A project report on promotional strategies of glasstech ltd.

Chapter 1 introduction to marketing and promotions concept.

Promotion

Definition: Promotions refer to the entire set of activities, which communicate the product,
brand or service to the user. The idea is to make people aware, attract and induce to buy the
product, in preference over others.

Description: There are several types of promotions. Above the line promotions include
advertising, press releases, consumer promotions (schemes, discounts, contests), while below
the line include trade discounts, freebies, incentive trips, awards and so on. Sales promotion is
a part of the overall promotion effort.

Or
In marketing, promotion is advertising a product or brand, generating sales, and creating brand
loyalty. It is one of the four basic elements of the market mix, which includes the four P's: price,
product, promotion, and place.[1]
Promotion is also defined as one of five pieces in the promotional mix or promotional plan. These
are personal selling, advertising, sales promotion, direct marketing, and publicity.[2]A promotional mix
specifies how much attention to pay to each of the five factors, and how much money to budget.
Promotion covers the methods of communication that a marketer uses to provide information about
it's product. Information can be both verbal and visual.

Important of promotions

Sales of the goods in imperfect market:

Promotion helps in the sales of the goods in imperfect market. In the

imperfect market conditions, the product cannot be sold easily only on the

basis of price differentiation. It is the promotional activity that provides

information about the differences, characteristics and the multi-use of the

products of various competition in the market. The customer is attracted to

purchase the goods on the basis of such information successfully.

Filling the gap between producers and consumers:

Promotion helps in filling the gap between producers and consumers. Due to

the tough market condition, mass selling is quite impossible without

promotional activities. The distance between producers and consumers has so

widened in present days to get them touched with the product that

promotional activities are necessary.

Facing intense competition:

Promotion helps in facing intense competition in the market.When a

manufacturer increases his promotional spending and adopts an aggressive

strategy in creating a brand image, others are also forced to follow the suit.

This leads to promotional war. Without promoting the goods, the competition

is not possible in the market. So, it is necessary to face the competition in the

market with the help of promotional activities.

Large scales selling:

Promotion helps in the large selling of goods and services. Sales promotion is

the result of large-scale production. It can be achieved only by appropriate

methods of large scale selling. Large scale selling is possible with the help of
promotional activity. Due to the large selling of goods, there will be more

chance of promotion of goods. So, it is necessary to sell lot of goods in the

market for promotional activities.

Higher standard of living:

Promotion helps in the rising standard of the people.The promotional activities

increase the standard of living by providing the better goods at a lower rate

due to large scale production and selling. It help to increase the standard of

living in a good way. People can raise their standard of living with the help of

promotional activity. As the promotional activities increases, the standard of

living of people also increases. So, the promotional activity has a great role in

the increment of a standard of people so that they can live a good and happy

life.

More employment:

Promotion helps to create more employment opportunities. People can

gain employment opportunity with the help of promotional activities.
With the help of promotional activity, many workers get motivated
towards the work. Promotional activity helps to increase more
employment opportunities to the people who are unemployed, as the
promotional activities cannot be performed without the help of an
effective sales force and the specialists in various fields.

Increased trade pressure:

Promotion helps to increase trade pressure in the market.The growth of large

scales retailer, such as supermarkets, chain stores, etc. has brought greater
pressure on manufacturers for support and allowance. Promotional activities

help to decrease the trade pressure. There is need for promotional activities

to decrease the trade pressure.

Effective sales support:

Promotion helps in the sales support of the product.Sales promotion policies

are under the supplement to the efforts and impersonal salesmanship. Good

sales promotion materials make the salesmans effort more

productive.Promotion helps in the sales of theproduct. It provides good

support in selling the different types of goods. Sales of different types of

goods in the market are very necessary to increase the market economy.

Increased speed of product acceptance:

Promotion helps to increase the speed of the products acceptance.Most of the

sales promotion devices such as contests, premium coupons, etc. can be used

faster than other promotion methods such as advertising. The increase in

rapid speed of product acceptance has occurred with the help of promotional

activities. As the promotional activities are done, there will be direct effect in

the increment of a speed of the product. Increase in the speed of product

acceptance is very important in the competitive market. So, it is necessary to

increase the speed of product

Chapter 2 profile of glasstech

About the company

Glasstech Industries (I) Pvt. Ltd is a professional organization established in the year 2004 to meet the ever

increasing demand of architectural glass products for domestic markets in India and other countries. We are

working closely with architects, builders, structural glazing fabricators, contractors and end users by

delivering quality glass products.

Glasstech Industries (I) Pvt. Ltd is the processing division of Gutal Trading, one of the leading agency company

for all the glass & aluminium processing machineries and related products in Middle East & India. Company

promoted by Mr. P.G.Sathiapalan (Mr.Paul) having more than four decades experience in the domestic as

well as international Glass Industry.

The company has the capacity to engineer its products to suit tailor-made specific applications or

requirements to the esteemed clients worldwide. Thanks to the modernized equipments and highly qualified

& well experienced team of professionals having international exposure.

We at Glasstech Industries pledge and commit to meet or exceed all our clients expectations by delivering

world class quality products.

Or or
Glasstech Industries India Pvt. Ltd. is a professionally managed ISO 9001-2008 certified Company,

established in 1998 to promote and market high performance reflective architectural glasses.

Having its head office and factory at Taloja - district Raigad, with a warehouse of area 2,400 Sq. mtr. &

Factory of area 25000 Sq. mtr., with all modernized equipments for processing of glass managed by a

group of young & energetic staff offering services through Sales & Technical support.

The turn over for the last year was Rs. 85 Crores in India, whereas the total turnover (INDIA & UAE)

was Rs. 380 Crores.

History of the company ?

Product and services

Product

I. ANNEALED GLASS

All types Raw Glass as standard sheet of float glass.

Minimum glass size: 300 x 300

------------------------------------------------------------

Maximum glass size: 3600x6000

II. TOUGHENED / HEAT STRENGTHENED GLASSES

Toughened or tempered glass is a type of safety glass processed by controlled thermal or chemical

treatments to increase its strength. Uses - For faade, curtain walls, railings, shower doors, doors & table

tops, shelf glasses, etc

Minimum glass size: 300mm X 300mm

-----------------------------------------------------------

Maximum glass size: 2400mm X 6000mm

III. INSULATED GLASSES

Insulated glazing (IG), more commonly known as double glazing (or double-pane, and increasingly triple

glazing/pane) is double or triple glass window panes separated by a vacuum or gas filled space to reduce

heat transfer across a part of the building envelope.

Uses - faades & partitions

Minimum glass size: 300mm X 300mm

---------------------------------------------------------

Maximum glass size: 2800mm X 5000mm

Double glazed glasses, DGU with Argon, DGU with spider dongles, Laminated DGU , DGU with Louvers,

DGU with Georgian bars, triple glazed glasses

IV. LAMINATED GLASSES

Laminated glass is a type of safety glass that holds together by sandwiching a layer of Poly Vinyl Butyl

between pairs of glasses.

Minimum glass size: 250mm X 550mm

---------------------------------------------------------

Maximum glass size: 2600mm X 6000mm

Acoustic Laminated glasses, PVB laminated glasses, Sentry plus laminated glasses, Colour laminated

glasses, Triple laminated glasses

V. VALUE ADDED GLASS PRODUCTS

a) Ceramic fritted glasses:

Minimum glass size: 300x300

-------------------------------------------------

Maximum glass size: 2600x5100

b) Acid frosted glass c) Sand blasted glass

d) Lacquered Glass/Back painted glass

e) Glass Tiles

f) Heat Soaked Glass

Minimum glass size: 300x600

-------------------------------------------------

Maximum glass size: 3200x6800

Network and branches

Glasstech Industries India Pvt. ltd.

Registered Office & Factory Address

Plot No. L-112/113, MDIC,

Taloja Industrial Area, Taloja,

District Raigad, Maharashtra 410 208

1982 - Started GUTAL TRADING EST. in Dubai (Parent Company)

1996 - Started GUTAL TRADING (India)

2004 - Initiative for Processing Factory

2005 - GLASSTECH INDUSTRIES INDIA PVT LTD DGU & Tempered glass

2009 - Started Lamination and 2nd Tempering Line Size 6000*2440

2010 - ISO 9001:2008 certification

2013 - Joined Cooperate Office & Factory into Single Unit

2015 - Initiative For Second Factory in Coimbatore

Work culture and system

Organizational or reporting structure

Chapter 3 promotion introduction

Sales promotion

Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the

promotional mix are advertising, personal selling, direct marketing and publicity/public

relations.) Media and non-media marketing communication are employed for a pre-

determined, limited time to increase consumer demand, stimulate market demand or improve

product availability

Sales promotions can be directed at either the customer, sales staff, or distribution channel

members (such as retailers). Sales promotions targeted at the consumer are

called consumer sales promotions. Sales promotions targeted at retailers

and wholesaleare called trade sales promotions.

Sales promotion includes several communications activities that attempt to provide added

value or incentives to consumers, wholesalers, retailers, or other organizational customers to

stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or

purchase. Examples of devices used in sales promotion include coupons, samples,

premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Sales promotion is implemented to attract new customers, to hold present customers, to

counteract competition, and to take advantage of opportunities that are revealed by market

research. It is made up of activities, both outside and inside activities, to enhance company

sales. Outside sales promotion activities include advertising, publicity, public relations

activities, and special sales events. Inside sales promotion activities include window
 displays, product and promotional material display and promotional programs such as

premium awards and contests.[

Sale promotions often come in the form of discounts. Discounts impact the way consumers

think and behave when shopping. The type of savings and its location can affect the way

consumers view a product and affect their purchase decision.[2] The two most common

discounts are price discounts (on sale items) and bonus packs (bulk items).[2] Price

discounts are the reduction of an original sale by a certain percentage while bonus packs are

deals in which the consumer receives more for the original price.[2] Many companies present

different forms of discounts in advertisements, hoping to convince consumers to buy their

products.

There are many methods of sales promotion, including:

Money off coupons customers receive coupons, or cut coupons out of newspapers
or a products packaging that enables them to buy the product next time at a reduced
price

Competitions buying the product will allow the customer to take part in a chance to
win a prize

Discount vouchers a voucher (like a money off coupon)

Free gifts a free product when buy another product

Point of sale materials e.g. posters, display stands ways of presenting the product
in its best way or show the customer that the product is there.

Loyalty cards e.g. Nectar and Air Miles; where customers earn points for buying
certain goods or shopping at certain retailers that can later be exchanged for money,
goods or other offers

Loyalty cards have recently become an important form of sales promotion. They
encourage the customer to return to the retailer by giving them discounts based on the
spending from a previous visit. Loyalty cards can offset the discounts they offer by
making more sales and persuading the customer to come back. They also provide
information about the shopping habits of customers where do they shop, when and
what do they buy? This is very valuable marketing research and can be used in the
planning process for new and existing products.
 Various promotional strategies

Social Media

Social media websites such as Facebook and Google+ offer companies a way to promote products
and services in a more relaxed environment. This is direct marketing at its best. Social networks
connect with a world of potential customers that can view your company from a different perspective.
Rather than seeing your company as "trying to sell" something, the social network can see a
company that is in touch with people on a more personal level. This can help lessen the divide
between the company and the buyer, which in turn presents a more appealing and familiar image of
the company.

Mail Order Marketing

Customers who come into your business are not to be overlooked. These customers have already
decided to purchase your product. What can be helpful is getting personal information from these
customers. Offer a free product or service in exchange for the information. These are customers who
are already familiar with your company and represent the target audience you want to market your
new products to.

Product Giveaways

Product giveaways and allowing potential customers to sample a product are methods used often by
companies to introduce new food and household products. Many of these companies sponsor in-
store promotions, giving away product samples to entice the buying public into trying new products.

Point-of-Sale Promotion and End-Cap Marketing

Point-of-sale and end-cap marketing are ways of selling product and promoting items in stores. The
idea behind this promotional strategy is convenience and impulse. The end cap, which sits at the
end of aisles in grocery stores, features products a store wants to promote or move quickly. This
product is positioned so it is easily accessible to the customer. Point-of-sale is a way to promote new
products or products a store needs to move. These items are placed near the checkout in the store
and are often purchased by consumers on impulse as they wait to be checked out.

Customer Referral Incentive Program

The customer referral incentive program is a way to encourage current customers to refer new
customers to your store. Free products, big discounts and cash rewards are some of the incentives
you can use. This is a promotional strategy that leverages your customer base as a sales force.

Causes and Charity

Promoting your products while supporting a cause can be an effective promotional strategy. Giving
customers a sense of being a part of something larger simply by using products they might use anyway
creates a win/win situation. You get the customers and the socially conscious image; customers get a
product they can use and the sense of helping a cause. One way to do this is to give a percentage of
product profit to the cause your company has committed to helping.

Branded Promotional Gifts

Giving away functional branded gifts can be a more effective promotional move than handing out
simple business cards. Put your business card on a magnet, ink pen or key chain. These are gifts
you can give your customers that they may use, which keeps your business in plain sight rather than
in the trash or in a drawer with other business cards the customer may not look at.

Customer Appreciation Events

An in-store customer appreciation event with free refreshments and door prizes will draw customers
into the store. Emphasis on the appreciation part of the event, with no purchase of anything
necessary, is an effective way to draw not only current customers but also potential customers
through the door. Pizza, hot dogs and soda are inexpensive food items that can be used to make the
event more attractive. Setting up convenient product displays before the launch of the event will
ensure the products you want to promote are highly visible when the customers arrive.

After-Sale Customer Surveys

Contacting customers by telephone or through the mail after a sale is a promotional strategy that
puts the importance of customer satisfaction first while leaving the door open for a promotional
opportunity. Skilled salespeople make survey calls to customers to gather information that can later
be used for marketing by asking questions relating to the way the customers feel about the products
and services purchased. This serves the dual purpose of promoting your company as one that cares
what the customer thinks and one that is always striving to provide the best service and product.

Advantages and disadvantages of sales promotions

1. It stimulates in the consumers an attitude towards the product.

2. It creates a better incentive in the consumers to make a purchase. It is a

demand creator.

3. It gives direct inducement to the consumers to take immediate action.

4. It is flexible. It can be used at any stage of a new product introduction.

5. Sales promotion leads to low unit-cost, due to large-scale production and

large-scale selling.

6. It is an effective supporter of sales. It helps the salesman and makes his

effort more productive.

7. The promotional tools are the most effective to be used in increasing the
sales volume.

Sales promotion is effective when:

ADVERTISEMENTS:

(a) A new brand a introduced.

(b) We have to communicate a major improvement or attraction in product.

(c) Enlarging the result of advertising.

(d) Increasing the number of retail stores in order to sell out products.

Limitations of Sales Promotion:

1. Sales promotions are only supplementary devices to supplement selling
efforts of other promotion tools.

2. Sales promotion activities are having temporary and short life. The benefits
are also short-lived for three or four months. Then the demand will fall down.

ADVERTISEMENTS:

3. They are non-recurring in their use.

4. Brand image is affected by too many sales promotion activities. Consumers

are of the opinion that due to the lack of popularity and overstocking of
products of a company, these sales promotional activities are conducted.

5. There is a feeling in the minds of the customers that sales promotional

activity tools are used to sell inadequate or second grade products.

6. Discounts or rebates are allowed by boosting the prices of the goods, with a
view to sell at a gain, which is not real.

Advantage of Sales Promotion

1. Create Urgency
Sales promotions draw attention to a particular product or service being
offered. They distinguish a company from the rest of other in the
competition in terms of prices. When sales promotions are offered for a
limited time, they create urgency among customers because they have to
act before the promotion expires. As a result, the limited supply reduces
the time before which the customers have to react. In most cases, they will
cease to compare alternatives and purchase the item or service that is
offered at the best price and quality.
2. Maintain Trade Flows
One of the advantage of Sales promotion is that it keeps the trade flow
between distributors and retailers. This refers to products that have a
certain lifespan, as well as things that do not. For business it means that
items are regularly replenished with items that have been manufactured
recently. It also encourages distributors to buy more items and make sure
that they always have an adequate supply of sales, says Dryden. Very often,
suppliers / distributors purchase items according to need and how often a
commodity is sold. Therefore, if sales of an item is particularly slow,
dealers / suppliers are less likely to buy this item regularly, so it is more
likely to run out of reserves.

Disadvantage of sales promotion

1. Miscommunications
As with majority of sales promotions, either the dealer or the business that
offer the product do not benefit as much like before. Sales promotion is a
calculated risk, but it needs to be carefully planned and managed to be
truly effective. Sales promotions should be advertised to let the customers
know of the special offer. If there is a discrepancy between what is
advertised and the real deal, it will be viewed negatively by the public.
Retailers and distributors must ensure that any sales promotion that is
published should be honest, or else your own sales promotion itself will
act against your company, possibly tarnishing its reputation.
2. Price sensitivity
Sales promotions can be disadvantageous when they are offered quiet
regularly. The key to success with an effective sales promotion is its
irregular supply, and when it is a surprise for the customer. If it is done
too often, it creates price sensitivity among customers. Price sensitivity
should encourage the customers to buy things only when promoted into a
sale rather than buy at the regular retail price.

1. Attention Value:
Use of incentives helps in attracting a large number of buyers.

2. Useful in New Product Launch:

The tools of sales promotion like discount, free gift offer etc. are very
useful in launching new products. It convinces them to use new
products in place of the products which they may have been using
regularly.

3. Synergy in Total Promotional efforts:

Sales promotion tools add to the overall effectiveness of the efforts
made under personal selling and advertisement.

Limitations of Sales Promotion:

If a firm uses sales promotion tools frequently, it may give the
impression that the numbers of consumers are very less or a firm is
unable to manage its sales.

2. Spoils Product Image:

Continuous use of sale promotion tools also affects the product image.
The customer may develop an impression that products sold through
sales promotion are overpriced & of poor quality etc..
Advantage Creates urgency

Sales promotions draw attention to a particular product or service being

offered. Distinguish one company from the competition through prices. Sales
Dryden explains that when sales promotions are offered for a limited time, it
creates urgency among clients because they have to act before the expiry of the
promotion. As a result, the limited supply reduces the time customers have to
think about the product. In most cases, they fail to compare alternatives and
buy the item or service offered.

Advantage Maintain trade flows

Maintaining trade flows between distributors and retailers is an advantage of

sales promotions. This refers to products that have a certain lifespan, as well as
items that do not. For business, this means that the items are regularly
replenished with items that have been recently made. Also encouraged dealers
to buy more of the items and make sure you always have an adequate supply of
sales, says Dryden. Very often, suppliers/distributors purchase items according
to how often merchandise sold. Therefore, if an article of sales are particularly
slow, dealers/suppliers are less likely to buy this item regularly, so its more
likely to run out of reserves.
Disadvantage miscommunications

As with most sales promotions, either the distributor or the business offering
the product they will not benefit as much. It is a calculated risk but needs to be
planned and managed carefully to be truly effective. Sales promotions are
advertised to inform customersof the special offer. If there is a discrepancy
between what is published and the real deal, it will be viewed negatively by the
public, says HKTDC. Retailers and distributors should ensure that any promotion
is honored to be published, or special offer will act against the company,
possibly tarnishing its reputation.

Cons price sensitivity

Sales promotions are a disadvantage when offered with great regularity. The
key to their success is their irregular supply, taking customer off guard and
unprepared. If done too often creates sensitivity to prices among
customers. Dryden price sensitivity described as the intentional expected by
customers to buy things only when promoted into a sale rather than buy at the
regular retail price. The benefits are reduced.

Value Addition: Pause & Think

Advantages and Disadvantages of Sales promotion

Tool of Advantages Disadvantages

Promotion

Coupons Stimulates demand. Has low redemption rate.

Allows for direct tracing of sales. Has high cost.

Deals Encourages trial. May reduce perception of
value.
Reduces consumer risk.

Premiums Builds goodwill. Consumers do not make

purchases for the product
Increases perception of value. but for the premium.

Should be handled
carefully.

Contests Involvement of the consumer Requires lot of creativity.

increases.
Has to be carefully
Creates excitement. monitored.

Sweepstakes Encourages present consumers to Sales often decline after.

spend more.

Samples Encourages trial. It is an expensive method.

Offers direct involvement.

Loyalty Programs Creates loyalty. It is an expensive method.

Encourages repurchase.

POP Displays Enjoys visibility. Finding a suitable location

in the store is not easy.
Brand trial takes place.

Rebates Encourages demand. Competitors can copy it

easily.
Value perception is enhanced.

Product Non-traditional method of display. Firms do not enjoy much

Placement control over display.
Product usage can be demonstrated.
At times, the product may
get overshadowed.