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Sales promotion is one level or type of marketing aimed either at the consumer or at the
distribution channel . It is used to introduce new product, clear out inventories, attract traffic,
and to lift sales temporarily. It is more closely associated with the marketing of products than
"media and non media marketing pressure applied for a predetermined, limited period of time
and impulse-buying behavior. The chief tools of sales promotion are discounts ("sales"),
distribution of samples and coupons, the holding of sweepstakes and contests, special store
displays, and offering premiums and rebates. All of these techniques require some kind of
The need for promotion arises from the intensity of competition. Sellers must somehow
attract customers' attention. In the open markets of old (and farmers markets of today), sellers
did and do this by shouting, joking with customers. The three facts of consumer promotions:
these are information, economic incentive, and emotional appeal. Information may take the
form of advertising the availability of something, incentives are offeredin the form of
discounts, and emotional appeals are made by displays and, of course, by the low price itself.
Consumer Promotions
Consumer sales promotions are steered toward the ultimate product users, typically individual
shoppers in the local market but the same techniques can be used to promote products sold by
one business to another, such as computer systems, cleaning supplies, and machinery. In
contrast, trade sales promotions target resellers, wholesalers and retailers who carry the
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marketer's product. Following are some of the key techniques used in consumer-oriented
sales promotions:
Price Deals
A consumer price deal saves the buyer money when a product is purchased. The main types
of price deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price
deals are usually intended to encourage trial use of a new product or line extension, to recruit
new buyers for a mature product, or to convince existing customers to increase their
purchases, accelerate their use, or purchase multiple units. Price deals work most effectively
when price is the consumer's foremost criterion or when brand loyalty is low.
Contests/Sweepstakes
The main difference between contests and sweepstakes is that contests require entrants to
perform a task or demonstrate a skill that is judged in order to be deemed a winner, while
sweepstakes involve a random drawing or chance contest that may or may not have an entry
requirement. At one time, contests were more commonly used as sales promotions, mostly
due to legal restrictions on gambling that many marketers feared might apply to sweepstakes.
But the use of sweepstakes as a promotional tactic has grown dramatically in recent decades,
partly because of legal changes and partly because of their lower cost.
Sampling
A sign of a successful marketer is getting the product into the hands of the consumer.
Sometimes, particularly when a product is new or is not a market leader, an effective strategy
is giving a sample product to the consumer, either free or for a small fee. But in order for
sampling to change people's future purchase decisions, the product must have benefits or
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There are several means of disseminating samples to consumers. The most popular has been
through the mail, but increases in postage costs and packaging requirements have made this
method less attractive. An alternative is door-to-door distribution, particularly when the items
To increase sales by publicity through a media which are complementary to press and
poster advertising
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Stages involves in Sales Promotional Planning
The main stages which is involved in sales promotion planning are: 1. Establishment of
As in the case of advertising, effective sales promotion involves an on-going process with a
number of stages.
1. Establishment of objectives:
Sales-promotion objectives vary according to the target market. If the target is the customer,
objectives could include the encouragement of increased usage or the building of trial among
non-users or other brand users. For intermediaries, objectives could be to encourage off-
Promotional objectives form the basis for selecting the most appropriate sales-promotion
tools. The cost and effectiveness of each tool must be assessed with regard to achieving these
objectives in respect of each target market. The tools available to the service marketer are
The major decisions that need to be made when designing the sales-promotion programme
relate to the timing of the promotion and how long this tool is to be used. Also important are
the size of incentive, rules for eligibility and, of course, the overall budget for the promotion
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4. Pre-testing:
This needs to be undertaken to ensure that potentially expensive problems are discovered
before the full launch of a promotion. Testing in selected market segments can highlight
5. Implementation:
The programme for implementation must include two important time factors First, it must
indicate the ‘lead time’- the time necessary to bring the programme up to the point where the
incentive is made available to the public. Second, the ‘sell in time’ which is the period of
time from the date of release to when approximately 90-95 per cent, of incentive material has
6. Evaluation:
The performance of the promotion needs to be assessed against the objectives set. If
objectives are specific and quantifiable, measurement would seem to be easy. However,
extraneous factors could account for the apparent success of many sales-promotion activities
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Sales promotion Strategies
There are three types of sales promotion strategies: Push, Pull, or a combination of the two.
A push strategy involves convincing trade intermediary channel members to "push" the
product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to
persuade retailers or wholesalers to carry or sell a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers. Typical tactics employed in
push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising
A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications efforts
on consumers in the hope that it stimulates interest and demand for the product at the end-
user level. This strategy is often employed if distributors are reluctant to carry a product
because it gets as many consumers as possible to go to retail outlets and request the product,
thus pulling it through the channel. Consumer-promotion objectives are to entice consumers
to try a new product, lure customers away from competitors’ products, get consumers to
"load up" on a mature product, hold & reward loyal customers, and build consumer
relationships. Typical tactics employed in pull strategy are: samples, coupons, cash refunds
Car dealers often provide a good example of a combination strategy. If you pay attention to
car dealers' advertising, you will often hear them speak of cash-back offers and dealer
incentives.
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Method of Sales Promotion
Method of Sales
Promotion
Point of
Purchase
Trade Show
Free Sample
Coupon
Bonus
Contest
Demonstration
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Role Of Sales Promotion In Marketing Management
All the three parties of the marketing mechanism namely manufacturers, middlemen and the
1. It creates new customers: No manufacturer is happy with the sales turnover achieved,
because it can be excelled and improved upon. This is possible by new customers who are
brought in the orbit of sales by sales- promotion as it has the capacity to convert potential
2. Retains the existing customers :Every manufacturer has his own class of customers for
his products and services. The intelligence lies not only getting new and new customers but in
retaining the existing class of customers. Tagging the customers to the product or the firm for
is a must to bring about al-round improvement in performance. It is the competitive spirit that
makes one to excel another through different weapons. One such powerful weapon is sales-
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Middlemen and Sales-Promotion:
1. Multiplies sales: Middlemen are benefitted by the creative act of sales promotion that
creates new customers and retains the existing one. The overall effect is that their sales
turnover goes on increasing. It is for their own good and good of their manufacturer.
demonstration, exhibition, games, contests, displays, window signs, packages which go much
deep in giving beauty-mask or a face-lift for his retail outlet. This personality building work
5. Personal benefits: In addition to the increased earnings, sales- promotion makes possible
some special non-cash benefits to him and his family associated with his business success.
Thus a dealer contest enables him to have a tour to Europe or around the world or say week’s
period stay at a holiday beach resort for him and his family. These are extra-ordinary noncash
1. Supplies information: Just as producers are eager to speak of their new products and
services, consumers are equally inquisitive to know about the latest arrivals. The information
made available by sales-promotion gives not the product features but also the special
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2. Improves standard of living: Improvement in standard of living implies making available
goods and services at least cost, of better quality and in larger quantities. Sales-promotion
does this by working on distribution side which has the cycle of effects on production and
back on consumption.
3. Grants incentives: It is through the sales-promotion drives that the consumers get number
of incentives both cash and non-cash. These may be season discounts, samples, coupons,
gifts, contest-prizes. Thus, a victory in sales contest may give him the opportunity of visiting
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Strategies Implemented By Mother Dairy
Focused Approach: For the first 22 years of its existence, liquid milk was the only
Wider Spread: eg: in Ice creams, it was only a bit more than two years ago that
mother dairy entered its first market outside Delhi, UP, Punjab. Today it’s extended
it’s operation to Haryana, Jaipur, Mumbai and Kolkata as well it plan to go south to
Smart Marketing: Mother Dairy says it's trying to take its product
Product enhancement and assured quality: Identify and address quality related
problems at every stage from the producer at the village cooperative, to the dairy plant
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COMPANY PROFILE
Type private
Mother Dairy
Brands
Safal
Dhara
Dailycious
Number of 3500
employees
Website www.motherdairy.com
Mother dairy one of the largest liquid milk plant in Asia it started it operation in 1974 under
the operation flood program of the National Dairy Development Board Presently mother
dairy sale more than 25 lakh liter of milk per day out of which approximately 9 lakh liters of
milk it sold as bulk vended milk and other 16 lakh liter of milk is sold in sachets in five
different across six states including Mumbai. Over the years, Mother Dairy has contributed
significantly in achieving this objective through a series of innovations and programs. Today,
Mother Dairy manufactures markets & sells milk and milk products including cultured
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products, ice creams, paneer and ghee under the Mother Dairy brand. The Company also has
a diversified portfolio with products in edible oils, fruits & vegetables, frozen vegetables,
pulses, processed food like fruit juices, jams, etc. to meet the daily requirements of every
household.
The Company over the last many years has created a market leadership position for itself in
branded milk segment in Delhi & NCR through a robust network of its booth and retail
channels. It has also expanded its reach to other regions in North, South, East and West.
Brand Mother Dairy sources a significant part of its requirement of liquid milk from dairy
cooperatives and village level farmer centric organizations. The Company is committed to
uphold institutional structures that empower milk producers and farmers through processes
that are equitable. into the value chain to support and maintain the
safal, F&V arm of Mother Dairy was the first Company to organize the fruits and vegetables
business in India. Today Safal is the market leader in organized fruit & vegetable retail
business in Delhi NCR and operates the largest number of F&V Stores in Delhi NCR and has
significant presence in Bangalore. Safal was also the first brand in India to launch frozen
vegetable in mid 90s. Over the years, the brand has gained significant customer support and
has become a household brand with market leadership and presence across the country.
Safal also has a state of the art plant in Bangalore which produces and sells around 23000 MT
of aseptic fruit pulp & concentrate annually and supplies to noteworthy companies in food
processing space like Coca Cola, Pepsi, Unilever, Nestle etc. Safal also has a prominent
presence across 40 countries viz., USA, Europe, Russia, Middle East, Asia and Africa and
exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin, Onion, etc.), Fruit Pulp etc.
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Mother Dairy is also present into edible oils segment under the brand name Dhara which was
launched under the 'Operation Golden Flow' program of NDDB as a market intervention
It has been a constant endeavor at Mother Dairy to stay connected with its stakeholders. The
corporate tag line of the latest brand campaign - Happy Food Happy People - captures the
essence of what the Company stands for. Mother Dairy is committed to bring happiness to
every individual with its range offering pure, hygienic and adulteration-free high-quality
products which has been the strength, differentiator and heritage of the brand over years.
In our effort to instil and create happiness in all the lives we touch, we live our notion of
creating happiness for our employees through creating a workplace reality that is fulfilling
and enriching for them. We constantly listen to our employees and evolve our people
practices. As a result of this, Mother Dairy has been recognized as the 2nd Best in the FMCG
Industry and has also been ranked at 39th amongst India's Top 100 Best Companies to Work,
in a study by Great Place To Work Institute in association with the Economic Times for their
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annual 2015 survey. The corresponding ranking in 2014 was 62nd amongst the list of Top
100. In the survey, the brand also witnessed a significant move its Trust Index from 70% to
83% in 2015.
Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board, has
recently introduced three variants in the fresh milk category across market.
The variants launched include Full Cream milk, Tea Special and Cow milk. According to
Paul Thachil, CEO, dairy & foods, Mother Dairy Fruit and Vegetable Pvt. Ltd, Full Cream
milk is the thickest, creamiest and tastiest milk available to the consumers . This milk is ideal
for families with children. Tea Special is formulated to give consumers an extremely tasty
Ensure that milk producers and farmers regularly and continually receive market
prices by offering quality milk, milk products and other food products to consumers at
competitive prices. To ensure this Mother Dairy operates such that the farmer gets
Uphold institutional structures that empower milk producers and farmers through
Mother Dairy is an IS/ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization.
Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for
Government of India.
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Mother Dairy’s has a varied range of products. The different products categories are
explained below:
MILK:
Other than packaged milk, Bulk Vended Token Milk is also available which is distributed
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The high quality variant of milk is also available under the brand name ok ‘MILK’. It is thick
& completely natural, containing no preservations. It is referred with name of UHT (Ultra
Mother Dairy also manufactures flavoured milk under the brand name of ‘CHILLZ’. It is
available in three flavours namely Kesar Elaichi, Vanilla and Chocolate flavour.
Milk Products:
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Product Profile:
1. Milk and its Products Mother Dairy Packaged Milk (Full Cream,
Standardised, Toned, Double Toned
Skimmed and Pro-biotic), Butter, Dahi,
Ghee, Cheese, Ice-Creams, UHT Milk,
Lassi & Flavoured Milk.
3. Fresh and frozen fruit and Safal Fruits, Vegetables, Rice, Processed
vegetable products items (jams, juices, ketchup, pulp, etc.)
Financial Status
Mother Dairy Foods Processing Ltd, also known as Mother Dairy Fruit & Vegetable Private
Limited, Patparganj, Delhi, has a turnover of about $500 million. Mother Dairy’s turnover
has been growing at the rate of 20% (CAGR) over the last 3 years and has crossed the
Rs.2700 crores mark in the fiscal 2007-08. Mother Dairy plans to achieve a turnover of $1
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Supply Chain Management
Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairy
through insulated road/rail tankers at very low temperature in order to retain its
freshness.
Milk distribution: -79 tankers in the morning and 75 tankers in the evening bring in
milk from the regional collection centres. After collection the same tankers are
utilized for the delivery of the processed milk to the vendors and outlets. Mother
Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of
these outlets place their demand by raising an invoice one day in advance. The
demand is also calculated using the ‘Calendar’ Scheme, in this depending on the pre-
calculated seasonal demands the outlets place their orders accordingly. In order to
satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500
litres each day so that they can be mobilized to cater the demand in an area. To
coordinate its operations all the tankers are equipped with HAM radios.Distribution
Channels:
Retailers: The packaged milk is distributed via the retailer network throughout the
city.
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Processing
At mother dairy, the processing of milk is done by process automation whereby state of the
art microprocessor technology is adopted to integrate and completely automate all functions
of the milk processing areas to ensure high product quality/reliability and safety. There are
Firstly, Clarification, in which milk is spun at very high speed, removing all dust
lowering its fat and SNF(solid not fat) percentage to a desired levels, so as to deliver
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Thirdly, In Homogenizationthe milk is subjected to very high pressure due to which
the large fat globules present in milk are broken down in to tiny droplets. The Milk fat
gets evenly distributed and milk appears whiter and thicker. Milk homogenized for
consumer who do not like creamy lair on top. Homogenization increases the
profitability of milk.
Finally, Pasteurization, In this process the milk is heated at 72c for 15 seconds and
then it is rapidly cooled down to 4c. This process skill all the pathogenic bacteria
In case of packaged milk, the processing goes through only three processes (excludes
homogenization).
Quality Control
Stringent quality control methodologies are employed in Mother Dairy.
The milk is tested for adulterations and quality at the time of collection from the
farmers.
The Milk that comes from the collection points to the Mother Dairy plant is ensured
to have a temperature of not more than 7°C and is subjected to 15 product and quality
checks.
The Milk quality is checked repeatedly after each processing phase and the
Before the milk leaves the plant for the delivery/distribution outlets the milk is tested
again.
The temperature of milk in the delivery trucks is always maintained less than 7°C.
All the trucks that deliver milk have specified guidelines to bring back 100 litres of
milk after distribution. This is done in order to test the delivered milk and to ensure
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Since all the employed processing procedures are automated, no contamination by
To ensure milk freshness the collection and distribution points are always chosen such
that the travel time between them is always less than 36 hours.
Mother Dairy believes in direct contact with the customer. It organises various seminars for
children from different schools, students from various colleges and even housewives to
educate and increase awareness about milk and its products. All this is done by the Customer
Information Department wherein consumers are made aware about goodness of milk, various
Consumers can themselves see how impurities and adulterants can be easily detected in the
laboratories. The company also has a Mobile Lab that tests milk in residential colonies.
As far as the sales are concerned, in order to increase their reach, Mother Dairy sells its milk
both in bulk vended and sachet forms. Various advertisements both in print and electronic
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Management System Policy
Apply state of the art technology and processes to enhance productivity that ensures
Apply processes for clean production, pollution prevention and optimize resource
Follow food safety management system and apply HACCP (Hazard Analysis Critical
Mother Dairy pledge to provide quality and safe products under clean and hygienic
environment.
The following steps are taken and ongoing efforts are continuously made as per
•Conservation of resources
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AWARDS:
Mother Dairy has its own list of achievements as it has been given awards for various
reasons from time to time. It has got ‘Best Productivity Award’ two times for three
consecutive years starting from 1987-88 to 1989-90 and again from 1995-96 to 1997-
1998. It was also awarded ‘Energy Conservation Award’ in 2005-2006 and has also
award 2017"
"Provide quality food and beverages to consumers at affordable prices while ensuring
With determination and pride we will continue to serve our farmers, rural India and
our consumers. Our value reflect who we are and what we firmly believe in".
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OBJECTIVE OF THE SUDY
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SCOPE OF THE STUDY
This study helps to understand the sales promotion policies used by mother Dairy for
The study will help the management of mother dairy in forming the future policies regarding
sales promotion strategy. Through retailer sample survey conducted information about
current market situation. This study focuses on last two to three months.
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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Once can also define as a
scientific and systematic search for relevant information for specific topic. In fact, research is
hence, it becomes necessary to collect data are appropriate. There are several ways of
collecting the appropriate data which differ considerably in context of money costs, time and
PRIMARY DATA
By Interview:
information obtained relates to what is currently happening and is not complicated by either
SECONDARY DATA
Secondary data was collected through ,, Book late and data from websites.
Sample Space:-
The total sample space for my questionnaire part was 50.
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DATA INTERPRETATION
1.Reason Of selection
Quality 22
Brand 12
Price 11
Other 05
Other,
5
Price, 11 Quality, 22
Brand, 12
INTERPRETATION:
The above chart shows that 22 people out of 50 select Mother Dairy for quality while 12
people select Mother dairy for its Brand, 11 people for Price and 5 people select Mother
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2.Satisfaction of Sales Promotion
Yes 36
No 14
30%
70%
INTERPRETATION:
This pie chart shows that 70% of people are satisfied with the sales promotion activity
of Mother Dairy, while rest of 30% are not satisfied with sales promotion activity.
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3.Which offer is useful?
Discount 27
Coupon 17
Other 06
5%
35%
60%
INTERPRETATION:
This pie diagram shows that 60% people are like discount offers, while 35% people like
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4.Grading according to sales promotion Activity
Poor 02
Fair 08
Avrage 17
Good 23
2
8
Poor
23 Fair
Avrage
Good
17
INTERPRETATION:
This chart shows that 23 people give good grading to Mother Dairy on behalf of its sales
promotion activity, while 17 people give average grade for its sales promotion activity, 8
people give average grade and rest of 2 people give poor grade for its sales promotion
activity.
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5.Extent of Attraction by bonus Level.
Complete 17
Average 13
Never 20
17
20 Complete
Average
Never
13
INTERPRETATION:
The above chart shows that 20 people are extent of attraction by bonus level, while 17
people are give complete on extent of attraction by bonus level and rest of 13 give
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6.Exercised Price Cuts during Festive Offers
Yes 30
No 20
20
Yes
No
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INTERPRETATION:
The above chart shows that 30 people said yes on excercise price cuts during festive
offers while 20 people are said no on exercised price cuts during festive offers.
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7.Effective Medium of Advertisement
Press Advertising 07
Radio Advertising 14
Television Advertising 25
Other 04
Effective medium of
advertisment
Press advertising Radio advertising
Television advertising Other
10% 10%
30%
50%
INTERPRETATION:
In this , 50% people said that television advertising is a effective medium of advertising,
while 30% people said that radio advertising is a effective medium of advertising, 10%
people said that press advertising is effective and 10% people said that other are effective
medium of advertising.
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8.Customer Expectations Regarding the Product
More Quantity 25
More Quality 20
Other 05
More Quantity
25 More Quality
20 Other
INTERPRETATION:
The above chart shows that 25 people except more quantity in product, while 20 people
except more quality and 5 people except other things in product.
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9. Received Demonstration about product
Yes 36
No 14
14
Yes
No
36
INTERPRETATION:
The above chart shows that 36 people received demonstration about the product while
14 people said that they didn't received demonstration about product.
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10. Point of Purchase is helpful or not.
Yes 31
No 19
Point of Purchase
19
Yes
No
31
INTERPRETATION: In this chart 31 people said that point of purchase is helpful while
19 people said that it is not helpful.
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FINDINGS OF THE STUDY
The data I have collected 80 % of the customer are agreed on the sales promotion
Sales promotion strategy levels of mother Dairy are better than other competitors in
Good quality is preferred than the price nowadays, that’s what people are choosing
Many players have entered into this industry so options widens for the customers.
The availability of the milk products also affects the market for e.g. milk powder.
people said that radio advertising is a effective medium of advertising, 7 people said that
press advertising is effective and 4 people said that other are effective medium of
advertising.
20 people are extent of attraction by bonus level, while 17 people are give complete
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SUGGESTIONS
Locate the institutions using competitor’s milk and provide them attractive offers to
increase the market share so that at least the big competitors will not try to expand.
Can start schemes like cash prizes or foreign trips on scratching the barcode on the
packet.
Mother Dairy should introduce Sales Promotion schemes like free weight, contest,
Mother Dairy should provide good services so that more and more customer attract
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RECOMMENDATIONS
The time difference is more between product promotion and launching the product in
The number of schemes related to the product are more to the distributors and retailers
as compare to customer, where as more schemes given to the customer can add the
For better selling provide the new promotional strategies of the product.
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LIMITATIONS
The biggest problem what I faced while completing my project was in sufficient time
of retailer and customer. The time we needed to give the knowledge of our product to
The second problem what I noticed in that company was limited scheme i.e. company
offers very limited number of schemes and limited timing for scheme, where people
Limited Area was one of the disadvantages that I had to complete the project. The
area that I had was very small and restricted to some limits.
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