A STUDY ON SALES PROMOTION EFFECTIVENESS

AN INTERNSHIP REPORT SUBMITTED TO

SRM UNIVERSITY

In partial fulfillment of the requirements for the award of the

Degree of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
HARSHINI MADDI
3511210464

Under the Guidance of

Mr. P.SARAVANAN
Assistant Professor (Sr.G)

Faculty of Engineering and Technology

School of Management
Kattankulathur-603203
AUG 2013
 SCHOOL OF MANAGEMENT
SRM UNIVERSITY
KATTANKULATHUR CAMPUS
CERTIFICATE

This is to certify that the project report entitled “A STUDY ON SALES PROMOTION

EFFECTIVENESS”, Submitted by Harshini Maddi (Reg. No: 3511210464) in partial

fulfillment for the final project in awards of Master of Business Administration of SRM

University- Kattankulathur, who carried out the project work under my supervision. Certified

further, that to the best of my knowledge. The work reported here in does not form part of any

project report or dissertation on the bases of a degree or award was conferred on the earlier

occasion on this or any other candidate. The assistance and help received during the course of the

investigation has been fully acknowledged.

Dr. JAYSHREE SURESH P.SARAVANAN

Dean Assistant Professor (Sr.G) & Project Guide

Submitted to the School of Management Studies, SRM UNIVERSITY (Kattankulathur Campus)

for the examination held on __________________.

Internal Examiner External Examiner

 DECLARATION

I, Harshini Maddi, hereby declare that the project Report, entitled “A STUDY ON SALES

PROMOTION EFFECTIVENESS” , submitted to the SRM University in partial fulfilment of

the requirements for the award of the Degree of Master of Business Administration is a record of

original work undergone by me during the period June-July 2013 under the supervision and

guidance of P.SARAVANAN Assistant Professor (Sr.G), School of Management Studies, SRM

University, Kattankulathur and it has not formed the basis for the award of any

Degree/Fellowship or other similar title to any candidate of any University.

Place: Chennai Harshini Maddi

Date: 3511210464
 ACKNOWLEDGEMENT

In the course of this project, I have received help from a number of people. I would like to take

this opportunity to thank them all. I am grateful to our College Administration for giving me an

opportunity to do this Project.

It is my great pride and privilege to appreciate our respected Dean Dr.Jayashree Suresh and my

beloved project guide Mr. P.SARAVANAN , Dept. of Business Administration, S.R.M. School

of Management, who have motivated and encouraged me with their tireless guidance and support

for the successful completion of this project.

I would also extend my heartfelt gratitude to the Managing Director Mr. Manohar Gangireddy

and my organization project guide Mr.U.Subramanyam Lotuswaveg – Hyderabad, for their

support and valuable time spent to make this project a reality. I am also thankful to the

employees of Lotuswaveg – Hyderabad.

Last but not the least; I would like to thank the almighty and all our faculty members, friends and

family for their support and inspiration.

Harshini Maddi
 ABSTRACT

This project work is based on ―A STUDY ON SALES PROMOTION

EFFECTIVENESS”. The main objective of the study is to know the effectiveness of sales
promotion activities.

The study explains about brief outline of the company profile and industry profile. The
objectives of the study, scope and limitation and methodology applied. Analysis and
interpretation is explained.

The primary data is collected through questionnaire and secondary data is collected through
internet, books, journals etc. On the basis of the study topic questionnaire is prepared and
responses are collected and then analysis and interpretation is done. Then findings,
recommendations and conclusions are given.

Researcher in common refers to a search for knowledge. The Researcher selected descriptive
research for study. The technique used here is convenient sampling. Sampling size taken is 20,
total population is around 50 according to convenient sampling 20 respondents have been taken
and survey has been conducted. Met different managers and inchargers of the companies and
survey had been conducted, due to various limitations the main decision makers of the company
cannot be met, after collecting data it is analyzed and tables and diagrams are shown.

The analysis is done with the help of various statistical tools such as percentage analysis, chi
square analysis, and correlation. Some of the valuable suggestions are the company can improve
sales if the management provide more advertisement through various media. The company must
look for the price of their product against their competition.
TABLE OF CONTENTS

CHAPTER TITLE PAGE

NO. NO.
COVER PAGE I
TITLE PAGE II
DECLARATION III
BONAFIDE IV
COMPANY CERTIFICATE V
ACKNOWLEDGMENT VI
ABSTRACT VII
TABLE OF CONTENTS VIII
LIST OF TABLE IX
LIST OF CHARTS X
1 INTRODUCTION 1
1.1 INDUSTRY PROFILE 2
1.1.1 Corporate Branding 2
1.1.2 logo design 3
1.1.3 Brochures and Leaflets 3
1.1.4 Labels and Stickers 4
1.1.5 Web site Designs 4
1.2 COMPANY PROFILE 5
1.2.1 Organizational structure 7
1.3 REVIEW OF LITERATURE 8
1.3.1 Sales Promotions 8
1.3.2 Promotion Objectives 10
1.3.2.1 Final Customer Promotions 10
1.3.2.2 Customer Promotion Objectives 10
1.3.2.3 Trade Promotions: 11
1.3.2.4 Advertising And Promotion 12
1.3.3 Types Of Final Customer Promotions 13
1.3.4 Types Of Trade Promotions 15
1.3.5 Evaluating Customer Promotions 17
1.3.6 Promotion Effects 19
1.3.7 Test Market 20
1.3.8 Evaluating Trade Promotions 21
1.4 STATEMENT OF PROBLEM 23
1.5 OBJECTIVES OF THE STUDY 23
 1.6 LIMITATIONS OF THE STUDY 24
1.7 SCOPE OF THE STUDY 24
1. RESEARCH METHODOLOGY 25
2 DETAILED STUDY OF VARIOUS FUNCTIONAL 26
DEPARTMENTS
2.1 Human Resource Department 26
2.2 Training and Development 28
2.3 Marketing Department 29
2.4 Finance Department 30
3 DATA ANALYSIS 39
& INTERPRETATION
4 FINDINGS & SUGGESTIONS 57
4.1 FINDINGS 57
4.2 SUGGESTIONS 57
5 CONCLUSION 58
BIBLIOGRAPHY 59
ANNEXURE 60
QUESTIONNAIRE

LIST OF TABLES
TABLE CONTENTS PAGE
NO. NO.
3.1 Age Group 39
3.2 Gender 40
3.3 Information usually sought from 41
3.4 Kind of information preferred by respondents in a promotion 42
3.5 The media that is looked for searching the information 43
3.6 Reliability on sales promotion 44
3.7 Change in perception of a product or service by just seeing the sales 45
promotion
3.8 Necessity of sales promotion for decision making 46
3.9 Highlights of the sales promotion 47
3.10 Referred association of sales promotion 48
3.11 Important criteria for a sales promotion 49
3.12 Response to repeated sales promotion in tv\radio 50
3.13 Important of a brand ambassador for sales promotion 51
3.14 The role of internet sales promotion on creating brand preference 52
3.15 Reliability of internet as a source of information 53
 3.16 Relationship between gender and internet as most reliable source of 54
information
3.17 Correlation of relying on sales promotion and changing perception of 56
a product by seeing sales promotion

LIST OF CHARTS
TABLE CONTENTS PAGE
NO. NO.
3.1 Age Group 39
3.2 Gender 40
3.3 Information usually sought from 41
3.4 Kind of information preferred by respondents in a promotion 42
3.5 The media that is looked for searching the information 43
3.6 Reliability on sales promotion 44
3.7 Change in perception of a product or service by just seeing the sales 45
promotion
3.8 Necessity of sales promotion for decision making 46
3.9 Highlights of the sales promotion 47
3.10 Referred association of sales promotion 48
3.11 Important criteria for a sales promotion 49
3.12 Response to repeated sales promotion in tv\radio 50
3.13 Important of a brand ambassador for sales promotion 51
3.14 The role of internet sales promotion on creating brand preference 52
3.15 Reliability of internet as a source of information 53
3.17 Correlation of relying on sales promotion and changing perception of 56
a product by seeing sales promotion
 CHAPTER 1
1. INTRODUCTION
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.

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.

Promotion is an exercise in information, persuasion and influence. Promotion has come to

mean the overall co-ordination of advertising, selling, publicity and public relations.
Promotion is a helping function designed to make all other marketing activities more
effective and efficient. Advertising and sales promotion are the central elements in a company's
communication strategy.

The American marketing Association to bring a semblance of uniformity and better

understanding in the semantics jungle in the field of marketing. It defined `Advertising as
any paid form of non personal presentation and promotion of ideas, goods or services by an
identified sponsor'.

Sales Promotion is defined by the American Marketing Association in a specific sense to

mean: those Marketing activities, other than personal selling. Advertising and publicity that
stimulate consumer purchasing behavior and dealer effectiveness, such as display, shows and
exhibitions, demonstrations and various non recurrent selling efforts not in the ordinary routine.
1.1 INDUSTRY PROFILE

1.1.1 Corporate Branding:

Corporate branding is the practice of using a company's name as a product brand name. It is an
attempt to use corporate brand equity to create product brand recognition. It is a type of family
branding or umbrella brand. Disney, for example, includes the word "Disney" in the name of
many of its products. This strategy contrasts with individual product branding, where each
product has a unique brand name and the corporate name is not promoted to the consumer.

Corporate branding can result in significant economies of scope since one advertising campaign
can be used for several products. It also facilitates new product acceptance because potential
buyers are already familiar with the name. However, this strategy may hinder the creation of
distinct brand images or identities for different products: an overarching corporate brand reduces
the ability to position a brand with an individual identity, and may conceal different products'
unique characteristics.

Corporate branding is not limited to a specific mark or name. Branding can incorporate multiple
touch points. These touch points include; logo, customer service, treatment and training of
employees, packaging, advertising, stationery, and quality of products and services. Any means
by which the general public comes into contact with a specific brand constitutes a touch point
that can affect perceptions of the corporate brand.

It has been argued that successful corporate branding often stems from a strong coherence
between what the company’s top management seek to accomplish (their strategic vision), what
the company’s employees know and believe (lodged in its organizational culture), and how its
external stakeholders perceived the company (their image of it). Misalignments between these
three factors may indicate an underperforming corporate brand. This type of corporate brand
analysis has been labeled the Vision-Culture-Image (VCI) Alignment Model
1.1.2 Logo design
Logo design is an important area of graphic design, and one of the most difficult to perfect. The
logo (ideogram), is the image embodying an organization. Because logos are meant to represent
companies' brands or corporate identities and foster their immediate customer recognition, it is
counterproductive to frequently redesign logos.
Color is considered important to brand recognition, but it should not be an integral component to
the logo design, which could conflict with its functionality. Some colors are formed/associated
with certain emotions that the designer wants to convey. For instance loud primary colors, such
as red, are meant to attract the attention of drivers on highways are appropriate for companies
that require such attention. In the United States red, white, and blue are often used in logos for
companies that want to project patriotic feelings. Green is often associated with the health and
hygiene sector, and light blue or silver is often used to reflect diet foods. For other brands, more
subdued tones and lower saturation can communicate reliability, quality, relaxation, or other
traits.
Choosing the logo's colour, shape and size is an important decision. It represents the company's
name for future years. It is a vital and irreplaceable component in the success of a corporation.

1.1.3 Brochures and Leaflets

Brochures are advertising pieces mainly used to introduce a company or organization, and
inform about products and/or services to a target audience. Brochures are distributed by mail,
handed personally or placed in brochure racks. They are usually present near tourist attractions
and hotels.
The most common types of single-sheet brochures are the bi-fold (a single sheet printed on both
sides and folded into halves) and the tri-fold (the same, but folded into thirds). A bi-fold brochure
results in four panels (two panels on each side), while a tri-fold results in six panels (three panels
on each side).
1.1.4 Labels and Stickers
A label is a piece of paper, polymer, cloth, metal, or other material affixed to a container or
article, on which is printed a legend, information concerning the product, addresses, etc. A label
may also be printed directly on the container or article.
Labels have many uses: product identification, name tags, advertising, warnings, and other
communication. Special types of labels called digital labels (printed through a digital printing)
can also have special constructions such as RFID tags, security printing, and sandwich process
labels.

Stickers are very widely used when an object requires identification with a word or idea. Brand
stickers may be attached to products to label these products as coming from a certain company.
They may also be used to describe characteristics of the products that would not be obvious from
simple examination. A label dispenser is often used as a convenient way to separate the sticky
label from its liner or backing tape.

1.1.5 Web site Designs

Web designers use a variety of different tools depending on what part of the production process
they are involved in. These tools are updated over time by newer standards and software but the
principles behind them remain the same. Web graphic designers use vector and raster graphics
packages for creating web formatted imagery or design prototypes. Technologies used for
creating websites include standardized mark-up, which could be hand-coded or generated by
WYSIWYG editing software. There is also proprietary software based on plug-ins that bypasses
the client’s browsers versions. These are often WYSIWYG but with the option of using the
software’s scripting language. Search engine optimization tools may be used to check search
engine ranking and suggest improvements.
1.2 COMPANY PROFILE:

Lotuswaveg is a never ending bubble stream, oozing from the ground to the top of the pond.
Every bubble that interacts with sunshine, bursts to create a wave that only stops after reaching
the shores.
Strong bubble source is our association with the market reality: bubbles are the associates whose
commitment drives the company.
lotuswaveg stand on the values and virtues that lotuswaveg have set for themselves, waves are
the realization of their services given to their customers.

VISION: ―lotuswaveg aspires to become a progressive Complete Corporate Branding company

that offers brilliant and Concept Oriented solutions to a diverse range of clients with the best
integration of professionalism‖.

VALUES:
Integrity: lotuswaveg is fair and honest in all their interactions
Respect: lotuswaveg treats their clients, their employees, suppliers and the community with
respect.
Professionalism: lotuswaveg seek to apply the best possible skills, knowledge and experience to
all their services to clients.
Creativity: lotuswaveg encourages innovation, continuous improvement and learning.
Communication: lotuswaveg ensures that their business practices and culture stimulate exchange
of information and knowledge among their staff so that the company and clients benefit from
companies gaining knowledge base.
CLIENTS:

Lotuswaveg Services:
 Graphic designing and printing
 Outdoor advertising
 Corporate identity design
  Product catalogue design
 Flyer design
 Poster design
 Creative calendar design
 Magazine ad design
 Backdrop design
 Logo design
 Corporate brochure design
 Annual report design
 Invitation design
 Product packaging design
 Newspaper ad design
 Bill board design
 Stall design

1.2.1 Organizational structure:

Lotuswaveg-
 Manohar gangireddy-
Director
Experience: 5 years
MBA
 U.Subramanyam-
Regional manager- marketing
Experience 4 years
MBA
 N.Srinivasu-
 Manager business development
Experience 4 years
MBA
 R.Veerababu-
Manager business development
Experience 4 years
B.com and M.com
 A.Shiva Kumar-
Senior graphic designer
Experience 5 years

1.3 REVIEW OF LITERATURE

1.3.1 SALES PROMOTIONS:

Sales Promotions consist of many devices aimed at generating active Customer response within a
short period of time. Interestingly, most of the effort has been receiving an increasingly large
share of the advertising/Promotion budget, particularly for Promotion oriented toward the trade.
Coupons and Promotions play a large role on the web as well. Over 50 percent of both first time
and repeat buyers were influenced by either coupons or free shipping. Promotion competes with
advertising for budget it also provides a different approach to influencing sales. In the case of
advertising, the basic approach is to create or increase a desire on the part of the Customer for
the product itself.
In contrast, most Promotions implicitly assume the level of desire for the product is fixed and try
to "close the deal‖ by providing incentives to purchase. This is, of course, an oversimplification.
A" get them while supplies last" ad focuses on immediate response, and Promotions, Involving
free samples aim at generating repeat business. Nonetheless, Promotions, many of which involve
temporary price reductions, are seen as a form of marketing effort that is more aggressive and
oriented toward immediate results. In reality, one if the few ways product managers can obtain a
short run change in sales or market share is to use sales Promotion activities. In general
 Promotion falls in to three main categories:
1. Final Customer Promotion
2. Manufacturer Promotion to the channels or Trade Promotion.
3. Channel originated Promotion, or Retailer Promotion.

Final Customer Promotion comes directly to the Customer from the manufacturer. Trade
Promotion, in contrast, is directed at intermediate channels of distribution in an attempt both to
get them to buy more of a product and to commit their own effort to "pushing" the product
through the nest channel and ultimately to the consumer. Channel-originated Promotions are run
by the channel itself to either the next channel in the distribution chain or to final Customers.

For consumer packaged goods sold through supermarkets, retailer Promotions are an especially
visible form of Promotions. Displays, feature advertising, and price deals (price cuts, free
merchandise, and retailer-issued coupons) all affect sales and profits and either augment or detract
from manufacturers direct Customer Promotions. In general, the purpose of channel Promotions is
to increase sales of all products to the Customer.

Promotion objectives and programs may be gathering offensive, or defensive. Offensive

Promotion attempt to gain an advantage through exclusively: being the only company to offer a
particular Promotion or level of Promotion support. In most markets, however, competitors
quickly match Promotions. On top of that, in some areas, notably consumer packaged goods; the
channels have become sufficiently powerful to both demand and schedule Promotions. The result
is that companies, including those with household brand names and dominant market shares, are
promoting due more to a perceived necessity to match competition and satisfy the channels than
to a conviction that Promotions benefit the manufacturer.
Many types of consumer products, service and industrial products use sales promotion devices
extensively. Short-term price discounts to consumers are very common in industrial markets. In
addition, farm equipment and office
Products manufacturers, for example, frequently target channel members for promotions which
may or may not passed on to the customers.
1.3.2 PROMOTION OBJECTIVES:
1.3.2.1 FINAL CUSTOMER PROMOTIONS:
Final Customer Promotion, at least for existing or mature products, typically takes a short-
run view. Even when the focus as long-run, such as to generate trial, the operational objective
of most Promotion is to generate immediate response in the form of sales. The possible
advertising objective range from generating awareness to increasing product
understanding to improving attitude towards purchase. In principle, Promotion can be directed
toward any of those goals.

1.3.2.2 CUSTOMER PROMOTION OBJECTIVES:

Objective Programming Typical
I .Long-run(relationship building)
A. Awareness enhancement Sweepstakes, contest, tie-ins
B. Image enhancement Sponsorships
II. Short-run (transactional)
A. Current Customers
1. Buy More Volume discounts/special ―value‖
2. Be more loyal packages
3. Buy now Coupons, premiums. Frequent buyer
B. Occasional Customers(deal Programs Rebates, coupons
prone, brand switchers)
Capture next purchase
C. Non Customers Coupons, display, rebates
Trial sizes sampling

If awareness is the problem, a company can run a Promotion such as a game or sweepstakes
designed to increase awareness of a product rather than to increase immediate sales. Similarly,
a company can run a tie-in Promotion that may, in addition to raising current sales, have a
residual positive impact on brand image. Such relationship-building motives, however,
account for only a small percentage of the Promotion. Once awareness of the product is met
then to improve the sales, is it recommended that to go for the promotion objectives that are
listed above.
By far the most common objective of a consumer Promotion is a short-run goal to generate more
transactions in a short period of time. The objective are implemented in two ways, first we need to
specify from what level sales should increase. The easiest benchmark is last year or last period;
the more difficult measure, but one from which the true success of the program should be gauged,
is what sales would be absent the Promotion Second, we must select the target Customer and
define desired behavior. Basically, you ca focus on getting current Customers to buy more,
capturing occasional but not loyal Customers, or generating sales from current Non Customers.
Many Promotions focus on current Customers, attempting to get them to buy more through a -
volume discount, to be more loyal, or to accelerate their purchases and buy sooner. Attracting
occasional Customers, typically through temporary price cuts such as coupons and rebates, is
effective but also expensive. This is not only produces lower margins on the sales to occasional
Customers but may also lower margins on sales that would have been made in the absence of the
Promotion to either occasional or regular Customers. Hence a major concern ids how to target
Promotions o competitor's Customer alone. Promotions to non-Customers are generally used
when a product is new to generate trial. In a sense, targeting non Customers implies a long-run
relationship-building objective. In addition to their sales-generating role, selectively distributed
Promotions provide a legal means of price discrimination. Special coupons may act as price
discriminators as much as sales promoters.
1.3.2.3 TRADE PROMOTIONS:
The objectives of trade Promotions basically fall into three main categories.
Objective Typical Programs

Transactional: increase stocking levels Volume allowances Financing terms

Discount/price cuts Slotting allowances
Transactional: increase sales efforts Advertising Display allowances Premiums
Allowances Contests
Relationship building Free goods

Relationship building:
The first category focuses on getting the trade to buy or stock the product in greater quantities
by offering various financial incentives. The second category tries to increase the level of
trade support given to the product by means other than increasing their inventories. A variety
of allowances and direct incentives relate to this task. The final set of objectives involves
relationship building, a longer-term objective. One example of relationship-building is to give
extra product to a channel with no explicit strings attached.

An important type of trade Promotion involves participating in trade shows. One major
purpose of trade shows is to entice current and potential channel members to carry a
product. Trade shows are a great business in their own right. Participants have multiple objectives,
including image enhancement, new-product introduction, and competitor monitoring.

Promotion Budgeting Total Advertising and Promotion Budget:

Seven factors have been found to effect the total budget for advertising and sales Promotion for
manufactured products .Companies spend more on Promotion and advertising relative to sales
when
 The product is relatively standardized.
 There are many end users.
 The product is premium priced.
 The product has a high contribution margin.
 The product or service has a small market share.

1.3.2.4 ADVERTISING AND PROMOTION:

Several factors affect this allocation decision. First, the total amount of resources available has a
major impact. If the marketing budget is small, extensive media advertising is usually not
worthwhile unless the target market is local and can be reached by media such as radio and
newspapers, because advertising usually needs a minimum or threshold amount to have any
impact. Beneath the threshold value, the money is virtually wasted. In such cases, spending the
budget on sales Promotion results in a greater market impact than advertising. Second, Customer
factors affect allocation decisions. One relevant aspect of Customer behavior is the degree of
 brand loyalty. Promotion money spent on a product or service exhibiting high levels of loyally
rewards primarily existing Customers. Although this may be what the product manager wants, it
is usually not the best way to spend money. If Customer's are not very loyal, the product manager
should try to understand if their behavior is endemic to the category; if so, there may be an
opportunity to attract brand switchers with Promotions. It is also possible, however that the
product manager has created non-loyal Customers through frequent, price-based Promotions, and
thus all that happens is a temporary swapping of Customers.
A second relevant aspect of consumer behavior is the type of decision required of them. If the
product is complex and therefore requires a fair amount of information processing, more should
be spent on advertising because it is better communications device. Alternatively, most sales
promotion amount is spent on product categories in which decision making is routine and
involves little processing of information about the product.
A third factor affecting allocation decisions is whether advertising and promotion amount high the
unique aspects of the product, consumer franchise building (CFB) aspects. CFB activities are
those that build brand equity, including advertising, sampling, coupon, and product
demonstrations. Non-CFB activities focus on price alone and include trade promotions, short-term
price deals, and refunds.

1.3.3 TYPES OF FINAL CUSTOMER PROMOTIONS:

Deciding on which Promotion element to employ in many ways parallels the media selection
process in advertising:
CONSUMER PROMOTIONS:
I. Product based
A. Additional volume/bonus pack
B. Samples
1. Central location
2. Direct(e.g., mail)
3. Attachment (in-/-on-pack)
4. Media placed (clip-and-send coupons)
 II. Price based
A. Sale price
B. Coupons
 Central location
 Direct (mail)
 Attachment (in-/-on-pack)
 In media (e.g., websites)
C. Refund/rebates
D. Financing
E. Frequent
III. Premiums
IV. Place-based Promotions(physical '1;splays; Internet site based)
V. Games (sweepstakes, contests)

PRODUCT-BASED PROMOTIONS:
One obvious category of Promotions is to give away the product itself. Extra volume packages
bare common in consumer products. Even more dramatic are completely free products. Coupons
for free goods show up in the mail, on or in packages of the good, or in media vehicles. Computer
hardware and software companies often give free copies of their products to select Customers as
"beta" test sites to help get any bugs out and stimulate early word of mouth. Sampling has the
obvious benefit of stimulating product trial because it gives the shortcomings. First, it is very
expensive. Second, it may not target the right potential Customers; people who distribute free
samples in supermarkets or on street corners are not very discriminating about to whom they give
the product
PRICED-BASED PROMOTIONS:
Another obvious type of Promotion involves price. The use of sale price is understated if we
describe them as being "widespread". Unfortunately, most short-term price reductions are not
narrowly targeted because all buyers, including extremely brand-loyal ones, have access to in-
store price reductions.
More targeted price reductions that require at least some effort on the part of the consumer
involve coupons. Coupons are one of the very few ways to legally implement price
discrimination, that is, charge different prices to segments with different sensitivities to price by
delivering targeted coupons. The use of attachment coupons allows a more focused price cut,
though outright theft and trading of coupons are common As just noted one advantage of coupons
is that they can be delivered by mail, at the cash register, or even through the Internet to carefully
targeted audiences.

In addition, because they normally have to be cut out and physically carried to the point of
transactions, coupons require more commitment to purchase the product, and thus may engender
more repeat purchases. They are also flexible because they can be designated for larger package
sizes, a now flavor extension, and the like.

Other, price-based consumer Promotion is also options. Refunds and rebates are common and
effective, though the long-run effects may be negative. Frequent user programs such as those
offered by supermarkets, sporting goods stores etc, are useful for encouraging brand loyalty and
allow consumers to buy products at a discount after they have accumulated a sufficient number of
points.

OTHER CUSTOMER PROMOTIONS:

In addition to product - and price-based Promotions, other elements of the marketing mix can be
used to meet company objectives. Point-of-purchase displays are common; notice the checkout
and end-of-aisle displays at any supermarket. One popular form of place-based Promotion is the
exposition at which manufacturers congregate to display and sell their wares. Another inducement
to purchase is free service. In addition, various premiums have proven effective.

1.3.4 TYPES OF TRADE PROMOTIONS:

Trade Promotions are directed not to the final Customer but to the channels through which the
goods are sold. Like consumer Promotions, they can be broken into five categories
Trade Promotions:
I. Product based
A. Free goods
B. Consignment/returns policy
II. Price based
A. Buying allowances
B. Financial terms
III Place based
A. Slotting allowances
B. Display allowances
C. Warehousing/delivery assistance
IV Advertising and promotion based
A. Co-op advertising
B. Selling aids
C. Co-op selling
V Sales based
A. Bonuses and incentives
B. Contents and prizes
Product-based Promotions include free goods and generous returns policies. Returns policies
allow the channel to return unsold merchandise for a full or partial refund, reducing the risk of
carrying the product. Price deals include various volume discounts and allowances, as well as
financing terms such as long period of time before payment is due or below-market interest
rates.
Place-based allowances are especially for consumer packaged goods. Slotting allowances,
which are basically payments for placing a product on the shelf, have become increasingly
important as power has shifted from manufacturers to retailers. These fees charged to
manufactures have had a negative effect on the number of competitors in many product categories
and have been particularly hard on small companies, for which the fees can become prohibitive.
Display allowances compensate retailers for prominent display of goods.

Other Promotion involve reducing inventory and transportation costs by either warehousing the
goods for the channel or paying all or part of delivery charges. Providing selling assistance is also
common. In addition to selling aids companies often provide cooperative advertising, sharing the
channel's advertising expense.
1.3.5 EVALUATING CUSTOMER PROMOTIONS:
The easiest approach to evaluating Customer Promotion is to simply look at incremental
results during the period of Promotion. This method provides a useful starting point, but may lead
to an overestimate of the benefit of Promotion because it ignores both where the sales come from
and the long-term consequences of Promotion. As with evaluating advertising effects, a standard
approach to measuring the impact of sales Promotion is tracking.
EVALUATING SALES PROMOTION: TRACKING STUDIES

As shown in above picture of simple tracking approach with point A on horizontal axis
representing the time when the Promotion say, a price reduction -is given to end consumers.
Tracking studies such as these are used frequently because the effects of sales Promotion often
show up quickly. Unfortunately, product managers tend to look at the shaded above point a as
shown. The simple analysis could be made is the gain could be offset by the crosshatched
"dip" at point B, representing the possibility that consumers have increased their inventories
at home, thus negating the need to rebuy soon.
The gain must be evaluated relative to a base amount: the amount of sales that would have been
generated had the Promotion not to run. This base line calculation is somewhat difficult because
it will change by the time. The analysis does not account for other factors in the
marketplace, including actions by both the product in question and the competition.
If products have several Promotions running simultaneously, it is difficult to separate the effects
of one Promotion from another.

SHORT-RUN EVALUATION:
Sales increase from Promotions may be generated by accelerating purchasing by loyal buyers.
Many coupon redeemers, May be Customers who would have bought the product anyway and
simply used the coupon as "found of money" or, at best, bought the products somewhat sooner
than they would have in the absence of a Promotion. Basically, a coupon can have several
incremental impacts:
•Accelerated regular purchase—that is, regular buyers of the brand simply buy sooner
•Accelerated captured purchases—purchases that neither would have bought at the time nor
bought the promoted brand but are persuaded to do both by the Promotion.
•Uncelebrated regular purchases—regular buyers who use the coupon as a "bonus" price cut.
•Uncelebrated regular purchases—purchases of other brands who switch to the promoted brand
because of the Promotion.
Obviously, categories 2 and 4 are pluses and category 1 also represents incremental sales, albeit
borrowed ones. Category 3 is basically a negative. Category 1 is potentially but not necessarily
negative. If subsequent sales are depressed as a result of increased inventory, there is no benefit
and a clear cost. Of course, one possible benefit of Promotion is that "captured" buyers will
remain loyal and repeat purchase the promoted brand on a subsequent purchase occasion. It is
possible that Promotion increases category purchase quantity, either with or without depressing
future purchase quantity. Interestingly, considerable evidence seems to suggest that increased
quantity due to Promotion is neither preceded nor fallowed by decreased quantity purchased.
To assess the value of Promotion, then it is necessary to estimate both the source of additional
sales and its overall magnitude. Some Promotions have lower redemption rates than others that
are freestanding insert coupons versus on-pack or register a price discount, which lessen their
negative impact on profit margins but at the same time decreases their impact on quantity. The
main point here is that it is possible to estimate the impact of a Promotion through systematic
analysis and that the results of such analysis are often quite sobering.
In addition to the direct effects of manufacturer Promotions on Customer, the Promotion has an
indirect impact on channel (retailer) behavior. Notice that a major factor affecting the profitability
of Promotions is whether or not a good is easily stockpiled. Perishable goods and services cannot
be stockpiled and hence paper towel Promotions tend to result in stockpiling, and, if Promotion is
matched by competitors, actually lead to lower profits. In contrast, Promotions on underused
services or perishable goods may produce increasing profits.
LONG-RUN CONCERNS:
Promotion also has two important long-run impacts. First is the impact of Promotion on Customer
perceptions of the brand. Brand bought on Promotion may be seen as lower in quality and, the
extreme, something it make sense to buy only on deal. A recent study suggests when long-run
negative impacts are considered, the total positive impact of a Promotion is only one-third its
short-run impact.
COMPETITIVE REACTION:
There is also concern about the impact of Promotions on competitors. Most markets are
oligopolies, and hence decisions need to take likely competitive reactions into account. Not
surprisingly competitors often match Promotions quickly, thus negating many of the possible
benefits while increasing costs. A Promotion spiral can ensue with great benefit to Customers and
harm to companies’ profits.

1.3.6 PROMOTION EFFECTS:

Scanner data have been used extensively to assess the effects of Promotion on buying behavior.
We know consumers use coupons extensively. Further, while some consumers purchase at regular
intervals, some accelerate purchases and stockpile goods in response to Promotions.
Given the prevalence of scanner data for supermarket and drugstore products, it is not surprising
that a large number of models have been developed to use them to asses the impact of marketing
variables such as Promotion or assuming primary demand (market size) is constant on share. The
models generally assess the value of each brand to an individual Customer as a function of several
components:
 The inherent value of a brand-size combination. This is either treated holistically or
further decomposed into product attributes.
 The non-product marketing mix elements: price, Promotion, the amount of the
Promotion, and advertising.
  Carryover effects of past purchases.
 Customer loyalty or inertia
Scanner data are not a perfect means for assessing the impact of Promotions. They generally
include only household-level data, do not cover purchases at non-scanned stores, and exclude
many potential influences on sales. They are, however, a useful and unobtrusive means for
evaluating both natural and controlled experiments. Scanner data are increasingly being used to
compare different Promotions and provide directional guidance to managers.
The impact of Promotion to the most is based on analysis of consumers packaged goods and here
are some of the analyses made:
 Temporary retail price reductions substantially increase sales.
 Higher market share brands are deal elastic
 The frequency of deals changes the consumer's reference price.
 The greater the frequency of deals, the lower the height of the deal.
 Cross-Promotional effects are asymmetric, and promoting higher-quality
brands affects weaker brands disproportionately.
 Retailers pass through less than 100 percent of trade deals
 Display and feature advertising have strong effect on item sales.
 Advertised Promotions can result in increased store traffic.
 Promotional affect sales in complementary and competitive categories.

1.3.7TEST MARKET:
Test markets are as useful for evaluating different sales Promotions as they are for advertising
copy or pricing experiments. A product manager can attempt different combinations of free
samples, end-of aisle displays, coupons, and special price Promotion over a period of time, using
some stores as the Experimental group and others with no promotional activity as the control
group.
The above figure shows that of a result of a special display experiment run in a Behavior
Scan market. It can be seen that a significant spike in unit sales occurred around the data
when all of the special displays were installed. An interesting result is that although the sales
in the experimental stores were lower than those in the control stores after the experimental
period, there was no large "through," thus implying that the net effect was quite positive.

1.3.8 EVALUATING TRADE PROMOTIONS:

The results of earlier has shown that many users of consumer Promotion would have bought the
product anyway, so they simply pocket the value of the Promotion stock up at the low price. A
similar problem exists for trade Promotions, the issue of "gray markets". Gray markets involve
authorized dealers or retailers that buy the product from the producer and then resell it to other,
unauthorized dealers. This practice is common when a company offers a volume discount and
multiple dealers in effect pool their orders to obtain it. Various Internet-enabled consortia have
sprung up to take advantage of these discounts.
Further, although many trade Promotions involve implied cooperation on the part of the channel,
these provisions are hard to monitor and enforce. Put differently. Although the manufacturer's
objectives are best served when Promotions are passed through to consumers, channels' profits are
often increased by retaining all or a substantial amount of a Promotion allowances as profit. One
way to evaluate trade Promotions is as a necessary cost of doing business, an explicit recognition
of the growing power of mass merchandisers in consumer packaged goods marketing.
Trade Promotion now accounts for more of the Promotion budget than either advertising or
consumer Promotions. One reason is a key to increased volume.
Trade Promotion consisted of three basic types—off-invoice discounts, sales drive discounts, and
special fall premiums—and their effects were treated separately. The model included an "end-of-
deal" variable to account for orders placed during the deal period but not shipped until the next
period. The sales drive consisted of a percentage payment to channel when it sold units to the
retailer. The special fall premium was direct payment to the Manufacturer/s own sales force. To
remove the impact of the direction sales force were headed on their own the model also used a time
trend term.

A different approach uses an expert system style modeling method (promoter) based on the
results of many past Promotions. This approach begins by developing a baseline sales level based
on trend and seasonality plus any unusual factors that may have affected sales. Basically, a baseline
estimation procedure relies on periods when Promotion is zero. Incremental sales are then computed
as the difference between baseline and actual sales. Thus, in contrast to the multiple-equation
approach PROMOTOR does not asses the process by which a Promotion works; rather it
concentrates on estimating its magnitude. The general findings from PROMOTOR are the
following:
Trade deals tend to have lower "pass-through"; that is, savings by the retailer are passed along to
consumers less than manufacturers hope. Retailers tend to forward buy when they offered
Promotions, allowing them to stock up and ultimately making the Promotion unprofitable
for the manufacturer. The effectiveness of trade deals varies greatly across sizes of products and
markets.
1.4 STATEMENT OF PROBLEM

Professional management is essence for improving overall efficiency and effectiveness in

every business, which makes business organization sustainable in changing political and
economic environment. Since couple of years more and number of corporate sector companies
have experienced the grave problems of deciding promotional strategy and specifically sales
promotion schemes to win the customers.
Also, on the other hand, sales promotion initiatives taken without keeping the long term
objectives of the business may dilutes the brand equity. It is felt that management practices of
designing and implementing promotional decisions should be well researched and rational to
justify the investment on promotions. It has been felt that large gap remain what has been
accomplished and what is remaining. Therefore the statement of the problem under the study
that has been selected is
“Effectiveness of sales promotion” (impact of sales promotion on sales with specific reference
to lotuswaveg services)

1.5 OBJECTIVES OF THE STUDY

 To study the sales manager perception by lotuswaveg towards sales promotion schemes
 To understand sales manager preference towards sales promotion schemes information
of lotuswaveg
 To gain an overall idea about the organization and its services
1.6 LIMITATIONS OF THE STUDY

 Biases of customers could affect the results of the survey.

 An in depth study could not be done because of time constraints.
 Time Factor: The researcher had only limited time for study. The elaborate topic
could not be fully covered; hence a complete picture could not be obtained.
 The researcher had limited experience in the field being a student.
 Some of the respondents failed to express their reactions clearly.
 Since the information is being collected from a sample of population, their view cannot
be generalized on large population.

1.7 SCOPE OF STUDY

 The function of marketing is to ensure that the right product is made available at the
right place, in the right quality, at the right price, at the right time and under the right
impressions to the consumer.
 All these righteousness is made possible by performing the sales function. Thus, sales
function is the pivotal factor in any organization. It is even capable of deciding the
very existence of an organization.
 The various promotional mix elements are designed for achieving better sales.
Advertising is a necessisity with a view to maximization of the return on the money
invested.
 The probability of securing the optimum effectiveness is greater when advertising is
adequately planned, executed and constantly evaluated in terms of carefully crystallized
objectives. Thus, advertising offers a reason to buy while; sales promotion offers an
incentive to buy.
1.8 RESEARCH METHODOLOGY
RESEARCH DESIGN
Research design for the project is Descriptive research design. A descriptive research design is the
one which is description of the state of affairs as it exists at present. It includes survey and fact
finding enquiries of different kinds. In it detailed study of the awareness of brand among
customers will be done. The information will be collected with the help of an unbiased, non-
disguised and structured questionnaire.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
techniques or procedures the researcher would adopt in selecting items for the sample. Sample
design chosen for the purpose of the study is simple random sampling.
SAMPLE SIZE
The target sample for this study is 20 respondents
DATA COLLECTION
Data is collected through both primary and secondary sources.
Primary Data: Primary data is collected through, a structured questionnaire and personal survey.
Secondary data: Secondary data is collected through website of the company, journals and
magazines.
DATA ANALYSIS
Data analysis is done with the use of percentage analysis. Graph, charts and tables are also used in
analyzing the data. Statistical tools like Correlation and Chi square test are also used.
 CHAPTER 2
2. DETAILED STUDY OF VARIOUS FUNCTIONAL DEPARTMENTS
2.1 Human Resource Department
Structure of Human Resource department

Managing Director

HR Director Administration

HR- In Charge

Concerned Department Heads

The term human resources can be thought of as the total knowledge, skills creative, abilities and
aptitudes of an organizations workforce as well as the values, attitudes and beliefs of the
individuals involved. The term human resources can also be explained in the sense that it a
resources like any natural resources. It does mean that the management can get and use the skill,
knowledge, ability etc., through the development of skills, tapping and utilizing them again and
again by developing a positive attitude among employees.
The Human resources department is one of the important functional departments in every
organization. Only with the help of this department the organization can make efficient use of the
available work force, for providing the desired product to the customer with desired quality and
reasonable prices at the right time.
The main functions of personnel department are as follows.
 Training and upgrade skill sets of its employees
 Performance appraisal and reward system
 Manage and full fill expectations
 Safety of the employees
 Attract and retain talent
Annual planning
There must be an approved annual HR plan. Each department has to prepare man power
plan based on the following factors.
 Business development
 Critical evaluation and systematic review of business plan and production targets.
 Retirements
 Promotions
Budget
The objective is to plan and allocate financial resources with respect to man power
planning and human resources development activates scheduled for the financial year. Before the
commencement of every financial year budget allocations will be made to cover recruitment,
training, personnel and administration expenses. This will cover all projected activities of HR
department.

Recruitment Sources
The company considers both internal and external sources for recruitment, internal
sources includes the employees who are already on the payroll. Whenever any vacancy occurs,
somebody within the organization with necessary qualification is promoted to the job.
External sources are decided by HR Department / Director HR according to needs. Types
of external sources company had
 Advertisement -Giving advertisements in state and local news papers
 Educational Institutions – Campus recruitments may be considered at approved technical
and management institutes. A list of approved institutes will be maintained by HR
department.
 Identified external agency –HR department can identify and maintain list of external
agencies though which recruitment needs can be sourced.
 Data bank –All unsolicited applications or applications received through references will
be maintained in a data bank.
Recruitment and selection
It is the process of searching for prospective employees and stimulating them to apply for jobs in
the organization.
Request for sanction of manpower. Either new or replacement will be made through employee
staff by the head of the department or in charge. This has to be made in advance of at least 60
days prior to recruitment. Once the requisition is received from the department had, the director
in charge of HR will in consultation with department head / managing director grant the approval
and then forward it to HR department. The HR department starts recruitment process only on
receipt of approved employee’s requisition. The intention of selection process is to choose the
candidate who is best suitable for a particular job. It is one of the most crucial activities that
affect the organizational efficiency in the long run.
The selection procedure followed by the company is as follows.

Placement

Screening of Applications
Physical examination

Call Letter
Interviews

Call Letter

Screening of Applications

Induction

2.2 Training and Development

The company gives on the job and off the job training. On the job and off the job methods
of training are as follows
On the job
 Job rotation
 Training through step by step
 Job instruction
 Coaching
Off the job
 Lecture method
Safety of the employees
 Safety uniform will be given to every employees, uniform will be given once in a year
 Safety shoes will be given to every employees
 Safety plastic hats to be given to every employee.
 Safety goggles are given to the employees.
 organization has ample lighting and ventilation
 It gives lot of attention specifically to easy disposal of fumes and dust
Appraisal System
Lotuswaveg would like to promote a work culture that is strongly performance driven. To
this end it would like to encourage participation of all employees and their supervisors. It also
provides executives of LOTUSWAVEG with a shared appraisal frame work enabling them to
 Measure and evaluate objective individual performance
 Provide an opportunity for promoting an atmosphere of trust and openness
 Develop employees in their present job.
 Set individual performance targets in line with organizational goals.
 Develop employees with potential to tasks on higher responsibilities.
Increments and promotions
The company believes in growth of their employees. In this respect the employees will be
encouraged to grow to higher level in the company with their commitment to work, loyal to the
company, overall performance, conduct and sincerity.
In this company the promotion is given based on seniority and work experience.
2.3 Marketing Department
Structure of marketing department

Managing Director

Director- Marketing

Marketing officer
Marketing department co-ordinates the activities of pricing, promotion and distribution of goods
and services to satisfy customers and achieve organizational objectives
The marketing department performs marketing activity by supplying the products to the
customers within the mentioned time and the products are transferred to the domestic customers.
The main functions of marketing department are as follows.
 Marketing department receives the customer’s order.
 Marketing department has to process the order according to customer’s requirements.
 Marketing department conduct the research for knowing the customer satisfaction and
dissatisfaction about the product once in a year.
 Marketing department maintain the database of the customer.
 Marketing department handles the customer’s complaints.

Handling of customer complaints:

 The managing directors receive complaints from the customers.
 M D forwards the complaints to quality control to test.
 Based on the result of the test, the complaints are bifurcated as casual and genuine
complaints.
 All genuine and casual complaints are investigated to take the corrective action.
 Recorder records the corrective action to be taken.
 For this all these customers’ complaints, acknowledgement is sent to the customers.

2.4 Finance Department

Structure of Finance department

Managing Director

Director Finance

Account Officer
Finance is an art and science of managing money, finance is very much important for any
industry. We can say that finance is the life blood of any Industries. This fund comes from a
variety of sources to industry through the investors or shareholders. These funds are committed
to a number of uses in production of a product or service.
The main functions of finance department are as follows:
 Making payments to the suppliers.
 Making payments as a salary to employees.
 Conducting meeting to know the expenses of the organization
 Preparing financial report of the organization
 Helping in taking financial decision
 Systematic book keeping is done by finance department
 Maintaining the rules and regulation according to the companies act of 1956
Accounting Procedure:
Accounting is the process of recording, measuring, classifying, summarizing, interpreting
and communicating the financial transactions of a firm. It gives a clear identification about
industrial transactions.
The company follows cash and credit basis of accounting to its income and expenditures.
The income of the company is from sale of their products design. The major expenditures are
power charges, administrative and marketing expenses.
Following are the records of books maintained by Lotuswaveg.
 Subsidiary Books
In subsidiary books, various business transaction as and when they take place are
recorded. This register is maintained to keep track of the material in warded to enable effect of
payment on the due dates on the basis of the credit terms. Immediately after accepting the
material by store and counter signed by the quality assurance department, the necessary entries
are made in the register.
 Cash Book
Cash Book maintained for recording all receipts to cash and payment of cash in the
industry. Cash book is a part of ledger, the main entries of this cash book is record of cash
received & cash payment. It verifies the correctness of cash is hand and bank.
 Journal Book
Journal book is a daily record of each industrial transaction. This Journal book is also
called as a day book, and this book is used for recording all day to day transaction in the order in
which they occur.
 Sales least register
Sales least register is maintained to keep track of the sales made to each & individual
customer wise & the detail of Invoice number & date & value maintained in the register.

Book of Accounts
 Petty Cash Book
This is a day book maintained by the cashier by making necessary entries of receipt of
cash & payment made against vouchers. The payment voucher / receipt vouchers are daily
verified by the Director & then necessary entries are made in the book through computer.
 Bank Book
Since the company has availed cash credit & bill discounting facility from Bank two
separate bank book for cash credit and bill discounting are maintained.
The receipt of payment through cheque / demand draft is maintained in the register. The bank
charges and interest paid to bank is also maintained in this register. The balance of the book
should tally with the balance in the book of accounts maintained in the computer.
 General Ledger
This ledger gives the details of transactions affected by the company at any point of time.
The receipt and payment of cash, as well as the receipt & payment of bank are posted to
respective accounts in the general ledger. This ledger should be updated on day to day basis to
know the actual balance of each account. The trail balance receipt and payment are made at each
month end, which should necessarily tally. The profit & loss account is also arrived on the basis
of the trail balance which can be arrived month wise, quarterly, half yearly or yearly.

Skill: Skill is very much important in any organization. On the basis of the skill candidates are
selected for any job They are administrative skills and technical skills. The employees are given
on the job and off the job training to improve their knowledge and skills.
Lotuswaveg. see two types of skills, they are as fallows.
 Technical skills and
 Administrative skills

 Technical skills:
Technical skills are those skills, which are directly concerned with the production. In
industry shop floor employees are expected to possess these skills to carry out the production
activity smoothly. In LOTUSWAVEG they give more importance to these technical skills.
For improvement of their employees they provide different training programs which
conducted to improve technical skills among employees.
When a candidate is selected he will get on- the job training for some period. Sometimes the
company gives its employees training by external training agencies, when employee gives
external training and come back to industry they give a lecture about that, this will help the
employees to improve their knowledge within the industry.
LOTUSWAVEG continuously monitors the performance of the employees of various
departments and identifies the training needs to be given for employees and for enhancing the
skills of the employees.
Administrative skills:
Administrative skills are those skills, which are very much necessary for office staff. It
involves managing the resources of the organization. LOTUSWAVEG is doing everything to
improve these skills to its employees. When the candidate is selected he will be given training for
some period. It also provides training in each department to make the candidates familiar with
the organization.
Style:
Decision making is the process of choosing the best from among the alternative solutions
under a given set of circumstances.

The company follows a centralized system of decision making. Only the top management
takes the decisions and the suggestions of the lower level employees are taken into consideration.
 Lotuswaveg has been following autocratic style of decision making. Only the persons
who are in higher authority take decisions about the day to day operations. Decision making is
restricted to the upper layer of the management. In taking decisions regarding purchase only the
managing director and director will take decisions regarding the quality, quantity of the raw
materials and tenders .The higher authorities do everything. There is no participative style of
decision making because most of the employees do not have knowledge about all the aspects of
the company’s administration.

Strategy:
Strategy is about setting corporate goals, defining steps needed to achieve these goals
followed by systematic action and allocation of resources to achieve corporate goals.

Lotuswaveg is aiming at gaining a substantial advantage over competitors through its

quality products with reasonable price to price their products reasonably. They should minimize
the cost as much as possible, one way of doing this by waste elimination.

The strategy regarding waste elimination is very simple they are

 Right person for the Right job
 Ensuring that the quality of raw materials purchased is good
 This could be done well in advance of starting the production activity
 Using the good quality of raw materials, it produces good quality products without any
damages & cracks in the design.

The best way to minimize cost is by best productivity thus reducing wastage.

One more strategy regarding waste elimination is by carrying out the production activity
according to the procedure and under the supervision of the supervisors.
System:
Lotuswaveg uses complete systemized processes in all fields like quality control systems,
performance measurement systems, order execution systems, inventory control system etc.
Staff:
Responsibility and Authority
The company has defined responsibilities and authorities in order to facilitate effective
implementation of quality management and these are communicated to relevant persons in
organization.
Managing Director:
Responsibility
 Set the organizational goal, as well as company level data’s & to provide adequate
resources to achieve set goals
 Overall control of the company
 Define, document & implement the quality policy & quality objectives
 Identify new business opportunities, formulate business plan & implement business
strategy.
 Monitor, review and control operating & financial performance of the company.
 Conduct the affair of the company & to execute the decision / directions of the board of
directors
 Develop new product & process techniques
 Take corrective actions on customer complaints
 Update the system to suit the changing needs of the customer as well as technological
changes.
Authorities
 Appoint any employees of the company as well as MR(Management Representative)
 Approve quality manual
 Identify and resolve any problem relating to the product, process & quality system,
 Stop the production in the event of non conformity of the product.
 Approve purchase order of capital goods
 Take appropriate decision as & when required to ensure that the organization meets the
declared the quality objectives by providing resources & guidance.

Director administration:
Responsibilities
 Look after the public relations, personnel management HRD related activities, pollution
control clearances, foundry licenses, security and general transportation.
 Establish the approved resources like building, capital equipments & any other facilities.
 Preparation of annual training plan
 Arranging for training & ensuring the effectiveness of training
 Maintain safe and clear working environment.

Authorities
 Arranging training according to the annual training plan.
 Take appropriate decision on HRD related matters
 Decide the training programs
 Approve III level documents in the area of administration.
Executive Directors
Responsibilities
 Implement the regulations of import / export business
 Planning & procurement of raw materials, consumables & other sundry materials &
inventory control.
 Purchase activity, supplier development & assessment
 Store management
 Give feedback to supply status & performance to suppliers
 Company sales tax & central excise formalities
 Arranging for rebooking of rejected materials to the suppliers
 Assessing the suppliers quality systems
Authorities
 Selection & approval of new supplier
 Evaluations of the vendor rating
 Deletion of the supplier based on the performance rating
 Approval of purchase orders, job orders & letter of indents
  approving purchase requisition
 Approval of cash purchase
 Delete the shelf life expired items & to dispose them
 Deal with matters related to imports / exports
Marketing Officer
Responsibility
 Preparation of quotations & tenders
 Maintenance of enquiry register
 Preparation of forwarding the order acceptance
 Maintenance of purchase or de registers
 Preparations of amendments for any changes in the purchase order against original offer
 Maintenance of amendment register
 Preparations of M.P.P in consultation with director, marketing & finance
 Updating the sales register / contract review records
 Maintain & updating the central excise registers & abstracts
 Assistant in initiating connective & preventive actions

Authority
 Review the III level document in the area of marketing
Director, Marketing & Finance Staff
Responsibility
 Planning marketing strategy
 Identifying the customer
 Generate enquiries for new business by looking for new customer / new applications
 Implement the regulations of import / stroke businesses
 Establishing the control review
 Finance the cost estimation of new products
 Releasing the monthly production plan
  Recording the customer complaint where relevant and forward the complaint to QC
/DV/PR (production) personal
 Provide need based customer service other than contract review as when required on
mutual agreement
 Delivery of products on time at competitive price
 Establishing the delivery performance every month
 Establishing the customer satisfaction index

Authorities
 Approval of Offers/ Quotations / Tenders / OA and invoices
 Altering or suspending the production plan based on the urgency / requirement of the
customer
 Approval of III level documents in the area of marketing
 CHAPTER 3

3. DATA INTERPRETATION AND ANALYSIS

Data is the very important aspect of a research report because the data is the only thing from
which the analysis and findings could be made; this is the reason why the data is being collected
for the purpose of the research study. The study can be made easier through the collection of data
and while collecting it the data can be reformed and furnished like this so that meaningful
information can be withdrawn from it. The question are framed as according to the respondents,
the information gathered from the questionnaire is being used in the forms of pictorial
representation and in tabular form thus the data representation is done in the form of pie chart,
and graphs . And it is the survey done in Hyderabad city only.

Table 3.1
Table Representing “Age Group”
AGE GROUP NO. OF RESPONDENTS PERCENTAGE OF
RESPONDENTS
20-25 10 50%
26-30 6 30%
31-35 2 10%
36-40 1 5%
41-45 1 5%
Chart 3.1
Chart Representing “Age group”

50%
percentage of
respondents

40%
30%
20%
PERCENTAGE OF
10% RESPONDENTS
0%
20-25 26-30 31-35 36-40 41-45

age group

Inference:

The survey conducted shows that most of the respondents were of the age group of 20-25 years
and the least respondents were of 41-45 years.
Table 3.2
Table Representing “Gender”

Gender NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

MALE 13 65%

FEMALE 7 35%

Chart 3.2

Chart Representing “Gender”

0.7
percentage of respondents

0.6
0.5
0.4
0.3
PERCENTAGE OF
0.2 RESPONDENTS
0.1
0
MALE FEMALE
gender

Inference:

This chart shows that male respondents are more that is 65% and female respondents are 35%.
Table 3.3

Table Representing “Information usually sought from”

INFORMATION SOURCE NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

NEWSPAPERS 3 15%

TELEVISION 9 45%

RADIO 1 5%

INTERNET 2 10%

HOARDINGS 1 5%

WORD OF MOUTH 4 20%

Chart 3.3

Chart Representing “Information usually sought from”

50%
percentage of respondents

NEWSPAPERS
40% TELEVISION

30% RADIO
INTERNET
20%
HOARDINGS
10% WORD OF MOUTH
0%

Inference:

45% of the respondents sought information from the television and the 10% through radio and
hoardings.
Table 3.4

Table Representing “Kind of information preferred by respondents in a promotion”

PREFERENCE NO. OF PERCENTAGE OF

CRITERIA RESPONDENTS RESPONDENTS

QUALITY 10 50%

COMFORT 5 25%

STYLE 2 10%

RELIABILITY 2 10%

FEATURES 1 5%

Chart 3.4

Chart Representing “Kind of information preferred by respondents in a promotion”

percentage of respondents

50%
40%
30%
20%
PERCENTAGE OF
10% RESPONDENTS

0%

Inference:

The information about quality is preferred the most and the information about the feature is
preferred the least.
Table 3.5

Table Representing “The media that is looked for searching the information”

MEDIA PREFERENCE NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

PRINT MEDIA 6 30%

ELECTRONIC MEDIA 9 45%

OTHER MEDIA 1 5%

WORD OF MOUTH 4 20%

Chart 3.5

Chart Representing “The media that is looked for searching the information”

50%
percentage of respondents

40%
PRINT MEDIA
30% ELECTRONIC MEDIA
20% OTHER MEDIA
WORD OF MOUTH
10%

0%
types of media

Inference:

Print media is preferred the most by the respondents and other media the least.
Table 3.6

Table Representing “Reliability on sales promotion”

RELIABILITY NO. OF PERCENTAGE OF

ON SALES RESPONDENTS RESPONDENTS
PROMOTION

YES 10 50%

NO 1 5%

SOMETIMES 8 40%

RARELY 1 5%

Chart 3.6

Chart Representing “Reliability on sales promotion”

50%
45%
percentage of respondents

40%
35% YES
30%
NO
25%
SOMETIMES
20%
15% RARELY
10%
5%
0%
reliability on sales promotion

Inference:

50 % of respondents rely on sales promotion and 5% rarely rely,5% do not rely on sales
promotion
Table 3.7

Table Representing “Change in perception of a product or service by just seeing the sales
promotion”

CHANGE OF PERCEPTION DUE NO. OF RESPONDENTS PERCENTAGE OF

TO SALES PROMOTION RESPONDENTS

YES 3 15%

NO 7 35%

SOMETIMES 8 40%

RARELY 2 10%

Chart 3.7

Chart Representing “Change in perception of a product or service by just seeing the sales
promotion”
percentage of respondents

40%
35%
30%
25%
20%
15%
PERCENTAGE OF
10%
5% RESPONDENTS
0%

Inference:

40%of the respondents sometimes change their perception of a product or service by just seeing
the sales promotion and 10% rarely change their perception by just seeing the sales promotion
Table 3.8

Table Representing “Necessity of sales promotion for decision making”

NECESSITY OF SALES PROMOTION NO. OF PERCENTAGE OF

IN DECISION MAKING RESPONDENTS RESPONDENTS

ALWAYS NECESSARY 6 30%

SOMETIMES NECESSARY 12 60%

NOT NECESSARY 4 20%

Chart 3.8

Chart Representing “Necessity of sales promotion for decision making”

70%

60%
percentage of respondents

50%
ALWAYS NECESSARY
40%
SOMETIMES NECESSARY
30%
NOT NECESSARY
20%

10%

0%
necessity of sales promotion in decison making

Inference

60% of the respondents feel that sales promotion is necessary for decision making and 20% of
respondents feel that sales promotion is not necessary decision making.
Table 3.9

Table Representing “Highlights of the sales promotion”

HIGHLIGHTS OF THE SALES NO. OF RESPONDENTS PERCENTAGE OF

PROMOTION RESPONDENTS

PRICE 8 40%

BENEFITS 6 30%

BRAND ENDORSERS 2 10%

OFFERS 2 10%

QUALITY 2 10%

Chart 3.9

Chart Representing “Highlights of the sales promotion”

40%
percentage of respondents

35%
30% PRICE
25% BENEFITS
20% BRAND ENDORSERS
15% OFFERS
10% QUALITY
5%
0%
highlits of the sales promotion

Inference:

40% of the respondents look for price, 10% brand endorsers, 10% for offers and 10% for quality
Table 3.10

Table Representing “Referred association of sales promotion”

WHAT YOU RECALL FROM NO. OF RESPONDENTS PERCENTAGE OF

SALES PROMOTION RESPONDENTS

MUSIC 8 40%
TAG LINE 6 30%
ENDORSERS 3 15%
PRODUCT 2 10%
BENEFITS 1 5%

Chart 3.10
Chart Representing “Referred association of sales promotion”

45%
percentage of respondents

40%
35%
30%
25%
20%
15%
10% PERCENTAGE OF
5% RESPONDENTS
0%

Inference:

40% of the respondents recall music and 5%of the respondents recall benefits.
Table 3.11

Table Representing “Important criteria for a sales promotion”

WHAT SHOULD BE HIGHLIGHTED NO. OF PERCENTAGE OF

IN AN SALES PROMOTION RESPONDENTS RESPONDENTS

BENEFITS 4 20%
TAG LINE 6 30%
BRAND NAME 3 15%
COMPANY NAME 3 15%
ENDORSERS 2 10%
PRODUCT FEATURES 2 10%

Chart 3.10

Chart representing “Important criteria for a sales promotion”

30%
percentage of respondents

25% BENEFITS
20% TAG LINE
BRAND NAME
15%
COMPANY NAME
10%
ENDORSERS
5% PRODUCT FEATURES
0%
criteria for sales promotion

Inference:

30% of the respondents believe that benefits form the most important criteria, 10% believe in
endorsers and another 10% believe that product features form the important criteria for a sales
promotion
Table 3.12

Table Representing “Response to repeated sales promotion in tv\radio”

RESPONSE TO REPEATED SALES NO. OF PERCENTAGE OF

PROMOTION IN TV\RADIO RESPONDENTS RESPONDENTS

LIKE 9 45%

DISLIKE 4 20%

GET IRRITATED 5 25%

CHANGE THE CHANNEL 2 10%

Chart 3.10

Chart Representing “Response to repeated sales promotion in tv\radio”

45%
40%
percentage of respondents

35%
30%
LIKE
25%
DISLIKE
20%
15% GET IRRITATED
10% CHANGE THE CHANNEL
5%
0%

response to sales promotion

Inference:

45% of the respondents like repeated sales promotions in tv/radio and another 10% change the
channel.
Table 3.13

Table Representing “Important of a brand ambassador for sales promotion”

IMPORTANCE OF BRAND NO. OF PERCENTAGE OF

AMBASSADOR IN SALES PROMOTION RESPONDENTS RESPONDENTS

VERY IMPORTANT 11 55%

SOMETIMES IMPORTANT 5 25%

NOT IMPORTANT 4 20%

Chart 3.13

Chart Representing “Important of a brand ambassador for sales promotion”

60%
percentage of respondents

50%

40%

30%
PERCENTAGE OF
RESPONDENTS
20%

10%

0%
VERY SOMETIMES NOT
IMPORTANT IMPORTANT IMPORTANT

Inference:

55% of the respondents believe that brand ambassador is very important for sales promotion and
20% believe that brand ambassador is not important.

Table 3.14
Table Representing “The role of internet sales promotion on creating brand preference”

THE ROLE OF INTERNET NO. OF PERCENTAGE OF

SALES PROMOTION ON RESPONDENTS RESPONDENTS
CREATING BRAND
PREFERENCE

YES 10 50%

NO 3 15%

SOMETIMES 5 25%

RARELY 2 10%

Chart 3.14

Chart Representing “The role of internet sales promotion on creating brand preference”

60%
percentage of respondents

50%

40% YES
NO
30%
SOMETIMES
20% RARELY

10%

0%

Inference:

50% of the respondents believe that internet creates brand preference and 10% believe that it
rarely create brand preference.

Table 3.15
Table Representing “Reliability of internet as a source of information”

IS INTERNET A RELIABLE NO. OF RESPONDENTS PERCENTAGE OF

SOURCE RESPONDENTS

YES 12 60%

NO 8 40%

Chart 3.15

Chart Representing “Reliability of internet as a source of information”

60%

50%
percentage of respondents

40%

30% PERCENTAGE OF
RESPONDENTS
20%

10%

0%
YES NO SOMETIMES

Inference:

55% of the people rely on internet as a source of information and 5% sometimes rely.

CHI-SQUARE TEST
Table 3.16
Table represents “Relationship between gender and internet as most reliable source of
information”

YES NO Total (a2)

Female 5 2 7
Male 6 7 13
Total (a1) 11 9 20

Hypothesis:
Null Hypothesis (Ho):
There is no significant relationship between gender and internet as most reliable source of
information
Alternative Hypothesis (H1):
There is a significant relationship between gender and internet as most reliable source of
information
Significance Level (α): 0.05
Test Statistic:
Expected numbers for willing to work = (a1*a2)/Total sample size

Oi Ei Ψ2 = (Oi-Ei)^2 / Ei
5 3.85 .343
2 3.15 .419
6 7.15 .184
7 5.85 .226
TOTAL 1.172

Calculated Value: Ψ2 =1.172

Table Value:

D.O.F = (r-1)(c-1)
= (2-1)(2-1)
=1
α = 0.05
Ψ2 = 3.84
Conclusion:
| Ψ2 table | > | Ψ2 calculated |
Table value is greater than calculated value. Thus Null hypothesis is accepted and
Alternative hypothesis is rejected.
Therefore there is no significant relation between gender and Internet Is The Most Reliable
Source of Information. This research proves from the above test that the gender that gives the
maximum output has to be identified and motivated for the betterment of the organization.

Table 3.17
Table Represents “Correlation of relying on sales promotion and changing perception of a
product by seeing sales promotion”

S.NO NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
1 10 0.5
2 1 0.05
3 8 0.4
4 1 0.05
5 3 0.15
6 7 0.35
7 8 0.4
8 2 0.1

By using Minitab software

Correlations: NO OF RESPONDENTS, PERCENTAGE OF RESPONDENTS
Pearson correlation of NO OF RESPONDENTS and PERCENTAGE OF RESPONDENTS =
1.000
P-Value = *
Chart 3.17
Chart Represents “Correlation of relying on sales promotion and changing perception of a
product by seeing sales promotion‖

Scatterplot of PERCENTAGE OF RESPONDENTS vs NO OF RESPONDENTS

0 2 4 6 8 10
0.5 0.5
PERCENTAGE OF RESPONDENTS

0.4 0.4

0.3 0.3

0.2 0.2

0.1 0.1

0.0 0.0
0 2 4 6 8 10
NO OF RESPONDENTS

The chart represents they are perfectly correlated

CHAPTER 4
 FINDINGS & SUGGESTIONS

4.1 FINDINGS

According to the survey conducted findings are:

 It’s found that Most of the respondents were of the age group of 20-25 years and the least
respondents were of 41-45 years.
 Males are more interested in branded products than the female category.
 Television creates more impact on customers when compared to other sources.
 Quality is the most preferred information by customers.
 Electronic media is preferred more over other channels.
 Most of the respondents rely on sales promotion.
 Most of the People change perception of a product based on the sales promotion
 Most of the people see for benefits that are shown in a sales promotion
 Music is the most referred association of sales promotion.
 Tag line is the most important criteria in a sales promotion.
 Most of the people do not have any problem with the repeated advertisements.
 Brand ambassador is important while promoting a product or a service
 Internet plays a major role is creating brand preference
 Most of the people rely on Internet as a source of information.

4.2 SUGGESTIONS

 Lotuswaveg should follow different sales promotion channels, not only internet to
improve their sales of services better.
 Advertisements can be made in local newspapers and in television, radio.
 Budget can be improved for sales promotion activities
 More impact can be given for services that are demanded more.
 CHAPTER 5

5. CONCLUSION

 According to this study, it has been found out that people notice sales promotions and the
awareness level of the brand is good only because of sales promotions.

 Based on this study I would say television sales promotions have more reach to the
people. Customers prefer television in comparison to other media since they get both the
audio and visual effects .This also proves that customer’s rely on sales promotions shown
in media.

 Customers of the age group of 20-25 are more interested in sales promotions and brands.

 The customers like branded products because of the quality it possesses.

 For a sales promotion to be effective the price, the music and the tag line should be
highlighted. These three aspects create a great impact in brand preference.

 Hoardings and banners also create brand preference of a product and are important to
increase brand preference.

 The customer’s also spread word of mouth after they use a product.

 This survey also makes it clear that customers (especially of the younger generation) refer
internet before they purchase and they search for the product features shown in internet
sales promotions.
BIBLIOGRAPHY

Text Books:

 Philip Kolter - Marketing Management: Hall Inc. Tenth Edition, September 2001.

 Richard j. Semenik and Gary J. Bamoss - Principles of Marketing : South West

publishing Company, First Edition, 1993

 George E.Belch and Michael A. Belch. - Advertising and promotion

 T N Srivastava and Shailaja Rego – Statistics For Management: Tata McGraw Hill.
Second Edition

 P.K.Giri and J.Banerjee - Statistical Tools and Technique: Academic Publishers, First
Edition, 2002

Website:

 www.google.com

 www.lotuswaveg.com

ANNEXURE
QUESTIONNAIRE
Name:……………………………………. Company Name:………………………………

Designation :………………………………
1. Age group

 20-25
 26-30
 31-35
 36-40
 41-45

2. Gender.
 MALE
 FEMALE

3. From where do you usually seek information?

 INFORMATION SOURCE
 NEWSPAPERS
 TELEVISION
 RADIO
 INTERNET
 HOARDINGS
 WORD OF MOUTH

4. What kind of information u prefer in a promotion?

 PREFERENCE CRITERIA
 QUALITY
 COMFORT
 STYLE
 RELIABILITY
 FEATURES
5. If you are searching for information of a brand which media will you look for?

 MEDIA PREFERENCE
 PRINT MEDIA
 ELECTRONIC MEDIA
 OTHER MEDIA (please specify)
 WORD OF MOUTH
6. Do you rely on sales promotion?

 YES
 NO
 SOMETIMES
 RARELY
7. Do you change your perception of a product by just seeing the sales promotion?

 YES
 NO
 SOMETIMES
 RARELY
8. Do you think sales promotion is necessary for your decision making?

 ALWAYS NECESSARY
 SOMETIMES NECESSARY
 NOT NECESSARY
9. What do you look for in a sales promotion?

 PRICE
 BENEFITS
 BRAND ENDORSERS
 OFFERS
 QUALITY

10. If you hear the name of a brand through sales promotion what do you recall?
  MUSIC
 TAG LINE
 ENDORSERS
 PRODUCT
 BENEFITS
11. What are the things that should be highlighted in sales promotion?

 BENEFITS
 TAG LINE
 BRAND NAME
 COMPANY NAME
 ENDORSERS
 PRODUCT FEATURES
12. What is your response to repeated sales promotion in Tv\radio?

 LIKE
 DISLIKE
 GET IRRITATED
 CHANGE THE CHANNEL
13. How important is brand ambassador for sales promotion?

 VERY IMPORTANT
 SOMETIMES IMPORTANT
 NOT IMPORTANT
14. Does the internet sales promotion in the website create brand preference?

 YES
 NO
 SOMETIMES
 RARELY
15. Do you think internet is the most reliable source of information?

 YES
 NO
 SOMETIMES