicines for treating a range of ailments and

body conditions-from common cold to chronic

paralysis. These materials constitute only 7% of Dabur's

total revenue (thus, less than 50 million dollars). Dabur

Chyawanprash (herbal honey) has a market share of

70% and chewable Hajmola Digestive Tablets has an

88% share. Other major products are Dabur Amla Hair

Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth

Powder).

Sri Baidyanath Ayurvedic Bhawan

Ltd. (Baidyanath for short) was founded in 1917 in

Calcutta, and specializes in Ayurvedic medicines,

though it has recently expanded into the FMCG sector

with cosmetic and hair care products; one of its

international products is Shikakai (soap pod) Shampoo.

Baidyanath has a sales volume of about 350 million

dollars, but most of the product sales are in the cosmetic

range. The company reports having over 700 Ayurvedic

products, made at 10 manufacturing centers, with 1,600

employees. Included items are herbal teas, patent

medicines, massage oils, and chyawanprash.

Zandu Pharmaceutical Works was incorporated in

Bombay in 1919, named after an 18th-century

Ayurvedic. The company focuses primarily on

Ayurvedic products (in 1930, pharmaceuticals were

added, but the pharmaceutical division was separated

off about 30 years later). However, today Zandu has a

chemicals division and cosmetics division. Its total

sales volume is about 45 million dollars. One of its

current projects is to develop a dopamine drug from a

plant extract, applying for new drug status in the U.S.

The Himalaya Drug Company  was

established in 1934 in Bangalore. It currently has a

business level of about 500 million dollars and has a

U.S. distribution division (Himalaya USA). It is known

in the U.S. for the product Liv-52, marketed as a liver

protector and therapy for liver diseases like viral

hepatitis; the product was first marketed in India in

1955.
 Charak Pharmaceuticals was founded in 1947, and

currently has three distribution centers in India; it

produces liquids, tablets, and veterinary supplies. It has

gained a large advantage with its new product Evanova,

a preparation containing 33 herbs and minerals and

non-hormonal active ingredients used as a menopause

treatment alternative to HRT. Soya is one of the main

ingredients in this product. The product also contains

Ayurvedic herbs that act like selective estrogen receptor

modulators as well as asparagus root (shatavari), which

reduces the frequency and intensity of hot flashes.

Vicco Laboratories was established in 1958. It

mainly produces topical therapies based on Ayurveda

and is best known internationally for its toothpaste

product, Vajradanti, which has been marketed in the

U.S. for more than 25 years.

The Emami Group, founded in 1974, provides a

diverse range of products, doing 110 million dollars of

business annually, though only a portion is involved

with Ayurvedic products, through its Himani line; the

company is mainly involved with toiletries and

cosmetics, but also provides Chyawanprash and other

health products.
 Several small companies that have grown rapidly in recent years envision themselves as

primary players in the Ayurvedic market.

2.4 SWOT Analysis of Health Vitals

STRENGTHS:

 One of the oldest brands of Amla juice with a good reputation in the market.

 The quality of our products is appreciated by the customers.

 Introducing innovative concepts by producing Amla juice along with its fibres was

different from others.

 Production techniques, is itself the biggest strength of the company, production of

AVG Amla is done not by boiling but by crushing the Amla’s, so that its purity and

nutrients are not spoiled.

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

retailers find it difficult to sell them.

 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

are offering a higher percentage of margins.

OPPORTUNITY:

 The product line of the company is not so large which they can now increase as the

demand of the products is good.

 With high demand of our products in Delhi/NCR, the company can think to expand

their business in other parts of India.

THREATS:

 The new entrants offering higher percentage of margins.

 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

to sell Patanjali products as compared to company’s products.

 Chapter – 3
LITERATURE REVIEW
 REVIEW OF LITERATURE

Definition: Sales promotions are the set of marketing activities undertaken to boost sales of

the product or service.

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

can be a means to gain market share, though an expensive way.

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

part of an overall plan, and not as an end itself.

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 displays, premiums, prizes, product samples, and rebates

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 or incentives to consumers, wholesalers, retailers, or other organizational customers to

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, point-of-purchase (POP)

displays, contests, rebates, and sweepstakes.

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 discounts in advertisements, hoping to convince consumers to buy their

products.
Consumer sales promotion types:

 Price deal: A temporary reduction in the price, such as 50% off.

 Loyal Reward Program: Consumers collect points, miles, or credits for purchases

and redeem them for rewards.

 Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage

marked on the package.

 Price-pack/Bonus packs deal: The packaging offers a consumer a certain 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 wasted and is viewed as a “loss” for the consumer.

 Coupons: coupons have become a standard mechanism for sales promotions.

 Loss leader: the price of a popular product is temporarily reduced below cost in order

to stimulate other profitable sales

 Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper

for delivery.

 Checkout dispensers: On checkout the customer is given a coupon based on products

purchased.
 Mobile couponing: Coupons are available on a mobile phone. Consumers show the

offer on a mobile phone to a salesperson for redemption.

 Online interactive promotion game: Consumers play an interactive game associated

with the promoted product.

 Rebates: Consumers are offered money back if the receipt and barcode are mailed to

the producer.

 Contests/sweepstakes/games: The consumer is automatically entered into the event

by purchasing the product.

POINT OF SALES DISPLAY

o Aisle interrupter: A sign that juts into the aisle from the shelf.

o Dangler: A sign that sways when a consumer walks by it.

o Dump bin: A bin full of products dumped inside.

o Bidding portals: Getting prospects

o Glorifier: A small stage that elevates a product above other products.

o Wobbler: A sign that jiggles.

o Lipstick Board: A board on which messages are written in crayon.

o Necker: A coupon placed on the 'neck' of a bottle.

o YES unit: "your extra salesperson" is a pull-out fact sheet.

o Electroluminescent: Solar-powered, animated light in motion.

 o Kids eat free specials: Offers a discount on the total dining bill by offering 1

free kids meal with each regular meal purchased.

o Sampling: Consumers get one sample for free, after their trial and then could

decide whether to buy or not.

Online deals vs. In-store deals

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.

TRADE SALES PROMOTION TECNIQUES

  Trade allowances: short term incentive offered to induce a retailer to stock up on a

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

your product on the spot.

 Training programs: dealer employees are trained in selling the product.

 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

channel members for performing some function .

Retail Mechanics

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

Three for two

Buy a quantity for a lower price

Get x% of discount on weekdays.

 Free gift with purchase

Consumer Thought Process

Meaningful Savings: Gain or Loss

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

example, if there is a buy-one-get-one-half-off discount that seems profitable, a shopper will

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 the same value”.

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 product is perceived to be a good deal Therefore, sales companies
“increasingly implement promotional campaigns that will be effective in triggering consumer

impulse buying behavior” to increase sales and profit.

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 often than not to make a profit.

Right Digit Effect

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, or buy on impulse, before the time runs out.

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 a cosmetic product more often than a male.

In addition, “some…shoppers may be unable to buy [a product]…because of financial

constraints”. Neither a discounted price nor a bonus pack has the ability to entice consumers

if they cannot afford the product.

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.

IMPORTANT TECHNIQUES OF SALES PROMOTION ARE AS

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 50% + 40% by the KOUTONS.

(3) Refunds:

Under this method, some part of the price of an article is refunded to the customer on

showing proof of purchase. For example, refunding an amount of 5/- on showing the empty

packet of the product priced 100/-.

(4) Product Combination:

Under this method, along with the main product some other product is offered to the

customer as a gift. The following are some of the examples:

(5) Quantity Gift:

Under this method, some extra quantity of the main product is passed on as a gift to the

customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a

free gift of one RICH LOOK shirt on the purchase of two shirts.

(6) Instant Draw and Assigned Gift:

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

name of the product is inscribed thereupon which is immediately offered to the customer as a

gift. For example, on buying a car when the card is scratched such gifts are offered – TV,

Refrigerator, Computer, Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press, etc.

(7) Lucky Draw:

Under this method, the customers of a particular product are offered gifts on a fixed date and

the winners are decided by the draw of lots. While purchasing the product, the customers are

given a coupon with a specific number printed on it.

On the basis of this number alone the buyer claims to have won the gift. For example, ‘Buy a

bathing soap and get a gold coin’ offer can be used under this method.

(8) Usable Benefits:

Under this method, coupons are distributed among the consumers on behalf of the producer.

Coupon is a kind of certificate telling that the product mentioned therein can be obtained at

special discount.
It means that if a customer has a coupon of some product he will get the discount mentioned

therein whenever he buys it. Possession of a coupon motivates the consumer to buy the

product, even when he has no need of it.

Such coupons are published in newspapers and magazines. Some companies distribute

coupons among its shareholders. Sellers collect the coupons from the customers and get the

payment from the company that issues the same.

(9) Full Finance @ 0%:

Under this method, the product is sold and money received in installment at 0% rate of

interest. The seller determines the number of installments in which the price of the product

will be recovered from the customer. No interest is charged on these installments.

(10) Samples or Sampling:

Under this method, the producer distributes free samples of his product among the

consumers. Sales representatives distribute these samples from door-to-door.

This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea,

Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them,

they buy it and in this way sales are increased.

(11) Contests:

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

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

buys the product first.

Result is declared on the basis of all the forms received by a particular date. Attractive prizes

are given to the winners of the contest. Such contests can be organised in different ways.

ROLE OF PROMOTION

Definition:
To communicate with individuals, groups or organizations to directly or indirectly facilitate

exchanges by informing and persuading one or more audiences to accept an organization's

products.

Companies must communicate with their customers, this communication should not be left to

chance.

Design communication to your specific target audience:

o Target Market

o Part of Target Market

o Different stakeholders of your organization.

Here are nine benefits of running a well-planned sales promotion:

 Creates differentiation – When you launch a new product or ask customers to engage

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 can charge premium prices;

 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 the mix, you'll create a lot of reasons for customers to buy;

 Creates word-of-mouth opportunities – If you operate a retail store, your regular

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

which gets them to talk about you to their friends;

 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, prepare and reengage them in what’s new in your business;

 Creates company focus on marketing – Developing a promotion calendar forces you

to 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.

Sales promotions are a great way to build year-over-year and month-over-month

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

search for pertinent information on a specific topic.

Research comprises defining and redefining problems, formulating hypothesis or suggested

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

4.2 Research Methodology:

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 and contact methods (personal interviews).

4.3 Research Design

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

objectives, it will ensure that the client need will be served.

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

conclusions regarding the objective.

Data has been collected through both primary approach.

4.4 Sample Size:

The size of the sample was around 100 people considering the time constraint.

4.5 Objectives:

 To analyse how gender effects on online shopping in Health Vitals.

 To analyse how age effects on online shopping in Health Vitals

 To analyse how much difference there between expected and perceived variables.

 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.

4.6 Data Sources:

The research involved gathering the Primary data. For the purpose two types of survey was

conducted by me to collect the data -

 Customer survey and

 Consumer survey
 Chapter – 5
ANALYSIS/
STUDY OF TOPIC
 Data Reduction, Presentation & Analysis

In Health Vitals My internship covered these 5 aspects of marketing communication mix.My

work was completely a hardcore field job.

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ADVERTISING:

It is a form of non-personal promotion. It is when companies pay to promote ideas, goods or

services in a variety of media outlets. It can be found everywhere. With advertising a

company engages in a one-way communication to the prospect or customer. Company gives

their 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, isn't paid for and can provide brand exposure.

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

market areas in the evening with other colleagues.

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 take orders froms the retailer also.

PERSONEL SELLING :

Basically it is one-to-one communication between seller and prospective purchaser. It

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 questions right their only.

 ONE OF THE BEST JOB DURING MY INTERNSHIP WAS :-

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 numbers that is provided in the advertisement. So company plans to re-launch

MAHAYOG in 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

to make a product a success.

STUDY OF HEALTH VITALS RETAILERS’ SATISFACTION LEVEL TOWARDS

COMPANY PRODUCT AND SERVICES

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 from our distributor without any scheme.

Through this phase I got to apply my knowledge of Business Research Methods learnt in

college and analyze an actual data.

Thus through these phases I got various marketing experiences and gained knowledge about

practical applications of marketing theories.

WEEKLY MEETING WITH COMPANY MENTOR

Once in a week we use to have a meeting with our company mentor Mr. Ankit Malhotra,

Assistant Sales and Marketing Manager.

 The motive of the meeting was generally the work we did in previous week and what

we are supposed to do in coming weeks.

 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

actually representing the company in market.

 He also asked us to find out the loop wholes that are in the market and that hamper the

growth or sales of the company

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

and how we can improve our work.

 COMPETITOR ANALYSIS:

MARGIN OF DIFFERENT COMPANIES

Q1 MAKE A CHART/GRAPH THAT SHOWS THE PERCENTAGE OF MARGINS

OF DIFFERENT COMPANIES IN THE MARKET.

Percentage of Margin
60

50

40 AVG
Swadeshi
Patanjali
30 Royal Organic

20

10

0
MARGIN

This chart shows percentage of margins of different companies in the market.

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 would understand the difference.

CUSTOMER SATISFACTION

Q2 MAKE A GRAPH/CHART THAT SHOWS THE CUSTOMER SATISFACTION

ON THE BASIS OF QUALITY OF THIS PRODUCTS.

Customer Satisfaction
Yes No

20 20 20 20 20

0 0 0 0 0
West South East Central North

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

quality we were offering to them.

Therefore the quality was the company’s biggest strength.

CUSTOMER AWARENESS

Q3 MAKE A CHART/GRAPH THAT SHOWS HOW MANY CUSTOMERS ARE

AWARE ABOUT THIS BRAND.

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

Q4 MAKE A CHART/GRAPH THAT SHOWS THE OVERALL SERVICE

SATISFACTION LEVEL OF THE RETAILERS.

 Overall Service Satisfaction
25

20

15

10

0
West South East Central North

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, so that demand would increase.

 Chapter – 6
FINDINGS/
OBSERVATION

FINDINGS & RECOMMENDATIONS

It was my first time experience in the business industry and it was simply outstanding

because I learned more than my expectations.

 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

following to get the progress in competitive market.

 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

prepared keeping in mind the respective audience and their interests.

 I learned different promotion strategies that are taken by the company for increasing

their sales.

 To learn to be multitasking, so that different problems can be solved at a time.

 This internship helped us improve time management skills. We had to plan our day

based upon the areas we need to cover during the day.

 I learned how to work in a team effectively.

 I also got a chance to explore the market and collect data fromthe retailers. This

helped me enhance my analytical skills and practically learn data collection.

 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 it for further meetings.

 To develop a network that will be useful for me to enhance my career.

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

some changes that they should take to make performance better.

I would like to make some suggestions which I think will be of great importance for the

company and their management.

 As we have been doing free sample distributions in parks and markets, it should be

continued, so as to create an awareness regarding FAB’s of ourproducts.

 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 customers would derive orders from retailers.

 The company should organise medical camps as a promotion strategy. As customers

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 was no update or promotion of the product on that page since December.

 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

company’s products on their shelves.

 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

thing helps to motivate the employee.

LIMITATIONS

No work is perfect; there are always some limitations in every work. It can be from the

company side or from the employee side.

 As the market was scattered in a huge area and the sale force was not enough to tackle

it properly, so sometimes some markets were left uncovered.

 It was very difficult to interact with customers sometimes because they take product

as granted and show no interest in the briefings of the product.

 One of the biggest limitations of this project was that, it was too hot to go and analyze

the unknown areas.

 Chapter – 7
CONCLUSION

CONCLUSION
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:

Gender: Male Female

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 assure you that data generated shall be kept confidential.

1. Age

 0-15 years

 16-25 years

 26-40 years

 40- 60 years

 Above 60 years

2. Which product of Health Vitals (AVG) are you using?

 AVG Amla

 Alovera

 Jamun Neem Karela

 Triphala

 Mahayog

3.From how long you are using it?

  1-3 Month

 3-6 Month

 6-12 Month

 More Than a Year

4.How many times do you take it in a day?

 Once

 Twice

 Thrice

5. Is the product helpful to cure your disease?

 Yes

 No

 Somewhat

6.Is the quality of the product better than our competitors (Swadeshi, Cura, GND, Royal

Organic or any other)?

 Yes

 No

If no then, how can we improve?

__________________________________________________________________

___

7..Is our product available easily in the market?

  Yes

 No

8.What are your main criteria in choosing our product?

 Quality

 Price

 Easy availability

 Good for health

 Taste

9.How did you get to know about our product?

 Newspaper advertisements

 Online

 Chemist/Doctor

 Word of Mouth

10. Would you recommend it to others?

 Yes

 No

Any other suggestions:

___________________________________________________________________________

___

BIBLIOGRAPHY
 www.healthvitals.in

 Mr. Diwakar Garg #09501106343 (Business Development Manager)

 Mr. Surender Singh #09311999463 (Regional Sales Manager)

 Mr. Dhan Singh #09990535634 (Area Sales Manager )

 Mr. Ankit Malhotra #09873196873 (Assistant Sales and Marketing Manager)

 Mr. Ravi Kumar #07428859086 (SR West Delhi)

 Mr. Tajinder Singh #09873056376 (SR North Delhi)

 Mr. Shri Ram #09582120710 (SR Central Delhi)