Sales Promotion

A Study on Sales Promotion
CHAPTER – 1
INTRODUCTION
“Marketing is a social and managerial process by which individuals and
groups obtain what they need and want, through creating, offering and
exchanging products of value with others”.
- Philip Kotler.
Marketing includes all those activities having to do with effecting changes in
the ownership and possession of goods and services. It is that part of
economics which deals with the creation of time, place and possession utilities
and that phase of business activity through which human wants are satisfied,
by the exchange of goods and services for some valuable consideration.
- American Marketing Association.
Marketing is the process of discovering and translating consumer wants into
product and service specifications and then in turn helping to make it possible
for more and more of consumers to enjoy more and more of these products
and services.
Marketing consists of analyzing marketing opportunities, researching and
selecting target markets, designing marketing strategies, planning marketing
programs and organizing, implementing and controlling marketing effort.
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Companies have to identify long and short term marketing opportunities and
research the selected market by measuring and forecasting attractiveness of
the given market. Having selected the market, the companies need to develop
a differentiating and positioning strategy for the target market. The marketing
strategy must be transformed into marketing programs by deciding on
marketing expenditures and the marketing mix. The final step is organizing the
marketing resources and implementing and controlling the marketing plan.
Marketing Mix
Marketing mix is the set of marketing tools that a firm uses to pursue its
marketing objectives in the target market.
McCarthy has popularized a four factor classification of marketing tools known
as the 4P’s of the marketing mix. They are:
• Product
• Price
• Place
• Promotion
Product:
Product stands for the firm’s tangible offer to the market, including the product
quality, design, features, branding and packing. It deals with new product
development, product life cycle, product mix, product lines, branding and
associated services to a product. From the customer’s point of view, it helps in
satisfying the customer’s needs and wants.
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Price:
Price is the monetary value of the product. Price deals with selecting the
pricing objectives, setting the price, discounts, allowances, payment policies
and credit terms. It is very important to the customers as it decides the cost
the customer has to pay to gain the product value.
Place:
This marketing tool stands for the various activities the company undertakes
to make the product accessible and available to the customer. It involves
market size, channel selection and management, storage and physical
distribution with the ultimate purpose of efficiently supplying the company’s
offer to the target market. To the customer, this marketing tool refers to
convenience.
Promotion:
Promotion stands for various activities the company undertakes to
communicate and promote its products to the target market. It involves
communication programs i.e. direct marketing, advertising, sales promotions,
public relations and motivation of sales force. To the customer this tool
provides knowledge and information.
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The Promotion Mix of a company includes the following tools;
Advertising:
It is any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor.
Direct Marketing:
It refers to the use of mail, telephone and other non-personal contact tools
to communicate with or solicit a response from specific customers and
prospects.
Personal Selling:
Face to face interaction with one or more prospective purchasers for the
purpose of making a sale refers to personal selling.
Public Relations and Publicity:
It refers to the variety of programs designed to promote and or protect a
company’s image or its individual products.
Sales Promotions:
The short-term incentive to encourage trial or purchase of a product or
service refers to sales promotion. Whereas advertising offers a reason to buy;
sales promotion offers an incentive to buy. Since sales promotion directly
push up the sales, increasing number of companies are undertaking sales
promotion activities.
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Sales Promotion
Sales promotion refers to the short-term incentives to encourage sales of a
product or service. It consists of a diverse collection of incentive tools, mostly
short-term, designed to stimulate quicker and greater purchase of products or
services by consumers.
Purpose of Sales Promotion
Sales promotion tools vary in their specific objectives. They may be used
to attract new customers, to reward loyal customers and to increase the
repurchase rates of occasional users. Sales promotion usually targets brand
switchers because non-users and users of other brands do not always notice
a promotion. Sales promotions are thus also seen as a tool for breaking down
loyalty to other products.
Sales promotions also let manufacturers adjust to short term changes in
supply and demand and differences in customer segments. They also let
manufacturers to experiment by varying prices. Sales promotions also lead to
greater consumer awareness of prices.
To use sales promotion, a company must set objectives, select the right tools,
develop the best program and implement it and evaluate the results.
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Objectives of Sales Promotion
The specific objectives set for sales promotions will vary with the type of
the target market. For consumer promotions, objectives include encouraging
purchasing of larger sized units, building trial among non-users and attracting
switchers away from the competitor’s brands. For trade promotions, objectives
may include; including retailers to carry new items and higher level of
inventory, encouraging off-seasonal buying, of-setting competitive promotions,
building brand loyalty of retailers and gaining entry into new retail outlets. The
sales force promotions help in encouraging support of a new product or
model, encouraging more prospecting and stimulating off-seasonal sales. But
most importantly, sales promotion should be focused on consumer
relationship building.
Sales Promotion Tools
Many tools can be used to accomplish sales promotion objectives.
Descriptions of the main promotional tools are as follows;
Consumer Promotion Tools
The main consumer promotion tools are as follows;
• Samples:
They are offers of a trial amount of a product. It consists of inviting
prospective purchasers to try the product without cost or at a lower cost
in the hope that they will buy the product. Samples may be free or
discounted.
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• Coupons:
Coupons are certificates that give buyers a saving when they purchase
a specified product. Coupons can be mailed, placed in advertisements
or included with other products.
• Rebates:
Rebate is also known as cash refund offers. Rebates are offers to
refund part of the purchase price of a product to its customers who
send a proof of purchase to the manufacturer. These are like
coupons except that the price reduction occurs after the purchase
and not at the point of sale.
• Price Packs:
Cents-off deals or price packs offer consumers savings by way of
reducing prices that are marked by the producer directly on the
package.
• Premiums:
These are the goods offered either free or at a low cost as an
incentive to buy a product. Premiums may be in-pack or on-pack
(outside the pack).
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• Prizes:
They are offers of chance to win something such as cash, trips or goods –
by luck or through extra efforts. Contests of talent and sweepstakes or
draws the most popular prize offering promotions.
• Tie-in Promotions:
Tie-in promotions involve two or more brands or companies that team up
on coupons, refunds or contests to increase their pulling powers.
• Cross Promotions:
Cross promotions involve using one brand to advertise non-competing
brand.
• Advertising Specialties:
These are useful articles imprinted with an advertiser’s name, given as
gifts to consumers.
• Patronage Rewards:
They are cash or other awards for the regular use of company’s products
or services. They are values (in cash otherwise) that are proportional to
one’s patronage of a certain vendor or a group of vendors. They aim at
building brand loyalty.
• PoP Promotions:
Point of purchase (PoP) includes displays and demonstrations that take
place at the point of purchase or sale.
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Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on
consumer promotions (42%). The major trade promotion tools are as follows;
• Discounts:
It is also known as price-off or off-invoice or off-list. Discounts price cut off
the list price on a particular quantity purchased during a stated time.
• Allowances:
They are the amount offered in return for an agreement by the retailer to
feature the manufacturer’s products in some way; displays, advertising or
otherwise.
• Free Goods:
Free goods are the extra merchandise offered to middlemen who buy a
specific amount of a product.
Companies also offer push money and specialty advertising items to the
middlemen.
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Business Promotion Tools
Companies spend huge amount on promotions focused on industrial
consumers. The major business promotion tools are as follows;
• Trade Shows and Conventions.
• Sales Contests.
Clearly, sales promotions play an important role in the total promotion mix. To
use it well, the marketer must define the sales promotion objectives, select the
best tools, design the sales promotion program, pretest and implement the
program and evaluate its results.
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INDUSTRY PROFILE
A Look into the Indian Economy and Furniture Industry
India is the fourth largest economy in the world and it’s the largest
democracy with second largest GDP among emerging economies. World
Bank’s President James D. Wolfensohn confirmed that India is not the world’s
4th largest economy after USA, China and Japan in PPP (Purchasing Power
Parity). It is also one of the ten fastest growing economies in the world.
With 1 billion populations, India remains on the fastest growing economies
and even in the present worldwide economic slowdown, has maintained GDP
Growth rate of nearly 6%.
India today is 7th most attractive destination for foreign direct investments,
after US, China, Brazil, Mexico and Germany. Besides, India offers higher rate
of returns and profitability than anywhere else in the world.
Out of 1 billion population the upper and middle class constitutes 20% or
200 million people (or 30 to 40 million houses). By rent per capita:
• 2 percent of Indian has a per capita income in excess of 14,500 Euros,
which means 20 million people.
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• 8 percent of Indians have a per capita income of more than 3,900
Euros, which means 80 million people.
• 10 percent of Indians have a per capita income in excess of 3,200
Euros, this is about 100 million people
Overall Economic Scenario
1. The Indian market has been enormous with a large base.
2. Levels of affluence are high- with the number of individuals in the “high:
income demographic group doubling each year, according to NCAER
statistics.
3. The actual “disposable” income at the disposal of the affluent Indian is as
high as three to five times higher as the official statistics, on account of the
very large proportion of unaccounted (“black”) money income.
4. The market has, due to exposure to overseas products and lifestyles,
displayed the willingness and ability to purchase overseas brands and
products at high prices.
5. Customs duties and tariffs have been drastically reduced, in keeping with
government policy to open up the economy – a policy which has stayed
constant despite changes in government. All the products in the INDEX
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product range are now permitted for import into India under OGL or the
Open General License, which implies that no special import license is
required for import.
6. Despite the cut in duties, the rate of customs duties is fairly substantial
which makes the prices of products higher in India. There is a huge
demand for furniture, hardware and fittings, DIY equipment, lighting and
consumer non-durable and appliances.
7. While the Indian middle class still does not have as high a rate of
obsolescence as the US, and tend to use their furniture for several years
before changing or upgrading, the actual size of this segment makes
investment in this market more than worthwhile. The affluent classes
however, do have high rate of obsolescence of interior decoration products
and redecorate constantly.
8. All the above factors put together make manufacturers and retailers of a
wide range of consumer durables. Several overseas companies have
already entered the market and have been extremely well received by the
market.
Indian Furniture Industry

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The furniture sector in India only makes a marginal contribution to the
formation of GDP, representing just a small percent (about 0.5%), which
indicates a huge potential for growth. It is estimated that the furniture industry
comprises 25% of the construction industry and hardware comprises 40% of
total furniture industry, out of this 20% is replacement and 20% is new.
Wood and wooden products, furniture and fixtures carry a weight of
27.01% in the total manufacturing sector.
The furniture industry employs a total of around 30,000 workers. The future
on the furniture sector in India seems positive. Talking about production,
several agreements have been signed between local producers looking for
technology and European and Asian companies trying to reach a potential
opportunity in costs.
From the commercial point of view, India shows good perspective to sell
furniture in the following years. First of all, because its size and secondly due
to the newly acquired taste as a result of exposure to western furniture style.
India is one of the largest consumers of wood in South East Asia. Until a
few years ago the county had considerable quantities of available tropical
woods. The most common species in Indian forests are teak, rosewood,
ebony, laurel, pine, cedar and rubber trees. Supply of these “ready to uses”
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species became scarcer due to unconditional and inappropriate exploitation
and also due to growing concern about the environment.
In India, natural rubber plantations covers 520,000 hectares with another
6,000 hectares replanted almost every year since 1994. Kerala state (South
India) produces 95% of the total supply of rubber wood in India.
India imports wood (logs) especially from Malaysia, Indonesia, Myanmar,
Ivory Cost, Cameroon, Nigeria, Ghana, South Africa and New Zealand and to
some extend from South America.
Most soft and hard woods are imported from Russia, Scandinavia and
other South East Asian counties. MDF is imported from Europe, and there is
also a small local production. Veneered panel are becoming more popular in
India and are imported from the European Union and the USA.
The total size of Indian furniture industry is estimated at Rs. 350 thousand
million but almost 85% of this is unorganized. The remaining 15% is organized
and is believed to be growing at a steady pace of 12% to 15% per annum.
The share of the wooden furniture market is estimated at Rs. 600 million.
Woodworking industry of India is one of the fastest growing in the county’s
economy. Much of this growth has been fuelled by the increasing access to
modern machinery and technology through easier import policies as a result
of India’s entry into the WTO in the year 1990s. There is a noticeable shift in
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the preference towards mechanized mass production and the up gradation of
technology.
The Emerging Trend
Though technology has made inroads in the industry with increasing
stress on the use of machines, overall scenario reveals that almost 80% of the
products supplied in local markets by indigenous manufacturers are labor
intensive and handmade.
Residential or household furniture accounts for over 60% of the overall
domestic and leading manufacturers have begun to realize the necessity of
proper distribution system in this area.
Among other sectors where the demand is spiraling upwards is office
furniture. Growth of IT an IT- enabled sector such as BPO’s has created a
huge demand in metros and Class II cities all over India. The old economy
businesses are also undergoing a makeover and this is reflected through
changing looks of the offices.
Metal and plastic furniture production is gaining wider prominence but
wood still remains to be the most favored medium.
CHAPTER - 2
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REASEARCH DESIGN
Title of the Study
The title of the study is – “A STUDY ON SALES PROMOTION OF HOME
FURNISHINGS AT Ferror Dek Pvt. Ltd”.
Statement of the Problem
The project is mainly undertaken to study the sales promotional strategies
at Ferror Dek Pvt. Ltd. The intention of the study is to find what attributes
needs further improvement in order to make the product more
preferable in the market.
The main aim of the study is to uncover new relationship and identify any
problem that may arise in future. Hence, exploratory research is been
conducted. Exploratory research as its name implies endeavors of exploring
the possibility of doing research on a subject where due to lack of existing
knowledge framing and testing the hypotheses is difficult. In today’s crowed
marketplace where products and services are touting themselves to be the
best, it is vital to stand out in the crowd. The study was undertaken to explore
how a company or brand can ensure a store that stands out and not get lost in
the crowd.
Objectives of the Study

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1. To study the various promotional strategy adopted by Ferror Dek Pvt. Ltd.
2. To find out the footage of Ferror Dek Pvt. Ltd. With respect to other players
in the market.
3. To observe and understand the practice followed by Ferror Dek Pvt. Ltd.
4. To find out the communication linkages and de-linkages in the
organization.
5. To study the activities of each and every department of the organization.
Scope of the Study
This project was undertaken for a specific period in Ferror Dek Pvt. Ltd.,
New BEL Road, RMV II Stage; Bangalore. It is an exercise that is well
planned into the curriculum giving the researcher a valuable opportunity to
understand the working dynamics of the organization and to experiment and
exhibit the recently acquired management and administration skills.
The prospect of the furniture sector in India seems positive. The Indian
furniture industry has awakened to interesting times! The last ten years have
seen changes in the shop windows of furniture retailers. Consumers today no
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longer look for mere practicality in furniture, instead, they look for theme
furnishing, i.e. lifestyle living. Realizing the tremendous market potential and
to make the most of it, the study was undertaken.
Limitations of the Study
Every study is bound by limitations and as such this is no exceptions.
1. “Change is Constant” rule of nature. Hence, the study undertaken may
not hold good for longer duration.
2. The study was conducted under the assumption that the information
given by the respondents is authentic.
3. The analysis and suggestion are given only with respect to marketing
aspects as technical suggestion with respect to the product could not
be given.
4. Confidential matters were not disclosed by the company.
5. There were time constraints.
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Methodology of the Study
A variety of methods of study have been adopted by the researcher to
fulfill the objectives of the study.
 In order to have a better grasp of the study, the researcher chose to
become a keen observer, studying the various aspects of the
organization.
 To have a broader perspective of the study, the researcher
attended the Lifestyle Exhibition at Palace Grounds wherein the
products of Ferror Dek Pvt. Ltd. were displayed.
 In order to fund out the market realities, the researcher visited the
showrooms of certain companies having almost similar product
profile as that of Ferror Dek Pvt. Ltd. To name a few Quezel,
Veneto Cosines, Trident Inter Wood, etc.
 With a view to understand the crunch of the matter and to find out
the ground realities, the researcher formed a schedule specifically
for the set of respondents. The researcher met the respondents
personally, interviewed them and made them to fill the
questionnaire.
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The researcher has done the research in the following manner;
a) Type of the research undertaken is analytical.
b) Technique used is random sampling.
c) Sample size taken is 30.
d) Sources of data used include both primary as well as secondary data.
e) Tool used for the research is questionnaire.
f) Plan of analysis are tables and graphs.
Data Collection Methods
In this study, the foremost data collection instrument used is the
questionnaire method. The questionnaire has been designed with both open
ended and closed ended questions. Apart from this, the research instrument
consists of primary and secondary data collected for the study.
Primary Data:
Here first hand information is obtained by distributing printed questionnaire to
the marketing executives of the company. Data was also obtained from the
observation and interview technique adopted by the researcher. Moreover,
information was disseminated by the departmental heads.
Secondary Data:
Here the information is obtained from the brochure of Ferror Dek, books,
websites, newsletter, journals, magazines, newspapers, etc.
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SOURCES OF DATA
Primary Data Secondary Data
Questionnaire Newsletter
Observation Journals
Interviews Magazines
Visits to other Newspapers
Companies Information Books
Through Departmental heads Websites
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CHAPTER – 3
COMPANY PROFILE
Ferror Dek Pvt. Ltd. promoted by Mr. Binny Kuriakose is one of India’s
leading manufacturers and distributor of modular kitchen and modular work
station. It also undertakes value added services such as executing turnkey
projects as a part of office furnishing.
It has set international standards in terms of quality of work and execution
of projects.
It was a modest beginning for Ferror Dek with a few orders for home
furnishing. Very soon as the scope of the business grew; it started expanding
into diverse activities. It is only a year old but the company has shown
excellent growth since inception and is growing at a rapid pace.
It has a decade of expertise in building turnkey solutions for contemporary
offices and homes. The understanding of modern demands allows optimizing
spaces to derive maximum utility value for every furniture solution. The
solutions are available in a wide variety of boards such as Pre-lam particle
board, MDF board with post form finish, MDF with veneer finish and MDF with
PVC foil membrane, 2mm PVC edge banded shutter etc. The whole range of
solutions are tailor-made to suit the consumers needs blended with
affordability and aesthetics. It is located at Bangalore, India’s melting pot of

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international cultures. They are at a strategic advantage to offer clients
furniture that reflects the emerging global denizen.
It is equipped with a modern production house and employs world class
machinery from Germany and Italy to carve artistic niche for customers. It
uses high quality raw material for all solutions and these are available in a
wide variety of options.
Today’s market is clustered with options to furnish homes and workplace.
But at Ferror Dek, what makes it to truly stand apart is the quality of the
products and services. It is driven by the urge to provide quality that is
distinctive as the customers are. Every single product that is rolled out of the
manufacturing unit is ensured to be flawless and absolutely defect-free. The
adherence to rigorous quality standards is maintained at every level because
quality is continuous and consistent process….
Ferror Dek ensures its customers that the customers will find unique
expressions of their creative niche.
THE CREATIVE NICHE:
• Understanding of modern client mindset allows optimizing spaces to
derive maximum utility value for every interior solution, be it office or
home.
• Application of highly specialized design techniques sets its design apart
from competing companies.
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• A combination of proficient project management control, unyielding
quality guarantee and prompt operation and service support.
• It builds up a technical drawing, which has detailed records for every
project, thus assuring complete transparency in all business dealings.
• Ferror Dek undertakes and completes every project with the same
precision and approach irrespective of the size of the project. Raw
material is checked and sorted based on the target approach to
stringent quality checks at every level.
MANUFACTURING FACILITIES:
The specialized home solution offers complete units for every room. The
array of products includes:
 Modular Kitchens
a) Eco friendly laminated in different colors. Shutters come in
membrane, medium density fiber (MDF) and pre-laminated particle
board.
b) Different kinds of pull out baskets, to name a few D-tray, Swivel
tray, magic corner.
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 Wardrobes
 Wall units
 Crockery units
 Living room furniture
 Designer doors
 Shoe racks
 Loft coverings
 Dressing units
 Kids units.
Managing space at work:
The modular solutions of the office strive to create a comfortable
workplace, allow easy maneuverability of work area and infuse a high degree
of visual appeal. The range of solutions includes:
• Modular Workstations:
Eco friendly laminated modular office systems include desk, storage
cabinet, pedestal, partitions and key board.
 The working desk system – is available in variety of shapes
and sizes.
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 Partition system with fully integrated cable management
partitions (two levels of cable raceways).
 Partition thickness will be available in 75mm thickness.
 Partition is made up of Mild Steel (MS) with required powder
coated color.
 Various heights and lengths of partitions are available.
 Multiple choice of fabric, laminate, metal perforated sheets,
accessories panel, glass, etc.
• Filling storage units
• Pedestals
• Keyboard and CPU trolleys
• Discussion tables
• Conference tables
• Training tables
• Other office furniture.
Managing Turnkey Projects:
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Though home and office furnishing is the niche area, value added services
are provided to give customer solution and thus turnkey projects are
undertaken.
Turnkey projects include:
• Architectural services
• Civil construction
• Project co-ordination
• False-ceiling
• Networking
• Electrical work.
Some of its Clients are:
1. Rockewell Studio, Bangalore
2. Credence Audio Systems, Bangalore
3. Honeywell Ltd., Bangalore
4. Cepha Imagining Pvt. Ltd., Bangalore
5. Black and White Studio, Bangalore
6. Siddharth Engineering Pvt. Ltd., Bangalore
7. Kurl-on-Ltd., Bangalore
8. Manjushree College of Nursing, Bangalore
9. Atlas Copco-Bangalore
10. Rahul Cargo Pvt. Ltd. – Bangalore
11. Daedalus Consulting Pvt. Ltd. – Bangalore.
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ORGANIZATION CHART
MD
Head Accounts Head Head Head Head

And Marketing Designing Marketing Production
Administration (Home (Office
Furnishings) Furnishings)
2 Executives 8 Marketing 8 Designers 2 Marketing

And an Executives Executives
Office boy
Supervisor Supervisor Supervisor Supervisor

(Quality Control) (Production) (Product (Dispatch)
Analysis)
2 Persons 26 Persons 2 Persons 1 Person

(Machine operators
And helpers)
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Employee Strength –
A total of 61 personnel including executives and shop floor workers are
working for the company.
DEPARTMENTS
The researcher encompassed the study of four departments namely
Accounts and Administration, Designing, Production and Marketing. The basis
for departmentalization was functional.
ACCOUNTS AND ADMINISTRATION DEPARTMENT
This department is headed by Mr. Yesudas. Two executives assist him.
This department is broadly concerned with the acquisition and use of funds
by the company. It also analyze, plan and control the company’s financial
affairs. Moreover, the in house administration of the company is also taken
care of. It includes maintenance of showroom and a look into the
requirements and problems of day to day administration. It also keeps a track
of things with regard to civil construction, architectural services, networking,
project co-ordination, electrical work, etc. It is also concerned with bank facility
availed by the employees. Apart from all these, it also takes into account the
installation part at the customer site after the dispatch of the product. In a
nutshell this department deals with the trouble shooting of any problem.
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DESIGNING DEPARTMENT
This department is headed by Mr. Albert. Eight creative designers assist
him. The team of designer tailor makes the products according to the needs of
the customers. Two aspects namely affordability and aesthetics are focused
upon. Major activities undertaken in this department are as follows:
• Setting the normal design –
According to the initial measurement told by the customer, a normal
design is set. Once the normal design is finalized by the customer, a
designer accompanied by marketing personnel visits the construction
site and takes the final measurement. Then according to it a design is
set and the price quotations are made.
• Setting the production design –
When the deal is finalized and after receiving 50% of the amount from
the customer, the designers make the production design. This design
clearly demarcates the technicalities so that it becomes easier for the
production personnel to understand.
• Innovative designs –
The team of designers also trigger out the brain cells to create
innovative designs.
PRODUCTION DEPARTMENT
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This department is headed by Mr. Prashanth. Four supervisors are in
charge of four different activities such as quality control, product analyzing,
production and dispatch.
PRODUCTION HEAD
Supervisor Supervisor Supervisor Supervisor

(Quality Control) (Product (Production) (Dispatch)
Analysis)
2 Persons 2 Persons 26 Persons 1 Person

(Machine
Operators
And helpers)
• Quality Control:
This sub department is mainly concerned with the inspection of raw
materials. The raw materials are supplied mainly by four companies namely
Novapan, Spacewood, Bhutan Board and Nepal Board and Nuwood. For bulk
orders, direct purchase is made from the local companies such as Marino Ply,
Greenlam, Virlam and Kalachandra.
The raw materials obtained are with respected with regard to
requirements and specifications.
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• Product Analyzing:
This sub-department is mainly concerned with targeting and
scheduling. After receiving the production design, it targets as to when the
work needs to be completed and schedules the whole process. Again,
after completion of production process and before dispatch, the product is
thoroughly inspected here.
• Production:
26 persons comprising of machine operators and helpers are
involved in this sub-department. It consists of five operations namely
cutting, molding, edge bending, boring and hot press and post formed.
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I. Operation : Cutting
Machine Used No. of Person Involved

1. BEAMSAW 5 persons :
2 operators
3 helpers
2. PANELSAW
II. Operation : Molding

1. SPINDLE MOULDER 4 persons :
1 operator
1 gauge setting
2 for loading and unloading
III. Operation : Edge bending

1. THROUGH EDGE 3 persons :
BENDING 1 operator
2 helpers
IV. Operation : Boring

1. BORING 3 operators
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V. Operation : Molding

1. HOT PRESS 3 operators
2. POST FORMED 3 operators
‫ ٭‬Important Note :
Within 4 hours after cutting the panel, it needs to be covered.
• Dispatch:
After the product is analyzed, it is ready for dispatch. Usually, at least
once carpenter goes to the customer site for installation.
MARKETING DEPARTMENT
This department deals with the springboard of all activities. This
department is split into two divisions – one dealing with home furnishings and
the other dealing with office furnishings.
Home Furnishings:
This department is headed by Mr. Eugene Joseph. Eight marketing
executives assist him. Let us discuss the 4P’s of marketing mix with regard to
the company.
1. Product:
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Modular kitchens, wardrobes, wall units, crockery units, living room
furniture, designer doors, shoe racks, loft coverings, dressing units,
kids units.
What is Modular Kitchens?
The accent today is on ergonomics – a kitchen that’s a comfort to
use and be in. Modular kitchens are planned around the workflow triangle
of refrigerator – cooker-sink: minimizing distances between these makes
cooking a more economical and energy saving process. For a dream
kitchen, one must be able to pinpoint needs, aspirations, likes and dislikes.
Then the manufacturers step in and do the rest. Color preferences,
textures and materials work at the psychological level to affect one’s
perception of a space. Modular kitchen also have accessories like napkin
holders and storage shelves mounted on racks that can be run along the
length of the kitchen wall.
Why use Modular Kitchen?
I. They look good and optimize space.
II. Are fully re-locatable.
III. Are made of durable material.
IV. Selection of different materials for different uses is a difficult decision to
make which easily solved by modular kitchen.
Page 36
V. A modular kitchen takes care of things like exhaust hoods/ chimneys
which are otherwise ignored. Replacement/ repairs are easy.
VI. Kitchen work/ equipment/ utensils get proper definition, role and place to
function.
VII. Can be expanded or reduced in size at later stages. Have low
maintenance and high durability.
VIII. Require simple ground preparation and services.
IX. Can be constructed in a time period as short as 6 to 8 weeks from order.
X. Person gets motivated to work in such kitchens.
2. Place:
Located at Bangalore, India’s melting pot of international cultures, the
company is at a strategically advantageous position to offer its clients
furniture that reflects the emerging global denizens.
The corporate office and showrooms is situated at New BEL Road,
RMV II Stage; Bangalore.
3. Price:
The products are customized so the price also doffers accordingly. The
products offered are basically made either from prelim, MDF or
membrane. Each product has a different rate. Prelim is priced at Rs.
650 per sq. ft. The pricing policy adopted is cost plus a percentage of
profit. While quoting the price of a product, height and width is
Page 37
considered irrespective of depth. If the depth exceeds the standard
norm of 2 ft. then only it is considered.
4. Promotion:
The Company has a showroom of its own. The showroom is opened for
all the seven days of a week from 9 a.m. to 9 p.m. Paper insertion are
placed in leading newspapers such as Times of India, Business
Standard, Deccan Herald and Prajavani. Telemarketing is also done.
Display stalls are put up near upcoming construction of apartments.
The Company also participates in exhibitions. The recent one is, being
the participant of the Life Style Show on Palace Ground at Mekhri
Circle.
Office Furnishings:
This department is headed by Mr. Rajesh. Two marketing executives assist
him.
The products dealt with are – modular workstations, filing storage units,
pedestals, keyboard and CPU trolleys, conference tables, training tables and
other office furniture. An important facet dealing with the promotion of a
product is corporate presentations. The target group here is the corporate.
Other than that there is no major change with regard to place, price and
promotion.
Page 38
HR ASPECTS
Though the company does not have a separate HR Department as it is in
the embryonic stage but the HR aspects are taken care of by Mr. Eugene
Joseph.
• Leave Facility :
All employees are entitled to 12 days of casual leave and 2 days of
sick leave (monthly). In case of a long leave, say a week or more than that,
one needs to inform it before 10- 12 days. In case of emergency, a prior
intimation before 2 days is sufficient. One can also avail the facility of
working on holidays and taking leave on the week days.
• Recruitment :
The Company spells out its requirements to the consultancies about
the suitable candidates. Usually, Mr. Eugene or Mr. Rajesh or Mr. Yesudas
takes the interview of the candidates.
• Training :
A selected candidate is put on training for about 15 days. During
this period, he is not given individual project.
• Job Rotation :
Page 39
Job rotation is adopted by the company so that there is development
of multi-faceted skills to fill in vacancies and to cope with increasing work
load. Movement is effected in the same grade
THE WHOLE PROCESS AT A GLANCE
Clients come to the showroom
↓
Initial Measurement is given
↓
Designers design the product
↓
Quotation is made
↓
Negotiation is made
↓
Color combination is chosen by the customer
↓
50% of the amount is given as advance by the customer
↓
Signing of the estimation form
Both the company and client will keep a copy of it
↓
Production drawing is made
↓
Production department
Page 40
↓
Delivery and installation
SWOT Analysis
Strength Weakness
• Customized products • A new entrant in the market

• Reasonable price
• Quality
Opportunity Threats
• Growth of furniture industry • A lot many players are existing

seems positive in the market
• Huge potential
Future Plans:
The company has shown excellent growth since inception and is
growing at a rapid pace. All these contribute for the company’s future
expansion plan.
• It is going to open showrooms on Kerala. The 1 st one is coming up in
Cochin.
• It is going to open 4 more showrooms in Bangalore.
• Will involve 10 dealers in Bangalore.
Page 41
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
Table No. 1
Table representing the sex of the marketing executives
Sex No. of Respondents Percentage

Male 6 20%
Female 24 80%
Total 30 100%
Analysis
 80% of the respondents are male.
 20% of the respondents are female.
Interpretation
 Majority of the marketing executive are male.
Page 42
Graph 1
Sex of the Marketing Executives
Page 43
Table No. 2
Table representing the pricing of products
Prices No. of Respondents Percentage

High ─ ─
Reasonable 16 54%
Competitive 14 46%
Low ─ ─
Total 30 100%
Analysis
 54% of the respondents are of the opinion that the products are
reasonable.
 46% of the respondents are of the opinion that the prices of the
products are competitive.
 None of the respondents feel that the prices of the products are
either high or low.
Interpretation
 Majority of the respondents opine that the prices of the products
are reasonable.
 The prices of the products are reasonable though they are
competitive.
Page 44
Graph 2
Pricing of Products
Page 45
Table No. 3
Table representing the major competitors of

Ferror Dek Pvt. Ltd. with regard to
Home furnishing
Major Competitor No. of Respondents Percentage

No dominant player 24 80
Godrej 4 13
Trident Inter Wood 2 7
Total 30 100
Analysis
 Majority of the respondents i.e. 80% opines that there is no
dominant player in the market.
 13% of the respondents are of the opinion that the Godrej is the
major competitor.
 Trident Inter wood is considered as the major competitor by 7% of
the respondents.
Interpretation
 Though brand names like Godrej and Trident Inter Wood came into
the picture but the fact reveals that there is no dominant player in
the market. So everyone is competing with each other.
Page 46
Graph 3
Major Competitors
Page 47
Table No. 4
Table representing the competitor’s strength
Strength No. of Respondents Percentage

Quality ─ ─
Brand Image 24 80
Pricing ─ ─
Promotional Activities 6 20
Total 30 100
Analysis
 80% of the respondents are of the opinion that the competitor’s
strength is brand image.
 20% of the respondents opine that promotional activities are the
strength of the competitors.
 None of the respondents feel that quality and pricing are the
strength of the competitors.
Interpretation
 Majority of the respondents opines that brand image is the strength
of the competitors.
Page 48
Graph 4
The Competitor’s Strength
Page 49
Table No. 5
Table representing the quality of the products of

Ferror dek with respect to other competitors
Rating No. of Respondents Percentage

Good 17 57
Very good 13 43
Fair ─ ─
Poor ─ ─
Total 30 100
Analysis
 Majority of the respondents i.e. 57% are of the opinion that the
products are of good quality with respect to other competitors.
 43% of the respondents opine that the products are of very good
quality with respect to the other competitors.
 None of the respondents are of the opinion that the products are of
fair or poor quality with respect to other competitors.
Interpretation
 Majority of the respondents is of the opinion that the products are of
good quality and is at par with other competitors having brand
names.
Page 50
Graph 5
Quality of the products of Ferror dek with respect

to other competitors
Page 51
Table No. 6
Table representing kind of products sold more

per month
Products No. of Respondents Percentage

Modular kitchen 27 90
Modular kitchen and 3 10
Wardrobe
Total 30 100
Analysis
 90% of the respondents are of the opinion that modular kitchens
are sold more per month.
 10% of the respondents are of the opinion that modular kitchen and
wardrobes are sold more per month.
Interpretation
 Majority of the respondents is of the opinion that modular kitchens
are sold more per month.
Page 52
Graph 6
Kinds of products sold more per month
Page 53
Table No. 7
Table representing the merits of the products of

Ferror dek that differentiates it from others
Merits No. of Respondents Percentage

Reasonable price 10 33
Quality 7 24
Customized product 10 33
Finishing 3 10
Total 30 100
Analysis
 33% of the respondents are of the opinion that reasonable pricing
and a customized product differentiates the products of Ferror dek
from that of others.
 24% of the respondents are of the opinion that quality is the
differentiating factor.
 10% of the respondents are of the opinion that finishing is the
differentiating factor.
Interpretation
 Reasonable pricing and customized products differentiates the
products of Feror dek from that of others.
Page 54
 In fact, all the merits such as reasonable pricing, customized
products, quality and finishing contributes in differentiating the
products from others.
Graph 7
Merits that differentiates the products of Ferror

dek Pvt. Ltd.
12
10 10
10
8
7
Reasonable price
6 Quality
Customized products
4 Finishing
3
0
No. of Respondents
Page 55
Table No. 8
Table representing the factors which play a major

role in demand generation
Factors Ratings
5 4 3 2 1
Price of the product 4 3 0 1 1
Awareness about the 3 1 0 4 1

product
Delivery of the product 1 0 5 1 2
ordered
Presentation about the 0 2 0 3 4
product
Design of the product 1 3 4 0 1
5 - Very important, 4 - Important, 3 - Makes little difference,
2 - Not important, 1 – Does not make any difference.
Analysis
 Price of the product gets the maximum of 5 rating.
 Design of the product and the price of the product get the maximum
of 4 rating.
 Delivery of the product ordered gets the maximum of 3 ratings.
 Awareness about the product gets the maximum of 2 rating.
Page 56
 Presentation about the product gets the maximum of 1 rating.
Interpretation
 Price of the product plays a major role in the demand generation.
 Design of the product plays an important role in demand
generation.
 Delivery time of the product ordered can make a little difference in
demand generation.
Page 57
Graph 8
Factors playing a major role in demand

generation
5
5
4 4 4
4
Price of the product

3 3 3 3 Awarenessabout the product
3
Delivery of the product ordered
Presentation about the product
2 2
2 Design of the product
1 1 1 1 1
1
00 0 0 0 0
0
1 2 3 4 5
Page 58
Table No. 9
Table representing the promotion of the products

of Ferror dek Pvt. Ltd.
Promotions No. of Respondents Percentage

Paper insertion 7 24
Telemarketing 10 33
Display stalls ─ ─
Participating in 10 33
exhibition
Direct mail ─ ─
Presentations ─ ─
Showrooms 3 10
Total 30 100
Analysis
 24% of the respondents are of the opinion that paper insertions are
used as promotion of the product.
 33% of the respondents opine that telemarketing is the means of
promotion of the products.
 33% of the respondents feel that participating in exhibition has
promoted the product.
 10% of the respondents are of the opinion that showrooms are used
as promotion of the product.
Interpretation
Page 59
 The company adopts a variety of promotional methods such as
paper insertion, telemarketing, display stalls, participating in
exhibition, direct mail, presentations and showrooms.
Graph 9
Methods of promoting the products
Page 60
Table No. 10
Table representing the discount if given on

repeat purchase
Discounts Given No. of Respondents Percentage

Yes 27 90
No 3 10
Total 30 100
Analysis
 90% of the respondents are of the opinion that the discount is given
on repeat purchase.
 10% of the respondents are of the opinion that discounts are not
given on repeat purchase.
Interpretation
 Majority of the respondents is of the opinion that discounts are
Page 61
Graph 10
Discounts given on repeat purchase
Page 62
Table No. 11
Table representing the percentage of discounts

given on repeat purchase
Percentage of No. of Respondent Percentage

Discount
2 – 5% 20 66
6 – 10% 5 17
11 – 15% ─ ─
16 – 20% ─ ─
None 5 17
Total 30 100
Analysis
 66% of the respondents are of the opinion that 2-5% discount is
 17% of the respondents opine that 6-10% of discount is given on
repeat purchase.
 17% of the respondents are of the opinion that no discount is given
on repeat purchase.
Interpretation
 Majority of the respondents are of the opinion that 2-5% discount is
Page 63
 The company does not adhere to any stringent norm while giving
discount on repeat purchase as there is difference of opinion
among the respondents.
Graph 11
Percentage of discount given on repeat purchase
Page 64
Table No. 12
Table representing the way of marketing of the

products
Way No. of Respondents Percentage

Direct marketing 30 100
(Showroom)
Retailers ─ ─
Dealers ─ ─
All of the above ─ ─
Total 30 100
Analysis
 100% of the respondents are of the opinion that the marketing of
products are through direct marketing.
Interpretation
 The products are marketed through direct marketing and dealers
and retailers are not involved in the marketing process.
Page 65
Graph 12
The way of marketing of the products
35
30
30
25
20 Direct marketing
Retailers
15
Dealers
10 All of the above
5
0 0 0
0
No. of Respondents
Page 66
Table No. 13
Table representing the target consumers
Target No. of Respondents Percentage

Upper class 27 90
Middle class 3 10
Lower class ─ ─
Total 30 100%
Analysis
 90% the target customers are from upper class.
 10% of the target customers are from middle class.
Interpretation
 The target consumers are the upper class and the middle class.
Page 67
Graph 13
The target consumers
Page 68
Table No. 14
Table representing the kind of incentives

received by the employee
Kind of incentives No. of Respondents Percentage

Commission ─ ─
Schemes ─ ─
Free gifts ─ ─
Recognition 17 57
Nothing at present 13 43
Total 30 100
Analysis
 100% of the respondents are of the opinion that no incentives are
given at present.
Interpretation
 No incentives are given to the marketing personnel at present.
Page 69
Graph 14
Kind of incentives received by the marketing

personnel
Page 70
CHAPTER – 5
SUMMARY OF FINDINGS AND CONCLISION
A Summary of Findings:
The finding can be grouped together into two broad categories such as;
Specific Findings:
 This is pertaining to the objectives of the study.
General Findings:
 This is with regard to the market dynamics and visits made by the
researcher to companies having almost similar products profile.
Specific Findings:
1. The company adopts a variety of promotional methods such as paper
insertion, telemarketing, display stalls, participating in exhibitions,
direct mail, presentations and showrooms.
Page 71
2. Though brand names like Godrej and Trident Inter Wood came into
the picture but the fact reveals that there is no dominant player in the
market. So every player is vying with each other to capture a larger pie
in the markets.
3. Transparency is maintained at the levels of the organization.
4. The products are marketed through direct marketing (showroom) and
dealers are not involved in the marketing process so far.
5. The activities carried out by each and every department of the
organization is systematic.
General Findings:
1.Foreign companies can invest up to 100% in most of the manufacturing
industries in India, including furniture.
2.With the vast array of modular option available in market, the consumer
isn’t really strapped for choice.
3.Italian manufacturers have now entered the Indian markets. Moreover,
furniture made from Asian Teak Wood which is available in the rich rain
forests of Malaysia is flooded in the Indian market. In a nutshell, this
means to say that the competition is very intense.
Page 72
4.Many branded companies outsource the products because of which the
delivery time of the product ordered is stretched. In this respect, Ferror
Dek has an added advantage.
5.With respect to the foil, Ferror Dek offers a wide range of colors. This
gives it an edge over the others.
6.“Quality never comes cheap”. This is true but at the same time, it is also
true that quality can come at a reasonable price. With regard to the
quality, products of Ferror Dek are at par with the other players having
brand names and at the same time the products are reasonable priced.
7.With regard to home furnishings, most of the companies have
standardized products but the products of Ferror Dek are customized.
This can be rightly marked as the strength of the company.
8. Majority of the marketing executives are male.
9. The prices of the products are reasonable though they are competitive.
10. The products are of good quality and are at par with other competitors
having brand names.
Page 73
11. Modular kitchens are sold more per month. So, this area needs greater
focus.
12. Reasonable pricing, customized products, quality and finishing
contributes in differentiating the products of the organization from that
of the others.
13. Apart from price of the product, design and delivery time of the product
ordered play a crucial role in triggering out demand generation of the
product.
14. Discount is given on repeat purchase.
15. The company does not adhere to stringent norm while giving discount
on repeat purchase.
16. The target consumers are the elite and upper middle class.
17. No incentives are given by the company to its marketing personnel at
present.
Page 74
CONCLUSION
“No man has the right to dictate what other men should perceive, create or
produce, but all should be encouraged to reveal themselves, their perceptions
and emotions and builds confidence in their creative spirit!”
This inspiring thought of Ansell Adams is well appreciated by new style
marketing organizations which understand that “boxes and lines” structures
can’t drive value in fast moving environments. No doubt, Ferror Dek Pvt. Ltd.
is one of them because they believe in teamwork. Today, the need of the
Indian consumer evolves beyond “roti, kapada aur makaan”. The game in the
new-breed furniture industry is no longer furnishing. It is about “home
dressing”. To capture opportunities continually, the company must have a
continual flow of ideas. Transforming a pipeline full of ideas into a value –
generating portfolio of products and services is hard. Herein, lays the
importance of co-ordination.
A home is not just a living space but one’s statement of individuality to the
world. Big or small, it’s all about adding own touch to one’s home to make it
unique – a perfect blend of form and function. With the ever increasing
number of house-hold items, a highly dynamic and always on the move job
profiles, it is crucial for people to employ efficient storage spaces that are
affordable to purchase. The modular kitchen of today is the epitome of
Page 75
functionality and multi-purpose aspects. With the rise in income and the
infiltration of western luxury goods have created a cultural shift towards
materialism and consumerism. Ferror Dek with its unique strength provides
customer solution that offers the perfect balance of quality and economy.
In today’s crowded market place, where products and services are touting
themselves to be the best, it is vital to stand out in the crowd. From the
various channels of advertising, point of sale displays and how the employees
are relating to the customers. It is important for Ferror Dek Pvt. Ltd. to
establish and reinforce an unmistakable brand and corporate identity in all
channels of fickle minded consumers. Herein, lays the importance of the
Japanese proverb which says – “Thinking without action is a daydream and
action without thinking is a nightmare”.
Page 76
CHAPTER – 6
RECOMMENDATIONS AND SUGGESTIONS
This chapter lists the various recommendations and suggestions with
respect to the findings and in congruence with the objectives of the study.
Recommendations:
1.It’s overwhelming to find out that the organization works in a systematic
manner. A blend of co-ordination will definitely enhance the
performance of the company.
2.Quality clubbed with reasonable pricing and quick delivery made the
product of the company stand apart. The marketing campaign should
focus on this aspect and made according to its line.
3.The strength of the company is its customized products. This very fact
must be highlighted in the marketing campaign.
4.As the products are reasonably priced, the ambit of the target consumers
should be stretched so that middle class consumers also fit into it.
Page 77
5.The company must stick to a norm while giving discounts on repeat
purchase. This will certainly help in sales promotion in order to create
repeat purchase.
6.In order to have a rapid market access, the company can include
dealers, if not retailers at the moment.
7.The company should focus the marketing strategies on Modular kitchens
in the home furnishing arena as it is moving in the market rapidly.
8.The company can introduce some reward schemes so that a person is
benefited after the fulfillment and over achievement of the target. This
is predominantly done to motivate the sales force and enhance their
performance.
9.Other than emphasis on design, craftsmanship and product quality, the
company’s unique strength also lies in its capability as a fully –
integrated furniture manufacturer. This fact should be highlighted
during the advertisement campaigns.
10. The need of the hour is aggressive marketing.
Suggestions:
Page 78
1.Everyone is aware of the growth in wealth and change in lifestyle among
Bangalore’s novae riche. So the marketing campaign should be
designed to woo the customers.
2.The company should explore all possible ways in order to aggressively
sell its products. So, the company can register itself in Furniture.co.in
as it is India’s biggest online B2B plan with largest virtual furniture
directory.
3.The construction industry is in boom. In order to tap the potential market,
the Company can advertise in a magazine named ‘Builders Grid’. This
will help in showcasing the products of the magazine. This can add an
extra spice to sales.
4.Feng Shui items are gaining prominence right at the moment. Feng Shui
describes the wood personality as one possessing good decision
making skills, idealism, imagination, compassion and the ability to
create change. The fact can help in emotional marketing of the product
and also combat competition from Godrej whose modular kitchens are
made of steel.
5.In today’s crowed market place in order to increase the size of the pie,
the Company can adopt innovative promotional strategies. One of them
Page 79
can be suggested as ‘Dream House’ road shows. It will help in creating
and reinforcing the Company’s identity in the minds of the consumer.
6.In order to be extra ordinary, the Company has to walk the extra mile. A
method named ‘Experimental Marketing’ can be adopted by the
Company wherein the prospective consumers can be invited to visit the
showroom and touch and feel the products.
7.Since the competition is intense, so there should be some value addition
so as to make the Company stand apart in the market. One such way
is to improvise the customer service.
8.Consumer is the king in the market. This fact should be deeply rooted in
the minds of the employees. The Company can adopt some ways to
listen to the customer’s feedback which should be noted in writing so
that it will help in continual improvement and make the company to be
in the right track always. Moreover, a sense of involvement will be felt
by the customers whish can give the company a cutting edge.
Page 80
APPENDICES AND ANNEXURES
A copy of the questionnaire, some eye sizzlers showcasing the products of
the company and paper insertion are enclosed herewith.
QUESTIONNAIRE
1) Name:
2) Address:
3) Designation:
4) Sex:
a) Male
b) Female
5) Type of products dealing with
a) Home furnishing
b) Office furnishing
Page 81
6) How are you priced?
a) High
b) Reasonable
c) Competitive
d) Low
7) Who is your major competitor?
8) What is your competitor’s strength? / What makes you ahead of
him?
a) Quality
b) Brand image
c) Pricing
d) Promotional activities
9) With respect to other competitors how do you rate yourself in terms
of quality?
a) Good
b) Very good
c) Fair
d) Poor
Page 82
10)Which products are sold more per week/per month?
11) What specific merits do you think will differentiate your products
from others?
a) Reasonable price
b) Quality
c) Customized products
d) Finishing
12)How important do you feel that the following factors play a major
role in demand generation on a scale of 1-5?
a) Price of the product
b) Awareness about the product
c) Delivery time of the product ordered
d) Presentation of the product
e) Design of the product
5- Very important
4- Important
3- Makes little differences
2- Not important
1- Does not make any difference
Page 83
13)How do you promote your products?
a) Paper insertion
b) Telemarketing
c) Display stalls
d) Participating in Exhibition
e) Direct mail
f) Presentations
g) Showrooms
h) All of the above
14) A) Do you give any discount on repeat purchase?
a) Yes
b) No
B) If yes how much discount do you give?
a) 2-5%
b) 6-10%
c) 11-15%
d) 16-20%
e) None
15)How are you marketing your products?
a) Direct marketing
b) Retailers
c) Dealers
d) All the above
Page 84
16)Who are your target consumers?
a) Elite class and upper middle class
b) Middle class
c) Lower middle class
d) Corporate
17)What kind of incentives are you getting?
a) Commission
b) Schemes
c) Free gifts
d) Recognition
e) Nothing at present
THANK YOU!
Page 85

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A Study on Sales Promotion

“Marketing is a social and managerial process by which individuals and

exchanging products of value with others”.

Marketing includes all those activities having to do with effecting changes in

the ownership and possession of goods and services. It is that part of

by the exchange of goods and services for some valuable consideration.

- American Marketing Association.

Marketing is the process of discovering and translating consumer wants into

Marketing consists of analyzing marketing opportunities, researching and

selecting target markets, designing marketing strategies, planning marketing

programs and organizing, implementing and controlling marketing effort.

research the selected market by measuring and forecasting attractiveness of

strategy must be transformed into marketing programs by deciding on

marketing resources and implementing and controlling the marketing plan.

marketing objectives in the target market.

McCarthy has popularized a four factor classification of marketing tools known

as the 4P’s of the marketing mix. They are:

associated services to a product. From the customer’s point of view, it helps in

satisfying the customer’s needs and wants.

pricing objectives, setting the price, discounts, allowances, payment policies

the customer has to pay to gain the product value.

to make the product accessible and available to the customer. It involves

market size, channel selection and management, storage and physical

distribution with the ultimate purpose of efficiently supplying the company’s

Promotion stands for various activities the company undertakes to

communicate and promote its products to the target market. It involves

communication programs i.e. direct marketing, advertising, sales promotions,

provides knowledge and information.

The Promotion Mix of a company includes the following tools;

It is any paid form of non-personal presentation and promotion of ideas,

goods or services by an identified sponsor.

to communicate with or solicit a response from specific customers and

purpose of making a sale refers to personal selling.

Public Relations and Publicity:

It refers to the variety of programs designed to promote and or protect a

company’s image or its individual products.

The short-term incentive to encourage trial or purchase of a product or

service refers to sales promotion. Whereas advertising offers a reason to buy;

sales promotion offers an incentive to buy. Since sales promotion directly

push up the sales, increasing number of companies are undertaking sales

Sales promotion refers to the short-term incentives to encourage sales of a

product or service. It consists of a diverse collection of incentive tools, mostly

short-term, designed to stimulate quicker and greater purchase of products or

Purpose of Sales Promotion

to attract new customers, to reward loyal customers and to increase the

repurchase rates of occasional users. Sales promotion usually targets brand

loyalty to other products.

Sales promotions also let manufacturers adjust to short term changes in

manufacturers to experiment by varying prices. Sales promotions also lead to

greater consumer awareness of prices.

Objectives of Sales Promotion

the target market. For consumer promotions, objectives include encouraging

inventory, encouraging off-seasonal buying, of-setting competitive promotions,

sales force promotions help in encouraging support of a new product or

model, encouraging more prospecting and stimulating off-seasonal sales. But

most importantly, sales promotion should be focused on consumer

Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives.

Descriptions of the main promotional tools are as follows;