Professional Documents
Culture Documents
Project report on
(Faculty mentor)
Submitted by:
Vikram singh chauhan
Roll no. 2011139
Batch (2011-13)
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Declaration
I, the undersigned, hereby declare that the Project Report entitled Impact of
promotional activity on the sales of TFR products writte n and submitted by me to
NIILM-CMS, Greater Noida in partial fulfillment of the requirements for the
award of degree of Post Graduate Diploma in Management under the guidance of
Dr. Shruti Jain .My original work and the conclusions drawn therein are based on
the material collected by myself.
Place:
Greater Noida
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Faculty Guide
Student of NIILM-CMS
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(91) 801-020-3263
2011139
Students E-mail ID
Vikrams099@hotmail.com
Students GSM
(91) 901-545-1181
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ACKNOWLEDGEMENT:A summer internship project is a golden opportunity for learning and selfdevelopment. I consider myself very lucky and honored to have so many
wonderful people lead me through in completion of this project. Then I would
like to thank my College president
Dr. S. Neelamegham for providing me with this opportunity of having such a
wonderful company for my summer training.
My grateful thanks to Mr. Aditya Gupta, CEO
THE FURNITURE
REPUBLIC who in spite of being extraordinarily busy with his duties, took time
out to hear, guide and keep me on the correct path. I do not know where I would
have been without him. A humble Thank you to
Prof. Ms. Shruti Jain
whose patience I have probably tested to the limit. She was always so involved in
the entire process, shared her knowledge, and encouraged me to think. I would like
to thanks Ms.Meetu NIILM-CMS for her efforts and help provided to me to get
such an excellent opportunity. Last but not the least there were so many who
shared valuable information that helped in the successful completion of this
project.
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EXECUTIVE SUMMARY
The basic concept of my project Impact of promotional activities on sales of TFR
products was based on sales promotion and in store selling.
For this I got the training from TFR about product material such as leather,
leatherite ,type of wood.
Consumer retention is the key success factor for any competitive market. An effort
was made to ascertain and analysis customer views and preferences for the product
through process of Brand Recall. Also, a detailed study was made to understand
the performance pattern of major competitors of TFR.
In doing so, it was possible to assess the competition in the market, hence enabling
us to position ourselves more effectively and strategize on a long term basis.
During the course of this project, I was also fortunate enough to be able to study
the promotional campaigns carried out by the company.
This report contains the findings arrived after detailed analysis of the data received
after questionnaires. The study was also carried out to find out how to increase sell
of brands. We did many promotional activities such as ATL, BTL, TTL activity
and I went to various societies, corporate offices, major metro stations for creating
brand awareness.
The promotional activities like canopy shows and broachers distribution were
carried out at greater noida. In this activity we have given live demo of household
furniture in our company demo flat at vasundhra olive county to the end user i.e.
the customers; this activity was mainly done in the indirapuram and vasundharaand
ec. At sec.63. Giving them demo, and broachers, and handling there queries
regarding the Products .
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..................................................................................................................................................................... 22
4.2 IHDP (international home deco park) .................................................................................................... 23
4.3
The
furniture
republic
(TFR)
..................................................................................................................................................................... 24
Below the line (BTL) / Above the line(ATL) / Through the line (TTL) Advertising ....................................... 40
Chapter 5 Research Methodology ............................................................................................................ 47
Chapter 5: FINDINGS AND CONCLUSIONS .................................................................................................. 61
5.1 FINDINGS AND CONCLUSIONS ............................................................................................................... 61
Chapter 6: Limitations ................................................................................................................................. 62
Limitations ................................................................................................................................................... 62
Biblography................................................................................................................................................. 63
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market is
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Market Share
Household furniture
Office furniture
Contract Segment
20%
15%
15%
65%
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Office Furniture:The office furniture segment caters to the commercial and office space. This
segment has witnessed rapid growth in recent years, in line with the growth in the
Indian economy and subsequent demand for office space. The thrust on real estate
and office construction is expected to sustain in the near future, indicating
continued growth for the furniture industry.
Contract segment:The contract segment caters primarily to hotels and its growth is consequently
linked to growth in tourism and development of new hotels. There are around
1,400 hotels in India in the organized sector. More than 12 per cent of these are in
the 5-star and above categories.
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Featherlite
Featherlite is one of Indias largest furniture manufacturing
companies and was started in 1965
Featherlite has been retailing furniture for the past 20 years and the first outlet
was opened in Bangalore in 1987
The company has a state-of-the-art manufacturing plant and is engaged in
continuous R&D
The companys manufacturing plants are located in Bangalore and Hosur. It has a
presence in 22 locations across India
It has around 25 exclusive showrooms in Mumbai, Chennai,
Bangalore, Delhi, Kolkata and Hyderabad. It manufactures
around 20, 000 chairs and 3, 400 workstations per month.
35 per cent of the total production is sold through retail outlets
The company has an employee strength of 500, which includes architects, interior
designers and others
Style Spa
Style Spa Furniture Limited is promoted by the Zuari-Chambal Group.
Established in India in 1997, to manufacture and retail furniture, the company is
headquartered in Chennai
The US$ 15 million manufacturing facility at Kakkalur, near
Chennai, in the state of Tamil Nadu, is a sophisticated and fully automated plant,
which is one of Asias most modern and largest manufacturing facilities. The ISOcertified plant produces around 0.2 million furniture pieces annually
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The company manufactures home and office furniture that is retailed through
about 92 exclusive retail outlets, spread across the country
The company also provides after sales services through
its showrooms
Millennium Lifestyle
Millennium Lifestyle is a family owned enterprise incorporated in 1999. The
family had nearly 75 years of experience in retailing Indian art and antiques
Millennium Lifestyle offers a one-stop solution to cater to the customers
complete furniture requirements, as it offers a wide range of furniture from around
the world under one roof
A number of brands across various product categories are sold from the
companys retail stores - ArteM, Divani, Loddenkemper, RioArt, Sauder,
Sherwood and Softplus. Millennium Lifestyle has its showrooms spread across the
two southern Indian cities of Bangalore and Hyderabad
The company also provides the designing your own interior sitting at home
service with the help of an online interactive room designer
Durian
Durian is a major player in imported furniture, offering living, bedroom, dining
room and office furniture
The company has been set up by the Dokania Group, which has been involved in
plywood manufacturing for about 25 years
Durian has over 40 imported furniture showrooms in the country
The company also offers free interior design consultancy and free delivery and
furniture installation
Nilkamal
Nilkamal Group of Companies has a turnover of over US$ 125 million. It is the
leader in plastic moulded furniture
The company has diversified into the lifestyle furniture business by launching
@home, which is a complete home solution store offering contemporary
readymade wooden furniture. The company has eight manufacturing locations
in India. It also has joint ventures in Bangladesh and Sri Lanka
It provides services like design solutions, professional guidance and interest free
loans, besides furniture and accessories
The main strengths of the Group are a 350-member wide direct sales network, a
350-plus strong dealer network, 33 regional offices in all major Indian industrial
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cities and 24 warehouses all over India and a warehousing facility along with a
marketing office in the UAE
.
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3.1.3 MISSION
This mission statement reflects our proud past and our desire for the future. This is
the mantra that drives us in everything that we do. From design through fulfilment,
we continuously strive to provide the best product at the best prices accompanied
by the best service in the industry. Being the best and bringing the best to you is
our relentless pursuit
3.1.4 VISION
"Through positive energy, faith and passion, providing the best possible product
and service inthe market and therefore creating dynamic growth and prosperity.
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Household Furniture
Sofa, Lounger, Dining, Bed Room, Home office, Side & Center Table, Storage,
Miscellaneous, Computer Table etc.
Office Furniture
Desks, Conference Table, Chair, Miscellaneous and etc.
Contract segment
In this segment we include all the furniture which is used to build hotels.
3.2.2 Price
This heading refers to decisions about how much to charge for goods and services.
It may be easy for you as a manager to neglect this aspect of the mix in favors of
the more 'glamorous' promotion and product areas, but ultimately decisions over
price affect the viability of a brand and the profitability of an organization. Pricing
is also much more complex than you might think.
3.2.3 Place
This heading refers to distribution. This means all aspects related to how goods and
services are 'moved from the producers to the end user. This means the
coordination of retailers and/or wholesales and in the case of products the logistics
involved in moving from factory/warehouse/head office, to the end user. Most
goods are sold through intermediaries, (for example, retailers). Marketers must
therefore consider the type, size and location of retailers and possibly also the
training of retail staff
3.2.4 Promotions
This heading refers to all types of communication that relate to a specific
marketing campaign. This includes communication with retailers and distributors,
communication with purchasers and end users and also internal communication
with the sales force and other employees. Promotion is an area with considerable
innovation. Marketers put great efforts into finding new ways to communicate with
consumers. When people think, or talk about marketing they are often only
considering promotions. This is because t is the most visible part of the marketing
process after the product itself. But it would be a mistake to focus only on
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promotions. Promotions work best when they are considered alongside decisions
about products, pricing and place.
Direct Marketing
Sponsorship
Public Relations
Personal Selling
Advertising
Sales Promotions
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1. Introduction
Now a days, even if we are at home, on the street or in the cinema, we can notice
how many Companies are speaking to us all the time. Information is coming
from numerous different sources, and can reach us in our bed, and which is so
personal, even in the toilet. Tailored information always reaches its target, and
then everything will depend on the individuals decision. The goal is to make
customers loyal once they have decided to purchase one brands product. We can
also observe ourselves as well as others feeling some kind of satisfaction
during shopping, which is because of the good decision we made about
the purchased products. What does this good decision mean actually? I think that
nobody can tell us what a good decision exactly is. There are too many different
view point, as everybody is different in the world. That is the same situation when
companies try to persuade people that they are the best possible choice in a
particular market. They use numerous ways of marketing communication, by the
help of BTL and ATL tools, but then they also have to decide which form of
communication to choose, which will be the most suitable for their target
group.
However, it is for sure that in many cases BTL communication can
establish personal relationship between products and customers, so it can be
more efficient.
In my thesis my objective is to find out what the current advertising
tendencies Whether there are more companies using BTL today or there will be
more using in the future.
I have prepared my thesis in a BTL activity. I got lots of help from my mentor,
and also got the chance to get involved in projects, such as the BTL activity
of THE FURNITURE REPUBLIC
. So, I mainly prepared my report based on my collected personal experiences.
In my Report, I analyse the concept of BTL, and examined the effect of
BTL activities on consumers by the help of some case studies experienced
during my internship.
the question: What will be the future of BTL marketing?
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the-line activities; this ratio in the US is more than 50 per cent. The reason of this
considerable difference is that the significance of below-the-line marketing is
not recognized yet, and the experienced experts are missing as well.
Characteristics of PR:
Organizational, mostly corporate point of view, success is based on good
relationship with employees and the public
The tool of forming public opinion, indirect influence, nurtures trust.
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Organizing guidelines
The carrier of sales spot advertisement is practically the whole store and those
inner and outer tools, methods that result the increase of turnover of the
store. The design of the on-spot-sales-advertisement is affected by the shop's
location, type, system of sales.
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Types of Fairs:
1. The range and types of displayable products at an ordinary fair do not
fall under any restrictions.
2. Professional fair most commonly multi-profession-fairs. We
can differentiate producing-goods and consumer goods fairs.
3. Vertical professional fair only introduces one or two groups of
products. Its visitors are professionals and concerned traders. Primarily
serves marketing objectives, sales stay in the background.
4. The characteristic of the horizontal or representational professional
fair is the high-level specialization. Users and end-consumers can
also visit, depending on their interests. It is suitable for executing
professional objectives as well as satisfying the needs of consumers for
information.
Event marketing, fairs
An event is an organized meeting for a community (sometimes has an entertaining
function).
The process of organizing events can be divided into 4 parts:
- Planning
- Preparing
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- Execution
- Follow-ups, evaluation
The difference between fairs and event marketing is: while the primary objective
of a fair is informing, the main aspect at event marketing is let the visitors
enjoy themselves. The objective of event marketing is to give the brand/company
a pleasant, entertaining experience. In its centre, we can see the vivid transmission
of the message and direct informing, exchange of information. Its aim is to
create a positive image in the customer's mind; several times direct sale is not
the primary aspect. There is a possibility for consumers as well as for partners at
these events to see and try the products. It is a key element at event marketing
that certain events give special and unique experience since catching the interest
of the target group can only be made sure this way. The turnover increasing effect
of event marketing The effect of outdoor programs cannot be measured
accurately; only the number of visitors can be quoted. Besides this, the value of
one or two events can be weighted through press releases. The importance of
events is given by those people who take part in those and who are important from
the companies' or from trade locations' point of view. So if we can achieve
something memorable during the event it can be a bigger success than
trying to reach potential customers by the conventional media. Earlier brands or
products were more in the centre of the popularity increasing programmes
while nowadays banks, broadcasting and technical companies, so service
providers are using event marketing as well.
Sponsoring
Sponsoring is a kind of contribution by money or by any form, by which the
investor gains trade potential in connection with the activity.
Characteristics of sponsoring:
It is a bilateral business, where both parties from the beginning has
to be aware of what they expect from the co-operation, what compromises they
are to make in order to mutually gain advantages.
Sponsors are classified by the degree of financial contribution.
Reaches customers in non-commercial surroundings.
Makes skirting of advert restriction possible.
Neither falls into the field of advertisement, nor into of Public Relation. It is a
complex tool of marketing communication that highly beneficial on the long run.
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Below the line (BTL) / Above the line(ATL) / Through the line (TTL)
Advertising
In organisational business and marketing communications, Below the line (BTL)
is an advertising technique. It uses less conventional methods than the usual
specific channels of advertising to promote products, services, etc. than Above the
line (ATL) strategies. These may include activities such as direct mail, public
relations and sales promotions for which a fee is agreed upon and charged up
front.
Through the line (TTL) refers to an advertising strategy involving both above
and below the line communications in which one form of advertising points the
target to another form of advertising thereby crossing the 'line'. An example would
be a TV commercial that says 'come into the store to sample XYZ product'. In this
example, the TV commercial is a form of 'above the line' advertising and once in
the store, the target customer is presented with 'below the line' promotional
material such as store banners, competition entry forms etc.
Promotion can be loosely classified as "above the line" and "below the line"
promotion. The promotional activities carried out through mass media like
television, radio, newspaper etc. is above the line promotion.
The terms 'below-the-line' promotion or communications, refers to forms of nonmedia communication, even non-media advertising. Below-the-line promotions
are becoming increasingly important within the communications mix of many
companies, not only those involved in fmcg products, but also for industrial
goods.
Some of the ways by which companies do BTL (below the line) promotions are by
exhibitions, sponsorship activities, public relations and sales promotions like
giving freebies with goods, trade discounts given to dealers and customers,
reduced price offers on products, giving coupons which can be redeemed later etc.
Below the line sales promotion
Below the line sales promotions are short-term incentives, largely aimed at
consumers. With the increasing pressure on the marketing team to achieve
communication objectives more efficiently in a limited budget, there has been a
need to find out more effective and cost efficient ways to communicate with the
target markets. This has led to a shift from the regular media based advertising.
A definition of below-the-line sales promotion given by Rohan Salvi:
'An immediate or delayed incentive to purchase, expressed in cash or in kind, and
having only a short term or temporary duration'.
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2.Coupons
3.Gift with purchase
4.Competitions and prizes
This is an important tool to increase brand awareness amongst the target
consumer. It can be used to boost up sales for temporary period and ensure usage
amongst first time users.
5. Money refunds
Here, a customer receives a money refund after submitting a proof of purchase to
the manufacturer. Customers often view these schemes with some suspicion
particularly if the method of obtaining a refund looks unusual or onerous.
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7. Point-of-sale displays
Shopping habits are changing for the people living in metropolitan cities. People
prefer big retail outlets like Big Bazaar to local kirana stores. Most of the
decisions of buying are taken by the virtue of point-of-sale displays in these retail
outlets.
again through doctors, knowing that for a patient a personal advise from a doctor
would hold more value as compared to a commercial advertisement.
Another interesting BTL promotion was by NIKE. An athlete dressed up in Nike
sportswear could be seen jogging on an elevated treadmill for the whole day on
National Highway 8, Delhi.
Tata Shaktee is a strong rural brand from Tata Steel, for roofing products, has
BTL activity in the form of Haat participation. By having a stall at Haat, Tata
Shaktee engages potential consumers in interactive games around differentiating
attributes of the product. Also, discount coupons are given for interested buyers,
with details of nearby retailers.
BTL promotions are gaining popularity among all big companies nowadays
considering their effectiveness because of the "individual customer promotion" at
a price, which is much lesser than the normal media promotions.
ATL - Above the line activities are those that the agency receive a income from the
( i.e. Commission) media company . E.g. : Advertisements on Newspaper,
magazines , TV & Radio BTL - Below the line activities are the other type of
activities in the promotional mix Like : Sales promotions , Personal selling .Direct
marketing & PR activities.
Sales promotion
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 not really designed to build long-term customer loyalty.
Some sales promotions are aimed at consumers. Others are targeted at
intermediaries (such as agents and wholesalers) or at the firms sales force.
When undertaking a sales promotion, there are several factors that a business must
take into account:
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the product?
once the promotion ends, or will it simply attract those customers who are always
on the look-out for a bargain?
Loyalty cards e.g. Nectar and Air Miles; where customers earn points for
buying certain goods or shopping at certain retailers that can later be exchanged
for money, goods or other offers
Loyalty cards have recently become an important form of sales promotion. They
encourage the customer to return to the retailer by giving them discounts based on
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the spending from a previous visit. Loyalty cards can offset the discounts they
offer by making more sales and persuading the customer to come back. They also
provide information about the shopping habits of customers where do they shop,
when and what do they buy? This is very valuable marketing research and can be
used in the planning process for new and existing products.
The main advantages and disadvantages of sales promotion are:
Advantages
Effective at achieving a quick boost to sales Encourages customers to trial a
product or switch brands
Disadvantages
Sales effect may only be short-term Customers may come to expect or anticipate
further promotions May damage brand image
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SOURCE OF DATA
There are two main source of data collection i.e. through primary data collection
are secondary data collection method. I have adopted primary data collection
method for the survey. Under this method the method of survey was best suited
with my sample size and requirement of data.
The respondents from different malls and survey included :
QUESTIONNAIRE
o What is your perception about promotional schemes of TFR?
o Do you wait for promotional schemes for purchasing products and services
for your household?
o Do you wait for promotional schemes for purchasing luxury and nonnecessity products and services?
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Disagree
May be
Agree
Strongly
Agree
Disagree
May be
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Agree
Strongly
Agree
Rank
o Considering the product that you have purchased, can you tell how do you
come to know about the promotional scheme?
From newspaper ad
From television ad
From radio/FM channels
Came to know when visited the store
From friends/neighbors
From the displays
Others (please specify)
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o Can you tell the reasons for purchasing the same brand again?
Promotions
Product Satisfaction
Good Packaging
Non availability of other brands
Recommendation to purchase
No particular reason
Just picked it off the shelf
Liked what I read about the product on the
packaging
Liked the advertisement of the product
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DATA ANALYSIS
o What is your perception about promotional schemes of TFR?
perception
15%
genuine
53%
32%
not genuine
doubtful
Interpretation: - The sample size is 100. Data collected by these people indicate
the perception about sales promotion in the real consumer mind and finally its
reflecting in its purchasing behavior. According to data, 53% confirm the geniuses
of sales promotion scheme. 32% goes other way and rest 15% are not sure about
sales promotion scheme. The total percentage which is around 47% of consumer
are either not confirm or sure that this sales promotion scheme actually fooling and
misleading the consumer.
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Interest
40
49
yes
no
depend on scheme
11
beneficial
37
cash discount
free gift
63
recommendation
24
yes
no
76
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durability
17
switching
21
36
regular brand
depend on scheme
other brand
43
o Do you wait for promotional schemes for purchasing products and services
for your household?
yes
no
depend on scheme
48
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o Do you wait for promotional schemes for purchasing luxury and nonnecessity products and services?
depend on scheme
65
Interpretation: - Some data show exact opposite result, 65% are going to wait for
purchasing luxury item. Only 9% cant wait rest 26% will depend on scheme.
o Reasons for purchasing the products-
34
29
13
5
11
0
Interpretation: - the data show the actual reason for buying the products.
Promotion and product satisfaction are the main reasons for buying behavior.
Advertisement also plays a part in deciding consumer buying behavior.
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purchase decision
17
0 3
more than needed
somewhat more than needae
27
53
same smount
less than needed
much less than needed
Interpretation: - according to this data, more than half agree with increase in the
consumption. 27% say that their consumption is as same as before scheme. 17%
their demand decreases with promotional schemes.
o Given below are some common types of promotions that are used by
marketers to sell their products. Considering everything, can you please
rank these in the order of your preference? Give a rank of 1 to the most
preferred, 2 to next most preferred and so on.
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rank
25
25
20
20
18
15
15
10
7
10
5
rank
Interpretation: - according to the data, consumer prefer direct price discount then
getting two product for the price of one and warrantee is third largest acc. to the
sample.
o Considering the product that you have purchased, can you tell how do you
come to know about the promotional scheme?
promotional medium
34
35
30
25
20
15
10
5
0
13
16
13
17
8
0
promotional medium
o Can you tell the reasons for purchasing the same brand again?
72
17
0
4
reasons for repurchasing
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o Direct price discount, warranty and buy 1 get 1 offers are the most accepted
sales promotion by consumers. In addition, contest and discount coupons are
the least trusted sales promotion scheme
o Television advertisement is the most effective medium of sales promotion along
with radio and newspaper advertisement. Advertisement material displayed
outside store is the last influential medium of sales promotion
Chapter 6: Limitations
Limitations
In every project work there is some kind of limitations which affect the accuracy
of work. Same in this project work has been carried out under the following
limitations:
TIME CONSTARINTS: time has been a major limitation while undergoing the
study.
AREA BOUND: since the study was conducted only in NCR so accurate result
was not obtained.
COST CONSTRAINTS: costs involved for the study was also a major limitation
for the project.
BIASED APPROACH: the result obtained might be based on the biased approach
of the respondents.
UNAWARENESS AMONG THE INVESTORS: unawareness among the
respondents about the contemporary investment options and their relative benefits
of different brands acted as a major limitation for the project.
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Biblography
Kotler Philip, Marketing Management, 11th edition. Pearson Education
Marketing Research Dilip Sarvate
ICMR Publications
Kothari C.R. Research Methodology, Edition 2005 New Age International (p) ltd.
New Delhi.
www.google.com
www.marketresearce.com
http://www.economywatch.com/business-and-economy/furniture-industry.html
http://www.furniture-republic.com
http://www.ihdp-india.com
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