Project Report On Sales Promotion 3b2h6s
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A Study on Sales Promotion
CHAPTER – 1 INTRODUCTION “Marketing is a social and managerial process by which individuals and groups obtain what they need and want, through creating, offering and exchanging products of value with others”. -
Philip Kotler.
Marketing includes all those activities having to do with effecting changes in the ownership and possession of goods and services. It is that part of economics which deals with the creation of time, place and possession utilities and that phase of business activity through which human wants are satisfied, by the exchange of goods and services for some valuable consideration. -
American Marketing Association.
Marketing is the process of discovering and translating consumer wants into product and service specifications and then in turn helping to make it possible for more and more of consumers to enjoy more and more of these products and services.
Marketing consists of analyzing marketing opportunities, researching and selecting target markets, deg marketing strategies, planning marketing programs and organizing, implementing and controlling marketing effort.
Page 1
A Study on Sales Promotion Companies have to identify long and short term marketing opportunities and research the selected market by measuring and forecasting attractiveness of the given market. Having selected the market, the companies need to develop a differentiating and positioning strategy for the target market. The marketing strategy must be transformed into marketing programs by deciding on marketing expenditures and the marketing mix. The final step is organizing the marketing resources and implementing and controlling the marketing plan.
Marketing Mix Marketing mix is the set of marketing tools that a firm uses to pursue its marketing objectives in the target market. McCarthy has popularized a four factor classification of marketing tools known as the 4P’s of the marketing mix. They are: •
Product
•
Price
•
Place
•
Promotion
Product: Product stands for the firm’s tangible offer to the market, including the product quality, design, features, branding and packing. It deals with new product development, product life cycle, product mix, product lines, branding and associated services to a product. From the customer’s point of view, it helps in satisfying the customer’s needs and wants.
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A Study on Sales Promotion Price: Price is the monetary value of the product. Price deals with selecting the pricing objectives, setting the price, discounts, allowances, payment policies and credit . It is very important to the customers as it decides the cost the customer has to pay to gain the product value.
Place: This marketing tool stands for the various activities the company undertakes to make the product accessible and available to the customer. It involves market size, channel selection and management, storage and physical distribution with the ultimate purpose of efficiently supplying the company’s offer to the target market. To the customer, this marketing tool refers to convenience.
Promotion: Promotion stands for various activities the company undertakes to communicate and promote its products to the target market. It involves communication programs i.e. direct marketing, advertising, sales promotions, public relations and motivation of sales force. To the customer this tool provides knowledge and information.
Page 3
A Study on Sales Promotion The Promotion Mix of a company includes the following tools;
Advertising: It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Direct Marketing: It refers to the use of mail, telephone and other non-personal tools to communicate with or solicit a response from specific customers and prospects.
Personal Selling: Face to face interaction with one or more prospective purchasers for the purpose of making a sale refers to personal selling.
Public Relations and Publicity: It refers to the variety of programs designed to promote and or protect a company’s image or its individual products.
Sales Promotions: The short-term incentive to encourage trial or purchase of a product or service refers to sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an incentive to buy. Since sales promotion directly push up the sales, increasing number of companies are undertaking sales promotion activities.
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A Study on Sales Promotion
Sales Promotion Sales promotion refers to the short-term incentives to encourage sales of a product or service. It consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and greater purchase of products or services by consumers.
Purpose of Sales Promotion Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional s. Sales promotion usually targets brand switchers because non-s and s of other brands do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other products. Sales promotions also let manufacturers adjust to short term changes in supply and demand and differences in customer segments. They also let manufacturers to experiment by varying prices. Sales promotions also lead to greater consumer awareness of prices. To use sales promotion, a company must set objectives, select the right tools, develop the best program and implement it and evaluate the results.
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A Study on Sales Promotion Objectives of Sales Promotion The specific objectives set for sales promotions will vary with the type of the target market. For consumer promotions, objectives include encouraging purchasing of larger sized units, building trial among non-s and attracting switchers away from the competitor’s brands. For trade promotions, objectives may include; including retailers to carry new items and higher level of inventory, encouraging off-seasonal buying, of-setting competitive promotions, building brand loyalty of retailers and gaining entry into new retail outlets. The sales force promotions help in encouraging of a new product or model, encouraging more prospecting and stimulating off-seasonal sales. But most importantly, sales promotion should be focused on consumer relationship building.
Sales Promotion Tools Many tools can be used to accomplish sales promotion objectives. Descriptions of the main promotional tools are as follows;
Consumer Promotion Tools The main consumer promotion tools are as follows;
• Samples: They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the product without cost or at a lower cost in the hope that they will buy the product. Samples may be free or discounted. Page 6
A Study on Sales Promotion • Coupons: Coupons are certificates that give buyers a saving when they purchase a specified product. Coupons can be mailed, placed in ments or included with other products.
•
Rebates: Rebate is also known as cash refund offers. Rebates are offers to refund part of the purchase price of a product to its customers who send a proof of purchase to the manufacturer. These are like coupons except that the price reduction occurs after the purchase and not at the point of sale.
• Price Packs: Cents-off deals or price packs offer consumers savings by way of reducing prices that are marked by the producer directly on the package.
• s: These are the goods offered either free or at a low cost as an incentive to buy a product. s may be in-pack or on-pack (outside the pack).
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A Study on Sales Promotion • Prizes: They are offers of chance to win something such as cash, trips or goods – by luck or through extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering promotions.
• Tie-in Promotions: Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or contests to increase their pulling powers.
• Cross Promotions: Cross promotions involve using one brand to non-competing brand.
•
Advertising Specialties: These are useful articles imprinted with an r’s name, given as gifts to consumers.
•
Patronage Rewards: They are cash or other awards for the regular use of company’s products or services. They are values (in cash otherwise) that are proportional to one’s patronage of a certain vendor or a group of vendors. They aim at building brand loyalty.
• PoP Promotions: Point of purchase (PoP) includes displays and demonstrations that take place at the point of purchase or sale. Page 8
A Study on Sales Promotion Trade Promotion Tools More money is spent by companies on trade promotion (58%) than on consumer promotions (42%). The major trade promotion tools are as follows;
• Discounts: It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on a particular quantity purchased during a stated time.
• Allowances: They are the amount offered in return for an agreement by the retailer to feature the manufacturer’s products in some way; displays, advertising or otherwise.
• Free Goods: Free goods are the extra merchandise offered to middlemen who buy a specific amount of a product. Companies also offer push money and specialty advertising items to the middlemen.
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A Study on Sales Promotion Business Promotion Tools Companies spend huge amount on promotions focused on industrial consumers. The major business promotion tools are as follows;
•
Trade Shows and Conventions.
•
Sales Contests.
Clearly, sales promotions play an important role in the total promotion mix. To use it well, the marketer must define the sales promotion objectives, select the best tools, design the sales promotion program, pretest and implement the program and evaluate its results.
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A Study on Sales Promotion
INDUSTRY PROFILE A Look into the Indian Economy and Furniture Industry India is the fourth largest economy in the world and it’s the largest democracy with second largest GDP among emerging economies. World Bank’s President James D. Wolfensohn confirmed that India is not the world’s 4th largest economy after USA, China and Japan in PPP (Purchasing Power Parity). It is also one of the ten fastest growing economies in the world.
With 1 billion populations, India remains on the fastest growing economies and even in the present worldwide economic slowdown, has maintained GDP Growth rate of nearly 6%.
India today is 7th most attractive destination for foreign direct investments, after US, China, Brazil, Mexico and . Besides, India offers higher rate of returns and profitability than anywhere else in the world.
Out of 1 billion population the upper and middle class constitutes 20% or 200 million people (or 30 to 40 million houses). By rent per capita:
•
2 percent of Indian has a per capita income in excess of 14,500 Euros, which means 20 million people.
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A Study on Sales Promotion •
8 percent of Indians have a per capita income of more than 3,900 Euros, which means 80 million people.
•
10 percent of Indians have a per capita income in excess of 3,200 Euros, this is about 100 million people
Overall Economic Scenario 1. The Indian market has been enormous with a large base.
2. Levels of affluence are high- with the number of individuals in the “high: income demographic group doubling each year, according to NCAER statistics.
3. The actual “disposable” income at the disposal of the affluent Indian is as high as three to five times higher as the official statistics, on of the very large proportion of uned (“black”) money income.
4. The market has, due to exposure to overseas products and lifestyles, displayed the willingness and ability to purchase overseas brands and products at high prices.
5. Customs duties and tariffs have been drastically reduced, in keeping with government policy to open up the economy – a policy which has stayed constant despite changes
in government. All the products in the INDEX Page 12
A Study on Sales Promotion product range are now permitted for import into India under OGL or the Open General License, which implies that no special import license is required for import.
6. Despite the cut in duties, the rate of customs duties is fairly substantial which makes the prices of products higher in India. There is a huge demand for furniture, hardware and fittings, DIY equipment, lighting and consumer non-durable and appliances.
7. While the Indian middle class still does not have as high a rate of obsolescence as the US, and tend to use their furniture for several years before changing or upgrading, the actual size of this segment makes investment in this market more than worthwhile. The affluent classes however, do have high rate of obsolescence of interior decoration products and redecorate constantly.
8. All the above factors put together make manufacturers and retailers of a wide range of consumer durables. Several overseas companies have already entered the market and have been extremely well received by the market.
Indian Furniture Industry Page 13
A Study on Sales Promotion
The furniture sector in India only makes a marginal contribution to the formation of GDP, representing just a small percent (about 0.5%), which indicates a huge potential for growth. It is estimated that the furniture industry comprises 25% of the construction industry and hardware comprises 40% of total furniture industry, out of this 20% is replacement and 20% is new.
Wood and wooden products, furniture and fixtures carry a weight of 27.01% in the total manufacturing sector.
The furniture industry employs a total of around 30,000 workers. The future on the furniture sector in India seems positive. Talking about production, several agreements have been signed between local producers looking for technology and European and Asian companies trying to reach a potential opportunity in costs.
From the commercial point of view, India shows good perspective to sell furniture in the following years. First of all, because its size and secondly due to the newly acquired taste as a result of exposure to western furniture style.
India is one of the largest consumers of wood in South East Asia. Until a few years ago the county had considerable quantities of available tropical woods. The most common species in Indian forests are teak, rosewood, ebony, laurel, pine, cedar and rubber trees. Supply of these “ready to uses”
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A Study on Sales Promotion species became scarcer due to unconditional and inappropriate exploitation and also due to growing concern about the environment.
In India, natural rubber plantations covers 520,000 hectares with another 6,000 hectares replanted almost every year since 1994. Kerala state (South India) produces 95% of the total supply of rubber wood in India.
India imports wood (logs) especially from Malaysia, Indonesia, Myanmar, Ivory Cost, Cameroon, Nigeria, Ghana, South Africa and New Zealand and to some extend from South America.
Most soft and hard woods are imported from Russia, Scandinavia and other South East Asian counties. MDF is imported from Europe, and there is also a small local production. Veneered are becoming more popular in India and are imported from the European Union and the USA.
The total size of Indian furniture industry is estimated at Rs. 350 thousand million but almost 85% of this is unorganized. The remaining 15% is organized and is believed to be growing at a steady pace of 12% to 15% per annum.
The share of the wooden furniture market is estimated at Rs. 600 million. Woodworking industry of India is one of the fastest growing in the county’s economy. Much of this growth has been fuelled by the increasing access to modern machinery and technology through easier import policies as a result of India’s entry into the WTO in the year 1990s. There is a noticeable shift in Page 15
A Study on Sales Promotion the preference towards mechanized mass production and the up gradation of technology.
The Emerging Trend Though technology has made inroads in the industry with increasing stress on the use of machines, overall scenario reveals that almost 80% of the products supplied in local markets by indigenous manufacturers are labor intensive and handmade. Residential or household furniture s for over 60% of the overall domestic and leading manufacturers have begun to realize the necessity of proper distribution system in this area.
Among other sectors where the demand is spiraling upwards is office furniture. Growth of IT an IT- enabled sector such as BPO’s has created a huge demand in metros and Class II cities all over India. The old economy businesses are also undergoing a makeover and this is reflected through changing looks of the offices.
Metal and plastic furniture production is gaining wider prominence but wood still remains to be the most favored medium.
CHAPTER - 2 Page 16
A Study on Sales Promotion
REASEARCH DESIGN Title of the Study The title of the study is – “A STUDY ON SALES PROMOTION OF HOME FURNISHINGS AT Ferror Dek Pvt. Ltd”.
Statement of the Problem The project is mainly undertaken to study the sales promotional strategies at Ferror Dek Pvt. Ltd. The intention of the study is to find what attributes needs
further
improvement
in
order
to
make
the
product
more
preferable in the market.
The main aim of the study is to uncover new relationship and identify any problem that may arise in future. Hence, exploratory research is been conducted. Exploratory research as its name implies endeavors of exploring the possibility of doing research on a subject where due to lack of existing knowledge framing and testing the hypotheses is difficult. In today’s crowed marketplace where products and services are touting themselves to be the best, it is vital to stand out in the crowd. The study was undertaken to explore how a company or brand can ensure a store that stands out and not get lost in the crowd.
Objectives of the Study Page 17
A Study on Sales Promotion
1. To study the various promotional strategy adopted by Ferror Dek Pvt. Ltd.
2. To find out the footage of Ferror Dek Pvt. Ltd. With respect to other players in the market.
3. To observe and understand the practice followed by Ferror Dek Pvt. Ltd.
4. To find out the communication linkages and de-linkages in the organization.
5. To study the activities of each and every department of the organization.
Scope of the Study This project was undertaken for a specific period in Ferror Dek Pvt. Ltd., New BEL Road, RMV II Stage; Bangalore. It is an exercise that is well planned into the curriculum giving the researcher a valuable opportunity to understand the working dynamics of the organization and to experiment and exhibit the recently acquired management and istration skills.
The prospect of the furniture sector in India seems positive. The Indian furniture industry has awakened to interesting times! The last ten years have seen changes in the shop windows of furniture retailers. Consumers today no Page 18
A Study on Sales Promotion longer look for mere practicality in furniture, instead, they look for theme furnishing, i.e. lifestyle living. Realizing the tremendous market potential and to make the most of it, the study was undertaken.
Limitations of the Study Every study is bound by limitations and as such this is no exceptions.
1. “Change is Constant” rule of nature. Hence, the study undertaken may not hold good for longer duration.
2. The study was conducted under the assumption that the information given by the respondents is authentic.
3.
The analysis and suggestion are given only with respect to marketing aspects as technical suggestion with respect to the product could not be given.
4. Confidential matters were not disclosed by the company.
5. There were time constraints.
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A Study on Sales Promotion Methodology of the Study A variety of methods of study have been adopted by the researcher to fulfill the objectives of the study.
In order to have a better grasp of the study, the researcher chose to become a keen observer, studying the various aspects of the organization.
To have a broader perspective of the study, the researcher attended the Lifestyle Exhibition at Palace Grounds wherein the products of Ferror Dek Pvt. Ltd. were displayed.
In order to fund out the market realities, the researcher visited the showrooms of certain companies having almost similar product profile as that of Ferror Dek Pvt. Ltd. To name a few Quezel, Veneto Cosines, Trident Inter Wood, etc.
With a view to understand the crunch of the matter and to find out the ground realities, the researcher formed a schedule specifically for the set of respondents. The researcher met the respondents personally,
interviewed
them
and
made
them
to
fill
the
questionnaire.
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A Study on Sales Promotion The researcher has done the research in the following manner; a) Type of the research undertaken is analytical. b) Technique used is random sampling. c) Sample size taken is 30. d) Sources of data used include both primary as well as secondary data. e) Tool used for the research is questionnaire. f) Plan of analysis are tables and graphs.
Data Collection Methods
In this study, the foremost data collection instrument used is the questionnaire method. The questionnaire has been designed with both open ended and closed ended questions. Apart from this, the research instrument consists of primary and secondary data collected for the study.
Primary Data: Here first hand information is obtained by distributing printed questionnaire to the marketing executives of the company. Data was also obtained from the observation and interview technique adopted by the researcher. Moreover, information was disseminated by the departmental heads.
Secondary Data: Here the information is obtained from the brochure of Ferror Dek, books, websites, newsletter, journals, magazines, newspapers, etc.
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A Study on Sales Promotion SOURCES OF DATA
Primary Data
Secondary Data
Questionnaire
Newsletter
Observation
Journals
Interviews
Magazines
Visits to other
Newspapers
Companies Information
Books
Through Departmental heads
Websites
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A Study on Sales Promotion
CHAPTER – 3 COMPANY PROFILE
Ferror Dek Pvt. Ltd. promoted by Mr. Binny Kuriakose is one of India’s leading manufacturers and distributor of modular kitchen and modular work station. It also undertakes value added services such as executing turnkey projects as a part of office furnishing.
It has set international standards in of quality of work and execution of projects.
It was a modest beginning for Ferror Dek with a few orders for home furnishing. Very soon as the scope of the business grew; it started expanding into diverse activities. It is only a year old but the company has shown excellent growth since inception and is growing at a rapid pace.
It has a decade of expertise in building turnkey solutions for contemporary offices and homes. The understanding of modern demands allows optimizing spaces to derive maximum utility value for every furniture solution. The solutions are available in a wide variety of boards such as Pre-lam particle board, MDF board with post form finish, MDF with veneer finish and MDF with PVC foil membrane, 2mm PVC edge banded shutter etc. The whole range of solutions are tailor-made to suit the consumers needs blended with affordability and aesthetics. It is located at Bangalore, India’s melting pot of Page 23
A Study on Sales Promotion international cultures. They are at a strategic advantage to offer clients furniture that reflects the emerging global denizen.
It is equipped with a modern production house and employs world class machinery from and Italy to carve artistic niche for customers. It uses high quality raw material for all solutions and these are available in a wide variety of options.
Today’s market is clustered with options to furnish homes and workplace. But at Ferror Dek, what makes it to truly stand apart is the quality of the products and services. It is driven by the urge to provide quality that is distinctive as the customers are. Every single product that is rolled out of the manufacturing unit is ensured to be flawless and absolutely defect-free. The adherence to rigorous quality standards is maintained at every level because quality is continuous and consistent process…. Ferror Dek ensures its customers that the customers will find unique expressions of their creative niche.
THE CREATIVE NICHE: •
Understanding of modern client mindset allows optimizing spaces to derive maximum utility value for every interior solution, be it office or home.
•
Application of highly specialized design techniques sets its design apart from competing companies. Page 24
A Study on Sales Promotion
•
A combination of proficient project management control, unyielding quality guarantee and prompt operation and service .
•
It builds up a technical drawing, which has detailed records for every project, thus assuring complete transparency in all business dealings.
•
Ferror Dek undertakes and completes every project with the same precision and approach irrespective of the size of the project. Raw material is checked and sorted based on the target approach to stringent quality checks at every level.
MANUFACTURING FACILITIES: The specialized home solution offers complete units for every room. The array of products includes:
Modular Kitchens
a) Eco friendly laminated in different colors. Shutters come in membrane, medium density fiber (MDF) and pre-laminated particle board.
b) Different kinds of pull out baskets, to name a few D-tray, Swivel tray, magic corner. Page 25
A Study on Sales Promotion Wardrobes Wall units Crockery units Living room furniture Designer doors Shoe racks Loft coverings Dressing units Kids units.
Managing space at work: The modular solutions of the office strive to create a comfortable workplace, allow easy maneuverability of work area and infuse a high degree of visual appeal. The range of solutions includes:
• Modular Workstations: Eco friendly laminated modular office systems include desk, storage cabinet, pedestal, partitions and key board. The working desk system – is available in variety of shapes and sizes.
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A Study on Sales Promotion Partition system with fully integrated cable management partitions (two levels of cable raceways).
Partition thickness will be available in 75mm thickness.
Partition is made up of Mild Steel (MS) with required powder coated color.
Various heights and lengths of partitions are available.
Multiple choice of fabric, laminate, metal perforated sheets, accessories , glass, etc.
•
Filling storage units
•
Pedestals
•
Keyboard and U trolleys
•
Discussion tables
•
Conference tables
•
Training tables
•
Other office furniture.
Managing Turnkey Projects:
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A Study on Sales Promotion Though home and office furnishing is the niche area, value added services are provided to give customer solution and thus turnkey projects are undertaken. Turnkey projects include: •
Architectural services
•
Civil construction
•
Project co-ordination
•
False-ceiling
•
Networking
•
Electrical work.
Some of its Clients are: 1. Rockewell Studio, Bangalore 2. Credence Audio Systems, Bangalore 3. Honeywell Ltd., Bangalore 4. Cepha Imagining Pvt. Ltd., Bangalore 5. Black and White Studio, Bangalore 6. Siddharth Engineering Pvt. Ltd., Bangalore 7. Kurl-on-Ltd., Bangalore 8. Manjushree College of Nursing, Bangalore 9. Atlas Copco-Bangalore 10. Rahul Cargo Pvt. Ltd. – Bangalore 11. Daedalus Consulting Pvt. Ltd. – Bangalore.
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A Study on Sales Promotion
ORGANIZATION CHART MD
Head s And istration
2 Executives And an Office boy
Head Marketing (Home Furnishings)
Head Deg
8 Marketing Executives
8 Designers
Supervisor (Quality Control)
2 Persons
Supervisor (Production)
26 Persons (Machine operators And helpers)
Head Marketing (Office Furnishings)
Head Production
2 Marketing Executives
Supervisor (Product Analysis)
2 Persons
Supervisor (Dispatch)
1 Person
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A Study on Sales Promotion
Employee Strength – A total of 61 personnel including executives and shop floor workers are working for the company.
DEPARTMENTS The researcher encomed the study of four departments namely s and istration, Deg, Production and Marketing. The basis for departmentalization was functional.
S AND ISTRATION DEPARTMENT This department is headed by Mr. Yesudas. Two executives assist him.
This department is broadly concerned with the acquisition and use of funds by the company. It also analyze, plan and control the company’s financial affairs. Moreover, the in house istration of the company is also taken care of. It includes maintenance of showroom and a look into the requirements and problems of day to day istration. It also keeps a track of things with regard to civil construction, architectural services, networking, project co-ordination, electrical work, etc. It is also concerned with bank facility availed by the employees. Apart from all these, it also takes into the installation part at the customer site after the dispatch of the product. In a nutshell this department deals with the trouble shooting of any problem.
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A Study on Sales Promotion DEG DEPARTMENT This department is headed by Mr. Albert. Eight creative designers assist him. The team of designer tailor makes the products according to the needs of the customers. Two aspects namely affordability and aesthetics are focused upon. Major activities undertaken in this department are as follows:
•
Setting the normal design – According to the initial measurement told by the customer, a normal design is set. Once the normal design is finalized by the customer, a designer accompanied by marketing personnel visits the construction site and takes the final measurement. Then according to it a design is set and the price quotations are made.
•
Setting the production design – When the deal is finalized and after receiving 50% of the amount from the customer, the designers make the production design. This design clearly demarcates the technicalities so that it becomes easier for the production personnel to understand.
•
Innovative designs – The team of designers also trigger out the brain cells to create innovative designs.
PRODUCTION DEPARTMENT Page 31
A Study on Sales Promotion This department is headed by Mr. Prashanth. Four supervisors are in charge of four different activities such as quality control, product analyzing, production and dispatch.
PRODUCTION HEAD
Supervisor (Quality Control)
2 Persons
Supervisor (Product Analysis)
2 Persons
Supervisor (Production)
26 Persons (Machine Operators And helpers)
Supervisor (Dispatch)
1 Person
• Quality Control: This sub department is mainly concerned with the inspection of raw materials. The raw materials are supplied mainly by four companies namely Novapan, Spacewood, Bhutan Board and Nepal Board and Nuwood. For bulk orders, direct purchase is made from the local companies such as Marino Ply, Greenlam, Virlam and Kalachandra.
The raw materials obtained are with respected with regard to requirements and specifications.
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A Study on Sales Promotion • Product Analyzing: This sub-department is mainly concerned with targeting and scheduling. After receiving the production design, it targets as to when the work needs to be completed and schedules the whole process. Again, after completion of production process and before dispatch, the product is thoroughly inspected here.
• Production: 26 persons comprising of machine operators and helpers are involved in this sub-department. It consists of five operations namely cutting, molding, edge bending, boring and hot press and post formed.
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A Study on Sales Promotion
I. Operation : Cutting Machine Used 1. BEAMSAW
No. of Person Involved 5 persons : 2 operators 3 helpers
2. SAW
II. Operation : Molding Machine Used 1. SPINDLE MOULDER
No. of Person Involved 4 persons : 1 operator 1 gauge setting 2 for loading and unloading
III. Operation : Edge bending Machine Used 1. THROUGH EDGE BENDING
No. of Person Involved 3 persons : 1 operator 2 helpers
IV. Operation : Boring Machine Used 1. BORING
No. of Person Involved 3 operators
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A Study on Sales Promotion V. Operation : Molding Machine Used 1. HOT PRESS
No. of Person Involved 3 operators
2. POST FORMED
3 operators
٭Important Note : Within 4 hours after cutting the , it needs to be covered.
• Dispatch: After the product is analyzed, it is ready for dispatch. Usually, at least once carpenter goes to the customer site for installation.
MARKETING DEPARTMENT This department deals with the springboard of all activities. This department is split into two divisions – one dealing with home furnishings and the other dealing with office furnishings.
Home Furnishings: This department is headed by Mr. Eugene Joseph. Eight marketing executives assist him. Let us discuss the 4P’s of marketing mix with regard to the company.
1. Product: Page 35
A Study on Sales Promotion Modular kitchens, wardrobes, wall units, crockery units, living room furniture, designer doors, shoe racks, loft coverings, dressing units, kids units.
What is Modular Kitchens? The accent today is on ergonomics – a kitchen that’s a comfort to use and be in. Modular kitchens are planned around the workflow triangle of refrigerator – cooker-sink: minimizing distances between these makes cooking a more economical and energy saving process. For a dream kitchen, one must be able to pinpoint needs, aspirations, likes and dislikes. Then the manufacturers step in and do the rest. Color preferences, textures and materials work at the psychological level to affect one’s perception of a space. Modular kitchen also have accessories like napkin holders and storage shelves mounted on racks that can be run along the length of the kitchen wall.
Why use Modular Kitchen? I. They look good and optimize space. II. Are fully re-locatable. III. Are made of durable material. IV. Selection of different materials for different uses is a difficult decision to make which easily solved by modular kitchen.
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A Study on Sales Promotion V. A modular kitchen takes care of things like exhaust hoods/ chimneys which are otherwise ignored. Replacement/ repairs are easy. VI. Kitchen work/ equipment/ utensils get proper definition, role and place to function. VII. Can be expanded or reduced in size at later stages. Have low maintenance and high durability. VIII. Require simple ground preparation and services. IX. Can be constructed in a time period as short as 6 to 8 weeks from order. X. Person gets motivated to work in such kitchens.
2. Place: Located at Bangalore, India’s melting pot of international cultures, the company is at a strategically advantageous position to offer its clients furniture that reflects the emerging global denizens.
The corporate office and showrooms is situated at New BEL Road, RMV II Stage; Bangalore.
3. Price: The products are customized so the price also doffers accordingly. The products offered are basically made either from prelim, MDF or membrane. Each product has a different rate. Prelim is priced at Rs. 650 per sq. ft. The pricing policy adopted is cost plus a percentage of profit. While quoting the price of a product, height and width is Page 37
A Study on Sales Promotion considered irrespective of depth. If the depth exceeds the standard norm of 2 ft. then only it is considered.
4. Promotion: The Company has a showroom of its own. The showroom is opened for all the seven days of a week from 9 a.m. to 9 p.m. Paper insertion are placed in leading newspapers such as Times of India, Business Standard, Deccan Herald and Prajavani. Telemarketing is also done. Display stalls are put up near construction of apartments. The Company also participates in exhibitions. The recent one is, being the participant of the Life Style Show on Palace Ground at Mekhri Circle.
Office Furnishings: This department is headed by Mr. Rajesh. Two marketing executives assist him.
The products dealt with are – modular workstations, filing storage units, pedestals, keyboard and U trolleys, conference tables, training tables and other office furniture. An important facet dealing with the promotion of a product is corporate presentations. The target group here is the corporate. Other than that there is no major change with regard to place, price and promotion.
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A Study on Sales Promotion
HR ASPECTS
Though the company does not have a separate HR Department as it is in the embryonic stage but the HR aspects are taken care of by Mr. Eugene Joseph.
• Leave Facility : All employees are entitled to 12 days of casual leave and 2 days of sick leave (monthly). In case of a long leave, say a week or more than that, one needs to inform it before 10- 12 days. In case of emergency, a prior intimation before 2 days is sufficient. One can also avail the facility of working on holidays and taking leave on the week days.
• Recruitment : The Company spells out its requirements to the consultancies about the suitable candidates. Usually, Mr. Eugene or Mr. Rajesh or Mr. Yesudas takes the interview of the candidates.
• Training : A selected candidate is put on training for about 15 days. During this period, he is not given individual project.
• Job Rotation : Page 39
A Study on Sales Promotion Job rotation is adopted by the company so that there is development of multi-faceted skills to fill in vacancies and to cope with increasing work load. Movement is effected in the same grade
THE WHOLE PROCESS AT A GLANCE Clients come to the showroom
↓ Initial Measurement is given
↓ Designers design the product
↓ Quotation is made
↓ Negotiation is made
↓ Color combination is chosen by the customer
↓ 50% of the amount is given as advance by the customer
↓ g of the estimation form Both the company and client will keep a copy of it
↓ Production drawing is made
↓ Production department Page 40
A Study on Sales Promotion
↓ Delivery and installation
SWOT Analysis Strength
Weakness
• • •
Customized products Reasonable price Quality Opportunity
•
•
Growth of furniture industry seems positive Huge potential
•
•
A new entrant in the market
Threats A lot many players are existing in the market
Future Plans: The company has shown excellent growth since inception and is growing at a rapid pace. All these contribute for the company’s future expansion plan.
•
It is going to open showrooms on Kerala. The 1 st one is coming up in Cochin.
•
It is going to open 4 more showrooms in Bangalore.
•
Will involve 10 dealers in Bangalore. Page 41
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CHAPTER- 4 DATA ANALYSIS AND INTERPRETATION
Table No. 1 Table representing the sex of the marketing executives Sex
No. of Respondents
Percentage
Male
6
20%
Female
24
80%
Total
30
100%
Analysis 80% of the respondents are male. 20% of the respondents are female.
Interpretation Majority of the marketing executive are male.
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Graph 1 Sex of the Marketing Executives
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Table No. 2 Table representing the pricing of products Prices High Reasonable Competitive Low Total
No. of Respondents ─ 16 14 ─ 30
Percentage ─ 54% 46% ─ 100%
Analysis 54% of the respondents are of the opinion that the products are reasonable. 46% of the respondents are of the opinion that the prices of the products are competitive. None of the respondents feel that the prices of the products are either high or low.
Interpretation Majority of the respondents opine that the prices of the products are reasonable. The prices of the products are reasonable though they are competitive.
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Graph 2 Pricing of Products
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Table No. 3 Table representing the major competitors of Ferror Dek Pvt. Ltd. with regard to Home furnishing Major Competitor No dominant player Godrej Trident Inter Wood Total
No. of Respondents 24 4 2 30
Percentage 80 13 7 100
Analysis Majority of the respondents i.e. 80% opines that there is no dominant player in the market. 13% of the respondents are of the opinion that the Godrej is the major competitor. Trident Inter wood is considered as the major competitor by 7% of the respondents.
Interpretation Though brand names like Godrej and Trident Inter Wood came into the picture but the fact reveals that there is no dominant player in the market. So everyone is competing with each other. Page 46
A Study on Sales Promotion
Graph 3 Major Competitors
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Table No. 4 Table representing the competitor’s strength Strength Quality Brand Image Pricing Promotional Activities Total
No. of Respondents ─ 24 ─ 6 30
Percentage ─ 80 ─ 20 100
Analysis 80% of the respondents are of the opinion that the competitor’s strength is brand image. 20% of the respondents opine that promotional activities are the strength of the competitors. None of the respondents feel that quality and pricing are the strength of the competitors.
Interpretation Majority of the respondents opines that brand image is the strength of the competitors.
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Graph 4 The Competitor’s Strength
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Table No. 5 Table representing the quality of the products of Ferror dek with respect to other competitors Rating Good Very good Fair Poor Total
No. of Respondents 17 13 ─ ─ 30
Percentage 57 43 ─ ─ 100
Analysis Majority of the respondents i.e. 57% are of the opinion that the products are of good quality with respect to other competitors. 43% of the respondents opine that the products are of very good quality with respect to the other competitors. None of the respondents are of the opinion that the products are of fair or poor quality with respect to other competitors.
Interpretation Majority of the respondents is of the opinion that the products are of good quality and is at par with other competitors having brand names.
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A Study on Sales Promotion
Graph 5 Quality of the products of Ferror dek with respect to other competitors
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A Study on Sales Promotion
Table No. 6 Table representing kind of products sold more per month Products Modular kitchen Modular kitchen and Wardrobe Total
No. of Respondents 27 3
Percentage 90 10
30
100
Analysis 90% of the respondents are of the opinion that modular kitchens are sold more per month. 10% of the respondents are of the opinion that modular kitchen and wardrobes are sold more per month.
Interpretation Majority of the respondents is of the opinion that modular kitchens are sold more per month.
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Graph 6 Kinds of products sold more per month
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Table No. 7 Table representing the merits of the products of Ferror dek that differentiates it from others Merits Reasonable price Quality Customized product Finishing Total
No. of Respondents 10 7 10 3 30
Percentage 33 24 33 10 100
Analysis 33% of the respondents are of the opinion that reasonable pricing and a customized product differentiates the products of Ferror dek from that of others. 24% of the respondents are of the opinion that quality is the differentiating factor. 10% of the respondents are of the opinion that finishing is the differentiating factor.
Interpretation Reasonable pricing and customized products differentiates the products of Feror dek from that of others.
Page 54
A Study on Sales Promotion In fact, all the merits such as reasonable pricing, customized products, quality and finishing contributes in differentiating the products from others.
Graph 7 Merits that differentiates the products of Ferror dek Pvt. Ltd.
12
10
8
10
10
7 Reasonable price
6
Quality Customized products
4
3
Finishing
2
0 No. of Respondents
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Table No. 8 Table representing the factors which play a major role in demand generation Factors
Ratings 5
4
3
2
1
Price of the product
4
3
0
1
1
Awareness about the product Delivery of the product ordered Presentation about the product Design of the product
3
1
0
4
1
1
0
5
1
2
0
2
0
3
4
1
3
4
0
1
5 - Very important, 4 - Important, 3 - Makes little difference, 2 - Not important, 1 – Does not make any difference.
Analysis Price of the product gets the maximum of 5 rating. Design of the product and the price of the product get the maximum of 4 rating. Delivery of the product ordered gets the maximum of 3 ratings. Awareness about the product gets the maximum of 2 rating.
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A Study on Sales Promotion Presentation about the product gets the maximum of 1 rating.
Interpretation Price of the product plays a major role in the demand generation. Design of the product plays an important role in demand generation. Delivery time of the product ordered can make a little difference in demand generation.
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Graph 8 Factors playing a major role in demand generation
6
5
5
4
4
4
4 Price of the product
3
3
3
3
Awarenessabout the product Delivery of the product ordered
2
2
1
3
1
1 1
00
0 1
0 2
Presentation about the product
2
0
0 3
1
Design of the product
1
0 4
5
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Table No. 9 Table representing the promotion of the products of Ferror dek Pvt. Ltd. Promotions Paper insertion Telemarketing Display stalls Participating in exhibition Direct mail Presentations Showrooms Total
No. of Respondents 7 10 ─ 10
Percentage 24 33 ─ 33
─ ─ 3 30
─ ─ 10 100
Analysis 24% of the respondents are of the opinion that paper insertions are used as promotion of the product. 33% of the respondents opine that telemarketing is the means of promotion of the products. 33% of the respondents feel that participating in exhibition has promoted the product. 10% of the respondents are of the opinion that showrooms are used as promotion of the product.
Interpretation Page 59
A Study on Sales Promotion The company adopts a variety of promotional methods such as paper insertion, telemarketing, display stalls, participating in exhibition, direct mail, presentations and showrooms.
Graph 9 Methods of promoting the products
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Table No. 10 Table representing the discount if given on repeat purchase Discounts Given Yes No Total
No. of Respondents 27 3 30
Percentage 90 10 100
Analysis 90% of the respondents are of the opinion that the discount is given on repeat purchase. 10% of the respondents are of the opinion that discounts are not given on repeat purchase.
Interpretation Majority of the respondents is of the opinion that discounts are given on repeat purchase.
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Graph 10 Discounts given on repeat purchase
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Table No. 11 Table representing the percentage of discounts given on repeat purchase Percentage of Discount 2 – 5% 6 – 10% 11 – 15% 16 – 20% None Total
No. of Respondent
Percentage
20 5 ─ ─ 5 30
66 17 ─ ─ 17 100
Analysis 66% of the respondents are of the opinion that 2-5% discount is given on repeat purchase. 17% of the respondents opine that 6-10% of discount is given on repeat purchase. 17% of the respondents are of the opinion that no discount is given on repeat purchase.
Interpretation Majority of the respondents are of the opinion that 2-5% discount is given on repeat purchase.
Page 63
A Study on Sales Promotion The company does not adhere to any stringent norm while giving discount on repeat purchase as there is difference of opinion among the respondents.
Graph 11 Percentage of discount given on repeat purchase
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Table No. 12 Table representing the way of marketing of the products Way Direct marketing (Showroom) Retailers Dealers All of the above Total
No. of Respondents 30
Percentage 100
─ ─ ─ 30
─ ─ ─ 100
Analysis 100% of the respondents are of the opinion that the marketing of products are through direct marketing.
Interpretation The products are marketed through direct marketing and dealers and retailers are not involved in the marketing process.
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Graph 12 The way of marketing of the products
35 30
30
25 Direct marketing
20
Retailers 15
Dealers All of the above
10 5 0
0
0
0
No. of Respondents
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Table No. 13 Table representing the target consumers Target Upper class Middle class Lower class Total
No. of Respondents 27 3 ─ 30
Percentage 90 10 ─ 100%
Analysis 90% the target customers are from upper class. 10% of the target customers are from middle class.
Interpretation The target consumers are the upper class and the middle class.
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Graph 13 The target consumers
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Table No. 14 Table representing the kind of incentives received by the employee Kind of incentives Commission Schemes Free gifts Recognition Nothing at present Total
No. of Respondents ─ ─ ─ 17 13 30
Percentage ─ ─ ─ 57 43 100
Analysis 100% of the respondents are of the opinion that no incentives are given at present.
Interpretation No incentives are given to the marketing personnel at present.
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Graph 14 Kind of incentives received by the marketing personnel
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A Study on Sales Promotion
CHAPTER – 5 SUMMARY OF FINDINGS AND CONCLISION
A Summary of Findings: The finding can be grouped together into two broad categories such as;
Specific Findings: This is pertaining to the objectives of the study.
General Findings: This is with regard to the market dynamics and visits made by the researcher to companies having almost similar products profile.
Specific Findings: 1. The company adopts a variety of promotional methods such as paper insertion, telemarketing, display stalls, participating in exhibitions, direct mail, presentations and showrooms.
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A Study on Sales Promotion 2. Though brand names like Godrej and Trident Inter Wood came into the picture but the fact reveals that there is no dominant player in the market. So every player is vying with each other to capture a larger pie in the markets.
3. Transparency is maintained at the levels of the organization.
4. The products are marketed through direct marketing (showroom) and dealers are not involved in the marketing process so far.
5. The activities carried out by each and every department of the organization is systematic.
General Findings: 1.Foreign companies can invest up to 100% in most of the manufacturing industries in India, including furniture.
2.With the vast array of modular option available in market, the consumer isn’t really strapped for choice.
3.Italian manufacturers have now entered the Indian markets. Moreover, furniture made from Asian Teak Wood which is available in the rich rain forests of Malaysia is flooded in the Indian market. In a nutshell, this means to say that the competition is very intense.
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4.Many branded companies outsource the products because of which the delivery time of the product ordered is stretched. In this respect, Ferror Dek has an added advantage.
5.With respect to the foil, Ferror Dek offers a wide range of colors. This gives it an edge over the others.
6.“Quality never comes cheap”. This is true but at the same time, it is also true that quality can come at a reasonable price. With regard to the quality, products of Ferror Dek are at par with the other players having brand names and at the same time the products are reasonable priced.
7.With regard to home furnishings, most of the companies have standardized products but the products of Ferror Dek are customized. This can be rightly marked as the strength of the company.
8. Majority of the marketing executives are male.
9. The prices of the products are reasonable though they are competitive.
10. The products are of good quality and are at par with other competitors having brand names.
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A Study on Sales Promotion 11. Modular kitchens are sold more per month. So, this area needs greater focus.
12. Reasonable pricing, customized products, quality and finishing contributes in differentiating the products of the organization from that of the others.
13. Apart from price of the product, design and delivery time of the product ordered play a crucial role in triggering out demand generation of the product.
14. Discount is given on repeat purchase.
15. The company does not adhere to stringent norm while giving discount on repeat purchase.
16. The target consumers are the elite and upper middle class.
17. No incentives are given by the company to its marketing personnel at present.
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CONCLUSION “No man has the right to dictate what other men should perceive, create or produce, but all should be encouraged to reveal themselves, their perceptions and emotions and builds confidence in their creative spirit!”
This inspiring thought of Ansell Adams is well appreciated by new style marketing organizations which understand that “boxes and lines” structures can’t drive value in fast moving environments. No doubt, Ferror Dek Pvt. Ltd. is one of them because they believe in teamwork. Today, the need of the Indian consumer evolves beyond “roti, kapada aur makaan”. The game in the new-breed furniture industry is no longer furnishing. It is about “home dressing”. To capture opportunities continually, the company must have a continual flow of ideas. Transforming a pipeline full of ideas into a value – generating portfolio of products and services is hard. Herein, lays the importance of co-ordination.
A home is not just a living space but one’s statement of individuality to the world. Big or small, it’s all about adding own touch to one’s home to make it unique – a perfect blend of form and function. With the ever increasing number of house-hold items, a highly dynamic and always on the move job profiles, it is crucial for people to employ efficient storage spaces that are affordable to purchase. The modular kitchen of today is the epitome of Page 75
A Study on Sales Promotion functionality and multi-purpose aspects. With the rise in income and the infiltration of western luxury goods have created a cultural shift towards materialism and consumerism. Ferror Dek with its unique strength provides customer solution that offers the perfect balance of quality and economy.
In today’s crowded market place, where products and services are touting themselves to be the best, it is vital to stand out in the crowd. From the various channels of advertising, point of sale displays and how the employees are relating to the customers. It is important for Ferror Dek Pvt. Ltd. to establish and reinforce an unmistakable brand and corporate identity in all channels of fickle minded consumers. Herein, lays the importance of the Japanese proverb which says – “Thinking without action is a daydream and action without thinking is a nightmare”.
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CHAPTER – 6 RECOMMENDATIONS AND SUGGESTIONS This chapter lists the various recommendations and suggestions with respect to the findings and in congruence with the objectives of the study.
Recommendations: 1.It’s overwhelming to find out that the organization works in a systematic manner. A blend of co-ordination will definitely enhance the performance of the company.
2.Quality clubbed with reasonable pricing and quick delivery made the product of the company stand apart. The marketing campaign should focus on this aspect and made according to its line.
3.The strength of the company is its customized products. This very fact must be highlighted in the marketing campaign.
4.As the products are reasonably priced, the ambit of the target consumers should be stretched so that middle class consumers also fit into it.
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A Study on Sales Promotion 5.The company must stick to a norm while giving discounts on repeat purchase. This will certainly help in sales promotion in order to create repeat purchase.
6.In order to have a rapid market access, the company can include dealers, if not retailers at the moment.
7.The company should focus the marketing strategies on Modular kitchens in the home furnishing arena as it is moving in the market rapidly.
8.The company can introduce some reward schemes so that a person is benefited after the fulfillment and over achievement of the target. This is predominantly done to motivate the sales force and enhance their performance.
9.Other than emphasis on design, craftsmanship and product quality, the company’s unique strength also lies in its capability as a fully – integrated furniture manufacturer. This fact should be highlighted during the ment campaigns.
10. The need of the hour is aggressive marketing.
Suggestions: Page 78
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1.Everyone is aware of the growth in wealth and change in lifestyle among Bangalore’s novae riche. So the marketing campaign should be designed to woo the customers.
2.The company should explore all possible ways in order to aggressively sell its products. So, the company can itself in Furniture.co.in as it is India’s biggest online B2B plan with largest virtual furniture directory.
3.The construction industry is in boom. In order to tap the potential market, the Company can in a magazine named ‘Builders Grid’. This will help in showcasing the products of the magazine. This can add an extra spice to sales.
4.Feng Shui items are gaining prominence right at the moment. Feng Shui describes the wood personality as one possessing good decision making skills, idealism, imagination, comion and the ability to create change. The fact can help in emotional marketing of the product and also combat competition from Godrej whose modular kitchens are made of steel.
5.In today’s crowed market place in order to increase the size of the pie, the Company can adopt innovative promotional strategies. One of them
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A Study on Sales Promotion can be suggested as ‘Dream House’ road shows. It will help in creating and reinforcing the Company’s identity in the minds of the consumer.
6.In order to be extra ordinary, the Company has to walk the extra mile. A method named ‘Experimental Marketing’ can be adopted by the Company wherein the prospective consumers can be invited to visit the showroom and touch and feel the products.
7.Since the competition is intense, so there should be some value addition so as to make the Company stand apart in the market. One such way is to improvise the customer service.
8.Consumer is the king in the market. This fact should be deeply rooted in the minds of the employees. The Company can adopt some ways to listen to the customer’s which should be noted in writing so that it will help in continual improvement and make the company to be in the right track always. Moreover, a sense of involvement will be felt by the customers whish can give the company a cutting edge.
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APPENDICES AND ANNEXURES A copy of the questionnaire, some eye sizzlers showcasing the products of the company and paper insertion are enclosed herewith.
QUESTIONNAIRE 1) Name:
2) Address:
3) Designation:
4) Sex: a) Male b) Female
5) Type of products dealing with a) Home furnishing b) Office furnishing
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A Study on Sales Promotion 6) How are you priced? a) High b) Reasonable c) Competitive d) Low
7) Who is your major competitor?
8) What is your competitor’s strength? / What makes you ahead of him? a) Quality b) Brand image c) Pricing d) Promotional activities
9) With respect to other competitors how do you rate yourself in of quality? a) Good b) Very good c) Fair d) Poor
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A Study on Sales Promotion 10)Which products are sold more per week/per month?
11) What specific merits do you think will differentiate your products from others? a) Reasonable price b) Quality c) Customized products d) Finishing
12)How important do you feel that the following factors play a major role in demand generation on a scale of 1-5? a) Price of the product b) Awareness about the product c) Delivery time of the product ordered d) Presentation of the product e) Design of the product
5- Very important 4- Important 3- Makes little differences 2- Not important 1- Does not make any difference
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A Study on Sales Promotion 13)How do you promote your products? a) Paper insertion b) Telemarketing c) Display stalls d) Participating in Exhibition e) Direct mail f) Presentations g) Showrooms h) All of the above
14) A) Do you give any discount on repeat purchase? a) Yes b) No B) If yes how much discount do you give? a) 2-5% b) 6-10% c) 11-15% d) 16-20% e) None
15)How are you marketing your products? a) Direct marketing b) Retailers c) Dealers d) All the above Page 84
A Study on Sales Promotion 16)Who are your target consumers? a) Elite class and upper middle class b) Middle class c) Lower middle class d) Corporate
17)What kind of incentives are you getting? a) Commission b) Schemes c) Free gifts d) Recognition e) Nothing at present
THANK YOU!
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CHAPTER – 1 INTRODUCTION “Marketing is a social and managerial process by which individuals and groups obtain what they need and want, through creating, offering and exchanging products of value with others”. -
Philip Kotler.
Marketing includes all those activities having to do with effecting changes in the ownership and possession of goods and services. It is that part of economics which deals with the creation of time, place and possession utilities and that phase of business activity through which human wants are satisfied, by the exchange of goods and services for some valuable consideration. -
American Marketing Association.
Marketing is the process of discovering and translating consumer wants into product and service specifications and then in turn helping to make it possible for more and more of consumers to enjoy more and more of these products and services.
Marketing consists of analyzing marketing opportunities, researching and selecting target markets, deg marketing strategies, planning marketing programs and organizing, implementing and controlling marketing effort.
Page 1
A Study on Sales Promotion Companies have to identify long and short term marketing opportunities and research the selected market by measuring and forecasting attractiveness of the given market. Having selected the market, the companies need to develop a differentiating and positioning strategy for the target market. The marketing strategy must be transformed into marketing programs by deciding on marketing expenditures and the marketing mix. The final step is organizing the marketing resources and implementing and controlling the marketing plan.
Marketing Mix Marketing mix is the set of marketing tools that a firm uses to pursue its marketing objectives in the target market. McCarthy has popularized a four factor classification of marketing tools known as the 4P’s of the marketing mix. They are: •
Product
•
Price
•
Place
•
Promotion
Product: Product stands for the firm’s tangible offer to the market, including the product quality, design, features, branding and packing. It deals with new product development, product life cycle, product mix, product lines, branding and associated services to a product. From the customer’s point of view, it helps in satisfying the customer’s needs and wants.
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A Study on Sales Promotion Price: Price is the monetary value of the product. Price deals with selecting the pricing objectives, setting the price, discounts, allowances, payment policies and credit . It is very important to the customers as it decides the cost the customer has to pay to gain the product value.
Place: This marketing tool stands for the various activities the company undertakes to make the product accessible and available to the customer. It involves market size, channel selection and management, storage and physical distribution with the ultimate purpose of efficiently supplying the company’s offer to the target market. To the customer, this marketing tool refers to convenience.
Promotion: Promotion stands for various activities the company undertakes to communicate and promote its products to the target market. It involves communication programs i.e. direct marketing, advertising, sales promotions, public relations and motivation of sales force. To the customer this tool provides knowledge and information.
Page 3
A Study on Sales Promotion The Promotion Mix of a company includes the following tools;
Advertising: It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Direct Marketing: It refers to the use of mail, telephone and other non-personal tools to communicate with or solicit a response from specific customers and prospects.
Personal Selling: Face to face interaction with one or more prospective purchasers for the purpose of making a sale refers to personal selling.
Public Relations and Publicity: It refers to the variety of programs designed to promote and or protect a company’s image or its individual products.
Sales Promotions: The short-term incentive to encourage trial or purchase of a product or service refers to sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an incentive to buy. Since sales promotion directly push up the sales, increasing number of companies are undertaking sales promotion activities.
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Sales Promotion Sales promotion refers to the short-term incentives to encourage sales of a product or service. It consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and greater purchase of products or services by consumers.
Purpose of Sales Promotion Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional s. Sales promotion usually targets brand switchers because non-s and s of other brands do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other products. Sales promotions also let manufacturers adjust to short term changes in supply and demand and differences in customer segments. They also let manufacturers to experiment by varying prices. Sales promotions also lead to greater consumer awareness of prices. To use sales promotion, a company must set objectives, select the right tools, develop the best program and implement it and evaluate the results.
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A Study on Sales Promotion Objectives of Sales Promotion The specific objectives set for sales promotions will vary with the type of the target market. For consumer promotions, objectives include encouraging purchasing of larger sized units, building trial among non-s and attracting switchers away from the competitor’s brands. For trade promotions, objectives may include; including retailers to carry new items and higher level of inventory, encouraging off-seasonal buying, of-setting competitive promotions, building brand loyalty of retailers and gaining entry into new retail outlets. The sales force promotions help in encouraging of a new product or model, encouraging more prospecting and stimulating off-seasonal sales. But most importantly, sales promotion should be focused on consumer relationship building.
Sales Promotion Tools Many tools can be used to accomplish sales promotion objectives. Descriptions of the main promotional tools are as follows;
Consumer Promotion Tools The main consumer promotion tools are as follows;
• Samples: They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the product without cost or at a lower cost in the hope that they will buy the product. Samples may be free or discounted. Page 6
A Study on Sales Promotion • Coupons: Coupons are certificates that give buyers a saving when they purchase a specified product. Coupons can be mailed, placed in ments or included with other products.
•
Rebates: Rebate is also known as cash refund offers. Rebates are offers to refund part of the purchase price of a product to its customers who send a proof of purchase to the manufacturer. These are like coupons except that the price reduction occurs after the purchase and not at the point of sale.
• Price Packs: Cents-off deals or price packs offer consumers savings by way of reducing prices that are marked by the producer directly on the package.
• s: These are the goods offered either free or at a low cost as an incentive to buy a product. s may be in-pack or on-pack (outside the pack).
Page 7
A Study on Sales Promotion • Prizes: They are offers of chance to win something such as cash, trips or goods – by luck or through extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering promotions.
• Tie-in Promotions: Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or contests to increase their pulling powers.
• Cross Promotions: Cross promotions involve using one brand to non-competing brand.
•
Advertising Specialties: These are useful articles imprinted with an r’s name, given as gifts to consumers.
•
Patronage Rewards: They are cash or other awards for the regular use of company’s products or services. They are values (in cash otherwise) that are proportional to one’s patronage of a certain vendor or a group of vendors. They aim at building brand loyalty.
• PoP Promotions: Point of purchase (PoP) includes displays and demonstrations that take place at the point of purchase or sale. Page 8
A Study on Sales Promotion Trade Promotion Tools More money is spent by companies on trade promotion (58%) than on consumer promotions (42%). The major trade promotion tools are as follows;
• Discounts: It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on a particular quantity purchased during a stated time.
• Allowances: They are the amount offered in return for an agreement by the retailer to feature the manufacturer’s products in some way; displays, advertising or otherwise.
• Free Goods: Free goods are the extra merchandise offered to middlemen who buy a specific amount of a product. Companies also offer push money and specialty advertising items to the middlemen.
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A Study on Sales Promotion Business Promotion Tools Companies spend huge amount on promotions focused on industrial consumers. The major business promotion tools are as follows;
•
Trade Shows and Conventions.
•
Sales Contests.
Clearly, sales promotions play an important role in the total promotion mix. To use it well, the marketer must define the sales promotion objectives, select the best tools, design the sales promotion program, pretest and implement the program and evaluate its results.
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A Study on Sales Promotion
INDUSTRY PROFILE A Look into the Indian Economy and Furniture Industry India is the fourth largest economy in the world and it’s the largest democracy with second largest GDP among emerging economies. World Bank’s President James D. Wolfensohn confirmed that India is not the world’s 4th largest economy after USA, China and Japan in PPP (Purchasing Power Parity). It is also one of the ten fastest growing economies in the world.
With 1 billion populations, India remains on the fastest growing economies and even in the present worldwide economic slowdown, has maintained GDP Growth rate of nearly 6%.
India today is 7th most attractive destination for foreign direct investments, after US, China, Brazil, Mexico and . Besides, India offers higher rate of returns and profitability than anywhere else in the world.
Out of 1 billion population the upper and middle class constitutes 20% or 200 million people (or 30 to 40 million houses). By rent per capita:
•
2 percent of Indian has a per capita income in excess of 14,500 Euros, which means 20 million people.
Page 11
A Study on Sales Promotion •
8 percent of Indians have a per capita income of more than 3,900 Euros, which means 80 million people.
•
10 percent of Indians have a per capita income in excess of 3,200 Euros, this is about 100 million people
Overall Economic Scenario 1. The Indian market has been enormous with a large base.
2. Levels of affluence are high- with the number of individuals in the “high: income demographic group doubling each year, according to NCAER statistics.
3. The actual “disposable” income at the disposal of the affluent Indian is as high as three to five times higher as the official statistics, on of the very large proportion of uned (“black”) money income.
4. The market has, due to exposure to overseas products and lifestyles, displayed the willingness and ability to purchase overseas brands and products at high prices.
5. Customs duties and tariffs have been drastically reduced, in keeping with government policy to open up the economy – a policy which has stayed constant despite changes
in government. All the products in the INDEX Page 12
A Study on Sales Promotion product range are now permitted for import into India under OGL or the Open General License, which implies that no special import license is required for import.
6. Despite the cut in duties, the rate of customs duties is fairly substantial which makes the prices of products higher in India. There is a huge demand for furniture, hardware and fittings, DIY equipment, lighting and consumer non-durable and appliances.
7. While the Indian middle class still does not have as high a rate of obsolescence as the US, and tend to use their furniture for several years before changing or upgrading, the actual size of this segment makes investment in this market more than worthwhile. The affluent classes however, do have high rate of obsolescence of interior decoration products and redecorate constantly.
8. All the above factors put together make manufacturers and retailers of a wide range of consumer durables. Several overseas companies have already entered the market and have been extremely well received by the market.
Indian Furniture Industry Page 13
A Study on Sales Promotion
The furniture sector in India only makes a marginal contribution to the formation of GDP, representing just a small percent (about 0.5%), which indicates a huge potential for growth. It is estimated that the furniture industry comprises 25% of the construction industry and hardware comprises 40% of total furniture industry, out of this 20% is replacement and 20% is new.
Wood and wooden products, furniture and fixtures carry a weight of 27.01% in the total manufacturing sector.
The furniture industry employs a total of around 30,000 workers. The future on the furniture sector in India seems positive. Talking about production, several agreements have been signed between local producers looking for technology and European and Asian companies trying to reach a potential opportunity in costs.
From the commercial point of view, India shows good perspective to sell furniture in the following years. First of all, because its size and secondly due to the newly acquired taste as a result of exposure to western furniture style.
India is one of the largest consumers of wood in South East Asia. Until a few years ago the county had considerable quantities of available tropical woods. The most common species in Indian forests are teak, rosewood, ebony, laurel, pine, cedar and rubber trees. Supply of these “ready to uses”
Page 14
A Study on Sales Promotion species became scarcer due to unconditional and inappropriate exploitation and also due to growing concern about the environment.
In India, natural rubber plantations covers 520,000 hectares with another 6,000 hectares replanted almost every year since 1994. Kerala state (South India) produces 95% of the total supply of rubber wood in India.
India imports wood (logs) especially from Malaysia, Indonesia, Myanmar, Ivory Cost, Cameroon, Nigeria, Ghana, South Africa and New Zealand and to some extend from South America.
Most soft and hard woods are imported from Russia, Scandinavia and other South East Asian counties. MDF is imported from Europe, and there is also a small local production. Veneered are becoming more popular in India and are imported from the European Union and the USA.
The total size of Indian furniture industry is estimated at Rs. 350 thousand million but almost 85% of this is unorganized. The remaining 15% is organized and is believed to be growing at a steady pace of 12% to 15% per annum.
The share of the wooden furniture market is estimated at Rs. 600 million. Woodworking industry of India is one of the fastest growing in the county’s economy. Much of this growth has been fuelled by the increasing access to modern machinery and technology through easier import policies as a result of India’s entry into the WTO in the year 1990s. There is a noticeable shift in Page 15
A Study on Sales Promotion the preference towards mechanized mass production and the up gradation of technology.
The Emerging Trend Though technology has made inroads in the industry with increasing stress on the use of machines, overall scenario reveals that almost 80% of the products supplied in local markets by indigenous manufacturers are labor intensive and handmade. Residential or household furniture s for over 60% of the overall domestic and leading manufacturers have begun to realize the necessity of proper distribution system in this area.
Among other sectors where the demand is spiraling upwards is office furniture. Growth of IT an IT- enabled sector such as BPO’s has created a huge demand in metros and Class II cities all over India. The old economy businesses are also undergoing a makeover and this is reflected through changing looks of the offices.
Metal and plastic furniture production is gaining wider prominence but wood still remains to be the most favored medium.
CHAPTER - 2 Page 16
A Study on Sales Promotion
REASEARCH DESIGN Title of the Study The title of the study is – “A STUDY ON SALES PROMOTION OF HOME FURNISHINGS AT Ferror Dek Pvt. Ltd”.
Statement of the Problem The project is mainly undertaken to study the sales promotional strategies at Ferror Dek Pvt. Ltd. The intention of the study is to find what attributes needs
further
improvement
in
order
to
make
the
product
more
preferable in the market.
The main aim of the study is to uncover new relationship and identify any problem that may arise in future. Hence, exploratory research is been conducted. Exploratory research as its name implies endeavors of exploring the possibility of doing research on a subject where due to lack of existing knowledge framing and testing the hypotheses is difficult. In today’s crowed marketplace where products and services are touting themselves to be the best, it is vital to stand out in the crowd. The study was undertaken to explore how a company or brand can ensure a store that stands out and not get lost in the crowd.
Objectives of the Study Page 17
A Study on Sales Promotion
1. To study the various promotional strategy adopted by Ferror Dek Pvt. Ltd.
2. To find out the footage of Ferror Dek Pvt. Ltd. With respect to other players in the market.
3. To observe and understand the practice followed by Ferror Dek Pvt. Ltd.
4. To find out the communication linkages and de-linkages in the organization.
5. To study the activities of each and every department of the organization.
Scope of the Study This project was undertaken for a specific period in Ferror Dek Pvt. Ltd., New BEL Road, RMV II Stage; Bangalore. It is an exercise that is well planned into the curriculum giving the researcher a valuable opportunity to understand the working dynamics of the organization and to experiment and exhibit the recently acquired management and istration skills.
The prospect of the furniture sector in India seems positive. The Indian furniture industry has awakened to interesting times! The last ten years have seen changes in the shop windows of furniture retailers. Consumers today no Page 18
A Study on Sales Promotion longer look for mere practicality in furniture, instead, they look for theme furnishing, i.e. lifestyle living. Realizing the tremendous market potential and to make the most of it, the study was undertaken.
Limitations of the Study Every study is bound by limitations and as such this is no exceptions.
1. “Change is Constant” rule of nature. Hence, the study undertaken may not hold good for longer duration.
2. The study was conducted under the assumption that the information given by the respondents is authentic.
3.
The analysis and suggestion are given only with respect to marketing aspects as technical suggestion with respect to the product could not be given.
4. Confidential matters were not disclosed by the company.
5. There were time constraints.
Page 19
A Study on Sales Promotion Methodology of the Study A variety of methods of study have been adopted by the researcher to fulfill the objectives of the study.
In order to have a better grasp of the study, the researcher chose to become a keen observer, studying the various aspects of the organization.
To have a broader perspective of the study, the researcher attended the Lifestyle Exhibition at Palace Grounds wherein the products of Ferror Dek Pvt. Ltd. were displayed.
In order to fund out the market realities, the researcher visited the showrooms of certain companies having almost similar product profile as that of Ferror Dek Pvt. Ltd. To name a few Quezel, Veneto Cosines, Trident Inter Wood, etc.
With a view to understand the crunch of the matter and to find out the ground realities, the researcher formed a schedule specifically for the set of respondents. The researcher met the respondents personally,
interviewed
them
and
made
them
to
fill
the
questionnaire.
Page 20
A Study on Sales Promotion The researcher has done the research in the following manner; a) Type of the research undertaken is analytical. b) Technique used is random sampling. c) Sample size taken is 30. d) Sources of data used include both primary as well as secondary data. e) Tool used for the research is questionnaire. f) Plan of analysis are tables and graphs.
Data Collection Methods
In this study, the foremost data collection instrument used is the questionnaire method. The questionnaire has been designed with both open ended and closed ended questions. Apart from this, the research instrument consists of primary and secondary data collected for the study.
Primary Data: Here first hand information is obtained by distributing printed questionnaire to the marketing executives of the company. Data was also obtained from the observation and interview technique adopted by the researcher. Moreover, information was disseminated by the departmental heads.
Secondary Data: Here the information is obtained from the brochure of Ferror Dek, books, websites, newsletter, journals, magazines, newspapers, etc.
Page 21
A Study on Sales Promotion SOURCES OF DATA
Primary Data
Secondary Data
Questionnaire
Newsletter
Observation
Journals
Interviews
Magazines
Visits to other
Newspapers
Companies Information
Books
Through Departmental heads
Websites
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A Study on Sales Promotion
CHAPTER – 3 COMPANY PROFILE
Ferror Dek Pvt. Ltd. promoted by Mr. Binny Kuriakose is one of India’s leading manufacturers and distributor of modular kitchen and modular work station. It also undertakes value added services such as executing turnkey projects as a part of office furnishing.
It has set international standards in of quality of work and execution of projects.
It was a modest beginning for Ferror Dek with a few orders for home furnishing. Very soon as the scope of the business grew; it started expanding into diverse activities. It is only a year old but the company has shown excellent growth since inception and is growing at a rapid pace.
It has a decade of expertise in building turnkey solutions for contemporary offices and homes. The understanding of modern demands allows optimizing spaces to derive maximum utility value for every furniture solution. The solutions are available in a wide variety of boards such as Pre-lam particle board, MDF board with post form finish, MDF with veneer finish and MDF with PVC foil membrane, 2mm PVC edge banded shutter etc. The whole range of solutions are tailor-made to suit the consumers needs blended with affordability and aesthetics. It is located at Bangalore, India’s melting pot of Page 23
A Study on Sales Promotion international cultures. They are at a strategic advantage to offer clients furniture that reflects the emerging global denizen.
It is equipped with a modern production house and employs world class machinery from and Italy to carve artistic niche for customers. It uses high quality raw material for all solutions and these are available in a wide variety of options.
Today’s market is clustered with options to furnish homes and workplace. But at Ferror Dek, what makes it to truly stand apart is the quality of the products and services. It is driven by the urge to provide quality that is distinctive as the customers are. Every single product that is rolled out of the manufacturing unit is ensured to be flawless and absolutely defect-free. The adherence to rigorous quality standards is maintained at every level because quality is continuous and consistent process…. Ferror Dek ensures its customers that the customers will find unique expressions of their creative niche.
THE CREATIVE NICHE: •
Understanding of modern client mindset allows optimizing spaces to derive maximum utility value for every interior solution, be it office or home.
•
Application of highly specialized design techniques sets its design apart from competing companies. Page 24
A Study on Sales Promotion
•
A combination of proficient project management control, unyielding quality guarantee and prompt operation and service .
•
It builds up a technical drawing, which has detailed records for every project, thus assuring complete transparency in all business dealings.
•
Ferror Dek undertakes and completes every project with the same precision and approach irrespective of the size of the project. Raw material is checked and sorted based on the target approach to stringent quality checks at every level.
MANUFACTURING FACILITIES: The specialized home solution offers complete units for every room. The array of products includes:
Modular Kitchens
a) Eco friendly laminated in different colors. Shutters come in membrane, medium density fiber (MDF) and pre-laminated particle board.
b) Different kinds of pull out baskets, to name a few D-tray, Swivel tray, magic corner. Page 25
A Study on Sales Promotion Wardrobes Wall units Crockery units Living room furniture Designer doors Shoe racks Loft coverings Dressing units Kids units.
Managing space at work: The modular solutions of the office strive to create a comfortable workplace, allow easy maneuverability of work area and infuse a high degree of visual appeal. The range of solutions includes:
• Modular Workstations: Eco friendly laminated modular office systems include desk, storage cabinet, pedestal, partitions and key board. The working desk system – is available in variety of shapes and sizes.
Page 26
A Study on Sales Promotion Partition system with fully integrated cable management partitions (two levels of cable raceways).
Partition thickness will be available in 75mm thickness.
Partition is made up of Mild Steel (MS) with required powder coated color.
Various heights and lengths of partitions are available.
Multiple choice of fabric, laminate, metal perforated sheets, accessories , glass, etc.
•
Filling storage units
•
Pedestals
•
Keyboard and U trolleys
•
Discussion tables
•
Conference tables
•
Training tables
•
Other office furniture.
Managing Turnkey Projects:
Page 27
A Study on Sales Promotion Though home and office furnishing is the niche area, value added services are provided to give customer solution and thus turnkey projects are undertaken. Turnkey projects include: •
Architectural services
•
Civil construction
•
Project co-ordination
•
False-ceiling
•
Networking
•
Electrical work.
Some of its Clients are: 1. Rockewell Studio, Bangalore 2. Credence Audio Systems, Bangalore 3. Honeywell Ltd., Bangalore 4. Cepha Imagining Pvt. Ltd., Bangalore 5. Black and White Studio, Bangalore 6. Siddharth Engineering Pvt. Ltd., Bangalore 7. Kurl-on-Ltd., Bangalore 8. Manjushree College of Nursing, Bangalore 9. Atlas Copco-Bangalore 10. Rahul Cargo Pvt. Ltd. – Bangalore 11. Daedalus Consulting Pvt. Ltd. – Bangalore.
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A Study on Sales Promotion
ORGANIZATION CHART MD
Head s And istration
2 Executives And an Office boy
Head Marketing (Home Furnishings)
Head Deg
8 Marketing Executives
8 Designers
Supervisor (Quality Control)
2 Persons
Supervisor (Production)
26 Persons (Machine operators And helpers)
Head Marketing (Office Furnishings)
Head Production
2 Marketing Executives
Supervisor (Product Analysis)
2 Persons
Supervisor (Dispatch)
1 Person
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A Study on Sales Promotion
Employee Strength – A total of 61 personnel including executives and shop floor workers are working for the company.
DEPARTMENTS The researcher encomed the study of four departments namely s and istration, Deg, Production and Marketing. The basis for departmentalization was functional.
S AND ISTRATION DEPARTMENT This department is headed by Mr. Yesudas. Two executives assist him.
This department is broadly concerned with the acquisition and use of funds by the company. It also analyze, plan and control the company’s financial affairs. Moreover, the in house istration of the company is also taken care of. It includes maintenance of showroom and a look into the requirements and problems of day to day istration. It also keeps a track of things with regard to civil construction, architectural services, networking, project co-ordination, electrical work, etc. It is also concerned with bank facility availed by the employees. Apart from all these, it also takes into the installation part at the customer site after the dispatch of the product. In a nutshell this department deals with the trouble shooting of any problem.
Page 30
A Study on Sales Promotion DEG DEPARTMENT This department is headed by Mr. Albert. Eight creative designers assist him. The team of designer tailor makes the products according to the needs of the customers. Two aspects namely affordability and aesthetics are focused upon. Major activities undertaken in this department are as follows:
•
Setting the normal design – According to the initial measurement told by the customer, a normal design is set. Once the normal design is finalized by the customer, a designer accompanied by marketing personnel visits the construction site and takes the final measurement. Then according to it a design is set and the price quotations are made.
•
Setting the production design – When the deal is finalized and after receiving 50% of the amount from the customer, the designers make the production design. This design clearly demarcates the technicalities so that it becomes easier for the production personnel to understand.
•
Innovative designs – The team of designers also trigger out the brain cells to create innovative designs.
PRODUCTION DEPARTMENT Page 31
A Study on Sales Promotion This department is headed by Mr. Prashanth. Four supervisors are in charge of four different activities such as quality control, product analyzing, production and dispatch.
PRODUCTION HEAD
Supervisor (Quality Control)
2 Persons
Supervisor (Product Analysis)
2 Persons
Supervisor (Production)
26 Persons (Machine Operators And helpers)
Supervisor (Dispatch)
1 Person
• Quality Control: This sub department is mainly concerned with the inspection of raw materials. The raw materials are supplied mainly by four companies namely Novapan, Spacewood, Bhutan Board and Nepal Board and Nuwood. For bulk orders, direct purchase is made from the local companies such as Marino Ply, Greenlam, Virlam and Kalachandra.
The raw materials obtained are with respected with regard to requirements and specifications.
Page 32
A Study on Sales Promotion • Product Analyzing: This sub-department is mainly concerned with targeting and scheduling. After receiving the production design, it targets as to when the work needs to be completed and schedules the whole process. Again, after completion of production process and before dispatch, the product is thoroughly inspected here.
• Production: 26 persons comprising of machine operators and helpers are involved in this sub-department. It consists of five operations namely cutting, molding, edge bending, boring and hot press and post formed.
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A Study on Sales Promotion
I. Operation : Cutting Machine Used 1. BEAMSAW
No. of Person Involved 5 persons : 2 operators 3 helpers
2. SAW
II. Operation : Molding Machine Used 1. SPINDLE MOULDER
No. of Person Involved 4 persons : 1 operator 1 gauge setting 2 for loading and unloading
III. Operation : Edge bending Machine Used 1. THROUGH EDGE BENDING
No. of Person Involved 3 persons : 1 operator 2 helpers
IV. Operation : Boring Machine Used 1. BORING
No. of Person Involved 3 operators
Page 34
A Study on Sales Promotion V. Operation : Molding Machine Used 1. HOT PRESS
No. of Person Involved 3 operators
2. POST FORMED
3 operators
٭Important Note : Within 4 hours after cutting the , it needs to be covered.
• Dispatch: After the product is analyzed, it is ready for dispatch. Usually, at least once carpenter goes to the customer site for installation.
MARKETING DEPARTMENT This department deals with the springboard of all activities. This department is split into two divisions – one dealing with home furnishings and the other dealing with office furnishings.
Home Furnishings: This department is headed by Mr. Eugene Joseph. Eight marketing executives assist him. Let us discuss the 4P’s of marketing mix with regard to the company.
1. Product: Page 35
A Study on Sales Promotion Modular kitchens, wardrobes, wall units, crockery units, living room furniture, designer doors, shoe racks, loft coverings, dressing units, kids units.
What is Modular Kitchens? The accent today is on ergonomics – a kitchen that’s a comfort to use and be in. Modular kitchens are planned around the workflow triangle of refrigerator – cooker-sink: minimizing distances between these makes cooking a more economical and energy saving process. For a dream kitchen, one must be able to pinpoint needs, aspirations, likes and dislikes. Then the manufacturers step in and do the rest. Color preferences, textures and materials work at the psychological level to affect one’s perception of a space. Modular kitchen also have accessories like napkin holders and storage shelves mounted on racks that can be run along the length of the kitchen wall.
Why use Modular Kitchen? I. They look good and optimize space. II. Are fully re-locatable. III. Are made of durable material. IV. Selection of different materials for different uses is a difficult decision to make which easily solved by modular kitchen.
Page 36
A Study on Sales Promotion V. A modular kitchen takes care of things like exhaust hoods/ chimneys which are otherwise ignored. Replacement/ repairs are easy. VI. Kitchen work/ equipment/ utensils get proper definition, role and place to function. VII. Can be expanded or reduced in size at later stages. Have low maintenance and high durability. VIII. Require simple ground preparation and services. IX. Can be constructed in a time period as short as 6 to 8 weeks from order. X. Person gets motivated to work in such kitchens.
2. Place: Located at Bangalore, India’s melting pot of international cultures, the company is at a strategically advantageous position to offer its clients furniture that reflects the emerging global denizens.
The corporate office and showrooms is situated at New BEL Road, RMV II Stage; Bangalore.
3. Price: The products are customized so the price also doffers accordingly. The products offered are basically made either from prelim, MDF or membrane. Each product has a different rate. Prelim is priced at Rs. 650 per sq. ft. The pricing policy adopted is cost plus a percentage of profit. While quoting the price of a product, height and width is Page 37
A Study on Sales Promotion considered irrespective of depth. If the depth exceeds the standard norm of 2 ft. then only it is considered.
4. Promotion: The Company has a showroom of its own. The showroom is opened for all the seven days of a week from 9 a.m. to 9 p.m. Paper insertion are placed in leading newspapers such as Times of India, Business Standard, Deccan Herald and Prajavani. Telemarketing is also done. Display stalls are put up near construction of apartments. The Company also participates in exhibitions. The recent one is, being the participant of the Life Style Show on Palace Ground at Mekhri Circle.
Office Furnishings: This department is headed by Mr. Rajesh. Two marketing executives assist him.
The products dealt with are – modular workstations, filing storage units, pedestals, keyboard and U trolleys, conference tables, training tables and other office furniture. An important facet dealing with the promotion of a product is corporate presentations. The target group here is the corporate. Other than that there is no major change with regard to place, price and promotion.
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A Study on Sales Promotion
HR ASPECTS
Though the company does not have a separate HR Department as it is in the embryonic stage but the HR aspects are taken care of by Mr. Eugene Joseph.
• Leave Facility : All employees are entitled to 12 days of casual leave and 2 days of sick leave (monthly). In case of a long leave, say a week or more than that, one needs to inform it before 10- 12 days. In case of emergency, a prior intimation before 2 days is sufficient. One can also avail the facility of working on holidays and taking leave on the week days.
• Recruitment : The Company spells out its requirements to the consultancies about the suitable candidates. Usually, Mr. Eugene or Mr. Rajesh or Mr. Yesudas takes the interview of the candidates.
• Training : A selected candidate is put on training for about 15 days. During this period, he is not given individual project.
• Job Rotation : Page 39
A Study on Sales Promotion Job rotation is adopted by the company so that there is development of multi-faceted skills to fill in vacancies and to cope with increasing work load. Movement is effected in the same grade
THE WHOLE PROCESS AT A GLANCE Clients come to the showroom
↓ Initial Measurement is given
↓ Designers design the product
↓ Quotation is made
↓ Negotiation is made
↓ Color combination is chosen by the customer
↓ 50% of the amount is given as advance by the customer
↓ g of the estimation form Both the company and client will keep a copy of it
↓ Production drawing is made
↓ Production department Page 40
A Study on Sales Promotion
↓ Delivery and installation
SWOT Analysis Strength
Weakness
• • •
Customized products Reasonable price Quality Opportunity
•
•
Growth of furniture industry seems positive Huge potential
•
•
A new entrant in the market
Threats A lot many players are existing in the market
Future Plans: The company has shown excellent growth since inception and is growing at a rapid pace. All these contribute for the company’s future expansion plan.
•
It is going to open showrooms on Kerala. The 1 st one is coming up in Cochin.
•
It is going to open 4 more showrooms in Bangalore.
•
Will involve 10 dealers in Bangalore. Page 41
A Study on Sales Promotion
CHAPTER- 4 DATA ANALYSIS AND INTERPRETATION
Table No. 1 Table representing the sex of the marketing executives Sex
No. of Respondents
Percentage
Male
6
20%
Female
24
80%
Total
30
100%
Analysis 80% of the respondents are male. 20% of the respondents are female.
Interpretation Majority of the marketing executive are male.
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A Study on Sales Promotion
Graph 1 Sex of the Marketing Executives
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A Study on Sales Promotion
Table No. 2 Table representing the pricing of products Prices High Reasonable Competitive Low Total
No. of Respondents ─ 16 14 ─ 30
Percentage ─ 54% 46% ─ 100%
Analysis 54% of the respondents are of the opinion that the products are reasonable. 46% of the respondents are of the opinion that the prices of the products are competitive. None of the respondents feel that the prices of the products are either high or low.
Interpretation Majority of the respondents opine that the prices of the products are reasonable. The prices of the products are reasonable though they are competitive.
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A Study on Sales Promotion
Graph 2 Pricing of Products
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A Study on Sales Promotion
Table No. 3 Table representing the major competitors of Ferror Dek Pvt. Ltd. with regard to Home furnishing Major Competitor No dominant player Godrej Trident Inter Wood Total
No. of Respondents 24 4 2 30
Percentage 80 13 7 100
Analysis Majority of the respondents i.e. 80% opines that there is no dominant player in the market. 13% of the respondents are of the opinion that the Godrej is the major competitor. Trident Inter wood is considered as the major competitor by 7% of the respondents.
Interpretation Though brand names like Godrej and Trident Inter Wood came into the picture but the fact reveals that there is no dominant player in the market. So everyone is competing with each other. Page 46
A Study on Sales Promotion
Graph 3 Major Competitors
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A Study on Sales Promotion
Table No. 4 Table representing the competitor’s strength Strength Quality Brand Image Pricing Promotional Activities Total
No. of Respondents ─ 24 ─ 6 30
Percentage ─ 80 ─ 20 100
Analysis 80% of the respondents are of the opinion that the competitor’s strength is brand image. 20% of the respondents opine that promotional activities are the strength of the competitors. None of the respondents feel that quality and pricing are the strength of the competitors.
Interpretation Majority of the respondents opines that brand image is the strength of the competitors.
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A Study on Sales Promotion
Graph 4 The Competitor’s Strength
Page 49
A Study on Sales Promotion
Table No. 5 Table representing the quality of the products of Ferror dek with respect to other competitors Rating Good Very good Fair Poor Total
No. of Respondents 17 13 ─ ─ 30
Percentage 57 43 ─ ─ 100
Analysis Majority of the respondents i.e. 57% are of the opinion that the products are of good quality with respect to other competitors. 43% of the respondents opine that the products are of very good quality with respect to the other competitors. None of the respondents are of the opinion that the products are of fair or poor quality with respect to other competitors.
Interpretation Majority of the respondents is of the opinion that the products are of good quality and is at par with other competitors having brand names.
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A Study on Sales Promotion
Graph 5 Quality of the products of Ferror dek with respect to other competitors
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A Study on Sales Promotion
Table No. 6 Table representing kind of products sold more per month Products Modular kitchen Modular kitchen and Wardrobe Total
No. of Respondents 27 3
Percentage 90 10
30
100
Analysis 90% of the respondents are of the opinion that modular kitchens are sold more per month. 10% of the respondents are of the opinion that modular kitchen and wardrobes are sold more per month.
Interpretation Majority of the respondents is of the opinion that modular kitchens are sold more per month.
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Graph 6 Kinds of products sold more per month
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A Study on Sales Promotion
Table No. 7 Table representing the merits of the products of Ferror dek that differentiates it from others Merits Reasonable price Quality Customized product Finishing Total
No. of Respondents 10 7 10 3 30
Percentage 33 24 33 10 100
Analysis 33% of the respondents are of the opinion that reasonable pricing and a customized product differentiates the products of Ferror dek from that of others. 24% of the respondents are of the opinion that quality is the differentiating factor. 10% of the respondents are of the opinion that finishing is the differentiating factor.
Interpretation Reasonable pricing and customized products differentiates the products of Feror dek from that of others.
Page 54
A Study on Sales Promotion In fact, all the merits such as reasonable pricing, customized products, quality and finishing contributes in differentiating the products from others.
Graph 7 Merits that differentiates the products of Ferror dek Pvt. Ltd.
12
10
8
10
10
7 Reasonable price
6
Quality Customized products
4
3
Finishing
2
0 No. of Respondents
Page 55
A Study on Sales Promotion
Table No. 8 Table representing the factors which play a major role in demand generation Factors
Ratings 5
4
3
2
1
Price of the product
4
3
0
1
1
Awareness about the product Delivery of the product ordered Presentation about the product Design of the product
3
1
0
4
1
1
0
5
1
2
0
2
0
3
4
1
3
4
0
1
5 - Very important, 4 - Important, 3 - Makes little difference, 2 - Not important, 1 – Does not make any difference.
Analysis Price of the product gets the maximum of 5 rating. Design of the product and the price of the product get the maximum of 4 rating. Delivery of the product ordered gets the maximum of 3 ratings. Awareness about the product gets the maximum of 2 rating.
Page 56
A Study on Sales Promotion Presentation about the product gets the maximum of 1 rating.
Interpretation Price of the product plays a major role in the demand generation. Design of the product plays an important role in demand generation. Delivery time of the product ordered can make a little difference in demand generation.
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A Study on Sales Promotion
Graph 8 Factors playing a major role in demand generation
6
5
5
4
4
4
4 Price of the product
3
3
3
3
Awarenessabout the product Delivery of the product ordered
2
2
1
3
1
1 1
00
0 1
0 2
Presentation about the product
2
0
0 3
1
Design of the product
1
0 4
5
Page 58
A Study on Sales Promotion
Table No. 9 Table representing the promotion of the products of Ferror dek Pvt. Ltd. Promotions Paper insertion Telemarketing Display stalls Participating in exhibition Direct mail Presentations Showrooms Total
No. of Respondents 7 10 ─ 10
Percentage 24 33 ─ 33
─ ─ 3 30
─ ─ 10 100
Analysis 24% of the respondents are of the opinion that paper insertions are used as promotion of the product. 33% of the respondents opine that telemarketing is the means of promotion of the products. 33% of the respondents feel that participating in exhibition has promoted the product. 10% of the respondents are of the opinion that showrooms are used as promotion of the product.
Interpretation Page 59
A Study on Sales Promotion The company adopts a variety of promotional methods such as paper insertion, telemarketing, display stalls, participating in exhibition, direct mail, presentations and showrooms.
Graph 9 Methods of promoting the products
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A Study on Sales Promotion
Table No. 10 Table representing the discount if given on repeat purchase Discounts Given Yes No Total
No. of Respondents 27 3 30
Percentage 90 10 100
Analysis 90% of the respondents are of the opinion that the discount is given on repeat purchase. 10% of the respondents are of the opinion that discounts are not given on repeat purchase.
Interpretation Majority of the respondents is of the opinion that discounts are given on repeat purchase.
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A Study on Sales Promotion
Graph 10 Discounts given on repeat purchase
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A Study on Sales Promotion
Table No. 11 Table representing the percentage of discounts given on repeat purchase Percentage of Discount 2 – 5% 6 – 10% 11 – 15% 16 – 20% None Total
No. of Respondent
Percentage
20 5 ─ ─ 5 30
66 17 ─ ─ 17 100
Analysis 66% of the respondents are of the opinion that 2-5% discount is given on repeat purchase. 17% of the respondents opine that 6-10% of discount is given on repeat purchase. 17% of the respondents are of the opinion that no discount is given on repeat purchase.
Interpretation Majority of the respondents are of the opinion that 2-5% discount is given on repeat purchase.
Page 63
A Study on Sales Promotion The company does not adhere to any stringent norm while giving discount on repeat purchase as there is difference of opinion among the respondents.
Graph 11 Percentage of discount given on repeat purchase
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A Study on Sales Promotion
Table No. 12 Table representing the way of marketing of the products Way Direct marketing (Showroom) Retailers Dealers All of the above Total
No. of Respondents 30
Percentage 100
─ ─ ─ 30
─ ─ ─ 100
Analysis 100% of the respondents are of the opinion that the marketing of products are through direct marketing.
Interpretation The products are marketed through direct marketing and dealers and retailers are not involved in the marketing process.
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A Study on Sales Promotion
Graph 12 The way of marketing of the products
35 30
30
25 Direct marketing
20
Retailers 15
Dealers All of the above
10 5 0
0
0
0
No. of Respondents
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A Study on Sales Promotion
Table No. 13 Table representing the target consumers Target Upper class Middle class Lower class Total
No. of Respondents 27 3 ─ 30
Percentage 90 10 ─ 100%
Analysis 90% the target customers are from upper class. 10% of the target customers are from middle class.
Interpretation The target consumers are the upper class and the middle class.
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A Study on Sales Promotion
Graph 13 The target consumers
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A Study on Sales Promotion
Table No. 14 Table representing the kind of incentives received by the employee Kind of incentives Commission Schemes Free gifts Recognition Nothing at present Total
No. of Respondents ─ ─ ─ 17 13 30
Percentage ─ ─ ─ 57 43 100
Analysis 100% of the respondents are of the opinion that no incentives are given at present.
Interpretation No incentives are given to the marketing personnel at present.
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Graph 14 Kind of incentives received by the marketing personnel
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A Study on Sales Promotion
CHAPTER – 5 SUMMARY OF FINDINGS AND CONCLISION
A Summary of Findings: The finding can be grouped together into two broad categories such as;
Specific Findings: This is pertaining to the objectives of the study.
General Findings: This is with regard to the market dynamics and visits made by the researcher to companies having almost similar products profile.
Specific Findings: 1. The company adopts a variety of promotional methods such as paper insertion, telemarketing, display stalls, participating in exhibitions, direct mail, presentations and showrooms.
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A Study on Sales Promotion 2. Though brand names like Godrej and Trident Inter Wood came into the picture but the fact reveals that there is no dominant player in the market. So every player is vying with each other to capture a larger pie in the markets.
3. Transparency is maintained at the levels of the organization.
4. The products are marketed through direct marketing (showroom) and dealers are not involved in the marketing process so far.
5. The activities carried out by each and every department of the organization is systematic.
General Findings: 1.Foreign companies can invest up to 100% in most of the manufacturing industries in India, including furniture.
2.With the vast array of modular option available in market, the consumer isn’t really strapped for choice.
3.Italian manufacturers have now entered the Indian markets. Moreover, furniture made from Asian Teak Wood which is available in the rich rain forests of Malaysia is flooded in the Indian market. In a nutshell, this means to say that the competition is very intense.
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4.Many branded companies outsource the products because of which the delivery time of the product ordered is stretched. In this respect, Ferror Dek has an added advantage.
5.With respect to the foil, Ferror Dek offers a wide range of colors. This gives it an edge over the others.
6.“Quality never comes cheap”. This is true but at the same time, it is also true that quality can come at a reasonable price. With regard to the quality, products of Ferror Dek are at par with the other players having brand names and at the same time the products are reasonable priced.
7.With regard to home furnishings, most of the companies have standardized products but the products of Ferror Dek are customized. This can be rightly marked as the strength of the company.
8. Majority of the marketing executives are male.
9. The prices of the products are reasonable though they are competitive.
10. The products are of good quality and are at par with other competitors having brand names.
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A Study on Sales Promotion 11. Modular kitchens are sold more per month. So, this area needs greater focus.
12. Reasonable pricing, customized products, quality and finishing contributes in differentiating the products of the organization from that of the others.
13. Apart from price of the product, design and delivery time of the product ordered play a crucial role in triggering out demand generation of the product.
14. Discount is given on repeat purchase.
15. The company does not adhere to stringent norm while giving discount on repeat purchase.
16. The target consumers are the elite and upper middle class.
17. No incentives are given by the company to its marketing personnel at present.
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CONCLUSION “No man has the right to dictate what other men should perceive, create or produce, but all should be encouraged to reveal themselves, their perceptions and emotions and builds confidence in their creative spirit!”
This inspiring thought of Ansell Adams is well appreciated by new style marketing organizations which understand that “boxes and lines” structures can’t drive value in fast moving environments. No doubt, Ferror Dek Pvt. Ltd. is one of them because they believe in teamwork. Today, the need of the Indian consumer evolves beyond “roti, kapada aur makaan”. The game in the new-breed furniture industry is no longer furnishing. It is about “home dressing”. To capture opportunities continually, the company must have a continual flow of ideas. Transforming a pipeline full of ideas into a value – generating portfolio of products and services is hard. Herein, lays the importance of co-ordination.
A home is not just a living space but one’s statement of individuality to the world. Big or small, it’s all about adding own touch to one’s home to make it unique – a perfect blend of form and function. With the ever increasing number of house-hold items, a highly dynamic and always on the move job profiles, it is crucial for people to employ efficient storage spaces that are affordable to purchase. The modular kitchen of today is the epitome of Page 75
A Study on Sales Promotion functionality and multi-purpose aspects. With the rise in income and the infiltration of western luxury goods have created a cultural shift towards materialism and consumerism. Ferror Dek with its unique strength provides customer solution that offers the perfect balance of quality and economy.
In today’s crowded market place, where products and services are touting themselves to be the best, it is vital to stand out in the crowd. From the various channels of advertising, point of sale displays and how the employees are relating to the customers. It is important for Ferror Dek Pvt. Ltd. to establish and reinforce an unmistakable brand and corporate identity in all channels of fickle minded consumers. Herein, lays the importance of the Japanese proverb which says – “Thinking without action is a daydream and action without thinking is a nightmare”.
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CHAPTER – 6 RECOMMENDATIONS AND SUGGESTIONS This chapter lists the various recommendations and suggestions with respect to the findings and in congruence with the objectives of the study.
Recommendations: 1.It’s overwhelming to find out that the organization works in a systematic manner. A blend of co-ordination will definitely enhance the performance of the company.
2.Quality clubbed with reasonable pricing and quick delivery made the product of the company stand apart. The marketing campaign should focus on this aspect and made according to its line.
3.The strength of the company is its customized products. This very fact must be highlighted in the marketing campaign.
4.As the products are reasonably priced, the ambit of the target consumers should be stretched so that middle class consumers also fit into it.
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A Study on Sales Promotion 5.The company must stick to a norm while giving discounts on repeat purchase. This will certainly help in sales promotion in order to create repeat purchase.
6.In order to have a rapid market access, the company can include dealers, if not retailers at the moment.
7.The company should focus the marketing strategies on Modular kitchens in the home furnishing arena as it is moving in the market rapidly.
8.The company can introduce some reward schemes so that a person is benefited after the fulfillment and over achievement of the target. This is predominantly done to motivate the sales force and enhance their performance.
9.Other than emphasis on design, craftsmanship and product quality, the company’s unique strength also lies in its capability as a fully – integrated furniture manufacturer. This fact should be highlighted during the ment campaigns.
10. The need of the hour is aggressive marketing.
Suggestions: Page 78
A Study on Sales Promotion
1.Everyone is aware of the growth in wealth and change in lifestyle among Bangalore’s novae riche. So the marketing campaign should be designed to woo the customers.
2.The company should explore all possible ways in order to aggressively sell its products. So, the company can itself in Furniture.co.in as it is India’s biggest online B2B plan with largest virtual furniture directory.
3.The construction industry is in boom. In order to tap the potential market, the Company can in a magazine named ‘Builders Grid’. This will help in showcasing the products of the magazine. This can add an extra spice to sales.
4.Feng Shui items are gaining prominence right at the moment. Feng Shui describes the wood personality as one possessing good decision making skills, idealism, imagination, comion and the ability to create change. The fact can help in emotional marketing of the product and also combat competition from Godrej whose modular kitchens are made of steel.
5.In today’s crowed market place in order to increase the size of the pie, the Company can adopt innovative promotional strategies. One of them
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A Study on Sales Promotion can be suggested as ‘Dream House’ road shows. It will help in creating and reinforcing the Company’s identity in the minds of the consumer.
6.In order to be extra ordinary, the Company has to walk the extra mile. A method named ‘Experimental Marketing’ can be adopted by the Company wherein the prospective consumers can be invited to visit the showroom and touch and feel the products.
7.Since the competition is intense, so there should be some value addition so as to make the Company stand apart in the market. One such way is to improvise the customer service.
8.Consumer is the king in the market. This fact should be deeply rooted in the minds of the employees. The Company can adopt some ways to listen to the customer’s which should be noted in writing so that it will help in continual improvement and make the company to be in the right track always. Moreover, a sense of involvement will be felt by the customers whish can give the company a cutting edge.
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A Study on Sales Promotion
APPENDICES AND ANNEXURES A copy of the questionnaire, some eye sizzlers showcasing the products of the company and paper insertion are enclosed herewith.
QUESTIONNAIRE 1) Name:
2) Address:
3) Designation:
4) Sex: a) Male b) Female
5) Type of products dealing with a) Home furnishing b) Office furnishing
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A Study on Sales Promotion 6) How are you priced? a) High b) Reasonable c) Competitive d) Low
7) Who is your major competitor?
8) What is your competitor’s strength? / What makes you ahead of him? a) Quality b) Brand image c) Pricing d) Promotional activities
9) With respect to other competitors how do you rate yourself in of quality? a) Good b) Very good c) Fair d) Poor
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A Study on Sales Promotion 10)Which products are sold more per week/per month?
11) What specific merits do you think will differentiate your products from others? a) Reasonable price b) Quality c) Customized products d) Finishing
12)How important do you feel that the following factors play a major role in demand generation on a scale of 1-5? a) Price of the product b) Awareness about the product c) Delivery time of the product ordered d) Presentation of the product e) Design of the product
5- Very important 4- Important 3- Makes little differences 2- Not important 1- Does not make any difference
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A Study on Sales Promotion 13)How do you promote your products? a) Paper insertion b) Telemarketing c) Display stalls d) Participating in Exhibition e) Direct mail f) Presentations g) Showrooms h) All of the above
14) A) Do you give any discount on repeat purchase? a) Yes b) No B) If yes how much discount do you give? a) 2-5% b) 6-10% c) 11-15% d) 16-20% e) None
15)How are you marketing your products? a) Direct marketing b) Retailers c) Dealers d) All the above Page 84
A Study on Sales Promotion 16)Who are your target consumers? a) Elite class and upper middle class b) Middle class c) Lower middle class d) Corporate
17)What kind of incentives are you getting? a) Commission b) Schemes c) Free gifts d) Recognition e) Nothing at present
THANK YOU!
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