Professional Documents
Culture Documents
STUDY OF CONSUMER
ORIENTED
SALES PROMOTION IN FMCG
SECTOR
Tushar N. Chole
SUBMl'M'ED BY
TUSHAR
N.CHOLE
(MARKETING)
MR 13406
MGM'SINS1'1TUTE OF
MANAGEMENT AURANOABAO-
431001
20 12-20 14
Ihereby declare 1ha1 1he project work allowed to in " St udy of consumer oriented
sales pron1otion in FMCG sector '" of P:1lanjali 1\yu rvcda Kendra Pvt L.td .is a
real \vork done by inc and the content \\'ith this has not b(..".Cn subn1it1cd for the ;t\Vtlrd
of 01hcr degree or diJ)lo1na ill 1he University.
ll is 1ny pleasure 10 present this rcpon. \Vorking on this project \Vas an good experience
thut'viii hove great i1npac1 on n1y career. It \vas really usefu l period of 45 days 'vorking 'vith
1hc Pa1anjn li Ayur,•eda Kendra Pvt Ltd.
I like to express 1ny sincere thanks to Dr. rardee1> Kun1ar Director , i\1r.Ashi.sh Gadekar
& l\1r.Anil Pah e of thc1n suppon. I like to thanks my project guide Dr.Goutan1 Saha for
1
)•le has 8h\•ays been a SOUl'CC of inspiration arid guidnncc. I nlso thonk all lhc responden ts
\\1hO have given their \1aluablc tirnc, vic,vs and valid infonnaLi on for this project.
I would l ike 10!hanks Mr. Milind S. Shukl:o (Head of sou1h Province of Paumjali Ayurvcda
Kendra Pvt Ltd.), for providing me 1his chance 10 \VOrk on project in this dcpanmcn1.
\Vi1h 1his I \vish lo thnnks 1he cn1ire cn1ployce,s of Pa1anjnli Ayurvcda Kendra Pvt ltd. &
special thanks to 1r. Satish Sol unk<' (Marketing Executive), Mr. $. Shinde (1arkcting
Execu tive), 1r.Tckttn•adc (Marke1ing Execut ive) 'vho helped inc to complete 1ny 1mining
nt Patanjali Ayurveda Kendra Pvt Ltd. Aurangabad, Maharasturil.
PREFACE
In lhis age of globalizalion hyper co1npctition has bccontc a regu lar feature. Todaythc
111arkc1sare no less 1hen battlegrounds and one has 10 strive very hard for survivnl
and grO\Vth.
Due to very rupid induslrinli.zation nil over the \Vorld the dcn1and for the n1nnagcrin.l
personnel and 1hc ad1ninistm1ive personnel has increased. The pcrfcc 1 study of Mun11gc1nc111
involves bo1h the theoretical as \\•ell as practical aspects. To survive in this highly co1npctit
ivc n1arkct "Pmc1ic1.1I Kno,vlc.-dgc" is as relcvanl as the·n1corc1ical.
In 1his projcc1 1norc cntphasizc given 10 the v;1rious IOOI S or sa.lcs pro1no1ion rand itS
intp<lCI On con.sun1ers buying decisions.Ac1tu11ly in recent trend 10 sonic extc111 this
technique also bccon1c vic1in1 of cluucr.even though ii can l>c clirnin;H. cd by gcncrn1ing
innovo1ivc nnd 1norc onmctivc tools to lure the cus1on1ers.
No\v a d3y 1nost or the F'MCO co111J>.anics considering sales pro11101ion as an i1nponan1
pan of their 1nnrkc1ing s1ra1cgy. From the una1ysis of survey it bccon1cs clcnr 1h:1t
consunu.:rs do response 10 1he sales 1>ron101on can11>r1ign, bu1 there are
cus1omen;'vho strongly prefer 10 stick 10 brnnd nan1c.
To start \vith \Ve \v iii give bl'iefinfonna1ion rega.rding FMCG sector 1hc11 1noving 10 the
1nain topic \ve ''ill exJ>lain \vhnt is topic is all about Prontotion is one of the 1>illnrs of
1narketing ntix and sa1nc'vay sales prornotion is olso one of 1he clcrnen1s of
pro1no1ion.
\Vith rcspcc1 to consu1ncr oricn1ed sales prornotion there arc certain 1heorics nnmncd as
opcront conditioning and projective theory. Based on seconda ry source eenain theoretical
aspects arc also included as a pan of study.
·rhen aflcr conccntrntion is given lo the prinu1ry research. It includ(.-.s the nnu lysis and
results of survey \tJhich \vas fOcuscs on consuntcr's behavior lO\vards sales pron101ion
ea1npaign. The survey \Ya.s conducted \V ith the help of structured questionnaire.
At last conclusion of report, findings and suggestions \Vas given based on study of secondary
source as \VCll as prirnary research.
TI1e i1nportnnce of consun1er sales pro1notion in lhe n1arketing ntix of the ntst ntoving
consu1ner goods (FMCG) category throughout the \vor d has increased.Co1npanies
spend considerable tint c in pl11nning such activities. l·lo\vcvcr, in order to enhance the
ellCctivcncss of 1hese nctivitics. m11nuft1cturcrs should understand consumer ;lnd retailer
intcrprcttnions of their pro1no1ional ac1ivi1ics. 'llH! st udy here pcl'tnins 10 consun1cr·s
pcrccpiions regarding sales pro1notion. Sontc past researches huvc suggcslcd that
prontotion itself has an cftect on the perceived value of 1he brand . l11is is because
pro1no1ions provide u 1ili1al'ian bcnefi1s such as n1onct11ry savings. added \1aluc.
increased quality and convenience as \Yell as hcdonic bcncfi1.s such as
cn1cnain111c111.explor.11ion ,.nd self-expression.
Brondly speaking 1nos'I of the con1p11nics using Mu rkc1ing 1ix 'vhich includes...
o Price
o Product
o Pron101ion
These are the four basic pillar of 1narke1ing n1ix. Most of the n1arkctingstrotegics arc
built on the basis of these cri1cria.
o Advcnising
o Direct MarkcLing
o Public Relations
o Soles
Prornotion
i·rad itionnlly, sales Pro1no1ions have been used by 1nntke1er to increase sales in 1he
shon tcm1. Ho,vcvcr. in 1hc las1 re,v decades this 001nm unica1ion tool hos evolved und
nov.. is considered ffo1n a stra1cgic point or vic\v.For this reason, it is necessary to rea l ize
nc v studies in 1his nrca and study ho\v consurncrs evaluate sales pt01no1ions.
Snlcs pron101ions have gro,vn in bot h i1nponance and frcquenc.y over 1hc 1>ns1 re\v
decades. Although an accurate esti1natc for totnl sales promo1·ions expcndilurcs docs nol
exist \\'C can be sure lluu lhc trend is up.
Snlcs prornot ion serves three essential roles: II infonns. persuades ond rcrninds prospec
1ivc cus1on1ers about a con1pany and its products. Even the most useful product or bran d
\Vi ii be a failure if no one kno,vs 1hat ii is :avuilublc. As \VC kno,v,c.::hanncls of dis1ribu1io
n Hlkc more ti1nc in creating a\varencss because a 1>roduc1 has 10 pass through rnany hands
bet\vccn a produce r and con.sun1crs.
Front 1hese cle1ncn1.s Sales Pron101ion is 1he clcn1cn1 \vhich is in the focus of this project.
Fu rther Sales Promotion is quite broad tcnn it includes ..•
Consu n1cr Oriented Sales Promotion is the n1ain topic of this project Herc c1nphnsizc is
given to n101iva tc consu1ner to increase snlc:s. Co11s111ner Oriented Sales Pro1no1io11
includes San1pling. Couponing, Prc1niu1ns. Coolest. Refunds.Reba tes, Bonus Pack's, Pricc off,
Event nuarkct ing etc.
Ocfin lrion:
for the purpose of this study, follo\ving dcfinilions of sales pron1otion \Vere kept in
1nind.Kotler defines sales pron1otion as:"Sales pron101ion consists of n diverse collection of
inceruive tools, mos'lly sho11-1cnn designed to stimuh1tc qu icker and/or greater purchase of
panicu lar prod ucts/services by consu1ners or the trade.·
Roger Strnng has given a 1norc sin1plis1ic dclinilion i.e. '·sales pron1otions arc
short •lcrn1 incc1uives 10 encourage purchase or S3les of o 1,roduc1 or service."
J·Jcncc,any fonns of incentives (price cut or value added nnt urc) offered for shon period either to
trade- or conso1ncrs are considered as sales pto1no 1ion acti vities.
1arketer ts uses consun1er oriented sales pron1otion tools for the follo"·ing reusons:
TI1ere are so ninny tools or technique :i.vailable to the n1arkctcrs for achieving objective of
sales pro1no1ion. l11csc 1ools should bt- used co11sidcring all other factol'S alTccting
such as cost.1in1e. competitors. ovuilnbility of goods etc. These tools arc us under•..
I. Coupons
2. Price-Off
3. Freebies
4. Scratch Cards
5. Lucky Dm,vs
6. Bundling Offer
7. Exira Quantity
1. Coupons:
Coupon is the oldest and rnost \vidcly used \vuy or sales pro1notion. Coupons hove been
used since 1895. It is n1ostly used by packaged goods. h is \\1onlnvhile to use coupon as a
pro1no1ion 1001 because dntn sho,vs thnt nunkct for packaged goods increased fron1 16 bil
lion in 1968 10 310 billion in 1994. To boos1 up the sales not only 1nnnufuc turcr but
retailers personally can also used . A coupon le.ads to price rcduc1ions so a-; 10 encourage
price sensi1ive custon1crs. Non users cnn try a product \Vh ich rnay leads to regular sales.
2. Price-off:
A price-off is sinlJ>ly a reduction in the price of 1hc produc1 10 increase sales and is very
oflen used "'hen in1rodu c1ion a ne\v pr<>duc1. A reduc1ion in price ahvays increuses salc:s
bu1 the use of this technique should be carefully considered in the current 1narke1situation.
Pricc-ofr is the 1nosl preferred sales pro1notion technique because consu1ncrs response
very positively to this schenle. No 1 only that bu1 iialso c-ause large increase in sales volunle.
Price.off rt'(luc1ions are typically ollC:n:.'CI 1igh1 on 1hc package through specially
n1arkc:d price pocks. E.g. Krack Jack ofrers 30% l,rice...aff.
3. Freebies
S. Bundling Offers
Product bundling is a nuirkcting strategy that involves offering several products for sale as
one contbincd prod uct. ·n1is s-1r:ucgy is very conunon in 1he son,varc business (for
c:<a1nple: bundle a 'vord processor. a spreadsheet. ond a database into a sing.le omce sui1c).
in the cable television indll'itry (for ex:unple. basic cable in 1he United States generally
oftCrs 1nnny channels n1 one price). nod in 1hc fast foodindustryin \Vhich muhiple heins
are con1bined in10 a co1nplc1e meal. A bundle of products is sosnctimes referred 10 as ;a
package dt'31 or n con11>i lation or nn
anthology.
Mainly four fhctors should be 1akcn iruo accoun1 \Vhilc dc1cm1ining the sales pro1no1ion progrnm.
I. Target l\'lark<'I:
\Vhilc doing sales pn:>rnotion. 111arkc1cr n1us1 kno\v \vho 1heir 1argc1 1narkc1 is; ot hcl'\
visc 1here is no use of all effort because it leads 10 no,vherc. A t;lrgct market can be in any of
the stages of buying hierarchy i.e. a\vai·eness, kno\vledge. liking. 1,rcfercnccs, conviction and
purchase. Each s1r1gc defines a possible go:il of pro1no1ion.
·n1crc are various product attributes \vhich innucnce snlcs 1)ro11101ional strategy. \Vhcn
the unit price is l ov1 the n1anufac1urcr as \VCll as the custo1ncr h<is lo'\' risk bul he cnn
get 1hc benefit of 1nass 111arkcting. Thcrct'Orc, n1ass n1arkcting requires n111. ss sales
pro1notion schc1nes. Sales pro1notion sche1ne differ for products l ike its durnbili1y,
perishable goods etc.
Sales pro111otion strJtcgics are influenced by the life cycle of a product \Vhcn:1 llC\\'
product introduced, prospective buyers 1nus1 be infor1ncd about ils C.'.(istence and its
benefits and midd lc1ncn 1nus1be convinced to s1ock i1. La1cr. if a product bccorncs
su cccssfU I. co1npctit ion intensifies and n1orc c111phasis is placed on sales pron1otion to
increase its sales.
·n1c funds available for promotion arc the ultin1a1c dctcm1inanl of the promotional
progran1n1c. ;\ busi11ess \Vit h an1plc funds can 111.ikc 1nore ell""ec1ive u se of sales
pro1no1ion progm1n1ne than a finn '"ith lin1ited financiaJ resources. The bu dgcl for sulcs
pro11101ion ('.Un be pr<:pan-d by 1hc follo\ving n1ethods...
o Budsc1ing by objcc1ive.
Sales arc 1he lifeblood of a business.\\tithou1 sales 1hcrc \VOuld be no business in the first
pince; therefore it is very i1nponnnt that if a business \Vant-..; to succeed. iishould have a
sales pro1notion str.ucgy in 1nind. The pri1nary objective of a sales pron101ion is to intprovc
a co1npany·s sales by pred icting und 1nodifying your target cus1on1crs purchasing behavior
nnd pancms.
Sales pro1no1ion is very hnpo11an1 <1..i iinot only helps 10 boos1 salco..s but ii also helps a
bu.sines. 10 dn:t\\' nc'" custo1ncrs ''hilc at the san1c tirnc retain ing older onc-.s. There arc a
variety of sales pro1no1ional strategies that o business can use to increosc their sales, ho\vever
it is irnponant that
\ve firs1 understand \vhu1 (1 sales pr<>n1otion s1nl1cgy oc1utllly is and \vhy i1 is so i1np0r1a111.
A sales promotion strategy is a11 ac1ivi1y 1hutis designed 10 help boost 1hc sales or a
product or service. ·n1is ctLn be done through an advcnising can1pnign. public relation
activities. o free santpling cantpaign, a free gin cant >a ig_n, a trading stantps ca1npaign.
through de1nonstrntions and exhibitions, 1hrough prize giving co1npe1i1ions, 1hrough
1c1nporory price cu1s. and 1hrough door t<rdoor sales.telcn1nrketing. personal s.ales
letters,and cn1ails.
l11e importance of u sales prornotion strutcgy cannot be undcrest inuucd. 'fhis is bccuuse u sales
pron101ion strategy is in1ponnn1 to a business boosting its sales.
\Vhcn developing a sales pron101ion slmtcgy for your business , it is in1ponunt that you kc.-.
cp the follov,iing points in ntind.
o A push strutci;y
o A pull strategy or
0 J\con1binatio11 or the (\\10
A Push Strategy:
A 'push ' sales pro1no1ion strategy involves 'pushing' distributors and retailers to sell your
products nnd services to the consu1ner by offering various kinds of pro11101 ons and
personal selling clTons. \Vlun hnppcns here is 111111 11 co1npany prontOIC$ their
product/services 10 a reseller
\vho in tun1 pron101cs it to another reseller or to the consu1ncr. TI1c basic objective of this
strategy is 10 persuade retailers,'vholes:ilcrs nnd dis1ribu1ors 10 carry your bmnd, give it shel
f space. pron101e it by odvertising, and uhima1cly 'push' it fonvard 10 the
consumer.Typical push sales promotion strategies include; buy.back guarantees, free trials,
contesls, discounts, and specialty ndvenisi11gi1c111s.
A Pull Strategy:
A ·pull' sales prornotion strategy focuses n1ore on the consun1er instead of the reseller or
dis1ribu1or. This stnnegy involves gcuing 1he consu1ncr 10 'pull' or purchase the
produ ct/services directly from the co1npany itself. This strtltcgy targets its 1nurkcting
cllbrts directly on the consu1ners \\•ith the hope that it \\•ill sti1nula1e interest a11d den1and
for the product.·rhis 1>u ll strotcgyis often used \vhcn distributors urc rcluc.::tan1 to carry or
distribute u producl. Typical pull sales pron1otion strategies include; sa1nples, coupons, cash
refunds or rebates, loyally programs and rc\vards. co1ucs1s.s'vceps1akcs.gan1cs. nnd point-of-
purchase dis1>lays.
Let's have look at the in1pac1 of pron1otions on purchase beha vior during the pron1otiona l period
i.e. the \\•eek or the 1non1h \\'hen 1he prornotio n 'vns being run. The rnajority of the
c1npirical studies have focused on the impact or promoti ons in 1hc short tern\, 111e key
lindings across the studic-s are discussed belo\v.
0 MQM-IOMlf!!BNMA Ill SEM 2013- ln-Plan1 Pr.Qjce1Pn -
Tentpor::i ry price reduc1ions (price off) subslanti::illy increase sales:
·n1cre is a1nple evidence lO shO\\' that pro1no1ions lead to dra111atic incre.ases in sale$ of
prorno1cd brond in the shon 1cnn. Studies have consis1cn1ly rcponcd high sales cnec1s
and high price elasticity of brands \vhich are on pro1notion . The ccono1nic rntion:ilc fbr
the promotional response is clear -1en1porary price cu1s increase 1he value of the product
10 1he consu111cr and it leads to in1mcd iatc action. Sales boost can be quanti fied on the
basis of bn1nd S\\'itching. primary dc1nand expansion and consun1er stock1,iling during a
pron101ion.
TI1c sales ·bum1f during 1he pro1no1iona l period in10 sates due to brand s'vitch ing.
purchase 1ime acceleration ond s1ockpiling. Studies on br.:1nd 5,vi1ching have sho,vn that
brond s'vi1ching cffec1s
\Vithi n n category arc asyn1111ctric such tha l pron101ions on higher quality brands in1pncts \\•cakcr
bmnds disproponiona1ely. During a pron101ion, higher quality brnnds induce a large nuntber
of cons-unu. rs 10 s'vi1ch 10 1hcm as compared 10 fo,vcr <1unlily brands. One cxplanrnion
odvonccd ror this finding by researchers is that large share brJnds have higher brand
equity and attract S\vitehers ntorc than lo\v share bronds.
\Vhile it \\ras 1rnditionnlly assu111ed that consun1ption rates rcntain fixed during and af\e:r
a pro1no1ion, but fro1n 1his project I con1e 10 knO\\' 1hn1 pro1no1ions also have a pri1nary
dc1nand expansion effect. \Vhcn a pri1nary dc1nond expansion occurs, promot ion induced
increase in 1)urcha.sc quan1ilies does not signific.antly extend lhe 1in1e till the next
1>urchase in the category occurs. 1hus indicnt ing 1ho1 there has been an increase in
consu1np1ion pro11101ions induced co11sun1crs to buy more and consume faster. It is
found that pron101ion induced inventory tcn1pornrily increased consurnp1io11 rates \Vithin
1he category e.g. in categories such as bacon.
sailed snocks. son drinks and yogun exhibit<-.d prininry dcrnnnd expansions as a result or
pro1notion \Vhilc ba1hroo1n lissue, coffee, dc1crgen1 and paper t0\\1els exhibited stockpil
Strategies are builds 10 rca1, the benefi ts for longer period of 1iinc; s:une is 1n1c in sales
promot ion s1r.:11cgics. Lei us sec irnpact of prornotion s efTon nnd s1udy 1hc i1npac 1 over
n longer tim e period e.g. 4---0 n1on1hs or even a fe\v years aflcr a sales pro11101ion
can1paign.
TI1e rcsu h sho,vcd thu1 consurner pro1notions for leading brands of established packaged
products had no nfler..cffects on the brand 's sales or re1>ent buying loyally. The cxrrn sale.
of a brond 'vhile pro11101cd ca1nc vinually all fro1n lhc brand 's ex isting long-tcnn
cus10111cr base for
\Vhich the experience of buying the pro1no1cd brand \vas noth ing nc\v.
It is found thnt although the short tcnn clTccts of pro1no1ions arc s-1rong: 1hcse pro1no1ions
nu-ely cxhibi1 long 1cm1effects. ll is observed that each sales con1ponent generally lacked a
pennanent effect and 1hc eOCc1 of pro1no1io11 \\'tl.S short Jived and increase in
pro11101ions nITcctcd consumers· stockpiling decisions in the long n1n. They found that 1hc
co1nbincd shore and long- 1cm1 elasticity of pro1notions \Vas zero. TI1c stockpiling induced
by a promot ion \Va essentially ofTsct by reduced dernand in the long 1em1. 111us
increi•Sed sales \\'Crc 111ore n rcsuh of sales borro\vcd fro1n the future than increased
consun1ption
INDUSTRY PROFILE
History
The lndiun cconon1y ischuog.ing in profound \vays by the 011\vard rnarch of its- ..consu1ncrs'',
Consun1cr gro\vth hus.of course.uhvays been a central engine of ccono1nic gro\\•th. but \
Yhnt is significnnc nbou1 the past decode is the accelerationin the pace of change. \Vhich
in one \Vay reflectsgreatly on the gro\vth,character and role of FMCG co1npan ics.
l·laving stated this. even the 1nost prestigious FM-CG fim1s are ah,•ays under pressure \\
•hen it co1ncs 10 retaining p0si1ion and gro\ving in the ever cornpctitive scenario. 111is is a
big chnlle-ngc-, and it is rapidly bcco1ning a str.ttcgic impcnuivc.
In order 10 recognize the contribution of the FMCG sector to the socio econon1ic gtO\Vlh
or India. to analy.r:c opport uniti es und ch3Jlcngcs over 1hc coming years. and 10
develop rccont1ne1tda1ions to i1s stake holders (inclu ding FMCG cont1>anies.
retailers and the
Government), FICCrs FMCG Comm ittee ond Technopok join cd hands 10 produce this fir.a of its
kind research rc.pon on 1he FICG sec1or.
Titis research rcpon d'vclls in10 the currcn1 s1a1c and future outlook of FMCG industry.
along 'vi1h deliberating on issues.challenges and opportunilies fucing the FMCG industry.
T11c report suggests prac1ical s1ra1cgics nnd rcco1n1ncndat ions for pol icy nnlkers to" rds
achievingcompetilive advantage in an increasing co1npctilive scenario
· c.r.
·
-
The FMCG market has three major segments
--
-
- ..'*,...,.........
Ol.iCMlt....cant . ,,.car.
Household Cnre
-·-
The de1crgc-n1s seg1ncn1 is g:rO\\•ing 01 an annunlgro vth rote of I0 10 11 per ccnl
during 1hc past five years.Titc local and unorgnnizcd players account for a 1najor share of
the 101al volun1cof the dc1crgcn1 111orkc1. l"hc prcfCrcnec is g_ivcn 10 dc1crgcn1s in
urban arcu co1nparc<I 10 bors. Household care scg1ncn1 is featured by intense co1npc1i1ion
and high level of penetration. \Vith rJpid urbanizu1ion. c1ncrgcncc of sn1nll ck size and
sachets.the demand for the household et1rc 1:>roducts is boorning. In \vash ing po'vder
seg1ncnt l·IUL isthe leader'vith -38 per cent or nlarkc1 share.Other n1ajor players nrc
Ninna, Henkel and Proctor & Gamble.
Personal Care
Persona l care seg1nen1 includes personnl \\'3Sh prod u cLS. hair care produc1s1 oral care
produc1s. cos1nctics etc. The Indian skin c-..arc and cosn1ctics n1arkc1 is valued al S274
n1illion and is do1ni na1cd by llUL. Colga1e Pahnol ive. Gillcne India and Godrcj. TI1e
coconu1 oil 1natkc1 accounts for 72 per ccn1 share in the hair oil n1atkct. l11e hair co.re
n1arket can be scgn1cn1ed into hnir oils.shan1poos. hair colornn1s & condi1ioners. and hair
gels.In 1hc brnndcd coconu1 hair oil n1arke1, Marico (\vith Parachute) and D:ibur are the
lending players. Sachet n1akes up to 40 per ccn1 of the total shnn1poo sale. Again the
1na.rket is domina1ed by f-IU L \\1i1h arou nd -47 per ccn1 n1atket share; P&G occupies
second position \Vith n1arkc1 shatc of around -23 per cent. Personal
\vush can be funhcr segregated into three scgincnts nann:ly Prcm iun1. Econorny and Popular.
0M M- OMlf!! Ill SEM 20t - In-Plant Pr.Qjce1Pn
Herc nlso, J.IUL is Lhc leader \Yi Lh n1arkct shnrc of -53 per cent; Godrcj occu 1>ics second position
\\'ilh 1narkc1 share of -10 per cen1. $\\•elling disposable inco111es of 1hc Indian
consun1crs. gro\\•lh in rural dc1nand and upgr::iding to the prcn1iu1n produ cts nrc the key
driYcrs for future demand gtO\vth in rnajor FMCG categories.
TI1eskin carcmarketis ataprin1arystagcinlndia. \Viththcchangcin lifestylcs incrcascin
1
disposable inco1nes. greater produc1choicc;1ndavnilabi lity. 1>«>plearc
beco111ing111orc.alcnnbou1personal groon1ing. Thcmajor players inthisscgmcntarcH
industan Unilcvenvitha n1arketshareof
-54pcrcen1.follo' 'edbyCovi nKarc,vi1ha1norkct shore ot:...12pcrccn1 andGodrej''ith
a1narkc1sharcof -3perccnt.
·rhcor.ilcarc n1arkctcunbescgn1cntcdintotoothp11stc· 60pcrcenttoothpo,,1dcr·23pcr
ccn11001hbrushcs- 17 pcrccn1.Thisscg1ncntis domina1cdbyColga1c-Pnlrnolivc\vhh
1n11rkctshnrc ot"-49pcrcen t,\vhilel·I U Loccu pies
sccondp0si1io n,vi1h111arke1shan-.of-30pcrccnt.lntoo1hp0'"'dcrs1nurkc1.Colga1cnndD:abunlrethc111ajo
r pl•yers.
Foodand8c\•er:1ges
111isse.g1ncntcon1priscs of
thcfoodprocessingindustry,hc.ahh
bcvcn1gcindustry.brcadandbiscuits,chooolu1cs& confectionery.
Minen1l\Va1crandicecteu1ns.TI1c1hreelargcs1consu1ncdca1cgorics ofpt1ekagedr0-
0dsarcpackcd tc.a .biscuitsandsolldrinks.lnd ianho1bcYcragc marke1isatcadon1inan1
market.Thc1najorsharc otlca market is
don1ina1cdbyunorganizedplaycrs .Lc.adingbrandedu.-.-aplayersarcH ULandTutaTca.Mja
orplaye.rsinf ood s<::gn1Cnl ;ire J.IUL.ITC,Godrcj,Ncst lcandAnn1I.
... Out
• The Indian FMCG sector is the rounh largest scc1or the ccono1ny \Vith a
to1al markc1 size ofRs. 167.IOOcrs.
• The market is estilnated 10 gro\v 10 USS 100 billion by 2025, according to n1arket
research fim1Nielsen.
• In the las1 decade 1he FMCG sector has gro\vn a1 on overage of 1 1% a year; in the lost
rive years. nnnu u l gro,vth nccclcm1cd to 17°/o.
• FMCGs are slo,vly and gradually posit ioning and deeply pene1m1ing in the fast gro\
ving nLra l nu1rkc1.The Rund n1indsc1 is open 10 eonsu1np1ion of nc,vcr, more
contCnlporary food ca1egories nnd as a resu lt. drive consistent gro\Vth. f MCG
industry to he Rs.4000 6000 billion industry by 2020.
• Indian rural 111arkc1 currently \Yonh USS 9 bn is expected to bcco111c a USS 100 bn
opponuni1y by 2025.
• By 2025. total consu1nption is likely to quadruple 1noking India the 51h
largest consun1cr 111arkc1.
• Organiied rc1ail is ex1>ec1ed 10 grow by 14-18% by 2015 ihercby boos1ing l'MCG
• Rurnl Lndi::i uccounts for more thun 700 tillion consu1ners or 700/o of the
lndiun population and accounts for 40%of thc total FMCG 111arke1.
• The Rural 1narkc1 is a large 1narkct spa ce'vi1h very IO\Y org<inizcd player
penctn11ion. Across the globe. the Indian rural nu1rkc1 is 1>robably the single
large•a ..unit'' of opportunity
• Also \\1ith changing lifCstyle and increasing consu1ner de1nnnd. the Indian FMCG
n1nrket is cxpc:cted 10 cross SSO billion by 2026 in tO\vns \vith populntion of up 10 10
lukh
• 'fhe sector has a 1re1ncndous OJ>ponun ity for gro\vth in India. 'vith the gro,ving
populat ion. the rising inco1ncs. cducntion and urbanization. the ndvcn1 or n1odcm
rc1ail. rind n consun11>tion driven ocicty
• According to N ielsen. FMCG gro,vth ''3S 10.7°/o in the ruml market 11nd 10.8% in
the urban n1arkct during the quancr ended Oece1nbcr 201 1; for the qunncr ended
March 2012. 'vhilc gro,vth in the urban m;,rkc1 in1provcd to 16.5%.ii rose even
higher. to 17.2°/o, in 1he rura l nlnrkct.
fM(C tndy)lryRur;pl(jpR)ho)
...,,
cr1:
Growth Drivers
JIM of rural
consumers
-
..
India FMCG sectors' signitic..ant charnctcris1ics can be l isted as strong MNC prt".SCncc,
,.,ell established distribution nchvork. intense co1npetition behveen the orga11iz:ed a11d
unorg:inizcd players and lo'v opcra1ional cost Easy avail11bility of imponant ro'v materials,
cheaper labor costs and presence across the entire value chain gives India a co1npelitive
advan loge.
Produ cts 'vhich have o S\Vift turnover and relotively IO\Y cos1 are k1lo,vn ns Fast
loving Consu 1ncr Goods (FMCG). fMCG i1en1s ure 1hosc 'vhich generally gel replaced \
vi1hi n a year. Examples of FMCG co1nn1only include a \vidc rJnge of repea tedly
purchased consun1cr products such ns 1oile1rie.s. soap, cos1nc1ics. ornl cu'C
products.shaving produc1s and de1crgcnts, as "'ell os other non.odurublcs such ns
gJ oss,vorc, bulbs. batteries. paper produc1s, and pl:,stic goods. FMCG n1ay also include
phannaceuticals. consu1ner electronics, packaged food product5
CIC.
Pcne1ration level and per capita consu1np1ion in n1any product categories is very IO\V
co1npan-.d to 'vorld nvcrngc standards represent ing lhc unexploited 1narkcL po1cntinl.
Mushroon1ing Indian popu lation. particu larly the n1iddle clnss and the rural sewnents.
present 1he huge unt apped opportuni1y 10 FMCG players. Gro,v1h is nlso likely 10 co1ne
fro1n consu111cr 'upgrading' in the n1aturcd product categories like processed and packa ged
food. n1ou1h'"ash etc.
Our coun1ry has a varied agro-clin1a1ic condi1ion \vhich cnnblC$ to offer ex1c.nded m'v
materia l base sui1ablc for many FMCG sub SC'.Clions like food processing industries etc.
India is lhc one of the 1najor producer of livestock, 1nilk. su garcane. coconut , spices and
cashe\v and is the second largest producer of rice. \Vhcat and fn.1i1s & vcgc1ables.
Sirnilarly, India hns an abundant supply of caustic soda and soda ash, the chief ro'v rna tcrials
n.'quircd in the production
of so:ips and dcterge111s,'vhich enables the household section or the indu:ary to excel and gro,v.
TI1c accessibility of these ro'\' n1n1crinls gives India the loctuional advnnu1gc.
Pa1anjal i Ayurvcd.."I Kendra Pvt Lid. has registered in 2006 10 con11:>any Rcgistar,
Govenuncnt of Nepal. The co1npnny has authorized to operate sales of Ayurvcd ic Medicines
and publica1ion.ll
\vas cs1ablishcd''ith the n1ain purpose of curing and preventing co1nn1on ailn1cn1s by
Ayurvcda and i1nponing all kind of Ayurvcdic medicines, a.ud io visual 1natcri11ls and
literatures of l)ivy::i Phonnuc y. Divyl1YogSadhunn and DivyuPrdkasht1n. Hurid'\'8r, India lO
distribulC in Nepal .
The Kcndro \VOS con1milled in taking guidance of all the advanced methods of cnectivc
1ren1n1cn1 procedures of Ayurvcda. ·n1c Cc1ucr \vas equipped \vith Ayurvcdic l)oc1ol'S,
Pa1hology Ocpunmcnt. Pham1ncy. Counseling Dcpartn1cn1 and n1any rnorc facilities.
The Ayurvcdic doc1ors'"'ere trained fi-01n I larid\var nnd in housc for a rninir11u1n period
of 2-3 1non1hs before being put into profCss ionul pract ice.
rau1njnli Ayurvcda Kendra had 111ade achicvcn1c-nts in treating thousands suffering front
diseases like osteoarthrit is. rhcurnntoid arthrit is. osteoporosis. lo'v buck ache, ccrvicul
spondylsis, psoriasis, allergic respiratory disorders, 1nultip lc sclerosis. age related 111en1al
stt\".ss and rhcun111tic discuses.Ayurvcda is a holistic healing S<:icncc. Going beyond just
curing :in aihncnt, Ayurveda ainlS at 1otal \\•ell being of 1he individual -his n1ind, body and
spirit.
$\votantromurgh.S,voynmbhu
Chakrapath, K11th1nandu,Nepal
Tel:+977-1-4674666 14674777
E1nail:pa1anjali@\vlink.co1n.np I Patanj11li@n1ail.con1.np
\V\V\V.patanjaliayurveda.cont
Number or en1ployees
Knthnuindu Office 25 Nos.
BuuJ\val Office 7 Nos.
Bank
Details Bank of Krun1andu
Nnnle Head Office / Thnmcl
Address Brooch BOKLNPKA
Swift code
O. panmenl Of Drug
Adminisira1ion on 2063.10. 19
BS.Rcg No.17243.
MISSIONCAllSION
1-ission:
The basic 1nission of lhe Co1npany is ''Qu.ali1y Consu1nc-r Produc1s a1 offordable prices"
and in the process del i\'cring long tem1vnlue to oll stoke.holders in 1he Con1pany.
Vision:
TI1c Con1pany envisions being a don1inant global playe r in the Ayurvt.-dic Product
category and 1hc leading l}randed Player in the Ayurvcdic Product se,grnern in the
lnclinn1arkct and thus occupying a place of pride in tJ1c lnclian Ayurvcdic Market
This shall be achievt-d 1hro\lgh Custorner Cen1ric Processes.People Dcvclop111cn1 and
Research Methodology
Resenrc:h Objcclh•es:
Sampling Detail
I.Targc1
popuhnion: The population for 1his research study consists of1hc residence of
Aurangnbad ..
Jalana.
Medicine 900
Food Products 950
Super foods 700
Ayurvcdic Body Care 800
Ayurvcdic Publica1ions 350
-
1000
900 950
900
800
-
800
700
700
600
500 -
-
-
350
-
400
200
-
300
100
Duily 800
oncc/\vcek or n1ore 162
2 10 3 1ilnes a 1non1h 23
onec/n1on1h 10
every 2·3 n1011th.s s
900
800 - 800
700 -
600 -
-
soo
-
400
-
300 -
200 -
100 162
_ 21 10 s
0
Oally once/week or more2 to 3 times a once/monthevery 2·3 months
month
Very Unsotisficd
Unsatisfied
SornC\\• ha1 Satisfied 2
Very Satisfied 45
Extrerncly So1isfic<l 953
1200
1000
800
953
>--
600
-
>--
400
200
-
2
..
Very SatisfiedExt1emely Satisfied
0
Very UnsatisfiedUnsatisfied Somewhat
Satisfied
Dcfoni1ely 969
Probably 26
M ight or nlig.ht not 5
Probably no1
Definitely not
Nc'lcr used
1200
1000
800 ·-
-
969
600
I-
400
I-
200
-
0
>6 5
Definitely 974
Probably 22
M ight or nlig.ht not 4
Probably no1
Definitely not
1200
1000
800 974
I-
600
I-
400
I-
200
I-
0 22 4
1200
1000
1000
800 1000
800
600
-
600
I-
400
400
I-
200
200
I-
00
LCS$prlc
LCS$ prlc tllgh
tllghQvalltv
Qvalltv high
high pricelow
pricelowquahtv low prllow
low Qualitv
prllow hist! price
Q ualitv hist!highqualitv
price highqualitv
quahtv
ts Mos1 of the Pa1anja l's consunu r are facirlS problc1n like; produc1s ore t'IOI
available regularly. So, they suggested increasing Stock and 1naking sure that products
are available in1nnrkcl reguhuly
:c::
42
43
13
--
27-06-13
28-06-
Jiliiiion abou1 dav'vork .
Discussion \Vith1r.1\1ilhtd S. Shukl a Sir .
I . sun1cy.Questionnaire& intc.rvie\v'vid Customer.
Findings
Sales Pro1notion. a shon-tcmt inducc1ncn1. offered to a consumer or trade has gained
11101ncntu1nas a pron1otional tool \\ orld over. h rc1>rescn1s nearly three founh of the
1
• Quulhy as 1he n1os1 inOucncing factors in the purchase decision \\lhilc price is also an
imponan l ror purchase decision.
• Schc1ncs ah\'llYS anract n1orc and 111orc consu1ncrs 10,vurds pnniculnr br.1nd.
Sin1uhancous ly it gives idt'U about the factors \vhich consu1ncrs look most in the
producl before they n1ake linnl decisio11
• Price off and extra quantity is the l\VO n1nin offerslschc1nes \Yh ich consu1ners
ha ve c.:une ucross at the tinu of purch l•SC
• People arc re.ady 10 buy products of brand \Vhich suits their budget 1ncans rnore quantity
+ less cost + qualily.
• Extra quantity \Vith less or sa111c price, rnorc satisfaction. quality and other
factors innucnce consu111crs 10 s'vi1ch over to 01hcr brands.
• Consun1cr re1ncmbe r that na1nc of the produc1 by the con1pany nainc and also front
the past pcrfomu1nce of 1hot con1pany
• Demand is too n1uch for Patanja li·s produces in n1nrkct. because of thtu shonagc problc1n
occurs in 111arket rcgula.rly.
Pa1anjali Product has less price nnd high qu.1:11i1y so rnore and niurc consu1ncr buy
Pnu1njal i 's products. Den1and is 100 much for Patanjali produc1s. in n1arke1. bttause of that
shonage problen1 occurs in nulrke1regularly.
So. I sucs1 1hn1 Pattlnjttl i should increase 1hc product ivily ond 1uukc sure 1ha1 then:\viii be no
shonagc of product in n1arke1.
• In 45 days of training period al Pat:1njali Ayurveda Kendra Pv1 Ltd.. has enhanced 111y
corpom1c experienced.
• During 1ny training period, I have gone through various aspects of corporate \VDrld and I
found higher au1horitics ure ahvays too busy.
• In fev.•days, the enviroru11en1 n1ade n1e l"bel like a 1>an of the organiuuion.
• Igo1 on opponuni1y & srnall 1ask to observe the production line or P1uanjnli Ayllrvcda
Kendra l'V1Ltd•.
• l lcaml 1hc in11>0r1a ncc of 1nain1aining the discipl ine in \VOrk ond being on 1i1ne for tha1.
• I also learnt thnt Marketing professional need to do every job that co1ncs to his/her 1ablc.
• I le.amt 110\v 1hc eo111p1ny \VOti:s \vi1h group task and 1he n1cuning of coordinating urnong
all employees.
• Ho\v 1in1e is in1porliln t in corporJIC l ife is a basic obscr.1a1io11 of rninc.
• Our skills and kno\vlcdgc arc n key of your fost gro'ving future. and other hand
lozy crnployce ahvays bla1ning on co1npany's \vork.
• This proje<;t is us 1ny first step in corponitc \\•orld and it \\'US really very helpfu l
und a la11dn1atk fOr 1ny ru1urc career.
BOOKS
Website
Ncwspa1>crs
Times of India
Hindustan Times
Journals
De:ir Cus101ner.
As the Markc1ing Exceu th1c of PATANJA LIAGENCY. J \vant to thank you for giving us
the opponunity 10 serve you . Plca.;;c help us serve you bcncr by toking a couple of
1ninutes to tell us about the service th:u you have received so far. \Ve apprt-cia1c your
cooperation and "'ant to make sure \VC 1nec1 your c:tpoctalions.
Sincerely.
TusharCholc
Markc1ing Exc.-cutivc
Medicine
Food Produc1s
Super foods
Ayurvcdic Body Care
Ayurvcdic Public.alio ns
Doily
once/\veek or n1ore
2 10 3 thnes a 1no111h
once/rnonth
every 2-3 1no111hs
Vc-ry Unso1isfied
Unsa1isfied
So111c,vh tu Satisfied
Very S11tiSfi<'<i
Ex1rcmcly So1isficd
Definitely
Probably
M ight or n1ight not
Probably not
Definitely not
Never used
Definitely
Probably
Might or 1niglu 11ot
Probably not
Dcfini1cly not
Nc,1cr used
6) Price of the PTANJALI PRODUCT is su itable to the quality of product company provide'/
THANK YOU