Project on sales improvement

In FMCG Sector

By Saurabh Sharma

DECLARATION
I Saurabh Sharma hereby declare that the project work titled A STUDY TO ANALYSE
THE SALES IMPROVEMENT IN FMCG SECTOR is original work done by me
and submitted to the Management Education & Research Institute the fulfillment of
requirements for the award of Master of Business Administration (MBA) IIIrd semester
under the guidance of Prof. Samarth Singh.

Saurabh Shrama
MBA-II year (Marketing)
RollNo.05635103915

CERTIFICATE

This is to certify that the Project Work titled Sales Improvement in FMCG Sector
wrt Flour Mill is a bonafide work of Mr. Saurabh Sharma carried out in partial
fulfillment for the award of degree of MBA under my guidance. This project work is
original and not submitted earlier for the award of any degree/ diploma of this or any
other University/ Institution.
Director
(Project Guide)
Place:
Date:

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere thanks
to all of them.
I am highly indebted to Praveen for their guidance and constant supervision as well as for
providing necessary information regarding the project & also for their support in completing the
project.
I would like to express my gratitude towards my parents & member of Ganga Flour Mill Pvt.
Ltd. for their kind co-operation and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to industry persons for giving me such
attention and time.
My thanks and appreciations also go to my colleague in developing the project and people who
have willingly helped me out with their abilities."

PREFACE
In this age of globalization hyper competition has become a regular feature. Today the markets
are no less then battlegrounds and one has to strive very hard for survival and growth.
Due to very rapid industrialization all over the world the demand for the managerial personnel
and the administrative personnel has increased. The perfect study of Management involves both
the theoretical as well as practical aspects. To survive in this highly competitive market
Practical Knowledge is as relevant as the Theoretical.
The significance of MBA Degree is that the Theoretical aspects, which a student learns
throughout the year in the class sessions, can be practically applied through different projects,
which one undertakes. Keeping in tune with this doctrine, we have tried to apply theoretical
aspects through out the project, which we learned under the course of management.
In this project more emphasize given to the various tools of sales promotion andits impact on
consumers buying decisions. Actually in recent trend to some extent this technique also become
victim of clutter, even though it can be eliminated by generating innovative and more attractive
tools to lure the customers.
Now a day most of the FMCG companies considering sales promotion as an important part of
their marketing strategy. From the analysis of survey it becomes clear that consumers do
response to the sales promotion campaign, but there are customers who strongly prefer to stick to
brand name.

S.N
O.
1.

TOPIC

PG.NO.

PART A(Introduction)
Excutive
Summay..
About FMCG
Industry
Characteristics of FMCG & Products
categeory.
About Flour
Mill..
History of the
company
Organizational
structure
ReviewLiterature

SalesPlanning...

MarketingMix..

Product

Price.

Place(Distribution Network)

Sales Promotion..

Competitive Method For

FMCG.

Sales Efforts in
FMCG

2.

PART B

RESEARCH METHODOLOGY

Objective
Motion of study
Sources of data
Data Collection & Presentation
Customer Relationship Management
Functional Analysis
Findings

7
8
10
11
12
16

17
18
19
23
24
28
35
36

3.

PART C

4.

Market Share
Size of the Organization
Vision & Mission
SWOT

PART D

Conclusion
Suggestions
Bibliography

Executive Summary
As a part of our study curriculum it is necessary to conduct a grand project. It provides us an
opportunity to understand the particular topic in depth and which leads to through to that topic.
My topic for the grand project is titled as Study of sales improvement in FMCG sector in
which emphasis given to the effect of sales promotion on buying habits of consumers.
To start with we will give brief information regarding FMCG sector then moving to the main
topic we will explain what is topic is all about. Promotion is one of the pillars of marketing mix
and same way sales promotion is also one of the elements of promotion.

With respect to consumer oriented sales promotion there are certain theories narrated as operant
conditioning and projective theory. Based on secondary source certain theoretical aspects are
also included as a part of study.
Then after concentration is given to the primary research. It includes the analysis and results of
survey which was focuses on consumers behavior towards sales promotion campaign. The
survey was conducted with the help of structured questionnaire.
At last conclusion of report, findings and suggestions was given based on study of secondary
source as well as primary research.

Introduction to FMCG Industry

FMCG Concept and Definition
Introduction
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily
deals with the production, distribution and marketing of consumer packaged goods. The Fast
Moving Consumer Goods (FMCG) is those consumables which are normally consumed by the

consumers at a regular interval. Some of the prime activities of FMCG industry are selling,
marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain,
production and general management.
Fast Moving Consumer goods refer to items that are purchased and consumed frequently by
consumers. These are non durable items, which have relatively low prices. FMCG stands for Fast
Moving Consumer Goods. It is also referred to on occasion as CPG, an abbreviation of
Consumer Packaged Goods.
They are described as being reasonably low cost items that are supplied and sold in a very short
time period - often these types of products have a short shelf life, hence having a short sale time.
FMCGs are often bought in bulk to take advantages of economies of scale -due to their low
price, profit margins are often small so the sale of large quantities over a short period of time is
vital to make worthwhile.
FMCGs can be split into highly perishable and non-highly perishable goods. Highly perishable
goods include meats, vegetables, fruit, and bakery items - anything that has a reasonably short
shelf life. In contrast, products such as wine, beer and spirits, canned food sand toiletries have a
longer shelf life and do not perish quickly. Nonetheless, these product sare in high demand and
as a result product turnover is high; they do not spend long on the supermarket shelves.
Fast Moving Consumer Goods are recognized as being a frequent consumer purchase, and what
that involves a low level of risk and/or emotion.
From the perspective of consumers, FMCG is: frequently purchased (once or more a
month), easily purchased i.e not much thinking/comparison between products carried out
before purchase , low investment required for purchasing these items. Typical purchase
points for FMCG include local kirana stores, grocery stores, supermarkets and
hypermarkets.From a retailers perspective, FMCG have low margins, high shelf turnover
and high volume sales items. Since levels of involvement are low for the purchase
decision firms rely heavily on advertising and promotion to increase sales.
Some of the key players in the international market include Unilever, Procter& Gamble,
Colgate-Palmolive, and Nestle. Prominent FMCG companies of Indian origin include
ITC, Dabur, Marico, Parle, Cavin Kare, Britannia, Tata Global Beverages etc.

The fast-moving consumer goods (FMCG) sector is an important contributor to Indias

GDP. It is the fourth largest sector of the Indian economy. The FMCG market is estimated
to treble from its current figure in the coming decade. Penetration levels as well as per
capita consumption of most product categories like jams, toothpaste, skin care and hair
wash in India are low, indicating the untapped market potential. The growing Indian
population, particularly the middle class and the rural segments, present an opportunity to

makers of branded products to convert consumers to branded products. The Indian rural
market with its vast size and demand base offers a huge opportunity for investment. Rural
India has a large consuming class with 41 per cent of Indias middle-class and 58 er cent
of the total disposable income.
Through the nineties, the FMCG markets grew at almost 15% per annum in value. Suddenly, in
2000 FMCG market growth stalled and then declined for the next four years. The rapid opening
up of the economy resulted in many new avenues of expenditure for the consumers growing
income. A sharp drop in interest rates from 18% to 8% led to explosive demand for consumer
durables like white goods, two wheelers and automobiles. Mobile phone ownership and usage
exploded due to its amazing lifestyle and convenience benefits as well as lower prices.
Entertainment, leisure and travel sectors also boomed. The lure of new avenues of expenditure in
products and services led to consumers restricting their spending on FMCG. Consumers
downgraded to lower priced substitutes from higher quality brands.
FMCG CATEGORY AND PRODUCTS
Category
Household care

Food and health beverages

Personal care

Products
Fabric wash (laundry soaps and synthetic
detergents); household cleaners (dish/utensil
cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito
repellents, metal polish and furniture polish
Soft drinks; staples/cereals; Beverages bakery
products (biscuits, bread, cakes);food;
chocolates; ice cream; tea; coffee; soft drinks;
processed fruits, vegetables; dairy products;
bottled water; branded flour; branded rice;
branded sugar; juices etc.
Oral care, hair care, skin care, personal
wash(soaps); cosmetics and toiletries;
deodorants; Perfumes; feminine hygiene;

Characteristics of FMCG Products

Individual items are of small value. But all FMCG products put together account for a significant
part of the consumers budget.
The consumer keeps limited inventory of these products and prefers to purchase them frequently,
as and when required. Many of these products are perishable.
The consumer spends little time on the purchase decision. Rarely does he/she look for technical
specifications (in contrast to industrial goods). Brand loyalties or recommendations of reliable
retailer/dealer drive purchase decisions.

Trial of a new product i.e. brand switching is often induced by heavy advertisement,
recommendation of the retailer or neighbors/friends. These products cater to necessities,
comforts as well as luxuries. They meet the demands of the entire cross section of population.
Price and income elasticity of demand varies across products and consumers.

INTRODUCTION TO A FLOUR MILL INDUSTRY

Introduction
Since ancient times, flour (maida) has helped define the food habits of people across the globe.
Flour production has grown from being a manually intensive process to a technologically
advanced science. Flour is derived from the old French fleur or flour which literally means
blossom.
We at Ganga Roller Flour Mills are proud to play a defining role in flour production in India
and transform raw seeds into value added white gold under the most hygienic conditions. With

the most modern mills and high technology processes, we have set new standards in every aspect
of milling and production.
Established in 1974, Ganga Roller Flour Mills is the contemporary face to the ancient art
of milling and flour production. We are the leading manufacturers of chakki
atta, sooji/rawa, atta, maida and bran (used as cattle feed) in India with an annual
production capacity of over 108,000 tons. We also manufacture speciality flour like Bread
Flour, Cake Flour, Biscuit flour, flour for Noodles, Kulcha/Halwai and general purpose
flour for halwai among others.

Our fully automatic and strategically located plants in the heart of India ensure we have
access to the best raw materials, give us the enhanced capability to cater to different
geographies and the added agility to satisfy customer demands. We are extremely safety
conscious in our operations and are ISO 22000: 2005 and AGMARK certified for quality.

Our 36 years of industry experience have culminated into a broad knowledge of flour and
pasta production, logistics, marketing and export and gives us the strength to satisfy
customers with the most challenging needs.

We are powered by over 135 dedicated employees and have an annual turnover exceeding
130 crores. We constantly innovate and upgrade our technology and manpower skills to
keep abreast international standards. We believe in milling success and continue adding
value by manufacturing white gold.

History
Since our modest establishment in 1950, GRFM has contributed effectively to the food
security of the nation with fair procurement practices, state of the art production plants,
hygienic processing, sound technical base and rigorous R & D. We are today, the
preferred supplier of white gold to some of the leading names in the industry.
Some of the key highlights in this eventful journey are:

1950: The Inception

India becomes a republic and a new era of hope, fortitude and determination dawns. We
establish our first roller flour mill in the south Indian metro of Chennai with the
underlying spirits of optimism, ingenuity, self-sufficiency, quality and integrity.

1974: Building the foundation

A formal entity Ganga Roller Flour Mills Private Limited was established in Delhi with
a monthly production capacity of 2500 MT. This foresighted and strategic decision gave
us the scope for higher expansion, confidence to take bold decisions and the legal
strength to face new challenges in unknown territories.

1980s to 2000: Connecting the Dots

We branched out into new geographies and implemented inspirational business practices
to improve production and sustain customer satisfaction year on year. We also started the
manufacture of specialty flour to tune in with the changing times.

At Ganga, pioneered the art of producing high quality animal feed products thereby
ensuring the every part of the raw grain is used to the fullest thus revolutionizing the
cattle feed and other dairy associated industries as well.

Having received prestigious awards from various state and central governments as
recognition to our excellent safety record has helped us to build on a vibrant corporate
culture. The wheat product promotion society awarded us for our excellent service and
for commemorating our 25 years in the industry.

2000 to present: A Company on the Move

During this period, we continued on our modernization drive by installing the latest
machines and automation from reputed manufacturers like the Buhler etc. to enhance our
production capacity to9000 MT per month. We were also awarded the ISO and
AGMARK certifications in recognition of our business practises, commitment to quality
and focus on customer satisfaction.

GRFM is supported by over 135 committed employees and has a turnover of over 130
crores.

The Path Ahead: Perseverance Beckons Destiny

We have continuously displayed character, contributed proactively to nation building by

adding value and quality to raw produce and stayed true to our principles and modest
beginnings.

We work relentlessly to be the face of a resurgent India and set the global standard in all
aspects of our business operations right from purchase of grains through to storage,
production, processing and distribution.

GRFM serve the purpose of processing wheat to convert it into flour. The plant will have facility
to produce, maida, suji, atta and bran. These products will be sold as per the guidance issued for
Food and Civil Supplies Department of the concerned state. Thus milling is an imperative

physical function involved in converting wheat into its milled products. Separating the wheat
grain into its constituents (bran, germ and endosperm) Wheat grains are the seed of the wheat
plant, which is able to grow in kinds of soil and under widely differing climatic conditions.
A grain of wheat is avoided in shape and it bears at one end a number of short fine Grains. The
grains of wheat consists of three main parts the enveloping skins, the embryo and the endosperm.
The relative proportions of these parts vary with the plumpness of the grain but the average
composition of wheat is 83% endosperm, 2.5% embryo and 14.5% enveloping skins. The
enveloping skins are pericarp consists of the epidermis, epicarp and endocarp. The pericarp
represents about 6% of the grain. The seed coat consists of the testa, the hyaline layer which
comprises about 2% of the grain. The aleurone layer representing about 6.5% of the grain wheat
show a wide range of analytical data.
Flourmill consists of following machineries as blender, sieves, breaks rolls, smooth steel
reduction, rolls aspirators, conveyors water washers etc. Flour is classified according to the
amount of grain included in the final product. Grain processing systems are generally based on
the separation of the following components of the grain: Bran is the hard, brownish outer
protective skin of the grain (varies from 6% in corn to 16% in wheat). Bran layers include the
cuticle, mesocarp, cross layer, tube cells and testa. The bran layers are a concentrated source of
dietary fibre. Endosperm is the inner part of the grain (varies from 60% in rice, barley and oats to
80% of the grain in wheat). It provides the growing plant with food. The main nutrients in the
endosperm are protein and carbohydrate. Aleurone consists of one or more layers of cells
between the bran and the endosperm (8- 10% of total grain). The number of layers varies from 1
cell thick in wheat, rye, oats and maize to up to 3 cells thick in barley and rice. The aleurone
layer is a concentrated source of vitamins, minerals and other nutrients. Germ is the part of the
seed that becomes a new plant if the seed is sown (varies from 12% in maize and 10% in
sorghum to as low as 2% or 3% in other grains). It consists of the embryo and the scutellum.
Most of the grain kernel's fat and vitamin E content is found in the germ.
The RFM industry is basically in agro-based processing industry engaged in the manufacture of
products based on wheat, namely maida, suji, atta and bran. In some states, under special
arrangements RFM units produce whole meal atta to meet the requirements of various
distribution programmers. Apart from direct consumption by general consumers, maida and sooji
produced by RFM units serve as the most important raw material to more than 55 thousand units
manufacturing bread, biscuit and bakery products all over the country. Besides this the resultant
wheat bran serves as the poultry feed. There is a good scope to venture into this field.
The Flour Milling industry is an old established industry in the country. The industry consists of
about 600 mills located all over the country with an estimated installed capacity of about 10
million tonnes per annum. Wheat is the only raw material and the industry processes wheat into
wheat products
Such as maida sujii attend and bran.Maida, which is the principal product of the industry is used
by the bakery industry for the manufacture of bread, biscuit, confectionery and various other

bakery products. Besides the industrial use of maida by the bakery sector there is a fair amount
of direct household consumption as well.
Rawa/Suji is mainly used by the household sector and there is an increasing usage in the
industrial sector for the manufacture of pasta products such as vermicelli, noodles etc.
Atta is consumed by the household sector as well as by the restaurants, hotels and dhabas. Atta is
the staple cereal diet in North India.Bran is used by the dairy industry as feed for the livestock.
The growth in demand for wheat products is dependent on increasing urbanization as this creates
a larger demand for convenient foods such as bakery products. The availability of wheat is
governed by the agro climate conditions and can become a constraining factor in inhibiting
increase in demand. However, the current position of wheat availability is very comfortable and
this is reflected by overflowing wheat stocks with the Food Corporation of India and a record
wheat harvest in 1994. Therefore, with the easy availability of wheat for the next few years,
increasing urbanization, and rising income levels, the demand for the flour milling industry is
expected to grow rapidly in the future.
The company is advantageously placed to exploit the increasing demand, as it is located in a
large metropolitan city which itself has a huge demand, is also located in the wheat growing belt,
which provides easy access to raw materials and being located in Delhi can also serve other
markets all across the country. This is because Delhi is the major trading centre for wheat
products for up country sales.

Quality control by Food Corporation of india in flour Mill

The Food Corporation of India was setup under the Food Corporation's Act 1964 , in order to
fulfill following objectives of the Food Policy:

Effective price support operations for safeguarding the interests of the farmers.

Distribution of foodgrains throughout the country for public distribution system.

Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure

National Food Security

Since its inception, FCI has played a significant role in India's success in transforming the crisis
management oriented food security into a stable security system.

The Quality Control (QC) wing of FCI manned by qualified and trained personnel is entrusted
with enormous task of procurement & preservation of foodgrains. The foodgrains are procured as
per laid down Specifications of Government of India and inspected regularly during storage to
monitor the quality. Representative samples of the stocks are drawn for physical and chemical
analysis to ensure whether the quality standard meets the parameters of laid down Specifications
of Government of India and Food Safety & Standard Authority of India (FSSAI). This is done
through a network of about 1850 laboratories throughout the Country. Many of the laboratories
at Zonal & Regional levels are well equipped to carry out physical & chemical analysis of the
foodgrains. The District and Depots laboratories generally undertake physical analysis of
foodgrains.

ORGANIZATIONAL STRUCTURE
MD

VP(sales&m
kt)Head

Operation
HEAD

LA
B

GM
Sales&
Mkt

SR.Manag
er

Purchas
e

DGM F&A

Manager
F&A

Mainten
ce

ASM

Literature Review

Sales Planning
With careful planning, youll have a much clearer vision of what you need to accomplish and a
roadmap for how to get there. Unfortunately, many sales professionals have never been taught to
create a comprehensive sales plan. The good news is that the process is relatively simple. Here
are seven steps you can take to create an effective sales plan:
1. Define your objective. Clearly outlining your goal should always be your first step in planning
a sales call or any other business endeavor. Is your purpose to establish yourself as a trusted
advisor? Close a specific deal? When you define your key objective, you can plan later steps
around achieving it.

HR
Dept

2. Evaluate the current situation. Next on the list is an honest assessment of the situation, and it
will relate to the goal you set in the first step. If your objective is to expand your relationship
with a customer, an evaluation of the current situation would consist of defining your present
relationship.
3. List barriers to success. This step can be one of the most critical to achieving your goals:
Create a detailed account of obstacles to your success. Knowing exactly what youre up against
can be incredibly inspirational, sparking new ideas about how you can overcome barriers.
4. Assess your strengths and assets. Take an honest look at your resources and think about how
you can apply them to achieve your objective. Strengths and assets can include things like
personal relationships, sales kits, competitive advantages like new products and much more.
5. Create your sales call strategy. Using the information youve compiled in steps one through
four, develop your sales plan by outlining how youll reach your goal. Depending on the
situation, your plan might include the sale of a specific product and the steps youll use to
persuade your prospect.
6. Identify your needs. Once you have your basic strategy in place, now is the time to outline
what youll need to get the job done. Your needs may include items like a sales deck or demo
program. Requirements could also include a list of accounts. The important thing is to identify
needs upfront.
7. Outline an action plan. The action plan is a companion piece to the sales call strategy
described in step five: It is a to-do list of tactical steps youll need to accomplish the strategy.
The action plan might include items such as finalizing pricing with your company before you
make the sale.
Sales professionals, perhaps especially those who have been in the business for awhile, often
neglect to thoroughly plan sales calls, counting on their experience and confidence in their ability
to think on their feet to carry them through. And while that strategy may generate adequate
results, it doesnt prepare the sales professional for every contingency and may produce less than
stellar returns.
In just about every other facet of life, accomplishing an important task requires careful planning,
be it hosting an event, winning a baseball game or putting together a vacation itinerary. The same
is true of sales: No matter how experienced you are, having a solid game plan will give you that
much more confidence and free you to focus on every new opportunity.
By following these seven steps, you can create a comprehensive sales plan that will allow you to
understand your challenges and use your assets to their best advantage. With upfront planning,
you can gain the confidence you need to pursue new sales opportunities and win.

The Marketing Mix

A marketing plan consists of four elements and a decision. The four elements (the Four Ps) are:
Product
Price (or cost)
Place (where its advertised or located)
Promotion
How these four elements are combined is called the marketing mix. The decision is where to
position your product, service or organisation in the market, on the basis of the marketing mix.

Product
Our wide array of products caters to every customer need and want. Maida is finely milled and
refined wheat flour that finds extensive application in Indian bakery products and food items. It
resembles cake flour in appearance. Sooji is a very gritty, coarse type of flour, usually made from
wheat however the term is also applied to maize. Our hygienically manufactured products are
renowned for high quality and rich taste. The use of modern technology ensures that products of
the finest atta are served on your table every day.
Manufactured from one of the best quality of wheat, Atta is produced in a highly modernized
environment meeting strict safety standard. The extracted wheat and other ingredients are
crushed using the popular Buhler machine of Switzerland to ensure 100% purity and fineness.
The company has already introduced Bar Codes to their entire range of consumables as plan of
their renewed quest to achieve excellence in all aspects. According to them the bar codes will
help them strengthening the features of their entire range of products greatly. All the labels/packs
of the brands already contain the information regarding manufacturing date, expiry date, batch
number and MRP.

Our products are listed below :

Maida Superfine: Maida superfine is premium quality wheat flour with high strength and
protein content. Suitable for: Luxury bread, snacks like kachori, samosa and sweets like halwai.

Maida Special: Maida special is high quality wheat flour of moderate strength and protein
content. Suitable for: Snacks like fanne, mathi and kulcha.

Maida For Bread: Maida manufactured exclusively for the manufacture of high quality
buns, bread and pav.

Maida Patent : Patent maida is the perfect balance of flour strength and cost effectiveness.
Suitable for: All food applications right from snacks like kulcha to noodles.
Tandoori Atta : Tandoori atta is highly appreciated for its rich taste and purity and is a result of
stringent processes. Suitable for: Tandoori rotis, parathas
Whole Meal Atta : Whole meal atta has been the health choice for generations and is obtained
by completely grinding whole wheat grains. Suitable for: Chapati, roti and puri.
Rawa : Rawa is another well known form of semolina milled to perfection by Ganga Roller
Flour Miils. Suitable for: Halwa, Uttapam etc.
Sooji : It is coarse wheat flour that is rich in taste and used for almost all food items. Suitable
for: Idli, panipuri, sweet dishes, chiroti and upma.

Product Strategies:
Differentiation Strategy:
Under a differentiation strategy, The Company tries to be different and unique from its
competitors. It may offer better quality, quantity, Pricing, appearance, and after sale-service,
when compared to its competitors. It may more features and facilities in its product. It may be
more flexible while dealing with its customers. It may also quick and better delivery of its
products.

Market segmentation strategy:

In market segmentation strategy, the company divides the market according to the type of
customers it has to focus and target. It sells dofferent products to different types of customers.

Quality strategy:
Under quality strategy, the company Produces and sell high-quality products. The price of such
products are very high. However, this strategy attracts customers who prefer top quality products
and are ready to pay necessary appropriate prices.

Delivery strategy:
Under delivery strategy, the company delivers its product and services to their customers as early
as possible that too within a fixed time period. The company gives top priority to fast delivery of
products and providing quickest accessibility of services. Speed delivery of products and fastest
accessibility of services removes the problem of scarcity and unnecessary delays in the market.
Delivery strategy is used as a selling tactic to fight cut throat compettion.

Brand
"A brand is a distinguishing name and/or symbol (such as logo, trademark, or package design)
intended to identify the goods or services of either one seller or a group of sellers, and to
differentiate those goods or services from those of competitors. A brand thus signals to the
customer the source of the product, and protects both the customer and the producer from
competitors who would attempt to provide products that appear to be identical."

Branding:
o Branding is a process, a tool, a strategy and an orientation.
o Branding is the process by which a marketer tries to build long term relationship with the
o

customers by learning their needs and wants so that the offering (brand) could satisfy
their mutual aspirations.
Branding can be used as a differentiation strategy when the product cannot be easily
distinguished in terms of tangible features (which invariably happens in case of many

services, durables etc.) or in products which are perceived as a commodity (e.g. cement,
fertilizers, salt, potato chips etc.).
Brand building is a conscious customer satisfaction orientation process. The brand
owner tries to retain customers to its fold over their competitors by a mix of hardware
software because when a customer feels satisfied he / she develop a kind of loyalty for
the same.

Build a Brand
A memorable brand can reinforce your difference from competitors and can help to encourage
customer loyalty. But developing a lasting brand involves a lot more than simply redesigning
your logo.
1. Identify what qualities, values and experiences customers associate with your
business. In order to build a credible brand, you will need to establish what these
are. Remember, a brand is more than a just a name and logo.
2. Dont ignore customer perceptions in order to project a desirable, but untruthful,
image. If the claims you make about your business and its offer dont tally with
customer experience, they will go elsewhere. But if your business delivers what
your branding promises, you will gain trust and retain custom.
3. Think about every part of your business if your customers associations with
your brand are negative or very different from the image you project, you may
need to change your offer, your customer service strategy or even the way you run
your business.
4. Involve your employees they will have their own idea of what your business
stands for and whether it is delivering on its promises. Besides, you will need
their co-operation if you are going to change your operation.
5. Create a set of consistent brand messages that focus on the qualities, values and
experiences that customers associate with your business, its products and services.
Keep these simple and easy to communicate.
6. Develop a distinctive visual brand. This must reflect your overall identity if
you are upbeat, your visuals should be bright and engaging. If you don't have the
necessary skills, employ a designer to help you.
7. Apply your branding, including your visual brand and brand messages, to all of
your materials from packaging and signage to stationery, your website and
marketing materials.
8. Get legal protection for your visual branding and any distinctive phrases you use
to describe your business or your offer.
9. Remember that everything your business does is linked to your brand in the eyes
of the customer. This includes the way your employees dress and behave.

10. Communicate your brand to your employees and explain why and how you
arrived at the brand identity you are promoting. You will need their support for
your new branding to be effective.
11. Promote your new or revised branding through a marketing campaign that
includes press releases, PR and advertising, special offers and promotions to
customers.

Brand Equity
Brand equity as a set of associations and behaviors on the part of a brands customers, channel
members, and Parent Corporation that permits the brand to earn greater volume or greater
margins than it could without the brand name and that gives the brand a strong, sustainable, and
differential advantage over competitors.

Brand Loyalty
loyalty is defined as a deeply held commitment to re-buy or re-patronize a preferred
product/service consistently in the future, thereby causing repetitive same-brand or same brandset purchasing, despite situational influences and marketing efforts having the potential to cause
switching behavior"

GM flourmill Enterprise brand build

Product quality
Service

Price
GM flour mill always give value of money to their consumers. The price is dependent on the
market of each individual products. They keep themselves updated about the prices of the
competitors. If they get to know the change of prices of their competitor, they spontaneously take
action for this. Some other reasons are also kept into mind before pricing. It is known for its
competitive pricing. For example, Atta and Maida being the clear leaders are priced with higher
margins for the company as compared to competition. This is because the product quality is good
enough and a bit of skimming price will not cause the customer to switch brands.

Place (The Distributor Network):

A theoretical frame work of channel of distribution Marketing channels are sets of
interdependent organization involved in the process of making a product or service available for

use or consumption. The main objective of the marketing process is to distribute the products to
the actual users. This function involves a number of sub-functions to be performed by a producer
or manufacturer. These two functions are most important first, the creation of demand is made
through the process of advertising and sales promotion activities. On the other hand the
distribution through the channels of distribution. The decision relating to the channel of
distribution is a very important decision from the firm point of view because the selected
channels affect considerable other marketing decision. Such decisions are of long term nature
and exercise their impact on the cost structure of the firm also. By channel distribution mean the
intermediaries or the process through which the goods products are transferred from the producer
to the ultimate users. Now a day any of the producers possibly do not sell their goods directly to
the final users. There are a lot of intermediaries between producers and consumer, bearing a
variety of name performing various kinds of function. Some intermediaries like wholesalers and
retailers buy and resale taking the bill. They are known as merchant middle men and other are
brokers, representative sales agent who seeks or search for customers and negotiate on the behalf
of the producer but do not take of goods. These are called as middlemen.
The manufacturer and its distributive outlets share common objective to sell the manufactured
products at a profit. No doubt its objective differs with the marketing circumstance. Even though
many variation of specific objective fits into some categories. These are as follows:

To develop managerial efficiency in distribution organization.

To stimulate distribution.
To built distribution network loyalty.

The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers, whole
sellers and producers within the structure. It may be considered as a series of function which
must be performed in order to make producers efficiency.
To bearing maximum profits of all institutions concerned a channel of distribution should be
treated as a unit of total system of action. The activities of the manufacturer need to be
coordinated with these middlemen used in the distribution of given product.
The important of middlemen in channel of distributional can be over emphasized.
It is that who1. Collects concentrates the output of various producers,
2. Subdivides these into lot desired by the customers gathers various items
assortment wanted and

together in the

3. Disperses the assortment to consumer industrial buyers.

The role of middlemen that of specialist in concentration equalization and dispersion besides he
side in the creation of the time from and procession utilities.

Decision making for channel of distribution

The marketing executive must undertake to following steps in order to establish the channel of
distribution for a company.
1. He must understand the retail and wholesales market and type of middlemen available in both.
2. He must understand the various conflicts which continually exist between and within the
channel.
3. He must select the general channel to be used keeping in mind the goals of the company
marketing programme and the job to be done by distribution system.
4. He must take decision regarding be intensity of the distribution (i.e. the number of middlemen)
to be used each level and each market.
5. He must select the specific firms which will handle his product and then manage the day to
day working relationship with them.
6. He must determine the methods and the procedure in firms (i.e. use of the transportation and
warehouse facilities and services in firms making programme) in the physical distribution of the
product.

Types of Marketing Channels

1. Direct marketing channel : A marketing channel that has no intermediaries level.
2. Indirect marketing channel : Channels containing one or more intermediaries.

Customer Marketing Channels

Channel 1. Manufacturer..Consumer
Channel 2. ManufacturerRetailerConsumer
Channel 3. Manufacturer...Wholesaler.RetailerConsumer
Channel4.Manufacture.Distributors..Wholesaler
Retailer.Consumer

Distribution Strategies
1) Indirect distribution- Indirect distribution is when the product reaches the
customer through numerous channels in between. For example

end

Manufacture.Distributors..Wholesaler
Retailer.Consumer.Thus the chain is long.
2) Direct distribution-Direct distribution is when company either directly sends the
product to end customer. For example
Manufacturer..Consumer. The
channel length is very less.

Wholesaling
Wholesaling includes all the activities involved in selling goods or services to those who buy
for resale or business use. Manufactures use wholesalers because wholesalers can perform
function better and more cost effectively than the manufacture can. These functions are not
limited to selling and promoting, buying and assortment building bulk barking, warehousing,
transporting financial risk bearing dissemination of marketing information and provision of
management services and consulting.
Like retailers wholesaler must decide on target market, product assortment and services
promotion and place. The most successful wholesalers are those who adopt their services to meet
and target customers needs, recognizing that existing to add value to the channel.

Retailing
Retailing includes all the activities involved in selling goods or services directly to find
consumer for their personal non-business use. A retailer or retail store is any enterprise which
sales volume comes primarily form retailing.
All marketer retailers must prepare marketing plans that include decision on target market.
So the marketing channels can be viewed as a set of interdependent organization with high
potential for conflict. Then why would any business chosen to become part of channel system.
The distribution system of XYZ Flour Mill follows the FMCG distribution pattern. The effective
distribution network of XYZ Flour Mill has almost eroded the small and middle level players in
the market. Mill>>Distributors>>Whole Seller>>Retailers>>customer

Promotion
Promotion is one of the important elements of marketing mix. There are so
promotion such as

Advertising
Direct Marketing
Public Relations
Sales Promotion

many elements of

Sales promotion
Sales promotion consists of a diverse collection of incentive tools, mostly short-term designed
to stimulate quicker and/or greater purchase of particular products/services by consumers or the
trade.
Traditionally, sales Promotions have been used by marketer to increase sales in the short term.
However, in the last few decades this communication tool has evolved and now is considered
from a strategic point of view. For this reason, it is necessary to realize new studies in this area
and study how consumers evaluate sales promotions.
Sales promotions have grown in both importance and frequency over the past few decades.
Although an accurate estimate for total sales promotions expenditures does not exist, we can be
sure that the trend is up.
Sales promotion serves three essential roles: It informs, persuades and reminds prospective
customers about a company and its products. Even the most useful product or brand will be a
failure if no one knows that it is available. As we know, channels of distribution take more time
in creating awareness because a product has to pass through many hands between a producer and
consumers.
Therefore, a producer has to inform channel members as well as ultimate consumers about the
attributes and availability of his products. The second purpose of promotion is persuasion. The
cut throat competition among different products puts tremendous pressure on their manufacturers
and they are compelled to undertake sales promotion activities. The third purpose of promotion is
reminding consumers about products availability and its potential to satisfy their needs.
From these elements Sales Promotion is the element which is in the focus of this project. Further
Sales Promotion is quite broad term it includes
1)Consumer Oriented Sales Promotion
2)Trade Oriented Sales Promotion

Consumer Oriented Sales Promotion

Consumer Oriented Sales Promotion includes Sampling, Couponing, Premiums, Contest,
Refunds, Rebates, Bonus Packs, Price-off, Event marketing etc.

Marketers uses consumer oriented sales promotion tools for the following
reasons:

To increase short term sales

To induce trial

To reduce inventory

To establish a brand name

To make cross selling

To cope up with competition

To avoid advertising clutter

Tools of Consumer Oriented Sales Promotion:

There are so many tools or technique available to the marketers for achieving objective of sales
promotion. These tools should be used considering all other factors affecting such as cost, time,
competitors, availability of goods etc. These tools are as under

1.

Free Sampling

2.

Price-Off

3.

Discounts

4.

Product trail

5.

Rebates
Lets have look at each tool

Free sampling:

In this case, small units of free samples are delivered door to door, attached to another product,
or given along with the purchase of some other product (e.g. maida, Atta, Suji, etc). Free samples
are normally provided during the introductory stage of the product.

Price-off:
A price-off is simply a reduction in the price of the product to increase sales and is very often
used when introduction a new product. A reduction in price always increases sales but the use of
this technique should be carefully considered in the current market situation.
Price-off is the most preferred sales promotion technique because consumers response very
positively to this scheme. Not only that but it also cause large increase in sales volume. Price-off
reductions are typically offered tight on the package Through specially marked price packs.

Discounts:
It refers to reduction in price on a particular item during a particular period. It is common during
festival season or during off-season period. It is very stimulating short-term sales, especially
when the discount provided is genuine one.

Rebates:
Rebates are popular with both consumers and the manufacturers that provide them. When you
get a rebate, you are refunded part (or all) of the purchase price of a product back after
completing a form and sending it to the manufacturer with your proof of purchase. The trick is
completing the paperwork on time. Although different types of sales promotions work best for
different organizations, rebates are very profitable for companies because many consumers forget
or wait too long to send in their rebate forms. Consequently, they do not get any money back.
Rebates sound great to consumers until they forget to send it back.

Factors Influencing Consumer Oriented sales promotion:

Level of Competition:
Promotional efforts are designed according to type and intensity of competition. All promotional
tools are aimed at protecting companys interest against competition. Level of promotional
efforts and selection of promotional tools depend on level of competition.

Purchase Quantity and Frequency:

Company should also consider purchase frequency and purchase quantity while deciding on
promotion mix. Generally, for frequently purchase product, advertising is used, and for
infrequently purchase product, personal selling and sales promotion are preferred. Personal
selling and advertising are used for heavy users and light users respectively.

Target Market:
While doing sales promotion, marketer must know who their target market is; otherwise there is
no use of all effort because it leads to nowhere. A target market can be in any of the stages of
buying hierarchy i.e. awareness, knowledge, liking, preferences, conviction and purchase. Each
stage defines a possible goal of promotion.

Nature of the product:

There are various product attributes which influence sales promotional strategy. When the unit
price is low the manufacturer as well as the customer has low risk but he can get the benefit of
mass marketing. Therefore, mass marketing requires mass sales promotion schemes. Sales
promotion scheme differ for products like its durability, perishable goods etc.

The concept of sales promotion consists of diverse collection of incentive tools, mostly short
term designed to stimulate quicker and/ or greater purchase of a particular product by consumers
or the trade. It always offers an incentive to buy a product or service. Sales promotion efforts are
directed at final consumers and designed to motivate, persuade and remind them of the goods
and receives that are offered. There are therefore several reasons why firms are compelled to roll
out sales promotional packages for its customers and potential customers.
Customers have become more price sensitive because of the increasing cost of living. The
economic recession is likely to fuel this trend further, as consumers and dealers become more
sensitive towards prices. Price offs or discounts for example discourage brand switching by users
and new product launch by competitors. Timely sales promotion according to them can keep
consumers from trying new brands or keep the wind out of a competitor s grand opening
however attributes the rationale for price offs to what they called trial. According to them,
motivating consumers to try products or switch is crucial to conversion. For instance, consumers
have become expectant of the purchase incentives and always look out for firms who will offer
such benefits.
Services and products standardization in the global market has also given rise to the increasing
use of sales promotion in reaching out to its consumers and potential consumers. Brands and
services especially in the telecom industry have been perceived by consumers to be more or less
similar within a given price range due to firms inability to really differentiate its products. In
view of this problem, the other promotional mixes are notable to influence the consumer s

Perceptions and create brand franchise. As a result of these perceptions of similarity among brand
s, firms have no option than to compete with other competitors on the basis of the extra benefit
offered through sales promotion. Pressure from competitors and increased competition has also
given rise to the need.
sales promotion in recent times. The increased competition has left companies to differentiate thei
rservices and product on price and not the other features of the service or product. For instance if
competitors offer price reduction, contest or other incentives, a firm may feel obliged to also
come out with its own sales promotion for consumers to benefit from the service lest they face out
of the competition. All these rationale of sales promotion, though unique from each other, has a
long term on increasing the firms market share, improve sales volume, retain customers and
reduce switching of customers.

Trade-oriented Sales Promotion:

Trade-oriented sales promotion programmes are directed at the dealer network of the company to
motivate them to the sell more of the companys brand than other brands. It is also known as
push strategy, which is directed at the dealer network so that they push the brand to the
consumers by giving priority over other competitor brands.

Some of the important trade-oriented promotion tools are as follows:

Credit terms:
Special credit terms may provide to encourage bulk orders from retailers or dealers.

Dealer trophies:
Some firms may institute a special trophy to the highest-performing dealer in a particular period
of time. Along with the trophy, the dealer may get a special gift such as a sponsored tour within
or outside the country.

Stock return:
Some firms take back partly or wholly the unsold stocks lying with the retailers, and distribute it
to other dealers, where there is a demand for such stocks.

Dealer conferences:
A firm may organize dealer conferences. The dealers may be given information of the companys
performance, future plans, and so on. The dealers can also provide valuable suggestions to the
company at such conferences.

Cash bonuses:

It can be in the form of one extra case for every five cases ordered, cash discounts or straight
cash payments to encourage volume sales, product display, or in support of a price reduction to
customers.

Sales Promotion Strategies:

Push Sales Strategy
A push promotional strategy makes use of*a companys sales force and trade promotion
activities to create consumer demand for a product. It involves convincing trade intermediary
channel members to push the product through the distribution channels to the ultimate consumer
via promotions and personal selling efforts. The company promotes the product through a
reseller who in turn promotes it to yet another reseller or the final consumer.
In other words the producer promotes the product to wholesalers, the wholesalers promote it to
retailers, and the retailers promote it to consumers. Trade- promotion objectives are to persuade
retailors or wholesalers to carry a brand, give a brand shelf space, promote a brand in
advertising, and/or push a brand to final consumers. Typical tactics employed in push strategy
are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts,
displays, and premiums.

Pull Sales Strategy

A pull strategy attempts to get consumers to pull the product from the manufacturer through
the marketing channel. The company focuses its marketing communications efforts on
consumers in the hope that it stimulates interest and demand for the product at the end-user level.
A pull selling strategy is one that requires high spending on advertising and consumer
promotion to build up consumer demand for a product.
This strategy is often employed if distributors are reluctant to carry a product because it gets as
many consumers as possible to go to retail outlets and request the product, thus pulling it through
the channel. Consumer-promotion objectives are to entice consumers to try a new product, lure
customers away from competitors products, get consumers to load up on a mature product,
hold & reward loyal customers, and build consumer relationships. If the strategy is successful,
consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the
wholesalers will ask the producers.
Typical tactics employed in pull strategy are: samples, coupons, cash refunds and rebates,
premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes,
games, and point- of-purchase (POP) displays.

Combining Push and Pull

To bolster sales, try combining the two systems. For instance, offer your
customers
coupons, free gifts or a frequent customer loyalty incentive to drive traffic to your
business. These activities fall under the "pull" strategy. At the same time, offer your sales
team an incentive such as a vacation contest, extra commission or a better parking space
for selling a particular product or moving a certain volume of merchandise. This falls
under the "push" strategy. By combining the two methods as part of an overall
promotion, you will be matching motivated buyers with an eager sales team to increase
sales growth.

Competitive Method for FMCG

he market of fast moving consumer goods commonly known as FMCG is wide, diverse
and full of competition. A product with high-turnover and low price falls under the
category of FMCG. Such products have a small shelf life. It includes items like toiletries,
soap, cosmetics, and non-durable items like glassware, bulb, paper products, and
batteries. Items like medicines, packaged food & drinks, soft drinks etc also fall under the
same category.
The Indian FMCG market is the fourth largest sector in the economy and it plays a
crucial role in the Indian economy and creates employment.
The scenario of Indian market is mostly decided by the FMCG companies. There are top
business giants taking lead and several hundred emerging companies trying hard to come
forward and stand with leading FMCG producers.
The market of FMCG is very competitive and manufacturers are coming forward with the
latest ideas and techniques to beat the competition and remain on the top.
A recent boon in the FMCG sector has made it highly competitive. The mushrooming
number of companies has made market a ground for the FMCG companies to offer their
best and grab a bigger section of the people. Innovative, marketing campaign, best price
offer and attractive packaging clearly indicate how tough the market is.
The market of FMCG is very wide and the demand of FMCG products will increase in
the coming future. Companies plan competitive strategies in order to attract and connect
to the potential customers. The goal of designing a competitive strategy is to provide
better service to the consumer at low price and stand ahead of the competitor.

Five main competitive strategies are:

Overall low cost leadership strategy

Best cost providers strategy
Broad differentiation strategy
Focused low cost strategy
Focused differentiation strategy
There is no single strategy that can define success. Different FMCG companies follow
different strategies to attract the consumers.
DM the leader of FMCGs strategy is to provide customer friendly products at low prices
without compromising on the cost. The portfolio of AK includes premium brands like
Atta, maida, suji .
The market of FMCG is spread all over the country. Earlier companies were
concentrating on big cities and metro cities for selling the products and their marketing
plans and advertising were designed suiting the taste of urban people. But now the latest
trend shows that the FMCG market has a lot more potential in rural market and the Indian
rural market has lots of surprises for the FMCG manufacturers. Few Major players are as
under: Ambe Inds. Ltd. Patna Ambuja Flour Mills Ltd. Anirudh Foods Co. Ltd. Rohit
India Ltd. Shri Ramalinga Roller

Sales Efforts in Market

Pre-Customer Contact
A smart builder would not attempt to build a house without a good foundation. Likewise,
a businessperson should not place people on the sales floor or telephone until these
people know the business, merchandise, services, and customers. Before any contact is
made with the customer, every salesperson should know:
Policies, Procedures, and Rules. Have these in writing for all employees to see and to
know.
Operation of Equipment. No matter whether the register is electronic or mechanical, the
time to learn how it works is not after a sale while the customer waits for the change.

Target Market Knowledge. The better salesperson knows something of the likes and
dislikes of the firms primary customers. The business operator should tell all sales
personnel about the business's customers and their lifestyles. Tell the salespeople about
customer's interests and their ability to buy.
Product Knowledge. A salesperson gains confidence by knowing about the products and
services he or she is sales. If a person sells shoes, it helps to know the merchandise as
well as how to fit them. If a person sells building materials, the sales job is probably more
effective if the salesperson can also help answer questions about home repairs. It helps
the person who sell clothes to know something about fabrics and current fashions. If the
person is in the lawn service business, that person should know about lawn care. Most
sales personnel will not take the initiative to acquire product on their own. It is
management's responsibility to encourage employees to gain product and service
knowledge. Management should make such knowledge available to them.

2. Prospecting
Although not appropriate to every sales situation, prospecting should be used whenever
possible. Essentially, prospecting involves not waiting for the customer to show up at a
store or to phone about a service. It is concerned with taking the initiative by going to the
customer with a product or service idea. Prospecting may be of two types: new or regular
customer prospecting.

New Customer Prospecting. A salesperson sees that a person is getting married.

Action is taken on this knowledge by contacting the person and telling her about
appropriate items (or services) that might be of assistance to a new bride. By using
newspapers and personal contacts, a salesperson can take the initiative to contact and
create new customers.

Regular Customer Prospecting. A firm's best prospects are its current customers.
A salesperson should make a practice of calling regular customers on a periodic basis to
tell them about products or services. "Hello, Mrs. Sangita, I just wanted to tell you about
the new shipment of dresses that we received today. As I unpacked them, I saw several
that made me think of you." Prospecting with regular customers works! All salespeople
should be encouraged to prospect by phone and in-person whenever they see regular
customers. A word of caution must be emphasized. Don't go to the well too often.
Prospecting with the same regular customer on a frequent basis can make prospecting
lose the special feeling that it can create in customers. Do not overuse it.

3. Initial Contact

The most effective way to close a sale is to open it on a positive note. Unfortunately, most
sales do not open this way.
Collect following information from the initial customer :
a. Customer name
b. Address (take visiting card)
c. Contact person name
d. Contact no.
e. Brand name
f. Payment terms
g. Sources of material

Manufactures

Wholesaler

Retailer

This ritual leaves much to be desired. It is an automatic statement that shows no

creativity on the part of the salesperson. Also, because the customer has heard the
statement many times, his or her response is usually given without thinking what was
said. Every salesperson should be challenged to treat each customer as an individual by
responding differently to each customer.
Initial contact also means responding to customers when they enter the sales area even
when they cannot be waited upon immediately. Salespeople should be instructed to tell
waiting customers that, "I'll be with you in a moment." Such actions will reduce the
number of customers who leave without being served. When the employee is free to help
the waiting customer, the initial comment should be, "Thank you for waiting." A
courteous, creative initial contact with the customer can go a long way to promote sales.

4. Presentation of Merchandise
In presenting merchandise (or services) to the customer, the salesperson should use
product knowledge to best advantage.

Buyer Benefits. Although it is good to talk about the lawnmower's 3.5 horsepower
mower, customers may be more interested in hearing how fast the lawnmower will cut
the grass. Product knowledge is important but the salesperson must remember what
makes the customer buy.

Customer Involvement. Product knowledge can be used to get customer

involvement. Show the customer several features of the digital watch and then have the
customer put it on and work it. If the interest is there, it will be hard for the customer to
take off the watch so that the salesperson can put it back into the case. The best way to
present many products is to get involvement. Want to sell dance lessons? Get the
customer on the dance floor and let the fun of dancing do some of the sales. The same is
true with clothes, perfume, sports equipment, and almost anything else.

Sales Follow-up
Although not apparent to many salespeople, follow-up is a part of every sale. The closing
statement, "Thank you for shopping at (name of store)," is a form of sales follow-up if
done with enthusiasm. Unfortunately, just making the statement in an automatic manner
is about as effective as that other "worn out phrase," "May I help you?" If done correctly,
however, it allows the customer to leave on a positive note, thereby increasing the
chances of repeat business by the customer.
Follow-Up may also concern itself with checking on anything that was promised the
customer after the sale. If delivery is supposed to take place on Friday, the salesperson
will check to make sure the promise will be met and, if not, will notify the customer of
the problem. Good sales follow-up will prevent the type of situation that occurs so often
when the customer calls on Friday asking, "Where is the delivery truck?" A business with
a reputation for sales follow-up is going to obtain additional business because of its
concern after the sale. Sincere sales follow-up is good business. Imagine the impact that
can be had on a customer when the carpet cleaning service telephones the customer 48
hours after cleaning to be sure that everything is satisfactory. Sales follow-up builds
goodwill and repeat business

SWOT Analysis of FMCG Sector

Strengths
1. World-class quality, service and manufacturing excellence.

2. Has cutting edge technology for washing and cleaning wheat

3. Continuous investment in manpower, capacity increase and extended dealer network.
4. Suppliers include ITC, Olam exports, etc.
5. Good brand visibility through TVCs and print ads

Weaknesses
1.Well-known only in South India.
2.People cannot associate with the brand famous for pan masala

Opportunities
1 .Increase its presence in other parts of India other than south India.
2. Increase exporting its high quality flour.
3. Introduce aata with a new brand name

Threat
1. People dont prefer ready-made flour.
2. Competitors have flours having higher brand recall

Research Methodology
Objectives
1. To study consumer preferences with respect to sales Improvement in FMCG sector.
2. To examine tradeoffs, relative importance of different attributes while responding to a
sales promotion offer.
3. To study the effect of sale improvement in FMCG sector esp. in Flour (Atta ,Suji
,Rawa and Maida) industry.
4. To study consumer behavior in purchase of Atta , Suji ,Rawa and Maida

Motivation for the study

With the growth of population and spending power of the consumer has created the opportunities
and challenges for the FMCG companies in the world market. Simultaneously, competition to
win consumers has been increased drastically. World is becoming the small village and Many
MNCs have entered in India and other countries. Marketing paradigm is shifting from consumer
satisfaction to consumer delight. Enticing consumers with the various sales promotion schemes
is the order of the day. If this tool is not used strategically, company has to follow the trend of
promotions to maintain the market share. Considering almost universal applications of designing
the sales promotion schemes and understanding its impact on business has motivated to take the
steps in the direction to study this crucial aspect of promotion management.

Research Design
A research design is a framework or blue print for conducting the research project. It details the
procedures necessary for obtaining the information need to structure and/or solve research
problems. The research design lays the foundation for conducting the project. The descriptive
research design is being used to study the formulated problem.

Product categories under study:

Maida
Atta
Sooji
Rawa
Data collection Method:
Primary Data collection Method:

Survey method was used for primary data collection

We used questionnaire as an instrument for survey method.
Type of questionnaire: open ended and closed ended
Structured questionnaire has been prepared considering objectives of the study.

Secondary data Collection Method:

Reference books.
Internet

Sampling Detail

1. Target population: The population for this research study consists of the residence of
Dohana Gat.
2. Sampling unit: In this study the sampling unit is individual consumer.
3. Sample size: 100 EndUser .
4. Sampling method: The sample is selected by using convenience-sampling method.

Questionnaires
Questionnaires were the main instrument regarding primary data collection. A copy of
questionnaires has been enclosed in the Annexure. In additional to the questionnaires
method, data was also collected by interviewing the respondents face-to-face. This
ensured that the data collected through questionnaires was accurate. In the process of
conducting interviews, observation the respondents body language, facial expression.
This was true in case of XYZ Flour Mill. ,Thus in this way data collection was done.

Data Analysis
Analysis of Data
Data are collected from Different location.
1.
2.
3.
4.

Atta Market
Ajay Vihar
Kavita Colony
Alpha commercial

Survey Analysis
Outlet of Composition:
Sr.no
1
2
3
4

Sales
Atta
Maida
Both
Sooji,Rawa

No. of outlet
35
45
15
5

No. of outlet
15%

5%
35%

45%

Interpretation : The exclusive stores of atta , maida is Comparatively much higher

incomparision to the exclusive stores of flour mill . The shops which sell products of
atta, maida other companies hold a large number .The market composition of the area
under survey can be easily understood by the above graph.

Types Of Outlet:
Sr
.No.
1
2
3
4
5
6
7
8

Sales

No. of Outlets

Bakery Shop
Dhaba
Restaurant
Sweet shop
Namkeen items
Food shop
Retailer
Wholesaler

4
25
15
25
10
15
2
4

Types Of Outlet: No. of Outlets

2% 4% 4%
15%

25%

10%
15%
25%

Interpretation : The maximum number of Outlets in the region surveyed is of

conveniences hops which includes Dhaba, Sweet shop etc. it is followed by Roti , Naan ,
Samosa, Kachori etc.. The most striking features is that there is a great lag between the
numbers of different kinds of outlets. So the distributors should distribute the products
segment wise accordingly.

Market Share
Market
Share
Product

% share

DM
GM
Others
Total

51
42
7
100

% share
7%
DM
42%

51%

GM
Others

Interpretation : There is dominancy of DM in market. AS is its chief competitor.

Which brands of Maida, Atta and Sooji&Rawa you Use ?

a.DM
b.GM
c.Others
Alternative

No. of End User

DM

58

GM

12

Others

30

No. of End user

DM
30%

GM
Others
58%

12%

How many bags of Maida & Atta you Consume in a day

a. 6-10bags
b. 10-20bags
c. More than 20bags
Alternative

No. of End User

6-10 bags

30

10-20bags

45

more than 20

25

No. of End User'sBags

Consumption in a day
6-10 bags

10-20bags

25%

more than 20

30%

45%

From where, you buy Maida, Atta , Rawa& Sooji?

a. Mill
b. Distributor
c. Wholesaler
Alternative
Mill
Distributor
Wholesaler

No. of End User

2
63
35

From where, you buy Maida, Atta Rawa& Sooji?

2%

Mill

35%

Distributor
Wholesaler
63%

What is your payment terms?

a. Cash
b. Credit

Alternative

No. of End User

Cash

20

Credit

80

No. of End User's Pament terms

Cash

Credit

20%

80%

What type of Atta ,Maida does a End user Preferred most?

a. Maida Patent
b. Maida S.P
c. Atta Mill
d. Atta Chakki

Alternative
Maida Patent
Maida S.P
Atta Mill
Atta Chakki

No. of End User

36
20
24
20

What type of Atta ,Maida does a End user Preferred most?

Maida Patent Maida S.P Atta Mill Atta Chakki

20%
36%
24%
20%

Can we send sample of GM?

a. Yes
b. No
c. Next time

Alternati
ve
Yes
No

No. of End User

25
30

Next time

45

Can we send sample of GM?

25%
45%

Yes
No
Next time

30%

FINDING:
DM is Market leader and GM is the market challenger in the market whole market
Where I have surveyed.
From the DM Products Mill Atta and GM Products Maida is highest selling in the
market.
DM is market leader in overall market,
In some market like Ajay Vihar the supply of GM is better than DM.
In case of Mill Atta is selling more than Chakki Atta.
In case of Maida Patent is Selling More than Maida S.Patent
I have found that demand of Mill Atta is high at Dhaba & Restaurant.
I have found that End user gives more preference to the products Like Maida, Atta
comparing with Sooji & Rawa.
The Demand of Sooji & Rawa is very Low.
According to this survey in 20% Outlets Pre- sale Responded well while in 80%
outlets response was low.
In the case of the scheme DM is providing more schemes than the GR.
Some End user ask for schemes.
If End User complaints Regarding Poor Quality & Service than he is not
responded properly.

As every knows that the product is sold by the last channel of the distribution to the
ultimate user of the product that is consumer. Hence it is the responsibility of the upper
distribution channel those who work for the particular company to provide all the facility
And offer to the End user who sell their product because that last channel pr the seller is
not bound to sell a particular product but he is free to say any product which gives him
profit.
Although the upper level of distribution channel know that lower level End user have
direct contact and relation with the ultimate consumer at the same time he is very well
Aware of the taste and demand of the consumer than in spite of to make End user angry
The upper level tries and does a lot for the shake of sell of his product by the lower level
of End users he know that he can sell any other substitute to his consumer for any
product and as DM the biggest competitor of PEPSI product and they are giving a lots
schemes and offers to the lower level of End user so as to force them to sell their product.
by knowing that the sell can be raised by the willingness of the lower level of End user as
they are only who directly interact with the consumer. According to survey DM product
is having a large no. of consumers and End user and also want to sell DM product but
because of various common problem like , offers, discount, glow signboard and many

other things. They become angry and hence they dont want to keep their product and try
to sell other companies product.
Limitation
Each and every works has its own limitation .In my study some limitation are there as1. The sample size is 100 e . The all observation has been drawn on the basis of these 100
end user.
2. Sometimes retailers have not given answer properly because they were doing another
work due to their business. At sometime they are free but they show reluctance.
3. Sometimes retailers have not clear and exact data about how much the sell and which
brand is taking lead in sale of Maid , Atta on their shop. They give on approximate data.
4. It is survey of particular area and I can not make it universal.
5. Sampling has been done on the basis of random sampling and some time random
sampling does not give proper representative.

CONCLUSION
Everything in this world is made to utilize properly but it should be reach at theproper
person or to the proper utilized areas. otherwise the value added to those things became in
vein.
as there is proverb that,
far from eye, far from heart
thus marketing role plays a very important role in achieving theobjective of a company.
undoubtly, value utility is created by the manufacture of product or service but time and
place utilities are created by marketing role. according to drucker, both the marketand
the distribution channels are often more crucial than the product. they are primary: the
product is secondry. in an economylike that of india, where marginal shortages can lead
to disproportation distribution in prices, a dependable and efficientdistribution system is
very much essential.the distribution system creates a value added to all most all products.
All from the above study not withstanding its restructing efforts gm is still far away with
its great competitor like dm.

Suggestions
The above study elicits the fact that sales department Should introduce some changes in
its marketing activities to make it more rational.
1. As the most of the dealers have complaints that the salesman does not tell them about
scheme. For this before launching any scheme company should advertise it by
distributing pamphlets to the dealers mentioning the period of the scheme & time-to-time
proper check is required.
2. Exclusive outlets are loosing because of irresponsible salesmen and their improper
behavior.
3. Grievances of dealers & consumers often do not reach to the concern authority.
4. The number of vans should be increased so that total outlets, might be covered
properly.
5. A healthy relationship should be developed by the companys executives with the
dealers.
6. New policy of the company should be introduced before the competitors launch those
policies.
7.Offers should be given on bulk quantities.
8.Competitive Prices should be there.

QUESTIONAIRE
1. Name of Outlet__________________________________

2. Location________________________________________

3. Type of outlet
a)Bakery shop
b)Dhaba
c)Restaurant
d)Sweet Shop
e)Namkeen items
f)Food shop
g)Retailer
h)wholesaler
4.Which brand of Maida, AttaSooji& Rawa you use..?
a)DM
b)GM
c) Others

5. How many bags of Maida,Atta, Rawa& sooji you consume in a day..?

a)6-10 bags
b)10-20 bags
c) more than 20 bags

6. From where, you buy..?

a)Mill
b) Wholesaler

c) Retailers

7. What is your payment terms..?

a) Cash
b) Credit

8. Can we send sample of GM..?

a) Yes
b) No

Bibliography
1) Kotler philip-marketing management
2) Research methology-kothari

URLs
http://www.google.com

http://www.fci.gov.in/

http://Gangaflour.com/