You are on page 1of 69

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.


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 70s ( 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


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

Effectiveness of sales promotion KSE is in the oil extraction Industry for the past 31 years. It is having two solvent plants with processing capacity of 100 tonnes per day. The Company has also a chemical oil refining plant of 20 tonnes per day. 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. This is the sixth time in a row that the company is being selected for this most coveted award. The Company is having six Units at different locations. The relation with the labour Unions of all these Units is very warm and cordial. KSE, 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. The company has already identified 6 acres of land in the KINFRA Small Industries Park, Koratty for this expansion. In the first phase, 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. Both these plants will be of international standard using most modern technologies, where the process loss is kept to the minimum. The project will generate direct employment to 125 and indirect employment to another 500 numbers. In the second phase, a 100 MT per day oil fractionation unit will also be added. Milestones:

1972 Solvent plant commences operation. 1976 Mixed cattle feed production begins. 1987Cattle feed production reaches 180 tonnes. Introduction of computers in the factory and office.

1988 A new mixed cattle feed plant starts operation at Swaminathapuram, in Tamil Nadu with a daily production capacity of 180 tonnes.

1989 A solvent unit with a capacity of 120 tonnes per day commences operation at the Tamil Nadu plant.

1990 Introduction of KS Supreme Pellets , a bypass protein cattle feed in the market.
Page 4

Rajiv Gandhi Institute Of Technology-Bangalore.

Effectiveness of sales promotion

1991Opens its Palakkadu branch. 1992 Cattle feed manufacturing begins in third party units. 1993- Enters export market. 1994 - Introduction of feed supplements KS Forte. Public issue and listing of shares. 1995- Vegetable oil refining plant commissioned. KS Supreme - Sunflower Refined Oil launched .Calicut branch opens.

1996- 240 TPD cattle feed commences at Vedagiri, Kottayam Dist., Kerala. 1997 - Company renamed as KSE Ltd. 1998- Fourth feed production unit at Palakkadu. Launches dairy project. 1999- A modern childrens' park and information centre has been completed at Irinjalakuda for the benefit of the public. Company introduces KS Deluxe Plus the new pelleted feed in HDPE bags for Kerala market.

2000- Company starts production and distribution of milk and milk products from Konikkara and Thalaysthu Dairy Units.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 5

Effectiveness of sales promotion

b. Nature of business carried Manufacturer of cattle feed, dairy products and cattle feed supplements.

c. Vision, mission and quality policy. Vision:

We shall Endeavour to maintain leadership through quality products, explore new avenues in product development and marketing, create a stronger bond between the management, Workforce, dealers and customers ,contribute to social development and rural enlistment, and constantly strive for excellence in all spheres of our activities.

Mission: To produce, manufacture, extract ., purchase, refine, prepare, import ,export, 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 . To acquire, erect, construct, establish, operate and maintain, oil mills .extractions plants, ghee plants and workshops. To purchase. For the purpose of business of the company, oil expellers, disintegrators. Filter process, oil naturalizing, oil deodorizing, washing, dyeing, beaching, filtration and hydrogen plants, boilers tank engines, electric motors, pipes, shifting tin plants, punch machines and other machines. To purchase, manufactures, treat, sell or otherwise deal in oil cakes, washing soaps, toilet soaps, hair oil and tinned products Quality policy: Manufacture quality products to the satisfaction of our customers. And meet the quality standards. KSE Limited an ISO 9001-2000 certified company.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 6

Effectiveness of sales promotion d. Products profile:

In the beginning stage of KSE limited had only solvent units. 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. At present it is marketed in Kerala, Tamil Nadu and Gujarat.

K.S. Cattle feed in two 1. Mash form 2. Pellets form

In Mash form contains 1. K.S. Super 2. K.S. Ordinary 3. K.S. Special

In Pellets form contains 1. K.S. Deluxe Pellets 2. K.S. Deluxe plus pellets 3. K.S. Supreme pellets

K.S. also includes two supplementary products 1 K.S Forte 2. K.S Mineral mixer K.S. also started producing milk products. Various other products like 1. K.S Milk 2. K.S. Ghee

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 7

Effectiveness of sales promotion 3. K.S Curd 4 Butter milk 5. Vesta Ice cream 6. De-Oiled Coconut Cake 7. Solvent Extracted Coconut

e. Area of operation. Since 1972 it has its customers majority in south India. . At present it is having its operations in Kerala, Tamil Nadu and Gujarat. (Nationally)

f. Ownership Pattern. In KSE, the ownership pattern can be easily identified. Hence, the company is fully governed by the government of KERALA. They are following AUTHORITARIAN STYLE of ownership pattern. The company is fully centralized in the hands of government. 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.

No. of Shares(Mn) 1.04 0.00 0.00 0.03 0.58 1.55 3.20

% Holdings 32.4 0.0 0.0 0.9 18.3 48.4 100

Page 8

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. Infrastructure Facilities

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. The company has 73 acre of land in Kerala , and has 5 major plants in Palakkadu, Kottayam, Tamil Nadu and Edayar. The company is using German technology in production of their

products. It has its own Research Divisions in Tamil Nadu , National Library in Dairying, Biotechnology Centre, Computer Centre, Dairy Plant, And a park open to public

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 9

Effectiveness of sales promotion h. Achievement and awards 1. Best productivity performance for Cattle feed in India Award from National Productivity Council continuously for Eleven Years 1996-97 to 2005-06.

2. The solvent Extractors Association of India-SEA Award for highest processor of coconut cake in India, since institution of the award continuously for 20 years including 2009-10.

3. Kerala state productivity Council award. 4. Top Cattle feed Award for aflatoxin free feed from The Indian Association of Veterinary Pathologists (IAVP) and Kerala Agricultural University.

5. Tamil Nadu productivity Council Safety Award. 6. Animal Nutrition Society of India Award for Companys contributions for propagation of balanced compound livestock feed in India.

7. Industry Excellence Award from the Indian Society for the study of Animal Reproduction for the year 2001.

8. Entrepreneur Award from the College of Veterinary and Animal Sciences. - did not match any documents. 9. Winner of S.E.A. National Awards and State Productivity and Safety Awards for many years. 10. SEA AWARD - received for 16 years consecutively. 11. Front-ranker in mixed cattle feed production in India. 12. No: 1 in processing coconut oil cake through solvent extraction in India
Rajiv Gandhi Institute Of Technology-Bangalore. Page 10

Effectiveness of sales promotion j. Work flow model.

Raw materials


MIXING Marketing Mash





Rajiv Gandhi Institute Of Technology-Bangalore.

Page 11

Effectiveness of sales promotion

K. Future growth and prospects:

1. To produce, manufacture, extract, purchase, refine, prepare import, export, 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. 2. To acquire, erect, construct, establish, operate and maintain oil mills, extraction plants, ghee plants and workshops. 3. To purchase for the purpose of business of the company, oil expellers, disingrators, filter press, oil neutralizing, washing, dyeing bleaching, filtration and hydrogen plants, punch machines and other machines.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 12

Effectiveness of sales promotion MCKINSEYS 7S FRAME WORK

The 7-s model is better known as McKinesys 7-S model. This is because the two persons who developed this model, Tom Peter and Robert Waterman, have been consultants at McKinsey &co. At that time. 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).

The frame work rest on the proposition that effective organizational change is best understood in terms of the complex relationship between strategy, structure, system, style, skills, staff, and shared values. The proposition of the 7-s model suggests that there are multiple factors which influence an organizations ability to change and its proper mode of changes. Since the variables are interconnected, significant progress cannot be made in one area unless corresponding progress is made in other areas too.
Rajiv Gandhi Institute Of Technology-Bangalore. Page 13

Effectiveness of sales promotion Description: The Hard Ss:

Strategy: Actions, a company plans in response to or anticipation of changes in its external environment. The concept of strategy includes purposes, mission, objectives, goals, and major action plan and policies.

Structure: is an additional to the organizational tool kit. 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. The systems may called the infrastructure and include sub-systems relating to production planning and control, cost accounting procedure, capital budgeting, recruitment, etc.

The Soft Ss Style/Culture: the culture of the organization, consisting of two components. Organizational culture The dominants values and beliefs and norms, which develop overtime and become relatively enduring features of organization life. Management style: More a matter of what managers do than what they say; how do companys managers spend their time? What are they focusing attention on?

Staff: The people or human resource management- process used to develop managers, specialization process; 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.

Page 14

Effectiveness of sales promotion Skill: The distinctive competencies what the company does best, ways expanding or shifting competencies in terms of engineering skills, or competence in the area of new product development customer service, quality commitment, market power and so on. Shared values: guiding concepts, fundamental ideas around which a business is built- must be simple, usually at abstract level, having great meaning inside the organization even though outsiders may next see or understand them.

7s with reference to the company.


In the context of 7-s framework, structure is an addition of the organizational tool kit. It is comparable with the superstructure of organization, which indicates to why extent the activities are specialized and the ways in which the organizational tasks are integrated and coordinate.

It is the basis for a specialization and co-ordination influenced primarily by strategy and organization activities are grouped and co-coordinated, the relationship between the personnel in the organization is formalized, intentional structure of roles and positions in the organization.

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.

The company system involves the grouping of all functions into major functional departments and entrusting each department to one executive. The personal manager may be entrusted with personnel matters relating to the entire department, the marketing manager with the responsibility for marketing of all the products of all the plants and so on.
Rajiv Gandhi Institute Of Technology-Bangalore. Page 15

Effectiveness of sales promotion

Organizational structure


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

Effectiveness of sales promotion


The concept of strategy includes purposes, mission, objectives, goals and major action plans and policies. The 7-s framework emphasizes that in practice, the development of strategies posses less of a problem than their execution. Strategy refers to the future plan of action the organization takes to achieve its goals. Following a particular strategy which is unique will make the Organization to get more

customers and more profits. In the current market conditions where price competition is high, it is very important that the prices of goods are competitive. The services provided should be top class.

A company follows a market development strategy to expand the potential market through new users or new uses. New users can be found in new geographic segments, new demographic segments. Another way is to expand sales through new uses for the product. The two most used marketing development approaches are attracting customers of competing firms and branching out to an unserved market segment. 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 scrutiny would not be complete without an evaluation of both the type of customers the company has and what said customers are purchasing. This data is used to create a cost efficient and encompassing market development strategy.

3. System
Rules, regulation and procedures constitute system in 70s frame work, which complement the organizational structure. The system may be called the infractura and include subsystem relating to production planning and control, cost accounting procedures, capital budgeting, recruitment, training and development, planning and budgeting, performance evaluation etc.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 17

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. 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 internal control system is being continuously reviewed by the management and adequate steps are taken for improvement, wherever felt. This system plays an important role in preventing and detecting fraud and protecting the organization's resources, both physical (e.g., machinery and property) and intangible (e.g., reputation or intellectual property such as trademarks). 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, if any, are being discussed in audit committee meetings.


Style is another variable, which may determine the effectiveness of organization changes efforts. 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, reporting relationship and aspects of organizational culture. The Company is having the top down style of authority. It is an Authoritarian Organization. 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. Managers work together as team to solve day to days problem in a significant manner. The company style of the management can be described as to be participative in nature.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 18

Effectiveness of sales promotion

5. 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, unless the employee puts his 100% efforts the company will not succeed in achieving its goal. Therefore, selection of right kind of person to perform the task is an important activity in the organization. Personal Department is the main and most important department of a manufacturing concern. The total work force in the organization is 1430. The workers of the KSE Ltd.comes under the personal department, headed by the Personal Manager. The workers includes; Officers and Managers, office staff, technical workers and go down workers. TABLE SHOWING DIFFERENT CATEGORIES OF WORKERS IN KSE Ltd.

Officers & Managers Office Staff Technical Staff

610 200 465

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 19

Effectiveness of sales promotion

6. SKILLS: skills refers to the distinctive competence which reflects the dominant skill of an organizational, and may consist of competence in terms of engineering skills, or competence in the area of new product development, customer service, quality commitment, market power, and so on

It is the ability that a person requires to perform the tasks in the company. The skills differ from person to person and also it is based on the work. In Order to make the employees skilled the company takes necessary measures to provide training to them. MANAGERIAL SKILLS: Are being used in administration level and clerical. TECHNICAL SKILL: Are being used in Production level. NON-TECHNICAL SKILL: Are being used in staffs .

7. Shared values : Values are things that you would strive for even if they were demonstrably not profitable. These are the guiding concepts, fundamental ideas around which a business is built - must be simple, usually stated at abstract level. Have great meaning inside the organization even though outsiders may not see or understand them.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 20

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

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 21

Effectiveness of sales promotion Strength Reputation and brand image of the KS for the quality of its products. Continuous profit making company thus financially healthier organization. A company which is listed in the three stock exchanges in the country. Location advantages being adjacent to National Highway. Dairy industry is forward integration of other two segments and thus can service the customers of those two segments. Majority of the milk societies in the Thrissur District are dealers of KSE Ltd., for cattle feed, poultry feed and duck feed.

No:1 in processing coconut oil cake through solvent extraction in India

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 22

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. Lack of public relations programs. No veterinary programs are conducted. Promotional measures are non-aggressive. Doubts about international competitiveness. 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.

OPPORTUNITIES Milk consumption habits are developed among the consumers hence there is huge demand in present market requirement for milk products. Acceptability of the feed and its quality standards in the market. Availability of talented technical and marketing personnel. Product diversification is to be explored Development of milk based sweet industry.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 23

Effectiveness of sales promotion

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

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 24

Effectiveness of sales promotion Analysis of financial statement Working capital: it has increased to 8.5% compared to last year that shows the positive trend this is due to increase in turnover and volume of operation. since current assets are more than current liabilities this shows that the enterprise has its enough working capital to meet its liabilities.

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 ideal current ratio is 2:1.the company current ratio for year 2010 was 2.63 that was decreased to 2.36 this indicates that liquidity of business is showing positive trend. Current ratio of above shows a satisfactory short term liquidity position.

Quick ratio: is the real index of liquidity or short term solvency of an organization. The standard quick ratio is 1:1 as quick asset can be realized quickly without much loss. The QR of the company in the year 2010 was .94 that was decreased to .38 in 2011. Since quick ratio is less than the standard the quick assets may be relished by incurring little loss.

Current assets turnover ratio: this reveals the number of times the current asset of the company is utilized in the trading transaction. In 2010 ratio was 11.31 and 2011 it was 11.65. That is showing increasing trend because the current assets utilization good is satisfactory.

Cash or bank balance ratio: here the ratio in 2010 was .26 and in 2011 it was .088 and it is showing the decreasing trend. This variation tells us that proportion of cash and bank balance that held by company to current assets which is satisfactory. There is lot of fluctuation from previous to current year. The companies cash and bank balance reflects the decreasing liquidity of the company.

Net Sales: the company has achieved net sales of Rs 8748663/- in 2011 that was Rs. 5866951 in 2010. There is increasing in the sales due to increase in volume of operation.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 25

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 449.81 lakhs compared to s 827.27 lakhs in previous year.

Dividend: considering the profit for current year dividend is paid 100% to the share holders.

Income: in the company total income in the year 2010 was Rs. 3728655659/- that was increased to Rs. 4552356099 in 2011. This is due to increase in sale

Expenditure: the expenditure in 2010 was Rs. 3602041882 that was increased in the year 2011 Rs. 4485625412.

Reserves and surplus: the total reserves in 2010 war Rs. 293744846/- that was increase in year 2011 to Rs.301534348.

Financial and operational performance: The total turnover during the year review improved by 22% compared to immediate preceding year. The volume wise cattle feed sales is 12%.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 26

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. In this competitive world this kind of an approach is extremely indispensable. Students coming out, as MBAs would be ready to have an interface with the corporate world with determination, confidence and competence. Todays corporate world demands for all these qualities, without which facing the corporate world is a difficult task.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 27

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. 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. Hence due to this it is crucial analyze the promotional strategies of KSE Ltd and its competitors to penetrate the target market. 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. Through this study, 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. Study of effectiveness of sales promotion in KSE Limited

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 28

Effectiveness of sales promotion Objectives: 1. To study consumer preferences with respect to sales promotion in KSE ltd

2. To examine tradeoffs, relative importance of different attributes while responding to a sales promotion offer.

3. To study the effect of sales promotions in the company.

4. To find out the reasons for low sales of the products.

5. To find out the effectiveness of promotional strategies of KSE Ltd.

6. To give suggestion in development of effective sales promotion.

7. To find out the measures to boost up sales.

8. To study the brand awareness of KSE Ltd and its products.

9. To know the customers response.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 29

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. In order to know the brand awareness of the KSE Ltd and its products .To study the reach of branding system and sales promotion program of KSE products among the consumers of the Kerala district.

Research methodology: The formidable problem that follows the task of designing the research project is known as the Research design. The design of quantitive research study includes the method for collecting the data. The sample design and construction of the data collection instrument. 1. 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. 2. Scope of the data: The scope of enquiry is limited to the study of topic concerned only. 3. Source of data: The data collected through primary data. A. Nature and type of enquiry: Non-official Non-confidential. B. Direct: There is 100 degree of accuracy. RESEARCH DESIGN A research design is the determination and statement of the general research approach or strategy adopted for the particular project. It is the heart of the planning. If the design adheres to the research objectives, it will ensure that the client need will be served. Research design is a plan structured and strategies of investigation. It is the arrangement of condition and analysis of data in a manner to combine relevance to the research purpose with economy in procedure. In order to achieve the objective it was necessary to talk to the customers and public to draws the conclusions regarding the objective.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 30

Effectiveness of sales promotion For visiting the customers and publics to collect the relevant information; a questionnaire has to be designed. The questionnaire was designed in such a manner to achieve the objective of the research. The sample size taken is 100 customers and publics.

TYPE OF RESEARCH In this project Descriptive Research has been used. Descriptive Research: This is kind of research structure which is concerned with describing the characteristics of the problem. 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. For this it is important to obtain the complete and actual information about the subjects. NATURE OF RESEARCH Quantitative type of research has been used. As all the data was based on numerical figures obtained in the survey. TYPE OF QUESTIONS The questions were self-administered, with a view to obtain maximum information from the respondent that is why the questions were straightforward. TYPE OF QUESTIONNAIRE The entire questionnaire was standardized and formalized. TYPE OF ANALYSIS As all the data found in the survey is totally numerically so the type of analysis was statistical. SOURCE OF DATA

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 31

Effectiveness of sales promotion 1. 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. 2. 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. In this method a questionnaire is given to the person concerned with question to answers the question and return the questionnaire. 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. 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. 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. Sample Population A survey of people who either own or plan to purchase laptop and on located in Kerala city only.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 32

Effectiveness of sales promotion Sampling Methods

The sampling method for the survey was random sampling. 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.

SECONDARY DATA COLLECTION The report mainly consists of a data from the primary source gathered the schedule of questions. Questionnaire is the formal tool of asking questions directly from respondents by which questions are asked. Information about the product is taken from various sources such as websites, newspapers etc.

Limitation of the study:

1. The study of promotional activity was conducted only in Kerala. 2. Limited response from respondent may not reveal the accurate picture as accurate data was not revealed by the respective respondents.
3. Study was conducted only for the period of 10 weeks only.

4. Some customers have been found to have biasness in their response because of good and bad experience with the KSE product. 5. Literacy rate of the people. 6. Customer and Consumers are different, and from end users we cannot collect data.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 33

Effectiveness of sales promotion THEORY CONCEPT

Introduction: PROMOTION:The word promotion, originates from the Latin word promovere, the meaning is to move forward or to advance an idea. The aim of production is sales. Sales and promotion are two different words and sales promotion is the combination of these two words. Sales promotion methods aim to capture the market and increase the sales volume. Sales promotion consists of a diverse of innovative tools, mostly short term, designed to stimulate quicker or greater purchase or particular products/services by the consumers are the trade. Today sales promotion has been accounted for 60% to 70% of the combined budget. Sales promotion expenditure has been increasing 12 annually compared with advertising in of 7.6%.Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trail and while a free management advertising service cements a long-term relationship with a retailer. Sales promotion often attracts brand switchers, because users of other brands and categories do not always notice or act on a promotion. Brand switchers are primarily looking for low price, good values or premiums. Sales promotions are unlikely to turn them into loyal brand users. In markets of high brand dissimilarity, sellers use incentive type promotions to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion yields faster responses in sales than advertising. 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, 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, demonstrations and non-recurrent selling efforts not in ordinary routine. MARKETERS TAKE SALES PROMOTION ACTIVITIES FOR THE FOLLOWING REASONS:Rajiv Gandhi Institute Of Technology-Bangalore. Page 34

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, groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products. Promotion and Society Marketers need to communicate, therefore need a medium to facilitate communication. TV Newspapers Radio Magazines Promotion Involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product marketing, pricing, and place.) Promotion is generally sub-divided into two parts: Above the line promotion:Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad Below the line promotion:All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. Sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, and trade shows The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 35

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

Effectiveness of sales promotion

Marketing has come a long way from the 4 Ps of yesteryear, and yet understanding this marketing mix is for your product or service remains very relevant today. The marketing mix serves as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign.

NINE ELEMENTS TO THE COMMUNICATION PROCESS Sender and Receiver Target Market are the major parties in the communication process. Last element is Noise in the system, more noise with non-personal communication Sender needs to know: What audiences they want to reach What responses they want. 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. make Sales Promotion easier (i.e. coupon redemption) 323 billion coupons were distributed 1993 nationally annually (3,200/household), only 2.3% are redeemed. 9000 trade shows containing 10 exhibits or more/year. New York auto show attracts more than a million people per year. $15-20 billion/year spent on point of purchase material in stores.

SALES PROMOTION OPPORTUNITIES AND LIMITATIONS Increase in sales by providing extra incentive to purchase. May focus on resellers (push), consumers (pull) or both.
Page 37

Rajiv Gandhi Institute Of Technology-Bangalore.

Effectiveness of sales promotion Objectives must be consistent with promotional objectives and overall company objectives. Balance between short term sales increase and long term need for desired reputation and brand image. Attract customer traffic and maintain brand/company loyalty. Reminder functions-calendars, T Shirts, match books etc. Impulse purchases increased by displays Contests generate excitement esp. with high payoffs.

LIMITATIONS Consumers may just wait for the incentives May diminish image of the firm, represent decline in the product quality. Reduces profit margins, customers may stock up during the promotion. Shift focus away from the product itself to secondary factors, therefore no product differential advantage.

MAJOR CONSUMER PROMOTIONAL TOOLS: Coupons: coupons are supplied along with a product. it is a certificate that reduces prices. Coupons can be mailed, enclosed in the packets or printed in the advertisements. Samples: free samples are given to consumers to increase the product. These are given to the people in the hope that they will buy the goods when they are satisfied with the sample. Money refund offers: if he purchaser is not satisfied with the product, a part or all of the entire purchasers money will be refused. Premium offer: it is a temporary price reduction, which increases the instinct of the buyers. Products are offered free or at a reduced cost as an inducement for purchasing. Contests: the customers are asked to state in a few words why they prefer a particular product. To enter, the consumer must purchase a product and submit the evidence with the entry forms to contests, for the winner attractive prizes are given in the form of cash or valuable articles. Demonstration: it is the instructions to educate the consumers in the manner of using products. It is arranges at the retail, store or in trade fairs. Price off offers: it stimulates sales during slump reasons. It gives a temporary discount to the customers.
Rajiv Gandhi Institute Of Technology-Bangalore. Page 38

Effectiveness of sales promotion

Dealers 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. Allowance: An allowance is an amount offered in return for the retailers agreeing to feature the manufacturers product in some way. 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. Dealers contest: This is an indirect way of boosting the sales. This type of contest is conducted at the level of retailers and wholesalers. Price deals: Apart from the regular discount, special discount are also allowed to dealers for a special quantity of purchased. Co-operative advertising: Dealers spend money in advertising manufacturers product with the consent of manufacturers.

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. If the sales force sells the product above the targeted sales, bonus is offered to them. Sales contests: A sales contest is a contest involving the sales force or dealers, aimed at inducing them to increase their sales results over a stated period, with prizes going to those who succeed.

Specialty advertising: It consists of useful, low cost items given by sales people to prospectus and customers bearing the givers name and address and sometimes an advertising message. Salesmen meeting and conference: the idea behind this is to educate, inspire and reward salesmen. Encouragement is given to them during the discussion.

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. Brands are drivers of competitive edge. A successful brand is a name, symbol, design, or some combination, which identifies the product of a particular organization as having a sustainable differential advantage BRANDING:Rajiv Gandhi Institute Of Technology-Bangalore. Page 39

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, is known as branding. Branding gives seller the opportunities to attract profitable set of customers. A brand loyalty gives seller some protection from the competitors and greater control in market program. Some importance of branding is as follows: Branding helps the seller segment market each formulated differently and aimed at specific benefits seeking segment. 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, which appears in the form of a symbol, design or distinctive, coloring or lettering it is designed to easy identification of a product Brand should suggest something about the product, purpose, 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.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 40

Effectiveness of sales 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. It may be part of package, or it may be a tag attached directly to the product. 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. Packing means wrapping of goods before they are transported or stored before delivered to a customer. Packaging an activity, which is concerned with protection economy convenience and promotional consideration? The wrapper of the container is celled package. ADVERTISING:Advertising as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertisement is that activity by which visual oral messages are addressed to the general public the aim is to persuade people to buy more. It creates desire for new products the success of advertising greatly depends upon effective advertising program. Its purpose is to inform or influence then in order to increase of the sales. According to Philip Kotler, advertising is non-personal form of communication conducted through paid media under clear sponsorship. ADVERTISING IS MAINLY FOR THE PURPOSE OF:-

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 41

Effectiveness of sales promotion 1. Promotion of new product 2. Support of personnel selling 3. To create brand patronage 4. for dealers support 5. Advertising appears effective in increasing the volume purchased by local buyers but less effective in winning new buyers.

KINDS OF ADVERTISING:Product Advertising:-It aims at selling a particular product. A particular product with its brand is promoted through 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.

Commercial Advertising:-May be trade advertising relation to trade industrial advertising, relation to industrial professional, relating profession form, relating to farm products Non-commercial advertising:-Non-profit organizations adopt this type of 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; it eats away the funds, the absence of correct decision will waste the money without result. 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.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 42

Effectiveness of sales promotion

ADVERTISING MEDIA:Medium is a means through which the advertising message is conveyed to the consumers. The proper selection of the medium, by which the message is to be conveyed, must achieve the pre-determined goals. A medium is the carrier of advertising message. It is the means to deliver the advertising message. Each advertiser has good many media for his selection.

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

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 43

Effectiveness of sales promotion

Display advertising media:The object of this media is to increase the sales. This is hinged on concepts of display. 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. It demonstrates directly about the product by presenting them than by telling and selling the points directly.

Brochures or flyers:Many desk-top publishing and word-processing software packages can produce highly attractive tri-fold brochures. Brochures can contain a great deal of information if designed well, and is becoming a common method of advertising.

Direct mail Mail sent directly from you to your customers can be highly customized to suit their nature and needs. You may want to build a mailing list of your current and desired customers. Collect addresses from customers by noticing addresses on their checks, asking them to fill out information cards, etc. Keep the list online and up-to-date. Mailing lists can quickly become out-of-date. Notice mailings that get returned to you. This should be used carefully and it can incur substantial cost, 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. Design your e-mail software to include a "signature line" at the end of each of your e-mail messages. Many email software packages will automatically attach this signature line to your e-mail, if you prefer. Magazines -Magazines ads can get quite expensive. Find out if there's a magazine that focuses on your particular industry. If there is one, then the magazine can be very useful because it already focuses on your market and potential customers. Consider placing an ad or writing a short article for the magazine. Contact a reporter to introduce yourself. Reporters are often on the lookout for new stories and sources from which to collect quotes.
Rajiv Gandhi Institute Of Technology-Bangalore. Page 44

Effectiveness of sales promotion Newsletters This can be powerful means to conveying the nature of your organization and its services. Consider using a consultant for the initial design and layout. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively. Newspapers (major) Almost everyone reads the local, major newspaper(s). You can get your business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to get a story written about your business. Advertising can get quite expensive. Newspaper are often quite useful in giving advice about what and how to advertise. Know when to advertise -- this depends on the buying habits of your customers. Newspapers (neighborhood) Ironically, these are often forgotten in lieu of major newspapers, yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. Online discussion groups and chat groups As with e-mail, you can gain frequent exposure to yourself and your business by participating in online discussion groups and chat groups. Note, however, that many groups have strong ground rules against blatant advertising. When you join a group, always check with the moderator to understand what is appropriate. Posters and bulletin boards Posters can be very powerful when placed where your customers will actually notice them. But think of how often you've actually noticed posters and bulletin boards yourself. 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. Note that some businesses and municipalities have regulations about the number of size of posters that can be placed in their areas.

Radio announcements A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. . A major consideration with radio

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 45

Effectiveness of sales promotion Ads is to get them announced at the times that your potential customers are listening to the radio. Telemarketing The use of telemarketing is on the rise. Television ads -Many people dont even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials or other forms of advertisements. Television ads usually are priced with similar considerations to radio ads, that is, the number of ads, the length of ads and when they are put on the air. 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. Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to appear up-to-date. Using the Web for advertising requires certain equipment and expertise, including getting a computer, getting an Internet service provider, buying (usually renting) a Website name, designing and installing the Website graphics and other functions as needed (for example, an online store for ecommerce), promoting the Website (via various search engines, directories, etc.) and maintaining the Website. Yellow pages The Yellow Pages can be very effective advertising if your ads are well-placed in the directory's categories of services, and the name of your business is descriptive of your services and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone company will offer free advice about placing your ad in the Yellow Pages. They usually have special packages where you get a business phone line along with a certain number of ads. Promotional Activities through the Media (Reporters, Newspapers, etc.) 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. In your article, use the opportunity to describe what you're doing to address the issue through use of your business. Editorials and letters to the editor
Rajiv Gandhi Institute Of Technology-Bangalore. Page 46

Effectiveness of sales promotion Often, program providers are experts at their service and understanding a particular need in the community; newspapers often take strong interest in information about these needs, so staff should regularly offer articles (of about 200 to 900 words) for publication. Press kits This kit is handy when working with the media or training employees about working with the media. The kit usually includes information about your business, pictures, information about your products, commentary from happy customers, etc. Press releases or news alerts -They alert the press to a major event or accomplishment and requesting, e.g., it get included in the newspaper; they explain who, what, where, why and when; some include pictures, quotes, etc. to make it easier for the reporter to develop an announcement or story. Public service announcements (PSA) s Many radio and some television stations will provide public service announcements for nonprofit efforts. Usually, these PSAs are free. Other Promotional Activities and Events Annual reports Disseminate these to key stakeholders; they're ripe with information if they include an overview of your year's activities, accomplishments, challenges and financial status.

Collaboration or strategic restructuring If youre organization is undertaking these activities, celebrate it publicly. Networking Spread the word to peers, professional organizations and those with whom you interact outside the organizations, e.g., educators, consultants, suppliers, clients, etc. Novelties It seems more common to find ads placed on pens and pencils, coffee cups, T-shirts, etc. These can be powerful means of advertising if indeed current and potential customers see the novelties. This condition often implies additional costs to mail novelties, print T-shirts, etc. Presentations

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 47

Effectiveness of sales promotion Youre probably an expert at something. Find ways to give even short presentations, for example, at local seminars, Chamber of Commerce meetings, trade shows, conventions, seminars, etc. Its amazing that one can send out 500 brochures and be lucky to get 5 people who respond. Yet, you can give a presentation to 30 people and 15 of them will be very interested in staying in touch with you. Relationships with key stakeholders Identify at least one representative from each major stakeholder group and take them to lunch once a year. What seem as short, informal exchanges can cultivate powerful relationships of interest and concern. Special events These tend to attract attention, and can include, e.g., an open house, granting a special award, announcing a major program or service or campaign, etc. Special offers We see these offers all the time. They include, for example, coupons, discounts, sweepstakes, sales, etc.Recent Movement in Marketing, Advertising and Public Relations, Social Networking (Online).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. Many people are now hearing of some of those tools, e.g., Face book, Twitter, MySpace and YouTube. Experts are asserting that social networking is a must for people and organizations wanting to share information with others -- after all, that's what marketing is all about!

SALES PROMOTION ACTIVITIES IN KSE:In a consumer market to attract consumers and acquire market share, the company is adopting more sales promotion tools in their marketing strategies. These tools attract brand switchers who can be lured by offering premium and product at lower prices. Likewise, 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. 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. The following are the sales promotion tools adopted by the KSE Ltd: Hoardings Sponsorships

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 48

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. and cable network Trade shows Exhibitions

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 49

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, 52% have the habit of watching electronic media,22 %watch print media, 15% watch banners ND 11% of them watch wall paintings. it shows that most of the people prefer electronic media to watch advertisements

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 50

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.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 51

Effectiveness of sales promotion

Table 3
Has KSE Ltd advertisements brought change in your perception on KSE products?

Response Yes 68 no 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.

Page 52

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



According to my survey respondents have ranked their priorities while purchasing for quality first, second rank to price of the product, 3rd for the availability of products,4 th for the advertisement and last is for brand name.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 53

Effectiveness of sales promotion

Table 6

How satisfied are you with the promotional activities of the brand KSE Response
Very satisfied 15






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,32% are just satisfied, 51% are moderately satisfied(average)and remaining 2 % of them are dissatisfied.
Rajiv Gandhi Institute Of Technology-Bangalore. Page 54

Effectiveness of sales promotion Table 7

Does KSEs advertisements convey you enough required information about its products?. 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



Interpretation: Only 5% of the people strongly agree that they are very much satisfied regarding the information provided by the company through advertisement, 41% of the people disagree, 18% strongly disagree, 21% of the people agree and remaining 15% of them neither agree nor disagree.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 55

Effectiveness of sales promotion Table 8

Are you familiar with KSE Ltd products other than cattle feed products?. Response
Very familiar 9



Only heard


Non familiar


50 45 40 35 30 25 20 15 10 5 0 Very familiar familiar Only heard Non familiar




Interpretation: From this survey we could find that 49% of the people are not at all familiar with cattle feed products of KSE,24% of them have just heard about it,18% of them are familiar ND remaining 9% are very much familiar .
Rajiv Gandhi Institute Of Technology-Bangalore. Page 56

Effectiveness of sales promotion Table 9

According to you which media is more suitable for promoting KSE products to enhance sales?. 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,30% prefer print media,8% of people prefer banners, 5% campaigns and remaining 3% prefer wall painting.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 57

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


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


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

Effectiveness of sales promotion

Table 13

What are the areas where the promotion campaign need to be improved?. Response Message Coverage media 11 31 58

60 50


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, 31% suggest through coverage, and remaining 11% of them believe promotional campaigns must be done on messages

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 61

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

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. Only 4% of the people rank 1st for the promotional activities,13% of them have ranked 2nd ,26% have ranked 3rd, 42% ranked 2nd, and remaining 15% ranked 5th.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 62

Effectiveness of sales promotion


What part of KSE advertising strategies impressed you? Response Picturization Execution Information 66 16 18

70 60


50 40 30 20 10 0 Picturization Execution SCALES Information Series1

Interpretation: In KSE Ltd advertisement strategies 66% of people are impressed by picturizatio,16% are impressed by execution, remaining 18% by information provided in the advertisement about the products.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 63

Effectiveness of sales promotion


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


Interpretation:There are 26% of the people purchasing the KSE products based on price and brand,58% of the people purchase based on reference , 10% by watching advertisements and 6% by their own decision to purchase the product.
Rajiv Gandhi Institute Of Technology-Bangalore. Page 64

Effectiveness of sales promotion


How real/fake do you consider the KSE advertisement? Response Very real Real Fake Cant say 18 36 15 31

40 35 RESPONDENTS 30 25 20 15 10 5 0 Very real Real SCALES Fake Cant say Series1

Interpretation: According to the survey 31% of the people have no idea is the advertisement real or fake,36% of the people believe its real, 15% of them believe its fake and remaining 18% of them tell its very much real

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 65

Effectiveness of sales promotion

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.

100% of respondents were aware about KSE products but 49% were not familiar with the cattle feed products. 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. 68% of the people have changed their perception about KSE products through advertisements given by the company.

It was found that people purchase cattle feed products by giving preference 1st to quality then price, availability of product then advertisement and brand image. Promotional activity of the company is not that good because 51% of the people are moderately satisfied.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 66

Effectiveness of sales promotion Majority of the people disagree that KSE Ltd does not convey enough information about the advertised products. 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.

People are very much satisfied relating to packaging done on KSE ltd.

Picturization is the effective advertisement strategy to attract customers.

People have purchased KSE products based upon references, price and


Rajiv Gandhi Institute Of Technology-Bangalore.

Page 67

Effectiveness of sales promotion

Suggestions Brand awareness and sales promotion plays a significant role in marketing and also in the minds of customers. So the study was conducted to understand, to what extent customers are aware about KSE products among the customers in Kerala. Based on the analysis and findings I was able to give the following suggestions. It is better to add extra more advertisement about KSE products. Better to advertise in electronic media more than other media.

According to the survey customers intended to advertise more through television. The information about products in advertisement should be increased.

Promotional campaign must be improved I media.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 68

Effectiveness of sales promotion

In this study, it has been observed that KSE brand created a very good brand image among the minds of the consumers. The main reason for this is quality product offered to the consumers. 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 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. 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. If KSE adopt the new creative ads and more promotional activities to enhance the sales it really works in the mind of the customer, and it helps to increase the more shares in the market.

Rajiv Gandhi Institute Of Technology-Bangalore.

Page 69