SRM UNIVERSITY

A study on Sales Promotion Techniques with special reference to ‘Poonam Badam Milk Pvt. Ltd.,

Project Submitted SRM UNIVERSITY

By

Prabavathi.GReg No 3511010503

In Partial Fulfillment of theRequirement for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS ADMINSITRATIONSRM UNIVERSITY

KATTANGULATHUR,KANCHEEPURAM DISTRICT,

CHENNAI.

BONAFIDE CERTIFICATE

This is to certify that the entitled “A STUDY ON SALES PROMOTION

TECHNIQUES WITH SPECIAL REFERENCE TO ‘POONAM BADAM

MILK PVT. LTD., submitted for the degree of Master of Business

Administration by Prabavathi.G, is the record of the research work carried out by

her, during the period Of April 2012 under my guidance and supervision and this

work has not formed the basis for the award of any Degree, diploma, Associate

ship, fellowship or any other title in this University or any other University or

Institution of higher learning.

Submitted for the viva-voce examination held on ---------------------

………………. ……………….

S.CHANDRAN Dr.JAYASHREE SURESH

(project Guide) ( Dean, MBA)

………………..

(External Examiner)

DECLARATION

I declare that the dissertation entitled “A STUDY ON SALES PROMOTION

TECHNIQUES WITH SPECIAL REFERENCE TO ‘POONAM BADAM

MILK PVT. LTD., submitted by me for the Degree of Master of Business

Administration, is the record of research work carried out by me during the period

from April 2012 under the guidance and supervision of Mrs. S..CHANDRAN ,

Asst Prof, Department of Business Administration, S.R.M School of

Management, SRM University Chennai and that this work has not formed the

basis for the award of any degree, diploma, associate ship, fellowship or any other

title in this university or any other university or Institution of higher learning.

Place:Kattankulathru Signature of the Student

Date: (G.Prabavathi)

ACKNOWLEDGEMENT

I convey my sincere gratitude to my guide Mrs. G.Chandran,

Department of Business Administration, S.R.M College, Chennai

S..CHANDRAN for his excellent guidance, support and encouragement

throughout the period of study.

I Thank to S..CHANDRAN for hisr support to carry out my studies in this

institution.

I owe my thanks to all the staff member of the Business Adminsitration

Department, S.R.M College for their constant hope and encouragement.

I Thank my family members, for their support extended throughout my study.

TABLE OF CONTENTS

CHAPTER

CONTENT

PAGE

NO

INTRODUCTION

ABOUT THE COMPANY

INDUSTRY PROFILE

ABOUT THE COMPANY

HR PRACTCES BY THE COMPANY

CONSUMER SALES PROMOTIN&

METHODS OF PROMOTIONFINDINGS

SUGGESTIONS

CONCLUSION

Introduction

IMPORT:

In a time when customers are exposed daily to a nearly infinite amount of

promotional messages, many marketers are discovering that advertising alone is

not enough to move members of a target market to take action, such as getting

them to try a new product. Instead, marketers have learned that to meet their goals

they must use additional promotional methods in conjunction with advertising.

Other marketers have found that certain characteristics of their target

market (e.g., small but geographically dispersed) or characteristics of their

product (e.g., highly complex) make advertising a less attractive option. For these

marketers better results may be obtained using other promotional approaches and

may lead to directing all their promotional spending to non-advertising

promotions.

Finally, the high cost of advertising may drive many to seek alternative,

lower cost promotional techniques to meet their promotion goals.sales promotion.

Sales promotions are used widely in many industries and especially by marketers

selling to consumers. We will see that the objectives of sales promotion are quite

different than advertising and are specifically designed to encourage customer

response.Sales promotion describes promotional methods using special short-term

techniques to persuade members of a target market to respond or undertake

certain activity. As a reward, marketers offer something of value to those

responding generally in the form of lower cost of ownership for a purchased

product (e.g., lower purchase price, money back) or the inclusion of additional

value-added material (e.g., something more for the same price).

Sales promotions are often confused with advertising. For instance, a

television advertisement mentioning a contest awarding winners with a free trip to

a Caribbean island may give the contest the appearance of advertising. While the

delivery of the marketer’s message through television media is certainly labeled

as advertising, what is contained in the message, namely the contest, is considered

a sales promotion. The factors that distinguish between the two promotional

approaches are:

1. whether the promotion involves a short-term value proposition (e.g., the

contest is only offered for a limited period of time), and

2. the customer must perform some activity in order to be eligible to receive

the value proposition (e.g., customer must enter contest). 

The inclusion of a timing constraint and an activity requirement are

hallmarks of sales promotion.

Sales promotions are used by a wide range of organizations in both the consumer

and business markets, though the frequency and spending levels are much greater

for consumer products marketers. One estimate by the Promotion Marketing

Association suggests that in the US alone spending on sales promotion exceeds

that of advertising.

Objectives of Sales Promotion

Sales promotion is a tool used to achieve most of the five major promotional

objectives discussed in the Promotion Decisions tutorial:

Building Product Awareness – Several sales promotion techniques are

highly effective in exposing customers to products for the first time and

can serve as key promotional components in the early stages of new

product introduction. Additionally, as part of the effort to build product

awareness, several sales promotion techniques possess the added

advantage of capturing customer information at the time of exposure to

the promotion. In this way sales promotion can act as an effective

customer information gathering tool (i.e., sales lead generation), which

can then be used as part of follow-up marketing efforts.

Creating Interest – Marketers find that sales promotions are very effective

in creating interest in a product. In fact, creating interest is often

considered the most important use of sales promotion. In the retail

industry an appealing sales promotions can significantly increase

customer traffic to retail outlets. Internet marketers can use similar

approaches to bolster the number of website visitors. Another important

way to create interest is to move customers to experience a product.

Several sales promotion techniques offer the opportunity for customers

to try products for free or at low cost.

Providing Information – Generally sales promotion techniques are

designed to move customers to some action and are rarely simply

informational in nature. However, some sales promotions do offer

customers access to product information. For instance, a promotion may

allow customers to try a fee-based online service for free for several

days. This free access may include receiving product information via

email.

Stimulating Demand – Next to building initial product awareness, the

most important use of sales promotion is to build demand by convincing

customers to make a purchase. Special promotions, especially those that

lower the cost of ownership to the customer (e.g., price reduction), can

be employed to stimulate sales.

Reinforcing the Brand – Once customers have made a purchase sales

promotion can be used to both encourage additional purchasing and also

as a reward for purchase loyalty (see loyalty programs below). Many

companies, including airlines and retail stores, reward good or

“preferred” customers with special promotions, such as email “special

deals” and surprise price reductions at the cash register.

Classification of Sales Promotion

Sales promotion can be classified based on the primary target audience to whom

the promotion is directed. These include:

Consumer Market Directed - Possibly the most well-known methods of

sales promotion are those intended to appeal to the final consumer.

Consumers are exposed to sales promotions nearly everyday, and as

discussed later, many buyers are conditioned to look for sales promotions

prior to making purchase decisions.

Trade Market Directed – Marketers use sales promotions to target all

customers including partners within their channel of distribution. Trade

promotions are initially used to entice channel members to carry a

marketer’s products and, once products are stocked, marketers utilize

promotions to strengthen the channel relationship.

Business-to-Business Market Directed – A small, but important, sub-set of

sales promotions are targeted to the business-to-business market. While

these promotions may not carry the glamour associated with consumer or

trade promotions, B-to-B promotions are used in many industries.

Sales Promotion Trends: Customers Expectations

Marketers who employ sales promotion as a key component in their

promotional strategy should be aware of how the climate for these types of

promotions is changing. For instance, the onslaught of sales promotion activity

over the last several decades has eroded the value of the short-term requirement to

act on sales promotions. Many customers are conditioned to expect a promotion at

the time of purchase otherwise they may withhold or even alter their purchase if a

promotion is not present. For instance, food shoppers are inundated on a weekly

basis with such a wide variety of sales promotions that their loyalty to certain

products has been replaced by their loyalty to current value items (i.e., products

with a sales promotion). For marketers the challenge is to balance the advantages

short-term promotions offer versus the potential to erode loyalty to the product.

Sales Promotion Trends: Internet Communication

For many years consumers typically became aware of sales promotions in

passive ways. That is, most customers obtained promotions not through an active

search but by being a recipient of a marketer’s promotion activity (e.g., received

coupons in the mail). The Internet is changing how customers obtain promotions.

In addition to websites that offer access to coupons, there are a large number of

community forum sites where members share details about how to obtain good

deals which often include information on how or where to find a sales promotion.

Monitoring these sites may offer marketers insight into how customers feel about

certain promotions and may even suggest ideas for future sales promotions.

Objectives of the study

Primary objective

To study the effective training and sales promotion program

conducted in Poonam Badam Milk Pvt. Ltd

Secondary objectives

To study whether training enhances the skills of the employees.

To study the H.R functions been carried out by the organisation

To determine the developmental task of the individual through

training.

To find out the satisfactory level of employees on training and

development programs being conducted at Poonam Badam

MilkPvt. Ltd

The direct interview schedule has not be followed due to

employees engagement in work.

Since the sample size is small it cannot be considered as true

representation of the whole population.

Time of financial constraints has also been a limitation for the

study.

SCOPE OF THE STUDY

The survey has been confined to the employees in different levels..

The study covers introduction to the Sales training program and various

type of Sales training programs which Poonam Badam Milk provide to

its employee

The results of this study will be useful to the organization in designing

effective Sales promotions and training programmers by considering

the employee interest.

INDUSTRY

PROFILE

INDUSTRY PROFILE:

Soft drink production

Soft drinks are made by mixing dry ingredients and/or fresh ingredients

(for example, lemons, oranges, etc.) with water. Production of soft drinks can be

done at factories or at home.

Soft drinks can be made at home by mixing either a syrup or dry

ingredients with carbonated water. Carbonated water is made using a home

carbonation system or by dropping dry ice into water. Syrups are commercially

sold by companies such as Soda-Club.

Drinks like ginger ale and root beer are often brewed using yeast to cause

carbonation.

Ingredient quality

Of most importance is that the ingredient meets the agreed specification

on all major parameters. This is not only the functional parameter (in other words,

the level of the major constituent), but the level of impurities, the microbiological

status, and physical parameters such as color, particle size, etc.[10]

Potential alcohol content

A report in October 2006 demonstrated that some soft drinks contain

measurable amounts of alcohol. In some older preparations, this resulted from

natural fermentation used to build the carbonation. In the United States, soft

drinks (as well as other beverages such as non-alcoholic beer) are allowed by law

to contain up to 0.5% alcohol by volume. Modern drinks introduce carbon dioxide

for carbonation, but there is some speculation that alcohol might result from

fermentation of sugars in an unsterile environment. A small amount of alcohol is

introduced in some soft drinks where alcohol is used in the preparation of the

flavoring extracts such as vanilla extract.

Thus we can really challenge the hygienic and the ill effects of having a soft

drinks which is on rise by glamorous advertisements given by the popular figures.

Considering the above factors a feel of insecurity captures the mind of every

individual who inclines towards keeping up the health in a natural way.

ABOUT THE

COMPANY

POONAM BADAM MILK

Poonam Badam Milk is one of the leading Manufacturer & Distributor of

Fresh Kesar Badam Milk & Fruit Drinks, Situated at Velachery in Chennai,India.

Poonam Enterprises, is a First Fresh Kesar Badam Milk Maker in

Chennai.They started basically for the considering the Health of the

Customers.The Organization purchase the natural ingredients directly from the

Formers.The farming community is an integral part and forms the backbone of the

organization. specialize in the production of Fresh Kesar Badam milk, Fruit

drinks that stand high in terms of quality. Purity and hygiene being the distinct

features of this range, their Products are manufactured as per the Industrial Norms

and Standards. Backed by an expert and qualified team of professionals, to fulfill

their customer’s expectations with superior quality products at industry leading

prices. Owing to their knowledge and experience of the industry, they have been

able to deliver our range of Poonam Products and its by Products and Spices as

per the defined quality standards.

The company works with adopting to current marketing scenario whereby

adapting the modern techniques in implementing its promotions. They also

emphasize on the various factors that have made them a preferred choice to most

of the people and their customers numbers is on rise.

COMPANY PROFILE

Poonam Badam Milk was prime supplier of health drinks.Poonam Badam

Milk carries a good trade names and enables to harness the benefits of its size

Overview

Poonam Badam Milk is one of the largest supplier of badam milk drinks in

Tamilnadu and the prominent player in Chennai having a wide range of network

through which they supply. Its main activities are providing drinks which to

everybody at a reasonable prices and with a good on not compromising on the

health issues of the customers.. The company has employees serving near to 6

lakhs customers in southern part of Tamilnadu.

Background

Poonam Badam Milk planned journey towards being recognized as a world-

class standard of refresh drinks. They are also making more effective use of our

marketing spend, particularly in advertising and sponsorship. The Poonam Badam

Milk matches the aspirations we have for our customers.”

The Poonam Badam brand today

Today the Poonam Badam Milk brand is alive and trading in many part of

Chennai and Tamilnadu as been recognized as a progressive company – one that

creates a healthy soft drinks keeping in mind the customers needs. It is this

insight – this ability to think beyond what is called a just a soft drinks sales – that

makes them who they are.

Standards of business conduct

Poonam Badam Milk is committed to ensuring that their business is

conducted in all respects according to the Govt.Health regulation, professional

and legal standards.

Customers

Poonam Badam Milk seeks to provide their customers with a product that

hallmarked by integrity, quality, and care.

Workforce

Poonam Badam Milk is guided by the aim to be the employee into a noble

profession in which they operate.

Health and safety

Poonam Badam Milk is committed to providing a working environment,

which is both safe and fit for the intended purpose and ensures that health and

safety issues are a priority for all business operations.

Suppliers

Poonam Badam Milk regard suppliers as their partners and work with them

to help achieve their policy aspirations in the delivery of products

Environment

Poonam Badam Milk is committed to a programme of management, continuous

improvement and reporting of direct and indirect impacts, which marks its

contribution to improving the product by which they live.

Poonam Badam Milk recognizes that their business activities have direct and

indirect impacts on the societies in which they operate. Poonam Badam Milk

endeavor to manage these in a responsible manner, believing that sound and

demonstrable performance is a fundamental part of business success. Poonam

Badam Milk are committed to continuous improvement in the products and

encourage their network partners to strive for quality performance.

HR PRACTISES IN POONAM BADAM MILK PVT .

LTD

JOB ANALYSIS

The job analysis or the information about the job is provided to the aspirants are

usually done through conventional methods like advertisements as well as

through thenotifications in the official website of Poonam Badam Milk Pvt.

Ltd

RECRUITMENTS

Poonam Badam Milk Pvt. Ltd adopt an unique procedure of screening,

they usually send a structured questionnaire to the applicants. The responses or

answers to the questionnaire are evaluated by the managers and on the basis of

that they downsize the candidates before the interview. and The company

usually hire the employees by this method and for jobs which does not need

expertise they select by personal contacts.

TRANING

The company provide a range of professional management training and

development services and solutions from the design of self managed learning

tools, providing a coaching service to delivering a broad range of interpersonal

skills training courses leadership, and sales and people management,. They work

with their clients to ascertain their real training needs and provide customised

training solutions that fit seamlessly with their organisation's requirements and

culture.

They provide:

Executive coaching

Executive coaching is aimed at individually nurturing starting –level and

mid-level executives to achieve their career and personal goals, thus to excel in

their life.  POONAM BADAM MILK COMPANY recognises the fact that

Executive Coaching and business mentoring today, is widely accepted as an

essential part of the process of continuous learning in the arena of competitive

business. It is an integral part of leadership development for top-rung

executives. POONAM BADAM MILK COMPANY provides  a  one-to-one 

collaboration between a certified coach and an executive, who wants to better

his/her leadership skills, access new perspectives and above all reach maximum

potential.  At the same time they, make executives into groups of 10 or less, can

provide excellence through group activities and case studies.   Training and

coaching provides continuous support and is an investment that is made in

developing your key HR  resource, high-level managers, for the long-term benefit

of the organization. POONAM BADAM MILK COMPANY’s training and

coaching engrains a unique methodology, where the framed strategic goals of the

organisation are made easier to achieve by understanding the organisational

behaviour and change required for the firm.

Main features

Profound analysis of the organisation and their managerial and leadership

objectives, planning and implementing personal and business strategy.

Identifying strengths and weakness in personal performance through self-

reflection or/and feedback and thus developing in response

Planning for next role and indentifying development needs.

Manage up and manage down

Successfully sell your ideas

Achieve results with ease

Become an inspired leader and raise your emotional intelligence (EI)

quotient

Boost your creative intelligence

Create deep and satisfying people relationships

Attract success in life, work, and business

Business Coaching

The company delivers Business Coaching  using its expert professionals in the 

particular field of business and the programme content is tailored  to address

specific needs of the client.  It is delivered by a mixture of the coach being an

expert and a facilitator, using directive management of the programme and a non-

directive style of coaching throughout.

It focuses on such  kind of individualised development programmes rather

than scheduled training programmes as, CEOs,  company directors and senior

executives do not have time to wait for a conventional coaching modules which

leads to spending days away from the office. Although more expensive than

training, business coaching is more convenient and thus entails a lower

opportunity cost for a busy company director or executive, since our business

coaches will be flexible enough to meet where and when the client wishes.

Typical issues addressed through business coaching:

Developing a compelling vision, mission and strategy

Understanding and using numbers (Key Performance Indicators)

Planning and Execution

Sales and Marketing

Recruiting Winners

Influencing and Presenting

Managing Time

Leading People

Coaching Winners

Team Development

Thinking like a winner, to be a market leader.

Sales training

POONAM BADAM MILK COMPANY’s Professional Sales

Training  teaches effective selling skills for marketing and sales professionals

helping them to significantly improve the ability to shoot up the  sales of the

organization. It’s Sales Training programs of help sharpen the selling skills of

even experienced sales representatives, enabling them to take advantage of sales

opportunities and aggressively expand the business. By providing a simulated

class room environment where they can make mistakes and learn from them,

organizations can benefit from having sales representatives who can make the

greatest impact on a daily basis.

The company’s sales training focuses on the following areas:

Determine the needs of the customers

Understanding the selling process

Talking the customer’s language

Avoiding common sales mistakes

Maximizing the sales on the feebacks of the customers.

Consumer Sales

Promotion and

Methods of

Promotion

A sales promotion is a marketing technique that is designed to

entice a customer to take a specific action such as make a purchase or

request more information. A sales promotion usually occurs for a

limited period of time to help create a sense of urgency. Examples of

sales promotion can include coupons, free trial periods and discounts,

to name a few. Sales promotions offer a number of advantages to the

owner of a small business.

By offering a reduced price on a popular item, you can lure

customers away from competitors, which may ultimately help turn

them into regular shoppers. For example, if you own a small

electronics store that's competing with a large retailer, offer a

discounted price on a popular cell phone model for a limited time. If

you serve the customers well during the purchase process, they may

be willing to come back.

Price discounts or price-off deals:

Price deals are probably the most commonly used promotional techniques

and Badam milk company is no exception to this. Since its sales have a great

impact on the climatic conditions normally to during winter seasons to boost up

the declining sales during this period it offers a discount on its price.

Price discounts are communicated through POP advertising, window

displays, sales people, advertising in newspapers, magazines and TV

ads.Such promotions work very well in gaining the attention of

consumers, particularly at the point of purchase among similar brands

and may also encourage unplanned or impulse buying.

A price deal for a customer means a reduction in the price of the

promoted product and the consumer saves money on purchase.

The below data shows the actual price of the product and the total sales

Year Actual Price

In Rupees

Discounted Price

In Rupees

Total Sales

(In bottles)

2008-2009 17 15 18468 bottles

2009-2010 17 16 19210 bottles

2011-2012 18 16 21574 bottles

Fig. 1.1

From the above figure we can conclude that the discounted price has a very

good impact towards sales and so the company continues to adopt the sales

promotion strategy in future also.

Advantages of Discounted Prices

The main advantage of this tool is that extra product may encourage

increased usage and help sustain the habit. Also among other similar

brands, a bonus pack stands out at the point of sale.

1.Profit Improvement-So far as Individual capacity is concerned, cost reduction

helped Poonam Badam Milk Company in profit improvement. The more the

profits, the more the stable the company becomes. It enhanced the value,

improves investment opportunities and facilitates the collection of capital.

2. Benefit to the Consumers-The consumers are the ultimate beneficiaries. They

are benefited by the reduced prices which may be possible by savings form cost

reduction programs. Competitive position will improve and the industry as a

whole will strive to improve the productivity and pass on the advantage of such

programs to the consumers.

3. Increase in the Staff Wages- Workers and staff of the industry may also be

benefitted through increased wages and improved staff welfare amenities. Since

4. Increase Market - The company is also benefitted by identifying their

potential areas as the sale differs in various region and thus helps the company to

implement a different plan according t he variation in the regions.. Also internal

revenue will increase through more tax savings.

 

Disadvantages

There are many important factors that affected.For example,

elasticity of demand for consumer products, as product prices, while a

substantial increase in the number of consumers to buy, the firm may

be more so then and more profit. The contrary, or if there is no

obvious change in sales volume, the company profits will be reduced.

3. Price war- Companies of similar products too offered discounts

by the period where it went to stage that the lowest bidder reaps

more sales. It ultimately make the company into a price war.

Prices may lead to other business enterprises have also followed

the price, which have lead to price wars. Price war is cruel, if

the enterprises do not have the strength of strong support, such

as financial strength, channel power, etc., soon, businesses will

be peer-to break down. But this company with strong strength

defeated the opponents finally to achieve the desired sales.

Therefore, enterprises should think twice on the price war.

4. Quality Re-check- This is evident as many of the customers re-

checked with the retailer about the quantity and the quality as of

fact there was no change but the tendency of the customers on

reduction leads to the creating a conscious of the decline in

quality.

Product price adverse selection problem exists, that

consumers may think that product quality is the price to drop down

and therefore, some consumers have in mind to "get what you pay"

concept. However, the company ensured product quality, makes the

product "inexpensive", there by consumers are more favored in their

enterprises.

Samples, Free Product and Premiums

This is one of the technique been implemented by Poonam

Badam Milk Pvt. Ltd. and just like reduction in prices it also enabled

them to capture a huge market share.

Enticing members of a target market to try a product is often

easy when trial comes at little or no cost to the customer. The use of

samples and free trials may be the oldest of all sales promotion

techniques dating back to when society advanced from a culture of

self-subsistence to a culture of trade.

Sampling and free trials gave customers the opportunity to

experience products, often in small quantities or for a short duration,

without purchasing the product This leads the customer to get

acquainted with the taste of the product and be a customer of it in

mere future.

Though these methods are used in almost all industries

especially useful for getting customers to try a product for the first

time. This has been very much successful to the Poonam Badam

Milk company

Year

Total expenditure

Total Sales

Increase in

sales in the

next year

2008

Rs-3.43 lacs 8.43 lacs 15.63%

2009

Rs-3.54 lacs 9.26 Lacs 17.21%

2010 Rs- 2.64 lacs 12.54 Lacs 34.57%

2011 Rs- 1.89 lacs 16.47 Lacs 43.51%

Fig-1.2

From the above figure we can conclude that there is a huge

improvement in sales from the year the plan been implemented and

gradually during the course of time the promotional cost been is

reduced as the out put been increasing which resulted in future profits.

From the above a we can very easily conclude that this strategy work

out positively for the company and resulting the increase of sales of

the product there by affirming that the price discounts is always is

one of the very powerful method of sales promotion irrespective of its

product a company deal with.

Internal Competition

Fostering a sense of healthy internal competition is another

method adopted by Poonam Badam Milk Company for developing a

sales team. They made availability of incentives and rewards for

performance. Most sales people involved in the competition seek out

new and creative methods to improve on their own, and attempt to

learn best practices from high-performing team members. For

example, in Velachery branch the staffs use do work for long hours

for the completion of assigned project. This been for their own benefit

as the company offered a cash bonus for the highest sellers in a given

period.

They also created a contest in which the entire sales team attempts to

hit a certain goal, with a reward of a company sponsored retreat. The

Rewards includes a trip to Ooty , Kodaikanal and other places.

The result of was so fruitful to the company that it was able to

see a high production and there by increasing the sales volume to a

considerable amount.

Those who are excelling at sales helped those who are less

effective by sharing techniques and tips, and performing role-playing

training exercises.

At the same time Poonam Badam Milk H.R was very much cautious

and concerned that they make the internal competition light-hearted

and friendly, so as not to destroy the sense of teamwork.

It was successful and helped the human resources department to

adopt a plan based on their experience.

Positive Motivation

As the sales manager of Poonam Badam Milk, they also provided

positive, e motivation. Focussing on the good points of each

salesperson’s individual style, and compliment them when they are

successful. They framed necessary criticism in such a way that it is

not derogatory or personally hurtful.

For example, if one salesperson is not aggressive enough at

making sales, they commented as ‘ you know they have a strong

sense of boundaries and professionalism that makes them hesitant to

bother busy executives, but that it is important to be aggressive with

repeat phone calls.

Thus by creating a team atmosphere in which their sales team

feels that they are supported by their supervisors, and they created a a

group of willing individuals who genuinely enjoyed their work and

want to do better at it.

Poonam Badam Milk derived the following advantages by

adopting the Sales Promotion Techniques.Luring New Customers

with Price- There customers increased to a considerable number

in quick span of time.

Gaining Community Favor

It created a good name for their business by staging the

promotion that supports a worthy cause. For example, in velachery

area they installed a free cold water stand near the bus stops during

summer seasons and also they donated .Traffic Police booth near a

prominent road junction to facilitate the traffic police there by

helping the , which is a win-win for everyone and may leads to more

business by becoming more familier and was a good brand building

process.

Encourage Repeat Purchases

Poonam Badam company used rewards programs to encourage

customer loyalty, and they executed it for the business. They

introduced a purchase card and that you hole-punch each time the

customers make a purchase. After they make 10 purchases, they can

redeem the card for a free bottle of badam milk.

Thus a sales promotion has helped to retain o potential

customers that aids them in making a decision. This is beneficial for

company to face the severe competition prevailing in the market.

Findings

The company has shown a gradual increase in its Sales

The amount of expenditure spent towards the sales promotion

is moderate & the output is at inclining state.

The Employees Morale is been kept at a healthy conditions by

being successful in their operations. Packages like Extra over

time & perks increased the employee out put.

Marginal amount been invested allotted on the budget towards

the sales promotion of the company on yearly basis and this is

been on rise.

The machinery and the plant cost has seen an maximum

utilization whereby the replacement of the machines and the

maintenance cost is on high during the period.

There is a drastic improvement in the sales when the new

schemes been introduced and by that they were able to spread

their markets in an untargeted areas.

During the period there is an increase of employees since the

production has gone high and so it demands a new recruitment

of skilled and unskilled manpower

1. Increasing Competition

Due to increase in competition, Soft drinks companies are finding it

increasingly difficult to compete on quality. They are therefore

resorting to more innovative methods of sales promotion. In order to

have a competitive advantage over its competitors like Pepsi, Coke

and other soft drinks once a year such kind of sales promotions

should be followed. 50%.

2. Customers Have Become More Price Sensitive

This increased price sensitivity is a direct result of rampant

inflation. Economic recession is likely to fuel this trend further, as

consumers and dealers become more sensitive towards prices. If the

customers get branded drinks at half the actual price, then they are

definitely going to make huge purchases of Poonam Badam drinks

because they want value for their money, as they are price sensitive.

3. Sales Promotions Generally Create An Immediate Positive

Impact On Sales

Advertising, personal selling and other methods of promotion

produce slower sales response compared to sales promotion. Sales

promotions are mostly adopted by Poonam Badam Milk company

mostly for short duration, for a specified period, leading to a sense of

urgency in consumers to buy now. This creates an immediate positive

impact on sales.

4. Products have become more standardized

In many soft drinks company, there is a proliferation of brands. Most

drinks are being perceived by consumers to be more or less similar

within a given price range because of the inability of manufacturers to

develop truly differentiated products.

Under these circumstances, advertising messages are unable to

strongly influence the consumers’ perceptions and create brand

franchise. As a result of these perceptions of similarity among brands,

marketers have no way but to compete on the basis of extra benefit

offered through sales promotion.

There are many unbranded soft drinks sold at ice cream shops and

shopping malls and places like outer Chennai which are bought at

half the price of actual branded drinks. People who are money

conscious buy such drinks ingnoring the health. Therefore, Poonam

Badam Milk Jeans comes up with such discounts, which helps them in

increasing their sales and also in stock clearance, if any.

5. Consumer Acceptance

As competition intensifies and promotions proliferate, consumers

have learnt to earn the rewards of being smart . Over a period of time,

they have also learnt that brands on promotion are not necessarily of

lower quality.

Poonam Badam Milk sold at disount rates, are not perceived to be a

brand of low quality. Instead, people even time their purchase

accordingly.

6. Advertising Has Become More Expensive And Less Effective

All the advertising media have become quite expensive. Audio-

visual medium, which is considered as the most effective for short-

duration ads, may cost in excess of Rs. 1 lakh for a 10 second

exposure during prime time. In many cases, consumers have reached a

point of boredom due to excessive advertising on TV. Some

consumers even consider advertising as an intrusion into their privacy,

leading to zapping (surfing channels). Firms with small budgets

cannot compete with big companies, which spend huge sums of

money on advertising.

For these small budget firms like Poonam Badam Milk  sales

promotion is a more cost-effective promotion method to produce sales

results.

7.Trade Has Become More Powerful

Retailers and wholesalers have become powerful and find themselves

in a position to demand extra facilities from the companies. They

Channel members demand more incentives to get the desired results.

Manufacturers do not seem to have any alternatives but to

concede to their demands, keeping in view the competitive market

conditions. In soft drinks shop decent margins have to be paid to

them in order to have shelf visibility for Poonam Badam Milk brand.

8. Emphasis On Sales Volumes

Towards achieving the long-term profit goals, Poonam Badam

Milk manufacturers try to attain high sales volume. Brand managers

and product managers find themselves under pressure to achieve

short-term sales results for the sake of their careers. Compared to any

other promotional method, sales promotion is a more effective method

to generate short-term sales volume.

9. Sales Promotions Maximise Profits

A number of economic theories conclude that a company can

maximise profits by using sales promotion. Such promotions can

permit price discrimination by allowing the brand to compete in 2 or

more different market segments. Sales promotion may allow a

premium brand to compete with a lower tier brand among price

sensitive consumers. For example, a premium brand of soft drinks

may be on promotion in some price sensitive markets, while in the

remaining markets it is sold at its normal price.

10. Introducing An Element Of Interest:

There are a number of promotions, which are often called interest

promotions. Some of the more popular interest promotion techniques

are samples, contests, and sweepstakes, free premiums and mail-in

premiums. These promotions create an element of interest and

excitement, and consumers enjoy these and response enthusiastically

to such contests and sweepstakes, etc.

11. Impulse Buying Is Increasing

The number of marginal customers is increasing. Displays at

the point of purchases lead to impulse buying by consumers, more so

if the items on display are not expensive.

Poonam Badam Milk company adopted a popular saying in Tamil,

“Ungal Nalanai manadhil kondu thayaritha baanam.” Which the

manufacturer is much focused on the health of the customers

consuming their drinks.

This had a very good impact in the long term in gaining a brand

image.

13. Excess Stocks

Because of increasing number of brands, it is difficult for Poonam

Badam Milk Company to anticipate future sales. This, at times, leads

to excessive inventories, and the quickest way to clear that is to go

for sales promotion.

SUGGESTIONS

Sales promotion activity such as trip to places had incurred a

major expenses though the sales been increased. But cost per

bottle has gone high during the period as the expenses is so

high during the period for the employees. So a proper cost

control system should be adopted to avoid such a situation..

The maintenance cost has gone doubtle the level and so the

other cost. Therefore though there the sales figure been inclined

in the very next season it has touched the below normal level

which shows it was a short term profit mechanism. So a

pragmaticc approach is the need by the time.

Due to over allocation of work and high out put from the

employees which also resulted in huge employee turnover. This

also leads to situation where the toughest one been retained which

is not a healthy sign in the long run for the organization. So there

should be a benchmarks been set up and proper standards on an

employee out put should be taken and a realistic measurement of

performance should be implemented rather than focusing only on

the quanity based.

Companies of the sectors should be revised in order to make the

allocations much more effective.

More departmental allocation of work should be focused .hence

the focus only towards the numbers should be reduced.

The allocations made in different departments should be

revised every year to make the allocation of fund to be a

reasonable one to carry on the functions without affecting the

company budget allocation.

CONCLUSION

Sales promotional progamme is an important progamme in

developing an organization. Every organization conducts training

programs for the development of the personnel in the organization.

The employees in “POONAM BADAM MILK” are happy with

their overall training programs, which were conducted in the

organization. The company implements promotion techniques

programs based on the latest scientific techniques. And also such

promotions are required for organizations to boost up the sales.

The people who are provided training facilities & execute such

promotional techniques should give an opportunity to the employees

also to clear their doubts at the time training programs and also

implement it in their work processes.

The Sales promotion programs are conducted on yearly basis

because they are transferred from one job to another so as to improve

their skills in different areas.

“POONAM BADAM MILK” being a Pvt. sector organization, it

can be called as a model employer, not only in accomplishing its

objectives in other fields, but also in the matter of equipping

themselves in all manners by conducting various promotional

programs to enhance their Sales & human resources skills.

A STUDY ON “Sales Promotion Techniques” at Poonam Badam Milk Company LTD, Chennai.

A STUDY ON “Sales Promotion Techniques” at Poonam Badam Milk Company LTD, Chennai.

PERSONAL INFORMATION

1. Name(optional) --------------------

2. Age:

a) Below 25 b) 26-30 c) 31-35 d) 36-40 e) Above

40

3. Gender:

a) Male b) Female

Consumer Experience :

a) Below 2 years b) 3-5 years c) 6-8 years

d) 9-12 years e) Above 12 years

4. Educational qualification

a) HSC b) Diploma c) Graduate d) Master degree

e) Others

QUESTIONNAIRE ( On Consumers)

1. How long since you have used this Product?

a)0-6 months b) 6-12 months c) 1 year and above .

2.In Case of fresh consumer

Is there any reason you switch over to this product?

a)Good taste b) just like that c) No comments

2. What is the satisfaction level about the product?

a)Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

e) Highly dissatisfied

3.What do you feel about the discount given to you?

a) It’s good b) Satisfied c) I consume more d) No

comments

5. Do you know that you can express your views in the

company?

a) Yes b) No

6.If yes, have you done it before ?

a) Yes b) No c) No idea

7.If so is the response was satisfactory?

a) Highly satisfied b) Satisfied c) Neutral d)

Dissatisfied e) Highly dissatisfied

QUESTIONNAIRE ( On Employees)

8.What type of relations are you having with your superior,

peers and subordinates?

a) Very Good b) Good c) Average d) Bad e) Very

Bad

9.What is your view on the practice & policies of the

management?

a) Strongly agree b) Agree c) Neutral d) Disagree

e) Strongly disagree

10.What type of training is provided by management?

a) Induction or Orientation Training b) Job Training c)

Internship Training d) Training For Promotion

e) Refresher Training or Retaining

11.Are you satisfied with the promotional policy?

a)Highly satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly Dissatisfied

12.What types of monetary benefits provide by the

management to employees?

a) Increment b) Increment with promotion c)

Bonus d) Gifts

e) Travelling Allowances

20.Whether you are satisfied with the financial support from

the organization?

a) Strongly agree b) Agree c) Neutral d) Disagree e)

Strongly disagree

21.What are the kinds of non monetary benefits provided by

Any other specify ------

22. Any suggestion for Product Improvement-----------------