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1.1 INDUSTRY PROFILE


Ice cream derived from the earlier iced cream or cream ice is a frozen dessert usually
made from dairy products, such as milk and cream and often combined with fruits or
other ingredients and flavors’. Most varieties contain sugar, although some are made with
other sweeteners. In some cases, artificial flavorings’ and colorings are used in addition
to, or instead of, the natural ingredients. The mixture of choosing ingredients is stirred
slowly while cooling, in order to incorporate air and to prevent large ice crystals from
forming. The result is a smooth textured semi-solid foam that is malleable and can be
scooped.
In the Persian Empire, people would pour grape-juice concentrate over the snow, in a
bowl, and eat this as a treat. This was done primarily when the weather was hot, using
snow saved in the cool-keeping underground chambers known as "yakhchal", or taken
from snowfall that remained at the top of mountains by the summer capital Hagmatana,
Ecbatana or Hamden of today. In 400 BC, the Persians went further and invented a
special chilled food, made of rose water and vermicelli, which was served to royalty
during summers. The ice was mixed with saffron, fruits, and various other flavors’.
Ancient civilizations have served ice for cold foods for thousands of years. The BBC
reports that a frozen mixture of milk and rice was used in China around 200 BC. The
Roman Emperor Nero (37-68) had ice brought from the mountains and combined it with
fruit toppings Arabs used milk as a major ingredient in the production of ice cream and
sweetened it with sugar rather than fruit juices.
In the sixteenth century, the Mughal emperors used relays of horsemen to bring ice from
the Hindu Kush to Delhi, where it was used in fruit sorbets. Ice cream became popular
and inexpensive in England in the mid-19th century, due to the efforts of a Swiss emigre
Carlo Gatti. He set up the first stall outside Charring Cross station in 1851, selling scoops
of ice cream in shells for one penny to the public; previously, ice cream was an expensive
treat confined to rich people with access to an ice house. He built a large 'ice well’ for
storage of the ice that he took from Regent's Canal under a contract with the Regent's
Canal Company. By 1860, with a rapidly expanding business, he began importing ice on
a large scale from Norway.

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Agnes Marshall, regarded as the ’queen of ices' in England did much to popularize ice
cream recipes and make its consumption into a fashionable middle-class pursuit. She
wrote four books: Ices Plain and Fancy: The Book of Ices (1885), Mrs. A.B. Marshall's
Book of Cookery (1888), Mrs. A.B. Marshall's Larger Cookery Book of Extra Recipes
(1891) and Fancy Ices (1894) and gave public lectures on cooking. She even suggested
using liquid nitrogen to make ice cream.
Ice cream soda was invented in the 1870s, adding to ice cream’s popularity. The
invention of this cold treat is attributed to American Robert Green in 1874, although there
is no conclusive evidence to prove his claim. The ice cream sundae originated in the late
19th century. Several men claimed to have created the first sundae, but there is no
conclusive evidence to support any of their stories. Some sources say that the sundae was
invented to circumvent blue laws, which forbade serving sodas on Sunday. Towns
claiming to be the birthplace of the sundae include Buffalo, Two Rivers, Ithaca, and
Evanston. Both the ice cream cone and banana split became popular in the early 20th
century.
1.2 COMPANY PROFILE
Cousins group was founded by five closely related families in the year 1990. They begin
the business venture by introducing plastic moulded icecream in Kerala. Over the years,
cousins group has diversified into several areas like plastic moulding, Ice-cream etc.
Today Cousins group is a fast growing conglomerate having strength of over 250
employees. Meriiboy Icecream is a division of Cousins group that started operations in
the year 2003. The first factory was started near Kalady in consultation with Tetra Pak
Hoyer, Denmark.
As a part of market expansion, they setup the 2nd factory at Calicut in 2007 and 3rd
factory at Trivandrum in 2010. Thus, they have been able to cater the demand for Ice-
cream all over Kerala. They also have markets in Tamil Nadu and Karnataka. Today with
the help of state of the art machines and world class production techniques they produce
5 million liters of Ice cream every year. They always ensure the use of quality raw
materials produced by reputed organizations. They are proud to own a full-fledged
laboratory to test raw materials as well as finished products. Another striking feature of
their factories is cleanliness and hygiene.

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They completely understand and appreciate the sensitive nature of the product and hence
always emphasize on cleanliness. They have an expert management and production team
who ensure that world class practices are followed. Every employee joining their
organization is trained to be in line with the norms. Thus Meriiboy Ice-cream promise to
provide best quality Ice cream at affordable prices.
Meriboy ice cream gives importance to quality from sourcing raw materials to delivery of
finished goods. An innovative brand which tries to create trends in the ice cream industry.
Some of the innovative concepts developed by Meriiboy are Ice creams in real fruit
shells, Fresh fruit ice creams, Milk lolly etc. New products are developed as a result of
continuous R & D. The drive for excellence has led the organization to become a market
leader and was able to drive away the stiff competition initiated by multinationals.
A brand which started with the vision of providing quality ice cream, which grown from a
factory which manufactured 6001itres a day to 4 factories which produced a combined
volume of 10000 liters a day. Supreme Food Industries export their products to outside
state like Tamil Nadu and Karnataka. Exporting products are through cold containers.

COMPETITORS:
Competitors are Lazza, Amul, Joy, Uncle John, Vesta

COMPANY VISION:

The vision is to provide total customer satisfaction through continuous


improvement in production in process and services.

COMPANY MISSION:

The mission of the company is to deliver high quality food products that set themselves
apart from others in taste and value.

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1.3 THEORTICAL BACKGROUND OF THE STUDY


Topic of Research: ANALYSIS OF SALES PROMOTION TECHNIQUES OF
SUPREME FOOD INDUSTRIES
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 behavioural responses of the firm’s customers.
“Sales Promotion is a Marketing Discipline that Utilizes a Variety of Incentive
Techniques to Structure Sales-Related Programs Targeted to Consumers, Trade, and/or
Sales Levels that Generate a Specific, Measurable Action or Response for a Product or
Service.”
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’.

MEANING OF SALES PROMOTION


Every businessman wants to increase the sale of goods that he deals with. He can adopt
several ways for that purpose. You might have heard about “lakhpatibano”,
“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 models of television you can get a new model at a reduced price.
You may have also observed in your neighboring markets notices of “winter sale”,
“summer sale”, “trade fairs”, “discount up to 50%” and many other schemes to attract
customers to buy certain products. All these are incentives offered by manufacturers or

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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”. Personal selling involves
face-to-face contact with specific individuals, while advertising is directed towards a
large number of potential customers. They also help in increasing sales of goods.
Thus, advertising can be used as a means of communication to inform potential
customers about the incentives offered for sales promotion. Personal selling can as well
include communication of the incentives to individual customers. But, sales promotion
differs from advertising and personal selling in terms of its approach and technique.
Sales promotion adopts short term, non-recurring methods to boost up sales in different
ways. These offers are not available to the customers throughout the year. During
festivals, end of the seasons, year ending and some other occasions, these schemes are
generally found in the market.
Purpose of sales promotion:

o Attract new tries or brand switchers

o Reward loyal customers

o Increase repurchase rates

Sales promotion refers to many kinds of incentives and techniques directed towards
consumers and traders with the intention to produce immediate or short-term sales
effects. Sales promotion is a promotional marketing technique designed to create sales for
a product over a defined period of time. Sales promotion activities are measurable in
terms of products moved, coupons redeemed, number of contest entries, or other
quantifiable count. Sales promotions are short-term marketing techniques used by a
manufacturer for a specific purpose, like increasing market share or to encourage sales
during off-peak periods. Sales promotions are often one component in an advertising or
marketing campaign. A variety of sales promotion tools are available, such as price
reductions, product giveaways and special trial periods.

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In marketing, sales promotion is one of the four aspects of promotion. Sales promotions
are non-personal promotional efforts that are designed to have an immediate impact on
sales. Sales promotion is media and non-media marketing communications employed for
a per-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. “Sales promotion, a key ingredient in marketing campaign,
consists of a diverse collection of incentive tools, mostly short term, designed to
stimulate quicker or greater purchase of particular products or services by consumers or
the trade.” in a specific sense refers those sales activities that supplement both personal
selling and advertising an coordinate them an help to make them effective, such as
displays, shows and expositions, demonstrations, another non-recurrent selling efforts not
into the ordinary routine.”

Sales promotion is frequently defined in terms of what it is not, typically as those


marketing communications activities which do not fall into the categories of advertising,
selling or public relations. This is not very helpful, but definitions trying to explain what
this encompasses are often flawed, by failing to embrace all of the marketing tools
regarded as sales promotions in practice. It is a marketing ‘marketing activities usually
specific to a time period, place or customer group, which encourage a direct response
from consumers or marketing intermediaries, or an added item, service or opportunity.

OBJECTIVES OF THE SALES PROMOTION

• To introduce new product or service: Sales promotion is used to motivate prospective


consumers to try new products and services. Dealers are also induced to introduced new
products and services in the market, usually, free samples are provided through dealers
during such introduction.

• To attract new customers: Sales promotion roles also play an important role in
attracting new customers for an organization.

• To induce existing customers to buy more: Sales promotion devices are most often
used to induce the existing customers of a Finn to buy more Product development and
offering new products.

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1.4 LITERATURE REVIEW

 Karve Sunil, (2012) in the article “Role of Advertising and Promotion in


Retail Market” opines that Advertising is a growing business in India today
and plays an important role in promoting goods and services. But the growing
market-size, intense competition and changing life style and aspirations of
people are challenges faced by manufacturers and marketers in sustaining
competition. In this article they tried to explain effectiveness of advertisement
and promotional strategies.
 Shamout Dawood Mohamed (2016) in his article “The Impact of Promotional
Tools on Consumer Buying Behavior in Retail Market” expressed the impact
of the most used tools of sales promotion in retail sector such as: coupons,
sample, price discount and buy one get one free on consumer buying behavior
from two aspects; brand switching and customer loyalty.
This study identifies that sales promotion tools are playing an important role to
stimulate customers towards buying any promoted product and that will
definitely increase dealers and retailers profit and market share. In this study, it
showed that consumers’ behavior can be positively induced by using various
promotion tools such as; price discount, samples and buy one get one free, on
the other hand, it found that promotion tools such as coupon have no influence
on consumer buying behaviors.
 Olusola Adekoya (2011) in his article “The Impact of Advertising on Sales
Volume of a Product” demonstrates the impact of advertising on sales and
profit of a business organization. This study tells that, advertising can play a
very important role in company’s establishments.
The findings of this study reveals that advertising not only helps to maintain
superior stand in the industry and profit maximization, it provides information
about products or services and also gives consumers free television and radio
programmes. This study also tells that “No matter how successful a product or
service is for a company and regardless of the edge the company has in the
industry, advertising is a must and should be a continuous activity”.

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 Ai Jean Wong and Yazdanifard Rashid (2015) in their article “The Review
of how Sales Promotion Change the Consumer’s Perception and Their
Purchasing Behavior of a Product” opines that besides serving as a short-term
profit marketing strategy, sales promotion has the potential in helping the
marketers to achieve long-term profits through influencing the consumer’s self-
perception and self-satisfaction and in the development of loyal customers.
This article has discussed about how sales promotion strategy changed
consumers’ cognitive thinking and purchasing behavior. Through the
understanding of the relationship between sales promotion and the consumers’
cognitive thinking and purchasing behaviors, the marketers are more likely to
produce a more effective sales promotion strategy to increase their sales profit.
 Kourubeja Satnam (2014) in his article “Effect of Sales Promotion Mix on
Customer Satisfaction: A Study with Reference to Shopping Malls” express
that to compare combined effect on sales promotion schemes on customer
satisfaction with reference to shopping malls in FMCG sector and to compare
the effect of various sales promotion schemes on customer satisfaction with
reference to shopping malls in FMCG sector. The results of the study reveal
that those sales promotion schemes play a vital role in satisfying the customer
expectations.
 Rajgopal, (2010) in his article “ Point-sales-promotions and buying
stimulation in retail stores” opines that to influence the buying behavior of the
customer, the retail organizations must be proactive in launching attractive
promotional campaign and introducing change in promotional policy must be
adopted.
 Vecchio, Del, Devon et.al. (2006) conducted a 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 the 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

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pack, and in-store display, on product trial and repurchase behaviour of consumers.
The moderating role of fear of losing face on the relationship between the sales
promotional tools and product trial was also examined. The results of the 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.
 Kumar, V. and Swaminathan, 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 elasticities 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 elasticities are
much smaller in magnitude than the average self-cross price elasticity.
 Lewis, Michel (2004) developed an approach for simultaneous measurement of the
influence of a dynamic loyalty program and more traditional short-term promotions.
They argue that the loyalty programs 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 L Duncan (2004) investigated how the depth of a
current price promotion affects future purchasing of first time and established
customers based on three large scale field experiments on durable goods sold through
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)

1.5 CONCEPTUAL FRAMEWORK

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A conceptual framework is an analytical tool with several variations and contexts. It is


used to make conceptual distinctions and organize ideas. Strong conceptual frameworks
capture something real and do this in a way that is easy to remember and apply.
Economists use the conceptual framework of "supply" and "demand" to distinguish
between the behavior and incentive systems of firms and consumers.

2.1 PROBLEM IDENTIFICATION

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This empirical study was conducted among customers of Supreme Food Industries Ltd. to
study the analysis of sales promotion techniques in the organization. The purpose of this
study was to understand whether the customers are satisfied with the promotion
techniques conducted by the organization. Sales promotions are the set of marketing
activities undertaken to boost sales of the product or service.
Sales promotion is very important as it not only helps to boost the sales but it also helps a
business to draw new customer while at the same time retaining the older one. So each
and every organization has adopted very good sales promotion techniques in order to
understand the consumer behavior and customer satisfaction
Sales Promotion is Stimulation of sales achieved through contests, demonstrations,
discounts, exhibitions or trade shows, games, giveaways, point-of-sale displays and
merchandising, special offers, and similar activities.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.
RESEARCH QUESTION

1. Why is the study conducted?

2. Who are the target groups for the study?

3. Where is the study conducted?

4. When and how is the study conducted?

5. What are the effects of sales promotion on the sales volume and profit of
companies?

6. What are the effects of sales promotion on consumer demand?

7. Is sales promotion an effective means of product promotion?

8. Does sales promotion bring any increase when there is a setback in business?

2.2 PROBLEM FORMULATION

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Problem formulation is the step in which it identifies controllable and uncontrollable


variables in a system that constitute the problem. Controllable variable is the variable that
the company can control within their limits, on the other hand uncontrollable variables
are the variable that cannot be controlled by the organization to its limit. A well
formulated problem is solved and often the process of problem formulation leads to
problem solution.

CONTROLLABLE VARIABLES UNCONTROLLABLE VARIABLES


1. Price 1. Competitors
2. Customer Service 2. Government policies
3. Offers & Benefits 3. Suppliers
4. Promotions 4. Brand switching
1. CONTROLLABLE VARIABLES

1. Price

It plays an important role in determining the perception of the customers towards the
company’s products. Price should be framed in such way that it is given maximum
returns at minimum cost. It can be considered as a main element which can be used to
position its product in the minds of the customers.

2. Customer service

Products when viewed from the tangible angle they are purchased by the customer to
use for maximum number of years. Sometimes these tangible products purchased have
defects within a short duration and requires a customer service support. Abiding the after
sales service for the product as ice cream can also make the customer attached to the
company and enhancing its image.

3. Benefits

The benefits in the customer point of view will form a much potential effect on how
the company’s product/ice cream is being perceived.

Offers- There should be offered which will have potential customer being turned
towards the company for making purchases. When they make such purchases, they will
have a genuine perception about the product.

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After sales service- Provision of after sales service makes the products move at a faster
rate from the showroom and factory. Bearing the after sales service will have good
perception of acceptance of the products by the customer.

Free shipping- This has been provided by many of the company and many have been
providing this service to serve the customer interest. Ice cream baring the free shipping
will have a cost effective perception of the customer.

4. Promotions

This is also a variable which is in the control of the company this should be enhanced by the
company to get maximum customers to the company and to make them perceive about the
awareness of the company’s ice cream. This should be done in very useful ways to attract the
customers towards them. However, the company has good promotions if used effectively can be
useful.

2. UNCONTROLLABLE VARIABLES

1. Competitors

In the recent scenario, every market is faced with the huge competition from the
companies from nook and corner of the world and the country. Competitors will be
seeking an opportunity to grab a larger market share and will come up with innovative
ideas for setting up a large customer base in the market. Similarly, there are the
manufacturers which offer different specification with new innovative creations in their
products. The ice cream offered should bear a new connectivity that will make the
products much more valuable in the eyes of the customers.

2. Government policies

This is one of the main components of the business environment and all businesses are
affected by the government policies. Government plays a pivotal role in investigating the
activities of the business. The policy framed may benefit or sometimes affects the way of
operating the business. The policies framed by the government will have to be adjusted to
meet its policies will have impact on ice cream price so this will in turn affect the
perception about the company’s products.

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3. Suppliers

These are the persons who provide all types of required wood for the company at a fixed
price or allowing them to bid the price at the forest depot. Suppliers will offer the
different types of wood which will vary in terms of quantity, quality and price. Hence, the
company at times will have to pay more price than the normal price for them due to the
scarcity which will in turn have cascading effect on the price the ice cream is sold and
thereby will affect the perception of the stable customer.

4. Brand switching

The customer has a history of brand switching from one brand to another, depending on
the maximum benefit they ought to receive. The customer may seek satisfaction.
Customer interest should be served to position the product in a customer's mind the same
as it was perceived earlier. Due to short supply of the wood in the factory the ice cream
was made from different wood which has in turn perceived differently by the customer.

2.3 PROBLEM SPECIFICATION

Problem specification explains and explores the relationship between controllable and
uncontrollable variables. Every controllable has an equal impact on the uncontrollable
variable and vice-versa.

Relationship between controllable and uncontrollable variable

1. Competition can be controlled by price

Price is the main variable which determines the position of the product by the customer.
Due to the large number of competitors spread across wide area, it will trigger the
strategy that will be crucial for the company’s survival.

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2. Government policies can be faced by benefits

There is no business in which government does not interfere. The policies of the
government if stable, doesn’t matter to the business. The outcomes of the policy of the
government may be favourable or unfavourable to the business. When there is change in
the policy's benefits can be given to the customer to keep the perception of the company
product standard. This should be entertained by adhering the policies of the doing the
business.

3. Suppliers can have bearing on customer service

Suppliers will supply the available raw materials to the company. The quality of the type
of wood being supplied will differ and at the time of scarcity the company should
manufacture with available quality stock. Customer service if applied will have good
support in rectifying the ice cream being taken by the customer and help them to solve
the maladjustments in ice cream which will in turn have an effect on the perception of the
customer.

4. Brand switching can be handled through promotions

Brand switching is common when the customer doesn’t become aware of the products
that are being sold by the company. They are moved by the products that have the
greatest potential and which motivate them to buy the products. Promotion is the way
which will keep the customer well informed about the brand of the ice cream.
Undertaking good amount of promotion will bring the customer closer to the product of
this company and ice cream purchased by them will have awareness prospects in the
minds of the customer. Hence, dependent and independent variables can be adjusted to
keep the products to be Perceived by the way the company wants and to keep their
perception constant. Controllable variables will be handled and modified to adjust to the
uncontrollable variables. Independent variables cannot be controlled by the company and
thus dependent variables shall be controlled by the company for perceiving the
company’s products as stable by the customer.

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3.1 STATEMENT OF THE PROBLEM


In the present scenario, there is huge competition in the ice-cream industry has greater
significance growth. For sustaining and gaining competitive advantage in the market it
needs to be a strong sales promotion scheme. This study forecasts to identify the
importance of sales promotion activities in the ice cream industry. How the dealers
getting advantage with the promotional schemes also studied.

3.2 SCOPE OF THE STUDY


 The geographical scope of the study extent to the Customers in Supreme Food
Industries the theoretical scope of the study included various sales promotion
methods, effectiveness of sales promotion etc.

 The study covers the effectiveness sales promotion tools which carried by the
Meriiboy, Ernakulam.

 These study covers to know the customers opinion about the sales promotion
activities.

 These study covers to know whether the customers attracted to the


advertisement strategy used by the Meriiboy.
3.3 OBJECTIVE OF THE STUDY
 To study consumer preference with respect to sales promotion in MERIIBOY
 To study the tools or techniques of sales promotion, impact on sales, parties involved
in sales promotion, management of sales promotion measures, need for sales
promotion strategy and its importance, and role of sales promotion strategy in
progress of number of customers, sales volume, profits and progress of the business
as a whole.
 To find out the differential effects of Sales Promotions, viz., Price Promotion and
Premium Promotion on Consumer Based Brand Equity
 On the basis of study, to summarise the findings and give suggestions for further
improvement in sales promotion strategy practices and its contribution in achieving
objectives of sales promotion.

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3.4 RESEARCH DESIGN

The research design indicates the type of research methodology undertaken to collect the
information for the study. The researcher used descriptive research design for the
research study. The main objective of using descriptive research is to describe the state of
affairs as it exists at present.

Here the descriptive form of research method is adopted for the study. The idea behind
this type of research is to study frequencies, averages and other statistical calculations.
The research is quantitative in nature. The data collected is analyzed statistically to
interpret finding and results. Although this research is highly accurate, it does not gather
the causes behind situation.

3.5 DATA SOURCE

Primary Data

Primary data is the information obtained directly from the first hand sources which means
survey, experimentation and observation. Questionnaire and Observation are the two
basic means of obtaining primary data. It is being adopted by research workers, private
and public organizations and even by governments. In this method questionnaire is sent
to the person concerned with a request to answer the questions and return the
questionnaire. A questionnaire consists of a number of questions printed or typed in a
definite order on a form or set of forms.

Secondary Data

Secondary data was collected from the Company records, magazines, journals, websites
and Internet. Usually the secondary data will be second hand information, which is
collected by someone for any further purposes and the secondary data will be major
records of the organization and its having the nature of ready.

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3.6 SAMPLING DESIGN

 Sample units

Target audience chosen in the research are customers of SUPREME FOOD


INDUSTRIES, ERNAKULAM.

 Sample size

The sample size was 100 respondents.

 Sampling technique

The sampling technique used is convenience sampling technique.

3.7 FIELD WORK AND AREA OF STUDY

I’m doing the field work on the topic analysis of sales promotion techniques at
MERIIBOY and Area of study is the customers of the company. I have a structured
questionnaire which is corrected by the guide.

3.8 RESEARCH INSTRUMENT

The primary data from 100 respondents is collected by these methods:

 Questionnaire:

The Structured questionnaire is used as the research instrument for the study in which all
the questions are predetermined before conducting the survey. The form of question is of
both closed and open type, which include dichotomous questions were yes or no options are
provided, multiple option single response where options are given and respondent have to
choose one option from that, Likert scale format where the participants were asked to
indicate the extent to which they agreed or disagreed with the statement by selecting one of
the following five choices: Strongly Agree (SA), Agree (A), Neutral (N), Disagree (d),

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Strongly Disagree (SDA). The questionnaire was designed in such a way that the questions
are short and simple and is arranged in a logical manner.

 Interviews:

General interviews were undertaken with the customers in random in order to gain the
necessary information.

 Observations:

Direct observation in the field area for insights and identification and analysis of the
research problem.

3.9 STATISTICAL TOOLS FOR ANALYSIS

The statistical tools such as Microsoft Excel and SPSS (IBM) were used for the study.
Under SPSS data analysis, one way Anova, Chi square and regression were used to test
the validity of the data.

3.10 LIMITATIONS OF THE STUDY

 Some of the respondents were afraid to give true information in some cases. There
were also situations of bias on the side of the customers while answering to the
questions.

 The information is collected is very personal in character.

 The time and finance available for the study are very limited.

 Constraints regarding entry to various departments.

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DATA ANALYSIS AND INTERPRETATIONS


Data analysis is the process of bringing order, structure and meaning to the mass of
collecting data. After the collection of data, it has to be processed and analyses in
accordance with the outline laid down for the purpose at the time of developing the
research plan. Then the data are studied from as many angles as possible to explore new
facts. Finally the data are obtained from the sample which is analyzed through qualitative
and quantitative.

4.1 SOCIO DEMOGRAPHIC BACKGROUND OF RESPONDENTS

TABLE 4.1: DEMOGRAPHIC DETAILS

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DEMOGRAPHIC DETAILS FREQUENCY PERCENTAGE

Gender Male 52 52.0


Female 48 48.0
Total 100 100.0
Age Between 16-25 31 31.0
Between 26-35 42 42.0
Between 36-45 18 18.0
45 and above 9 9.0
Total 100 100.0
Marital
Married 78 78.0
Status
Unmarried 22 22.0
Total 100 100.0
Occupation Student 17 17.0
of the Business 22 22.0
Respondent
Working Professionals 52 52.0
Others 9 9.0
Total 100 100.0
Monthly 5000-10,000 9 9.0
income 10,000-15,000 44 44.0
15,000-20,000 35 35.0
20,000-25,000 10 10.0
Total 100 100.0
SAMPLE SIZE (N) = 100 (SOURCE: PRIMARY DATA)

INTERPRETATION:

Total sample which is taken for the study is 100. Gender, Age, Marital status, Occupation
of the Respondent, Monthly income is the demographic factors that have been considered
for the study. Considering gender group, an equal representation of gender in customers.
Most of the respondents belong to 26-35 age group with 42 percent and 16-25 age group
are considered as least with 31 percent. Among marital status, most of the respondents are
married with 78 percent. There’s only 22 percent who are unmarried. In case of
Occupation of the Respondent, most of the respondents fall under the category of
Working Professionals with 52 percent. When we focus on monthly income of the
customers most of the respondents are earning 10,000-15000 with a percentage of 44.

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TABLE 4.2 FACTORS CONSIDER BY THE RESPONDENT WHILE


PURCHASING
Cumulative
Frequency Percent Valid Percent Percent
Valid Advertisement
45 45.0 45.0 45.0

Quality 24 24.0 24.0 69.0


Company
6 6.0 6.0 75.0
image
Price 25 25.0 25.0 100.0
Total 100 100.0 100.0

INTERPRETATION:
From the above table it is clear that, about 45% of the respondents prefer
advertisement as main factor while purchasing. About 24% respondents prefer
quality, 25% of the respondents prefer price and remaining 6% of the respondents
prefer company image as factors consider while purchase products.

TABLE 4.3 RESPONDENTS OPINION TOWARDS SALES


PROMOTION ACTIVITIES

Frequency Percent Valid Percent Cumulative Percent


Valid Very good
12 12.0 12.0 12.0

Good 77 77.0 77.0 89.0


Neutral 11 11.0 11.0 100.0
Total 100 100.0 100.0

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INTERPRETATION:
Cumulative
Frequency Percent Valid Percent Percent
Valid Highly satisfied
21 21.0 21.0 21.0

Satisfied 75 75.0 75.0 96.0


Neutral 4 4.0 4.0 100.0
Total 100 100.0 100.0
From the above table it is clear that, about 77% of respondents’ opines that sales
promotion techniques implemented by the company is good, about 12% of
respondents’ opines that it is very good, and remaining 11% of respondent’s neutral
in their decision.
TABLE 4.4 OPINION ABOUT THE ADVERTISEMENT IN
MERIIBOY

INTERPRETATION:
Advertisement at the big bazaar is satisfied, about 21% of respondents opines that it
is highly satisfied and remaining 4% of respondent’s neutral in their decision.

4.5 INTERNAL CONSISTENCY OR RELIABILITY


Internal consistency or reliability defines the consistency of the results delivered with a
test, ensuring that various items under the assessment of the study are measured correctly
and reliably by respondents on a five point Likert scale. This is analyzed statistically
through Cranach’s coefficient alpha of reliability Alpha (α) which is depicted below.

Reliability Statistics
Cronbach's Alpha N of Items

.776 9
(SOURCE: PRIMARY DATA)

INTERPRETATION:

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Internal consistency reliability is a measure of how well the items on a test measure the
same construct or idea. Since the Cronbach’s alpha value is 0.776, which is greater than
0.70, we can conclude that there exist high level of internal consistency or reliability for
the scale of 9 items developed in the structured questionnaire.

4.6 CHI-SQUARE TEST


TABLE 4.6.1: TESTING ASSOSCIATION BETWEEN GENDER AND
SALES PROMOTION TECHNIQUES

Hypothesis
H0: there is no association between gender and sales promotion techniques.
H1: there is an association between gender and sales promotion techniques.
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 6.123a 6 .410


Likelihood Ratio 6.734 6 .346
Linear-by-Linear Association .025 1 .875
N of Valid Cases 100
Chi Square test: 6.123 p value = .410 (SOURCE: PRIMARY DATA)

INTERPRETATION:
It is observed that p value is 6.123>0.05, we accept H1 and conclude that there is
association between gender and sales promotion techniques.

TABLE 4.6.2: TESTING ASSOSCIATION BETWEEN AGE AND


SALES PROMOTION TECHNIQUES

Hypothesis:

H0: There is no association between age group and sales promotion techniques.

H1: There is an association between age group and sales promotion techniques.

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Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
a
Pearson Chi-Square 4.129 4 .389
Likelihood Ratio 4.168 4 .384
Linear-by-Linear
.275 1 .600
Association
N of Valid Cases 100
Chi Square test: 4.129 p value = .389 (SOURCE: PRIMARY DATA)

INTERPRETATION:
It is observed that p value is 4.129> 0.05, we accept H1 and conclude that there is
association between age group and sales promotion techniques.

TABLE 4.6.3: TESTING ASSOSCIATION BETWEEN THE


MONTHLY INCOME OF THE RESPONDENTS AND FACTORS
DETERMINING PURCHASING BEHAVIOR

Hypothesis:

H0: There is no association between the monthly income of the respondents and factors
determining purchasing behavior.
H1: There is an association between monthly income of the respondents and factors
determining purchasing behavior

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)

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Pearson Chi-Square 11.146a 9 .266


Likelihood Ratio 13.593 9 .138
Linear-by-Linear
.413 1 .521
Association
N of Valid Cases 100
Chi Square test: 11.146 p value = .266 (SOURCE: PRIMARY DATA)

INTERPRETATION:

Since the p-value 0.266>0.05, we accept (H1) and conclude that “there is an
association between the monthly income of the respondents and factors influences
purchasing behavior.”

TABLE 4.6 KMO AND BARTLETT’S TEST

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling .843
Adequacy.
Bartlett's Test of Approx. Chi-Square 176.64
Sphericity 9
df 36
Sig. .000

(SOURCE: PRIMARY DATA)

INTERPREATATION:
Since the KMO value is 0.843, it is sufficient to run the factor analysis. Since Bartlett’s
Test value is.000 which is less than 0.05, we reject the null hypothesis and conclude that
there is a correlation between attributes, thus factor analysis is appropriate.

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5.1 FINDINGS OF THE STUDY


From the survey conducted at SUPREME FOOD INDUSTRIES, the following findings
were observed:

 About 42% respondents belong to the age group of 26 to 35 years.

 31% of respondents belong to the age group of 16 to 25 years,

 18% of respondents belong to the age group of 36 to 45 years and about 9%


belong to the age group of 45years and above.

 52% of respondents are male and 48% respondents are female.

 Most respondents walk into the store are Working professionals, i.e., about
52% 17% students, and about 22% are businessmen.

 About 46% of the respondents earning between Rs.30000 to 50000 every


month.

 About 30% of respondents are earning between 15000 to 30000.

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 About 45% of the respondents prefer advertisement as main factor while


purchasing. About 24% respondents prefer quality, 25% of the respondents
prefer price and remaining 6% of the respondents prefer company image as
factors consider while purchase products.

 About 77% of respondents’ opines that sales promotion techniques


implemented by the company is good, about 12% of respondents’ opines that it
is very good, and remaining 11% of respondents neutral in their decision.
 Out of 42 respondents, in the age group between 26 to 35 years, 23 respondents
prefer advertisement as major factor in purchasing decision.

 Out of 62 male respondents, 45 male respondents preferred advertisement and


quality as their main factor for purchasing decision. And about 24 female
respondents prefer advertisement out of total 38 female respondents.
 Working professionals preferred advertisement and price as the main factor for
purchasing decision, i.e. about 37 respondents out of 52 respondents.

 More respondents, earning between Rs.30000-50000 monthly preferred


advertisements and quality as their main factor for purchasing decision, i.e.
about 34 respondents out of 46 respondents.
 Promotion activities influence the happening of sales and retaining the
customers.

 Promotional activities that are adopted by MERIIBOY are according to the


consumer’s perception.

 There is a good level of communication between the company and customers.

 Customers are satisfied with the quality of the product and distribution network.

 The presence of natural ingredients can influence the purchase decision of the
majority of customers.

 The majority of the customer believes that the value of the product is determined by
its characteristic features.

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 Most of the dealers & distributors feel that a good product always delivers a quality
promised.

 The majority of the customer agrees that MERIIBOY ice cream tastes good and it
stands for better quality.

 Most of them also feel that MERIIBOY ice creams are value for money products.

 MERIIBOY ice creams owing the natural ingredient of pure milk, butter, sugar are
used.

 MERIIBOY ice cream companies are providing natural real ice cream.

 The sales flow is like from company to distributors for distributors to dealers and
dealers to retail with their percentage of commission.

 MERIIBOY ice creams owing the natural ingredient of pure milk, butter, sugar is
used.

5.2 SUGGESTIONS

 Sales promotion activities influence the happening of sales and retaining the
customers. Hence it is better to continue with the promotional activities.
 Price off is the most preferred promotional activity by the dealers. Hence
concentrating more on price off can increase the sales.
 Revise the pricing of the products.
 Improve advertisements through media. Can make use of social media for
advertising which is less expensive.
 Price off should be encouraged by companies to attract more distributors.
 From the findings it is shown that the push factors such as buy two get one or
giving extra policy are less so if we can improve that we can get more market
share.
 MERIIBOY Ice creams are mostly concentrated on family pack sales so they have
to concentrate the other products in the same manner.
 They have less sales on credit basis if they have trustworthy dealers improve
credit sales also.

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5.3 CONCLUSIONS

The project was conducted to ANALYSIS OF SALES PROMOTION TECHNIQUES


OF SUPREME FOOD INDUSTRIES, IN CHELAMATTOM. It was done by
conducting a survey among 100 customers.

Promotion is an important function of any organization in today’s market. Promotion


deals with various promotional techniques for improving the sales and brand awareness.
For a new boom company, like MERIIBOY, sales promotion activities help to increase its
market share and customer base.

Knowing the importance of the promotions in today's market, I want to conclude by


saying that the MERIIBOY ice creams should carry out the various promotional
programs for increasing the sales and thereby increasing the market share in the ice cream
industry.

It can be concluded that a good sales promotion system will helps in achieving the
organizational goal and can make company successful.

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BIBLIOGRAPHY

Books

1. KothariC. R, “Research Methodology”, Mishra Prakashan, New Delhi.

2. Philip Kotler, Kevin lane Keller :(2014) “Marketing Management”, 12 th edition,


Pearson Education Inc. Publication.

3. Consumer Behavior- Satish K. Batra& S H Kazmi, Excell Books, 2/e

4. N. Rajannair Marketing management educational publishers, New Delhi.

5. Douglas J. Darymple, Leonard J. Parsons “Marketing Management” Wiley & Sons.

Articles

1. Karve, S. (2012). Role of Advertising and Promotion in Retail


Market. National Monthly Refereed Journal of Research in Commerce &
Management, 1(3), 178-183.

St. Aloysius Institute of Management and Information Technology (AIMIT)s, Mangalore


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2. Dawood Shamout, M. (2016). The Impact of Promotional Tools on Consumer


Buying Behavior in Retail Market. International Journal of Business and
Social Science, 7(1), 75-85.
3. Adekoya, O. (2011). The Impact of Advertising on Sales Volume of a Product.
4. Ai Jean, W., & Yazdanifard, R. (2015). The Review of how Sales Promotion
Change the Consumer’s Perception and Their Purchasing Behavior of a
Product. Global Journal of Management and Business Research: E-
Marketing, 15(5), 33-37.
5. Rajgopal. (2010). Point-sales-promotions and buying stimulation in retail
stores.
Web sites

 http://search.proquest.com/business/results.expandedbasicsearchbox.searchfor
m (14/09/2017).
 http://www.projectfever.com/index.php?
main_page=product_info&products_id=22 (21/10/2017)

St. Aloysius Institute of Management and Information Technology (AIMIT)s, Mangalore