INTRODUCTION

Sales promotion offers a direct inducement to act providing extra worth over

and above what is built into the product at its normal price. These temporary

inducements are offered usually at a time and place where the buying decision is

made. Sales promotion is very common in the current competitive market conditions.

They are increasing at fast pace. These promotions are direct inducements. In spite of

directness sales promotions are fairly complicated and a rich tool of marketing with

innumerable creative possibilities limited only by the imagination of promotion

planners. The effectiveness of the right sales promotion tool for the right product on

the right target market will directly impact on sales performance. Consumers are

making purchase decision daily which are often influenced by various factors; the

product price is often the most significant consideration in any purchase. One of the

common ways for marketers to compete is by making offers.

A sales promotion strategy is an activity that is designed to help boost the

sales of a product or service. This can be done through an advertising campaign,

public relation activities, a free sampling campaign, a free gift campaign, a trading

stamps campaign, through temporary price cuts, and through door-to-door sales,

telemarketing, personal sales letters, and e-mails. The importance of a sales promotion

strategy cannot be underestimated. This is because sales promotion strategy is

important to a business its sales. Sales are the lifeblood of a business, without sales

there would be no business in the first place; therefore it is very important if a

business wants to succeed, it should have a sales promotion strategy in mind.

1
 STATEMENT OF PROBLEM

The study purpose is to find out the sales x activities in an organization. Sales

promotion is implemented to attract new consumers, to counteract competition and to

take advantage of opportunities that are revealed by market research. Hence the study

is entitled as sales promotional activities and the aim is to study the buying behavior

of consumers.

OBJECTIVE OF THE STUDY

General objective

• To compare the effectiveness of sales promotional activities in different

organizations

Specific Objectives

• To know different Medias used for sales promotional activities by

1. KPL oil mills (P) Ltd, Irinjalakuda

2. KSE Ltd, Irinjalakuda

3. Eastern spices, Edapilly

• To study the buying behavior of consumers

• To find out the role of sales promotion in boosting the sales of companies

2
 RESEARCH METHODOLOGY

The study is based on both primary and secondary data. Questionnaire and

discussion with employees have been used as the primary data. Secondary data are

collected from the company files, websites and other publications. The internet and

organization magazines have been used as secondary data.

SCOPE OF THE STUDY

The study is significant from both application perspective management as well

aa from an academicians view point. The further research could be in the area of

impact of sales promotion in the firm. This knowledge might be useful for marketers

in judiciously implementing marketing plans, especially sales promotions, both in the

long as well as short term perspective.

For academician, the study will give more insight into the dimensions of

Consumer Based Brand Equity and its chemistry with sales promotions, price and

premium promotions.

LIMITATIONS OF THE STUDY

1. Data are collected when the respondents were engaged in work so

various situational factors might have influenced while collecting the

data.

2. The study is undertaking within a short span of one month.

3. Lack of co-operation from certain employees due to tight schedule.

4. Some of the respondents wouldn’t have given accurate information.

3
 PERIOD OF THE STUDY

This project work has been done as a part of BBA program which was

conducted for 1 month.

4
 KPL OIL MILLS (IRINJALAKUDA)

The coconut oil industry of Kerala, KPL Oil Mills (P) Ltd. was founded well

back in 1941 by the envisioned industrialist late K.p Lonappan. Started as a rice and

coconut oil mill, constituted into a firm with the founder of late K.P Lonappan and his

six sons as partners in the year 1941 at Irinjalakuda in the Thrissur District of Kerala.

The management has been able to add more perfection to the systems by bringing in

standardization under ISO 9001:2000 certifications in the year 2004.The management

of the company in the hands of chairman; Mr. K. J. Pius. There is a board of directors

consisting of 12 members these are the persons who are responsible for taking

decisions and management of the organization.

KPL have always been striving to provide their customers with quality

products. That helps them to live healthy life. KPL is committed to offer total care

solution to each customer. KPL sudhi coconut oil, KPL shudhi coconut milk powder,

KPL sudhi plus coconut oil, KPL sudhi gingelly oil, KPL shudhi sunflower oil are the

products provide by the company. The KPL brand oil is available in different

consumer packs, also packed in tins for export purposes. 1 liter and half liter are

available in HDPF bottles, per bottle, pouch and jar, 250 ml and pouch. The main

competitors of KPL are KLF nirmal, Parachute and Kerafed.

5
 KSE LTD (IRINJALAKUDA)

It was in 25th September 1963, registered as a company named Kerala Solvent

Extraction Limited. Now known as KSE Ltd, setting up the solvent extraction plant in

Kerala. The company started a solvent extraction plant with a production capacity of

40mts per day. In 1972 and 1976, a new ready mixed cattle feed plant with a

production capacity of 50mts started in Irinjalakuda.

It was promoted by K.S FRANCIS, M.C PAUL, T.O PAUL and A.P

GEORGE. The main object of the company was extraction of oils, rice brain oil, and

de oiled cakes. In 1979 production capacity of cattle feed plant in Irinjalakuda

increased to 60mts per day. The next year 1980 solvent extraction plant capacity

increased to 60mts per day. A production capacity of 120mts per day fully automatic

new cattle feed plant started in Irinjalakuda in 1983. The company undertook to setup

100 TDP solvent extraction plant and 150 TPD cattle feed plant at Swaminathapuram

in 1987. 40,000 no equity shares issued in prop 1.2 only 19,718 shares taken up in

1987. That time the production on capacity of cattle feed plant in Irinjalakuda

increased to 180mts per day. In 19888 a new cattle feed plant with a production

capacity of 100mts per day started in Swaminathapuram, Tamil Nadu. Production

capacity of cattle feed plant in Swaminathapuram unit increased to 129mts per day

and 1989 a new solvent extraction plant commissioned at Swaminathapuram Tamil

Nadu.The company started production and marketing of pasteurized milk and milk

products from Konikara and Thalayath. As per the offer to the public and company

opened the KSE Park and Information Centre.

6
 EASTERN SPICES (EDAPILLY)

Eastern condiments Pvt. Ltd. is a flagship company of the Eastern Group. The

eastern group was founded by late Mr. M.E. Meeran. By starting a wholesale

provision goods store at a small town in Idukki district, named Adimaly, in 1969, he

paved the foundation for a business empire. It was named as” Eastern Trading

Company”. As being a milestone in the Eastern group’s progress, Eastern Coffee and

Curry Powders, established in 1983 as a pioneer in the state to produce packed curry

powders, coffee powder and food products. Eastern condiments were established

in1991, as an expanded form of Eastern Coffee and Curry Powder.

Today the company has grown to one among the favorites in India. Eastern

condiments Pvt. LTD. is a well-established name as Kerala’s largest manufacturer of

condiments and one of the leading brands among South India. The company exports

its products to Saudi Arabia and the United Arab Emirates for the past few years and

now the company exports its products to various parts of the world like Middle East,

the U.K, The U.S.A, Australia, Germany etc.

The production at the initial period was only 100kg per day. In those days, the

process of production was enhanced from grinding to pulverizing and so the

production could also help to preserve the natural taste of the powder. As Eastern

Curry Powder Unit could not meet the increased demand, establishment of Eastern

Condiments with a production capacity of 20 tons a day was absolutely necessary.

From the initial production capacity of 100kg per day, now it can produce around 78

tons per day.

7
 Review of Literature

Studies on Impact of Promotion

Studies relating to the impact of consumer sales promotion on consumer

behavior, sales, profit, market share, etc. are included in this section. These studies

provide guidelines to managers on various issues such as the appropriate tools that

may be used for achieving a specific marketing objective, improve their sales

promotion effectiveness and so on.

Vecchio, Del, Devon et.al. (2006) report the results of the study, which

examined the effect of sales promotion on brand preference through Meta-analysis.

Results of 51 studies had been integrated. As per the study sales promotions do not

affect post promotion brand preferences in general. But depending upon

characteristics of sales promotion and the promoted product, promotion can either

increase or decrease preference for a brand.

Ndubisi, Oly, Nelson and Moi, Tung, Chiew (2005) in their study evaluated

the impact of sales promotional tools, namely coupon, price, discount, free sample,

bonus pack, and in-store display, on product trial and repurchase behavior of

consumers. The moderation role of fear of losing face on the relationship between the

sales promotional tools and product trial was also examined. The results of study

show that price discounts, free samples, bonus packs, and in-store display are

associated with product trial. Coupon does not have any significant effect on product

trial. Trial determines repurchase behavior and also mediates in the relationship

8
between sales promotions and repurchase. Fear of losing face significantly moderates

the relationship between in-store display and product trial.

Kumar, V. and Swami Nathan, Srinivasan (2005) studied the impact of

coupons on brand sale and how that impact decays over the life of the coupon. The

authors use an econometric model to demonstrate the coupon effect in terms of

equivalent price reduction, account for coupon effect over time, allow inference of

coupon effects when retailers decide to double or triple the coupon value and provide

both self-coupon and cross-coupon elasticity’s at different levels of aggregation.

Results indicate that the effect of doubling the face value of coupon result in more

than a proportionate increase in elasticity and both self and cross- coupon elasticity’s

are much smaller in magnitude than the average self-cross price elasticity.

Laroche, Michel et.al. (2005) studied the effect of coupons on consumer's

brand categorization and choice process using fast-food restaurants in China. Results

suggest that there are both direct and cross-advertising effects i.e., the presence of a

coupon for a focal brand has an impact on consumer's attitudes and intentions towards

that brand.

Lewis, Michel (2004) developed an approach for simultaneous measurement

of the influence of a dynamic loyalty programed and more traditional short- term

promotions. They argue that the loyalty programed under examination successfully

alter behavior and increase retention rates. E-mail based coupons, shipping fee and

general price levels all significantly affect customers purchase decisions.

Anderson, T. Eric and Simester LDuncan (2004) investigated how the depth of

a current price promotion affect future purchasing of first time and established

customers based on three large scale field experiments on durable goods sold through

9
a direct male catalogue. The findings reveal different effect for first-time and

established customers. Deeper price discounts in the current period increased future

purchases by the first time customers (a positive long-run effect) but reduced future

purchases by established customers (a negative long- run effect)

Baohong et.al. (2003) reviewed various studies relating to the impact of

promotion on brand switching and found that these studies used choice models,

especially logit. According to these studies promotion has a strong effect on brand

switching. The authors show that logit choice model can substantially over estimate

brand switching because they do not take in to account the rational adjustments that

customers make to take advantage of promotion. Logit models do not take in to

account stock piling and deceleration strategies. They use dynamic rational model and

compare it with a logit model. The result was that logit models over estimate brand

switching, that nested logit helps address the problem but not completely and that

dynamic rational model provides the most accurate estimate of switching.

Swait, Jofie and Erden, Tulin (2002) in their study focused on a particular

aspect of marketing mix consistency overtime for frequently purchased packaged

consumer goods, the impact of temporal consistency of store promotions as well as

the availability of the product on the shelf; on consumer product evaluations (utilities)

and choices. The empirical results, based on fabric softener panel data, indicate that

true insert and availability consistency increase systematic utility in a statistically

significant way over and above the positive effects that displays and feature have on

choice.

Soman, Dilip and Gourville, T. John (2001) investigated how and why price

bundling affect the consumption of a service based product such as a sporting event or

10
a theatre performance. The results of the study showed that price bundling leads to a

decoupling of the sunk cost and pending benefits of a transaction there by reducing

the likelihood of downstream consumption.

Smith, F. Michael and Sinha, Indrajit (2000) examined the relationship

between different types of promotions (straight price promotion, extra-product or

volume promotion and mixed promotion) across four supermarket product categories

controlling separately for the effect of two category-based moderating factors viz.

product stock-up characteristics and price level. Results showed that a majority of

consumers preferred mixed promotions; type of promotions does influence store

preference (with price and volume promotions having the greatest influence).

Consumers generally preferred price promotion for higher priced product categories

and they preferred volume promotions for lower priced categories.

11
 THEORETICAL FRAMEWORK

Meaning

Sales promotion is the process of persuading a potential customer to buy the

product. Sales promotion is designed to be used as a short-term tactic to boost sales –

it is rarely suitable as a method of building long-term customer loyalty. Some sales

promotions are aimed at consumers. Others are targeted at intermediaries and at the

firm's sales force.

Definition

American Marketing Association says that those activities that supplement

both personal and selling and advertising coordinate them and help them to make

more effective.

According to Philip Kotler, “sales promotion consist of collection of diverse

incentive tools mostly for short term designed to stimulate quicker and/or greater

purchase of a particular product by consumer and traders.”

Importance of sales promotion

 The basic purpose of promotion is to disseminate information to the potential

customers.

 Sellers use incentive-type promotions to attract new customers, to reward

loyal customers and to increase the repurchase rates of occasional users.

 To encourage the customers to try a new product.

12
  Sales promotions yield faster responses in sales than advertising.

 Sales promotion is considered as a special selling effort to accelerate sales.

 Brand switchers are primarily looking for low price, good value and

premiums. Sales promotions are likely to turn them into loyal brand users.

 It helps to defeat competitors’ promotional activities.

 Sales promotion increase sales volume and reduces the unit cost of production

which results in the reduction of product price.

 Consumers get new products because the manufacturers are encouraged to

introduce new products in the market with the help of sales promotion.

Advantages of sales promotion

 When compared with advertising and personal selling, sales promotional

activities are less expensive

 It enables both the dealers and the consumers to enjoy certain tangible

benefits, e.g., free samples, gifts, price reductions, etc.

 Advertising approaches the buyer indirectly and personal selling approaches

the buyer directly. Whereas sales promotional activities involve both direct

and indirect approaches.

 Sales promotion helps to supplement and support both advertising and

personal selling. No business can totally rely on advertising and personal

selling alone.

 Once satisfied with the quality of the sample product, consumers become more

confident about buying a new product.

 During promotional campaigns offer their products at discounted

13
Disadvantages of sales promotion

 The number of sales promotional activities to be performed are too many,

distribution of free samples and gifts, making such offers as price off and

money refund, holding contests, participating in trade

 Sales promotion, by itself, cannot produce results. It can only supplement

advertising and personal selling which are vital for a business

 Sales promotion is non-recurrent in nature. It cannot, therefore, be used

continuously. The marketer has to select the most appropriate tool of sales

promotion and the same shall be introduced at the right time.

 It involves additional expenditure on the part of the business. Apart from the

heavy expenditure to be incurred on advertisement and personal selling, the

business may have to spend further on sales promotion. This leads to an

overall increase in promotional costs.

 Consumers may postpone their purchase decisions in anticipation of incentives

and discounts from the dealers and companies.

 Consumers may suspect the quality of the product. There is a belief among the

customers that incentives are given for substandard products and old stock.

Sales promotion methods

1. Consumer promotion techniques

2. Trade promotion techniques and

3. Sales force promotion techniques

14
1) Consumer promotion techniques

The widely followed consumer oriented sales promotion techniques are as

follows;

1) Couponing
It is a scheme of distributing discount coupons to the customers. Coupons

are paper offers that are available in magazines and newspaper, may be

downloaded from the internet or are available at the point-of-purchase and

entitle the recipient to a reduction in price for a product or service.

2) Sampling

It refers to offering free product samples to consumers for trail and use.

Sampling provides the consumer with the opportunity to use the product

by giving a free small portion of the product for the consumer to test.

3) Rebates

They are money-back offers requiring a buyer to mail in a form requesting

the money back from the manufacturer rather than from the retailer.

4) Gifts/Free offer

In this scheme customers are entitled to get gifts while purchasing a brand.

5) Price cuts/Price-off offers

It refers to a reduction in the regular price of a brand for a short span of

time.

6) Quantity-off offers

It refers to offering more quantity of a product at the regular price.

15
 7) Consumer contests and lucky draws

In the case of contests, consumers are invited to participate in competitors

and the winners are given special gifts. Lucky draw is a play based on the

luck factor.

2) Trade promotion techniques

1) Buying allowance

Special allowance offered to dealers to motivate them to purchase a new

product.

2) Buy back allowance

It is an agreed sum of money offered by the firm if the dealer returns the

product. This is to encourage re-stocking (fresh purchase) b. This is to

encourage re-stocking (fresh purchase) by the dealers.

3) Merchandise allowances

These allowances are offered to meet the promotional expenses incurred by

a dealer in connection with the sales of a brand. Merchandise allowance

include advertising allowance, display allowance etc.

4) Bulk discount

It refers to reduction in price offered to a dealer for purchasing the product

in large quantities.

5) Gifts, awards and cash prizes

Dealers who have attained success in achieving the target sales fixed by the

company are honored by giving awards, gifts and cash prizes.

16
3. Sales force promotion techniques

1) Bonus to sales force

Sales personnel are issued bonus on the basis of a sales target. Salesman

achieving this target is eligible to get the bonus.

2) Gifts

Salesman will be given gifts for including them to boost the sale of the

product.

3) Sales force meet

Sales force meet will be organized by the companies to educate and train

the salesman to promote the sales of the product.

17
 RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It

gives an idea about various steps adopted by the research in a systematic manner with

an objective to determine various manners.

Population characteristics

Sample was taken from the employees who are working in KPL Oil Mills (P)

Ltd, Irinjalakuda, KSE Ltd, Irinjalakuda, Eastern Spices, Edapilly.

Sample procedure

Sampling may enable more accurate measurement of sample size from the

population universe. In my study I'm using simple random sample. Every individual

in the target population has an equal chance of being part of the sample. A sampling

procedure must reflect the unit of the analysis. In my study I have collected 50

questionnaires from various employees in the company.

Sample size

Sample size consisting of 50 respondents.

Type of data

When working on the methods of data collection we are to understand that

there are two types of data namely

 Primary data
18
  Secondary data

Primary data

Primary data are these which are collected a fresh and for the first time. They

are original data that has been collected specially for the purpose in mind. Primary

data has not been changed; therefore its validity is greater than secondary data.

Secondary data

Secondary data is the data has been already collected by and readily available

from other sources. When we are use statically methods with primary data industry

surveys, information systems and computerized environmental process.

Tools for data collection

There are different tools for data collection such as distributing questionnaire

conducting interviews and by observations.

In my study I need question as well as interview techniques for getting

response from the respondents.

Tools and methods for analysis

In my study simple method is used for analyzing the data.

19
 TABLE: 5.1 Customized marketing strategies effects the growth of the

company in the rural market

Sl. No Opinion Number of Percentage of

respondents respondents
1 Strongly agree 4 14
2 Agree 20 66
3 Neutral 2 6
4 Disagree 4 14
Total 30 100

FIGURE: 5.1

70

60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree

Interpretation

Figure 5.1, 14% of respondents strongly agree that marketing strategies effects

the growth of the company in the rural market, 66% of the respondents agreed to the

fact, 6% of the other respondents have neutral opinion and the remaining 14%

disagree to the fact. So it can concluded that majority of the respondents agreed

marketing strategies effects the growth of the company in rural market.

20
 TABLE: 5.2 Advertising effect the sales figure of the company?

Sl. No Opinion Number of Percentage of

respondents respondents
1 Strongly agree 18 60

2 Agree 6 20

3 Neutral 6 20

4 Disagree 0 0

Total 30 100

FIGURE: 5.2

60

50

40

30

20

10

0
Strongly agree Agree Neitral Disagree

Interpretation

Figure 5.2, it is clear that 60% of the respondents strongly agree that the

advertising has a great effect on the sales of the company, 20% of the respondents

agreed and the remaining 20% have a neutral opinion on the topic. The majority of the

respondents strongly agreed that advertising play an important role in the sales of the

company.

21
 TABLE: 5.3 Heavy investments on packaging effects the sales of the products.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Strongly agree 9 30
2 Agree 7 23
3 Neutral 12 40
4 Disagree 2 7
Total 30 100

FIGURE: 5.3

40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree

Interpretation

Figure 5.3 it is clear that 30% of the respondents strongly agreed to the topic that

heavy investment on packaging effects the sales of the products, 23% of the

respondents agreed, 40% of the respondents have a neutral response to the topic and

the remaining 7% disagreed. So it can be clear that majority of the respondents have

neutral response that heavy investment on packaging effects the sales of the company.

22
 TABLE: 5.4 Distributors and retailers play an important role in the success of the

organization in terms of sales of the products and profits.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Strongly agree 14 47
2 Agree 13 43
3 Neutral 3 10
4 Disagree 0 0
Total 30 100

FIGURE: 5.4

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree

Interpretation

Figure 5.4 it is clear that 47% of the respondents strongly agree to the topic

that distributors and retailers play an important role in the success of an organization,

43% of the respondents agreed, and remaining 10% have a neutral response on the

topic. So it can be concluded that majority of the respondents strongly agree that

distributors and retailers play an important role in the success of an organization.

23
 TABLE: 5.5 The most effective strategies for the promotion of the products.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Wall painting 8 27
2 Customer contact 12 40

3 Van campaign 9 30
4 Event 1 3
management
Total 30 100

FIGURE: 5.5

45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree

Interpretation

Figure 5.5, 27% of the respondents strongly agreed that the most effective

strategy for the promotion to the products in wall painting, 40% of the respondents

voted for customer contact, 30% of tem voted for van campaign and 3% of them

voted for event management. Hence from the table it is clear that customer contact is

the most effective method for promotional strategies.

24
 TABLE: 5.6 Attractive packaging enables customers to buy a product.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Strongly agree 8 27
2 Agree 6 20
3 Neutral 12 40
4 Disagree 4 13
Total 30 100

FIGURE: 5.6

40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree

Interpretation

Figure 5.6 27% of the respondents strongly agreed that attractive packaging

enables customers to buy a product, 20% of respondents agree with the same, 40% of

them have a neutral opinion about the same, 13% of the employees are dissatisfied

with the statement. So it can be concluded that major part of employees has a neutral

opinion on the topic attractive packaging enables customers to buy a product.

25
TABLE: 5.7 Which marketing strategy or schemes dramatically affects the sales of

the products.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Availability 7 23
2 Good advertising 9 30
3 Low price cost 6 20
4 Recommendation 8 27
Total 30 100

FIGURE: 5.7

30
25
20
15
10
5
0

Interpretation

Figure 5.7, 23% of respondents opted availability is the marketing strategy

dramatically affects the sales of product, 30% of them opted good advertising, 20% of

them selected low price cost and the remaining 27% of them voted for

recommendation. So it can be concluded that good advertising mostly effects the sales

of products.

26
 TABLE: 5.8 What is the reason for using more sales promotional activities in
company.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Increasing competition 5 17
2 Easy to measure effects 10 33
3 Standardize products 6 20
4 Need for price factor 9 30
system
Total 30 100

FIGURE: 5.8

35
30
25
20
15
10
5
0
Increasing Easy to Standardize Need non price
competition measure effects products system

Interpretation

Figure 5.8, 17% of respondents opted increasing competition is the reason for

using more sales promotional activities in company, 33% of respondents opted easy to

measure effects, 20% of them voted for standardize product, 30% of them choose

need non price factor system. So it can be concluded that most of them choose easy to

measure effects is the important reason for using more sales promotional activities in

company.

27
 TABLE: 5.9 What is the impact of sales promotion methods in sales of company.
Sl.No Opinion Number of Percentage of
respondents respondents
1 Immediate impact 13 44

2 Delayed impact 10 33

3 Both (1)and(2) 0 0

4 No impact 7 23

Total 30 100

FIGURE: 5.9

Sales

Immediate impact
Delayed impact
Both (1) and (2)
No impact

Interpretation

Figure 5.9, 44% of respondents choose immediate impact on sales promotion

methods in sales in company, 33% of them voted for delayed impact, 23% of them

choose no impact. So it can be concluded that most of them choose immediate impact

on sales promotion methods in sales of company.

28
 TABLE: 5.10 Who is responsible for planning and implementation of sales
promotion schemes in your company.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Top management 15 50

2 Head of sales 10 33
management
3 Territory 5 17
managers
Total 30 100

FIGURE: 5.10

Sales

Top management
Head of sales management
Territory managers

Interpretation

Figure 5.10 50% of them said top management is responsible for planning and

implementation of sales promotion schemes in their company, 33% of them selected

for head of sales managers, 17% of them choose territory managers. So it can be

concluded that majority of them said top management is responsible for the planning

and implementation of sales promotion schemes in their company.

29
 TABLE: 5.11 Which party is more important under sales promotion in increasing

sales.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Wholesaler 8 27
2 Retailer 10 33
3 Salesman 7 23
4 All the above 5 17
Total 30 100

FIGURE: 5.11

35
30
25
20
15
10
5
0
Wholesaler Retailer Salesman All the above

Interpretation

Figure 5.11 27 % of the respondents opted that wholesaler is the important

party under sales promotion in increasing sales,33% of respondents said retailer, 23%

of them said salesman and 17% of them said all the above. So it can be concluded that

most of them agreed that retailer is more important under sales promotion scheme in

increasing sales.

30
 TABLE: 5.12 What reason did you find when sales promotion schemes misfire.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Lack of communication 3 10

2 Lack of proper planning 8 27

3 Poor dealer relationship 10 33

4 Lack of interest 9 30

Total 30 100

FIGURE: 5.12
35
30
25
20
15
10
5
0
Lack of Lack of proper Poor dealer relation Lack of interest
communication planning

Interpretation

Figure 5.12 10% respondents voted for lack of communication when sales

promotion scheme misfire, 27% of them opted for lack of proper planning, 33% of

them opted for poor dealer relationship and 30% of them voted lack of interest. So it

can be concluded that most of them voted for poor dealer relationship is effects the

sales promotion.

31
 TABLE: 5.13 Does management take steps to motivate the salesman for better

performance in your company.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Always 12 40
2 Rarely 6 20
3 Sometimes 9 30
4 Never 3 10
Total 30 100

FIGURE: 5.13

40

30

20

10

0
Always Rarely Sometimes Never

Interpretation

Figure 5.13 40% of respondents said management always take steps to

motivate the salesman for better performance in their company, 20% of respondents

opted rarely, 30% of them opted sometimes and remaining 10% of them opted never.

So it can be concluded that most of them always take steps to motivate salesman for

better performance in the company.

32
 TABLE: 5.14 Are the motivational methods implemented in your company.

Sl. No Opinion Number of Percentage of

respondents respondents
1 Always 14 47

2 Rarely 7 23

3 Sometimes 5 17

4 Never 4 13

Total 30 100

FIGURE: 5.14

50
45
40
35
30
25
20
15
10
5
0
Always Rarely Sometimes Never

Interpretation
Figure 5.14, 47% of the respondents agreed that always they implemented to

take motivational methods in company, 23% of respondents agreed rarely, 17% of

respondents voted for sometimes and the remaining 13% said that never. So it can be

concluded that the most of them agreed that the company always implement

motivational method in the company.

33
TABLE: 5.15 Which promotional method you makes the consumer buy your
products.

Sl No Opinion Number of Percentage of

respondents respondents
1 Advertising 9 30
2 Sales promotion 12 40
3 Publicity by word 4 13
4 All the above 5 17
Total 30 100

FIGURE: 5.15

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Advertising Sales promotion Publicity by word All of the above

Interpretation
Figure 5.15 30% of respondents opted that advertising is the promotion

method used to make customers to buy products, 40% of respondents agreed sales

promotion, 13% of them agreed publicity by word, 17% of respondents agreed all of

the above. So it can be concluded that most of them agreed sales promotion is the

method used to increase the sales of your products.

34
 TABLE: 5.16 Which type of promotional activities attract customers.
Sl No Opinion Number of Percentage of
respondents respondents
1 Discount 8 27

2 Extra offer 9 30

3 1+1 offer 7 23

4 Advertisement 6 20

Total 30 100

FIGURE: 5.16

35%

30%

25%

20%

15%

10%

5%

0%
Discounts Extra offer 1+1 offer Advertisement

Interpretation
Figure 5.16 shows that 27% of respondent’s opted discounts, 30% of

employee selected extra offer, 23% of them opted for 1+1 offer and the remaining

20% selected for advertisement. So it can be concluded that extra offer is the most

used promotional activities to attract customers.

35
 TABLE: 5.17 The advice of the retailer and wholesaler effects your customers
buying decision.

Sl Opinion Number of Percentage of

No respondents respondents
1 Strongly agree 12 40
2 Agree 7 23
3 Neutral 6 20
4 Disagree 5 17
Total 30 100

FIGURE: 5.17

Stongly agree
Agree
Neutral
Disagree

Interpretation
Figure 5.17 40% of respondents strongly agreed that advice of the retailer and

wholesaler effects customer buying decision, 23% of them agreed with the same, 20%

of them have a neutral opinion about the same,47% of respondents disagreed with the

statement so it can be concluded most of them strongly agreed that the advice of the

retailer and wholesaler effects your customer buying decision.

36
 TABLE: 5.18 Does the displays and promotional offers informed by the firm
attract your customers.

Sl No Opinion Number of Percentage of

respondents respondents
1 Yes 8 27
2 No 9 30
3 To some extend 6 20
4 Can’t say 7 23
Total 30 100

FIGURE: 5.18

35%

30%

25%

20%

15%

10%

5%

0%
Yes No To some extend Can't say

Interpretation
Figure 5.18 27% of them agree that displays and promotional offers informed

by the firm attract their customers, but 30% of them doesn’t agree to the fact, 20% of

them says to some extent, 23% of them can’t say about to fact. So it can be concluded

that most of them says displays and promotional offers informed by the firm doesn’t

attract their customers.

37
 TABLE: 5.19 The consumer choose low price products over high price products.
Sl No Opinion Number of Percentage of
respondents respondents
1 Strongly agree 12 40
2 Agree 8 27
3 Neutral 4 13
4 Disagree 6 20
Total 30 100

FIGURE: 5.19

Strongly agree
Agree
Neutral
Disagree

Interpretation
Figure 5.19 40% of them strongly agree that consumer choose low price

product over high price products, 27% of them agree to the fact, 13% of them have

neutral opinion, 20% of them disagree with the same. So it can be concluded that

most of them strongly agree the customer choose low price product over high price

products.

38
 TABLE: 5.20 Retailer in rural area effects the purchasing decision of rural
consumers.

Sl Opinion Number of Percentage of

No respondents respondents
1 Strongly agree 5 17
2 Agree 3 10
3 Neutral 13 43
4 Disagree 9 30
Total 30 100

FIGURE: 5.20

Strongly agree
Agree
Neutral
Disagree

Interpretation
Figure 5.20 17% of them strongly agree that retailer in rural area effects the

purchasing decision of rural consumer, 10% of them agree to the fact, 43% of them

said neutral opinion to the fact, 30% of them disagrees to the fact. So it can be

concluded that most of them neither agree nor disagree the retailer in rural area effects

the purchasing decision of rural consumer.

39
 FINDINGS

1. Majority of respondents agreed that marketing strategies effects the growth of the

company in rural areas.

2. Majority of respondents strongly agreed advertisement play an important role in

the sales in a company.

3. Most of the respondents have neutral opinion on the topic heavy investment on

packaging effects the sales of the products.

4. Most of the respondents strongly agree that distributor and retailer play an

important role in the success of organization.

5. Most of the respondents said that customer’s contract is the most effective strategy

for the promotion of the products.

6. Most of the employees have a neutral opinion that attractive packaging enables

customer to buy products.

7. Most of the respondents said that good advertising affects the sales of products.

8. Most of the respondents have an opinion that easy to measure effects is the reason

for using more sales promotional activities in company.

9. Majority of the sales promotion methods have immediate impact in the sales of the

company.

10. Majority of them said top management is responsible to the planning and

40
implementation of sales promotion schemes in their company.

11. Most of them agreed that retailer is more important under sales promotion

scheme.

12. Most of them voted for poor dealer relationship are the effects of sales promotion.

13. Most of them always take steps to motivate salesman for better performance.

14. Most of them agreed that the company always implement motivational methods in

the company.

15. Most of them agreed sales promotion method used to increase sales of their

products.

16. Most of them said that extra offer is the most used promotional activities to attract

customers.

17. Most of them strongly agreed that the advice of the retailer and wholesaler affects

your customer buying decision.

18. Most of them says displays and promotional offers informed by the firm doesn’t

attract their customers.

19. Most of them strongly agree the customer choose low price product over high

price product.

20. Most of them neutral opinion on statement the retailer in rural area effects the

purchasing decision of rural consumer.

41
 SUGGESTIONS
1. The company can focus on new marketing strategies in the rural market.

2. New and attractive packaging can be done by the company to enable customers to

buy the products.

3. The company can inverse more amount of money in advertising by hiring

celebrities.

4. The bond between the employees and management in the company can also be

improved.

42
 CONCLUSION
The project was undertaken to study and evaluate the sales promotional

activities of

1. KSE Pvt Ltd, Irinjalakuda

2. KPL Oil mills, Irinjalakuda

3. Eastern Spices, Edapilly

The data were collected from 30 employees.

Sales promotion refers to a wide range of activities intended to provide a short

term increase in sales. The study was done to find out the different techniques used by

the organization to increase their sales promotion. The annual increase of profit helps

us to find out effectiveness of the sales promotional activity of the organization. The

employees are very much satisfied with the sales promotional activities opted by the

organizations.

43
44