UNIVERSITY OF MUMBAI LALA LAJPAT RAI COLLEGE OF COMMERCE AND ECONOMICS MAHALAXMI, MUMBAI 400034.

PROJECT REPORT ON PROMOTION ACTIVITIES WITH REFERENCE TO FMCG PRODUCTS

SUBMITTED BY RADHA R. JALJAL PROJECT GUIDE Prof. VAIDEHI KAMATH

T.Y.B.M.S. V SEMESTER

YEAR OF SUBMISION 2009 - 2010

ACKNOWLEDGEMENT

On the eve of completion of the project, PROMOTIONAL STTRATEGIES WITH REFERENCE TO FMCG PRODUCTS as per the University of Mumbai guidelines for Semester V, I take the Opportunity to express my deep sense of gratitude to my project guide Prof. Vaidehi Kamath, without whose guidance and inspiration to conceptualize, this project would have not seen the light of the day. I would also like to give my appreciation to my academic colleagues and my friends for considerable amount of assistance to me in preparing the report. My overriding debts continue to my parents for encouragement, blessing and support.

CERTIFICATE
I, Vaidehi Kamanth hereby certify that Radha Jaljal student of Lala Lajpat Rai College of Commerce and Economics, Mumbai T.Y.B.M.S (Sem 5), has completed the project in the academic year 2009-2010. The information submitted is true and original to the best of my knowledge.

SIGNATURE OF THE PROJECT GUIDE ORDINATOR

SIGNATURE OF THE PROJECT CO-

SIGNATURE OF THE EXTERNAL EXAMINOR

DECLARATION

I RADHA R. JALJAL the student of LALA LAJPAT RAI College of Commerce & Economics, studying in T.Y.B.M.S, hereby declare that I have completed the project report on PROMOTONS ACTIVITIES WITH REFERENCE TO FMCG PRODUCTS in the academic year 2009-2010.

The information submitted in genuine and practical to the best of my knowledge.

Date: _____________

SIGNATURE OF STUDENT

EXECUTIVE SUMMARY

The Indian Retailing sector is a booming sector now a day. It is after the agriculture sector. It is because FMCG creates huge impact on each an every businessman who is connected with retailing. It is seen to be a greatest employment after the agriculture. Indias sector is given to transform, FMCG sector is the fastest growing sector in the Indian economy. Traditional markets are transforming themselves in new formats such as departmental stores, hypermarkets, supermarkets and specially stores. The Indian FMCG market is of enormous sizes about US$ 350 billion. Indian FMCG Industry is ranked among the fourth largest retail market in the world throughout the Asia.

Industrial Growth:
The growth in real GDP during FY08 was at 9% moderating from 9.6% as recorded in FY07 and 9.4% during FY06, as per the Central Statistical Organisation (CSO). Out of 63 non-durable consumer items (with a weight of 23.3% in the IIP), 20 items which accounted for a 7.4% weight, recorded a Declime in production during FY08. Futhermore, lower growth in respect of sugar (with weight of 2.2% in the IIP) and some other non-durables such as chocolate and sugar confectionery, beer and edible oils also led to moderation in the non-durables segment.

Market size:
According to ASSOCHAM, the market size of FMCG in the rural and semi- urban segment is likely to jump up by 10% and 6% respectively by 2010. Currently, almost 52% of the rural market size is captured by FMCG products and is projected to reach 57% in the next three years. This size is further expected to grow by 10% in the next three years.

Higher employment generation:

Employment generation was triggered by a thrust in industrial activity, which led to newer jobs in sectors like logistics, infrastructure, and other related activities. The formal of modern trade has also enables more employment in India. Organised retail has augured well for the FMCG sector which has thereby derived greater exposure leading to more employment. Futhermore, organized retail has also created more job opportunities without any gender bias for our teeming population.

Proposed and implemented domestics investments in various FMCG segments:

Food Processing: The proposed Industrial Entrepreneur Memorandum (IEM)is growing rapidly over the last couple of years in various FMCG sub segments. Soaps, Cosmetics and Toiletries: The soaps, cosmetics and toiletries segment of the FMCG sector reported a sharp rise in the ratio of implemented investments between 2004 to 2007.

CONTENTS CHAPTER NO. 1 1.1 1.2 TOPIC

WHAT IS PROMOTION

PAGE 1 2 3 4 4

DEFINITION OF FMCG WHAT DOES PROMOTION DO FOR FMCG PRODUCTS 1.3 PROMOTIONAL STRATEGIES FOR FMCG 1.4 OBJECTIVES OF THE PROMOTIONAL STRATEGY A PROMOTIONAL MIX CONTAINS THE

FOLLWING PRINCIPLE FOUR ELEMENTS 2.1 2.2 2.3 2.4 3 ADVERTISING PERSONAL SELLING SALES PROMOTIONS PUBLIC RELATIONS 7 14 17 22

TYPES OF PROMOTIONAL STRATEGIES USED FOR FOLLOWING 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 PUBLICITY DIRECT MARKETING VIRAL MARKETING INTERNET MARKETING DIGITAL MARKETING WORD OF MOUTH PROMOTIONAL ACTIVITIES THROUGH MEDIA OTHER PROMOTIONAL ACTIVITIES AND EVENTS STRENGTH AND WEAKNESS OF PROMOTIONAL TOOLS 24 27 28 29 30 33 34 35

38

SETTING PROMOTIONAL EXPENDITURES: 5.1 5.2 5.3 5.4 Rationalising Costs Why Promos? Dont overdo It: Promotions v/s Advertisements: 41 41 43 44 48

CASE STUDY-1 ARIEL CHAMPIONSHIP WHITES FREE TENNIS LESSONS AT TESCO.

7 8

CASE STUDY-2 GLAXO SMITH KLINE CASE STUDY-3 PEPSI, COKE AND THUMS UP

53 57