Effectiveness of sales promotion INDUSTRY PROFILE

Cattle play a vital role in the economy of India. Cow and bullocks are regarded as the foundation of agriculture in India. Cattle feed supplies the motive power for almost all agriculture operations such as ploughing, lighting water from wells and the transport of produced to the market. They provide most of them a nure used by the farmers in India and often enable them to earn some this during this spare time by carting for hire; they again yield valuable product such as milk, butter and ghee. The unawareness of farmers about the proper feeding methods of cows affects the milk productivity cows in rural areas. Due to this reason the importance of cattle feed industry has been increased in India. Indian livestock feed industry , though quite old, is still in a very primitive stage, as it is supplying only about 5 % for cattle feed , and 30% for poultry feed in India. The bulk of the feed is being produced by un-organized sector compressed of home and custom mixers. Our human population is ever growing and more people are likely to consume more animal product as the economy and income of the people grow. This expands the market for animal products and therefore compound feed also. India is deficient in green fodder. The increasing allocation of arable land and other natural resources for growing food grains,´ cereals, and oil seeds for human consumption and cash crop for exports, the problem of shortage of green for animal feeding is bound to increase. This opens up prospects for compound live stock industry. Feed industry come into existence in India in 1961 with establishment of feed plant in Ludhiana, India. The animal feed industry has developed since the beginning of 20thcentury, initially supplying feedstuffs only for ruminants and later, as demand developed, also for pigs and poultry. In the past feed mills were usually built at major ports or close to inland water ways. Many of the raw materials were imported, including serials such as wheat, barley and maize, and proteins from groundnuts, linseed, cottonseeds and fishmeal. Some home produced materials were also used generally by products of the food industry. These included wheat feed, left over from flour manufacture; oilseed cakes and meal, from the manufacture of margarine and cooking oils. It can be seen as the compound feed production for cattle increased between 1974 and 1983. This increase was influenced by the financial incentives for dairy farmers to produce as much milk as possible, there by requiring large volume offered for their cattle. The quality standards of Indian feeds are high are high and up to international levels. The industries production is about
Rajiv Gandhi Institute Of Technology-Bangalore. Page 1

Effectiveness of sales promotion 3.0 million tones, which represents only 5 % of total potentials, and feed exports are not very high. The feed industry has modern computerized plants and latest equipments for analytical procedure and least cost ration formulation, and its employs the latest manufacturing technology. In India the most research work on animal feed is practical and focuses on the use of byproducts the upgrading of ingredients and the en Feed manufacturing on commercial and scientific basis started around1965 with the setting up of medium- sized feed plants in northern and western India. Feed was produced mainly to cater to the need of dairy cattle. India is currently self sufficient in live stock feed and does not depend on imports. Instead, the country exports large quantities of solvent extracted metals, which are a major source of foreign exchange earnings. BIS has produced guideline feed standards and the industry also has its own guidelines. Currently there is no compulsion touse BIS standards, but the central government has been advising states to introduce their own regulatory standards.

GROWTH OF ANIMAL FEEDS INDUSTRY

The manufacturing of feed in the organized sector in India began around the mid- sixties with the setting up of medium- sized feed plants in the northern and western parts of the country. The early seventies established sixty feed factories in the country and their number increased manifold to over 400 by the late nineties .The pace of increase was much faster in 70¶s ( compound annual growth rate12.7%) as compared to the subsequent decades. The industrial deli censing in 1991as part of the economic reform package in India did not impact on the expansion of feed industry. The 6.3% rate of expansion in pre deli censing period (1976/77 ± 1990/91 ) remained much the same at 6.88% during the post de-licensing had on the food processing industry in general, and dairy industry in particular where a large number of new factories/plants came up after 1991 -1992.hancing of productivity.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 2

Effectiveness of sales promotion

COMPANY PROFIL

a. Background and inception of the company. Kerala Solvent Extractions Ltd. now known as KSE Ltd entered the solvent extraction industry in 1963 by setting up the very first solvent extraction plant in Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant was set up to manufacture ready mixed cattle feed. The last three decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the country. Today KSE commands the resources, expertise and infrastructure to manufacture a range of livestock feed in high volumes, coconut oil from coconut oil cake and refined edible oil. Driven by a commitment to high standards of quality, KSE has not only won customer confidence but also national recognition through several awards and accolades. With modern manufacturing facilities spread over three states, KSE caters to the vast belt stretching across southern India and enjoys a significant presence in exports too. KSE, a company having an annual turnover of Rs 187 crore, is the largest manufacturer of cattle feed. It provides employment to around 1500 numbers directly and another 5000 indirectly. Its shares are being listed in three stock exchanges in Cochin, Chennai and Mumbai. The Company commenced its production in the year 1972. It is marketing annually about 1.80 lakh tones of superior quality cattle feed. KSE had successfully launched its Vesta Brand ice cream which has been well accepted in the market for its matching international quality standards. KSE plans to add more ice cream production units across Kerala in the coming years to serve all pockets.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 3

The company has already identified 6 acres of land in the KINFRA Small Industries Park. The company has secured the National Productivity Award for the year 2001-2002 for being first in terms of production efficiency in the animal feed sector. . 1987Cattle feed production reaches 180 tonnes. Milestones:    1972 Solvent plant commences operation. Both these plants will be of international standard using most modern technologies. The project will generate direct employment to 125 and indirect employment to another 500 numbers.Effectiveness of sales promotion KSE is in the oil extraction Industry for the past 31 years. KSE.  1989 A solvent unit with a capacity of 120 tonnes per day commences operation at the Tamil Nadu plant. In the first phase. Page 4 Rajiv Gandhi Institute Of Technology-Bangalore. The relation with the labour Unions of all these Units is very warm and cordial.  1990 Introduction of KS Supreme Pellets . in Tamil Nadu with a daily production capacity of 180 tonnes. the company plans to install one 200 MT per day solvent plant for processing oil cakes and also a 100 MT per day physical refining plant. This is the sixth time in a row that the company is being selected for this most coveted award. Koratty for this expansion. a bypass protein cattle feed in the market. The Company is having six Units at different locations. Introduction of computers in the factory and office. In the second phase. The Company has also a chemical oil refining plant of 20 tonnes per day.  1988 A new mixed cattle feed plant starts operation at Swaminathapuram. It is having two solvent plants with processing capacity of 100 tonnes per day. where the process loss is kept to the minimum. with a capital base of Rs 36 core embarks on an expansion to double its solvent extraction capacity and add a most modern eco friendly vegetable refining plant. a 100 MT per day oil fractionation unit will also be added. 1976 Mixed cattle feed production begins.

Company renamed as KSE Ltd.A modern children‟s' park and information centre has been completed at Irinjalakuda for the benefit of the public. Kottayam Dist.Calicut branch opens. 1995.240 TPD cattle feed commences at Vedagiri. Company introduces KS Deluxe Plus the new pelleted feed in HDPE bags for Kerala market.Introduction of feed supplements KS Forte. 1998.Effectiveness of sales promotion      1991Opens its Palakkadu branch. Launches dairy project. Public issue and listing of shares.Fourth feed production unit at Palakkadu. 1999. Kerala.Enters export market.  2000. Page 5 . Rajiv Gandhi Institute Of Technology-Bangalore.     1996.Sunflower Refined Oil launched . 1994 . 1992 Cattle feed manufacturing begins in third party units.Vegetable oil refining plant commissioned. 1993. KS Supreme . 1997 ..Company starts production and distribution of milk and milk products from Konikkara and Thalaysthu Dairy Units.

oil expellers. disintegrators.contribute to social development and rural enlistment. treat. beaching. create a stronger bond between the management. Mission:  To produce. sell or otherwise deal in oil cakes. manufactures. prepare.  To purchase. boilers tank engines. and constantly strive for excellence in all spheres of our activities. extract . toilet soaps. dealers and customers . shifting tin plants. punch machines and other machines. washing. mission and quality policy.. washing soaps. sell and generally to deal in oil from seeds and other bearing materials to carry on the business of refining hydrogenation of oil and the manufacturing of by-products there from and of traders connected there with . Vision. erect.  To acquire. Nature of business carried Manufacturer of cattle feed. Rajiv Gandhi Institute Of Technology-Bangalore. manufacture. filtration and hydrogen plants. For the purpose of business of the company. dyeing. ghee plants and workshops.Effectiveness of sales promotion b. import . pipes. explore new avenues in product development and marketing.  To purchase. Vision: We shall Endeavour to maintain leadership through quality products. establish. c. oil mills . operate and maintain. purchase. construct. Filter process. oil deodorizing. refine.export. dairy products and cattle feed supplements. oil naturalizing.extractions plants. Workforce. And meet the quality standards”. Page 6 . electric motors. KSE Limited an ISO 9001-2000 certified company. hair oil and tinned products Quality policy: “Manufacture quality products to the satisfaction of our customers.

Tamil Nadu and Gujarat. Deluxe plus pellets 3.S.S. Page 7 .S. also includes two supplementary products 1 K. K.S Mineral mixer K.S. K. also started producing milk products.Effectiveness of sales promotion d.S.S. Products profile: In the beginning stage of KSE limited had only solvent units.S Forte 2.S. Cattle feed in two 1. After sometime the company started to produce Jersey copra cakes and compound cattle feed jersey copra cakes which comes out of the solvent extraction process are made pure by desolventising and are named as Jersey brand copra. Ordinary 3. Ghee Rajiv Gandhi Institute Of Technology-Bangalore. K. K. Pellets form In Mash form contains 1.S. Various other products like 1. At present it is marketed in Kerala.S. K.S Milk 2. Deluxe Pellets 2. Special In Pellets form contains 1. K. Supreme pellets K.S. K. Mash form 2. K. K. Super 2. K.

S Curd 4 Butter milk 5. Solvent Extracted Coconut e. K. They are following “AUTHORITARIAN STYLE” of ownership pattern. of Shares(Mn) 1. Tamil Nadu and Gujarat.Effectiveness of sales promotion 3.9 18.3 48. In KSE. De-Oiled Coconut Cake 7. (Nationally) f.03 0.58 1.4 0.00 0. The company is fully centralized in the hands of government. Area of operation.00 0. the ownership pattern can be easily identified. Since 1972 it has its customer‟s majority in south India.0 0.04 0. At present it is having its operations in Kerala. Vesta Ice cream 6.20 % Holdings 32.55 3. Ownership Pattern. No. . the company is fully governed by the „government of KERALA‟.0 0. Shareholding Pattern Particulars Total Promoter Holdings Total Govt Holding (Promoter + Non Promoter) Total Domestic Institutions (Banks/ FI + MF / UTI) Total Foreign Holdings (FII+NRI holdings) Total Non Promoter Corporate Holdings Total Public & Others (Individuals + HUF + Clearing members) Total Rajiv Gandhi Institute Of Technology-Bangalore.4 100 Page 8 . Hence.

With modern manufacturing facilities spread over three states. Computer Centre. coconut oil from coconut oil cake and refined edible oil. Tamil Nadu and Edayar. Dairy Plant. Driven by a commitment to high standards of quality. KSE caters to the vast belt stretching across Southern India and enjoys a significant presence in exports too. Page 9 .Effectiveness of sales promotion G. Competitors Information           Ruchi Soya Sanwaria Agro Agro Tech Foods Gokul Refoils Ruchinfra Guj Amb Exports Kerala feeds AVT Natural Anik Industries Kriti Industries Milma Sunandini Unilever    g. The company is using German technology in production of their products. And a park open to public Rajiv Gandhi Institute Of Technology-Bangalore. expertise and infrastructure to manufacture a range of livestock feed in high volumes. Kottayam. The company has 73 acre of land in Kerala . It has its own Research Divisions in Tamil Nadu . Biotechnology Centre. National Library in Dairying. and has 5 major plants in Palakkadu. Infrastructure Facilities Today KSE commands the resources. KSE has not only won customer confidence but also national recognition through several awards and accolades.

Effectiveness of sales promotion h. 3. Entrepreneur Award from the College of Veterinary and Animal Sciences. 10. “Top Cattle feed Award” for aflatoxin free feed from “The Indian Association of Veterinary Pathologists” (IAVP) and Kerala Agricultural University. 12. 2. Tamil Nadu productivity Council Safety Award.did not match any documents. National Awards and State Productivity and Safety Awards for many years. Industry Excellence Award from the Indian Society for the study of Animal Reproduction for the year 2001. Front-ranker in mixed cattle feed production in India.A. . Winner of S. Achievement and awards 1. 5. Page 10 . 8.received for 16 years consecutively. since institution of the award continuously for 20 years including 2009-10. Kerala state productivity Council award.E. No: 1 in processing coconut oil cake through solvent extraction in India Rajiv Gandhi Institute Of Technology-Bangalore. 11. “The solvent Extractors‟ Association of India”-SEA Award for highest processor of coconut cake in India. “Best productivity performance for Cattle feed in India” Award from National Productivity Council continuously for Eleven Years 1996-97 to 2005-06. Animal Nutrition Society of India Award for Company‟s contributions for propagation of balanced compound livestock feed in India. 6. 7. 9. 4. SEA AWARD .

Page 11 .Effectiveness of sales promotion j. Raw materials GRINDING MIXING Marketing Mash SEALING PELETISATION CATTEL FEEDS WEIGHTING PACKING Rajiv Gandhi Institute Of Technology-Bangalore. Work flow model.

establish. export. punch machines and other machines. filtration and hydrogen plants. 2.Effectiveness of sales promotion K. oil neutralizing. extraction plants. prepare import. erect. disingrators. dyeing bleaching. refine. purchase. manufacture. To produce. 3. Future growth and prospects: 1. sell and generally to ideal in oil from seeds and other oil bearing materials to carry on the business of refining the hydrogenation of oil and the manufacturing of products there from and of trades connected there with. filter press. extract. construct. washing. To acquire. To purchase for the purpose of business of the company. oil expellers. Page 12 . operate and maintain oil mills. Rajiv Gandhi Institute Of Technology-Bangalore. ghee plants and workshops.

This is because the two persons who developed this model. Rajiv Gandhi Institute Of Technology-Bangalore. They published their 7-s model in their article “structure is no organization” (1980) and in their books “The art of Japanese management” (1981) and “In search of excellence” (1982). style.Effectiveness of sales promotion MCKINSEY’S 7S FRAME WORK The 7-s model is better known as McKinesy‟s 7-S model. At that time. Since the variables are interconnected. system. structure. The proposition of the 7-s model suggests that there are multiple factors which influence an organization‟s ability to change and its proper mode of changes. staff. skills. The frame work rest on the proposition that effective organizational change is best understood in terms of the complex relationship between strategy. and shared values. Page 13 . Tom Peter and Robert Waterman. have been consultants at McKinsey &co. significant progress cannot be made in one area unless corresponding progress is made in other areas too.

Basis for specialization and coordination influenced primarily by strategy and by organization size and diversity. System: formal and informal procedures that support the strategy and structure. mission. cost accounting procedure. and major action plan and policies. a company plans in response to or anticipation of changes in its external environment. Organizational culture – The dominants values and beliefs and norms. The systems may called the „infrastructure‟ and include sub-systems relating to production planning and control. etc. consisting of two components. ways of shaping basic values for management cadre ways of introducing young recruits to the company. ways of helping of manage the careers of employees. Rajiv Gandhi Institute Of Technology-Bangalore. Structure: is an additional to the organizational tool kit. which develop overtime and become relatively enduring features of organization life. Management style: More a matter of what managers do than what they say. goals. how do company‟s managers spend their time? What are they focusing attention on? Staff: The people or human resource management.Effectiveness of sales promotion Description: The Hard S’s: Strategy: Actions. Page 14 . specialization process. objectives. The Soft S’s Style/Culture: the culture of the organization. The concept of strategy includes purposes. capital budgeting.process used to develop managers. recruitment.

the marketing manager with the responsibility for marketing of all the products of all the plants and so on. which indicates to why extent the activities are specialized and the ways in which the organizational tasks are integrated and coordinate. or competence in the area of new product development customer service. The personal manager may be entrusted with personnel matters relating to the entire department. usually at abstract level. fundamental ideas around which a business is built. Rajiv Gandhi Institute Of Technology-Bangalore.must be simple. Shared values: guiding concepts. ways expanding or shifting competencies in terms of engineering skills. 1. It is comparable with the superstructure of organization. It is the basis for a specialization and co-ordination influenced primarily by strategy and organization activities are grouped and co-coordinated. KSE has functional Organization structure that is well formulated through the control of the directors of the company as all authority and responsibility is vested from their hands and has undertaken the position of departmental heads for better co-ordination between the departments and to maintain good relationship among the employees and workers. having great meaning inside the organization even though outsiders may next see or understand them. Page 15 . STRUCTURE: In the context of 7-s framework.Effectiveness of sales promotion Skill: The distinctive competencies what the company does best. The company system involves the grouping of all functions into major functional departments and entrusting each department to one executive. 7s with reference to the company. market power and so on. the relationship between the personnel in the organization is formalized. structure is an addition of the organizational tool kit. intentional structure of roles and positions in the organization. quality commitment.

Effectiveness of sales promotion Organizational structure BOARD OF DIRECTORS Chairman &managing director Executive director Chief General Manager Whole time director Finance manager Purchase manager Personal manager Marketing manager Chief nutritionist Works manager Rajiv Gandhi Institute Of Technology-Bangalore. Page 16 .

performance evaluation etc. goals and major action plans and policies. New users can be found in new geographic segments. mission. Page 17 . planning and budgeting. it is very important that the prices of goods are competitive. This scrutiny would not be complete without an evaluation of both the type of customers the company has and what said customers are purchasing. In the current market conditions where price competition is high. regulation and procedures constitute „system‟ in 70s frame work. Another way is to expand sales through new uses for the product. which complement the organizational structure.Effectiveness of sales promotion 2. new demographic segments. The services provided should be top class. The first step for a company to increase its market size is usually to discover the segments of the market that are currently being supplied. This data is used to create a cost efficient and encompassing market development strategy. The 7-s framework emphasizes that in practice. A company follows a market development strategy to expand the potential market through new users or new uses. The „system‟ may be called the „infractura‟ and include subsystem relating to production planning and control. cost accounting procedures. Following a particular strategy which is unique will make the Organization to get more customers and more profits. Rajiv Gandhi Institute Of Technology-Bangalore. objectives. 3. System Rules. Strategy refers to the future plan of action the organization takes to achieve its goals. The two most used marketing development approaches are attracting customers of competing firms and branching out to an unserved market segment. STRATEGY: The concept of strategy includes purposes. the development of strategies posses less of a problem than their execution. recruitment. capital budgeting. training and development.

machinery and property) and intangible (e. Page 18 . if any. reputation or intellectual property such as trademarks). It is an Authoritarian Organization. both physical (e. Internal audit are being carried out regularly in all units and the internal audit report and the corrective actions taken for the shortcomings reported in those. The style of an organization becomes evident through the patterns of action of the top management team over a period of time. the emphasis laid on aspects of business. are being discussed in audit committee meetings. 4.. The Company is having the top down style of authority.Effectiveness of sales promotion There is adequate internal control system in vogue in all spheres of operation of the company so as to its assets against loss. reporting relationship and aspects of organizational culture. wherever felt. Under this company all the departments‟ heads/ directors will conduct meeting to discuss the activities of the company and take necessary steps and decisions in turn they implement the steps/ actions in their respective departments to focus on smooth and efficient running up of the company. The internal control system is being continuously reviewed by the management and adequate steps are taken for improvement.g. These internal controls are designed in such a way to ensure accounting and financial controls and help the organization accomplish specific goals or objectives. The company style of the management can be described as to be participative in nature. which may determine the effectiveness of organization changes efforts. Manager‟s work together as team to solve day to day‟s problem in a significant manner. Rajiv Gandhi Institute Of Technology-Bangalore. STYLE: Style is another variable.g.. This system plays an important role in preventing and detecting fraud and protecting the organization's resources.

Officers and Managers. Page 19 . Therefore. The workers of the KSE Ltd. selection of right kind of person to perform the task is an important activity in the organization.comes under the personal department.Effectiveness of sales promotion 5. office staff. Officers & Managers Office Staff Technical Staff 610 200 465 Rajiv Gandhi Institute Of Technology-Bangalore. Personal Department is the main and most important department of a manufacturing concern. The workers includes. The total work force in the organization is 1430. headed by the Personal Manager. unless the employee puts his 100% efforts the company will not succeed in achieving its goal. TABLE SHOWING DIFFERENT CATEGORIES OF WORKERS IN KSE Ltd. technical workers and go down workers. STAFF: The term „staff‟ carries a specific meaning in 7-s framework it refers to the way organization induct young recruits into the main stream of activities and the manner in which they manage their careers as the new entrants develop into managers The success of the organization greatly depends upon the manpower working in the company.

Rajiv Gandhi Institute Of Technology-Bangalore. 7. and so on It is the ability that a person requires to perform the tasks in the company. Shared values : Values are things that you would strive for even if they were demonstrably not profitable.    MANAGERIAL SKILLS: Are being used in administration level and clerical. The skills differ from person to person and also it is based on the work.must be simple.Effectiveness of sales promotion 6. quality commitment. customer service. fundamental ideas around which a business is built . Have great meaning inside the organization even though outsiders may not see or understand them. SKILLS: „skills‟ refers to the „distinctive competence‟ which reflects the dominant skill of an organizational. or competence in the area of new product development. market power. These are the guiding concepts. Page 20 . NON-TECHNICAL SKILL: Are being used in staffs . TECHNICAL SKILL: Are being used in Production level. and may consist of competence in terms of engineering skills. In Order to make the employees skilled the company takes necessary measures to provide training to them. usually stated at abstract level.

Weakness. Seizing opportunities. This tool is effectively used as a decision making aid while planning new vocational programs. Opportunities 2. Page 21 . Rajiv Gandhi Institute Of Technology-Bangalore. 1. Threats Probably the strangest message from a SWOT analysis is following Elements:     Building on strength. Countering threats. Opportunities and Threats) has been a useful tool for industry. Strengths Weaknesses External factors are. External factors. Internal factors. Minimizing weakness. Internal factors are. The swot analysis is classified into 2 types.Effectiveness of sales promotion SWOT Analysis SWOT (Strength.

poultry feed and duck feed.  Continuous profit making company thus financially healthier organization.  Dairy industry is forward integration of other two segments and thus can service the customers of those two segments. Page 22 . for cattle feed.  Location advantages being adjacent to National Highway.  No:1 in processing coconut oil cake through solvent extraction in India Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion Strength  Reputation and brand image of the KS for the quality of its products..  Majority of the milk societies in the Thrissur District are dealers of KSE Ltd.  A company which is listed in the three stock exchanges in the country.

 Lack of public relations programs. Rajiv Gandhi Institute Of Technology-Bangalore. OPPORTUNITIES  Milk consumption habits are developed among the consumers hence there is huge demand in present market requirement for milk products. Page 23 .  Promotional measures are non-aggressive.  Acceptability of the feed and its quality standards in the market.  Indirect control by government over price of milk which is a bottle neck in increasing price of feed to offset increase in raw material prices.  No veterinary programs are conducted.  Doubts about international competitiveness.  Availability of talented technical and marketing personnel.  Product diversification is to be explored  Development of milk based sweet industry.Effectiveness of sales promotion Weakness  Do not provide any financial assistance for any production enhancement Programs.  Frequent complaints especially on the packing by the consumers.

 Entry of big players including Multinational Corporation in the market catered by our company.  Granting of subsidy on animal feed by the government selectively avoiding private manufactures. Rajiv Gandhi Institute Of Technology-Bangalore.  Upward revision of fuel price increasing of ingredients manifold. Page 24 .Effectiveness of sales promotion Threats  Unhealthy competition from small players who are producing cheaper quality products.  Government has introduced excise duty on ice cream at 1% and government may enhance the rate of excise duty in future.

There is lot of fluctuation from previous to current year.94 that was decreased to . The ideal current ratio is 2:1. There is increasing in the sales due to increase in volume of operation.63 that was decreased to 2. 5866951 in 2010.36 this indicates that liquidity of business is showing positive trend. Cash or bank balance ratio: here the ratio in 2010 was . Current assets turnover ratio: this reveals the number of times the current asset of the company is utilized in the trading transaction.Effectiveness of sales promotion Analysis of financial statement Working capital: it has increased to 8. Current ratio of above shows a satisfactory short term liquidity position. Rajiv Gandhi Institute Of Technology-Bangalore.65. The QR of the company in the year 2010 was .31 and 2011 it was 11. The standard quick ratio is 1:1 as quick asset can be realized quickly without much loss. Page 25 . Current ratio: current ratio indicates the ability of the company to meet its short term obligation and also measure the working capital of the company.the company current ratio for year 2010 was 2.5% compared to last year that shows the positive trend this is due to increase in turnover and volume of operation.in 2011 that was Rs.38 in 2011. That is showing increasing trend because the current assets utilization good is satisfactory. The companies‟ cash and bank balance reflects the decreasing liquidity of the company. This variation tells us that proportion of cash and bank balance that held by company to current assets which is satisfactory. Quick ratio: is the real index of liquidity or short term solvency of an organization.26 and in 2011 it was .088 and it is showing the decreasing trend. Since quick ratio is less than the standard the quick assets may be relished by incurring little loss. Net Sales: the company has achieved net sales of Rs 8748663/. since current assets are more than current liabilities this shows that the enterprise has its enough working capital to meet its liabilities. In 2010 ratio was 11.

Rajiv Gandhi Institute Of Technology-Bangalore.that was increase in year 2011 to Rs.that was increased to Rs.301534348. 4485625412. Page 26 . Financial and operational performance: The total turnover during the year review improved by 22% compared to immediate preceding year. Reserves and surplus: the total reserves in 2010 war Rs. The volume wise cattle feed sales is 12%.81 lakhs compared to s 827. 3728655659/. Dividend: considering the profit for current year dividend is paid 100% to the share holders. 293744846/. Income: in the company total income in the year 2010 was Rs.27 lakhs in previous year. This is due to increase in sale Expenditure: the expenditure in 2010 was Rs. 3602041882 that was increased in the year 2011 Rs. 4552356099 in 2011.Effectiveness of sales promotion Profit after tax: the profit of the company declined by 45% and the tax profit for the year under the review is Rs 449.

In this competitive world this kind of an approach is extremely indispensable. without which facing the corporate world is a difficult task. Students coming out. Rajiv Gandhi Institute Of Technology-Bangalore. confidence and competence. Today‟s corporate world demands for all these qualities.Effectiveness of sales promotion Learning experience The MBA course has the “10 week project work” as part of its curriculum to make the students experience the actual corporate world and learn its ways of functioning. Page 27 . as MBA‟s would be ready to have an interface with the corporate world with determination.

Study of “effectiveness of sales promotion in KSE Limited” Rajiv Gandhi Institute Of Technology-Bangalore. Page 28 . Through this study. Hence due to this it is crucial analyze the promotional strategies of KSE Ltd and its competitors to penetrate the target market.Effectiveness of sales promotion General introduction: Statement of problem At present in this competitive business world the cattle feed industry has more brands in the battle field facing stiff completion in every segments targeted. In this juncture it has to identify its competitors in this market by bringing brand awareness in the minds of customers and also it has to cope up with the updated advertising and sales promotional strategies. Even brand KSE is also facing stiff competition to retain brand in the market. There are different players in the market in this industry and their own promotional strategies where is to inducing the different consumer segment. the main problem that it studies during this project work is to find out the effectiveness of the reach of different sales promotion techniques to the consumers and the awareness of brand among the consumers of Kerala District.

Page 29 .Effectiveness of sales promotion Objectives: 1. To study the effect of sales promotions in the company. To give suggestion in development of effective sales promotion. 9. To study consumer preferences with respect to sales promotion in KSE ltd 2. relative importance of different attributes while responding to a sales promotion offer. To know the customers response. To examine tradeoffs. 5. Rajiv Gandhi Institute Of Technology-Bangalore. To find out the reasons for low sales of the products. 6. To find out the effectiveness of promotional strategies of KSE Ltd. 4. 7. To find out the measures to boost up sales. 3. 8. To study the brand awareness of KSE Ltd and its products.

2. Research methodology: The formidable problem that follows the task of designing the research project is known as the “Research design”. If the design adheres to the research objectives. A. The sample design and construction of the data collection instrument. Research design is a plan structured and strategies of investigation. it will ensure that the client need will be served. Source of data: The data collected through primary data. 3. Direct: There is 100 degree of accuracy. In order to know the brand awareness of the KSE Ltd and its products . 1.  In order to achieve the objective it was necessary to talk to the customers and public to draws the conclusions regarding the objective. Purpose of enquiry: The scope enquiry is to support the data required to make study on “An effective study on promotional activities of KSE Ltd and its products. B. The design of quantitive research study includes the method for collecting the data. Rajiv Gandhi Institute Of Technology-Bangalore. Scope of the data: The scope of enquiry is limited to the study of topic concerned only. It is the arrangement of condition and analysis of data in a manner to combine relevance to the research purpose with economy in procedure.Effectiveness of sales promotion Scope of study The main purpose of the study is to identify the awareness of branding system and sales promotion program adopted by various producers engaged in the production of cattle products and specific relation to KSE Ltd products.To study the reach of branding system and sales promotion program of KSE products among the consumers of the Kerala district. Page 30 . Nature and type of enquiry: Non-official Non-confidential. It is the heart of the planning. RESEARCH DESIGN A research design is the determination and statement of the general research approach or strategy adopted for the particular project.

For this it is important to obtain the complete and actual information about the subjects. TYPE OF ANALYSIS As all the data found in the survey is totally numerically so the type of analysis was statistical. TYPE OF RESEARCH In this project Descriptive Research has been used. Page 31 . As all the data was based on numerical figures obtained in the survey. a questionnaire has to be designed. TYPE OF QUESTIONS The questions were self-administered. Descriptive Research: This is kind of research structure which is concerned with describing the characteristics of the problem.  The sample size taken is 100 customers and publics. with a view to obtain maximum information from the respondent that is why the questions were straightforward. SOURCE OF DATA Rajiv Gandhi Institute Of Technology-Bangalore. NATURE OF RESEARCH Quantitative type of research has been used. TYPE OF QUESTIONNAIRE The entire questionnaire was standardized and formalized. In this way the main purpose of such a research design is to present a descriptive picture about the marketing problem on the basis of actual facts. The questionnaire was designed in such a manner to achieve the objective of the research.Effectiveness of sales promotion  For visiting the customers and publics to collect the relevant information.

Page 32 . The following things are primarily considered in the sample: Sample Size The sample size of the population was 10 retail stores and 80 customers respondents. Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion 1. Generally in most of the marketing studies on sample or most of the sub group of the total population pertaining to the subject is included on the place of the universe. A questionnaire consists of number of question printed in a definite order on a form or a set of form SELECTION OF THE SAMPLE/SAMPLING PLAN This is one of the most important steps of a research design procedure.  Sample Population A survey of people who either own or plan to purchase laptop and on located in Kerala city only. SECONDARY DATA The data which is already collected by someone else and which have been passed through the statistical process is known as the secondary data METHODS OF COLLECTING PRIMARY DATA Interview Method In this project I have taken the questionnaire method for collecting necessary information. 2. In this method a questionnaire is given to the person concerned with question to answers the question and return the questionnaire. PRIMARY DATA The data which is collected fresh and for the first time and thus happen to be the original one characteristic is called as the primary data.

and from end users we cannot collect data. Customer and Consumers are different. 5. Limitation of the study: 1. 4. The study of promotional activity was conducted only in Kerala. Questionnaire is the formal tool of asking questions directly from respondents by which questions are asked. Page 33 . Rajiv Gandhi Institute Of Technology-Bangalore. 2. Some customers have been found to have biasness in their response because of good and bad experience with the KSE product. Limited response from respondent may not reveal the accurate picture as accurate data was not revealed by the respective respondents. SECONDARY DATA COLLECTION The report mainly consists of a data from the primary source gathered the schedule of questions. Information about the product is taken from various sources such as websites. Random sampling suggest away of sample selection where in any item of the population is likely to be selected in a sample as any other item it means that all items of the population have equal probability of being selected in the sample. Literacy rate of the people. 6. Study was conducted only for the period of 10 weeks only. newspapers etc.Effectiveness of sales promotion  Sampling Methods The sampling method for the survey was random sampling. 3.

6%. Sales promotion often attracts brand switchers. SALES PROMOTION HAS DUAL OBJECTIVES:        To increase buying response by ultimate consumers To increase selling efforts and intensity by dealers as well as by sales a personnel To capture the major share of the market To meet the competition of other firms To inform the public about the new product and its specialties. to reward loyal customers and to increase the repurchase rates of occasional users. The aim of production is sales. Sales promotion consists of a diverse of innovative tools.Sales promotion tools vary in their specific objectives. designed to stimulate quicker or greater purchase or particular products/services by the consumers are the trade. mostly short term. Brand switchers are primarily looking for low price.Effectiveness of sales promotion THEORY CONCEPT Introduction: PROMOTION:The word promotion. Today sales promotion has been accounted for 60% to 70% of the combined budget. the meaning is “to move forward or to advance an idea. In markets of high brand dissimilarity. Sales and promotion are two different words and sales promotion is the combination of these two words. sellers use incentive type promotions to attract new customers. good values or premiums. originates from the Latin word “promovere”. Sales promotion yields faster responses in sales than advertising. demonstrations and non-recurrent selling efforts not in ordinary routine. Page 34 . because users of other brands and categories do not always notice or act on a promotion. A free sample stimulates consumer trail and while a free management advertising service cements a long-term relationship with a retailer. attraction and advantages To create favorable attitude towards the product To create additional talking points to sales persons To establish and maintain communication with large market segments Sales promotion includes those sales activities that supplement both personal selling and advertising to co-ordinate them and help them make effective such as displays shows and expositions. Sales promotion methods aim to capture the market and increase the sales volume. MARKETERS TAKE SALES PROMOTION ACTIVITIES FOR THE FOLLOWING REASONS:Rajiv Gandhi Institute Of Technology-Bangalore. Sales promotion expenditure has been increasing 12 annually compared with advertising in of 7. Sales promotions are unlikely to turn them into loyal brand users.

pricing. and place. A promotional plan can have a wide range of Rajiv Gandhi Institute Of Technology-Bangalore. E. product line.Effectiveness of sales promotion      For introducing new product For overcoming unique competitive situation For unloading accumulated inventory For getting new accounts for persuading dealer to buy more/increase size of orders For retrieving cost accounts ROLE OF PROMOTION:To communicate with individuals. A promotional mix specifies how much attention to pay to each of the four subcategories. (The other three elements are product marketing. Sponsorship. or company. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. Page 35 . newspapers. groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products. TV. endorsements. radio. Internet. and trade shows The specification of these four variables creates a promotional mix or promotional plan.) Promotion is generally sub-divided into two parts: • Above the line promotion:Promotion in the media (e.g. Promotion and Society Marketers need to communicate. and how much money to budget for each. and. • TV • Newspapers • Radio • Magazines Promotion Involves disseminating information about a product. product placement. brand. Mobile Phones. historically. merchandising. illustrated songs) in which the advertiser pays an advertising agency to place the ad Below the line promotion:All other promotion.g. It is one of the four key aspects of the marketing mix. personal selling. sales promotion. public relations. therefore need a medium to facilitate communication. direct mail.

positioning. in a hair salon. creation of brand equity. new product acceptance. Also known as The 4 Ps of Marketing. Here is a brief description of each component of the 4 Ps of the marketing mix. Corporate marketing world and the practice of marketing has obviously evolved tremendously since this term was invented. By contrast. the marketing mix is a very useful. meaning that unit sales will go up or down more responsively in response to price changes.S. or creation of a corporate image.g. PLACE:This term really refers to any way that the customer can obtain a product or receive a service. The term marketing mix refers to the primary elements that must be attended to in order to properly market a product or service. Here is a definition of marketing mix and a description of its main components. through the mail. Getting the marketing mix right for your product or service means you are covering all of the important bases in your marketing campaign. but not normally to the public or the market . Or. The price elasticity of your product or service can be determined through various market testing techniques. PRICE:The price you set for your product or service plays a large role in its marketability. those products that have a generally more limited availability in the market (but with strong demand) are more inelastic. is a Web-based software application a product or a service?).. Page 36 . competitive retaliations. PRODUCT:The marketing mix concept has its roots in the 1950s U. Pricing for products or services that are more commonly available in the market is more elastic. you need to be able to create a market niche through building a strong brand. The term "promotion" is usually an "in" expression used internally by the marketing company. existing market demand. One of the changes is that there are a lot more services available nowadays. meaning that price changes will not affect unit sales very much. Either way. such as those available online. Also. if a bit general. etc. on a cruise ship. via downloadable files. Rajiv Gandhi Institute Of Technology-Bangalore. product here refers to products or services. such as in a retail store. guideline for understanding the fundamentals of what makes a good marketing campaign. The ease and your sales volume.Effectiveness of sales promotion objectives.phrases like "special offer" are more common. The product or service you offer needs to be able to meet a specific. the distinction between product and service has become more blurry (e. including: sales increases. Provision of a product or service can occur via any number of distribution channels.

. only 2. • How the target audience decodes messages • What media will effectively reach the target audience SCOPE AND IMPORTANCE OF SALES PROMOTION:    Why?      companies are looking to get a competitive edge quick returns are possible for short term profits more consumers are looking for promotions before purchase Channel members putting pressure on manufacturers for promotions advances in tech. NINE ELEMENTS TO THE COMMUNICATION PROCESS Sender and Receiver Target Market are the major parties in the communication process. May focus on resellers (push). coupon redemption) 323 billion coupons were distributed 1993 nationally annually (3. $15-20 billion/year spent on point of purchase material in stores.Effectiveness of sales promotion Marketing has come a long way from the 4 Ps of yesteryear. more noise with non-personal communication Sender needs to know: • What audiences they want to reach • What responses they want. make Sales Promotion easier (i. consumers (pull) or both. Last element is Noise in the system. The marketing mix serves as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign.e.200/household). New York auto show attracts more than a million people per year.3% are redeemed. SALES PROMOTION OPPORTUNITIES AND LIMITATIONS  Increase in sales by providing extra incentive to purchase. and yet understanding this marketing mix is for your product or service remains very relevant today. 9000 trade shows containing 10 exhibits or more/year. Page 37 Rajiv Gandhi Institute Of Technology-Bangalore.

for the winner attractive prizes are given in the form of cash or valuable articles.Effectiveness of sales promotion       Objectives must be consistent with promotional objectives and overall company objectives. Samples: free samples are given to consumers to increase the product. match books etc. Contests: the customers are asked to state in a few words why they prefer a particular product. which increases the instinct of the buyers. Balance between short term sales increase and long term need for desired reputation and brand image. Price off offers: it stimulates sales during slump reasons. the consumer must purchase a product and submit the evidence with the entry forms to contests. To enter. customers may stock up during the promotion. represent decline in the product quality. Coupons can be mailed. Page 38 . Money refund offers: if he purchaser is not satisfied with the product. Reminder functions-calendars. with high payoffs. it is a certificate that reduces prices. a part or all of the entire purchaser‟s money will be refused. MAJOR CONSUMER PROMOTIONAL TOOLS: Coupons: coupons are supplied along with a product. These are given to the people in the hope that they will buy the goods when they are satisfied with the sample. It is arranges at the retail. Shift focus away from the product itself to secondary factors. Products are offered free or at a reduced cost as an inducement for purchasing. therefore no product differential advantage. Reduces profit margins. Impulse purchases increased by displays Contests generate excitement esp. store or in trade fairs. It gives a temporary discount to the customers. Rajiv Gandhi Institute Of Technology-Bangalore. Premium offer: it is a temporary price reduction. enclosed in the packets or printed in the advertisements. T Shirts. LIMITATIONS     Consumers may just wait for the incentives May diminish image of the firm. Attract customer traffic and maintain brand/company loyalty. Demonstration: it is the instructions to educate the consumers in the manner of using products.

If the sales force sells the product above the targeted sales. Sales contests: A sales contest is a contest involving the sales force or dealers. Price deals: Apart from the regular discount. Dealer’s contest: This is an indirect way of boosting the sales. Brands are drivers of competitive edge. inspire and reward salesmen. Allowance: An allowance is an amount offered in return for the retailers agreeing to feature the manufacturer‟s product in some way. low cost items given by sales people to prospectus and customers bearing the giver‟s name and address and sometimes an advertising message. BRAND: Brands are names generally assigned to a product or service or a group of complementary products while a corporate image covers every aspect of the company. Sales force promotion tools:-Trade shows and convention: Industry associates organize annual trade shows and conventions Bonus to sales force: The manufacturers set a target of sales for a year. aimed at inducing them to increase their sales results over a stated period. Specialty advertising: It consists of useful. A successful brand is a name. or some combination. design. with prizes going to those who succeed. This type of contest is conducted at the level of retailers and wholesalers. symbol.Effectiveness of sales promotion Dealer’s promotion tools:-Price off/off list: a price off is a straight discount of the list price on each case purchased during a stated time period. Encouragement is given to them during the discussion. special discount are also allowed to dealers for a special quantity of purchased. Co-operative advertising: Dealers spend money in advertising manufacturer‟s product with the consent of manufacturers. bonus is offered to them. Free Goods: Free goods are offers of extra cases of merchandise to middlemen who buy a certain quality or who feature a certain flavor or size. which identifies the „product‟ of a particular organization as having a sustainable differential advantage” BRANDING:Rajiv Gandhi Institute Of Technology-Bangalore. Page 39 . Salesmen meeting and conference: the idea behind this is to educate.

A brand loyalty gives seller some protection from the competitors and greater control in market program. is known as branding. • Branding gives seller the opportunities to attract profitable set of customers. Some importance of branding is as follows: • Branding helps the seller segment market each formulated differently and aimed at specific benefits seeking segment. which appears in the form of a symbol. quality and benefits etc. • It should be easy to advertise and identify • Should be of a permanent nature • It should be capable of being registered and protected legally • It should economical to reproduce • It should create a good image • It must have a pleasing sound to the ear when pronounced. coloring or lettering it is designed to easy identification of a product • Brand should suggest something about the product. Rajiv Gandhi Institute Of Technology-Bangalore. design or distinctive. Page 40 . • Good brand helps in building corporate image • Memory recalls is facilitated • Advertising can be directed more effectively and linked with other communication programs • Branding leads to a more ready acceptance of a product by wholesalers and retailers • The importance of price differentials may be diminished • Brand loyalty may give a manufacture greater control over marketing strategy and channels of distribution • Branding makes market segmentation easier • Brand mark is that part of the brand. purpose.Effectiveness of sales promotion • It is the practice of giving a specified name to a product or group of products of one seller branding is the process of finding and fixing the means of identification naming a product like naming a baby.

” ADVERTISING IS MAINLY FOR THE PURPOSE OF:- Rajiv Gandhi Institute Of Technology-Bangalore. It may be part of package. It creates desire for new products the success of advertising greatly depends upon effective advertising program. ADVERTISING:Advertising as any paid form of non-personal presentation and promotion of ideas. goods or services by an identified sponsor. Packing means wrapping of goods before they are transported or stored before delivered to a customer. or it may be a tag attached directly to the product. According to Philip Kotler. Advertisement is that activity by which visual oral messages are addressed to the general public the aim is to persuade people to buy more. “advertising is non-personal form of communication conducted through paid media under clear sponsorship. The act of attaching or tagging the label is known as labeling PACKAGING: Packaging of a consumer product is an important part of the marketing plan. Its purpose is to inform or influence then in order to increase of the sales. Packaging an activity.Effectiveness of sales promotion FORMS OF PROMOTION: • Personnel selling • Advertising • Sales Promotion • Publicity • Propaganda and Public Relation SELLING: Selling is the personnel or interpersonal process of assisting and persuading a prospective customer to buy a commodity or service and to act favorability upon an idea that has commercial significance to the seller‟ LABELING: Label is a part of the product which carries verbal information about the product or the seller. Page 41 . which is concerned with protection economy convenience and promotional consideration? The wrapper of the container is celled package.

To create brand patronage 4. the absence of correct decision will waste the money without result. relation to industrial professional. relating profession form. relating to farm products Non-commercial advertising:-Non-profit organizations adopt this type of advertisement. Institutional Advertising:-It is displayed to create goodwill for the firm rather than to sell its product it gives importance to the firm and wants to create a good impression about a particular manufacturer. for dealers support 5. it eats away the funds. A particular product with its brand is promoted through advertisement. SELECTION OF ADVERTISING MEDIA:It is a means through which advertises communicate their idea to likely customer to influence them with a view to know and decide about the product or service advertised. It needs a prudent calculation.Effectiveness of sales promotion 1. Rajiv Gandhi Institute Of Technology-Bangalore. KINDS OF ADVERTISING:Product Advertising:-It aims at selling a particular product. Page 42 . Promotion of new product 2. Commercial Advertising:-May be trade advertising relation to trade industrial advertising. It must satisfy the following:• It has to reach maximum prospects • It must gain the attention of readers • It must have wide coverage at least cost. Advertising appears effective in increasing the volume purchased by local buyers but less effective in winning new buyers. Support of personnel selling 3.

journey. Generally. Here the massage reaches the audience indoors when it is easy and interceptive mood because house is the resting place for inmates for relax. park visit etc.. Rajiv Gandhi Institute Of Technology-Bangalore. Page 43 .V program or cinema program in video etc. It covers all forms of printed advertisements delivered directly to the prospective customers instead of indirect distribution like newspapers and magazines. magazine. sightseeing. T. almost all people go out on some purpose or other-office walk. The proper selection of the medium. This media represents the use of those vehicles by the advertisers that carry the message right into the houses or indoors of the audiences. A medium is the carrier of advertising message. Outdoor advertising media:Outdoor advertising passes the message to those people who are moving audience. it is known as indoor advertisement.Effectiveness of sales promotion ADVERTISING MEDIA:Medium is a means through which the advertising message is conveyed to the consumers. Rather the message is placed in strategic places exposed to moving audience. KINDS OF MEDIA:Indoor advertising media:When advertising is made through newspapers.This advertising message is delivered to the audience like print and broadcast media. so that people can get the message at home. It is the means to deliver the advertising message. radio. The advertiser contacts customer and keeps a close touch with them through mail advertising. Each advertiser has good many media for his selection. This outdoor advertising has the best effects of advertising. by which the message is to be conveyed. Direct mail advertising: The object of direct advertising is to create a direct contact with the customers. must achieve the pre-determined goals. The advertiser can keep a close touch with the customers or the public who are supposed to have interest in his products.

you don't want to inundate your stakeholders with information so make the most of your message E -MAIL MESSAGES – These can be wonderful means to getting the word out about your business. then the magazine can be very useful because it already focuses on your market and potential customers. Contact a reporter to introduce yourself. Reporters are often on the lookout for new stories and sources from which to collect quotes. Magazines -Magazines ads can get quite expensive. Page 44 . This is hinged on concepts of display. Find out if there's a magazine that focuses on your particular industry. asking them to fill out information cards. Brochures or flyers:Many desk-top publishing and word-processing software packages can produce highly attractive tri-fold brochures. Display is the systematic arrangements of sample of saleable products to catch the imagination as well as to attract the attention and notice of the lookers. Many email software packages will automatically attach this signature line to your e-mail. Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion Display advertising media:The object of this media is to increase the sales. etc. Brochures can contain a great deal of information if designed well. Direct mail – Mail sent directly from you to your customers can be highly customized to suit their nature and needs. Keep the list online and up-to-date. if you prefer. It demonstrates directly about the product by presenting them than by telling and selling the points directly. If there is one. You may want to build a mailing list of your current and desired customers. Design your e-mail software to include a "signature line" at the end of each of your e-mail messages. Consider placing an ad or writing a short article for the magazine. This should be used carefully and it can incur substantial cost. Notice mailings that get returned to you. Mailing lists can quickly become out-of-date. and is becoming a common method of advertising. Collect addresses from customers by noticing addresses on their checks.

Online discussion groups and chat groups – As with e-mail. these are often forgotten in lieu of major newspapers. But think of how often you've actually noticed posters and bulletin boards yourself. A major consideration with radio Rajiv Gandhi Institute Of Technology-Bangalore. for example. Advertising can get quite expensive. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively. Posters and bulletin boards – Posters can be very powerful when placed where your customers will actually notice them. always check with the moderator to understand what is appropriate. Note. Newspaper are often quite useful in giving advice about what and how to advertise. Radio announcements – A major advantage of radio ads is they are usually cheaper than television ads. You can get your business in the newspaper by placing ads. yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. however. Page 45 . and many people still listen to the radio. Consider using a consultant for the initial design and layout. Newspapers (neighborhood) – Ironically. writing a letter to the editor or working with a reporter to get a story written about your business.this depends on the buying habits of your customers. When you join a group. you can gain frequent exposure to yourself and your business by participating in online discussion groups and chat groups. when in their cars. Newspapers (major) Almost everyone reads the local. Note that some businesses and municipalities have regulations about the number of size of posters that can be placed in their areas. . major newspaper(s). the length of ads and when they are put on the air. Your best bet is to place the posters on bulletin boards and other places which your customers frequent. and always refresh your posters with new and colorful posters that will appear new to passersby. Ads are usually sold on a package basis that considers the number of ads. Know when to advertise -.Effectiveness of sales promotion Newsletters – This can be powerful means to conveying the nature of your organization and its services. that many groups have strong ground rules against blatant advertising.

In your article. is bolded. etc. promoting the Website (via various search engines. Yellow pages – The Yellow Pages can be very effective advertising if your ads are well-placed in the directory's categories of services. Television ads -Many people don‟t even consider television ads because of the impression that the ads are very expensive. the number of ads. an online store for ecommerce). Now. that is. in a large box on the page. Businesses are developing Web pages sometimes just to appear up-to-date. including getting a computer. They are more expensive than most of major forms of advertising. designing and installing the Website graphics and other functions as needed (for example. They usually have special packages where you get a business phone line along with a certain number of ads. advertising and promotions on the World Wide Web are almost commonplace. getting an Internet service provider. directories. etc. Page 46 . However. Editorials and letters to the editor – Rajiv Gandhi Institute Of Technology-Bangalore. Promotional Activities through the Media (Reporters. Telemarketing – The use of telemarketing is on the rise. businesses might find good deals for placing commercials or other forms of advertisements.) and maintaining the Website.) Articles that you write – Is there something in your industry or market about you have a strong impression? Consider writing an article for the local newspaper or a magazine. etc.Effectiveness of sales promotion Ads is to get them announced at the times that your potential customers are listening to the radio. use the opportunity to describe what you're doing to address the issue through use of your business. Using the Web for advertising requires certain equipment and expertise. and the name of your business is descriptive of your services and/or your ad stands out (for example. with the increasing number of television networks and stations. the length of ads and when they are put on the air. Television ads usually are priced with similar considerations to radio ads. Web pages – You probably would not have seen this means of advertising on a list of advertising methods if you had read a list even two years ago.). buying (usually renting) a Website name. Newspapers. The phone company will offer free advice about placing your ad in the Yellow Pages.

. T-shirts. etc. where. Networking – Spread the word to peers. they explain who. Page 47 . The kit usually includes information about your business. suppliers. consultants. etc. Presentations – Rajiv Gandhi Institute Of Technology-Bangalore. what. to make it easier for the reporter to develop an announcement or story. it get included in the newspaper. Other Promotional Activities and Events Annual reports – Disseminate these to key stakeholders. Novelties – It seems more common to find ads placed on pens and pencils. etc.g. challenges and financial status. etc. they're ripe with information if they include an overview of your year's activities.g. e. clients. These can be powerful means of advertising if indeed current and potential customers see the novelties. pictures. This condition often implies additional costs to mail novelties. some include pictures.Effectiveness of sales promotion Often. e. Collaboration or strategic restructuring If you‟re organization is undertaking these activities. coffee cups. Usually. these PSAs are free. etc. quotes. information about your products.. program providers are experts at their service and understanding a particular need in the community. so staff should regularly offer articles (of about 200 to 900 words) for publication. Public service announcements (PSA) s – Many radio and some television stations will provide public service announcements for nonprofit efforts. educators. professional organizations and those with whom you interact outside the organizations. accomplishments. why and when. celebrate it publicly. commentary from happy customers. newspapers often take strong interest in information about these needs. Press releases or news alerts -They alert the press to a major event or accomplishment and requesting. print T-shirts. Press kits – This kit is handy when working with the media or training employees about working with the media.

Yet. sales. the company has adopted a few trade push methods for growth and judiciously applied is funds towards sales promotion as there were severe cash crunch. and can include.Recent Movement in Marketing. Face book. MySpace and YouTube.. conventions. Find ways to give even short presentations. Likewise. e. granting a special award.after all.Effectiveness of sales promotion You‟re probably an expert at something. an open house.Social networking involves a variety of online tools that can be used by people and organizations to quickly share a great deal of information at very little cost. These tools attract brand switchers who can be lured by offering premium and product at lower prices. What seem as short. Special offers – We see these offers all the time. They include. Twitter. etc. sweepstakes. e. The trade push method proved beneficial because these methods give company a certain guarantee the customer off takes through the working capital required becomes relatively high when compared to other method of concentration on consumer pull by way of advertising campaign. discounts. for example. Advertising and Public Relations. trade shows. Special events – These tend to attract attention. etc. for example. The following are the sales promotion tools adopted by the KSE Ltd: Hoardings Sponsorships Rajiv Gandhi Institute Of Technology-Bangalore. coupons. Social Networking (Online). seminars. It‟s amazing that one can send out 500 brochures and be lucky to get 5 people who respond. Page 48 . Many people are now hearing of some of those tools.g. that's what marketing is all about! SALES PROMOTION ACTIVITIES IN KSE:In a consumer market to attract consumers and acquire market share. announcing a major program or service or campaign. etc..g. informal exchanges can cultivate powerful relationships of interest and concern. the company is adopting more sales promotion tools in their marketing strategies. you can give a presentation to 30 people and 15 of them will be very interested in staying in touch with you. Chamber of Commerce meetings. Experts are asserting that social networking is a must for people and organizations wanting to share information with others -. Relationships with key stakeholders – Identify at least one representative from each major stakeholder group and take them to lunch once a year. at local seminars.

Page 49 . and cable network Trade shows Exhibitions Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion Glow sign Boards Shape boards Vehicle Paintings Incentives to traders Plant visit by school children Door to door campaigns Mobile Quality testing Vise coolers Point of purchase material Banners Calendars Greetings Other awareness program-campaigns Cycles to delivery boys Contests/Quiz competition etc Other avenues Gifts to Institution Milk bags translation Gifts to agents Dealers/consumer contacts Fixture for parlors Media Press Ads Advt.

22 %watch print media. it shows that most of the people prefer electronic media to watch advertisements Rajiv Gandhi Institute Of Technology-Bangalore. 15% watch banners ND 11% of them watch wall paintings.Effectiveness of sales promotion Table: 1 Showing media habits Response Print media Electronic media Wall paintings banners 22 52 11 15 Media Habits 15% 11% 22% Print media Electronic media 52% Wall paintings banners Interpretation: According to my survey out of 100. Page 50 . 52% have the habit of watching electronic media.

Page 51 . Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion Table 2: How did you come to know about KSE products? Response Word of mouth Retailers Print media Electronic media 28 15 35 22 35 30 respondents 25 20 15 10 5 0 Word of mouth Retailers Print media Electronic media Series1 According to my survey 35% of the people know about KSE products through print media. 28% of the people from word of mouth.15% from retailer and remaining 22% through electronic media.

Page 52 .Effectiveness of sales promotion Table 3 Has KSE Ltd advertisements brought change in your perception on KSE products? Response Yes 68 no 32 32% Yes 68% no 68% of the respondents say that advertisements have brought change in their perception of KSE products and 32% say there perception has not changed Rajiv Gandhi Institute Of Technology-Bangalore.

second rank to price of the product. Page 53 .Effectiveness of sales promotion Table 4 What factor you consider while purchasing cattle feed products? RESPONDENTS RANKS Quality Price advertisement availability Brand name 1 2 4 3 5 6 5 4 3 2 1 0 RANKS SCALES According to my survey respondents have ranked their priorities while purchasing for quality first. 3rd for the availability of products.4 th for the advertisement and last is for brand name. Rajiv Gandhi Institute Of Technology-Bangalore.

Page 54 .32% are just satisfied.Effectiveness of sales promotion Table 6 How satisfied are you with the promotional activities of the brand KSE Response Very satisfied 15 Satisfied 32 Average 51 poor 2 60 50 RESPONDENTS 40 30 20 10 0 Very satisfied Satisfied SCALES Average poor Series1 Interpretation: According to my survey 15 % of the people are very much satisfied from the promotional activities of KSE products. 51% are moderately satisfied(average)and remaining 2 % of them are dissatisfied. Rajiv Gandhi Institute Of Technology-Bangalore.

41% of the people disagree. Page 55 . 21% of the people agree and remaining 15% of them neither agree nor disagree. Rajiv Gandhi Institute Of Technology-Bangalore. 18% strongly disagree. Response Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree 18 41 15 21 5 45 40 35 30 25 20 15 10 5 0 Strongly Disagree Neither disagree agree nor disagree SCALES Agree Strongly agree RESPONDENTS Series1 Interpretation: Only 5% of the people strongly agree that they are very much satisfied regarding the information provided by the company through advertisement.Effectiveness of sales promotion Table 7 Does KSE’s advertisements convey you enough required information about its products?.

24% of them have just heard about it.18% of them are familiar ND remaining 9% are very much familiar .Effectiveness of sales promotion Table 8 Are you familiar with KSE Ltd products other than cattle feed products?. Page 56 . Response Very familiar 9 familiar 18 Only heard 24 Non familiar 49 50 45 40 35 30 25 20 15 10 5 0 Very familiar familiar Only heard Non familiar RESPONDENTS Series1 SCALES Interpretation: From this survey we could find that 49% of the people are not at all familiar with cattle feed products of KSE. Rajiv Gandhi Institute Of Technology-Bangalore.

Rajiv Gandhi Institute Of Technology-Bangalore. 5% campaigns and remaining 3% prefer wall painting.8% of people prefer banners. Page 57 .30% prefer print media. Response Banners Campaigns Wall painting Electronic media Print media 8 5 3 54 30 60 50 RESPONDENTS 40 30 20 10 0 Banners Campaigns Wall painting SACLES Electronic Print media media Series1 Interpretation: 54% of the people prefer electronic media for promo tint KSE products.Effectiveness of sales promotion Table 9 According to you which media is more suitable for promoting KSE products to enhance sales?.

Effectiveness of sales promotion Table 10

Are you satisfied with the packaging of the KSE products? Response
Very satisfied Satisfied Average poor 10 62 24 4

70 60 RESPONDENTS 50 40 30 20 10 0 Very satisfied Satisfied Average poor Series1

SCALES

Interpretation: 10 % of the people are very much satisfied with the packaging of the KSE products,62% are just satisfied, 24% are average and remaining 4% are completely dissatisfied.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 58

Effectiveness of sales promotion

Table 11

Do you believe company advertisements as catching?. Response Yes no 62 38

38% Yes no

62%

Interpretation: Majority of the people (62%) believe that the advertisement given by KSE is attractive and 38 believe is not catching

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 59

Effectiveness of sales promotion

Table 12

Rank the following company advertisements? Response News paper Television Radio Magazines 1 4 3 2

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 60

31% suggest through coverage. Response Message Coverage media 11 31 58 60 50 RESPONDENTS 40 30 20 10 0 Message Coverage SCALES media Series1 Interpretation: According to the survey 58% of the people say that company needs to improve its promotional campaign through media. Page 61 . and remaining 11% of them believe promotional campaigns must be done on messages Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion Table 13 What are the areas where the promotion campaign need to be improved?.

Effectiveness of sales promotion Table 14 How do you rate promotional activities in KSE Ltd? RANKS 5 4 3 2 1 RESPONDENTS 15 42 26 13 4 RANKS 5 4 RANKS 3 2 1 0 15 42 26 RESPONDENTS 13 4 RANKS Interpretation: From this survey we could find out how respondents rank KSE Ltd promotional activities. and remaining 15% ranked 5th.26% have ranked 3rd.13% of them have ranked 2nd . 42% ranked 2nd. Rajiv Gandhi Institute Of Technology-Bangalore. Page 62 . Only 4% of the people rank 1st for the promotional activities.

remaining 18% by information provided in the advertisement about the products.16% are impressed by execution.Effectiveness of sales promotion TABLE 15 What part of KSE advertising strategies impressed you? Response Picturization Execution Information 66 16 18 70 60 RESPONDENTS 50 40 30 20 10 0 Picturization Execution SCALES Information Series1 Interpretation: In KSE Ltd advertisement strategies 66% of people are impressed by picturizatio. Page 63 . Rajiv Gandhi Institute Of Technology-Bangalore.

Page 64 . 10% by watching advertisements and 6% by their own decision to purchase the product.58% of the people purchase based on reference .Effectiveness of sales promotion TABLE 16 Which of the following factor made you to purchase KSE products repetitively? Response Advertisements Reference Own decision Price and brand 10 58 6 26 60 RESPONDENTS 50 40 30 20 10 0 Series1 SCALES Interpretation:There are 26% of the people purchasing the KSE products based on price and brand. Rajiv Gandhi Institute Of Technology-Bangalore.

36% of the people believe it‟s real. Page 65 . 15% of them believe its fake and remaining 18% of them tell its very much real Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion TABLE 17 How real/fake do you consider the KSE advertisement? Response Very real Real Fake Can’t say 18 36 15 31 40 35 RESPONDENTS 30 25 20 15 10 5 0 Very real Real SCALES Fake Can’t say Series1 Interpretation: According to the survey 31% of the people have no idea is the advertisement real or fake.

Rajiv Gandhi Institute Of Technology-Bangalore.Effectiveness of sales promotion Findings: The research study was to understand effectiveness of sales promotion activity and so during the study of sample of 100 places Kerala out of which 100 respondents were responded from this I was able to give the following findings. availability of product then advertisement and brand image.  It was found that people purchase cattle feed products by giving preference 1st to quality then price.  100% of respondents were aware about KSE products but 49% were not familiar with the cattle feed products.  Promotional activity of the company is not that good because 51% of the people are moderately satisfied.  68% of the people have changed their perception about KSE products through advertisements given by the company.  KSE has a good name in the market and it covers majority areas of Kerala in its distribution  Majority of the people have known KSE products through print media and then through electronic media. Page 66 .

 People are very much satisfied relating to packaging done on KSE ltd.  People have purchased KSE products based upon references.  Picturization is the effective advertisement strategy to attract customers.Effectiveness of sales promotion  Majority of the people disagree that KSE Ltd does not convey enough information about the advertised products. price and brand.  Due to lack of promotional activities in cattle feed products 49% of people are familiar about cattle feed products of KSE and 24% have just heard about it.  Majority of the respondents prefer electronic media for advertisements than any other were as KSE ltd is using more of print media for advertisements. Rajiv Gandhi Institute Of Technology-Bangalore. Page 67 .

 Promotional campaign must be improved I media.  It is better to add extra more advertisement about KSE products. Page 68 .  The information about products in advertisement should be increased. to what extent customers are aware about KSE products among the customers in Kerala.  According to the survey customers intended to advertise more through television. So the study was conducted to understand.Effectiveness of sales promotion Suggestions Brand awareness and sales promotion plays a significant role in marketing and also in the minds of customers.  Better to advertise in electronic media more than other media. Rajiv Gandhi Institute Of Technology-Bangalore. Based on the analysis and findings I was able to give the following suggestions.

Effectiveness of sales promotion CONCLUTION In this study. Rajiv Gandhi Institute Of Technology-Bangalore. And it clears that and how promotional activities are very important to promote the product in the market and maintaining the consistence in the market. and it is very toughest job. Page 69 . The main reason for this is quality product offered to the consumers. it has been observed that KSE brand created a very good brand image among the minds of the consumers. If KSE adopt the new creative ads and more promotional activities to enhance the sales it really works in the mind of the customer. Building the good impression about the product in the customer mind is difficult but Customer has the good impression on the KSE products because of its quality products. and it helps to increase the more shares in the market. The importance given for the promotion activities for the KSE products is comparatively low but it has the good brand name in the market as well as in the perception of the customers.

Sign up to vote on this title
UsefulNot useful