MANAGEMENT THESIS -I

A REPORT ON MANAGEMENT THESIS TITLED A STUDY ON THE PROMOTIONAL PRACTICES FOLLOWED BY H U L OUTLETS IN VIZAG

SUBMITTED BY: MANOJ KUMAR TAH Roll No-128

Under the esteem guidance of B S P NARAYANA FACULTY GIM-VIZAG

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DECLARATION

I MANOJ KUMAR TAH here by declare that this project report entitled A study on the promotional practices followed by H U L outlets in vizag, submitted by me, under the guidance of MR. B S P NARAYANA faculty of GITAM INSTITUTE OF MANAGEMENT, Visakhapatnam, is my own and has not been submitted to any other University or Institute or published earlier.

Visakhapatnam Date: MANOJ KUMAR TAH

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CERTIFICATE
This is to certify that this report entitled A study on the promotional practices followed by H U L outlets in vizag submitted by, Manoj Kumar Tah in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration to GITAM INSTITUTE OF MANAGEMENT, Visakhapatnam is a bonafide work carried out by him under my guidance.

B S P NARAYANA Place: Visakhapatnam Project Guide Date:

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ACKNOWLEDGEMENT A report of this nature involves the support and contribution of many people, I believe that I would be lacking in my duty if I do not express my gratitude to them. It is my greatest pleasure to thank PROF, K.SIVA RAMA KRISHNA, Dean & Principal, GITAM INSTITUTE OF MANAGEMENT, Visakhapatnam, for giving us the opportunity to do this project work. I would like to express my heart full thanks to Prof. M.V.Ram Prasad, MBA (HEAD OF THE DEPARTMENT), GITAM INSTITUTE OF MANAGEMENT for permitting me to do the project.

My sincere and heartfelt gratitude to my faculty guide Mr. B S P NARAYANA who took keen interest in my project to make it a beneficial exercise. Finally, I would like to convey our special thanks to employees of H U L outlet in vizag for giving me the opportunity to work on this project.

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TABLE OF CONTENTS

CHAPTER 1:

Review of Literature Theoretical frame work 1. Main subject ` 2. Industry overview 32-37 1-25

CHAPTER 2:

Methodology Need / Significance of study Objectives of study Scope Research Design 1. Data collection methods 2. Analysis Method Limitations of study

CHAPTER 3:

Organization profile Industry profile Organization profile Topic profile

38-52

CHAPTER 4: CHAPTER 5:

Analysis of Study Findings, suggestions and conclusion Findings Suggestions Conclusion Annexure-Questionnaire GIM, VISAKHAPATNAM

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Bibliography

ABSTRACT
The project titled A study on the promotional practices followed by H U L outlets in vizag The study gives good knowledge about the theoretical concepts that are relevant to the topic. The study starts by defining the objectives. It reflects about the insights of the promotional practices followed by FMCG industry in the present scenario. It talks about the importance of the customer perception and it can become a competitive advantage in the industry. It gives the clear picture of the various variables that makes a positive perception towards any organization. The variables which a company should essentially follow in order to sustain the competitive scenario has been analyzed in the report following an analysis done by the survey. It substantiates the concept of promotional practices and the various strategies that can be used by any organization to make their promotional practices successful. The main emphasis of the study is to understand the variables that are used by the organization which differentiates the H U L from competitors in Visakhapatnam and it was very successfully analyzed. The study helps us to understand about the promotional practices followed by H U L outlets. The study ends with findings that were made during the study period followed by few suggestions if incorporated would be helpful for the organization.

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List of Tables
Table 4.1- Promotional strategies used by you to promote HUL products Table 4.2-Strategies used by you to change customer buying behavior Table 4.3- Are the company people providing training Table 4.4- Important factors of training Table 4.5- Level of motivation Table 4.6- Styles of motivation Table 4.7- Arranging material for promotional activities Table 4.8- Reward for performance Table 4.9- Benefits for crossing targets Table 4.10- Forms of benefits Table 4.11- Conducting contest and events

List of Chats/Figures
Figure 4.1- Promotional strategies used by you to promote HUL products Figure 4.2-Strategies used by you to change customer buying behavior Figure 4.3- Are the company people providing training Figure 4.4- Important factors of training Figure 4.5- Level of motivation Figure 4.6- Styles of motivation Figure 4.7- Arranging material for promotional activities Figure 4.8- Reward for performance Figure 4.9- Benefits for crossing targets Figure 4.10- Forms of benefits Figure 4.11- Conducting contest and events

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CHAPTER-1
THEORETICAL FRAMEWORK

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CONCEPTUAL FRAMEWORK
Introduction:
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13, 718 crores. Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life Our vision is to continue to be an environmentally responsible organization making continuous improvements in the management of the environmental impact of our operations Promotional Mix is the heart and soul of advertising as it directly bears an impact on the amount of sales and expansion of the firm, appropriate mix of advertising, sales promotion, personal selling and publicity for communication etc dictates the firms share in the market.

There are four main aspects of promotional practices. These are Advertising is a paid form of non personal presentation of goods or services by an identified sponsor. It can be done using any form of media like television, radio, print media etc.

Sales promotion is a form of attracting the consumers by offering them various benefits in the form of incentives or by adding value to the products.

Publicity is a non-paid form of communicating information about the company or the product or both as a news article in newspapers or television or radio.

Public relations are essentially a function of an organization, where it tends to develop and manage its goodwill in the market. Good communications with employees through company based information and consultation procedures.

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Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately Shareholders Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. Business partners Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and Businespartners. In our business dealings we expect our business partners to adhere to business principles consistent with our own. and properly labelled, advertised and communicated.

Conceptual Theory:
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the seconomy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 cores in 2005 to Rs 92,100 cores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated doubledigit growth over the next few years shows that the good times are likely to continue. Growth Prospects: With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new

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generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Indian Competitiveness and Comparison with the World Markets Availability of raw materials: Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. The following factors make India a competitive player in FMCG sector:

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets. Presence across value chain Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. Top Ten Players in FMCG Sector S. NO. Companies 1. 2. Hindustan Unilever Ltd. ITC (Indian Tobacco Company)

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3. 4. 5. 6. 7. 8 9. 10. Secondary Players

Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

Colgate-Palmolive (India) Ltd. Godrej Consumers Product Ltd. Nirma Ltd. Tata Tea Ltd. Parle Agro H. J. Heinz

Overview Of FMCG Sector What are FMCGs? WE regularly talk about things like butter, potato chips, toothpastes, razors, household care products, packaged food and beverages, etc. But do we know under which category these things come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper Indian Consumer Class: India has a population of over 1 billion and 4 climatic zones . Several religious and personal beliefs, 15 official languages, different social customs and food habits characterize Indian consumer class. Besides , India is also different in culture if compared with other Asian countries. Therefore, India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. Consumer goods marketers experience that dealing with India is like dealing with many small markets at the same time.

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Indian consumer goods market is expected to reach $400 billion by 2010. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories. Consumer goods marketers are often faced with a dilemma regarding the choice of appropriate market segment. In India they do not have to face this dilemma largely because rapid urbanization increases in demand, presence of large number of young population, any number of opportunities are available. The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity as the restrictions on foreign investments were relaxed in 1991, Multi-National Companies have been entering India since then.

Market Size in $ million

Market Share in % Indian Companies MNCs Indian Companies 2004 0 0 2 3 $=30 $=45 52 37 51 49 48 63 49 51 rupees rupees MNCs

1992 Breakfast cereals Wafers, potato chips Washing Machines TV 1992 2004 2 6 40 630

2004 25 35 570 3,030

1992 100 100 98 97

Source: Center for Monitoring Indian Economy (CMIE)

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CHAPTER-2
METHODOLOGY

METHODOLOGY
This chapter deals with the methodology i.e. the present study on the performance appraisal system. This chapter covers title of the study need of the study, objectives of the study, Scope of the study,data analysis and limitation of the study.

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2.1 NEED OF THE STUDY:

For any business organization revenue generation is the most important goal, for that corporate giants try various innovative strategies to increase their market share in the market. Knowing the customer pulse and tapping them at the right time, in a right place, with a right price and also with a edge over the competitor shows the potential of the marketer. In that process, HUL is a bench marker in its industry. To know how HUL frames and implements its strategies and what is their effect on the sales. And how HUL attract different level of customer in our society. it is the purpose of the study.
2.2 OBJECTIVES:

To understand the promotional practices followed by HUL outlets. To know the training methods followed by company to motivate retailers. To know the level of motivation given by the company sales people. To know the role of retailers in promoting HUL products.

2.3 L I M I T A T I O N S:
Secondary data can be general and vague and may not really help in getting the complete picture. The researcher limited to only for one organization The data collected through interaction is prone to biased inputs by the person. This project is limited to only one geographical location that is Visakhapatnam which may lead to less accuracy.

2.4 Research Design:

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The method used for collecting data has been through both the primary source as well as through secondary source. Primary source: The data was collected through a well designed structured questionnaire consisted of both Closedended questions. And also direct interaction with the Professionals for gathering more information regarding the study. Secondary source: Much of the information was collected from the various other websites, books and journals. The research problem: To know the various promotional practices followed by HUL and to understand the various other benefits it provides to the retail outlet holders which Is unique. There are number of companies which offer these services, how does this particular company differentiating among others to sustain in the cut throat competition. Sampling technique: The sampling technique used was simple random sampling. To have relatively homogeneous groups. Sampling Area: HUL outlets in vizag locality. Sample size: 90. Analysis of Data (Statistical Tools) Data will be analyzed by using various statistical tools like bar chart, pie chart and line chart.

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CHAPTER-3
ORGANIZATION PROFILE

ORGANIZATION PROFILE
3.1 Industry Profile:

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Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13, 718 crores. Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life Our vision is to continue to be an environmentally responsible organization making continuous improvements in the management of the environmental impact of our operations Promotional Mix is the heart and soul of advertising as it directly bears an impact on the amount of sales and expansion of the firm, appropriate mix of advertising, sales promotion, personal selling and publicity for communication etc dictates the firms share in the market. In our business dealings we expect our business partners to adhere to business principles consistent with our own. Community Involvement Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our responsibilities to the societies and communities in which we operate. Public Activities Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. The Environment Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science applying rigorous standards of product safety. Competition Unilever believes in vigorous yet fair competition and supports the development of appropriate GIM, VISAKHAPATNAM

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competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Business Integrity Unilever does not give or receive whether directly or indirectly bribes or other improper advantages for business or financial gain. No employee may offer give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained. The mission: Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners. The vision: Our vision is to continue to be an environmentally responsible organization making continuous improvements in the management of the environmental impact of our operations. We will achieve this through an Integrated Environment Management approach, which focuses on People, Technology and Facilities, supported by Management Commitment as the prime driver

The main aim of the research is to study the promotional mix followed by H U L outlet. To find the target customers and to know the different promotional strategies used to attract these customers. To find if the promotional strategies had any impact in changing the customers perceptions about the importance of brand value.

SWOT Analysis of HUL

Strengths: 1. Strong and well differentiated brands with leading share positions 2. Distinctly placed products providing reach to every segment of society. 3. Consumer understanding and systems for building consumer insight GIM, VISAKHAPATNAM

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4. Integrated supply chain and well spread manufacturing units 5. Distribution structure with wide reach, high quality coverage The launch of project Shakti has helped HUL to create brand awareness and extensive reach in rural India. 6. Access to Unilever global technology, capability and sharing of best practices from other Unilever companies. 7. Well placed to take advantage of growth in rural India and lower strata of the society through Shakti. 8. It could look at introducing products from its parent company like margarine in order to cater to changing consumer tastes and opportunities in food sector. 9. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in various countries. Weaknesses: 1. Price positioning in some categories allows for low price competition like Amul captured Kwalitys market. 2. Limited success in changing eating habits of people. 3. Competitors focusing on a particular product and eating up HULs share, like Nirma focusing on soaps and detergents. Opportunities: 1. Growing consumer base due to increasing income levels and new consumers from lower strata of the society 2. Untapped market in branded Ayurvedic medicines and other such consumer products. 3. Opportunity in Food sector: changing consumer tastes 4. Expansion of horizons towards more and more countries Threats: 1. Unfavorable raw material prices due to inflation, reducing profitability. 2. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure 3. Spurious/counterfeit products in rural areas and small towns. 4. Reduction in real income of consumers due to high inflation.

3.2 Organization profile:

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Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and industry. In doing so, the Company is committed to exhibit the highest standards of corporate behaviour towards its consumers, employees, the societies and the world in which we live. The company recognises its joint responsibility with the Government and the Public to protect environment and is committed to regulate all its activities so as to follow best practicable means for minimizing adverse environmental impact arising out of its operations. The company is committed to making its products environmentally acceptable, on a scientifically established basis, while fulfilling consumers' requirements for excellent quality, performance and safety. The aim of the Policy is to do all that is reasonably practicable to prevent or minimize, encompassing all available knowledge and information, the risk of an adverse environmental impact arising from processing of the product, its use or foreseeable misuse. This Policy document reflects the continuing commitment of the Board for sound Environment Management of its operations. The Policy applies to development of a process, product and services, from research to full-scale operation. It is applicable to all company operations covering its plantations, manufacturing, sales and distribution, research & innovation centers and offices. This document defines the aims and scope of the Policy as well as responsibilities for the achievement of the objectives laid down. CUSTOMER
Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. we We are committed the to working of the to develop and and enhance right each of individual customers

respect

dignity

individual

the

consumer

association.

We will maintain good communications with consumers through company based information and consultation procedures. Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labelled, advertised and communicated.

COMPETITOR THE TOP 10 COMPANIES IN FMCG SECTOR

S. NO. Companies

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

ENVIRONMENT HUL has a well established system for auditing compliance to Unilever Framework Standards by the units in the areas of Safety Health and Environment. For this we use trained auditors from the company as well as auditors from British Standards Institution (BSI) who have been trained in Unilevers Framework Standards. Arising from the audits, units draw up an action plan, implementation of which is monitored centrally. Moreover, at the beginning of each year, each unit finalizes targets for improvement during the year for consumption of energy, water and generation of waste and emissions, and performance against these targets is included in the annual appraisal of managers of the unit. Each unit also has a Safety Health and Environment Coordinator at Officer Level, dedicated 100% to this role. The Company provides state-of the-art effluent treatment facilities for solid, liquid and gaseous emissions from its operations. We have installed Effluent Treatment Plants consisting of primary, secondary and tertiary treatment, as appropriate for the process and the type of effluent. To minimise its environmental impact, the companys policy is to conduct its operations well below the statutory norms. The company has taken a number of steps towards effluent treatment. 70% of our sites have been converted into zero liquid discharge sites. We encourage and monitor reuse of treated water in gardening, vermin composting and within the processes. HUL follows the 5- R principle i.e. Reduce (at source), Reuse, Recycle, Recover & Renew with respect to the waste generated in the process. Several Projects have been undertaken for converting waste into wealth. Reduce Developing of products which require less water e.g. Surf Excel Quick Wash, eliminate the use of water in soap manufacturing. Reuse of steam condensate in boilers. Recycling of secondary packaging material and thereby minimize the use of fresh wood. Recovering oils and other materials by installation of control devices up- stream of the treatment facilities Since 1996 we have been spearheading energy conservation drive across our existing units. There has been a significant reduction of specific energy consumption of over 50% between 1996- 2006. This has been achieved through induction of innovative energy efficient process technologies, use of alternative GIM, VISAKHAPATNAM

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sources of energy and recycling/reuse of energy stream where feasible. HUL's manufacturing sites set an annual environmental target for reduction of COD, hazardous waste, non-hazardous waste, water, energy, SOx and ODS and are equipped with a state of the art effluent treatment plant. To meet the challenge of global warming the sites are embarking on several projects to reduce GHG impact of our operations in line with Unilever's goal of achieving 25% reduction in GHG per tonne by 2012. TECHNOLOGY
Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science applying rigorous standards of product safety. Competition Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Business Integrity Unilever does not give or receive whether directly or indirectly bribes or other improper advantages for business or financial gain. No employee may offer give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained. Conflicts of Interests All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions.

TERMINOLOGY 1. FMCG Fast Moving Consumer Goods refers to any product which is regularly bought by consumers for their personal consumption or use. It usually refers to food, drink, personal care and household products. 2. CATEGORY MANAGEMENT The term Category Management was first used in the early 1990s. It encapsulates the key elements of:

Meeting consumer and shopper needs Maximising financial returns GIM, VISAKHAPATNAM

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Retailers and Suppliers working together to achieve the above

The Institute of Grocery Distributions (IGD) definition incorporates these elements: "Category management is the strategic management of product groups through trade partnerships, which aims to maximise sales and profit by satisfying consumer needs." Products are grouped to reflect consumers needs based on; how they are consumed or used, or the way that they are purchased. IGD defines a category as: A category is a group of products or services that reflect consumer usage or purchase behaviour 3. BOGOF Buy One Get One Free is a term used in Retail to describe the promotional mechanic of offering a product for sale with the benefit of receiving another product free. These promotions are attractive to consumers however for manufacturers and retailers they can generate little or no profit. The key commercial benefit is to drive consumption and therefore market share Other promotions include Buy One Get Second Half price and Three for Two offers. 4. ACCOUNT MANAGEMENT Larger Customers who regularly buy from Suppliers can be referred to as Accounts. These Customers need special attention and communication to ensure that they continue to perform well and buy the companys products. Account Managers are responsible for the relationship management and ensuring jointly agreed plans that help deliver profitable growth. 5. BRAND MANAGEMENT Brand Management is the function within an organisation responsible for defining the strategy for a brand or group of brands. Brand Managers work closely with other functions including Research and Development, Finance and Sales to ensure the profitable growth of their brand portfolio. Their responsibilities can include New Product Development, Advertising and Promotions, Pricing and Packaging. 6. F.O.B. Free On Board is an International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This often relates to goods imported from the Far East. 7. PRIVATE (OWN) LABEL In retailing an own label product is one that is labeled by the retailer as its own brand even the retailer has taken no more than a supervisory role in the production of the item. Companies may choose to own brand or own label items they are buying and selling in order to build the value of their own brand name or so that they can appear to cover a wider product range than they

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Some branded manufacturers choose to make private label products however others decide to remain as

An overrider is a discount offered to a customer by a supplier. The discount is based on the volume of product sold within a specific time period. It is usually linked to growth of the suppliers sales however may include other variables including specifying a minimum range or certain promotions. The overrider discount is usually not deducted from invoice. It is a separate payment. 9. CONSUMER DATA This is a valuable tool to assist in the effective development of sales and profit for Manufacturers and suppliers. Consumer data can be collected in a variety of ways and can be both quantities and qualitative. Data can be collected at point of purchase via EPOS (Electronic Point of Sale the till!) and retailers loyalty cards. There are organizations which supply data which has been tailored to be specific to a company or market sector. 10. ECR = EFFECTIVE CONSUMER RESPONSE Efficient Consumer Response or ECR is a business concept aimed at better satisfying consumer needs, through businesses and trading partners working together.

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CHAPTER-4
Data Tabulation and Analysis

ANALYSIS
TABLE -1: Promotional strategies used by you to promote HUL products. Option Media advertisement Sales promotion Publicity Percentage 17% 45% 38% Respondents 34 90 76

GRAPH

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INFERENCE: Sales promotion is ranked the highest at 45% is the promotional strategy prevailed followed by Media advertisement at 17% and Publicity at 38%

TABLE -2: Strategies used by you to change customer buying behavior Option By visual merchandising Offering free samples By giving discounts Percentage 38% 45% 17% Respondents 76 90 34

GRAPH:

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INFERENCE:
From the above research it is inferred that visual merchandising and offering samples are the major strategies used to boost sales. Followed by offering price discounts is followed.

TABLE -3: Are the company people providing training Option Yes No Percentage 89% 11%

GRAPH:

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INFERENCE:
From the above research it is inferred that company people offering training for the retailers who the important bridges between the producer and end user. Followed by very low number of outlet are missed out from the training ,the reasons may be due to very low scale of stock they are moving and the age and behavior of the person.

TABLE -4: Important factors of training

Options Selling skills Understanding customer perception Promotional activities All the above

Percentage 8% 4% 12% 76%

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GRAPH:

INFERENCE:
From the above research it is inferred that in training for the retailers importance is given to promotional activities and selling skills. Followed by priority is given to understanding consumer behavior.

TABLE -5: Level of

motivation Percentage 82% 0% 18%

Options Yes No Up to some extent

GRAPH:

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INFERENCE:
From the above research it is inferred that above 81% of the retailers said that company people is trying to motivate them. Followed by 19% of retailers said that up to some extent they are trying to motivate them.

TABLE-6: Styles

of motivation Percentage 74% 5% 21%

Options By conducting events By conducting seminars By interacting with you

GRAPH:

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INFERENCE:
From the above research it is inferred that company people is trying to motivate them by conducting events, contests and interacting with them. Followed by very low are said that it is done by conducting seminars.

TABLE -7:

Arranging material for promotional activities Percentage 100% 0%

Options Yes No
GRAPH:

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INFERENCE:
From the above research it is inferred that 100% of the sample agreed that company people provide the material equipment and decorative items are provided by the company it self.

TABLE -8:

Reward for performance Percentage 100% 0%

Options Yes No
GRAPH:

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INFERENCE:
From the above research it is inferred that 100% of the given sample said that reward system is there for the performance in the sales promotion.

TABLE -9:

Benefits for crossing targets Percentage 40% 28% 32%

Options Commissions Gifts Offering extra stock

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GRAPH: Benefits for crossing targets

INFERENCE:
From the above research it is inferred that commissions and offering extra stock are the main benefits that retailers get from the company. Followed by very low are said that gifts also offered as benefits as for boosting sales.

TABLE -10:

Forms of benefits Percentages 8% 12% 80%

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Options Monetary Non-monetary Both

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GRAPH: Form of benefits

INFERENCE:
From the above research it is inferred that benefits for generating more sales are in the form of both in monetary and non-monetary.

TABLE -11: Conducting contest and events

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MANAGEMENT THESIS -I Options Yes No Percentage 69% 31%

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GRAPH: Conducting contest and events

INFERENCE:
From the above research it is inferred that company people is trying to motivate them by conducting events, contests. Followed by very low are said that there are no such things but oral motivation is given.

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CHAPTER-5
Findings, Suggestions, & Conclusion

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5.1 FINDINGS
It is inferred that sales promotion is the major promotional practices founded in the given
sample.

Even though media advertisements and publicity are also accepted by enough number of
retailers sales promotion gets higher percentage response.

It is also inferred that visual merchandising and offering samples are the major strategies used
to boost sales, offering price discounts is also followed.

Company people offering training for the retailers who the important bridges between the
producer and end user. Followed by very low number of outlet are missed out from the training.

Overall, the study reported here provides an encouraging beginning in understanding the
relationship between sales promotion and gambling behaviour.

The major purpose of training for the retailers is to give knowledge on promotional activities
and selling skills. Priority is given to understanding consumer behavior also.

Majority of the retailers said that company people is trying to motivate them. Followed by very
low retailers said that up to some extent they are trying to motivate them.

it is inferred that company people is trying to motivate them by conducting events, contests and
interacting with them.

it is inferred that 100% of the sample agreed that company people provide the material
equipment and decorative items are provided by the company it self

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it is inferred that 100% of the given sample said that reward system is there for the performance
in the sales promotion.

Commissions and offering extra stock are the main benefits that retailers get from the company.
Gifts also offered as benefits as for boosting sales.

it is inferred that benefits for generating more sales are in the form of both in monetary and
non-monetary.

The impact of sales promotion can have on individuals affective responses. Results from the
affect manipulation demonstrate that the receiving of a sales promotion similar to a gift or voucher evokes a positive affective response.

5.2 SUGGESTIONS
It is suggested that individuals who receive sales promotion are more risk-averse in making bets when the probability of winning is high, than those who did not receive any sales promotion. It is proposed that individuals who received sales promotion would bet more money when the probability of winning was high (50%), than those who did not receive sales promotion, as the threat of losing their positive state was not great. The results obtained through this study cast doubt over the use of sales promotion as an effective marketing tool for casino managers.. Further, implications can tentatively be expanded to encompass other forms of marketing areas. For example, the advertising of gambling establishments as an exciting, arousing place may evoke a positive affective response which may result in the avoidance of gambling behavior. It is suggested that individuals who receive sales promotion are more risk-averse in making bets when the probability of winning is high, than those who did not receive any sales promotion.

5.3 CONCLUSION
By the above research following conclusions are made.. Sales promotion is the major promotional practices even though media advertisements and publicity are also used sales promotion is practiced more. Visual merchandising and offering samples are the major strategies used to boost sales, offering price discounts is also followed.

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Company people offering training the major purpose of training for the retailers is to give knowledge on promotional activities and selling skills. Priority is given to understanding consumer behavior also. Company people are trying to motivate retailers by conducting events, contests and interacting with them. Company people provide the material equipment and decorative items to promote sales. And also reward system is there for the performance in the sales promotion. Commissions and offering extra stock are the main benefits that retailers get from the company. Gifts also offered as benefits as for boosting sales both in monetary and non-monetary.

5.4BIBLOGRAPHY
List of books and other material referred are Marketing management, ICFAI National college Customer Relationship Management - Stanley A. Brown Consumer behavior, ICFAI National college PHILIP KOTLER book of marketing management Various ICFAI published journals. Browsing various articles and magazines. Brooks, I., 1999, Organisational Behaviour, Financial Times Management, London Consumer perceptions of service quality, Journal or Retailing, Vol. 64 spring, 1988, pp14-40 Parasurman, A. et al., 1985, A Conceptual model of Service Quality and its Implications For Future Research, Journal of Marketing, Vol. 49, 1985, pp41-50

To gather the required information regarding the present study and to substantiate it with sufficient theoretical evidences, the following references were referred Anderson, G. and Brown, R., 1984, Real and Laboratory Gambling, Sensation-Seeking and Arousal, in British Journal of Psychology, Vol.75, pp.401-410. Babakus, E., Tat, P. and Cunningham, W., 1988, Coupon Redemption: A Motivational Perspective, in Journal of Consumer Marketing, Vol.5, No.2, pp.37-43. Border, G., 1988, High Stakes in Direct Marketing, in Direct Marketing, April, pp.36-38.

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Chandon, P., 1995, Consumer Research on Sales Promotions: A State-of-the-Art Literature Review, in Journal of Marketing Management, Vol.11, pp.419-441. Flanagan, J., 1988, Sales Promotion: The Emerging Alternative To Brand-Building Advertising, in The Journal of Consumer Marketing, Vol.5, No.2, pp.45-48. Fishbein, M. 1967, The Relationship between Beliefs, Attitudes and Behaviour, in Readings in Attitude Theory and Measurement, Fishbein, M. ed., pp.199-223. Gupta, S., 1988, Impact of Sales Promotion on When, What, and How Much to Buy, in Journal of Marketing Research, Vol.25, pp.342-355. Hartley, S. and Cross, J., 1988, How Sales Promotion Can Work For and Against You, in The Journal of Consumer Marketing, Vol.5, No.3, pp.35-42. Kimball, R., 1989, An Exploratory Report of Sales Promotion Management, in Journal of Consumer Marketing, Vol.6, No.3, pp.65-75. Mano, H., 1994, Risk-Taking, Framing Affects, and Affect, in Organizational Behaviour and Human Decision Making Process, Vol.57, pp.38-58.

Glossary Site
www.hul.co.in http://business.mapsofindia.com/banks-in-india/hdfc-credit-card.html http://www.indiaprwire.com/pressrelease/financial-services/200709134522.htm http://www.networkmagazineindia.com/200511/coverstory02.shtml http://www.outlookmoney.com/scripts/IIH021C1.ASP? SectionID=10&CategoryID=89&ArticleID=1436 www.tradepromotion.in www.fmcgtradepromotion.in.com www. naukrihub.com www.iri.com www.indian institute of management.com www.the fmcg &retail marketing blog.com

5.5QUESTIONNAIRE
Annexure:

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1. What are the promotional strategies used by you to promote HUL products. a) Media advertisement b) Sales promotion c) Publicity 2. What are the strategies used by you to change customer buying behavior a) By visual merchandising b) Offering free samples c) By giving discounts 3. Are company people train you a) Yes b) No 4. What are the factors that are given importance in the training program a) Selling skills b) Understanding customer perception c) Promotional activities d) All the above 5. Are the company sales people try to motivate you to generate business. a) Yes b) No c) Up to some extent 6. What are the motivating patterns they follow? a) By conducting seminars b) By interacting with you c) Product demos 7. Is there any events and contests conducted by the company a) Yes b) No 8. Had company people provide equipment required to promotion a) Yes b) No 9. Do you get any discount from the company sales people by reaching the margins a) Yes b) No 10 What are the benefits you get by crossing the margins a) Getting commissions b) Gifts c) Offering extra stock 11. In which form the company is offering you benefits a) Monetary b) Non monetary c) Both

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