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INTRODUCTION
1.1 Theoretical background of the study
Introduction
Sales promotion is the method of convince a prospective customer to purchase the products.
It is planned to be use as a small term to sales the product and sales promotion is aimed to
customer loyalty and targeted to the intermediaries at the company sales force. Sales
promotion includes 4 part of the Promotion mix up they are advertise the personal selling,
Direct Marketing, public relation, & sales Promotion, can be aimed at the consumer
members (such as whole seller retailer and ultimate customer) sales promotion targeted at
the consumer that is called as consumers sales promotion and the sales promotion targeted
at the retailer and wholesaler that is refers as trade sales promotion.
Sales promotion consist of various communication activities that provide valve to the
consumers and wholesalers and even retailers and also sales promotion include Coupon
samples premiums points of Purchase Display Rebates etc..
Sales promotion attract new customer to hold the present customer and to take advantage and
opportunities from the market research. It made the activities of both inside and outside
activity. In the internal sales promotion activity it include window display, promotional
programs product and promotional materials etc in the external sales promotion activities
includes advertisement, public relations etc.
Advertising:
It is public information that inform to the customer about promotion of ideas goods or
service.
Direct Marketing:
Direct marketing refers to the direct mail , direct selling direct marketing broad cast fixing
email marketing that communicate to the particular customers towards products.
Personal Selling
It refers to the where the seller use the people to advertise the product after meeting the with
customer. The aim is to support the customer to buy the product.
Public Relation:
It refers to the process of influence the people opinion towards a particular product and it
based o two way communications.
Sales Promotion:
It refers to the short term incentives and communication and it increase the consumer
demand and improve the product availability and encourage purchase the product.
Philip Kotler(1936), suggested that him sales promotion it includes all type of collection
of incentive tools small term plan to larger the purchase of exacting goods and services.
Paley (1996), According to him sales promotion is a behavior aim to inspire the sales
people retailer and the ultimate consumer to match the business plan through temporary
incentive.
In recent years sales promotion has use to coordinate the advertisement and personal
selling and a multiplicity of sales Promotion utensils like free samples premium, on sales
coupons, and gift, etc are use to stimulate market demand for goods and services.
Competition
Buying the product from the manufacturer will allow the customer to take part to win a prize.
The customer will get an opportunity to participate with the competitors in the market.
Discount voucher
Discount voucher are same like money voucher like a money off coupons.
Free gifts
The customers are provided with a free gift at a time of purchase in order to gain the
customer and provide better purchasing experience.
Loyalty cards
When customers receive points for purchasing the particular products at certain retailer that
can exchange for money or other offers.
It becomes an vital from of sales promotion it support the customer return to the retailer by
giving them discounts. Loyalty cards can offer the discount by making extra sales to the
customers and also it provide the details about buying behavior of the customers. Like where
do they purchase and at what time they should purchase? And what do they purchase?.
Advertisement
It is an important activity of sales promotion it is an oral and visual form of promotional
communication and non personal message to sells the products and services. Advertisement
is communicated through various mass media like news papers magazines, Television Radio
mail and new media such as website text message blogs etc.
The actual presentation of the message in a medium that is referred as “ad” ,“ad” increased
the use of their goods and services, throughout product brand which associate on product
image and product name with various qualities in the minds of consumer and also ads plan to
extract an immediate sales that is called as direct response advertising and promotion may
also be used to gain the workers or shareholders to a business is applicable.
Exchange offer:
It is a form of tender offer in which securities are offered as consideration instead of cash.
Loan
A loan is a liability provide by an organization to a new organization at an interest rate and it
is provided at a rate that is called as interest, and motivate to the lender to engage in the
loan.
A loan entails to assign of the topic assets for a certain time between lender and the
borrower. In a legal loan every of the responsibility and restriction to imposed by agreement
and also put the borrower under extra restriction called as loan covenants. Acting like
provider of loan in a financial institution such as banks and credit cards.
Extended warranty
It is called as service agreement or maintenance agreement. It also offered to the seller or
producer it additional price for the fraction of items a few total warranties that are purchase
for double years and the consumer contract with the company in the malfunction so it is
promote for 5 years extended guarantee ex it is actually only for 4 years guarantee. These
type of warranties are provide for a variety of products and warranties which be sold to the
retailers it could contain the charge for the seller it effect the competition from a car
dealership may be subcontract and car maintenance it may be a lesser rate it leads to
the compromise the excellence service.
The global edible oil market is anticipated to witness a substantial growth owing to increasing
popularity of unrefined, unprocessed, healthy, and organic oil. In the coming years, vegetable
oils with low cholesterol, fat, and calories are likely to gain high response due to growing
health awareness among people across the world. In addition, major improvement in retail
network, increasing crop yields, oil production, and growing economies are some of the
prominent factors supporting the growth of the global edible oil market. Furthermore, growing
popularity of canola oil, trans-fat free soybean oil, and emerging preference for olive oil will
drive the global market for edible oil.
The report offers a comprehensive overview of the global edible oil market covering all the
major factors such drivers, restraints and trends influencing the nature of the market. It also
features profiles of the leading players present in the market along with details such as
company overview, business strategies, trends adopted, and recent developments in the
respective field.
The retail segment is expected to drive the sales of edible oils on account of strong supply
chain of chain of edible oil products and established chain of retail outlets. Vegetable oil
consumption has increased in developing countries due to increasing demand from growing
population, surging retail sector, and rise in overall household income. Additionally,
manufacturers of edible oils are adopting advanced processing technique to offer healthier and
affordable oil. However, they lack in the production of edible oil in comparison with incoming
demand.
The market for edible oil can be segmented on the basis of type, end-users, and geography. In
terms of type, the market can be classified into palm oil, canola oil, olive oil, sunflower oil,
specialty blended oil, and corn oil. Increasing consumption of fried foods has significantly
increased the demand for edible oils. Based on end-users, the marker for edible oil can be
divided into food processor, food service, and retail. Improving living standards, changing
dietary habits, and increasing consumer preference for healthy edible oil supporting the growth
of the global edible oil market.
Geographically, the market for edible oil can segments into different regions such as Europe,
the Middle East and Africa, Latin America, North America, and Asia Pacific. Developing
countries such China and India are the major market for edible oil. China is one of the leading
consumer of edible oil across the world followed by Europe.
Future Growth and Prospects of edible oil industry
India is the global largest international buyer of edible oil and India is the 3 rd largest
consumer after china and EU edible oil have a high penetration of edible oil is approximately
10 kg per year it is consider as lesser in urbanized countries oil mostly import of soya bean
oil report for semi half edible oil utilization in India follow by groundnut oil and little
proportion of edible oils are sell in brand shape for trade level and in India vegetable oil is
purchased by buyers in restaurants and hotels and sold as loose oil.
Vegetable oil consumption continuous in the country and increase in the last years
12.2 kg and it is lower in the world consumption level is 18.9 kG and in Pakistan 17.2 kG
The urbanized globe has percapita utilization of 48 to 50 kg according to the nationwide
committee of Economic study oil is reach 15.85 17.94 and 19.13 kg by 2016-17 in per capita
income grows by 5% 7% and 4%.
MACRO SCENARIO:
The Edible Oils and Fats market worldwide is projected to grow by US$55 Billion, driven by a
compounded growth of 7.1%.
Vegetable & Seed Oil, one of the segments analyzed and sized in this study, displays the
potential to grow at over 8%. The shifting dynamics supporting this growth makes it critical for
businesses in this space to keep abreast of the changing pulse of the market. Poised to reach
over US$69.3 Billion by the year 2025, Vegetable & Seed Oil will bring in healthy gains
adding significant momentum to global growth.
Representing the developed world, the United States will maintain a 6% growth momentum.
Within Europe, which continues to remain an important element in the world economy,
Germany will add over US$1.9 Billion to the region's size and clout in the next 5 to 6 years.
Over US$1.6 Billion worth of projected demand in the region will come from the rest of the
European markets. In Japan, Vegetable & Seed Oil will reach a market size of US$3.2 Billion
by the close of the analysis period. As the world's second largest economy and the new game
changer in global markets, China exhibits the potential to grow at 10.6% over the next couple
of years and add approximately US$15.5 Billion in terms of addressable opportunity for the
picking by aspiring businesses and their astute leaders.
MICRO SCENARIO :
India is the 4thbiggest economy in the globe and the greatest upward economy with an GDP 7
% It have a people of 1.Billion and upward speed of 1.35% PA there are 4 classes of consumer
households with high effectiveness which vary in the utilization behavior and possession
pattern across a variety of category of goods it exits in rural and urban areas.
Importance of Edible Oils in the Country's Economy edible oil and oilseeds are essential
commodities. India contribute about 10% of the world oil seeds production about 9% of the
world production of vitamin meal and in the 3 rd largest edible oil economy in the world export
of oil for the financial year are 2013-2014 oil from 5.17 millions in 2012-13 million tons gone
up from 4180 crore to 4347 crore and the oil in the export market is about 9%.
CHAPTER-2
COMPANY PROFILE
Sree Susheel oil industries Private Limited Challaker was established in the year 1992. It
was founded by S. V Prahaladh , it is a sole propriter Company. Present propriter of
organization is Chidambaram.
The business objective is to ensure continuity in the production of coconut oil and the
company is engaged in extraction of coconut oil with usual furnish of excellence crop to suit
to the people from wide-ranging of areas.
The business is busy in removal and plant behavior of edible oils from coconut oil company
manufacture of excellence raw fabric from Challakere foremost coconut increasing in India
with regular supply of quality products company satisfy needs of people in the industry in
different sector.
Companies also engage in developing a network of marketing for consumer that is direction
for the industry. The company is flat with only 7 levels of results between the managing
director and an operator. They trust that responsive to environment that providing enriched
role to our member and dynamic and we continuously excellent in our work and innovate and
upgrade to offer edible oil.
showing overview of the company
Vision of Sree Susheel Oil Industries is greatly pleased our customers by supplying the
product with highest standards of the product and to encourage other industry to use there
company product.
Consumer interface
It is a structured system it provide an chance to persistently improve our process and
expertise. A scheme is set up to catch the tone of voice of client to assemble the potential
Sree Susheel Oil Industries trusts in the establish period old truth-‘QUALITY IS NOT A
DESTINATIONI IT IS A WAY OF LIFE’.
Coconut oil has been consumed ideally and it contains some advantages like health benefits
and immune system.
With the systematic extricate capacity and continuous newness in our product and we able to
give to the customers with the high quality of penguin pure and fresh coconut oil, Copra cake
refined coconut oil etc.
Products
Company is give to present its customers with best excellence coconut oil, copra and cake.
Company provides totally safe and hygienically accepted variety of harvest to our lengthy
folder of customers across the earth. A lengthy point about our harvest is planned under
Coconut edible oil
4 to 1.7 %. The oil is remove from the rough-ground manufactured goods by chemical
solvent to disappear a residue, de-oiled cake. Company makes utilize of N-hexane as an
removal solvent which is readily detachable from the extract manufactured goods to make
sure that they bring pure product.
Company ensures to present hygienically filled & well-timed delivered Copra. Copra is
called as dry coconut. Manufactured goods have protein contented and are broadly used
in extract clean oil. Copra can be made by burn drying, sun drying from the store
coconut with husk.
Coconut oil in bulk
Company's unmodified and coconut oil is crisply gotten from copra which is man-made
without trade off marginally with the brilliance. Their produced merchandise experience
RBD process which ensures the tidiness by refining, blanching and freshening up. In
industrialized of our fabricated merchandise they follow both of the accompanying two
techniques: Mechanically separate coconut oil from dried coconut meat. The oil is separate
by screw squeezing from Copra which is molded in nature from drying and putting away of
developed coconut with husk.
Complete coconut oil —penguin
Company present clean and new coconut oil named Penguin for a variety of placations
Penguin coconut oil widely use for hair care, toiletry & new home purpose. It has various
individual benefits as coconut oil seed that can be use from head to toe as well as for food
preparation. Their Coconut oil in its purest form can be custom-made as per customer need
and requirement. Coconut oil is very helpful for health and is good quality for the hair and
skin.
Refined coconut oil
Sree Susheel oil industries Private Ltd is having its manufacture unit in Challakere and the
marketing of the product is done in North India under the brand name Penguin.
Sun Drop
Sundrop was established in the year 1979 as a sunflower oil sundrop is the largest brand in
the refined oil in the consumer pack. Sunflower is the first player of the largest selling
refined oil brands sundrop is applicable in the 4 forms in order to meet the four form such as
sunderop, superlite, SundropNutrilite, Sundrop heart and Sundrop Goldlite Sundrop is the
largest brand of the refined oil and this brand stands on 4 pillars it built through the
differentiated positioning with the healthy oil for healthy people consistency with high
quality products.
Saffola
Awarded these brands in the year in 1992 and recently awarded again in 2004 with the
advertising club of Mumbai. These brand is continuous rationalize and promote itself it
newly defined as a shop was established in 1996 shield glvy free pouring FLIP FLOP AS
heart of healthy family and increase to a valve added to the edible oil.
Sun Gold
It was transpire from original sunflowers seed oil without having savour. The mono
unsaturated fatty acid help in maintain fat in human blood and helps in shelters health from
heart diseases the oil which contains with a and D vitamins that is available in the sunflower
oil.
Gemini
Gemini refined oil reaches to the consumer and different packaging technology that is
maintain in the oil.
The oil which is comes with the vitamins of A B & E to elevate health of the people and
these oil is largest selling in Tamilnadu and the people are purchasing more and more to
maintain there healthy lives.
Fortune
The main objective of this oil is to craft a different effectiveness of new mantra of JOY OF
EATING that is protected its market leadership for last 5 years by this reposition it
strengthens its further market share.
Gold winner
It was established by the kaleesuwari refinery private limited in the year 1992 these was
provided the good quality of products at cheap price with in the short time the gold winner
become the most favor brand.
The Sree Susheel oil industries planned to transform into a modern, market-oriented
company. With a renewed product range, modern packaging and a wealth of other
innovations, Sree Susheel oil industries is competing in the regions of the highest grade
coconut oil market, both nationally and internationally.
Financial statement of Sree Susheel oil industries
Shareholders’ Funds
Equity share capital 600000 600000
Reserve and surplus 4054279 4620384
Money received
Against share warrants ‒ ‒
Share holders
Money Pending Allotment 600000 600000
Current Liabilities
Trade payable 5208568 6897839
Short term provisions 4510000 3316076
Other current liabilities 1120112 1465663
Short term borrowings 22321 56095
ASSETS
Noncurrent assets
Fixed assets
Tangible assets 7760959 8495365
Intangible Assets _ _
Capital work in progress _ _
Intangible Assets _ _
Current assets
Current investments
Inventories 3689356 5710680
Trade receivables 6299885 6992730
Cash and Bank balance 77550 315845
loan and advance 6000000 6000000
other current assets 3969455 3740516
Total 17737536 23647267
CHAPTER-3
RESEARCH DESIGN
Review of literature
Literature reviews
Sales promotion is an vital part of the promotion for together manufacturer as well as
wholesales of durable and non durable consumer goods. In developed country allotment of
resources to sales promotion exceed spend on ad manage are now depend a lot on sales
promotion since it influence on sales that is extra express and proven more when compared
to advertisement price promotion agree to buyer to make some saving of cash where as non
cost promotion like premium add values to the offers. The dynamic nature of sales Promotion
gain a lot of researcher to turn their consciousness to the study the a variety of issues linked
to this element of advertising mix many studies have been conduct on development
evaluation aspect and implementation of salesPromotion.
Bell donaldson (2015), According to him sales promotion refers to any activity to sell a
product and can be both a supplement to other forms of customer communication and a form
communication in its own right but new media have blurred the lines between the 2.
Martin R Schlissel (2014), Defined sales promotion strategy is the better marketers in the
sample emphasize heavier advertise and personal selling effort than the competitors
promotion is a major problem for all sample members in a part because of consumer
perceptions consider a high risk in the purchase of services.
AMA (American Marketing Association) 2013, According to him Sales promotion
include all sales activities that complements together own marketing and advertise and
co-ordination with them and help them in successful such as display show and exhibition
demonstrations and other non recurring advertising effort not use in the regular every
day.
Ken Kasar (2012), SalesPromotion is a total beginning to the principle and practice the
pathway explores the social moral and legal issue of promote the past influence and
medium choice processes and included marketing communication. The text provides
summary of how memo utensils can be use to arrive at target audience and raise customer
knowledge.
Riddy Mullin (2010), According to him Sales promotion is one of the most powerful
weaponry available in the sales and marketing staff and it is used for other type of
marketing because it works 50% of customers repeatedly take benefits of some variety of
sales promotion every month.
Drypen (2008), he suggested that Sales promotion refers include motivation contribution
and awareness creating actions which in general small term advertising measures other
then promotion Personal Selling Publicity and Direct Marketing.
Anderson (2009), According to him sales promotion regarded that the best utensils
during the opening of the sales of a new product or product line or free accessories and
discount towards a purchase of the product that is already well-liked by the customer.
Tony Yeshin(2006), Sales promotion is an important implement with the largely a moury
of marketing communications sales promotion has increases the significantly as the
distribution channel of choice in current years the sales promotion help marketers to a
achieve particular objectives.
Landreville (2003), According to landreville sales promotion regarded as revealed in
their research most evident reasons for sales promotions used in increase the small term
sales and also increase the awareness on exiting product.
Low and Mohr (2000), He said that brands of the goods with high quality of the products
and spending the money of advertisement to sell the products and to attract the customers
towards the goods and services.
Paley (1996), he Referred sales promotion is an activities is to motivate the sales people and
to the consumers to match company plan through short-term incentive.
Robert C and Scott A(1995), Deals that sales promotion is a collected of tools in a small
turn to stimulate the high quality of purchase of goods and services
Statement of problem
The project is mainly undertaken to the study of sales promotion at Sree Susheel oil
industries Challakere . The exactly the study is to final what quality or features are need
for the product to be more better in the market.
The organization is depending on the sales. The organization has tool the effective sales
promotion in order to increase the profit of the organization and also to improve sales
Sales promotional activity is not only satisfy the company goad .it also fulfill the
customer to satisfy there wants and also helps in acquiring new customers. The effective
sales promotion helps the organization in acquiring the new customer to consumes the
new products which is available in the market. The aim of sales promotion is to introduce
the new products in to the market. And the study make effort to assess the promotional
activity in the organization.
With a view to understand the crunch of the matter and to find out the ground realities the
researcher formed a schedule specifically for the set of respondent and the researcher and
researcher met the respondent personally fill the questionnaire.
A comparative study is also made studying the various parameters such as price package a
quality health benefits promotional activity carried with the other companies.
The research has been done in the following manner.
Type of research undertaken is systematic.
Technique used is random sampling.
Sample size taken is 50
Data is used include both primary and secondary.
Primary data- Questionnaire
Secondary data- Books, Journals, Websites
Tool which is used for research is questionnaire.
Analysis and Interpretation will be carried out through tables and graphs.