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Project Report On Sales Promotion
Project Report On Sales Promotion
CHAPTER – 1
INTRODUCTION
groups obtain what they need and want, through creating, offering and
- Philip Kotler.
economics which deals with the creation of time, place and possession utilities
and that phase of business activity through which human wants are satisfied,
product and service specifications and then in turn helping to make it possible
for more and more of consumers to enjoy more and more of these products
and services.
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Companies have to identify long and short term marketing opportunities and
the given market. Having selected the market, the companies need to develop
a differentiating and positioning strategy for the target market. The marketing
marketing expenditures and the marketing mix. The final step is organizing the
Marketing Mix
Marketing mix is the set of marketing tools that a firm uses to pursue its
• Product
• Price
• Place
• Promotion
Product:
Product stands for the firm’s tangible offer to the market, including the product
quality, design, features, branding and packing. It deals with new product
development, product life cycle, product mix, product lines, branding and
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Price:
Price is the monetary value of the product. Price deals with selecting the
and credit terms. It is very important to the customers as it decides the cost
Place:
This marketing tool stands for the various activities the company undertakes
offer to the target market. To the customer, this marketing tool refers to
convenience.
Promotion:
public relations and motivation of sales force. To the customer this tool
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Advertising:
Direct Marketing:
It refers to the use of mail, telephone and other non-personal contact tools
prospects.
Personal Selling:
Face to face interaction with one or more prospective purchasers for the
Sales Promotions:
promotion activities.
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Sales Promotion
services by consumers.
Sales promotion tools vary in their specific objectives. They may be used
switchers because non-users and users of other brands do not always notice
a promotion. Sales promotions are thus also seen as a tool for breaking down
supply and demand and differences in customer segments. They also let
To use sales promotion, a company must set objectives, select the right tools,
develop the best program and implement it and evaluate the results.
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The specific objectives set for sales promotions will vary with the type of
purchasing of larger sized units, building trial among non-users and attracting
switchers away from the competitor’s brands. For trade promotions, objectives
may include; including retailers to carry new items and higher level of
building brand loyalty of retailers and gaining entry into new retail outlets. The
relationship building.
• Samples:
in the hope that they will buy the product. Samples may be free or
discounted.
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• Coupons:
Coupons are certificates that give buyers a saving when they purchase
• Rebates:
Rebate is also known as cash refund offers. Rebates are offers to
coupons except that the price reduction occurs after the purchase
• Price Packs:
Cents-off deals or price packs offer consumers savings by way of
package.
• Premiums:
These are the goods offered either free or at a low cost as an
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• Prizes:
They are offers of chance to win something such as cash, trips or goods –
• Tie-in Promotions:
• Cross Promotions:
Cross promotions involve using one brand to advertise non-competing
brand.
• Advertising Specialties:
These are useful articles imprinted with an advertiser’s name, given as
gifts to consumers.
• Patronage Rewards:
They are cash or other awards for the regular use of company’s products
or services. They are values (in cash otherwise) that are proportional to
• PoP Promotions:
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consumer promotions (42%). The major trade promotion tools are as follows;
• Discounts:
It is also known as price-off or off-invoice or off-list. Discounts price cut off
• Allowances:
They are the amount offered in return for an agreement by the retailer to
otherwise.
• Free Goods:
Free goods are the extra merchandise offered to middlemen who buy a
Companies also offer push money and specialty advertising items to the
middlemen.
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• Sales Contests.
Clearly, sales promotions play an important role in the total promotion mix. To
use it well, the marketer must define the sales promotion objectives, select the
best tools, design the sales promotion program, pretest and implement the
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INDUSTRY PROFILE
Industry
India is the fourth largest economy in the world and it’s the largest
Bank’s President James D. Wolfensohn confirmed that India is not the world’s
4th largest economy after USA, China and Japan in PPP (Purchasing Power
Parity). It is also one of the ten fastest growing economies in the world.
and even in the present worldwide economic slowdown, has maintained GDP
India today is 7th most attractive destination for foreign direct investments,
after US, China, Brazil, Mexico and Germany. Besides, India offers higher rate
Out of 1 billion population the upper and middle class constitutes 20% or
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2. Levels of affluence are high- with the number of individuals in the “high:
statistics.
high as three to five times higher as the official statistics, on account of the
5. Customs duties and tariffs have been drastically reduced, in keeping with
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product range are now permitted for import into India under OGL or the
6. Despite the cut in duties, the rate of customs duties is fairly substantial
demand for furniture, hardware and fittings, DIY equipment, lighting and
7. While the Indian middle class still does not have as high a rate of
obsolescence as the US, and tend to use their furniture for several years
8. All the above factors put together make manufacturers and retailers of a
already entered the market and have been extremely well received by the
market.
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indicates a huge potential for growth. It is estimated that the furniture industry
total furniture industry, out of this 20% is replacement and 20% is new.
The furniture industry employs a total of around 30,000 workers. The future
several agreements have been signed between local producers looking for
opportunity in costs.
From the commercial point of view, India shows good perspective to sell
furniture in the following years. First of all, because its size and secondly due
India is one of the largest consumers of wood in South East Asia. Until a
few years ago the county had considerable quantities of available tropical
woods. The most common species in Indian forests are teak, rosewood,
ebony, laurel, pine, cedar and rubber trees. Supply of these “ready to uses”
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6,000 hectares replanted almost every year since 1994. Kerala state (South
Ivory Cost, Cameroon, Nigeria, Ghana, South Africa and New Zealand and to
Most soft and hard woods are imported from Russia, Scandinavia and
other South East Asian counties. MDF is imported from Europe, and there is
also a small local production. Veneered panel are becoming more popular in
India and are imported from the European Union and the USA.
The total size of Indian furniture industry is estimated at Rs. 350 thousand
million but almost 85% of this is unorganized. The remaining 15% is organized
The share of the wooden furniture market is estimated at Rs. 600 million.
economy. Much of this growth has been fuelled by the increasing access to
of India’s entry into the WTO in the year 1990s. There is a noticeable shift in
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technology.
stress on the use of machines, overall scenario reveals that almost 80% of the
huge demand in metros and Class II cities all over India. The old economy
CHAPTER - 2
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REASEARCH DESIGN
strategies at Ferror Dek Pvt. Ltd. The intention of the study is to find what
The main aim of the study is to uncover new relationship and identify any
best, it is vital to stand out in the crowd. The study was undertaken to explore
how a company or brand can ensure a store that stands out and not get lost in
the crowd.
1. To study the various promotional strategy adopted by Ferror Dek Pvt. Ltd.
2. To find out the footage of Ferror Dek Pvt. Ltd. With respect to other players
in the market.
3. To observe and understand the practice followed by Ferror Dek Pvt. Ltd.
organization.
This project was undertaken for a specific period in Ferror Dek Pvt. Ltd.,
The prospect of the furniture sector in India seems positive. The Indian
furniture industry has awakened to interesting times! The last ten years have
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longer look for mere practicality in furniture, instead, they look for theme
furnishing, i.e. lifestyle living. Realizing the tremendous market potential and
2. The study was conducted under the assumption that the information
3. The analysis and suggestion are given only with respect to marketing
be given.
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organization.
In order to fund out the market realities, the researcher visited the
With a view to understand the crunch of the matter and to find out
questionnaire.
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questionnaire method. The questionnaire has been designed with both open
ended and closed ended questions. Apart from this, the research instrument
Primary Data:
the marketing executives of the company. Data was also obtained from the
Secondary Data:
Here the information is obtained from the brochure of Ferror Dek, books,
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SOURCES OF DATA
Questionnaire Newsletter
Observation Journals
Interviews Magazines
Visits to other Newspapers
Companies Information Books
Through Departmental heads Websites
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CHAPTER – 3
COMPANY PROFILE
Ferror Dek Pvt. Ltd. promoted by Mr. Binny Kuriakose is one of India’s
of projects.
It was a modest beginning for Ferror Dek with a few orders for home
furnishing. Very soon as the scope of the business grew; it started expanding
into diverse activities. It is only a year old but the company has shown
spaces to derive maximum utility value for every furniture solution. The
board, MDF board with post form finish, MDF with veneer finish and MDF with
PVC foil membrane, 2mm PVC edge banded shutter etc. The whole range of
machinery from Germany and Italy to carve artistic niche for customers. It
uses high quality raw material for all solutions and these are available in a
But at Ferror Dek, what makes it to truly stand apart is the quality of the
distinctive as the customers are. Every single product that is rolled out of the
Ferror Dek ensures its customers that the customers will find unique
home.
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• Ferror Dek undertakes and completes every project with the same
MANUFACTURING FACILITIES:
The specialized home solution offers complete units for every room. The
Modular Kitchens
board.
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Wardrobes
Wall units
Crockery units
Designer doors
Shoe racks
Loft coverings
Dressing units
Kids units.
workplace, allow easy maneuverability of work area and infuse a high degree
• Modular Workstations:
and sizes.
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coated color.
• Pedestals
• Discussion tables
• Conference tables
• Training tables
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Though home and office furnishing is the niche area, value added services
are provided to give customer solution and thus turnkey projects are
undertaken.
• Architectural services
• Civil construction
• Project co-ordination
• False-ceiling
• Networking
• Electrical work.
7. Kurl-on-Ltd., Bangalore
9. Atlas Copco-Bangalore
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ORGANIZATION CHART
MD
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Employee Strength –
DEPARTMENTS
This department is broadly concerned with the acquisition and use of funds
by the company. It also analyze, plan and control the company’s financial
project co-ordination, electrical work, etc. It is also concerned with bank facility
availed by the employees. Apart from all these, it also takes into account the
installation part at the customer site after the dispatch of the product. In a
nutshell this department deals with the trouble shooting of any problem.
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DESIGNING DEPARTMENT
him. The team of designer tailor makes the products according to the needs of
the customers. Two aspects namely affordability and aesthetics are focused
When the deal is finalized and after receiving 50% of the amount from
the customer, the designers make the production design. This design
• Innovative designs –
The team of designers also trigger out the brain cells to create
innovative designs.
PRODUCTION DEPARTMENT
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PRODUCTION HEAD
• Quality Control:
materials. The raw materials are supplied mainly by four companies namely
Novapan, Spacewood, Bhutan Board and Nepal Board and Nuwood. For bulk
orders, direct purchase is made from the local companies such as Marino Ply,
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• Product Analyzing:
• Production:
cutting, molding, edge bending, boring and hot press and post formed.
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I. Operation : Cutting
2. PANELSAW
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V. Operation : Molding
٭Important Note :
• Dispatch:
MARKETING DEPARTMENT
department is split into two divisions – one dealing with home furnishings and
Home Furnishings:
executives assist him. Let us discuss the 4P’s of marketing mix with regard to
the company.
1. Product:
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kids units.
use and be in. Modular kitchens are planned around the workflow triangle
kitchen, one must be able to pinpoint needs, aspirations, likes and dislikes.
holders and storage shelves mounted on racks that can be run along the
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VI. Kitchen work/ equipment/ utensils get proper definition, role and place to
function.
2. Place:
3. Price:
The products are customized so the price also doffers accordingly. The
650 per sq. ft. The pricing policy adopted is cost plus a percentage of
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4. Promotion:
The Company has a showroom of its own. The showroom is opened for
all the seven days of a week from 9 a.m. to 9 p.m. Paper insertion are
The Company also participates in exhibitions. The recent one is, being
Circle.
Office Furnishings:
him.
The products dealt with are – modular workstations, filing storage units,
pedestals, keyboard and CPU trolleys, conference tables, training tables and
Other than that there is no major change with regard to place, price and
promotion.
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HR ASPECTS
the embryonic stage but the HR aspects are taken care of by Mr. Eugene
Joseph.
• Leave Facility :
sick leave (monthly). In case of a long leave, say a week or more than that,
intimation before 2 days is sufficient. One can also avail the facility of
• Recruitment :
the suitable candidates. Usually, Mr. Eugene or Mr. Rajesh or Mr. Yesudas
• Training :
• Job Rotation :
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↓
Initial Measurement is given
↓
Designers design the product
↓
Quotation is made
↓
Negotiation is made
↓
Color combination is chosen by the customer
↓
50% of the amount is given as advance by the customer
↓
Signing of the estimation form
Both the company and client will keep a copy of it
↓
Production drawing is made
↓
Production department
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↓
Delivery and installation
SWOT Analysis
Strength Weakness
Future Plans:
growing at a rapid pace. All these contribute for the company’s future
expansion plan.
Cochin.
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CHAPTER- 4
Table No. 1
Analysis
Interpretation
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Graph 1
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Table No. 2
Analysis
54% of the respondents are of the opinion that the products are
reasonable.
46% of the respondents are of the opinion that the prices of the
None of the respondents feel that the prices of the products are
Interpretation
are reasonable.
competitive.
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Graph 2
Pricing of Products
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Table No. 3
Analysis
13% of the respondents are of the opinion that the Godrej is the
major competitor.
the respondents.
Interpretation
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Though brand names like Godrej and Trident Inter Wood came into
the picture but the fact reveals that there is no dominant player in
Graph 3
Major Competitors
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Table No. 4
Analysis
None of the respondents feel that quality and pricing are the
Interpretation
of the competitors.
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Graph 4
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Table No. 5
Analysis
Majority of the respondents i.e. 57% are of the opinion that the
43% of the respondents opine that the products are of very good
None of the respondents are of the opinion that the products are of
Interpretation
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names.
Graph 5
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Table No. 6
Analysis
10% of the respondents are of the opinion that modular kitchen and
Interpretation
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Graph 6
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Table No. 7
Analysis
differentiating factor.
differentiating factor.
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Interpretation
Graph 7
12
10 10
10
8
7
Reasonable price
6 Quality
Customized products
4 Finishing
3
0
No. of Respondents
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Table No. 8
Factors Ratings
5 4 3 2 1
Price of the product 4 3 0 1 1
Analysis
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Design of the product and the price of the product get the maximum
of 4 rating.
Interpretation
generation.
demand generation.
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Graph 8
5
5
4 4 4
4
1 1 1 1 1
1
00 0 0 0 0
0
1 2 3 4 5
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Table No. 9
Analysis
24% of the respondents are of the opinion that paper insertions are
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10% of the respondents are of the opinion that showrooms are used
Interpretation
Graph 9
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Table No. 10
Analysis
90% of the respondents are of the opinion that the discount is given
on repeat purchase.
10% of the respondents are of the opinion that discounts are not
Interpretation
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Graph 10
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Table No. 11
Analysis
repeat purchase.
on repeat purchase.
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Interpretation
The company does not adhere to any stringent norm while giving
Graph 11
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Table No. 12
Analysis
Interpretation
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Graph 12
35
30
30
25
20 Direct marketing
Retailers
15
Dealers
5
0 0 0
0
No. of Respondents
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Table No. 13
Analysis
Interpretation
The target consumers are the upper class and the middle class.
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Graph 13
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Table No. 14
Analysis
given at present.
Interpretation
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Graph 14
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CHAPTER – 5
A Summary of Findings:
The finding can be grouped together into two broad categories such as;
Specific Findings:
General Findings:
This is with regard to the market dynamics and visits made by the
Specific Findings:
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2. Though brand names like Godrej and Trident Inter Wood came into
the picture but the fact reveals that there is no dominant player in the
market. So every player is vying with each other to capture a larger pie
in the markets.
organization is systematic.
General Findings:
2. With the vast array of modular option available in market, the consumer
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furniture made from Asian Teak Wood which is available in the rich rain
5. With respect to the foil, Ferror Dek offers a wide range of colors. This
6. “Quality never comes cheap”. This is true but at the same time, it is
also true that quality can come at a reasonable price. With regard to
the quality, products of Ferror Dek are at par with the other players
having brand names and at the same time the products are reasonable
priced.
9. The prices of the products are reasonable though they are competitive.
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10. The products are of good quality and are at par with other competitors
11. Modular kitchens are sold more per month. So, this area needs greater
focus.
of the others.
13. Apart from price of the product, design and delivery time of the product
product.
15. The company does not adhere to stringent norm while giving discount
on repeat purchase.
16. The target consumers are the elite and upper middle class.
present.
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CONCLUSION
“No man has the right to dictate what other men should perceive, create or
can’t drive value in fast moving environments. No doubt, Ferror Dek Pvt. Ltd.
is one of them because they believe in teamwork. Today, the need of the
Indian consumer evolves beyond “roti, kapada aur makaan”. The game in the
importance of co-ordination.
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A home is not just a living space but one’s statement of individuality to the
world. Big or small, it’s all about adding own touch to one’s home to make it
unique – a perfect blend of form and function. With the ever increasing
number of house-hold items, a highly dynamic and always on the move job
profiles, it is crucial for people to employ efficient storage spaces that are
functionality and multi-purpose aspects. With the rise in income and the
materialism and consumerism. Ferror Dek with its unique strength provides
customer solution that offers the perfect balance of quality and economy.
In today’s crowded market place, where products and services are touting
themselves to be the best, it is vital to stand out in the crowd. From the
various channels of advertising, point of sale displays and how the employees
are relating to the customers. It is important for Ferror Dek Pvt. Ltd. to
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CHAPTER – 6
respect to the findings and in congruence with the objectives of the study.
Recommendations:
2. Quality clubbed with reasonable pricing and quick delivery made the
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3. The strength of the company is its customized products. This very fact
into it.
repeat purchase.
rapidly.
benefited after the fulfillment and over achievement of the target. This
performance.
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Suggestions:
sell its products. So, the company can register itself in Furniture.co.in
directory.
Grid’. This will help in showcasing the products of the magazine. This
4. Feng Shui items are gaining prominence right at the moment. Feng
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create change. The fact can help in emotional marketing of the product
and also combat competition from Godrej whose modular kitchens are
made of steel.
5. In today’s crowed market place in order to increase the size of the pie,
6. In order to be extra ordinary, the Company has to walk the extra mile. A
8. Consumer is the king in the market. This fact should be deeply rooted
in the minds of the employees. The Company can adopt some ways to
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QUESTIONNAIRE
1) Name:
2) Address:
3) Designation:
4) Sex:
a) Male
b) Female
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a) Home furnishing
b) Office furnishing
a) High
b) Reasonable
c) Competitive
d) Low
him?
a) Quality
b) Brand image
c) Pricing
d) Promotional activities
of quality?
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a) Good
b) Very good
c) Fair
d) Poor
11) What specific merits do you think will differentiate your products
from others?
a) Reasonable price
b) Quality
c) Customized products
d) Finishing
12)How important do you feel that the following factors play a major
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5- Very important
4- Important
2- Not important
a) Paper insertion
b) Telemarketing
c) Display stalls
d) Participating in Exhibition
e) Direct mail
f) Presentations
g) Showrooms
a) Yes
b) No
a) 2-5%
b) 6-10%
c) 11-15%
d) 16-20%
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e) None
a) Direct marketing
b) Retailers
c) Dealers
b) Middle class
d) Corporate
a) Commission
b) Schemes
c) Free gifts
d) Recognition
e) Nothing at present
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THANK YOU!
BIBLIOGRAPHY
referred.
They are:
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Reference Made:
newsletter.
industry.
Websites Referred:
1. www.google.com
2. www.indianfoline.com
3. www.queszel.com
4. www.instakitchen.com
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5. www.attitude.in
6. www.tridentinterwood.com
7. www.furniture.co.in
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