Project Tony

8/3/2019 Project Tony

http://slidepdf.com/reader/full/project-tony 1/68

A PROJECT WORK ON

SALES PROMOTION TECHNIQUES IN TERRACON,PERAMANGALAM, THRISSUR

Submitted in partial fulfillment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Of Mahatma Gandhi University

Submitted By

Tony Tomy

Reg No:10308

Under the guidance of

Asst. Prof . Mukesh Dev

June - July 2011

DC School of Management and Technology

Pullikkanam, Vagamon, Idukki 685503

Tel: 04869 – 248322, 248323

DECLARATION



I hereby declare that the project report titled “Sales Promotion Techniques in Terracon,

Peramangalam, Thrissur” submitted to Mahatma Gandhi University is a record of the original

work done by me and no part of it has been submitted earlier for any Degree, Post Graduation or similar of any other university or institution.

Place: Pullikkanam Signature:

Date: Name: Tony Tomy



Certificate from the Company

ACKNOWLEDGEMENT



First of all, I thank the God Almighty for his blessings to complete my Project

successfully.

I would like to express my heartiest gratitude to Mr. NIyas Mohammed, GM of

Terracon, Peramangalam, Thrissur for giving me an opportunity to associate myself in the

organization and to carry out my project in Terracon.

I am also deeply obliged to Ms. Rejani Raghav, HR Manager of Terracon, Thrissur for herS

inspiring guidance, help and co-operation throughout the study.

I would like to thank our Director Brig. Ashok Kumar for giving me an opportunity to

undergo this project. I would also like to extend my gratitude towards my project guide Asst.

Prof . Mukesh Dev, Faculty, DCSMAT for his guidance, constant interest and encouragementwhich has enabled to complete my project successfully.

I would also like to express my special thanks to all the department heads that I have

visited for their support, information, co-operation, advice to complete my project and would

also give my sincere thanks to all the staff and the members of TERRACON, THRISSUR .

In addition, I express my affection to my beloved parents, friends & all my colleagues for

providing support throughout the study.



CONTENTS

CONTENTS.........................................................................................5

CHAPTER I.........................................................................................7

.....................................................................7

STATEMENT OF THE PROBLEM......................................................................8

................................................................................................8

REVIEW OF LITERATURE..............................................................................8

Factors Responsible For Determinig The Form Of Sales Promotion…...... .10

OBJECTIVES OF STUDY..............................................................................13

SCOPE OF STUDY......................................................................................14

RESEARCH METHODOLOGY........................................................................15

THEORETICAL FRAMEWORK........................................................................17

Characteristics of Sales Promotion.......................................................22

Sales Promotion Tools and Programmes:......................................................22

Tools of Sales Promotion for Dealers…….......................................................22

Tools for consumers sales promotion….........................................................25

CHAPTER II......................................................................................28

INDUSTRIAL PROFILE................................................................................29

CHAPTER III.....................................................................................32

PRODUCT PROFILE.................................................................................37

CHAPTER IV......................................................................................46

DATA ANALYSIS AND INTERPRETATION.......................................................46

DATA ANALYSIS AND INTERPRETATION.......................................................46



Pre-testing.......................................................................................55

Concurrent testing.............................................................................56

Post-testing......................................................................................56

Reasons for Growth of Sales Promotion........................................................57

1. Increasing Competition...................................................................57

2. Customers Have Become More Price Sensitive....................................57

3. Sales Promotions Generally Create An Immediate Positive Impact On

Sales...............................................................................................57

4. Products have become more standardized.........................................58

5. Consumer Acceptance....................................................................58

6. Advertising Has Become More Expensive And Less Effective.................58

7. Trade Has Become More Powerful.....................................................59

8. Emphasis On Sales Volumes............................................................59

9. Sales Promotions Maximise Profits....................................................59

12. Sales Promotion Specialists Are Available .......................................60

CHAPTER V.......................................................................................61

FINDINGS................................................................................................62

SUGGESTIONS..........................................................................................62

CONCLUSION...........................................................................................64

BIBLIOGRAPHY.........................................................................................65

APENDIX..................................................................................................66

QUESTIONNAIRE....................................................................................66



CHAPTER I

INTRODUCTION



STATEMENT OF THE PROBLEM

Consumption in India has seen drastic changes due to change in economic levels of the

country changing rapidly. In today’s competition the core object of all corporations is not only

to satisfy customers but before that they have to satisfy dealers who are directly or indirectly

responsible for suppling goods to retailers on time which in return creates a good image of the

company. It is the choice empowered to decide the fate of any product or organisation. Only the

companies that continuously monitor and meet changing needs will win.

The business world today is a world of competition. A business cannot survive if its

products do not sell in the market. Thus, all marketing activities are undertaken to increase sales.

Producers may spend a lot on advertising and personal selling. Still the product may not sell. So

incentivesBusiness Studies need to be offered to attract customers to buy the product. Thus, sales

promotion is important to increase the sale of any product.

REVIEW OF LITERATURE



Every businessman wants to increase the sale of goods that he deals in. He can adopt

several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to

Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might

also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some

products.

There are also exchange offers, like in exchange of existing model of television you can

get a new model at a reduced price. You may have also observed in your neighbouring markets

notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and many other

schemes to attract customers to buy certain products. All these are incentives offered by

manufacturers or dealers to increase the sale of their goods. These incentives may be in the form

of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures

normally motivate the customers to buy more and thus, it increases sales of the product. This

approach of selling goods is known as “Sales Promotion”.

Why Sales Promotion Is Important For Manufacturer……?

1. It helps to increase sales in a competitive market and thus, increases profits;

2. It helps to introduce new products in the market by drawing the attention of potential

customers;

3. When a new product is introduced or there is a change of fashion or taste of consumers,

existing stocks can be quickly disposed off;

4. It stabilizes sales volume by keeping its customers with them. In the age of competition it is

quite much possible that a customer may change his/her mind and try other brands.

5. Various incentives under sales promotion schemes help to retain the customers.

6. To meet the challenge of competition: Today’s business faces competition all the time.New

products frequently come to the market and at the same time improvement also takes place. So



sales promotion measures have become essential to retain the market share of the seller or

producer in the product-market.

7. To maintain sales of seasonal products: There are some products like air conditioner,fan,

refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc.,which are

used only in particular seasons. To maintain the sale of these types of products normally the

manufactures and dealers give off-season discount. For example, you can buy air conditioner in

winter at a reduced price. Similarly you may get discount on winter clothes during summer.

Factors Responsible For Determinig The Form Of Sales Promotion….

(i) Kinds of product:

The product is one of the factors determing the form of promotion. Toys, toilet soaps and

cosmetics are effectively shown on television. Mass selling consumer goods can be easily

promoted through radio and television. Industrial and speciality goods should be promoted

through technical journals and through sales engineers.

(ii) The buyer:

If the marketers are to provide realistic solutions to the problem of buyers, they must

know their customers, their needs and desires, their attitude, values, aspirations and expectations.

Hence marketers must have up-to-date information about customer demand and customer

behaviour. If the buyers are educated then demonstrations or instructions can be used as sales

promotion technique. Similarly, contests and quizzes can be used if buyers are of young age and

educated.

(iii) Nature and size of market:

The number, geographical location and purchasing power of potential customers exercise

a significant impact on the sales promotion. Sampling, coupon, money refund orders, premium

offer, price-off and trading stamps etc., are suitable for sales promotion in local markets. On the



other hand, fairs, exhibitions and fashion shows are more appropriate for sales promotion on the

national level particularly for garments,books and electronic items.

(iv) Stages in product life cycle:

This is an important managerial tool in sales promotion. Product life cycles consists of

four stages.

(a) Introduction of the product require lot of energy to create awareness, acceptance and demand

for the product. Introducing a new product for most companies is a costly and difficult exercise,

that is why they mostly depend on middlemen,

(b) Growth. It includes a fast growth both in sales volume and profit.

(c) Maturity (Saturation).This stage is longer. But the speed in achieving sales volume reduces

during this stage. Profit also starts declining much faster than the sales.

(d) Declining. This is the last stage in product life cycle.After a period of stability, the buyers

loose interest on the product, and sales start falling more quickly. At this stage either high cost

sales promotion technique may be used or existing product may be improved.

(v) Management policy:

In the management policy, first of all, sales promotion objectives are set, then

communication tools required to achieve these objectives are designed, and the third step is to

determine the cost required to execute promotional activities and programmes. In short sales

promotion expenditure is directly related to the objectives to be achieved. Difficult on account of

multitude of promotion tools, on the one hand, and varieties of products and markets on the

other. For example, the greater the geographical dispersion of a target market, the greater the

communication expenditure required. Similarly, if an offering is in its early life cycle, there is a

greater need of expenditure. But promotion budget should always justify the tasks to be

undertaken. A basic principle would be the cost and returns of sales promotion tools to be

adopted. Hindustan Lever has its well drawn up sales promotion budget. If any business house

does not have its promotion budget fixed, then promotion programmes will have to be designed

to support the marketing plan.



(v) Government regulations:

Government has passed various laws and made rules to protect the consumer interest,

such as the prevention of Food Adulteration Act, the Drugs and Magic Remedies (Objectionable

Advertisements) Act, and Drugs and Cosmetics Act etc. Sales promotion policy must take into

consideration the government regulations relating to the particular product, e.g. the commodity

rates must be specified on the package and in case of medicines drug contents and date of

manufacturing, date of expire, and price must be specified.



OBJECTIVES OF STUDY

Sales promotion has dual objective:

(A) Basic objectives and

(B) Other objectives.

(A) Basic objectives of sales promotion are:

(i) increasing the buying response of ultimate consumers.

(ii) increasing the selling efforts and intensity by dealers as well as by sales personnel.

(iii) supplementing and co-ordinating the efforts of advertising and personal selling.

(B) The other objectives are:

(i) calling attention to new products and product improvements.

(ii) informing buyers of new brand and new packaging.

(iii) improving market share.

(iv) obtaining dealer outlets.

(v) meeting competition.



SCOPE OF STUDY

The ultimate aim or purpose of sales promotion is that of increasing the volume of sales

and profits but it differs from advertising and personal selling both in approach and techniques.

Personal selling is directed at a large number of potential customers. Sales promotion serves as a

link between two by focussing selling efforts on selected small groups of people. Sales

promotion usually involves non-recurring and no-routine methods, in contrast with the routine

and recurring nature of advertising and personal selling. Under advertising, the media is not

owned and controlled by the advertiser except in direct mail advertisings. But sales promotion

methods are controlled by the advertiser. Sales promotion covers various stimulants directed to

the consumers and dealers, that is why it is of two types-consumers sales promotion and dealers

sales promotion. The former stimulates consumer’s buying at the point of sale, and latter

improves dealer’s effectiveness at the retails outlets.



RESEARCH METHODOLOGY

The word method indicates the mode or the way of accomplishing an objective. The

study was descriptive type of research as it describes the current market situation.

Sources of Data-

Data are facts, figures and other relevant materials, past and present serving as basis for

the study and analysis. The data serves as the basis for analysis. Without analysis of factual data

no specific interference can be drawn on the questions under study. Inference based on

imagination or guesswork can’t provide correct answers to research questions. The relevance,

adequacy and reliability of data determine the quality of findings of a study. For the purpose of

the present study, data from two sources have been gathered namely primary and secondary data.

Primary Data

Primary data are those sources in which data are collected through original investigation.

The methods of collecting primary data used for the study were by gathering information from

the market through structured questionnaires.

1. Questionnaire

2. Customer interaction

3. Interaction with employees

4. Guidelines from the external guide and other officers in the organization.

A detailed primary field survey was conducted. The primary data was collected through

the response from questionnaire distributed by the researcher, which was done personally by

interviewing and interacting with different customers who visit.

Secondary Data

Secondary data means data that are already available. In other words, it refers to the data

which have already been collected and analyzed by someone else. When the researcher utilizes



secondary data, then he has to look into various sources from where he can obtain them.

Secondary data may either be published or unpublished data.

1. Company manuals and brochures.

2. Company website-www.terracon.com

Sampling Design

The researcher now decides on sampling plan. Here the researcher has to decide on the

following options:-

1. Population- who is to be surveyed? The researcher must define the target population,

which is to be sampled.

2. Sample unit- once the population is determined, a sampling unit must be developed, then

the sampling frame, so that every one in the target population has an equal chance of

being sampled.

Data Collection Tools

Structured undisguised questionnaire was distributed personally to the individual

consumers. Special care was taken to make them feel comfortable so that, they answer all the

questions without any misinterpretation. This method is followed to get unbiased answers.

Primary data are gathered through direct interview and questionnaire. A questionnaire

consists of a set questions presented to respondents for their answers. While preparing the

questions the researcher has to carefully choose the questions and their forms and sequence. The

sequence should in a logical order. The form or the type of questions asked should influence the

customers to answer. The questions can be open or close ended.

An open ended question allows the respondents to answer them in their own words.

These questions always reveal more because they do not constrain respondents answer. The close

ended questions pre specify all the possible answers. These questions provide answers that are



easier to interpret and tabulate. The questionnaire must be simple, direct, unbiased and wording

should be pre tested with a sample of respondents before it is used. The main thing is that a

questionnaire should create interest among the respondents.

The researcher has made a judicious use of both the open as well as close ended questions

in the questionnaire. Also likert’s scale has been used for studying the perception of customers.

Plan of Data analysis

Analysis is the process by which data is converted into useful information. The raw data

collected from the customers are transferred to the work sheets in the form of tally bars andanalyzed by statistical tools by drawing tables and graphs, inferences were drawn on a marketing

concepts and conversation. Based on marketing concepts findings of the research were driven

and recommendations are made. A few tools such as rating, graphs, pie charts etc. are being used

for analysis part of the study.

Contribution of the study-

This would help to know the impact of sales promotion on the buying behavior of the

customer. To select the best media for promotional activities. To know the perception of

customers regarding the store. To find the level of customer satisfaction. To design their market

strategies.

THEORETICAL FRAMEWORK

SALES PROMOTION



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

messages, many marketers are discovering that advertising alone is not enough to move members

of a target market to take action, such as getting them to try a new product. Instead, marketers

have learned that to meet their goals they must use additional promotional methods in connection

with advertising.

Meaning:

Sales promotion consists of all promotional activities other than advertising, personal

selling and publicity that help to increase sales through non repetitive and one time

communication. In other words, it includes marketing activities other than personal selling,

advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness, such as

point of purchase displays, shows and exhibitions, demonstrations and various non-recurring

selling efforts not in the ordinary routine.

Other marketers have found that certain characteristics of their target market (e.g. small

but geographically dispersed) or characteristics of their product make advertising a less attractive

option. For these marketers better results may be obtained using promotional approaches and

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

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

promotional techniques to meet their promotion goals. Sales promotions are used widely in many

industries and especially by marketers selling to consumers.

We will see that the objectives of sales promotion are quite different than advertising and

are specifically designed to encourage customer response.

What is sales promotion…..???

Sales promotion describes promotional methods using special short-term techniques to

persuade members of a target market to respond or undertake certain activity. As a reward,

marketers offer something of value to those responding generally in the form of lower cost of



ownership for a purchased product (e.g. lower purchase price, money back) or in the inclusion of

additional value-added material.

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

advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may

give the contest the appearance of advertising. While the delivery of the marketer’s message

through television media is certainly labelled as advertising, what is contained in the message,

namely the contest, is considered a sales promotion. The factors that distinguish between the two

promotional approaches are:

1. Whether the promotion involves a short-term value proposition (e.g. the contest is only

offered for a limited period of time).

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

proposition (e.g. customer must enter contest).

3. The inclusion of a training constraint and an activity requirement are hallmarks of sales

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

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

greater for consumer products marketers. One estimate by the promotion marketing

association suggests that in the US alone spending on sales promotion exceeds that of

advertising.

Types of sales promotion-

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

promotion is directed. These include:



1. Consumer market directed- possibly the most well-known methods of sales

promotion are those intended to appeal to the final consumer. Consumers are exposed

to sales promotions nearly everyday, and as discussed later, many buyers are

conditioned to look for sales promotions prior to making purchase decisions.

2. Trade market directed- marketers use sales promotions to target all customers

including partners within their channel of distribution. Trade promotions are initially

used to entice channel members to carry a marketer’s products and once products are

stocked, marketers utilize promotions to strengthen the channel relationship

3. Business-to-business market directed- a small, but important,sub-set of sales

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

may not carry the glamour associated with consumer or trade promotions, b2b

promotions are used in many industries.

Definition Of Sales Promotion

“Sales promotion includes incentive-offering and interest-creating activities which are

generally short-term marketing events other than advertising, personal selling, publicity and

direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the

purchase and other desired behavioral responses of the firm’s customers.”

Sales promotion offers a direct inducement to act by 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. Not only are sales

promotions very common in the current competitive market conditions, they are increasing at a

fast pace. These promotions are direct inducements. In spite of the directness, sales

promotions are fairly complicated and a rich tool of marketing with innumerable creative

possibilities limited only by the imagination of promotion planners. Sales promotion is often

referred to by the names of ‘extra purchase value’ and ‘below-the-line selling’.



Today we find companies in almost all sectors offering some sort of a promotion scheme.

These sectors range from automobiles to beverages, from financial services to foods, from

household durables to services, from household products to business products, from personal

care to textiles and apparel.

Difference Between Advertising and Sales Promotion

Advertising and Sales Promotion are different. They have differences in there use and

utility. WIll try to explain it with example of HUTCH (Orange) to facilitate our understanding.

ADVERTISING SALES PROMOTION

By using a variety of persuasive appeals, it offers

reasons to buy a product or service.

Eg: Good Network, Promises and Delivers.

Besides giving reasons in the form of different

appeals, they offer incentive to the consumers to

buy the product or service now.

For new users, 1HUTCH no is given free for 1

month & sms is free for 3 months.

Appeals are emotional or functional in nature.

Eg: the current ad of “Wherever you go, our

network follows”

Appeals are rational

It justifies whatever it says.

Time-frame is long term. Time frame is short term.

The primary objective is to create an enduring brand image.

To get sales quickly or to induce trial.

Indirect and subtle approach towards persuading

customers to buy a product or service.

Direct in approach to induce consumers to buy a

product or service immediately by temporarily

changing the existing price-value relationship of

http://drypen.in/sales-promotion/difference-between-advertising-and-sales-promotion.html

http://drypen.in/sales-promotion/difference-between-advertising-and-sales-promotion.html



the product or service.

Characteristics of Sales Promotion

Writing about sales promotion tools, Prof. Philip Kotler observes – “they have 3

distinctive characteristics.”

Communication: They gain attention and usually provide information that may lead the

customer to the product.

Incentive: They incorporate some concession, inducement, or contribution that gives value to

the consumer.

Invitation: They include a distinct invitation to engage in the transaction now (offer valid till the

last stock).

Sales Promotion Tools and Programmes:

Sales promotion techniques are know as promotion tools and the mode of their

application is know as sales programmes. These tools and programmes are divided under two

heads:

1. Tools and programmes for consumers sales promotion.

2. Tools and programmes for dealer / distributor sales promotion

Tools of Sales Promotion for Dealers…….

To increase the sale of any product manufactures or producers adopt different measures

like sample, gift, bonus, and many more. These are known as tools or techniques or methods of

sales promotion. Let us know more about some of the commonly used tools of sales promotion.

http://drypen.in/sales-promotion/characteristics-of-sales-promotion.html

http://drypen.in/sales-promotion/characteristics-of-sales-promotion.html



(i) Free samples:

You might have received free samples of shampoo, washing powder, coffee powder, etc.

while purchasing various items from the market. Sometimes these free samples are also

distributed by the shopkeeper even without purhasing any item from his shop.

These are distributed to attract consumers to try out a new product and thereby create

new customers. Some businessmen distribute samples among selected persons in order to

popularize the product. For example, in the case of medicine free samples are distributed among

physicians, in the case of textbooks, specimen copies are distributed among teachers.

(ii) Premium or Bonus offer:

A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of

toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with

the purchase of a product. They are effective in inducing consumers to buy a particular product.

This is also useful for encouraging and rewarding existing customers.

(iii) Exchange schemes:

It refers to offering exchange of old product for a new product at a price less than the

original price of the product. This is useful for drawing attention to product improvement. ‘Bring

your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500’ or ‘exchange

your black and white television with a colour television’ are various popular examples of

exchange scheme.

(iv) Price-off offer:

Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off on

purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on

cooler’ etc. are some of the common schemes. This type of scheme is designed to boost up sales

in off-season and sometimes while introducing a new product in the market.



(v) Coupons:

Sometimes, coupons are issued by manufacturers either in the packet of a product or

through an advertisement printed in the newspaper or magazine or through mail. These coupons

can be presented to the retailer while buying the product. The holder of the coupon gets the

product at a discount. For example, you might have come across coupons like, ‘show this and get

Rs. 15 off on purchase of 5 kg. of Annapurna Atta’. The reduced price under this scheme attracts

the attention of the prospective customers towards new or improved products.

(vi) Fairs and Exhibitions:

Fairs and exhibitions may be organised at local, regional, national or international level to

introduce new products, demonstrate the products and to explain special features and usefulness

of the products. Goods are displayed and demonstrated and their sale is also conducted at a

reasonable discount. ‘International Trade Fair’ in NewSales Promotion Delhi at Pragati Maidan,

which is held from 14th to 27th November every year, is a wellknown example of Fairs and

Exhibitions as a tool of sales promotion.

(vii) Trading stamps:

In case of some specific products trading stamps are distributed among the customers

according to the value of their purchase. The customers are required to collect these stamps of

sufficient value within a particular period in order to avail of some benefits. This tool induces

customers to buy that product more frequently to collect the stamps of required value.

(viii) Scratch and win offer:

To induce the customer to buy a particular product ‘scratch and win’ scheme is also

offered. Under this scheme a customer scratch a specific marked area on the package of the

product and gets the benefit according to the message written there.

In this way customers may get some item free as mentioned on the marked area or may

avail of price-off, or sometimes visit different places on special tour arranged by the

manufacturers.



(ix) Money Back offer:

Under this scheme customers are given assurance that full value of the product will be

returned to them if they are not satisfied after using the product. This creates confidence among

the customers with regard to the quality of the product. This technique is particularly useful

while introducing new products in the market.

Tools for consumers sales promotion…..

(i) Sample:

Usually called consumer sample, free samples and given to consumers to

introduce a new product or to expand the market. The consumers can try the product.

(ii) Demonstrations or instructions

These are instructions given to educate the consumers about using the product. This

method may be used in products like Vacuum cleaner.

(iii) Coupon:

It is a certificate that reduces the price. When a buyer gives a coupon to the dealer or

retailer he gets the product at lower price. For example in DCM coupon system if regular price is

Rs.20, with a coupon it is Rs.18. These are also known as discount coupons. Coupons are also

accepted as cash by retailers.

(iv) Money-refund orders:

The technique indicates refund of full purchase price if the buyer so wants. It is helpful in

the introduction of a new product. Refund offer creates additional interest and increases salesconsiderably. It is a good device for creating new user and to strengthen the brand loyalty.

(v) Premium (gift) offers:

These are temporary price reductions, which appeal to bargain instinct, e.g., instant

coffee sold in carafes by one company was very successful. Towels, dinner ware, hair-brushes,



keychains, artificial flowers, ball pens, toilet soaps, blades, were given as inpack premiums.

Attractive reusable jars costing separately say Rs. 12 may be given as at an extra

charge of Rs. 4 only. Liril gave a soap box almost free with two soap cakes.

(vi) Price-off:

The price off label is printed on the package, e.g.,Rs. 4 offer a Brooke Bond tea pack of

500 grams. It gives a temporary discount to the consumers.

(vii) Contests or quizzes:

These are held to stimulate consumer’s interest in the product. In these contests, and

quizzers, participants compete for prizes on the basis of their skill or creative ideas. In

Sweepstakes, they submit their names to be included in a draw of prize winners. This type of

sales promotion is not a lottery because there is chance or luck, prizes are offered and a payment

to participant is there.

(viii) Trading stamps:

Trading or Bonus stamps are issued by retailers to customers who buy goods from there.

The number of stamp given to a buyer depends upon the amount of purchases made by him. For

instance, in India Roman Bonus Stamps are issued at the rate of 2-1/2 percent of the purchase

amount. These stamps are given free of charge and the customers can redeem them to obtain

products out of the specified list. This technique induces customer to buy their requirements

from the retailers who offersuch stamps. The purpose is to increase customer loyalty

(ix) Fairs and exhibitions:

Trade shows, fashion shows or parades, fairs and exhibitions are important

technique/tools of sales promotion. They provide a forum for the exhibitions or demonstration of

products. Free literature can be distributed to introduce the firm and its products to the public.

Fairs and exhibitions are organized usually by big firms or trade associations. At these fairs and

exhibitions, business firms are allotted stalls where in they display their products. Fairs and



exhibitions have wide appeal as several people visit there. Customer can be attracted through

gifts, special concessions and free demonstrations of technical and speciality products. They

provide an opportunity to the visitors to observe the competing products and help to promote

sales. For instance, the Trade Fair Authority of India organises Trade Fairs of various types in

New Delhi. The National Book Trust organises World Book Fair, wherepublishers of all over the

world are invited to display their publications. Sometimes sales conventions or conferences of

dealers are held.Producers of garments often organise fashion shows to promote theirproducts

(x) Public relations activities:

These include greetings or thanks in newspapers, donating space for noble causes, offer

of Privileged Citizen Card, etc. Their purpose is not to create immediate demand or to increase

sales. They are designed to create a good image of the firm in the society.

(xi) Exchange scheme:

This technique offers to exchange the old product with new in payment of a fixed amount

which is less than the original price for example, exchange of old Black & White Television for

Colour Television by paying rupees 8000 only (original price is rupees 10000) was offered by a

particular producer of colour TV sets.



CHAPTER II

INDUSTRY PROFILE



INDUSTRIAL PROFILE

INTRODUCTION

Man’s evolution, development and growth are related to terracotta. It has been used

throughout history for sculpture and pottery, as well as bricks and roof shingles. Later it has

given way for decorative roofing, ceiling and flooring tiles as well as wall cladding and building

blocks in terracotta. Though the history of man’s fascination with clay dates back to 5000 B. C. it

still retains its aura as a most favorable medium for man’s expressions.

Terracotta and early civilization

Archeological excavation in various parts of the world, including India has shed lights on

the prominence of clay in early civilizations. Sculptures, edicts, pottery, images of worship and

toys in terracotta found out from Indian shores wax eloquent about the terracotta culture that

once reigned here.In India Mohenjo-daro and Harappan civilization have played significant roles

in promoting the importance of clay and clay made products. Likewise the Sunga- Gupta period

also marks the golden time of terracotta in India. Delightful experiments were practiced in

terracotta that later contributed to the artistic and architectural lineage here.

Terracotta & Different schools of architecture

Different foreign as well as Indian schools of architecture have time and again stressed

the relevance of terracotta building material in construction. Most of the modern archeological

thoughts emphasis the necessity of returning to terracotta culture in the building construction

sector. They believe that terracotta can definitely sustain the ecological environment undisturbed

in the coming aeons. Chicago school of architecture, one of the prominent branches in

architecture describes the use of steel frame buildings with masonry cladding usually terracotta.

Baked earth or ‘terracotta’ in Italian have found place in Jocobethan Revival style as terracotta



brickwork.Moorish architecture makes walls covered in glazed tiles that add to the structural and

aesthetic importance of the building. Terracotta has been the base of Indian architecture. We

have numerable instances even now, as devotional centers, monuments etc that enunciate the

significance of terracotta in Indian culture.Byzantine architecture made use of blocks made of

kiln-fired clay material for construction of buildings and houses. Greek architecture also

attributes importance to terracotta that once formed a major material in their construction works.

The pre-historic passion (Touch of man and earth)

Dig into the splendid culture of the past;- deftly carved robust terracotta speaks volumes

of man’s first fascination. Rich with imagination and aesthetic value, these composite earthen

models mark the civilization of man on earth. The most ancient and original form of expression

of life, terracotta has been the quintessence of man’s artistic interpretations.

Be it pottery or shelter, earth – the eternal mother has been the best and finest resource of

mankind throughout his illustrious past. He moulded his fantasies and skills in clay that surprised

him with its pleasing plasticity and usability. Its distinctive abilities to transform to any desired

shape when wet, and to retain the form given when dried and burned gave wings to the

imagination and intelligence of man that made the terracotta of today. With the modern cutting

edge technology man wisely remoulded the ancient terracotta concepts for the needs of his new

habitat. In contemporary architecture clay based products such as roof tiles and floor tiles play a

vital role in providing elegance and characters to each building and its interior. It has added new

dimensions to a prehistoric fascination that began from time immemorial. An ever-continuing

passion of connoisseurs and common people, clay roof tile was introduced with a commercial

purpose in India by Christian missionaries from Germany and Switzerland about 125 years ago.

They pioneered the setting up of a few factories in Mangalore first and Calicut later. Rich in

alluvial deposits of red common clay, the coast of Malabar soon became the cradle of modern

terracotta in India. During 1940’s and ‘50’s the industry underwent a quintessential revolution

that marked the boom of terracotta factories in Kerala. It heralded new and exciting

developments in clay based utility products that redefined the architectural aesthetics of the



country for the coming years. Kap Cerra Colours carries on this enriched tradition of endless

pursuit for innovation and perfection through the application of imagination and technologies.



CHAPTER III

COMPANY PROFILE

COMPANY PROFILE



INTRODUCTION

Home is a sweet experience that we often cherish in our memories. The lovely and dear

some picture of our home keeps us returning to its warm interiors whenever we are away from

home. Terracon makes our home a really memorable experience with its lovely shades,

picturesque patterns and protective compactness.

Raised from the cradle of terracotta culture in India, Kerala; Terracon came into being in

the year 1987. The group had been at an inland village called Karuvannur near Thrissur.

Terracon is a name written golden letters in the mainstay of terracotta industry. It assumes the

major role by catering to the diversified needs for distinctive styles and patterns of terracotta

construction materials. Showcasing a vivid range of roof tiles, floor tiles, weather proofing tiles,

structural hollow roof, wall blocks, etc we have become a trendsetter in the industry. They own a

big market share not only in Kerala but in Middile East countries as well. They commitment to

quality products and after sales service has earned us fame even in foreign lands. Their large list

3of satisfied clients and contented architects speak for treir products.

FEATURED PROJECTS

Kap India with its most modern Research& Development wing is a nonpareil

manufacturer of quality tile products - be it Roofing tiles, Flooring tiles, Ceiling tiles and other

construction materials. Addicted to an endless passion for perfection .

PRODUCTS



Terracotta Products and Tranquil Surroundings

Being made of the mother earth, that which sustains supports and contains all; terracotta

products have a unique power to conform to any surroundings that hold it. Be it our residence or

office, terracotta products bring in peace in terms of red colour and fine textures.

Its unique ability to control the temperature of the atmosphere to a pleasurable level has

made it the hot choice of most of modern architects who build in the cities. Its cool touch on the

wall and floor inspires our soul and keeps it calm and contented. The terracotta clad home stands

for a pleasing environment where we will be breathing cool fresh air even when it is situated in a

polluted city. Terracon provide the best modern solution to tranquil atmosphere that can bestow

heaven in terms of peace.

Terracotta Products and modern habitats

An aesthetically pleasing relief from monotonous concrete buildings is what terracotta

clad house bestows its modern user. Terracotta imparts rustic appeal to the buildings that are

made in a modern style. It exudes a feeling of grandeur that denotes a rich tradition. Modern

villas, star hotels and resorts made using terracotta tiles may seem hospitable to an outsider who

admires its warm and pleasant interior. Especially in Kerala where torrential rain and exhausting

heat are climatic traits, terracotta plays a dual role pleasing in both situations. It controls the

humidity in the air permeating heat or cold according to the climate.

Terracon has an exquisite range of terracotta claddings with beautiful patterns and

enamouring designs that may turn a modern habitat a paragon of beauty in earthenware. From

roofing to lawn paving bricks, Terracon flaunts all pleasing varieties of tiles for the construction

of a modern abode. Each tile, which is a masterpiece of precision craftsmanship, contributes to

the majestic look of the habitat. From the beginning of modern period itself, attempts have been

made to harmonize terracotta with modern functional designs that made way for the scintillating



equations of today. Terracon, famous for their artisan dexterity and tantalizing technological

finesse have created quite a following in the industry.

Terracotta Products for lawns

Terracotta – a Greek word for earthenware – has been a part of human culture since

civilization. With the passage of time, man discovered vast utility base of clay, whether it is

earthen pots or a habitat. With the advent of technologies terracotta found new applications that

credited man’s imagination.

A recent development in that line is terracotta tiling for lawns. When paved in the garden

lawn terracotta tiles augment the beauty of the lawn. Having been made of natural clay, it is a

healthier substitute for concrete flooring. The porosity of clay tile creates breathing space for our

naked foot and thus binds us directly to earth. Terracon, available in a wide variety of

aesthetically appealing patterns render striking out line to our lawn.

Product coherence towards atmosphere & climatic changes


products have a unique power to conform to any surroundings that hold them. Be it your

residence or office, terracotta products bring in peace in terms of red colour and fine textures. As

contrary to the modern building materials, terracotta renders our home an inextricable part of the

earth and sky that surround it. This rejuvenating power has been made the terracotta an obsession

of mankind since time immemorial. Its unique ability to control the temperature of the

atmosphere to a pleasurable level has made it the hot choice of most of modern architects who

build in the cities. The terracotta clad home stands for a pleasing environment where you will be

breathing cool fresh air even it is situated in a polluted city. Terracon provide the best modern

solution to tranquil atmospheres that can bestow heaven in terms of peace. Terracon produces



terracotta tiles that can withstand freezing weather conditions and surface wear. Also our unique

products fight against any abrasive action of sand or salt air. An integral part of today’s building

concepts Terracon Tiles are less susceptible to leaks. They are the durable and sustainable

solutions, to your dream home, that reduce the radiation by 15% in hot weather.

Manufacturing Process

With the primary material for the manufacture – clay – available in plenty, it was easy for

the primitive man to shape up his bizarre imaginations. In ancient times first clay sculptures were

dried in the sun after being formed. Later they were placed in the ashes of open hearths to harden

and finally kilns were used, similar to those used for pottery today.

Terracotta came to be a favourite working material for man owing to its pleasing plasticity,

flexibility and ability to acquire any shapes when moulded. It is a low temperature, red burning,

porous and aesthetically appealing earthenware. The term ‘terracotta’ in Greek refers to any

shapes or figures in clay like roof tiles, floor tiles, bricks etc.

In the manufacturing centre- the common red clay, which is the most abundantly

available mineral on earth is processed. Its high plasticity and workability in wet condition

enable man to shape the same into any form and apply his creative mind. This work of art is then

let to dry. It is then fried in a kiln at a temperature of 850 degree Celsius. The refined terracotta

acquires pleasing red colour, strength and porosity that last for more than a lifetime.

An ancient art in clay – the plastic and practical form of mother earth – terracotta hadadorned the exterior and interior of man’s abode from time immemorial itself. Time moulded the

styles and patterns of terracotta to suit the tastes and trends of modern society that continued the

passion to the coming generations. It set the way for better looking and better performing

application in terracotta that defined the way of life of today.

Man created shapes and figures of his deities in clay, and raised his own home in bricks of clay.



The unique power of the clay to get easily shaped and its susceptibility towards heat made the

material a favourite medium of man. It followed magnificent creations of man’s imagination in

clay, the most powerful form of them being – tiles.Terracon – a pleasing modern version of

terracotta is available in a wide range of designs and patterns for roofing, flooring, ceiling and

other uses. It inspires our imagination and makes us revel in the natural harmony that it creates.

The use of modern manufacturing technology has bestowed the terracotta a desirable stability

and durability that keep admiring their tiles.

Wall Tiles

Ceiling Tiles

PRODUCT PROFILE

Products for Interior & Exterior

Terracon creates highly practical building materials such as roofing tiles, flooring tiles,

wall claddings, ceiling tiles, building blocks and pottery that inspire even the world classarchitects. Terracotta has now become a part of modern man’s life style and Terracons products

reflect his taste and trends. In line with the modern concept of architectural aesthetics are the

distinctive terracotta products from Terracon. Exquisite pottery items custom made for distinctive

purposes are the commendable speciality of Terracon. These decorative terracotta articles can

sometimes be used to augment the beauty of the interior. They also beautify the exteriors of an

abode when placed in the garden or lawn. Interior designers of today give prominence to

delectable articles made of terracotta.

Producing terracotta tiles of quality and usability, Terracon have been a changing voice in

the age-old industry. They have designed and manufactured tiles of superior style that went

along with both modern and traditional architectural concepts. Catering to heterogeneous

customers of Kerala and abroad their kiln furnaces have created durable terracotta tiles for

http://www.kapindiatiles.com/walltiles.htm

http://www.kapindiatiles.com/ceilingtiles.htm

http://www.kapindiatiles.com/walltiles.htm

http://www.kapindiatiles.com/ceilingtiles.htm



roofing, flooring, ceiling and for other applications. Their highly practical tile ranges appeal the

conventional and modern client. Available in old and most modern decorative types Terracon

continue its great tradition in both service and sales. Apart from providing best quality tiles we

focus on the endless application of tiles in the modern functional architecture.

When paved as roofing, flooring or ceiling Terracon terracotta tiles is a feast to the eyes

and cooling relief to the mind. It brings you the natural healthy atmosphere back by controlling

the climatic changes in the air such as humidity and heat

Flooring tiles

Wall tiles

Ceiling tiles

Roofing tiles

Benisters

Hollow bricks for walls

A stunningly good looking array of durable, sustainable and admirable quality terracotta

construction material products from Terracon have fetched acclamation world wide, because of

their endless possibilities of aesthetic application.

Tiles for Reliable Roofing

The tiles in Mangalore, Taylor and Fossano patterns can be laid using wooden rafters and

the Spanish, Portuguese and Minar tiles can be laid directly on R.C.C sloped roof. Milano, Neo

Spanish, Torino and Mini versions of Fossano, Taylor,Spanish, ridge tiles etc are some other

types they offer.

* Conventional Design

* Modern Decorative Design

* Exquisite patterns



* Endless Usability

Cieling Tiles

Terracon produces strong and superior ceiling tiles that are decorative also.Weaving

pattern, Mangalore pattern, Square, Hexagonal are a few of the popular ceiling tiles from our

furnace.

* Desighner

* Sustainble

* Durable

* Non- Leaking

* Easy fitting contours

Flooring Tiles Forever

A variety of floor ceiling with smooth surface and finish from Terracon adorn many

modern villas, star hotels and resorts. Round, StarA &B, Dumbel, Diamon, Octagonal,

Rectangular, Polygon etc are some of their flooring patterns. They do manufacture Designer

Staircase tiles, Plain and Designer Skirting Tiles as well.

* Elevation Tiles

* Moisture Resistant

*Hygenic

*Floral Decoration



Wonderful Wall Tiles

Discerning architects and interior designers are very much fond of the wall tiles from

Terracon that are available in amazing patterns and styles. Plain, Bamboo, Weaving, Diamond

and Square wall tiles are used for decorative wall cladding.

* All sizes

* Strong

* Long Lasting

* Weather Resistent

Balcony Beautifiers

Banister with beautiful patterns and curves are the next attraction from Terracon group.

Available in useful sizes and unequalled styles these terracotta works augment the ambience of

your dream home. Square, Old, Round etc are some popular patterns available with Terracon.

* Strong,

* Weather proof

* Decorative & Plain,

* All sizes

* Unbreakable

Jallies



They also specialize in the production of jallies that excell any of the creation in concrete

or wood in style, strength and smoothness.Dumbell, Old, Y and Star are some of the Terracon

jallie types that are used in constructing curtain walls, windows and ventilators.

*Decorative

* Durable

* Strong

* Different Sizes

* Weather Resistent

Hollow Blocks with a Difference

Terracon produces Hollow Blocks for Walls and Roofs that appear in a wide variety of

sizes and patterns.

Hollow Blocks for Walls

These are used for construction of load bearing walls. Available in all standard sizes

Terracon hollow blocks are also made for Lintle and for Compound wall. Hollow End Block is

another variant used in construction.

* Halves and Quarters available

* Stonger than natural stones

Hollow Blocks for Roofs



Terracon showcases a distinctive range of hollow blocks for roofs comprising Maruti,

Hollow Channel Block, Hollow Weather Proof Roofing and Split Channel Block.

* Wide Useability

* Strong

* Non- Leaking

* All standard sizes

Precious Pottery

Custom made pottery items are other peculiar products from Terracon. Pots, Carved

pillars, Clocks, Vases, Trays and Curios mde out of terracotta are now hot commodities with the

consumer market.

* Appealing desighns

* Long Lasting

Terracotta Products for Tiling

Be it traditional or modern architecture Terracotta is game for roofing , ceiling , flooring

and other reasons. Terracon tiles offer outstanding varieties in all these applications, adaptable to

any aesthetic aspects of architecture. The tiles manufactured from our factory excel in quality

that count first grade tiles.The use of terracotta as roofing tiles dates back to the ancient period

when man first discovered its sheltering possibilities. From a flat piece of terracotta he developedtiles with functional aspect like interlocking designs. It was remoulded and reshaped in the in the

kiln of man’s imagination that made the exquisite roofing tile ranges today.A much-advanced

form of terracotta tile is flooring tiles with stunning patterns and smooth finish.

Terracon comes up with designer tiles that adorn the interiors of your home. Beautifully



paved, the flooring tiles from Terracon can create wonders in home. Ceiling and wall cladding

are the next experiments man made with terracotta tiles. It gave way for pleasing patterns in

ceiling and walls tiles that can evoke your admiration. Highly conforming to modern

architectural styles, Terracon ceiling and wall tiles prove beyond fact that terracotta is still the

userfriendly material of building construction.

Terracotta Products for Traditional Housing

Man of the medieval period made his abode in clay products. The use of terracotta in

ceiling, roofing, flooring, wall cladding and building had been applied first by him. The richearth with plasticity gave pleasing natural red look and alluring simplicity to his abode. Terracon

tiles with its variety of exquisite tiles compensate for the lost look of natural beauty in modern

habitats. Its traditional and innovative tile ranges rebuild intact the traditional architecture in

delightful designs and distinctive patterns. If not for the finish and colour of terracotta, the

medieval man would definitely have used it for natural harmony the tiles create with its

backdrop. Armed with high resistance power against weather changes, chemical reactions and

the like, terracotta soon became an integral part of traditional architecture that has ardent

advocates even today.

Apart from imparting structural harmony to the households Terracon and blocks are

definitely a step further the contemporary brick and mortar expressions.

Terracotta Products and Tranquil Surroundings


products have a unique power to conform to any surroundings that hold it. Be it our residence or

office, terracotta products bring in peace in terms of red colour and fine textures.

Its unique ability to control the temperature of the atmosphere to a pleasurable level has



made it the hot choice of most of modern architects who build in the cities. Its cool touch on the

wall and floor inspires our soul and keeps it calm and contented. The terracotta clad home stands

for a pleasing environment where we will be breathing cool fresh air even when it is situated in a

polluted city. Terracon provide the best modern solution to tranquil atmosphere that can bestow

heaven in terms of peace.

Terracotta Products and modern habitats

An aesthetically pleasing relief from monotonous concrete buildings is what terracotta

clad house bestows its modern user. Terracotta imparts rustic appeal to the buildings that are

made in a modern style. It exudes a feeling of grandeur that denotes a rich tradition. Modern

villas, star hotels and resorts made using terracotta tiles may seem hospitable to an outsider who

admires its warm and pleasant interior. Especially in Kerala where torrential rain and exhausting

heat are climatic traits, terracotta plays a dual role pleasing in both situations. It controls the

humidity in the air permeating heat or cold according to the climate.

Terracon has an exquisite range of terracotta claddings with beautiful patterns and

enamouring designs that may turn a modern habitat a paragon of beauty in earthenware. From

roofing to lawn paving bricks, Terracon flaunts all pleasing varieties of tiles for the construction

of a modern abode. Each tile, which is a masterpiece of precision craftsmanship, contributes to

the majestic look of the habitat. From the beginning of modern period itself, attempts have been

made to harmonize terracotta with modern functional designs that made way for the scintillating

equations of today. Terracon, famous for their artisan dexterity and tantalizing technological

finesse have created quite a following in the industry.

Terracotta Products for lawns

Terracotta – a Greek word for earthenware – has been a part of human culture since

civilization. With the passage of time, man discovered vast utility base of clay, whether it is

earthen pots or a habitat. With the advent of technologies terracotta found new applications that

credited man’s imagination.





CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION



AGE:

Table no.1-

Table showing the age wise distribution of respondents.

AGE No. of Respondents Percentage

Below 19 15 15

20-29 35 35

30-39 22 22

40-49 14 14

50 above 14 14

TOTAL 100 100

Analysis and interpretation-

It is clear the study that 15% of the respondents were below 19 years, 35% of respondents

were between 20 and 29 which consists major portion of the sample used for the study, 22%

were between 30-39, 14% consists of respondents who come under the age group of 40 and

above. This reveals that majority i.e. 80% of the customers are all below the age group of 30.

This shows that customers are young people who constitute the major section of India’s

population today.

GENDER:



Table no.2

Table showing the distribution of respondents on gender basis.

Gender No. of respondents Percentage

Male 64 64

Female 36 36

TOTAL 100 100

MONTHLY INCOME:



Table no.3

Table showing monthly income of respondents

Monthly income No. of respondents Percentage

Below 5000 48 48

5001-10000 18 18

10001-15000 16 16

15001-25000 14 14

25000 above 4 4

TOTAL 100 100




From the study it is clear that 48% of the respondents are under income group of below

5000, 18% of respondents were between the income group 5001-10000, 16% of respondents

were between the income group of 10001-15000, 14% of respondents were between the income

group 15001-25000 and 4% consists of respondents who come under the income group of 25000

above. It is understood from the table and chart, terracon with its low price policy has attracted

the majority of low middle class customers.

Price:-

Table showing the price percieved by the respondents.

Price No.of respondents Percentage

High 10 10

Reasonable 64 64

Cheap 26 26

Total 100 100




The survey shows that 64% of respondents have ranked price as reasonable, 26% of

respondents as cheap and 10% of respondents as high. Major part of the respondents i.e. 64%,

have rated price as reasonable. Consumers do not percieve terracon to be having cheap prices

though their advertisement message claims it. Thus there is a gap between wat terracon claims

and how the consumer views it.



Quality:-

Table showing opinion about the quality of the products.

Quality No. of respondents Percentage

Excellent 22 22

Good 52 52

Average 24 24

Poor 2 2

Very poor - 0

Total 100 100




From the above picture it is clear that 52% of respondents ranked good about the quality of the

products in terracon followed by 24% as average and 22% as excellent and only 2% of

respondents did not agree with the quality and none of the respondents have commented as very

poor. There is a positive agreement among consumers on the quality of the products which a

positive sign of selling.

Sales promotion influences the customer-

Table showing agreement level of the respondents on the influence of sales promotionundertaken terracon.

Opinion No. of respondents Percentage

Strongly agree 40 40

Agree 45 45

Neutral 12 12

Disagree 3 3

Strongly disagree 0 0

Total 100 100



The above table and chart shows that 40% of respondents strongly agree with the

adequacy of the sales promotions made by terracon in influencing the customers, 45% of

respondents agree with it, 12% of respondents are nuetral and 3% of respondents do not agree.



4.1 Evaluation of Sales Promotion Pre Testing, Concurrent testing and Post-testing

In order to accomplish the activity of measuring the results in any area of business

activity related to the objectives for sales promotions evaluation criteria's are laid down to

implement the sales promotion programme. Many of which are directly related to sales.

For these cases there are not many complexities as a number of objectives as sales based

techniques can be used with relative ease. For Example it is very easy to measure sales effect

before sales promotion activities, during these activities and post sales promotion activities . In

case of objectives not related to sales, such as trial purchase, or changing consumer awareness

and attitude as resultant increase and perceived value of the product, measurement is more

difficult. In certain types of promotion, the reseller support is important and can have significant

effect on marketer's promotion performance.

Pre-testing

How sales promotion is to be communicated and what would be communicated to the

target groups is important and can be pre-tested. For example the pre-tested may find out what is

likely to be the perceived value and the risk. A customer considers whether it would be wise to

buy an unknown brand of sport shoes at a 45% discount. In this offer was there a risk of buying

an unfamiliar brand? The pre-test can be conducted to assess these factors by using focus groups

and consumer panels. Another approach, ballot method, consists of kneeling a ballot paper to a

list of consumers. They are requested to evaluate different illustrated promotion is and vote for

the most right and return the ballot to the firm. A relatively expensive but more accurate method

is a portfolio test. A portfolio of sales promotion is prepared and shown to consumers in person

and the responses are noted.

To test consumers behavior responds such as trial purchase, repeat purchase, etc.,

pretesting consists of experimenting in certain markets for individual stores in a market. All

http://drypen.in/sales-promotion/evaluation-of-sales-promotion-pre-testing-concurrent-testing-and-post-testing.html

http://drypen.in/sales-promotion/evaluation-of-sales-promotion-pre-testing-concurrent-testing-and-post-testing.html



other factors remain the same; only the sales promotion device being tested is the variable that is

manipulated.

It is often quite helpful to evaluate the responses of resellers before implementing the

promotion programme. The simplest ways to visit several important retailers and wholesalers,

discuss the programme and seek their opinion and suggestions. This may prove to be quite

favarable in case the support of resellers is considered to be of paramount importance for

promotion results.

Concurrent testing

This testing is done when the sales promotion is in progress. Concurrent testing permit

the promotion manager to modify the sales promotion, if needed. This type of testing is

conducted in terms of sales data which can be obtained on a weekly or monthly basis. If the

promotion is a consumer contest and the consumer is not require to purchase anything, the

response to promotion can be adjudged by the number of entries received at some interval and if

need be, the contest period can be extended. In case of a coupon distribution programme, similar

approach can be adopted by keeping track of coupons redeemed.

Post-testing

Post-testing is done after the promotion period is over. To assess the changing consumer

awareness and attitude, telephone calls, questionnaire mailed to the consumers and

personalinterviews can be used. In these methods, the most expensive is the personal interview

method and the least expensive is the mail. The information sought pertains to the promotion

event. In case of samples on premiums distributed through retail stores, intercept interviews at

the Point of Sale can reveal more reliable information.

To measure the sales affect, sales figures before the promotion period can be compared with

figures at the end of promotion and one month after the promotion ends. Suppose that the



promotion objective was to increase sales by 30 percent in certain period and the pre-promotion

sales for a similar period were worth 5 million rupees. The sales jumped to in excess of 5.6

million in the promotion period. This would show that the objective was achieved. It is very

likely that in the ensuing month after the promotion, the sales will come down to say 3.5 million

rupees. In the sales return to 5 million rupees on the long run, then perhaps the sales jump is

because of brand features and deal prone customers. However, if the regular sales settle at 5.5

million rupees on the long run, then definitely the promotion prove successful in increasing the

long run sales by attracting new customers and we have also attracted customers away from

other competing brands.

Reasons for Growth of Sales Promotion

There are a number of reasons that are favorable to the growth of sales promotion:

1. Increasing Competition

The air of change is gaining momentum after the introduction of economic liberalization.

Due to increase in competition, companies are finding it increasingly difficult to compete on

quality. They are therefore resorting to more innovative methods of sales promotion. In order to

have a competitive advantage over its competitors like Levis, Pepe, Killer and others, Spykar

Jeans, once a year has a grand sale of upto 50%.

2. Customers Have Become More Price Sensitive

This increased price sensitivity is a direct result of rampant inflation. Economic recession

is likely to fuel this trend further, as consumers and dealers become more sensitive towards

prices. If the customers get branded jeans at half the actual price, then they are definitely going

to make huge purchases of Spykar Jeans because they want value for their money, as they are

price sensitive.

3. Sales Promotions Generally Create An Immediate Positive Impact On Sales

Advertising, personal selling and other methods of promotion produce

slower sales response compared to sales promotion. Sales promotions are mostly for short

http://drypen.in/sales-promotion/reasons-for-growth-of-sales-promotion.html

http://drypen.in/sales-promotion/reasons-for-growth-of-sales-promotion.html



duration, for a specified period, leading to a sense of urgency in consumers to buy now. This

creates an immediate positive impact on sales.

4. Products have become more standardized

In many product categories, there is a proliferation of brands; many of them are line

extensions and me-too brands. Most brands are being perceived by consumers to be more or less

similar within a given price range because of the inability of manufacturers to develop truly

differentiated products. Under these circumstances, advertising messages are unable to strongly

influence the consumers’ perceptions and create brand franchise. As a result of these perceptions

of similarity among brands, marketers have no way but to compete on the basis of extra benefit

offered through sales promotion. Competing companies struggle to capture market share by

using every tool likely to bring sales success.

There are many unbranded jeans sold at shopping malls and places like linking road,

bandra which are bought at half the price of actual branded jeans. People who are money

conscious buy such jeans. Therefore, Spykar Jeans comes up with such discounts, which helps

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

5. Consumer Acceptance

As competition intensifies and promotions proliferate, consumers have learnt to earn the

rewards of being smart shoppers. Over a period of time, they have also learnt that brands on

promotion are not necessarily of lower quality. Spykar Jeans, if sold at disount rates, are not

perceived to be a brand of low quality. Instead, if word is out of a mega discount scheme for

Spykar Jeans, then people even time their purchase accordingly.

6. Advertising Has Become More Expensive And Less Effective

All the advertising media have become quite expensive. Audio-visual medium, which is

considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a 10

second exposure during prime time. In many cases, consumers have reached a point of boredom

due to excessive advertising on TV. Some consumers even consider advertising as an intrusion

into their privacy, leading to zapping (surfing channels). Firms with small budgets cannot



compete with big companies, which spend huge sums of money on advertising. For these small

budget firms, sales promotion is a more cost-effective promotion method to

produce sales results.

7. Trade Has Become More Powerful

Retailers and wholesalers have become powerful and find themselves in a position to

demand extra facilities from the companies. They Channel members demand more incentives to

get the desired results. Manufacturers do not seem to have any alternatives but to concede to

their demands, keeping in view the competitive market conditions. In shopping malls like Globus

and Lifestyle, decent margins have to be paid to them in order to have shelf visibility for your

brand.

8. Emphasis On Sales Volumes

Towards achieving the long-term profit goals, manufacturers try to attain

high sales volume. Brand managers and product managers find themselves under pressure to

achieve short-termsales results for the sake of their careers. Compared to any other promotional

method, sales promotion is a more effective method to generate short-term sales volume.

9. Sales Promotions Maximise Profits

A number of economic theories conclude that a company can maximise profits by

using sales promotion. Such promotions can permit price discrimination by allowing the brand to

compete in 2 or more different market segments. Sales promotion may allow a premium brand to

compete with a lower tier brand among price sensitive consumers. For example, a premium

brand of toilet soap may be on promotion in some price sensitive markets, while in the remaining

markets it is sold at its normal price.

10. Introducing an Element Of Interest:

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

the more popular interest promotion techniques are samples, contests, and sweepstakes, free



premiums and mail-in premiums. These promotions create an element of interest and excitement,

and consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc

11. Impulse Buying Is Increasing

The number of marginal customers is increasing. Displays at the point of purchases lead

to impulse buying by consumers, more so if the items on display are not expensive. There is a

popular saying in Hindi, “jo dikhta hai, voh bikta hai.”

12. Sales Promotion Specialists Are Available

As a result of economic liberalisation, the number of management institutions has

increased. This has lead to the availability of specialists, who are not only well paid but can

handle this specialised work more efficiently in the current market conditions, where sales

promotion has become more important.



CHAPTER V

FINDINGS, CONCLUSION AND SUGGESTIONS



FINDINGS

1. Price plays as the major criteria for purchase from terracon followed by variety andquality.

2. There is immense response from the respondents for improving the promotional activities

of terracon and 54% of respondents have recommended television as a promotional tool.

This intercepts the opportunity for terracon for the biziar improvement of their

promotional technique.

3. Most of the respondents are of the opinion that in order to create awareness in the minds

of the customer, proper advertisement and offers promotional activities should be

effective.

4. From the survey it is found that most of the respondents are not able to recall the different

offers provided by terracon. Its only due to lack of marketing communication.

5. It has been found that 90% of the respondents feel that sales promotion tactics undertaken

by terracon is enough to influence their purchases.

SUGGESTIONS



1. Company has to go for more advertisement in television and should consider best

measures to spread positive word of mouth to show its presence all over and reach the

mass audience.

2. Due to the threat of entry of new players and existing competitors, company needs to be

more aggressive in terms of advertising and sales promotional measures.

3. Quality of the products to be maintained and improved as customers nowadays perceive

quality as one of the prime influencer along with price.

4. Pricing policy should be altered in order to attract more customers as it is known for

cheap pricing policy.

5. The sales force should be increased and trained well to interact precisely with the

customer and to provide relevant information about the products so that customer can

make wise purchase decision.

6. After sales service should be re-looked in order to ensure customer satisfaction and long

term customer relationship.

7. They have to conduct more and more personal contact program to retain as well as

establish the new customers.

8. It is better to conduct a continuos or periodic market research to identify the position of

the market and to know about the changes that customers want.



CONCLUSION

From the research we would come to conclusion that sales promotion plays an

important role in increasing sales. And also advertising is being considered less when compared

to sales promotion. Sales promotion has been considered as primary tool for boosting the sales .



Competition is increasing and manufacturer should not only focus on customers but they

should give equal importance to its dealers.Different sales promotional technique should be used

to attract the customers as well dealers.. The competition from other players and the threat of

entry of new manufacturer made terracon company to focus on effective sales promotional

activities and keep a track of it.

During the period of my research , I got an opportunity to understand different functions

of reputed business organisations.

The concept of everything under one umbrella at competitive price brings customers to

buy product.

BIBLIOGRAPHY

1. Books

• Marketing Management – Philip Kotler

• Statistical Investigation - Gupta B.N.



• Monitoring the competition - Leonard. M. Fuld

• Consumer behavior and action - Assel Henry

2. Magazines and reports

• Business world

• Business today

•Business India

3. Websites

• www.terracontilesindia.com

• www.wikipedia.com

APENDIX

QUESTIONNAIRE

1. Name :

2. Age :

http://www.wikipedia.com/

http://www.wikipedia.com/



3. Gender :

4. Marital Status :

5. Which category you belong to?

_____Salaried _____Business

_____ Housewife _____Student

_____Others

6. Are you aware of offers in terracon?

_____ Yes _____ No

7. How did you become aware of terracon?

_____ Road Shows _____Flex/Banners

_____Word of Mouth _____Publicity

_____ Newspaper

8. Do you feel terracon is competitive than others?

______Yes ______No

9. Does the offer provide you a value for money?



______yes ______ No

10. Do you feel whether the offers are sufficient?

_____adequate _____ inadequate

11. Do you think festival seasons are apt for purchasing?

______ Yes ______ No

12. If yes, why?

____ More collection ____ Offers _____ Both

Date post:	06-Apr-2018
Category:	Documents
Upload:	renjil-mathew
View:	217 times
Download:	0 times

Project Tony

Documents