report-sales and distribution

7/28/2019 Report-Sales and Distribution

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ROLEOF PROMOTIONAL STRATEGIESON SALESAND DISTRIBUTION MANAGEMENT

Chapter-1

INTRODUCTION

Objective of the study

The globalization of world economy and the consumer

awareness towards product features & quality.Now, the

consumer is changing brand loyality at fast rate than in the

past. This leads to fluctuation in the market share of

multinational companies, the market leader of one time is

now straggling for survival in the market.

Maruti Udyog Ltd., A joint venture between

Government of India an Suzuki Motor corporation of

Japan, had market share of 82% in 1999s in the

passenger car market and now have 56% only due to

consumer awareness of other models. Hyundai,. Cielo,

FIAT etc.

Therefore in order to survive in the market and show their

presence to customer, the MNCs are increasingly using

Promotional Strategies to enhance their sales and

distribution function.

In general, the Promotional Strategy include all the

activities the MNCs under takes to communicate and

promote its products to the target market.

DPC INSTITUTEOF MANAGEMENT, NEW DELHI


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The communication part is done with the help of

advertisement campaign involving electronic, print media

etc. MNCs have full-fledged advertising department who

takes care of communication part.

On the other hand ,the Promotional part is done with the

help of Vehicle which is used as carrier of product to

target market. This vehicle may be product of same MNCs

or other MNCs.

Further the various kind of Promotional Tools used in the

sales promotion are :

1. Trade off

2. Center off

3. Rebates

4. Warranties

5. Gifts

6. Contests

The Contest as Promotional tool is used with the help

of Vehicle.

TheVehicle is generally defined as fast moving product

having significant market presence or enjoying healthy

share in the market demand.



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e.g., Reckitt Benckiser (India) Ltd. (RBI) ,for Promotional

strategy for Robin liquid blue :

Vehicle = Dettol soap

Promotion Product = Robin Blue (2-in-1) liquid

Thus, the Robin liquid blue in reaching to target customer

via Dettol soap vehicles.



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Type of Vehicle

The following types of vehicle are used in the Promotional

strategies:

1. One company agrees to carry a promotion for another

companys product or service e.g., McDonalds teamed

up with Disney to offer Mulan figurines to people buying

its burger.

2. A company chooses / selected high market demand

product from its product range ,for promotion of new

product, e.g., RBI selected Dettol soap a fast moving

product to market Robin liquid blue as promo offer.

3. A company chooses / selected, products from its range

and market along with free gift offer.

e.g. Hindustan Lever Limited (HLL),

(a) Close-up Toothpaste with free plastic fridge

bottle.

(b) Ponds Magic with free vanity box.

In the present study, how contest and gifts as promotional

tools enhances the sales volume / turnover and market

research study on the Reckitt Benckiser (India) Ltd. Dettol

soap Suraksha, Kapda aur Makan contest involving free

Robin liquid blue.



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2. Scope of the study

The present study concern to the following

1. Why MNCs are employing promotional strategies as the

sales and distribution tool.

2. How promotional strategies influence the market share

of given product.

3. What stages of PLC are preferred for the promotional

studies?



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Chapter-2

SALES AND DISTRIBUTION MANAGEMENT

(A). Sales and distribution management

Sales and distribution management constitutes one of the

most important parts of marketing management.

Exchange is the core, aspect of marketing and it is the

sales and distribution management which facilitates it.

Sales management has been defined as the management

of a firms personal selling function while Distribution is

the management of the indirect selling effort i.e., selling

through extra corporate organizations which form the

distribution network of the firm. The sales management task

,thus includes analysis, planning, organizing ,directing and

controlling of the companys sales effort.

Distribution management comprises management of

channel institutions as well as physical distribution

functions.

The exchange process i.e., the sale and delivery of

good/services from the manufacturer to the consumer can

be consummated directly i.e., by the firm itself through its

own sales.

The importance of the sales and distribution function varies

across organizations depending upon its nature and variety

of products, target market, consumer density and dispersion



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and the competitive practices among other things.

Notwithstanding, whether the sales and distribution function

is organized internally, externally or jointly, the following

essential tasks need to be performed in order to

consummate successful exchange.

a) Contact - Finding and communicating with

prospective buyer

b) Prospecting - Bringing together the marketers

offering and the prospective buyer

c) Negotiation and

transaction

- Reaching an agreement on price

and other terms of the offer so that

ownership and possession can be

transferred.

d) Promotion - Of the marketers offerings, and his

satisfaction-generating potential.

e) Physical

Distribution

- Actual transfer of possession i .e.

timely and safe delivery

f) Collection - Of relevant consumers information

and revenue in exchange of goods

or services.

Except for extreme instances of organizations which make

exclusive use of either their own sales force or distribution

channels, most organizations get the above functions

performed through a combination of their own sales force

and the distribution net work they choose to hire. A major



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decision in sales and distribution therefore becomes the

judicious allocation of the above tasks between the sales

force and channel members. The determinants of task

allocations are: competitive practice, product and market

requirements, (including market size, frequency of purchase

and customer concentration) preference and buying

practices of the target customers, and certainly the

management philosophy towards control.

The interdependence of sales & distribution functions are

well established as under:

a) All organizations use their own sales force or distribution

network to reach out to their customers. The emerging

practice is to use own sales force to sell to wholesalers/

semiwholesalers who in turn sell to retailers. Very few

firms (unlike say Brooke Bond) use their own sales force

to reach upto the retail level). As both the sales and

distribution functions are simultaneously performed to

accomplish the firms sales objectives their dependence

on each other for the effective attainment of overall

marketing goals becomes obvious. In other words,

activities of the sales organization would have to be

coordinated with channel operations if sales goals have

to be effectively realized.

b) The decision of the organization to allocate certain

responsibility in the exchange process to its channel

members would define the scope of responsibility of its



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own sales force and thereby would determine the type of

personnel and training required.

c) Even though, an organization may decide to deal directly

with its wholesaler, semiwholesaler, retailer or consumer,

it is required to decide upon the type of help it will

provide to the first and subsequent level of

intermediaries. Since the requirements of each of the

above types of first level contact entities are different

from that of the other, the companys sales task would

have to be defined in context of first level of contact

chosen by it.

d) The choice before an organization to have direct

distribution, indirect distribution or a combination of the

two is of strategic importance and depends upon factors

such as the degree of control, flexibility, costs and

financial requirements etc.

Marketing through channels implies lower degree of

control but would also mean lesser funds tied up in

maintaining inventory and lower fixed and variable costs

of managing the channels. Depending upon it own set of

variables the organization would try and optimize the

effectiveness of the exchange process through the use of

some combination of the two. Necessarily then the scope

of one (i.e. distribution) would define that of the other

(sales management).



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e) To implement overall marketing strategy, the

manufacturers need the cooperation of distribution

outlets in terms of adequate stock maintenance, in-store

displays, local advertising, point of purchase promotion.

With in the corporation, the sales organization is the

initiator as well as the implementor of these dealer

support operations. The effective functioning of dealer-

sales organization relationship often becomes the key to

successful working operations within the organization.

This would mean that the sales management has the

responsibility of structuring organizational relationship

within their own department and with interacting

organizational entities so that the sales task can be

performed and co-ordinated with the overall marketing

goals.

SALES MANAGEMENT FORMULATION OF

SALES STRATEGY

The sales management function, as noted earlier comprises

the management of the sales personnel and activities that

make up the corporate sales effort. Sales managers are

entrusted with the task of organizing, planning and

implementing the sales effort so as to achieve corporate

goals related to market share, sales volume and return on

investment. The task involves the sales manager in a set of

activities both within the organization and outside with

other organizations.



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Within the organization he has the responsibil ity of

structuring relationships both within his own department

and with interacting organizational entities so that the sales

task can be coordinated with other marketing tasks and

performed effectively. It also includes allocating and

operationalising the sales effort among the sales personnel.

Outside the organization, his task would include developing

and maintaining channel relationships effectively so that

the flow of goods and service, and also promotion and

feedback is facilitated.

Embodiment of all these functions can be seen in the

development of sales strategy which often proves vital to

the success of the organization. Key decision areas in sales

management which are particularly relevant to strategy

formulation are:

a. Deciding upon type and quality of sales personnel

required

b. Determination of the size of the sales force

c. Organization and design of the sales department

d. Territory design

e. Recruitment and training procedures

f. Task allocation

g. Compensation of sales force



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h. Performance appraisal and control system

i. Feedback mechanism to be adopted

j. Managing channel relationship

k. Coordination with other Marketing department.

The above decisions give a fair idea of the scope of the

sales management function. Strategy formulation in case of

sales would involve identification of the sales goals and

designing of a gameplan, using the organizational resources

at hand, to achieve those goals.

Step 1

1. Macro Environment Analysis : Social ,Political,

Economic ,Technology

2. Assessment of the competitive situation and the

corporate goals to determine the output that sales

management is expected to give

3. Market analysis

Step 2

Define sales management objectives in terms of delivering

these outputs both quantitative and qualitative.

Step 3

Design sales strategy by deciding upon



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1. Type of sales effort required

2. Type of sales personnel required

3. Size of the sales force

4. Territory design

5. Channel support and coordination



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THE PROMOTIONAL TOOLS/STRATEGIES

The main motive of promotional tools is to communicate

and promote the product to the target market.

The various promotional tools are

1. Advertising

2. Sales promotion

3. PublicRelation, and

4. Personal selling.

Each promotional tool has its own unique characteristics

The Advertising concerns with public presentation,pervasiveness, amplified expressiveness and impersonality.

The Sales Promotion concern with communication,

Incentive, Invitation while the public relation concern with

high credibility, ability to catch buyers off guard,

dramatization.

In last, the personal selling concern with personal

confrontation, cultivation, & response.

Out of all the four tools, the relative spending on sales

promotion is maximum while in public relation is minimum.

For consumer goods, it is shown as follows



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Sales promotion

Advertising

Personal selling

Public relations


Consumer goods

===== DIAGRAM========

Relative spending

The present study is concern with the Sales Promotion and

Market Research to evaluate, the impact of sales promotion

on the sales and distribution function.

In the distribution function, the logistics play an important

role.

(C) LOGISTICS MANAGEMENT

(An aid to physical distribution function.)

The process of getting goods to customers has traditionally

been called physical distribution.



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The physical distribution starts at the factory. Managers

choose a set of warehouse (stocking points) and

transportation carriers that will deliver the goods to final

destination in the desired time or at the lowest total cost.

Recently, physical distribution has been expanded into the

broader concept of Supply-Chain Management which is

called logistics, which is shown in the following figure:

Logistics contributes to an organizations success by

providing customers with timely and accurate product

delivery. The key question is, who is the customer? For

Logistics, the customer is any delivery destination. Typical

destination range from customers homes to retail and

wholesale businesses to the receiving docks of a firms

manufacturing plants and warehouse.

InventoryFlow

Supplier Procurement Manufacturingexport

Physicaldistribution

Customers

Informationflow

(Supply Chain Management)

Logistics involves planning, implementing, and

controlling the physical flows of materials and final goods

from point of origin to point of use to meet customer

requirement at a profit.



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To implement a marketing strategy it is essential to view

all activities relted to the process of gaining and

maintaining customers. Logistics is one of these key

competencies that can be developed as a core strategy.

To the extent that a firm builds its competitive

advantage is on logistical competency. Thus, logistics

plays an important role in the Promotional Strategies,

which in turn, also influences the sales and distribution

function.

(D) PRODUCT LIFE CYCLE

To say that a product has a life cycle is to assert four

things:

1. Products have a limited life.

2. Product sales pass through distinct stages, each

posing different challenges, opportunities, and

problems to the seller.

3. Profits rise and fall at different stages of the product

life cycle.

4. Products require different marketing, financial,

manufacturing, purchasing, and human resource

strategies in each stage of their life cycle.

Most product life-cycle curves are portrayed as bell-

shaped (Figure ). This curve is typically divided into four

stages: introduction, growth, maturity, and decline.



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1. Introduction: A period of slow sales growth as the

product is introduced in the market. Profits are non

existent in this stage because of the heavy expenses

incurred with product introduction.

2. Growth: A period of rapid market acceptance and

substantial profit improvement.

3. Maturity: A period of a slowdown in sales growth

because the product has achieved acceptance by

most potential buyers. Profits stabilize or decline

because of increased competition.

4. Decline: The period when sales show a downward drift

and profits erode.

MARKETING STRATETIES : INTRODUCTION STAGE

Because it takes time to roll out a new product and fill

dealer pipelines, sales growth tends to be slow at this

stage. Buzzell identified several causes for the slow growth:

delays in the expansion of production capacity; technical

problems, delays in obtaining adequate distribution through

retail outlets; and customer reluctance to change

established behaviors.

Profits are negative or low in the introduction stage because

of low sales and heavy distribution and promotion expenses.

Much money is needed to attract distributors. Promotional

expenditures are at their highest ratio to sales because of

the need to (1) inform potential consumers, (2) induce



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product trial, and (3) secure distribution in retail outlets.

Firms focus their selling on those buyers who are the

readiest to buy, usually higher-income groups. Prices tend

to be high because costs are high due to relatively low

output rates, technological problems in production, and high

required margins to support the heavy promotional

expenditures.

In launching a new product, marketing management can set

a high or a low level for each marketing variable (price,

promotion, distribution, product quality). Considering only

price and promotion, management can pursue one of four

strategies.

1. Rapid skimming: Launching the new product at a high

price and a high promotion level. This strategy makes

sense when a largepart of the potential market is

unawareof the product; those who become aware of the

product are eager to have it and can pay the asking

price; and the firm faces potential competition and wants

to build brand preference.

2. Slow skimming: Launching the new product at a high

price and low promotion. This strategy makes sense

when the market is limited in size; most of the market is

aware of the product; buyers are willing to pay a high

price; and potential competition is not imminent.

3. Rapid penetration: Launching the product at a low price

and spending heavily on promotion. This strategy makes



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sense when the market is large, the market is unaware of

the product, most buyers are price sensitive, there is

strong potential competition, and the unit manufacturing

costs fall with the companys scale of production and

accumulated manufacturing experience.

4. Slow penetration: Launching the new product at a low

price and low level of promotion. This strategy makes

sense when the market is large, is highly aware of the

product, is price sensitive, and there is some potential

competition.

MARKETING STRATEGIES: GROWTH STAGE

The growth stage is marked by a rapid climb in sales.

Early adopters like the product, and additional consumers

start buying it. New competitors enter, attracted by the

opportunities. They introduce new product features and

expand distribution.

During this stage, the firm uses several strategies to

sustain rapid market growth as long as possible:

It improves product quality and adds new product

features and improved styling.

It adds new models and flanker products (i.e., products of

different sizes, flavors, and so forth that protect the main

product).

It enters new market segments.



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It increases its distribution coverage and enters new

distribution channels.

It shifts from product-awareness advertising to product-

preference advertising.

It lowers prices to attractthe next layer of price-sensitive

buyers.

MARKETING STRATEGIES: MATURITY STAGE

At some point, the rate of sales growth will slow, and the

product will enter a stage of relative maturity. This stage

normally lasts longer than the previous stages, and posses

formidable challenges to marketing management. Most

products are in the maturity stage of the life cycle, and

most marketing managers cope with the problem of

marketing the mature product.

The maturity stage divides into three phases: growth,

stable, and decaying maturity. In the first phase, thesales

growth rate starts to decline. There are no new distribution

chanels to fill. In the second phase, sales flatten on a per

capita basis because of market saturation. Most potential

consumers have tried the product, and future sales are

governed by population growth and replacement demand. In

the third phase, decaying maturity, the absolute level of

sales starts to decline, and customers begin switching

toother products and substitutes.



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The sales slowdown creates overcapacity in the industry,

which leads to intensified competition. Competitors

scramble to find niches. They engage in frequent mark-

downs. They increase advertising and trade and consumer

promotion. They increase R&D budgets to develop product

improvements and line extensions. They make deals to

supply private brands. A shakeout begins, and weaker

competitors withdraw. The industry eventually consists of

well-entrenched competitors whose basic drive is to gain or

maintain market share.

Dominating the industry are a few giant firmsperhaps a

quality leader, a service leader, and a cost leaderthat

serve the whole market and make their profits mainly

through high volume and lower costs. Surrounding these

dominant firms are a multitude of market nichers, including

market specialists, product specialists, and customizing

firms. The issue facing a firm in a mature market is whether

to struggle to become one of the big three and achieve

profits through high volume and low cost or to pursue a

niching stragegy and achieve profitsthrough low volume and

a high margin.

In the maturity stage, some companies abandon weaker

products and concentrate on core profitable products and

on new products. Yet they may be ignoring the high

potential manymature markets and old products still have.

Many industries widely thought to be matureautos,

motorcycles, television, watches, cameraswere proved



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otherwise by the Japanese, who found ways to offer new

values to customers. Seemingly moribund brands like Jell-O,

Ovaltine, and Arm & Hammer baking soda have achieved

major sales revivals severaltimes, through the exercise of

marketing imagination. The resurgence in Hush Puppies

popularity in the footwear category is a case study in

reviving old, nearly forgotten brands.

MARKETING STRATEGIES: DECLINE STAGE

The sales of most product forms and brands eventually

decline. The decline might be slow, as in the case of

oatmeal; or rapid, as in the case of the Edsel automobile.

Sales may plunge to zero, or they may petrify at a low level.

Sales decline for a number of reasons, including

technological advances, shifts in consumer tastes, and

increased domestic and foreign competition. All lead to

overcapacity, increased price cutting, and profit erosion.

As sales and profits decline, some firms withdraw from the

market. Those remaining may reduce the number of

products they offer. They may withdraw from smaller

market segments and weaker trade channels, and they may

cut their promotion budget and reduce their prices further.

Unfortunately, most companies have not developed a well-

though-out policy for handling their aging products.



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MARKET RESEARCH SYSTEM

Marketing research is the systematic design, collection,

analysis, and reporting of data and findings relevant to a

specific marketing situation facing the company.

A company can obtain marketing research in a number of

ways. Most large companies have their own marketing

research departments.

Small companies can hire the services of a marketing

researchfirm or conduct research in creative and affordable

ways, such as:

Engaging students or professors to design and carry out

projects

Using the Internet.

Checking out rivals.

Companies normally budget marketing researchat 1 percent

to 2 percent of company sales. A large percentage is spent

buying the services of outside firms. Marketing research

firms fall into three categories:

Syndicated-service research firms: These firms gather

consumer and trade information, which they sell for a

fee. Examples: Nielsen Media Research, SAMI/Burke.



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Custom marketing research firms: These firms are hired

to carry out specific projects. They design the study and

report the findings.

Specialty-line marketing research firms: These firms

provide specialized research services. The best example

is the field-service firm, which sells field interviewing

services to other firms.



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THE MARKETING RESEARCH PROCESS

Effective marketing research involves the five steps shown

in Figure

Define the Problem and Research

Objectives

Develop the Research plan.

Collect the Information

Analyze the Information

Present the Findings

(The marketing research process)

In conducting research, firms must decide whether to

collect their own data or use data that already exist. They

must also decide which research approach (observational,

focus-group, survey, behavioral data, or experimental) and

which research instrument (questionnaire or mechanical

instruments) to use. In addition, they must decide on a

sampling plan and contact methods.



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Chapter-3

RESEARCH METHODOLOGY

1. SURVEY METHOD:

Survey methods are concerned with describing, recording,

analyzing and interpreting condition that either exist or

existed. The researcher does not manipulate the variable or

arrange for events to happen, surveys are only concerned

with condition or relationship that exist.

Surveys are conducted in case of descriptive research

studies, where research purpose is

(i) How should a new product be distributed?

(ii) What should be the target segment?

(iii) How should our product be changed?

Eg. In the present study, how a new product, Robin Liquid of

M/s Reckitt Benckiser(India) Ltd be distributed.

The RBI is using Dettal Soap Suraksha Kapda aur Makan

offer to promote Robin Liquid. Further, the RBI chooses the

same target segment as that of Dettol Soap.

The present study uses Questionnaire as the survey tool,

which covers the consumers of south Delhi, namely Vasant

Kunj, Safdarjung Enclave, GreenPark, Gobindpuri, Kalkaji,

Sarai Kale Khan etc.



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The Questionnaire contain 14 Nos of close ended Question,

out of 14, 2 Question are related to personal details and

rest are concerned with the Dettol Soap Promotional offer.

Sample size = 50

Sen Ratio (M : F) = 5 :1

2. METHODS OF DATA COLLECTION

The task of data collection begins after a research problem

has been defined and research design chalked out. While

deciding about the method of data collection to be used for

the study the researcher should keep in mind two types of

data. Viz. primary and secondary.

The primary data are these which are collected afresh and

for the first time and thus happens to be original in nature.

The secondary data, on the other hand, are those which

have already been collected by someone else and which

have ready been passed through the Statistical process.

In the present study, the following techniques are used

a) Primary Data:

It is collected through face to face interview while filling up

questionnaires.

b) Secondary Data:



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Relevant information was gathered from magazines,

Newpapers etc that formed the secondary data.



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c) Communication Approach :

Face to face interviews was taken as the communication

approach since it is a letter method in case where slight

probing is required.

3. SAMPLING

Sampling may be defined as the selection of same part of

an aggregate or totality on the basis of which a judgement

or inference about the aggregate or totality is made In other

words, it is the process of obtaining information about an

entire population by examining only a part of it. In most of

the research work & surveys, theusual approach happens to

be to make generalization or to draw inferences faced on

samples about the parameters of populationfrom which the

samples are taken.

Need for Sampling

1. Sampling can save time & money.

2. Sampling may enable more accurate measurement for a

sample study.

3. Sampling remain the only way when population contain

infinitely many members

Sample Size

A sample size of ______80_______ customer was chosen, but

due to incompletely filled questionnaires and unwillingness



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and carelessness on the part of the respondent. We are

forced to reduce the sample size to ______50_____ . This

sample size was based upon time & affordability approach.

Sampling Technique

Disproportionate stratified random sampling technique has

been used in sampling due to the following reasons:

1. It provides information about parts of the universe.

2. It provides help in gaining precision through

stratification.

QUESTIONNAIRE DESIGN

The questionnaire used was a printed, well structured

formalized schedule to obtain and record specified and

relevant information with fair accuracy and completeness.

The questioning process was face to face interview and the

questionnaire was designed in Such a way that it could be

understood and answered easily by the respondents. The

questionnaire contained both close and open ended

questions.

The close ended question were dichotomous and multiple

choice in nature. Since some of the question were probing

in nature and required answers on the basis of memory of

the respondent. In such type of question there is a risk that

the respondent will answer whatever comes to their minds,

thereby reducing the impact of the study. Keeping these



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consideration in mind. Firstly the period of time in which

respondent were asked to respond was reduced. Since it

has been found that the longer the reporters period, the

less accurate the reporting.

In the present study, the Question is design for Dettol

Soap, Suraksha, Kapda aur makan contest (Mkt by : M/s

Reckitt Benckiser (India) Pvt. Ltd.). In this contest, the RBI

is promoting new product, Robin Liquid Blue.



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QUESTIONNAIRE

1. Which both soap do you use ?

Dettol

Lux

Life-Boy plus

Other

2. Why you prefer Dettol Soap over other ?

3. How many Dettol Soap you use per month :

One

Two

Three

Four & more

4. For how long, are you using Dettol Soap:

6-month

1-yrs

2-year

More than 2-years

5. Who influence you to purchase the Dettol Soap:



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Family

Doctor

Advertisement

Self

Other

6. No. of time you use Dettol Soap in a day:

One

Two

Three

7. Do you aware of Dettol Soap contest in the market ?

Yes

No

8. By which source, you come to know about Dettol Soap

Contest :

T.V.

Newspaper/Magazine

Radio

Other



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9. Do you go for Dettol Soap Promo Pack than conventional

one

Yes

No

10Since Promo Offer is valid for Limited period. Do you

prefer to buy surplus quantity.

1-Promo Pack Extra

2-Promo Pack Extra

3-Promo Pack Extra

4-or more Promo Pack Extra.

10. Do you like to convey Dettol Soap contest messages to

others viz. Friends, Neighbours, Relatives etc.

Yes

No

11. Personal Details :

Sex : Male / Female

Age :

17-22

23-28



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29-34

above 34

12. Occupation :

13. Annual Income (Family) :

Less than 60,000

60,000 1,50,000

1,50,000 2,50,000

2,50,000 3,20,000

3,20,000 and above.



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Chapter- 4

DISCUSSION AND ANALYSIS OF RESULTS

1. Which bath Soap do you use ?

Dettol

Lifebouy plus

Lux

Others

RESPONSE:

40 consumer out of 50 are regular user of Dettol soap. 5-

consumers are part-time users. Specially during summer

month & rest 5 are non-user.

ANALYSIS

The non-user of Dettol Soap are due to the following

reasons-

High MRP of Dettol soap than conventional soap of otherleading brand.

Are allergic to characteristics fragrance of Dettol soap?

2. Why you prefer Dettol Soap over others?

Response



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The consumers prefer Dettol Soap because of the followingunique features

It is anti-septic in nature.

It kills germs from skin, thus provide full protection tobody ?

Any kind of wounds/ cuts automatically get antiseptictheraphy.

It gives more after-bath freshness than other soap.

3. How many Dettol soap(s), you use per month?

One

Two

Three

Four or more.

Response

The Bachelors consumer are using 1-2 soap per month. Thesmall family comprising of parents + kids are using 3-soapper month, and the large or joint families are using four ormore soaps per month.

Analysis

The consumption of Dettol soap is directly proportional tono. of adult consumer in the family. From above, study, asthe no. of adult members in the family rises, than Dettolsoap consumption per month is also increasing.



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The Research reveals that average consumption is threeDettol soap per month per family in metro city of Delhi.

4. For how long, are you using Dettol Soap?

6-month

1-year

2-year

2-years or more



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Response

The Dettol soap usage varies with season. Especially in thesummer month, the Dettol soap users are 70% while inwinter it reduces to 55%.

Analysis

The all walk of working people belonging to middle class &upper middle class are regular user of Dettol soap for one totwo years.

5. Who influence you to purchase the Dettol soap?

Family

Doctor

Advertisement

Others

Response

40% respondents use Dettol soapon Doctor advice, 30% onthe family influence and 20% influenced by theadvertisement, specially on cable channels etc.

Analysis

Some people have skin problem and needs more cleanlinessof skin, thus doctors advise them to use Dettol for dailybath and constitute bulk of customers, which is 40%.

Rest get influenced by advertisement, family etc.

6. No. of times you use Dettol soap in a day?

One

Two



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Three

Four



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Response

In general, the consumer uses Dettol soap twice a day.

7. Do you aware of Dettol soap contest in the market?

Yes

No

Response

50% consumers are aware of contest & the remaining 50%doesnt.

Analysis

The RBI, marketer of Dettol soap, choose cable channelsviz. Star Plus, Sony etc as the advertising vehicle.

The RBI doesnt prefer print media or Road side publicitythrough Banners, boards etc. Thus, 50% consumers are notaware of this contest because they arent regular viewer ofcable channel, maybe due to pre occupation with work or

other engagement.

8. By which source, you come to know about Dettol soapcontest.

T.V.

Newspaper

Radio



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Others

Response

70% consumers specially ladies & kids come to know aboutthe contest by cable T.V. channel. Rest come to know viafriends, relatives or shopkeepers.

Analysis

RBI introduces Dettol Soap Contest in the market but theyhave not gone for full-fledge advertisement, specially in theprint media.

9. Do you go for Dettol soap promo Pack thanconventional are:

Yes

No

Response

95% of respondents prefer promo pack in comparison to

conventional one.

ANALYSIS

In general, the consumers prefer the promo pack. SpeciallyDettol Soap Suraksha, Kapda aur Makan Contest because-

The use of Dettol soap protect (i.e. Suraksha), their skinfrom germ etc.



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The free gift offer of Robin Liquid Blue give whiteningaffect tocloths (ie kapda).

The gift coupon in the Lucky draw may provide Makan.

10. Since Promo ofer is valid for limited period. Doyou refer to buy surplus stock.

1-promo pack extr

2-promo pack extra

3-promo pack extra

4-from pack extra.

Response

95% consumers prefer to buy additional quantity of Promopack during the contest period.

ANALYSIS

The purpose of company as well as consumer get solved

From consumer angle, he/she is getting a additional benefitin the form Suraksha, Kapda aur Makhan, because in themetrocity l ike Delhi, every one likes to have his ownMakhan and if any promo scheme brightens the chances ofmakhan, he/she will prefer the contest.



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On the other hand, the company is also achieving theobjective-

The consumer instead of buying one soap at time, will gofor promo pack, which contain two soap. Moreover, thelimited period offer and attractiveness of Contest in term ofmeeting the basic needs of security & home, encourageconsumer to buy additional quantity of promo pack.Consequently the marketing goal of high sales volume inthe short period is achieved.

Further, high sales volume mean high sales turnover, whichin turn yield profitability to the company.

Moreover, the company is also able to position his newproduct, Robin Liquid Blue in the market.

11. Do you like to convey Dettol soap contestmessage to other viz. Friends, Neighbours,Relatives etc.

Yes

No

Response

97% of respondent like to convey Dettol soap contestmessage to their near & dear.

Analysis



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The company is getting extra mileage because they aregetting publicity for the product at no extra cost. This

factors also contribute in the sales turnover.

On the other hand, will also bring some percentage of non-user into the user category.

12. Personal details :

Sex :

Male

Female

Age :

17-22

23-28

29-34

above 34.

Response

The market research study on 50 consumers, is done-

40 are male consumers, and

10 are female consumers.

The 50% of males are in 23-28 age group range and rest50% are in 29-34 age group while the 40% females are in

17-22 years age group and 60% are 23-28 yrs age group.



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13. Occupation

Response

The 90% of consumers are working class eg. Schoolteachers, govt. service, Pvt. Organization, etc.

14. Annual Income (family)-

Less than 60,000

60,000 1,50,000

1,50,000 2,50,000

2,50,000 3,20,000

3,20,000 & above.

MOST FALL IN THE INCOME GROUP OF 1,50,000-2,50,000 FOLLOWED BY 60,000 1,50,000 .



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Chapter- 5

CONCLUSIONS

The following conclusions are drawn from the study:

1. Promo contest have synergistic effect on the sales

turnover, consequently on the profit ability of the

company.

2. Consumer do publicity of the contest and explain the

things more closely at no extra advertising cost. Thus are

economical in nature.

3. Consumer publicity have more penetration power than

other means.

4. The company is able to sell large volume (units) in the

shorter period, which in turn improves the sales turnover.

5. Help in the consolidation market demands, consequently

market share.

6. It helps RBI to position new product, Robin liquid blue to

target market segment along with dettol contest. Once

the target market for robin liquid blue is explore, it

special offer series with Rs. 3/- off is in the pipeline, to be

launched soon.

7. The Introduction and Decline stages of PLC are the right

place for Promotional Strategies because in the

introduction stage,need for right target market is there



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which is explore with the help promotional strategies as

in the case of Robin Liquid Blue respectively.



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BIBLIOGRAPHY

1. Kotler Philip, Marketing Management (10th edn.).

2. IGNOU Study material, MS-62 Sales Management

3. Kothari C.R., Research Methodology Methods &

Techniques.

4. Eugene M. Johnson, David Kurtz and Elurand Scheuberg,

Sales management, McGraw Hill.

5. G. David Hughes andCharles H. Singler, Strategic Sales

Management. Mass Addison Wesley.

6. Richard R. Still Adward. W. Cundiff and Norman A.P.

Govoni. Sales Management. Decisions. Strategies andCases.

7. David J. Bowersox. M. Bixby Cooper. Douglas M. Lambert.

Donald A. Taylor. Management in Marketing Channels,

McGraw Hill Book Company.

8. Louies W. Stern and Adel El Ansary, 1988. Marketing

Channels, Prentice Hall International.

9. Project Report on Market Research on Consumer

Behaviour Shanpoo Market in Delhi, D.P.C. Library, New

Delhi.



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ACKNOWLEDGEMENT

I take the opportunity to express my sincere gratitude to Dr.

R.L. Varshney, Faculty, DPC Institute of Management for his

invaluable guidance and constant encouragement during

the course of this project.

I would also like to thanks the employee of RBI who helped

me in completing this project.

RAKESH BEDI

MBA (PT) 6th Sem.

DPC Institute of Management.



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CERTIFICATE

This is to certify that the project entitled Role of

Promotional Strategies on Sales and Distribution

Management submitted in partial fulfillment of Master of

Business Administration and is a record of bonafide

research work carried out by Rakesh Bedi of DPC Institute of

Management under my supervision and guidance.

I wish him all the best for his future endeavors.

(Dr. R.L. Varshney)

Project Guide

Faculty,

DCP Institute of Management



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CONTENTS

Topics PageNo.

CHAPTER 1 1-4

Introduction

Objective of the study

Scope of the study

CHAPTER-2 5-24

Sales and Distribution Management

Promotional Strategies

Logistic Management

Product Life Cycle

Market ResearchCHAPTER-3 25-32

Research Methodology

Survey Method

Methods of Data Collection

Sampling

Questionnaire Design

CHAPTER-4 33-40

Results & Discussions

CHAPTER 5 41

Conclusions

BIBLIOGRAPHY 42



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PROJECT REPORT

ONROLE OF PROMOTIONALROLE OF PROMOTIONAL

STRATEGIES ON SALES ANDSTRATEGIES ON SALES ANDDISTRIBUTIONDISTRIBUTION

MANAGEMENTMANAGEMENT

In partial fulfillment for award of degree in Masterof Business Administration

Submitted by:

Rakesh Bedi(99/DP/MBA/PT/24)

DPC INSTITUTE OF MANAGEMENT

(AFFILIATED TO GGS INDRAPRASTHA UNIVERSITY)NEW DELHI



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report-sales and distribution

Documents