STUDY OF PROMOTION MIX STRATEGIES OF SELECTED INDIAN

MULTINATIONAL COMPANIES IN FMCG SECTOR

*KARAN VEER SINGH
**PROF. (Dr.) SHAILENDRA KUMAR CHATURVEDI
ABSTRACT:FMCG Industry Economy FMCG industry provides a wide range of
consumables and hence the amount of coinage circulated against FMCG merchandises is also
very high. The race among FMCG producers is also growing and as outcome of this, investment
in FMCG business is also increasing, specifically in India, where FMCG industry is viewed as
the fourth biggest sector with total market size of around US$ 53 billion. There are three main
divisions in the sector – food and beverages which accounts for 19 per cent of the sector,
healthcare which accounts for 31 per cent and household and personal care which accounts for
the remaining 50 per cent. Growth Visions 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 corporations. Improved 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
intake for almost all the products in the country, FMCG companies have huge possibilities for
growth. And if the corporations are able to change the mindset of the users, i.e. if they are able to
take the consumers to branded products and offer new generation products, they would be able to
generate higher growth in the near future. For every sector marketing or promotion is a life line
because without a healthy advertising the product and services cannot reach to the customers in
such a way which a company wants and also the company will not able to achieve the target of
sales as well as profit maximization therefore, the promotion and its means are very essential for
a company. In this paper we focuses upon promotion strategies used by some selected Indian
multinationals works in FMCG sector.

KEYWORDS: FMCG, Multinational, Promotion, Consumers, Companies, Products, etc.

*Mr. Karan Veer Singh, M.B.A., (UGC) NET

Researcher, Dr. APJ Abdul Kalam Technical University, Lucknow, U.P. INDIA
Email: karanveersingh011@gmail.com, Mob no: (+91) 9026447923

**Prof. (Dr.) Shailendra Kumar Chaturvedi, M.B.A.,Ph.D.,

Director, Jhunjhunwala Business School, Faizabad, U.P. INDIA
Email: drshailendrachaturvedi@gmail.com, Mob no: (+91) 8005441753

OBJECTIVES OF STUDY:

The research aims at identifying salient features of the Promotion Mix Strategies adopted by
selected FMCG companies i.e. Dabur, Patanjali, Emami, Marico and Godrej consumer products
and in respect of their promotion Mix. The following are some of the specific objectives of the
study.

1. To assess the promotion mix strategy used in consumer market.

2. To study the promotion strategies of selected Indian FMCG multinational companies.
3. To know the impact of promotional expenses on sales and company’s profit.
4. To evolve other possible suggestions regarding promotion for FMCG companies.
INTRODUCTION: The FMCG sector has grown from US$ 31.6 billion in 2011 to US$
52.75 billion in 2017-18. The sector is further expected to grow at a Compound Annual Growth
Rate (CAGR) of 27.86 per cent to reach US$ 103.7 billion by 2020. The sector is projected to
grow 11-12 per cent in 2019.It witnessed growth of 16.5 per cent in value terms between June–
September 2018; supported by moderate inflation, increase in private consumption and rural
income. It is forecasted to grow at 12-13 per cent between September– December 2018.FMCG’s
urban segment is expected to have a steady revenue growth at 8 per cent in FY19 and the rural
segment is forecasted to contribute 15-16 per cent of total income in FY19. Post GST and
demonetization, modern trade share grew to 10 per cent of the overall FMCG revenue, as of
August 2018.

Accounting for a revenue share of around 45 per cent, rural segment is a large contributor to the
overall revenue generated by the FMCG sector in India. Demand for quality goods and services
have been going up in rural areas of India, on the back of improved distribution channels of
manufacturing and FMCG companies. Urban segment accounted for a revenue share of 55 per
cent in the overall revenues recorded by FMCG sector in India.
FMCG Companies are looking to invest in energy efficient plants to benefit the society and
lower costs in the long term. Patanjali will spend US$ 743.72 million in various food parks in
Maharashtra, Madhya Pradesh, Assam, Andhra Pradesh and Uttar Pradesh. Dabur is planning to
invest Rs 250-300 crore (US$ 38.79-46.55 million) in FY19 for capacity expansion and is also
looking for acquisitions in the domestic market. Investment intentions, related to FMCG sector,
arising from paper pulp, sugar, fermentation, food processing, vegetable oils and vanaspathi,
soaps, cosmetics and toiletries industries, worth Rs 165.52 billion (US$ 2.36 billion) were
implemented between January–September 2018.
Growing awareness, easier access, and changing lifestyles are the key growth drivers for the
consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and
employment under the Union Budget 2018-19 is expected to directly impact the FMCG sector.
These initiatives are expected to increase the disposable income in the hands of the common
people, especially in the rural area, which will be beneficial for the sector.

SIGNIFICANCE OF THE STUDY:

Though, the wide range of food and beverage, Healthcare, and Household & Personal Care
Products being marketed by the companies, consumers belonging to different segments are not
effectively delivered with the right products in right price. The study, so far conducted on
promotion mix strategies are not adequately focusing on bridging the gap between marketer and
the prospects. Therefore, current study is designed to address those issues, which are very
essential in designing customer oriented marketing mix strategy. This study helps in informing
and generates assistance in developing effective product mix in household, wellness and personal
products. Since, promotion mix decision is critical decision, it involves huge investment, efforts,
and right information saves companies from the disaster.

DATA ANALYSIS TECHNIQUES:

Statistical tools like tests, cluster analysis etc., and other methods of presentation like diagrams,
charts, and graphs have been used to draw a precise conclusion.
Sources of Data
a) Primary Data
Convenient Sample survey through questionnaire has been administered to the target respondents
(i.e. 160) viz. various Retailers/Wholesalers from Lucknow city for comparative study of
promotional mix strategies of selected companies.

b) Secondary Data
Gathered information from the association of FMCG Industries consumer protection
organizations, FICCI, IBEF and industry archives. Other required information has been collected
from published journals, books, and concerned research reports, annual reports from company
website, seminar papers, business magazines, and internet.

LIMITATIONS OF THE STUDY:

The study is mainly based on survey method of research. Therefore, the limitations of survey
method are expected to influence the outcome of the research. Promotion mix is an area of
competitive advantage; Dealers and people contacted were either not well know the related
information or hesitant to reveal the information on promotion mix strategies they follow. So the
information collected by company website is assumed to be factual and its validity is not
questioned.

PROMOTION STRATEGIES OF PATANJALI AYURVEDA:

Promotions in the marketing mix of Patanjali Ayurveda Patanjali Ayurveda is with the slogan
"PrakritikaAshirwad". Now Patanjali Ayurveda has earned a reputation and popularity among
the people thanks to Baba Ramdev, a globally recognized yoga expert. The ambassador of
Patanjali is exclusively responsible for the success of the brand. Because his contribution to
people's lives was unbelievable because of yoga, people felt biased when he founded his own
Indian FMCG company. It is a fact that ads influence consumers. Baba Ramdev broke both
comments because he advertised and at the same time did not advertise. In 2002, the Aastha
television channel began broadcasting Baba Ramdev's yoga classes. At night, Baba Ramdev
impressed hundreds of followers who turned into thousands of people. Millions of people across
the country use Ayurvedic medicines, which receive religious instruction and are prescribed by
their programs. His yoga session was broadcast live in 170 countries.

UNIQUE SELLING PROPOSITION (USP) "Society without disease - a free world of

medicines" was built and embraced the dream of BABA RAMDEV. Extensive research into the
ancient results of Pranayama yoga in recent years has shown that good breathing techniques can
completely decode all diseases without medication or surgery. He claims to have trained 35,000
people who can prepare yoga classes in different parts of the country. Patanjali Yoga Ashram has
535 branches and 15 centers expand. This means that we are involved in creating new USPs
where customer requirements can be realized without frustration. This is a unique sales offer
from Patanjali Ayurveda.
The key to Patanjali's success
1. Low price:Patanjali products offer attractive discounts on competitive products. The company
improves profits by delivering products directly from farmers and reducing intermediaries. They
can therefore reduce the purchase costs of raw materials and produce products at much lower
prices.

2. Strong distribution channels:Patanjali products are sold through three types of medical
centers. This actually includes the PatanjaliChikitsalayas clinic. The following is the health and
wellness center of PatanjaliArogya Kendra. They also have a non-medical channel, Swadeshi
Kendra's.

3. Baba Ramdev because of health and strong brand association:Patanjali is able to create
brand awareness for the health and well-being of the Indian public, mainly through the
association Baba Ramdev. As a result, Patanjali products attract more people and buy products
more often.

4. It looks natural in a simple package:Patanjali sells products in a very simple package. Now
many people will feel that this is not a good strategy. But the truth is that we work for Patanjali.
With the help of products such as Patanjali, promoting 'Ayurveda' and 'Health', simple packaging
can be a very effective way to advertise. With its natural appearance (especially leaves and
herbs), consumers feel health and well-being and feel attracted to buy products.

5. Media Promotion: Baba Ramdev is considered an expert in yoga around the world. He has
worked closely with media and media and maintained good relations. He is also known for good
relationships with many politicians. So he used both facts to inform the company about the costs
for free.

6. Word of mouth: Advertising and promotions generally account for 12-20% of consumer
spending on consumer goods. When a new company enters the company, these expenditures will
increase significantly. At the launch, Patanjali followed a unique word-of-mouth model, with no
ads on total revenue. Promoting word-of-mouth advertising was a great success for our company
because of the loyalty of our customers

PROMOTION EXPENSES OF PATANJALI AND ITS EFFECT ON REVENUE

PatanjaliAyurvedLtd’s FY17 “The annual revenue generated by the plaintiff from the sale of its
products under the mark Patanjali in the financial year 2016-17 was Rs 9,030 crore
approximately and the expenditure on advertising and promotion incurred by the plaintiff was Rs
570.The Baba Ramdev-led enterprise’s revenues fell 10% to Rs 8,135 crore in the last fiscal
from Rs 9,030 crore in 2016-17, while the promotion expenses was made rupees 480 crore
according to financials sourced from research platform Tofler. According to provisional data
sourced by CARE Ratings, Patanjali’s net profit more than halved at Rs 529 crore in FY18 from
Rs 1,190 crore a year earlier, That is in sharp contrast to the firm’s stand-out performance in the
previous years since 2013 when its annual sales had been doubling every year till FY17.
Dabur has created the huge brand image and a vast product following by associating mega-
names like Amitabh Bachchan, Rani Mukhurjee, VivekOberoi, MandiraBedi etc. Dabur invested
Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the company
has been successful in this mission as the people now know the brand and ask for its products by
name.

SALES PROMOTIONAL TOOLS OF DABUR INDIA LTD.:

Price promotions, Coupons, Gift with purchase, Competitions and prizes, Money refunds, Point-
of-sale displays, Free samples, Contest /demos, Festival Sales, Retailer coupons, Multi-packs,
Special price for twos, Allowances for additional shelf space, Merchandising, Sales contest,
Incentives, Awards & prizes, Premium gifts, Sales Meetings, Samples/product sampling,
Contests & Sweepstakes, Exchange Offers/buyback, Refund / Rebate, Price / Bonus Packs

PROMOTIONAL SCHEMES USED FOR STOCKIESTS

Encourage stockiest to participate in displays and sales contests.
Higher Margins: Tries to give higher margins to stockiest so that they don’t loose interest in the
product and can earn good profits after meeting all the expenses.
Sales Contests: Sales contest are held annually and whichever stockiest has the best sales record
a prize is given to him, like free holiday to the family etc.
Allowances: Special allowances are given to both stockiest and stockiest sales man if they
achieve their monthly target.
Subsidy for Promotion Budget: Company gives subsidy to the stockiest, which spend some
money on the promotional schemes, like conducting a sampling activity.
Danglers and Posters: Company gives posters and danglers to stockiest which are further
pasted and distributed by stockiest sales man.
Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by
the company for stockiest sales man so that they don’t face any problem while placing their
products and taking orders from retailers.
Annual Gathering: All the stockiest meet under one roof at least once a year and then the
stockiest whose performance was best in term of sales is awarded.
Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once
a year.
Gathering While Launch of New Products: All the stockiest and their sales man gather when
there is a launch of a new product. Company gives free samples & gifts to stockiest and their
sales man.
Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
Free danglers and posters for publicity.
Buyback: Dabur foods have a scheme of replacement of products which gets expired.

PROMOTIONAL SCHEMES USED FOR RETAILERS

Trade allowances: Short term incentives are offered to induce a retailer to stock up more dabur
products.
Dealer loader: An incentive given to induce a retailer to purchase and display the products of
dabur.
Trade contest: A contest to reward retailers those sells the most product of dabur foods and after
a specific period they are rewarded.
Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like
danglers, posters, banners etc. helps in promoting sales.
Push money: Also known as "spiffs". An extra commission paid to retail employees to push
products. This kind of practice dabur hardly follows.
Free samples: Dabur foods gives free samples are given to retailers so that they can try that
product if the product is new, or gives some discounts.
Demos: Special demos are given to retailers and even some stands, fridge are given by retailers.
Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash
discounts if payment is made in cash.
Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer buys
and sells a specific amount of products.
Higher Margins: Retailer has the highest margins and dabur foods also have the same criteria,
and retailer can further sell the dabur product to consumer at discount keeping his margin safe.
Allowances for additional shelf space: Company as such does not pay anything to retailer but
gives some additional benefits for giving them shelf space which is visible to customer whenever
they enter the shop.
Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising
dabur products. Whenever the Stockiest sales man goes to take orders then he also merchandises
dabur products.
Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with that.
Trade Allowance: Dabur comes with different types of trade discounts from time to time, like
sometime price discounts, sometimes gifts etc.
Free goods: Dabur gives free goods on the purchase of specific number of goods.
Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash at
the time of purchase.
Product sampling: Dabur organizes sampling activities for its products which are new, these
activities are generally at the place where footfall is very high.
Displays: Dabur tries to give special displays to the retailers, so that they can display their
products on that.
Point-of-Purchase Material: POP material is available in the form of stickers, banners,
displays, posters, signs, streamers, etc. put up inside and outside the stores & other possible
purchase locations.

PROMOTIONAL SCHEMES USED FOR CONSUMERS

Price deal: A temporary reduction in the price is given to consumer during some festival session
by dabur foods.
Price-pack deal: The packaging offers a consumer a certain percentage more of the product for
the same price (for example, 25 percent extra).
Coupons: Dabur foods gives coupons during different sampling activities to consumers and it
have become a standard mechanism for sales promotions.
Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
On-shelf coupons: Coupons are present at the shelf where the product is available.
Rebates: Consumers are offered money back, rebate at different point of time.
Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling
activities then they are given a discount coupon of products of dabur foods.
Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur keeps
a special check on the displays and merchandising of dabur products.
Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
Money Refunds: Customer can claim for refund of money if they face some problem with the
product
Contest /demos: There are different contests where customers play games and win contests.
Festival Sales: Dabur foods come out with some special offers during festival seasons like buy
one get one free.
Multi-packs: Dabur foods has some products in multiple packaging which are comparatively
priced lower to the products sold in a single pack.
Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier
for customers to know about product line and choose the best out of that.
Customer feedback: dabur foods consider its customer most important and in case of any
complaint by customer the foods department will leave all its important work and will contact
the customer.
Contact points: Customer can contact dabur foods by writing the mail or letter on the addresses
given at the back of dabur products, or even they can call and visit the dabur web site.

Year 2018 2017 2016 2015 2014

Selling
Expenses (in
Cr) 461.95 418.03 475.78 646.54 434.80
Net profit (in
Cr) 1086.59 998.33 939.51 786.54 672.82
Source: economictimes.indiatimes.com/ Dabur India Ltd.

PROMOTION STRATEGIES OF GODREJ CONSUMER PRODUCT

LIMITED:
Godrej is a multi-dimensional company that deals in various sectors as diverse as agricultural
products, security systems, furniture, appliances, consumer products, real estate and industrial
engineering. Under its appliances category it deals with items like microwave oven ranges,
washing machines, refrigerators, air conditioners etc.
Animal feeds and agrochemicals come under its kitty of agricultural products. It also deals in GP
batteries, rechargeable batteries, torches and chargers along with software solutions for IT
industry. The company has carved out a special name for itself because of its security systems
and safes. In the year 1897, it introduced the first lock in India that was built with the
lever technology and later in 1920, became the introducer of the first safe in India.
The company also has the distinction of introducing for the first time soap made from vegetable
oils and the first Indian typewriter. They also provide furniture that includes storage products,
modular furniture and mattress for residence, offices, labs, educational institutions, shipyard and
even hospitals.
Its consumer products include repellent, Goodnight refills, coils, mats, Cintholsoaps, deo, talc,
hair color, hair dye, hair oil, baby care products, shaving creams and food items like chocolate
syrup, chocolates, food oil etc. The real estate business deals in townships, residential areas and
commercial enterprises. Their construction business includes ready-mix concrete and various
construction services. In tooling, they deal with press tools and casting dies.
Godrej spends a huge sum of money when it comes to advertisement and promotional expenses.
Such promotional activities help Godrej to be connected with customers and help build up a
good relationship with them. Primary promotional activities include Television advertisement,
newspaper, magazines, billboard, hoardings and distribution of Pham plates in strategic
locations. Over the years, Godrej has roped onto famous personalities and Bollywood stars to
play the role of their brand ambassador. Godrej is involved in various Corporate Social
Responsibility projects, which gives them build trust among consumer and government
enterprises. Activities include Go-Green projects which help revive the dwindling Mangrove
cover. They are also involved in educational activities. They are also manufacturing innovative
products like smokeless mosquito repellent cards and huge investments in green buildings.
Hence, this summarizes the marketing mix of Godrej Industries.
Godrej has gone for an all-out promotional strategy that is well planned and is executed at the
highest level in order to communicate with the consumers. Advertising is a very efficient tool in
the Indian market and Godrej has roped in some of the most famous celebrities to become its
brand ambassadors. Film stars like Aamir Khan, HrithikRoshan, PreityZinta and captain of
Indian cricket team Mahendra Singh Dhoni are some of its well-known faces. Advertisements
are shown in the print media like the magazines, newspapers and billboards. The most important
medium for the advertisements is the television and internet. The catchy tunes, smart one-liners
and celebrities are a winsome collection in the Indian market for promoting
a product successfully.

Year 2018 2017 2016 2015 2014

Selling
Expenses (in Cr
Rs.) 613.07 528.22 493.60 407.30 383.77
Net profit (in
Cr Rs.) 999.87 847.72 739.72 654.85 564.84
Source: economictimes.indiatimes.com/godrej-consumer-products-ltd.

PROMOTION STRATEGIES OF EMAMI LTD.:

Emami is one of the largest FMCG brands based out of India. Emami has been innovating and
launching new brands and products to meet consumers need ever since it started. The products
available are spread and utilized across various income and age groups considering young to old
and everyone in between. Creating the best in class and affordable brands in health and personal
care products is the key objective of the company. Emami has a total portfolio of over 300
diverse products in its marketing mix with 120+ products getting sold every second across the
world.
Emami is one of the highest spenders on advertising and promotions in its category. India is a
market of over a billion people and a majority of this market is rural, at the bottom of the
pyramid. It is price sensitive and emotional. This segment responds to the pull of a visible
celebrity. They pioneered the concept of endorsements and in-film advertising with the objective
to create aspirational aura and recall. The promotions were directed at arresting the attention. The
brand ambassadors were signed on the basis of the brand need and the fit between the particular
brand and the star. Till date, Emami has been endorsed by more than 60 celebrities like Amitabh
Bachchan, Shah Rukh Khan, Rekha, KanganaRanaut, JuhiChawala, SouravGanguly, Sunny Deol
etc. It promotes using healthy mix of print, television and digital medium. Advertisements are
shown on television channels like Star Plus, Zee Cinema, Sony TV, Colors and many more along
with sports channel for maximum coverage. Also, several ATL and BTL activities are conducted
to promote the brand. Emami was also involved in sponsorship activities with beauty pageants
like Kolkata Fashion Week held in 2009. The company also provides various offers and
discounts to promote and create customer loyalty. Also, these offers provide huge sales and high
volumes of revenue. Hence this concludes the marketing mix of Emami.
Positioning is used as a communication tool to reach target customers in a crowded market place.
They claimed that the easiest way to occupy a consumers mind is to be the first and much more
difficult to remember who is second Emami, once small-time manufacturer of ayurvedic
medicines and cosmetics, is doing just the same. it is making a habit out of entering small, niche
segments, developing them into lucrative business propositions and subsequently, spending big
on advertising and marketing to retain a substantial share of the market in the face of growing
competition Let’s talk about some emami brands that created niche categories which turned out
to be:
Fairness cream gambleIn 2005, Emami entered another uncharted territory. "In 2005, we
launched a fairness cream for men because market studies showed that 30 percent of males were
covertly buying fairness creams for women. We launched in 2005 and the competition in the
form of Lever, Garnier and L'oreal joined the fray from 2006. The market is growing faster than
the female creams but that's perhaps because of the low base," says Goenka Fair and handsome is
aRs 200 crore brand now. Emami has 60 percent market share followed by Lever (30 percent)
and Garnier (20 percent), according to market estimates. The category got a huge boost when
celebrities were roped in to showcase the product, from SRK for Emami, John Abraham for
Garnier and ArjunRampal for Nivea. There's a lot of potential for growth because recent data
shows that 22 percent males still use female fairness creams, says Goenka. The brand touched Rs
100 crore in the first 3-4 years. "The entire male grooming sector has opened up and the celebrity
endorsements have a lot to do it. We have spent Rs. 45 crore on Fair and Handsome last fiscal
for ads and celebrity appearances. It's a new category, so investments are required to build the
brand," adds Goenka. The brand created a segment in Rs 1,400 crore fairness cream market.
Navratna Oil It is Emami’s largest brand that is positioned as a ‘therapeutic cooling oil’, the
company has followed a similar paradigm of developing a niche segment . Launched in the early
nineties, the brand continues to enjoy around 48 per cent market share of the Rs 550 crore ‘cool
oil’ category. The Navratna Oil is aRs 600 crore brand and in three years, Emami expects it to
become a Rs. 1,000 crore one. In fact, the variant, Navratna Cool Talc that it launched five years
ago, is already aRs 100 crore plus sub-brand, 'and extensions are one way of growing it,' says
Agarwal. Navratna Cool Talc recorded an 80 percent growth in FY13.
Navratna Cool Talc has a market share of 18 percent in the Rs 430 crore cool talc sub-segment
of talcum powder. "There is potential in launching variants but we won't launch too many
because we don't want to dilute the equity of the mother brands," he adds. In FY13, flagship
EmamiLtd's turnover was Rs 1,700 crore, and down the years the group, with a combined
turnover of Rs 6,000 crore, has grown primarily by being present in segments which have little
competition to begin with. Boroplus Antiseptic Cream: Flagship brand of Emami, Boroplus, now
marketed as ‘India’s No. 1 antiseptic cream’, accounts for about 74 per cent of the Rs 269
croreboro creams segment in the country.
Year 2018 2017 2016 2015 2014
Selling
Expenses (in Cr
Rs.) 576.38 531.19 483.48 580.69 447.94
Net profit (in
Cr Rs.) 309.52 346.37 332.15 471.63 398.23
Source: economictimes.indiatimes.com/Emami Ltd.
PROMOTION STRATEGIES OF MARICO LTD.:
One out of every ten coconuts grown in India is used by Marico – the statement in itself surmises
the strength of Marico Limited. Marico is an Indian FMCG company. It was setup in 1991 in
Mumbai by Harsh Mariwala. Marico deals in production of personal care goods, oils and male
grooming products too. Marico is known as a pioneer in most o0f the product categories it
operates in. Marico’s leading brands also retain leadership and highest market share I their
respective product domains, like 17% growth added in Hair Oils segment in last financial year.
Marico follows the following core values in all its business operations: Boundarylessness,
opportunity seeking, innovation, transparency & openness, consumer centric, bias for action,
excellence and global outlook.

Marico is known for its promotions, the fact has it has won plethora of medals and awards for its
varied promotion campaigns is proof enough. Marico uses all types of media like TV, online,
billboards, print media etc in its marketing mix. Some of the ongoing campaigns of Marico are:
• Nihar- DikhoKhoobsurat, KaroKhoobsurat
• Nihar- #I am capable
• Saffola life- #protectherheart
• Saffola Masala Oats- Chef’s Choice campaign
• Parachute Advansed - #KhulKeKheloHoli
• X Men for Boss, Vietnam
• Hercules Smart School Campaign in South Africa
It advertises through Television, Print, Outdoor, Digital. The brand has been endorsed by
celebrities like DeepikaPadukone, DiyaMirza, Yuvraj. Advertising is heavy before Holi& during
winters. Popular & effective campaigns like ‘1 hour champikiya’ it help remind people about the
benefits of oiling before hairwash.Marico is also known to rope in a lot of other celebrities for its
endorsements like VidyaBalan for Nihar, Ranveer Singh for Set Wet and DeepikaPadukonefor
Parachute are some examples.
Year 2018 2017 2016 2015 2014
Selling
Expenses (in Cr
Rs.) 437.44 467.47 511.49 480.52 409.71
Net profit (in
Cr Rs.) 718.23 842.70 701.86 545.17 577.22
Source: economictimes.indiatimes.com/ Marico Ltd.

ANALYSIS OF DATA:
For the research purpose we have collected data from 160 small and big retailers,for the same we
have taken 10 most important questions out of 16 from our questionnaire to achieve our target.
Whose results are analyzed below:
 Q1. Which Company’s products are most sellable at your store from following?
50

40

30

20

10

0
(a) Dabur India Ltd. (b) Patanjali (c) Marico Ltd. (d) Emami Ltd. (e) Godrej
Ayurveda consumers Ltd

Q2. Which type of product customers buy more frequently?

60

40

20

0
(a) Personal Care (b) Health Care (c) House hold (d) Medicare

80
Q3. On the basis of Q2 Catagorise the products company wise
70
60 a) Personal Care
50 b) Household
40
c) Health care
30
20 d) Medicare
10
0
Dabur Patanjali Marico Emami Godrej

Q4. Which Company provides you better Margin?

100
80
60
40
20
0
(a) Dabur India Ltd. (b) Patanjali (c) Marico Ltd. (d) Emami Ltd. (e) Godrej
Ayurveda consumers Ltd
 Q5. From which company you get more frequent offers and discounts?
100

80

60

40

20

0
(a) Dabur India Ltd. (b) Patanjali (c) Marico Ltd. (d) Emami Ltd. (e) Godrej
Ayurveda consumers Ltd

Q6. Which company has a good distribution channel?

50
40
30
20
10
0
(a) Dabur India Ltd. (b) Patanjali (c) Marico Ltd. (d) Emami Ltd. (e) Godrej
Ayurveda consumers Ltd

Q9. Do the selected companies supplying FMCG products to you give sales
promotion benefits to you?
80
60
40
20
0
(a) Yes (b) No (c) Cannot say

Q10. If yes in Q. No. 9, then which sales promotions methods do they use? Rank

30
25 Dabur
20 Patanjali
15 Marico
10
Emami
5
0 Godrej
(a) Pop display (b) Dealer (c) Discount (d) Trade (e) Dealer gifts (f)
sales contest allowances Cooperative
advertisement
 Q12. Did you get opportunity in the past to participate in dealers’ sales contest
or had knowledge of it conducted by the selected FMCG company?
150

100

50

0
(a) Yes (b) No (c) Cannot say

Q15. Does your supplier company give dealer gift on occasions to improve
dealer relationship?
60

40

20

0
(a) Always (b) Often (c) Sometimes (d) Rarely (e) Never

SUGGESTIONS:
Based on the findings of the study and the observations of the researcher, the following
suggestions are made for optimizing the effectiveness of sales promotion.

Suggestions to Brand Managers/Marketers

 The level of awareness about various sales promotion tools is very low except in the case
of Price-Off and Premium schemes. It is suggested that sales promotion schemes should
be sufficiently backed and supported by print and electronic media advertising.
 Consumers prefer to get value added offers in the form of additional quantity of the same
product they buy as incentives. Bonus pack schemes can be used more effectively than
free gifts and compliments.
 Coupon distribution system should be streamlined, as consumers mostly prefer to get
them through newspapers and magazines.
 Marketers should stop mindless promotion of FMCGs and use promotion schemes more
sensibly and rationally. The promotion clutter has created a situation where none of the
scheme is very attractive.
 Marketers may use Price-off or discount strategy to achieve the short term objectives of
promotion like brand switching, trial purchase, and stockpiling ahead of other schemes.
 The long-term effectiveness of sales promotion is very limited. Sales promotion does not
lead to repeat buying or create brand loyalty in a satisfactory manner. It may be used as a
short-term measure to reduce inventory or ward off competition.
 Consumers of FMCGs in Kerala give utmost importance to the quality of the product.
Price and offers are factors of lesser importance to them. Marketers should remember that
 inferior quality products cannot be sold with the help of unimaginative sales promotion
schemes.
 Sales promotion is more effective in the case of non-food categories like detergent,
toothpaste, etc. These items can be more frequently promoted.
 Manufacturers or marketers who are up in the channel of distribution should ensure that
there are no chances of misuse of promotional schemes by other members. Schemes like
Coupons, Contests and sweepstakes and Sampling give rise to malpractices by retailers.
 Point-of-purchase displays and feature advertisements attract larger number of women
than men. As the women shoppers are on the increase counter and window displays and
feature advertisements may be increasingly used.
 Sample of a new product may be distributed along with another product of the same
marketer or through the retail counter to make it more effective.
 It is observed from the results of the study that consumers who would purchase larger
than their normal quantities of FMCGs and stockpile for future consumption do so in
order to reduce shopping cost and convenience and not to accelerate consumption. Hence
sales promotions should not be undertaken with the object of increasing consumption
quantity and incidence.

Suggestions to Consumers
 Most of the promotion schemes are sponsored by manufacturers. Retailers, knowingly or
unknowingly, may not whole-heatedly support their efforts. Consumers must ensure that
offers are passed on to them by the retailer or other intermediaries.

 Consumers may consider the real benefits they get and the cost they pay while deciding
to avail a promotion offer since price promotions involve more out lay than they normally
spend.

Suggestion to Retailers
 From the retailer's point of view cross-brand switching effect of promotion does not
contribute any additional revenue when he deals with so many brands of the same
product. Therefore he should see that sales promotion schemes implemented by the
manufacturers are able to increase store traffic and create primary demand for the
product.

CONCLUSION:It was really a very great experience to study such big FMCG Companies
Dabur India Limited, Patanjali Ayurveda Limited, Emami Limited, Marico Limited and Godrej
Consumer Products Limied. After going into all its aspects i.e. its marketing strategies, policies,
Promotion Mix strategies firstly for Dabur we can conclude that the company is excellent on all
the fronts. Through its comprehensive range of products it touches the lives of all consumers, in
all age groups, across all social boundaries. While Patanjali Ayurveda was a problem for many
marketers in the field of personal marketing Patanjali Ayurveda rattled the entire FMCG sector
and caused an uprising in the industry in an era of pure enchantment. And this legacy has helped
them develop a bond of trust with our consumers. That guarantees us the best in all products
carrying the Dabur name. Dabur has Strong distribution network. Dabur is the Fourth largest
FMCG Company of India. Dabur is one of the most trusted brand. What is remarkable is that
many people buy because of the pleasure value associated with the product. That is why patanjali
attracts reliable brand customers, not price-sensitive customers. For Marico the potential areas a
company could target to achieve better results, increase its sales and ultimately profit are known
as opportunities. The company should Instead of looking at established markets, most of
Marico’s expansion attempts have been into emerging markets like Egypt, Vietnam, Bangladesh
etc. These are markets where there is a likelihood of steep growth in all categories of fast moving
consumer goods. For Emami Demographic trends like increasing population and purchasing
power favor the consumer healthcare market, thus opportunities for growth. Related
diversification into growing categories with growth in modern retail, it should look into
opportunities of how to cater to this channel. For Godrej Consumer Products Limited has
transformed itself from a domestic company to a multi-national company having a presence in
over 60 countries. GCPL has been expanding in emerging nations by acquiring some of the local
brands to set up in those countries;this helps the company to improve market penetration in such
countries. Also the Indian rural market is rapidly growing as technology-driven distribution
enables the companies to maintain the demandand supply and hence the increasing rural demand
is capitalized. With improving penetration of FMCG products in the rural market, GCPL can
improve its bottom line.

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