Professional Documents
Culture Documents
PROJECT REPORT ON
BL Agro
SUBMITTED TO ---MR ANIL CHAND
BEG SUBMITTED BY FAISAL
INTRODUCTION TO BL AGRO
CONTENTS 1INTRODUCTION 2OBJECTIVE 3METHODOLOGY 4COMPANY PROFILE 5LITRATURE 6DATA PRESE
NTATION 7CONCLUSION
8RECOMMENDATION
9BIBLIOGRAPHY
ACKNOWLEDGEMENT
CHAPTER 1
INTRODUCTION AND HISTORY
With a history that goes back to 50 years, B.L. Agro Oils Ltd. is a company with
a simple corporate objective - to manufacture, package and market the
purest possible edible oil that would offer healthier and tastier solution to mi
llions of consumers. Currently, B.L. Agro is in the business of Refining, Qualit
y Control, Packaging and Marketing of branded mustard and other edible oils
VISION To be a way of life for every Indian.
MISSION
To be the benchmark in purity and perfection. To achieve a leadership position i
n the Indian market and to become the preferred Indian edible oil name globally.
QUALITY POLICY
B.L. Agro Oils Ltd. is committed to total customer satisfaction, and compliance
with regulatory bodies at all times and at maximum effectiveness. We aim to - Co
nsistently enhance our understanding of market dynamics and changing customer ne
eds so as to offer finest quality products that at all times meet our customers'
expectations and the ever changing demands of the market place. - Provide a hig
h level of service to our customers with minimum cause for
complaint. - Maintain a healthy & constructive work environment that enables per
sonnel to produce optimal output. - Continually comply with the requirements of
ISO 9001:2000, ISO 14002:2004, HACCP and other government regulations and contin
uously improve the effectiveness of our Quality Management System. With a histor
y that goes back to 50 years, B.L. Agro Oils Ltd. is a company with a simple cor
porate objective - to manufacture, package and market the purest possible edible
oil that would offer healthier and tastier solution to millions of consumers. C
urrently, B.L. Agro is in the business of Refining, Quality Control, Packaging a
nd Marketing of branded mustard and other edible oils.
MANAGEMENT
The foundations of B.L. Agro were laid half a century ago by its Managing Direct
or, Shri Ghanshyan Khandelwal - a veteran of the Indian mustard industry. Since
then the management of B.L. Agro has gained an unmatched, in-depth insight of th
e industry and the continuously evolving customer needs. The leadership at B.L.
Agro has a vision for the future and their acumen in adapting to the changing ti
mes has translated into consistent growth by the company. However, the most impo
rtant attribute of the B.L. Agro leadership is the un-
fallible commitment towards quality, towards customers and towards community at
large. At B.L. Agro 'No Compromise with Quality' is a guiding philosophy. And th
e management takes it as their responsibility to not just ensure the highest qua
lity standards of company's products but also to instil this 'quality attitude'
in every member of the B.L. Agro organization.
Another distinctive characteristic of the B.L. Agro management team is their str
ong belief that Success and growth do not mean much unless accompanied by trust a
nd respect from the community. And over the years this belief has ensured that as
a corporate citizen, B.L. Agro Oils Ltd. earns an image of one of the most resp
ected and revered organisation in its region of activity
A true entrepreneur, Ghanshyam Khandelwal stepped into the mustard oil trading b
usiness in the 1950s when he was still at a very young age. Beginning from Barei
lly, he single-handedly expanded operations and soon transformed Bail Kolhu into
one of the most preferred mustard oil brand in the entire belt of Eastern UP. A
man of foresight and vision Ghanshyam Khandelwal has been the guiding force beh
ind consistent growth of B.L. Agro Oils Ltd. With an eye on the future, he has,
over the years, displayed a tremendous prowess for anticipating the changing con
sumer needs and has repeatedly led the organisation to be a winner in a dynamic
industry scenario. The mantras of
his success include his unflinching commitment towards quality and his passion f
or perfection.
An un-doubted achiever, he is a man of undaunted determination and courage along
with exemplary business acumen. What distinguish Ghanshyam Khandelwal are his p
hilosophies that originate from his commitment towards the community. A man of v
alues, he strongly believes in business ethics and corporate social responsibili
ties. Ghanshyam Khandelwal, Managing Director Post Graduate in Commerce, Ashish
Khandelwal joined his father's business at a very young age. A quick learner and
a very hard worker he learnt the nuances of the trade within no time and establ
ished himself as a growth motivator by bringing in new-age marketing concepts an
d fresh opportunities. With extraordinary abilities in sales and channel managem
ent, Ashish
Khandelwal has an unmatched hold on the market pulse. Still in his prime youth,
he has already played a key role in taking B.L. Agro to newer heights. In his le
adership, the company entered into the consumer packs segment and the venture re
sulted in unprecedented success. Having spent over 12 years in this trade, Ashis
h Khandelwal possesses a rare combination of experience as well as youthful exub
erance. With a futuristic outlook, he has an unmatched ability to think ahead of
the times and a vision that is set to take B.L. Agro into a glorious future.
Ashish Khandelwal
Director - Finance & Sales BTech from IET, Lucknow and MBA from ICFAI, Hyderabad
, Richa Khandelwal adds a fresh dimension to the management competencies at B.L.
Agro. Among her many contributions to the organisation is her vision to take B.
L. Agro to the highest national and international level. With path-breaking idea
s, Richa Khandelwal has played a key role in further strengthening the Bail Kolh
u and other B.L. Agro brands and has led its expansion into Delhi NCR and other
newer territories with outstanding success. In a short span of time, she has tur
ned Bail Kolhu into a household name in Delhi that has already become the larges
t selling mustard oil in certain regions.
Always a forward looking person, Richa Khandelwal has helped the organisation ge
t into an overdrive with her astute marketing strategies and innovative techniqu
es.
Richa Khandelwal
Director - Marketing
What Drives Our Success The Market and Consumer Insights possessed by B.L. Agro
leadership is unparalleled. B.L. Agro understands that Fooding habits of consume
rs are very individualistic and vary from house to house. And in order to make a
long term relationship with the collective base, the company needs to pack Real
Customer Delight in each pack that it offers. Moreover what has brought laurels
to B.L. Agro and awarded it a leadership position is the company's ability to a
nticipate and adopt to Market Demand Shifts resulting from either consumer Livin
g Pattern Shifts or any other reason. At B.L. Agro, change has been one of the m
ost consistent processes. Be it technological capabilities, be it the strength o
f human minds or be it the collective efficiencies, B.L. Agro has always anticip
ated the changing environment and empowered itself for the same.
The most important success driver at B.L. Agro is its ability to offer Consisten
cy of Highest Quality Standards. Pack by pack, batch by batch, consignment by co
nsignment, the products of B.L. Agro carry exactly the same quality and purity s
tandards for which they have gained widespread respect
The Ideal Manufacturing Product Mix Bail Kolhu At B.L. Agro Oils Ltd., The sourc
ing, quality control and packaging of Bail Kolhu Bail Kolhu Kachchi Ghani Mustar
d Oil is the flagship is performed to match the highest standards The Double Fil
ter Process ensures brand of the company. This is a Grade A Mustard Oil and that
only the purest product is despatched as Bail Kolhu. due to its unique taste an
d ideal pungency, it enjoys a tremendous consumer preference throughout the stat
es of B.L. Agro has an in-house Quality Control laboratory with a Gas Liquid UP,
Uttaranchal and Delhi. Chromatograph that ensures the purity and PFA certified
quality in each and every pack of Bail Kolhu. Bail Kolhu is a clear market leade
r in most of its Genesis of Bail Kolhu distribution territories and commands alm
ost monopolistic leadership position in many of the markets. B.L. Agro Oils Ltd.
started trading in Bail Kolhu Kachchi Ghani Mustard Oil in Bail Kolhu also enjo
ys a very high level of brand recall 1958. In the year 1999, Bail Kolhu was laun
ched in consumer packs and in the first and brand loyalty amongst a vast consume
r base. year itself, it grossed astonishing sales of Rs. 60 crores. Mohan Dhara
Mohan Dhara is a well accepted brand the Refined Since then the sales of Bail Ko
lhu has consistently increased andin today Bail Kolhu Oil segment. territories a
nd commands almost is a clear market leader inSoyabean most of its distribution
monopolistic leadership position in many of the markets. The entire belt of East
ern Balance Lite UP is a stronghold of Bail Kolhu and the brand enjoys a popular
status in Western This is a fast growing brand that has facilitated the advent
UP, Uttarakhand, Delhi & NCR. Within Delhi, Bail Kolhu is the number one of B.L.
Agro in the Refined Vegetable Oil segment. Mustard Oil Brand in East Delhi toda
y. The company is spreading its wings to Aviral Dhara West Bengal & Jharkhand al
so. Bail Kolhu also enjoys a very high level of brand Aviral Dhara is a multi-pr
oduct brand of Mustard Oil, loyalty amongst its vast consumer base. Palmolein Oi
l, and Vegetable Oils. Having gained instant Marketing Strategy acceptance in th
e market, the brand is on a steady growth chart. Bail Kolhu is marketed through
a vast network of distributors and retailers. New Product Development In its que
st to further expand its operations and reach The high customer demand of the Br
and ensures that the channel partners remain for larger customer base, motivated
at all time and work with great deal of determination and enthusiasm to B.L. Ag
ro is in the process of developing ambitious new push the sales of Bail Kolhu. p
roducts. On the other hand Bail Kolhu is consistently advertised and promoted th
rough the use of mass media as well as through regular participation in consumer
fairs which ensure its presence in the top of the mind recall set of the consum
ers as well as
Mohan Dhara is a superior quality Refined Soyabean Oil. Since B.L. Agro Oils Ltd
. introduced Mohan Dhara a few years ago, the brand has created its acceptance i
n a highly competitive market. On the product composition front, Mohan Dhara pos
sesses highest levels of transparency among its competitive brands, which is a m
easure of its purity and supreme quality as a healthy product. Every pack of Moh
an Dhara contains finest Refined Soyabean Oil produced by an elaborate refining
process at the B.L. Agro plant. For Mohan Dhara, crude soyabean oil of specific
quality is sourced from either domestic or overseas markets, and put through Che
mical Refining process using MNR and Nitrogen Blanketing technology. Refining Pr
ocess - Why chemical, & why not Physical? The purpose of refining edible oils an
d fats is to remove free fatty acids and other objectionable
substances including impurities while maintaining the nutritional value and ensu
ring the quality and stability of the end product.
There are two main refining processes used on crude oils, chemical/alkali and ph
ysical refining, which differ principally in the way free fatty acid are removed
.
Chemical Refining Chemical/alkali refining consists of following under mentioned
standard steps: Degumming It is the first step of chemical refining. Its purpos
e is to remove seed particles, impurities, and most of the phosphatides, carbohy
drates, proteins and traces of metals. The crude oil is treated with food grade
processing acids and/or water at a temperature around 700C which leads to hydrat
ion of most of the phosphatides, proteins, carbohydrates, and traces of metals.
The hydrated material precipitates from the oil and is removed. Neutralization A
lkali neutralization reduces the content of the following components: Free fatty
acids, oxidation products of free fatty acids, residual proteins, phosphatides,
carbohydrates, traces of metals and a part of the pigments. The oil is treated
with an alkali solution (caustic soda) that reacts with the free fatty acids pre
sent and convert then into soaps stock. The mixture allows then to separate the
oil phase freed from fatty acids that floats on top from a layer phase of soap,
alkali solution and other impurities, which is drawn off. The oil is then washed
with water to remove the soap, alkali solution and other impurities, when it is
ready for decolorizing or deodorizing process Bleaching
The purpose of bleaching (decolorizing) is to reduce the levels of pigments such
as carotenoids and chlorophyll, but also further remove residues of phosphatide
s, soaps, traces of metals, oxidation products, and proteins. These trace compon
ents interfere further processing and reduce the quality of the final product. T
hese substances are removed by adsorption with activated clay and silica. If hea
vy polycyclic aromatic hydrocarbons are present, activated carbon is used for th
eir removal. Dosage of these adsorption agents is adjusted to ensure the removal
of the specific substances. The bleaching clay/silica containing all these subs
tances is separated by filtration. These processes are partly done under vacuum
and at temperature below 1100C.
Deodorization Deodorization is simply a vacuum steam distillation process that r
emoves the relatively volatile components, that give rise to undesirable flavour
s, colours and odours in fats and oils. This is feasible because of the great di
fference in volatility between these undesirable substance and the triglycerides
(oils & fats).
Depending on the residence time in the deodorizer, the process is carried out un
der vacuum (1-3 torr) and at a temperature around 2500C, and using a stripping m
edia such as super heated dry steam since the substances for odour and flavours
are usually volatile; conditions are adopted within these ranges as appropriate
to ensure the removal of specific substances. Further
removal of proteins is achieved at this step. Careful execution of these four pr
ocessing steps ensures that fully refined oils possess good organoleptic and phy
siochemical qualities. The extent of protein removal is of critical importance t
o absence of allergenicities. PHYSICAL OIL REFINING
.
C u r r e n t M a r k e t
A t p r e s e n t M o h a n D h a r
Balance Lite Balance Lite is a fast growing brand that has facilitated the adven
t of B.L. Agro in the Blended Oil segment The Blends in Balance Lite - Their Sel
ection & Benefits One Indian oil that is highest in Omega 3 fatty acid and lowes
t in saturated fatty acids and most stable oil is none other than mustard oil. H
ence, to meet our daily dietary requirements of the above selection of one of th
e blending components is definitely the mustard oil. The second one may be eithe
r great health oil, the Rice Bran or the soya oil. The other choices for second
blending oil may be any of the following high monounsaturated fatty acid oil i.e
. Groundnut, Sesame or Palmolein. The Benefits: 1. Balanced fatty acid intake a)
Essential fatty acid intake (which human body is unable to produce and has to d
epend only external sources b) Desirable Omega 3/Omega 6 ratio intake c) Consump
tion of oil/absorption of oil in and /on the product reduces making the product
less calorified 2. Both the Rice Bran & Soya oil are available in refined form.
As the refined oils have quite a high smoke point therefore increases to the des
ired level of frying temperature capacity of the blend making the raw Mustard oi
l eligible and capable for high temperature frying and cooking. 3. Blending of o
ils offers more such range of micronutrients as it contains of both of the oils.
4. The stability of the oil under normal conditions and during frying is
enhanced. 5. The stability of the food product which is being prepared from the
blend oil increases. 6. Blended oils are best for frying purpose because it tole
rates high temperature without breaking down. Nourishing Abilities of these Blen
ds This oil blends provide the benefits of two oils, thereby giving added value
to the consumers. Blended oils are better balanced in terms of fatty acid compos
ition. These have improved ratio of Omega 3/Omega 6 fatty acid. Blended oils hav
e wider range of vitamins & minerals. Blended oils are more stable for they have
wider range of antioxidants. Blended oil have more number of micronutrients so
vital for the growth and development. Blended oils have more number of phyto-che
micals, important for human health.
Products - Aviral Dhara - Palmolein and Mustard Oil Aviral Dhara brand of edible
oils comes with two variants Pakki Ghani Mustard Oil and Palmolein Oil. Having
gained instant acceptance in the market, the brand is on a steady growth chart.
Pakki Ghani - Pakki Ghani Mustard Oil is extracted from mustard seeds by employi
ng processing technology of oil expellers only. All the goodness of mustard oil
is there in pakki ghani oils as well. The only differences lies in its pungent o
dour. It is made especially for those who don't like the strong
smell and taste, otherwise it is as good as that of kachchi ghani oil. It contai
ns the so desirable essential fatty acid (which the human body cannot synthesize
) and in good numbers. It contains the very vital Omega 3 in highest proportion
among all the edible vegetable oils (12%). And it is very high in monounsaturate
d fatty acid (65%) and lowest in saturated fatty acid (5%). It is therefore, rat
ed even better then the olive oil. It also has high amounts of Vitamins A, E & K
. It also has rare minerals like selenium, magnesium, zinc, manganese, iron, cal
cium and phosphorus. It is one of the most stable edible vegetable oils because
of high amounts of antioxidants it possess. Its shelf life is very good. It is h
eart friendly. It is anti-carcinogenic. It is anti microbial. It is a medium of
preservation. Mustard oil, therefore, is widely used in preparation of pickles,
chutney and other preparations. It has a high smoke point, i.e. it burns at high
temperature which means that it is good for frying and deep frying purposes. At
B.L. Agro, the sourcing of Pakki Ghani Mustard Oil and Palmolein Oil is
performed with the same care and control. The crude oil is refined, filtered and
subjected to the stringent quality assurance processes before being forwarded t
o the packaging unit.
As a healthy and affordable option Aviral Dhara has generated unexpectedly high
demands within a very short span of time. While Bail Kolhu is preferred in the c
omparatively high and middle income households, Aviral Dhara Mustard as well as
Palmolein Oil has emerged as the popular choice in the lower income segments thr
oughout the region of its distribution that includes Uttar Pradesh, Uttarakhand
and Delhi. With the continuous geographic expansion of Bail Kolhu, Aviral Dhara
too keeps expanding its presence and forms an essential part of the company's pr
oduct portfolio. Aviral Dhara plays an important role in fulfilling the commitme
nts of B.L. Agro of reaching out and touching the lives of all consumer segments
.
NOURISH DELITE
It is increasingly recognized now that the balanced intake of saturated mono and
polyunsaturated fatty acids as well as Omega 3 and Omega 6 fatty acids is essen
tial for good health. As no single oil can supply appropriate quantities of all
these in ingredients, the only alternative method available for improving balanc
ed consumption of edible oils is to blend oils so that the
people have appropriate fatty acid composition in the oil they regularly use. Va
rious Blends Planned to be introduced through Nourish Delite Series: Mustard and
Soya Oil: As the mustard oil is rich oil Omega 3 fatty acid (an essential fatty
acid, which human body cannot synthesize) and very high in antioxidants content
, it is prudent to blend it with the ones those are deficient in it. One such oi
l is Soya oil which is least stable and very low in Omega 3 fatty acid. Mustard
and Rice bran Oil: Rice Bran oil is very healthy oil but it too is deficient in
Omega 3 fatty acid. Moreover, the extra heavy content of Rice Bran oil will also
help mustard oil to be more stable toward oxidation. Therefore, we plan to have
or blend of the two as well. Mustard and Olive Oil: One another good oil consid
ered is olive oil as it contains maximum amount of monounsaturated fatty acid, o
leic acid 71% but at the same time it is deprived of Omega 3 fatty acid. Therefo
re, to make olive oil also balanced healthy oil it has got to be blended with mu
stard oil. This blend will be wonderful. Rice Bran and Flax Seed Oil: The oil wh
ich has the maximum amount of Omega 3 fatty acid is flaxseed oil but because of
seed high content of Omega 3 fatty acid is stability is very poor. Therefore, to
get it stabilized so that can deliver its maximum benefit its blend with Rice B
ran oil will help consumer to take in adequate amount
of Omega 3 fatty acid. Rice Bran Oil and Soya Oil: We also have a plan to come o
ut with a blend of Rice Bran Oil and Soya Oil to enhance the self life of soya o
il. Product Development Process First of all we have pondered upon the strength
and weaknesses of individual edible oils and selected a few possible blends. The
n in the next step we have blended them in the desired proportions and done all
the experiments at laboratory level to check it's properties, nutrition values a
nd stability & shelf life. In the third step the actual cooking/frying/deep fryi
ng is done and the frying properties and behavior is studied. How much oil is co
nsumed, how much oil is absorbed by the material prepared by frying/cooking in t
he blend medium. Finally, we have done all the above three excesses in other oil
/blends to see the comparative results. And then based on the above results corr
ected/amended the blend ratios. Now we are sure that what we are going to introd
uce are the best blends under current government regulations. This whole R & D o
n new product development is performed to the reputed oil & fats R & D house FAR
E Labs Gurgaon
B.L. Agro Oils Ltd. is also one of the selected oil players in the country that
have been granted the Blending License. With finest refining processes, unmatche
d trust on quality control, and well-oiled distribution mechanism, Nourish Delit
e is expected to grow into a successful edible oil brand in the pan-India market
s. The company is all set to begin its journey with a test launch in the metro m
arkets of India.
S.W.O.T ANALYSIS
SWOT stand for the strength, weakness, opportunities and threats. The analysis o
f strength and weakness focuses on internal factors that give the Organization c
ertain advantage and disadvantages in meeting the needs of its target market. Th
is factor derived from the environmental analysis in the preceding portion of th
e market plan. This allows the organization to determine what it does well and w
hat it needs to improve. STERENGTH:
Strength refers to competitive advantage or distinctive competencies that give t
he firm an advantage in meeting the needs of its target market. Any analysis of
the company strengths must be customer focused because strength are only meaning
ful when they assist the firm in meeting customer needs. WEAKNESS: Weakness refe
rs any limitation that a company might face in marketing strategy development or
implementation. Weakness should also be examined from a customer prospective be
cause customer often perceives weakness that a company cannot see. It suggests t
hat all firms should tie their strengths and weaknesses to customer requirements
. Only those strengths that relate to satisfying customer should be considered t
rue competitive advantages. Likewise, weakness that directly affects customer sa
tisfaction should be considered true competitive disadvantage. OPPORTUNITIES: Op
portunities refer to favorable condition in the environment that could produce r
eward for the organization if acted upon properly. That is, opportunities are si
tuation that exist but must be acted upon in order to benefit the firm. THREATS:
Threats refer to condition or barrier that may prevent the firm from reaching i
ts objectives. Like opportunities, threat must be acted upon to prevent them fro
m limiting the capability of the organization.
The SWOT analysis framework has gained widespread acceptance because it is simpl
e and a powerful tool for marketing strategy development. However, like any plan
ning tool, SWOT is only as good as the information contain within it. Strength I
ndustry leader in Oil manufacturing Superior product quality. Best talent in the
industry. A bunch of qualified professionals with employee age varies to all ag
es. Superior understanding of the market.
Weakness Customers are less aware about new products that is used by company. Th
e salary structure of the executive is below their expectations. Sales being fal
len in Ghee Sector. Opportunity Market leader in Oil Industry Providing nation w
ide distributionship C & F and Distributors. .
Threat It faces high competition among other companies.
CHAPTER 2
OBJECTIVE OF THE STUDY
Main objective of advertising and sales promotion 1-increase sale of the product
2-create regular demand of the product 3create steady demand Increase employment
opportunity in the societry
4aims at increanng the quality of the product 5reduce black marketing 6maintain the
goodwill of the company 7aims at quality improve ment The main objective of the
study is to know about the recruitment, advertising and sales promotin strategie
s adopted by BL Agro, India. The study will help to analyze the overall developm
ent of the employees satisfaction level & the general feeling about the various p
olicies of the company. The survey about the employee satisfaction will help the
organization to know about the overall development and satisfaction level among
st the employees about the human resource development will help the management t
o take necessary actions. The specific objectives of the study are: To know the
functioning of HRD in company. To get familiar with the work structure. To know
the various HRD workers of BL Agro, India likes Training & Development. To asses
s the awareness & involvement of the employees of the Organization in respect of
HRD functions.
LIMITATIONS
CHAPTER--3
RESEARCH METHODOLOGY
There are various number of research methods to conduct any study Research is to
explore various functions of adv, which have been, adopted by the company to as
sess the involvement of the employees of the Organisation. Tools of Data Collect
ion 1. Primary Source. 2. Secondary Source. Primary Source:Primary source is the
source, which is collected for the first time. Primary source includes question
naire, personal interview, observation, circulars etc. Secondary Source:Secondar
y source is the source which is not collected for the first time like journals,
books etc. To ascertaining the company profile and product study, I took the hel
p of data published in the company journal and various other articles published
in magazines.
LITERATURE REVIEW ADVERTISING & SALES PROMOTION
Sales promotion is one of the four aspects of promotional mix. (The other three
parts of the promotional mix are advertising, personal selling, and publicity/pu
blic relations.) Media and nonmedia marketing communication are employed for a p
redetermined, limited time to increase consumer demand, stimulate market demand
or improve product availability. Examples include:
contests point of purchase displays rebate (marketing) free travel, such as free
flights
Sales promotions can be directed at either the customer, sales staff, or distrib
ution channel members (such as retailers). Sales promotions targeted at the cons
umer are called consumer sales promotions. Sales promotions targeted at retailer
s and wholesale are called trade sales promotions. Some sale promotions,
particularly ones with unusual methods, are considered gimmick by many.
Consumer sales promotion techniques
Price deal: A temporary reduction in the price, such as happy hour Loyal Reward
Program: Consumers collect points, miles, or credits for purchases and redeem th
em for rewards. Two famous examples are Pepsi Stuff and AAdvantage. Cents-off de
al: Offers a brand at a lower price. Price reduction may be a percentage marked
on the package. Price-pack deal: The packaging offers a consumer a certain perce
ntage more of the product for the same price (for example, 25 percent extra). Co
upons: coupons have become a standard mechanism for sales promotions. Loss leade
r: the price of a popular product is temporarily reduced in order to stimulate o
ther profitable sales Free-standing insert (FSI): A coupon booklet is inserted i
nto the local newspaper for delivery.
On-shelf couponing: Coupons are present at the shelf where the product is availa
ble. Checkout dispensers: On checkout the customer is given a coupon based on pr
oducts purchased. On-line couponing: Coupons are available on line.
Mobile couponing: Coupons are available on a mobile phone. Consumers show the of
fer on a mobile phone to a salesperson for redemption. Online interactive promot
ion game: Consumers play an interactive game associated with the promoted produc
t. See an example of the Interactive Internet Ad for tomato ketchup. Rebates: Co
nsumers are offered money back if the receipt and barcode are mailed to the prod
ucer. Contests/sweepstakes/games: The consumer is automatically entered into the
event by purchasing the product. Point-of-sale displays:o
Aisle interrupter: A sign that juts into the aisle from the shelf. Dangler: A si
gn that sways when a consumer walks by it. Dump bin: A bin full of products dump
ed inside.
o
o
o
Glorifier: A small stage that elevates a product above other products. Wobbler:
A sign that jiggles. Lipstick Board: A board on which messages are written in cr
ayon. Necker: A coupon placed on the neck of a bottle. YES unit: "your extra s
alesperson" is a pull-out fact sheet.
o o
o o
Kids eat free specials: Offers a discount on the total dining bill by offering 1
free kids meal with each regular meal purchased.
Trade sales promotion techniques
Push money: also known as "spiffs". An extra commission paid to retail employees
to push products.
Trade discounts (also called functional discounts): These are payments to distri
bution channel members for performing some function . Political issues Sales pro
motions have traditionally been heavily regulated in many advanced industrial na
tions, with the notable exception of the United States. For example, the United
Kingdom formerly operated under a resale price maintenance regime in which manuf
acturers could legally dictate the minimum resale price for virtually all goods;
this practice was abolished in 1964.[1] Most European countries also have contr
ols on the scheduling and permissible types of sales promotions, as they are reg
arded in those countries as bordering upon unfair business practices. Germany is
notorious for having the most strict regulations. Famous examples include the c
ar wash that was barred from giving free car washes to regular customers and a b
aker who could not give a free cloth bag to customers who bought more than 10 ro
lls.[2]
Promotion (marketing) Promotion involves disseminating information about a produ
ct, product line, brand, or company. It is one of the four key aspects of the ma
rketing mix. (The other three elements are product marketing, pricing, place.) P
romotion is generally sub-divided into two parts:
Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, In
ternet, Mobile Phones, and, historically, illustrated songs) in which the advert
iser pays an advertising agency to place the ad Below the line promotion: All ot
her promotion. Much of this is intended to be subtle enough for the consumer to
be unaware that promotion is taking place. E.g. sponsorship, product placement,
endorsements, sales promotion, merchandising, direct mail, personal selling, pub
lic relations, trade shows
"it may not be aimed specifically at minors or, in particular, depict minors con
suming these beverages; it shall not link the consumption of alcohol to enhanced
physical performance or to driving;
it shall not create the impression that the consumption of alcohol contributes t
owards social or sexual success; it shall not claim that alcohol has therapeutic
qualities or that it is a stimulant, a sedative or a means of resolving persona
l conflicts; it shall not encourage immoderate consumption of alcohol or present
abstinence or moderation in a negative light; it shall not place emphasis on hi
gh alcoholic content as being a positive quality of the beverages."
Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, In
ternet, Mobile Phones, and, historically, illustrated songs) in which the advert
iser pays an advertising agency to place the ad Below the line promotion: All ot
her promotion. Much of this is intended to be subtle enough for the consumer to
be unaware that promotion is taking place. E.g. sponsorship, product placement,
endorsements, sales promotion, merchandising, direct mail, personal selling, pub
lic relations, trade shows