Professional Documents
Culture Documents
By
NAVANEETH RAO E RAKSHITHA VA
II MBA II MBA
18OTCMD014 18OTCMD023
Innovation and existing products are valueless to the society unless are brought
out of the factories. They are of value only when knowledge of the product is
dispersed to those who can use them or whom will consume it.
Strategy is a system or tactics used by the companies to entice customer to
purchase their company's products. It describes the direction organisation within
its chosen environment and guides the allocation of resources.
Promotion is the various efforts that a company renders to seek the sales growth
and to create awareness and eventually, enhance repeats by customers.
Promotional strategy is the marketing tools designed to persuade consumers to
buy or use the company's products by offering and incentive not provide by the
regular package, brand, or even the original of the product.
CONTENTS
Chapter Title
1 INTRODUCTION
2 Literature Review
3 Area of the Study
4 Data Analysis and Interpretation
5 Summary, Recommendation and Conclusion
CHAPTER - 1
INTRODUCTION
INTRODUCTION:
CONCEPT OF PROMOTIONAL SCHEMES
The term promotion derives from the Old French, promocion meaning to "move
forward", "push onward" or to "advance in rank or position" which in turn, comes from
the Latin, promotionem meaning "a moving forward". The word entered the English
language in the 14th century.
The use of the term promotion to refer to "advertising or publicity" is very modern and
is first recorded in 1925. It may be a contraction of a related term, sales
promotion, which is one element in the larger set of tools used in marketing
communications.
The terms, promotion and marketing communications can be used synonymously, but
in practice, the latter is more widely used.
In marketing, Promotion refers to any type of marketing communication used to inform
or persuade target audiences of the relative merits of a product, service, brand or issue.
The aim of promotion is to increase awareness, create interest, generate sales or to
create brand loyalty. It is one of the basic elements of the market mix, which includes
the 4Ps, i.e., product, price, place, and promotion.
Promotion is also one of the elements in the promotional mix or promotional plan. These
are personal selling, advertising, sales promotion, direct marketing publicity and may
also include event marketing, exhibitions and trade shows. A promotional plan specifies
how much attention to pay to each of the elements in the promotional mix, and what
proportion of the budget should be allocated to each element.
Promotion covers the methods of communication that a marketer uses to provide
information about its product. Information can be both verbal and visual.
Innovation and existing products are valueless to the society unless they are brought out
of the factories. They are of value only when knowledge of the product is dispersed to
those who can use them or whom will consume it. Marketers need to identify as many
characteristics of potential buyers as possible, i.e. what they like, whom and why they
buy, what they buy etc. A company can produce best product, package it wisely and
distribute it wisely and position such products to the consumers appeal. All these
marketing skills will be a waste, if nobody knows the significance of such efforts that
have being put in place. The most important things that matters is getting the products
to the notice of the potential customers.
Production is the most aspect which the society currently focuses on because it includes
all activities that create something of value. Based on this, marketing planners most
design the promotional strategy with the aim of achieving the organization objectives.
Therefore, needs stimulate a grater drive within customers for some goods and services
that will satisfy their needs with the huge number and varieties of wants. The markets
or customers need great deed of information in order to satisfy their needs. Therefore
Promotion strategies are concerned with the planning, implementation, and control of
persuasive communication with customers. These strategies may be designed around
advertising, personal selling, sales promotion, or any combination of these. The first
strategic issue involved here is how much money may be spent on the promotion of a
specific product/market. The distribution of the total promotional budget among
advertising, personal selling, and sales promotion is another strategic matter. The
formulation of strategies dealing with these two issues determines the role that each
type of promotion plays in a particular situation. Clear-cut objectives and a sharp focus
on target customers are necessary for an effective promotional program. In other words,
merely undertaking an advertising campaign or hiring a few salespeople to call on
customers may not suffice. Rather, an integrated communication plan consisting of
various promotion methods should be designed to ensure that customers in a
product/market cluster get the right message and maintain a long-term cordial
relationship with the company. Promotional perspectives must also be properly matched
with product, price, and distribution perspectives.
Promotional strategies are the means of attracting new and retaining existing customers.
Organizations chalk out various strategies from time to time to grab greater market share
which in turn leads to profit which is the whole sole aim of the companies. The study
was conducted on Wildcraft and is headquartered in Bangalore.
The present day organizations use a variety of strategies to attract the customers and
thereby retain their market position. Most of the companies use a blend of promoti onal
mix which can include advertisements, public relations, sales promotions, internet
marketing etc. For deciding the right promotional strategy, the correct medium must be
chosen so that the target market can be reached in the best possible way. Therefo re the
company must give importance while deciding upon the medium of promotion because
they can have a large impact over firm’s future.
Marketing is a crucial activity for a business because it has the capability to enhance as
well as ruin it. A well-designed and well-structured marketing campaign could explain
about the product or service of the company as well as the customer benefits from it in
the most suitable way. But selecting the most suitable promotional strategy is a difficult
and critical task. Mostly companies use a mix of strategies on the basis of their purpose,
price, and several other factors.
Promotional strategies play a crucial role in the sales of a company in today’s highly
competitive and dynamic business environment. Since sales can be considered as the
life-blood of every business and without sales no organization can survive, hence it is
highly essential for an organization to develop a suitable promotional strategy for it.
The main objective behind a sales promotion is to improve the sales of an organization
through predicting and altering the buying behavior of the target market. But this is a
challenging job since customers now have numerous alternatives for a product.
Promotional strategies are hence very much significant since it not only improve sales
or business but also helps the firm to attract new customers while retaining the existing
ones. An organization can use a variety of promotional strategies but before that the
management must understand the real nature of their business and then identify the most
suitable strategy. Hence a firm must not underestimate the role played by promotional
strategies in boosting its business.
INDUSTRY PROFILE
In India, the country’s material industry has an outstanding position. The most prompt
prologue to the region in India, the city’s total current yield estimation of 14%
contributing right around 30% of total charges, is the second greatest producer after
country work. The material business is one of giving the most basic needs. This i s to
keep up bolstered advancement, improved individual fulfilment. It has a unique position
as a free industry, from rough material to movement of finished things, there is a
considerable measure of included an incentive at each phase of handling. This is the
nation’s economy a noteworthy commitment. This is in agribusiness, industry,
associations and decentralized segments and in addition rustic and urban territories,
specifically the tremendous capability of ladies and defenseless gatherings, work
creation is important.
RESEARCH METHODOLOG Y
For the purposes of this study a literature study and empirical research will be used for
data collection. When following this method of data collecting, it is essential to
distinguish between primary and secondary data.
Primary data is original information collected for the first time. On the other hand
secondary data is information that has been collected previously and that has been put
through the statistical process. For the study purpose both primary and secondary data
will be used. The primary data will be generating from distribution of questionnaire.
While the secondary data will be the already collected information. These data used in
combination as per need of the study.
Primary Data
Primary data are information collected by a researcher specifically for a research
assignment. In other words, primary data are information that a company must gather
because no one has compiled and published the information in a forum accessible to the
public. Companies generally take the time and allocate the resources required to gather
primary data only when a question, issue or problem presents itself that is sufficiently
important or unique that it warrants the expenditure necessary to gather the primary
data. Primary data are original in nature and directly related to the issue or problem and
current data. Primary data are the data which the researcher collects through various
methods like interviews, surveys, questionnaires etc.
Secondary Data
Secondary data are the data collected by a party not related to the research study but
collected these data for some other purpose and at different time in the past. If the
researcher uses these data then these become secondary data for the current users. These
may be available in written, typed or in electronic forms. A variety of secondary
information sources is available to the researcher gathering data on an industry,
potential product applications and the market place. Secondary data is also used to gain
initial insight into the research problem. Secondary data is classified in terms of its
source - either internal or external. Internal, or in-house data, is secondary information
acquired within the organization where research is being carried out. External secondary
data is obtained from outside sources.
CHAPTER -2
LITERATURE REVIEW
LITERATURE REVIEW
This chapter begins with a relevant literature on promotional mix for an organisation
followed by the external factors influencing the choice of promotional strategy, and
thereafter the concepts regarding adaptation and standardization of promotion will be
discussed.
Promotion according to Brassington & Pettitt (2000) is the direct way in which an
organisation communicates the product or service to its target audience. Thomas (2002)
promotion strategies are concerned with the planning, implementation, and control of
persuasive communication with customers. These strategies may be designed around
advertising, personal selling, sales promotion, or any combination of these. Acc ording
to Armstrong G. (2002) firms use various elements to achieve their promotional
objectives. Promotion consists of two components; personal selling and non-personal
selling. Personal selling is a promotional presentation made on a person-to-person basis
with a potential buyer.
Non-personal selling consists of advertising, sales promotion, and public relations. The
promotional strategies are a combination of personal selling and non-personal selling.
Marketers attempt to develop a promotional mix that effectively and efficiently
communicates their message to target customers. Promotion is the method you use to
spread the word about your product or service to customers, stakeholders and the
broader public. Once you have identified your target market, you will have a good idea
of the best way to reach them, but most businesses use a mix of advertising, personal
selling, referrals, sales promotion and public relations to promote their products or
services. (Small Business Development Corporation June 2011).
Brassington & Pettitt (2000) has categorized the promotional tools into five main
elements;
Advertising
Personal Selling
Direct Marketing
Public Relations
Sales Promotion
Sales promotion can be considered as any strategy or activity intended to increase the
business or trade and thereby boost the sales (Shimp. 2003). Promotion is a form of
communication with the target customers. Rather it can be considered as a form of
persuasive communication aimed at changing the buying behavior of the customers. A
right promotional strategy will be helpful to the firm in making the customers
understand the fact that it has the right product or service for them. Thus the promotional
strategies have mainly three objectives:
Making the customer aware about the product or service
Persuading the customer to purchase the product
Remind the customer about the product and make them think in favor of it.
Researches done on this field suggest that billions of dollars are wasted per year for
ineffective promotional techniques (Ambler & Vakratsas, 1996). Hence it is crucial for
every company to formulate the most effective promotional strategy for it. As a first
step towards selecting the promotional strategy, the company must decide upon the
communication objectives (Zeithaml and Bitner, 2000). The objectives that need to be
communicated comprise of awareness, knowledge, liking, preference, conviction and
purchase. Promotion can be defined as “activities people use to communicate with
others about their product or service and to convince them to use it.” Whatever that is
communicated to the public must be regarding the business. The communication can be
done in a variety of ways including brochures, newspaper ads, television ads etc. As per
the description provided by Totten and Block (1994), “Sales promotion refers to many
kinds of selling incentives and techniques intended to produce immediate or short-term
sales effect”. There are mainly two types of promotional strategies: Push strategy and
Pull strategy. In a push strategy, the company takes the product directly to the customer
in order to increase their awareness of the product. This can involve aggressive personal
selling or trade advertising (Lamb et.al 2008). Other major push strategies are:
Making negotiations with the sellers over keeping the product
Having an efficient supply chain so that sellers get their goods whenever they need
Making the cover or packaging more attractive in order to induce purchase
Point of sale displays
If a company is following a pull strategy, it will come out with techniques that would
motivate or induce the customers to buy the product. Consumer advertising, cents -off
campaign and gift coupons etc are some of the common techniques used in this strategy.
Word of mouth marketing is another effective pull strategy. Customer relationship
management (CRM) is another technique that most companies now adopt in order to
attract as well as retain their customer base. Coupons are used usually in the trial period
of a product since customers easily get attracted towards it and hence help in initial
purchase (Robinson and Carmack, 1997; Cook, 2003). But many other theorists like
Gilbert and Jackaria (2002) have come up with contrasting statements saying that
coupons have the least impact over product trial. Many studies also views coupons as
an effective sales tool (Peter and Olson, 1996; Gardener and Trivedi, 1998; Darks, 2000;
Fill, 2002). Another factor which has an effect over product trial is price promotion
(Brandweek, 1994). As per the research conducted by Chandon et.al (2000), customers
who belong to high-promotion prone category are more likely to be influenced by sales
promotion. They are attracted by sales promotions for reasons further than price
savings.
The companies decide upon these promotional strategies based upon their business
nature, product or service, business image as well as the medium selected for reaching
the target customer group (Jeannet and Hennessey, 2005). Timing is one crucial factor
which determines the effectiveness of promotional strategies. The importance of these
strategies changes as the purchase process advances (Kurtz et.al 2009)
Interpretation:
From the above graph, it determines the gender of the respondents undertaken and there
were 11 males and 14 females consisting up of 44% and 56% respectively.
2. Age Group of Respondents.
Interpretation:
From the above graph, the age group of the respondents are shown and there were many
youngsters who are very much interested in buying the products of the Wildcraft.
3. Aware Of Promotional Schemes at Wildcraft.
Interpretation:
From the above Pie chart Diagram, it determines that the respondents whether they are
aware of the promotional schemes that are offered by the Wildcraft reaches to
them(customers)
4. How frequently respondents visiting to Wildcraft
Interpretation:
From the above Bar chart, it shows that how many times does the respondents visit the
Wildcraft for the shopping and the majority of the respondents are interested to go to
the Wildcraft as and when required for them and to some extent of the respondents are
visitng occasionally.
5. Wildcraft Products through Direct Mails
Interpretation:
From the above graph exhibits that there are more number of persons who don’t know
about the email marketing of a Wildcraft and only 6 respondents out of 25 responded
as they are known about the email promotional strategies of the company.
6. Aware of about Wildcraft Products through Newsletter
Interpretation:
From the above graph shows that the percentage of don’t known customers through
Newsletter is more than the customers who know about the promotion via Newsletter
is 68% and 32%.
7. Aware of Wildcraft Products through Webinar
Interpretation:
The above chart insists that there are 21 respondents are unaware about the webinars
method of promotional marketing strategies by Wildcraft and they had not come across
with that.
8. Understanding about Wildcraft Products through SMS/text messages
Interpretation:
From the above diagram we can say that the customers who are and can recognized and
will recognize the brand by 68% and the customers who are not aware about the
SMS/text message promotional marketing is 32%.
9. Wildcraft Promotional Ideas through Blogs
Wildcraft Products through Blogs No. of Respondents
Yes 16
No 9
Total 25
Interpretation:
The above chart shows the analysis of information and knowledge obtained
by customers about the products of Wildcraft through E-Blogs is 64% and
the persons who don’t have any knowledge about the Blogs are 36%.
10.Fair understanding about Wildcraft Products through Web pages
Fair Understanding about Wildcraft products through web pages No. of Respondents
Yes 18
No 7
Total 25
Interpretation:
From the above graph the responses from the customers is 100% in that regarding the
knowledge about web pages promotional strategies by Wildcraft products through web
pages, the result is that a 72% of the respondents know about the Wildcraft via web
pages and 28% are unaware about that.
11.Knowing about the promotional strategies of Wildcraft through
Banners
Interpretation:
From the chart that there is a low percentage of known customers in the responses that
only 44% are aware about the products and services offered by the Wildcraft and
remaining 56% of customers are unaware about the products and services offered by
Wildcraft.
12.Knowing about Wildcraft Products through Images in Website
Interpretation:
From the above graph we can say that there are above 85% of respondents are having
knowledge about Wildcraft via web images and below 15% respondents have no
knowledge about Wildcraft via web images.
13. Wildcraft Promotional Schemes through Videos
Wildcraft products through Videos No. of Respondents
Yes 15
No 10
Total 25
Interpretation:
From the above bar diagram, it shows that finding out the knowledge of Wildcraft
products of the customers via Video Promotion, in response to that the number of
customers are aware about the video ADS are 60% and the persons who were unaware
about the videos are known 40%.
14. Wildcraft Promotional Schemes through ADS
Interpretation:
From the above pie chart, shows that there are persons who are conscious about the ads
are 84% and the persons unconscious about the ads are known as 16% about the ADS
regarding the products and servicesoffered by Wildcraft.
15. Promotional activities of Wildcraft Products through Social Media
Wildcraft Products through Social Media No. of Respondents
Yes 20
No 5
Total 25
Interpretation:
From the above graph determining the grasp about the Wildcraft products trhough social
media in the minds of the customers, in response the customers responded that.
The visibility of Wildcraft Products in social media has been increased as a result in the
customer’s mind that there are 80% are known and 20% are unknown about the products
of Wildcraft via social media.
16. Video ADS are better than the Web pages
Video ADS are better than Webpage No. of Respondents
STRONGLY AGREE 5
AGREE 12
NEUTRAL 7
DISAGREE 1
STRONGLY DISAGREE 0
TOTAL 25
Interpretation:
From the above pie chart, the analyse of finding the effectiveness between comparing
the videos Ads vs web pages to this question 20% strongly agree, majority of them just
agree i.e., 48%
28% of the respondents answers are neutral and only 4% of the respondents disagree
with this question.
17.Promotional offers at Wildcraft feel like visiting again
Promotional schemes at Wildcraft are attractive and include to purchase again No. of Respondents
STRONGLY AGREE 4
AGREE 8
NEUTRAL 9
DISAGREE 3
STRONGLY DISAGREE 1
TOTAL 25
Interpretation:
From the above bar chart, which represents the consumer behaviour towards visiting
the Wildcraft for the purchasing purpose under their promotional schemes
Here 16% of the respondents strongly agree, 32% of the respondents just agree not to
the extent of strongly agreeing, 36% of the respondents results are neutral, 12% of the
respondents disagree and 4% of the respondents strongly disagree with it.
18. Do promotional schemes makes you influence your friends and
relatives
Interpretation:
From the above pie chart, it describes about the promotional schemes of Wildcraft
whether it influences other friend or relatives.
Under this 68% of them responded as Yes and 32% of them reply as No
Chapter - 5
Summary, Recommendations and Conclusion
Summary
Promotion is one of the seven variables of marketing mix with which the marketing manager
communicates the information between sellers and buyers and to influence the attitude,
behaviour and other variables such as price, place, product, physical layout, provision of
customer service and process.
Promotion is a major factor in any marketing mix that enables producer and immed ia te
customer to choose from among any product developed to satisfy the needs of target market.
The overriding promotional is to affect buying behaviour but a basic promotional objective
includes information persuading and reminding of various promotional method can be use to
reach these objective. These include advertising, sale promotion, personal selling, public ity
and public relation. Stanton Williams J (2006) points out that promotions is very important
when a new product is to be introduce with a suitable promotional strategy to arouse of the
product. The product price, quantity, quality are use for motivating the buyers to buy.
Some of the respondents agree that promotion influence their buying behaviour, which makes
them buy more of the product.
Recommendation
The activities of Wildcraft in terms of production is okay by both the distributor and the
consumer nevertheless, recommendation of these studies to the management of Wildcraft are
as follows:
The company’s promotional strategy is far enough, but more effort should be put on them to
reach different target market.
The consumers should be persuaded to patronise the product. As when people are now aware
of various products , Wildcraft could also come up with such new product and attractive price
as a part of it ptomotional strategies.
The company should also improve its research work on the quality of its product so as to be
able to face other competing firms.
In conclusion, the company should maintain a good relationship as well as good publicity; also
the company must have its distinctive features on its products to sky away piracy.
Conclusion
This study has carefully studies the effect of promotional strategy on the sales of organisatio n
and its effect on the buying behaviours of consumers. It has been found that promotion have
an effect on the buying behaviour of consumer, they are been makes to buy more of the product
willingly because of the fun, entertainment and price giving out to them during the promotions.
A detailed study on Wildcraft Products has been conducted through a survey among the
customers who are visiting Wildcraft in Bangalore District. It was an attempt to study the
various promotional strategies adopted by the Wildcraft. The study helps to make some
recommendations to improve the sale of Wildcraft Products through various promotiona l
strategies and to improve the relationship between the customers and the company.
In respect of the study, we conclude that there is a considerable amount of market share for the
Wildcraft Products, customers are impressed with the Promotional Schemes offered by the
Wildcraft. We hope that this study will help the company to know their customers about the
Wildcraft products and thereby helps to adopt suitable strategies to satisfy both the dealers and
the customers.