Professional Documents
Culture Documents
Sales Promotion
promotion (prices off, advertising and display allowances, and free goods);
and sales force promotions (trade shows and conventions, contest for sales
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A decade ago, the advertising to sales-promotion ratio was about
budget expenditure annually for the last two decades. Several factors
tools; and product managers are under pressure to increase current sales. In
frequently; many brands are seen as similar; consumers are more price-
oriented; the trade has demanded more deals from the manufacturers; and
the advertising efficiency has declined because of rising costs, media clutter,
to the advertising clutter. Manufacturers have to find ways to rise above the
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Purposes of Sales promotion
customers, and to increase the repurchase rates of the occasional users. Sales
promotion often attracts brand switchers, who are primarily looking for low
price, good value, or premiums. Sales promotions are unlikely to turn them
into loyal users. Sales promotions used in markets of high brand similarity
produce a high sales response in the short term but little permanent gain in
the market share. In markets of high dissimilarity, sales promotion can alter
manufacturers to test how high a list price they can charge, because they can
always discount it. They induce the customers to try new products instead of
never straying from current ones. They lead to more varied retail formats,
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such as every-day-low-price store and the promotional-pricing store. They
to sell more than they would sell at list price. They help the manufacturer
enjoy some satisfaction from being smart shoppers when they take
typically acts to build brand loyalty. The question of whether or not sales
Sales promotion, with its incessant prices off, coupons, deals and premiums,
may devalue the product offering in the buyers’ minds. Buyers learn that the
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time. Dominant brands offer deals frequently, because most deals only
concluded that:
sales promotion, because they cannot afford to match the market leaders’
large advertising budgets; nor can they obtain shelf-space without offering
Price competition is used by small brand seeking to enlarge its share, but it
is less effective for category leader whose growth lies in expanding the
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entire category. The upshot is that many consumer packaged goods
companies feels that they are forced to use more sales promotions than they
wish. They blame the heavy use of sales promotion for decreasing brand
select the tools, develop the program, pretest the program, implement and
building brand loyalty, and gaining entry into new retail outlets. For the
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sales force, objectives include encouraging support of a new product or
Building brand awareness is a long-term process. What a brand does today predicts
what it will do tomorrow. Sales promotions are short term and temporary. Here are
some of the tips on how to make a sale promotion an effective brand-building tool.
Make sure the promotion is justified: A new store opening, a company
anniversary, and other kinds of celebrations are all good reasons for running a
promotion
Tie the promotion to brand’s image: Birth dates and anniversaries are good
Look at every both for the sales job it can do and as a communication tool: A
promotion is one of a brand’s many voices; it can help build brand awareness
if it says the right things
The promotion planner should take into account the type of the
cost effectiveness.
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The main consumer promotion tools are summarized in the following
promotions. Sales promotions are most effective when used together with
Cash Refund Offers (rebates): Provide a price reduction after purchase rather
Price Packs (cents-off deals): Offers to consumer savings off the regular price
package sold at the reduce price (such7 as two for the price of one). A banded
normal amount;
The growing power of large retailers has increased their ability to demand
Price off (off-invoice or off list): A straight discount off the list price on each
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compensates the retailers for advertising the manufacturer’s product. A
tools as shown in the table. These tools are used to gather business leads,
impress and reward customers, and motivate the sales force to greater effort.
Sales Contests: A sales contest aims at including the sales force or dealers to
increase their sales over a stated period, with prizes (money, trips, gifts or
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Specialty Advertising: Specialty advertising consists of useful, low cost
Common items are ballpoint pens, key chains, flashlights, tote bags, and
memo pads.
To know the preference of Amul ice cream with comparison to other competitive
brands.
To collect the detailed data by filling up the questionnaire from the APO’S/A
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To collect information about the AMUL Prolife & ice cream by different APO’S
To study the preference of those factors which are considerable by the customer.
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COMPANY PROFILE
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Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative
has made India the largest producer of milk and milk products in the
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In the year 1946 the first milk union was established. This union was started
with 250 liters of milk per day. In the year 1955 AMUL was
has made India the largest producer of milk and milk products in the
quality control expert in Anand had suggested the brand name “AMUL”.
Amul products have been in use in millions of homes since 1946. Amul
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Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (The
total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things
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Gujarat Cooperative Milk Marketing Federation (GCMMF)
money.
Amul's product range includes milk powders, milk, butter, ghee, cheese,
Amul plans to launch India's first sports drink Stamina, which will be
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Amul is the largest food brand in India and world's Largest Pouched Milk
Currently Amul has 2.6 million producer members with milk collection
average of 10.16 million litres per day. Besides India, Amul has entered
countries. Its bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese markets .Other
GCMMF.
ACHIEVEMENT:
Amul : Asias largest dairy co-operative was created way back in 1946 to
make the milk producer self-reliant and conduct milk- business with
pride. Amul has always been the trend setter in bringing and adapting
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Amul created history in following areas:
d)The first and only organization in world to get ISO 9001 standard for its
farmers co-operatives.
Amul is the live example of how co-operation amongst the poor marginal
Amul in abroad:
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Amul is going places. Literally. After having established its presence in
Then, GCMMF is also looking at Sri Lanka as one of its next export
include pouch milk, ultra heat treated (UHT) milk, ice cream, butter,
access to high quality milk and milk products. Contrary to the traditional
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system, when the profit of the business was cornered by the middlemen, the
system ensured that the profit goes to the participants for their socio-
Looking back on the path traversed by Amul, the following features make it
and limitations,
Bring at the command of the rural milk producers the best of the
machines, in the rural sector for the common good and betterment of
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Even though, growing with time and on scale, it has remained with
The Union looks after policy formulation, processing and marketing of milk,
insemination service, veterinary care, better feeds and the like - all through
the village societies. Basically the union and cooperation of people brought
Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name
cream valued at more than Rs 200 crore out of a total branded ice-cream
market of 100 million litres worth Rs 600 crore. The Amul ice cream
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PLANTS
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Second plant is at MOGAR, in Rajasthan which engaged in manufacturing
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CONCLUSION
As we know that Amul is very big organization and market leader in dairy
products. It has maximum market share in Milk, Butter and Cheese, which
with a profitable industry we can’t ignore it. With the help of research,
company can find out its week points in Prolife product and can increase its
product.
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LIMITATION
respondents.
If the respondents answer does not falls between amongst the options
Some time outlets and parlours owner did not give proper knowledge
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BIBLIOGRAPHY
BOOKS:
Bibliography :
1. www.amul.com
2. www.amuldairy.com
3. www.marketresearch.com
4. www.dairy.com
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