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Certificate of Supervisor

This is to certify that Mr. / Ms. ______________________ Roll No. _________ has

completed the research project titled“ROLE OF SALES PROMOTIONAL ACTIVITIES

ON THE DEMAND OF SOFT DRINKS” under my supervision in partial fulfillment of theMASTER OF BUSINESS ADMINISTRATION

degree of __________ university’s name ____________________.

Supervisor’s signature:

Supervisor’s name:

Supervisor’s Designation:

Date:

Place:



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Declaration

I, hereby declare that the research project report titled “ROLE OF SALES

PROMOTIONAL ACTIVITIES ON THE DEMAND OF SOFT DRINKS” is my own original

research work and this report has not been submitted to any University/Institute for the

award of any professional degree or diploma.

(Gaurav Sharma)

MBA (IV Sem)

GJIMT

Date:

Place:



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ACKNOWLEDGEMENT

My sincere thanks to MR. GURPRATAP SINGH for having the conviction to

believe that the project I had undertaken might be useful to others. I wish to

thank him for having taken the trouble to read the contents again and again

so the project is perfect in all respects. Without his advice, support, and

guidance, the project would never have been complete. Thanks are also due to

the respects that have spared their valuable time for providing the information

required to complete this project.

All cannot be mentioned but none has been forgotten.

(GAURAV SHARMA)



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Preface

Marketing is a dynamic field. Since 1920 many crucial and dramatic changes taken place in

the field of marketing. In order to make sound and strategic marketing decisions a formalizedmeans of acquiring information is required and it is only possible through marketing research

that the reliable and timely information can be acquired to take the right decision at the right

time.

MARKETING

Social definition of marketing is-“MARKETING is a societal process by which

individuals and groups obtain what they need and want through creating, offering andfreely exchanging products and services of value with others.”

Managerial definition of marketing is-

“The art of selling products.”

In layman language-marketing is typically seen as the task of creating, promoting anddelivering goods and services to customers and businesses.

RESEARCH

Research means systematic investigation and study of materials, sources etc inorder to establish facts and reach conclusions. The main features of research are-

1. Research always starts with a question or a problem.

2. Its purpose is to find answers to questions through the application of the scientific method.

3. It is systematic and intensive study directed towards a more complete knowledge of the

subject

In today s era Promotional offers has grown at a dynamic pace. Not only adults but children

and youngsters are also going too fascinated towards it .The attraction towards offers affects

sales of a product. So in order to know that in what way people are fascinated towards it I

have conducted this Marketing Research project.

Here in this project I tried to find out the opinion of people as well as some educated

class people towards Promotions and its effect on Sales.



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Contents

1. Introduction to Topic 9

2. Research Objective 18

3. About Research

a) Research Methodology 19b) Research Design 23c) Data Collection 23d) Sampling 24e) Scaling /Quantitative 24

. 4. Analysis & Interpretation 27

5. Findings 50

6. Suggestion 51

7. Conclusion 52

8. Limitations 53

9. Word of Thanks 54

10. Annexure 55



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List of Graphs and Tables

Table No’s Page no.’s Graph No’s

1 27 1

2 28 2

3 30 3

4 31 4

5 33 5

6 34 6

7 35 7

8 37 8

9 38 9

10 41 10

11 42 11

12 43 12

13 44 13

14 45 14

15 46 15



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9

INTRODUCTI

ON



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Introduction

Sales promotion is one of the four aspects of promotional mix. The other threeparts of the promotional mix are advertising, personal selling, andpublicity /public relations. Media and non-media marketing communication areemployed for a pre-determined, limited time to increase consumer demand,stimulate market demand or improve product availability. Sales promotions canbe directed at either the customer, sales staff, or distribution channel members(such as retailers) . Sales promotions targeted at the consumer are calledconsumer sales promotions . Sales promotions targeted at retailers andwholesale are called trade sales promotions .

Research on the impact of consumer sales promotion has focused on price-

oriented promotions (e.g., price-off coupons) and behavioral effects (e.g., buypromoted products now rather than later) in promotion time periods

The purpose of the current research is to explore the attitudinal effects of different Direct consumer premiums in different time periods. The basic issuethat it addresses is if Direct consumer premiums influence individuals' attitudestoward promoted products in promotion time periods, do certain ones continueto produce effects in post-promotion time periods. Effects in post-promotiontime periods have received little research attention, but have been the focus of much discussion. As mentioned, researchers have agreed that level of salespromotion desirability provides a strong impact on behavioral effects in

http://en.wikipedia.org/wiki/Promotional_mix

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Publicity

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Retailer

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Wholesalers

http://1.bp.blogspot.com/_8sEkIwzOXfc/SwohGQP7AmI/AAAAAAAAAE4/9ABFhyrTvCs/s1600/coke-zero.jpg

http://1.bp.blogspot.com/_8sEkIwzOXfc/SwohGQP7AmI/AAAAAAAAAE4/9ABFhyrTvCs/s1600/coke-zero.jpg

http://en.wikipedia.org/wiki/Wholesalers

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Retailer

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Publicity

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Promotional_mix



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promotion time periods; however, they have disagreed as to direction of effectsafter the promotion has ended

Meaning of Sales PromotionEvery businessman wants to increase the sale of goods that he deals in. He canadopt several ways for that purpose. You might have heard about “lakhpati

bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch thecard and win a prize” etc. You might also have seen gifts like lunch b ox, pencilbox, pen, shampoo pouch etc. offered free with some products. Business StudiesThere are also exchange offers, like in exchange of existing model of televisionyou can get a new model at a reduced price. You may have also observed inyour neighb ouring markets notices of “winter sale”, “summer sale”, “tradefairs”, “discount upto 50%” and many other schemes to attract customers to buycertain products. All these are incentives offered by manufacturers or dealers toincrease the sale of their goods. These incentives may be in the form of freesamples, gifts, discount coupons, demonstrations, shows, contests etc. All thesemeasures normally motivate the customers to buy more and thus, it increasessales of the product. This approach of selling goods is known as “SalesPromotion”. Personal selling involves face-to-face contact with specific individuals, whileadvertising is directed towards a large number of potential customers. Theyalso help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for

sales promotion. Personal selling can as well include communication of theincentives to individual customers. But, sales promotion differs fromadvertising and personal selling in terms of its approach and technique. Salespromotion adopts short term, non-recurring methods to boost up sales indifferent ways. These offers are not available to the customers throughout theyear. During festivals, end of the seasons, year ending and some other occasionsthese schemes are generally found in the market. Thus, sales promotion consistsof all activities other than advertising and personal selling that help to increasesales of a particular commodity.



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Objectives of Sales Promotion

The main objective of sales promotion is to increase sales. However, there arealso some other objectives of sales promotion.The objectives are:i. To introduce new productsii. To attract new customers and retain the existing onesiii. To maintain sales of seasonal productsiv. To meet the challenge of competition

(i) To introduce new products : Have you ever heard about distribution of free

samples? Perhaps you know that many companies distribute free samples whileintroducing new products. The consumers after using these free samples maydevelop a taste for it and buy the products later for consumption.

(ii) To attract new customers and retain the existing ones : Sales promotionmeasures help to attract or create new customers for the products. Whilemoving in the market, customers are generally attracted towards the product thatoffers discount, gift, prize, etc on buying. These are some of the tools used toencourage the customers to buy the goods. Thus, it helps to retain the existingcustomers, and at the same time it also attracts some new customers to buy theproduct.

(iii) To maintain sales of seasonal products : There are some products like airconditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreenlotion, glycerin soap etc., which are used only in particular seasons. To maintainthe sale of these types of products normally the manufacturers and dealers giveoff-season discount. For example, you can buy air conditioner in winter at areduced price. Similarly you may get discount on winter clothes during summer.

(iv) To meet the challenge of competition : Today s business faces competitionall the time. New products frequently come to the market and at the same timeimprovement also takes place. So sales promotion measures have becomeessential to retain the market share of the seller or producer in the product-market



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Tools of Sales Promotion

To increase the sale of any product manufactures or producers adopt differentmeasures like sample, gift, bonus, and many more. These are known as tools ortechniques or methods of sales promotion. Let us know more about some of thecommonly used tools of sales promotion.

(i) Free samples : You might have received free samples of shampoo, washingpowder, coffee powder, etc. while purchasing various items from the market.Sometimes these free samples are also distributed by the shopkeeper evenwithout purchasing any item from his shop. These are distributed to attractconsumers to try out a new product and thereby create new customers. Somebusinessmen distribute samples among selected persons in order to popularizethe product. For example, in the case of medicine free samples are distributedamong physicians, in the case of textbooks, specimen copies are distributedamong teachers.

(ii) Premium or Bonus offer : A milk shaker along with Nescafe, mug withBournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of onekg. are the examples of premium or bonus given free with the purchase of aproduct. They are effective in inducing consumers to buy a particular product.This is also useful for encouraging and rewarding existing customers.

(iii) Exchange schemes : It refers to offering exchange of old product for a newproduct at a price less than the original price of the product. This is useful fordrawing attention to product improvement. „Bring your old mixer -cum-juicerand exchange it for a new one just by paying Rs.500 or „exchange your black and white television with a color t elevision are various popular examples of exchange scheme.

(iv) Price-off offer : Under this offer, products are sold at a price lower than theoriginal price. „Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler etc. are some of thecommon schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market.

(v) Coupons : Sometimes, coupons are issued by manufacturers either in thepacket of a product or through an advertisement printed in the newspaper ormagazine or through mail. These coupons can be presented to the retailer while

buying the product. The holder of the coupon gets the product at a discount. Forexample, you might have come across coupons like, „show this and get Rs. 15



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off on purchase of 5 kg. of Ann apurna Atta . The reduced price under thisscheme attracts the attention of the prospective customers towards new orimproved products.

(vi) Fairs and Exhibitions : Fairs and exhibitions may be organized at local,regional, national or international level to introduce new products, demonstratethe products and to explain special features and usefulness of the products.Goods are displayed and demonstrated and their sale is also conducted at areasonable discount. „International Trade Fair in New Sales Promotion Delhi atPragati Maidan, which is held from 14th to 27th November every year, is awell-known example of Fairs and Exhibitions as a tool of sales promotion.

(vii) Trading stamps : In case of some specific products trading stamps aredistributed among the customers according to the value of their purchase. Thecustomers are required to collect these stamps of sufficient value within aparticular period in order to avail of some benefits. This tool induces customersto buy that product more frequently to collect the stamps of required value.

(viii) Scratch and win offer : To induce the customer to buy a particular product „scratch and win scheme is also offered. Under this scheme a customerscratch a specific marked area on the package of the product and gets the benefitaccording to the message written there. In this way customers may get someitem free as mentioned on the marked area or may avail of price-off, orsometimes visit different places on special tour arranged by the manufacturers.

(ix) Money Back offer : Under this scheme customers are given assurance thatfull value of the product will be returned to them if they are not satisfied afterusing the product. This creates confidence among the customers with regard tothe quality of the product. This technique is particularly useful whileintroducing new products in the market.



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PROMOTION STRATEGIES OF COKE Getting shelvesThey gets or purchase shelves in big departmental stores and display theirproducts in that shelves in that style which show their product more clear andmore attractive for the consumers.

Eye Catching PositionSalesman of the coca cola company positions their freezers and their products ineye-catching positions. Normally they keep their freezers near the entrance of the stores.

Sale PromotionCompany also do sponsorships with different college and school s cafes andsponsors their sports events and other extra curriculum activities for gettingmarket share.

UTC SchemeUTC mean under the crown scheme, coca cola often do this type of scheme andthey offer very handy prizes in it. Like once they offer bicycles, caps, tv sets,cash prizes etc. This scheme is very much popular among children.

DISTRIBUTION CHANNELSCoca Cola Company makes two types of sellingDirect sellingIndirect selling

Direct SellingIn direct selling they supply their products in shops by using their owntransports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

Indirect SellingThey have their whole sellers and agencies to cover all area. Because it is verydifficult for them to cover all area of Pakistan by their own so they have somany whole sellers and agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTUREFor providing their product in good manner company has provided

infrastructure these includes:



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Vizi cooler

Freezers

Display racks

Free empty bottles and shells for bottles

ADVERTISEMENTCoca Cola Company use different mediums

Print media

Pos material

TV commercial

Billboards and holdings

Print MediaThey often use print media for advertisement. They have a separate departmentfor print media.

POS MaterialPos material mean point of sale material this includes: posters and stickersdisplay in the stores and in different areas .

TV CommercialsAs everybody know that TV is a most common entertaining medium so TVcommercials is one of the most attractive way of doing advertisement. So CocaCola Company does regular TV commercials on different channels.

Billboards and HoldingsCoca cola is very much conscious about their billboards and holdings. Theyhave so many sites in different locations for their billboards.



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OBJECTIVES



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OBJECTIVES OF THE STUDY

The main objectives of the study are:

To check the level of awareness among consumers regarding advertising.

To view different types advertisements.

To study whether ads are effective or not.

To study the reasons for failure of advertisements.

To study whether people really enjoy seeing ads.

To know about whether the viewers can recall messages and sponsored

brand names.

To know about the products for which advertising is generally done.

To find whether the consumers/dealers found the information provided in

ads to be reliable or not.

To find whether consumers read or consult ads making a purchase. To know the general perception of consumer/dealers regarding ads.

To know that the objective of promotional activities are met or not.

To study the working of promotional activities in respect of demand of the

products.



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Research methodologySCIENTIFIC METHOD OF RESEARCH DESIGN

EXPLORATORY DESIGN

In case of exploratory research, the focus is on the discovery of ideas. In our acase an exploratory study has been conducted.An exploratory study is in the nature of a preliminary investigation and

basically it is based on secondary data , that are readily available.

METHOD OFRESEARCH

DESIGN

EXPLORATORY

DESIGN

DESCRIPTIVE

STUDIES

CROSSSECTIONALRESEARCH

FIELD STUDIES

SURVEY

LONGITUDNALRESEARCH

CAUSAL DESIGN

METHOD OFAGREEMENT

METHOD OFDIFFERENCE



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An Exploratory Design Is Used for any or all of the following purpose:

1. Formulating a problem for more précised investigation or for developinghypothesis.

2. Establishing priorities for further research.

3. Gathering information about the practical problems for carrying outresearch one particular conjectural statement.

4. Increasing the analyst s familiarity wi th the problem.In general, exploratory research design is appropriate for any problem in whicha very little knowledge is available.

Exploratory study is characterized by flexibility and informality. ExploratoryStudies rarely used details (structured) questionnaire. These do not involveprobability sampling plans. Ingenuity, judgment are the part of such studies.

DESCRIPTIVE STUDIES

Descriptive Research Design also called exploratory design. The descriptivestudy is typically concerned with determining frequency with which somethingoccurs or how two variables vary together. A descriptive study requires a clearspecifications of who, what, when, where, why and how aspects of the research.The characteristics of descriptive study are it is rigid and formal. The importantfundamental weakness is- Descriptive Research does not find the cause andeffect relationship among variables.

Importance of Descriptive Research

Points Descriptive Design is used when the purpose of research is coveredunder one or more of the following:

1. To describe the characteristics of certain groups, e.g. – Users of theproduct with different age, sex, education etc.

2. To estimate the proportion of people in a specified population whobehave in a certain way, e.g., a person who buys from a particularshop.

3. To make specific prediction, e.g., sales of a company s product in eachof the next 5 years.



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4. To determine whether certain variables are associated, e.g., income anduse of a product.

CAUSAL DESIGN

Causal design helps us to find out the cause and effect relationship behind asituation. Causal research also experimental research .Experimentation isdefined as a process where events occur in a setting at the discretion of theexperimental, and control are used to identify the sources of variation insubject s response. This research design says that sources of variation insubject s response. This research design say that experimentation is a process of manipulating one variable in a controlled environment while holding all othervariables constant in order to establish in order to establish a causal relationship.

MARKETING RESEARCH PROCESS

1. Formulating the research process

2. Choice of research design

3. Determine the source of data

4. Design data collection form

5. Sample size

6. Organizing and conducting field survey

7. Process and analyze the collected data

8. Preparing the Research Process

How Marketing Research Process is followed in our Research ?

Step 1: FORMULATING THE RESEARCH PROBLEM : To find out therole of

Sales Promotional activities on the demand of Soft Drinks.

Step 2: CHOICE OF RESEARCH DESIGN : Descriptive Design and CasualDesign.





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Comparative Analysis

DATA COLLECTION METHOD

Surveys have become so common in today s world that the average personseldom questions the idea about the useful information that can be obtained in aparticular manner. Various findings of one type or another are developed andare usually seen possible after the acceptance.

QUESTIONNAIRE

Questionnaire and observation are two basic methods of collectingdata in Marketing Research. In questioning , data is collected by askingquestions a formal list of such questions is called a questionnaire.

ADVANTAGES OF QUESTIONNAIRE METHOD:

Versatility :- Probably the greatest advantage of the questionnairemethod is its versatility. Almost every problem of marketing researchcan be approached from the questionnaire point. Every marketingproblem involves people. Therefore ideas related to the problem andthe solution can be obtained by asking these people about theproblems that they are facing.

Speed and Cost:- Questionnaire is usually faster and cheaper thanobserving interviewee. It has moreover better gathering activities. Asa result, less time is wasted in a questionnaire study.

DISADVANTAGES OF QUESTIONNAIRE METHOD:

Unwillingness of respondent to provide information: Mostinterviews are obtained at the sufferance of the respondent. In



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some cases potential respondent will refuse to take the time to beinterviewed or will refuse to answer some specific questions aboutincome or very personal subjects.

Inability of respondent to provide information: Despitewillingness to co-operate, many persons are unable to giveaccurate information on questions which the interviewer wouldlike to ask.

Respondent cannot furnish information because they are unable to rememberthe derived facts, or they have never known the facts.

Structured Non-Disguised

Structured Disguised

Non-Structured Disguised

Non-Structured Non-Disguised

Observation Method

Observation study can broadly be classified in five bases;

1) Whether the observation is obstructive or unobtrusive.2) Whether the observation is structured or unstructured.3) Whether the factor of interest is direct or indirect.4) Whether observation made by observers or by mechanical means.5) Each of the classification has some impact on the quality of the data

collected.

Sampling

IT IS A SMALL REPRESENTATIVE OF UNIVERSE. According to afamous statistician “YULE” the objective of sampling is to get maximum information about the parent population with minimum efforts.

SAMPLING PROCESS:-

PROBABILITY SAMPLING METHOD



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Probability sampling methods are those in which every item in theuniverse has a known chance or probability of being chosen for the sample.

NON-PROBABILITY SAMPLING METHOD

This method does not provide all the items in the universe with a knownchange of being included in the sample. The selection process is at leastpartially subjective.

Scaling

The most important effect of the analysis required is in the scale of measurement that must be used. Broadly marketing research uses the four majortypes of scales:

1. NOMINAL SCALE

It is one in which numbers are only used as labels, and haveno numerical sanctity. For example,if we want to categorise male andfemale respondents, we could use a nominal scale.

2. ORDINAL SCALE

These are ones which have a meaningful order to them. Amarketing variable is ranks given to brands by respondents. These ranksare not interchangeable, as nominal scale labels are.

3. INTERVAL SCALE

An interval scale variable can be used to compute the commonlyused statistical measures such as the average ,standard deviation and thecorrelation coefficient.

4. RATIO SCALE

All arithmetic operations are possible on a ratio-scaled variable.These include computation of geometric mean, harmonic mean and alother statistics like the average, standard deviation and Pearsoncorrelation and also the tests as the t-test and the f-test.



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RESEARCH &

ANALAYSIS

Q.1 Which is the best media for sales promotion of soft drinks?

a. Print Media b. Electronic media

Answer: a. Print Media (20%)b. Electronic Media (80%)

Table No. 1

Option(s) Number of respondents Percentage (%)a 10 20b 40 80

Total 50 100



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Graph No. 1

INTERPRETATION

Today the market is at hyper-competition stage where people do not have enoughtime to know particularly each and every aspect of any product, where Media plays avery crucial role which helps in placing a product in the hands of the customers and isthe best means through which a company can promote its product to the masses

effectively, it helps the people to understand that what the product is and whatdifferent features the product is having from other s product i.e. productdifferentiation which directly or indirectly helps in increasing or decreasing its sales.Companies give offers or promotions to increasing their sales and to have an edgeover the competitors. Now, which kind of Media is preferable? Basically, there aretwo major types of Media that are Print Media and Electronic Media ,as we can seefrom the above dat a that 80% people s opinion is that electronic media is the best andmost effective way to advertise for sales promotion . People s opinion shows thatthere choice is more affected by advertisement on Electronic Media as compared to

Print Media.

Q.2 How often do you avail promotional offers of soft drinks?

a. Frequently b. Rarely c. Never

Answer: a. Frequently (44%)b. Rarely (40%)c. Never (16%)

Table No. 2

20%

80% a b



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Option(s) Number of respondents Percentage (%)a. 22 44b. 20 40c. 8 16

Total 50 100

Graph No. 2

INTERPRETATION

Promotional offers! It means how to promote the product or in other words hoe tomake an entry into the market, to acquire more and more customers. These are thestrategy by which a company can establish their product(s) in the market to gainattention from the masses, promotional offers are of various means like discount onthat particular product, free item or increase the quantity of the product or attach a

new product with the established one to make an entry into the market and aftergetting success from the market the company de-attaches their product and then sellthe product separately with their desired expectations. Every person is having adifferent opinion on the fact that promotions are a need for a product or not ,so mostof the companies are availing to do this. As the scenario of today is concernedapproximately half of the people thinks that they wait or expect for promotionaloffers offered by the cola companies. On the other hand ,40% of the people thinks touse these offers rarely that it depend on to the offer that whether to pursue it or notand 16% are not at all affected by these offers that companies must give promotionaloffers

44%

40%

16%

a b c



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Q.3 The purpose of promotional activities is…………..

a. awareness of the product b. increase salesc. increase trial ability

Answer; a. awareness of the product (26%)b. increase sales (60%)c. increase trial ability (14%)

Table No. 3

Option(s) Number of respondents Percentage (%)a 13 26b 30 60

c 7 14Total 50 100

Graph No. 3

INTERPRETATION

For a company it is very well said that if they want to have a large customer base thenthey first have to make the mass aware about their product, on the other side of thecoin says that no matter how large the customer base, the main or the basic motive of the companies is to make profits as none of the company are doing the business forcharity that is the fact that most of the companies not all works on the principle of 80:20 rule i.e. 20% of the market yields 80% of the profits and 20% of the market isaddressed efficiently.3/5 th of the people believes that the promotional activities doneby the soft drink companies are just a method to increase the sales, but on thecontrary part it is thought by 1/4 th of the people that the purpose of these activities isto promote the brand or the awareness of the product so that the product remains

26%60%

14%

a b c



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fresh in the mind of the customers and some thinks that these activities are just trialbased that means first make the customers know what the product is which is 14% thecompanies offer.

Q.4 Which is your favourite advertisement of soft drink?

a. Pepsi b. Fanta c. Coca Colad. Others (specify) ………………….

Answer; a. Pepsi (22%)b. Fanta (14%)c. Coca Cola (34%)d. Others (30%)

Table No. 4

Option(s) Number of respondents Percentage (%)a. 11 22b. 7 14c. 17 34d. 15 30

Total 50 100

Graph No. 4

INTERPRETATION

22%

14%

34%

30%

a b c d



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Advertisement plays a very vital role in placing a product, every company tries tomake advertisement attractive, interesting and informative so that people tries toattach themselves with the advertisements as the sentiments of one individual is

different from other .So company make ads accordingly to capture the sentiments of the all customers in one go and tries to convey a moral message to the society it isalso said that “the way to the man s pocket goes from his heart”. If anyone says colddrink immediately the company that strikes our mind is PEPSI or COCA COLA orthe products of these. These companies have various products i.e. the product line,these companies are among the largest advertisers in the world and COCA COLACompany spends a major part of its revenue into advertisement and leading the chartsof all. Advertisement also destroys the market share of other company which we callit as Cola War. These companies portrays the celebrities in their ads like PEPSI-SRK, John Abraham, Ranbir Kapoor and many more, COCA COLA-Aamir Khan,Hrithik Roshan, Aishwarya Rai and many more and FANTA- Genilia D Souza, RaniMukherji and others because celebrities are the easiest means to make a bondbetween the customer and company.In this war Coca Cola is leading with 34%followed by Pepsi which is preferred 22% of the people and 30% of the peopleprefers watching advertisement of other companies.

Q.5 Which is the most successful sales promotion policy?

a. Discount b. Price reduction c. Free item

Answer; a. Discount (36%)b. Price reduction (42%)c. Free item (22%)d. Others (2%)

Table No. 5


Total 50 100





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them but most people think that in this policy producer use their mind and they

already add the price of free item along with the price of main product. So majority of

people don t believe in free items or bounded products.

Q.6 Availability of product is required more than its promotion?

a.Yes b. No

Answer; a. Yes (86%)b. No (14%)

Table No. 6

Option(s) Number of respondents Percentage (%)a. 43 86b. 7 14

Total 50 100

Graph No. 6

INTERPRETATION

“Existence of product creates its own demand ”. This statement does not mean that

whatever good or bad is in the market is totally sold or being purchased by thecustomers. Existence of a product refers the availability of the product but some

86%

14%

a b



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people have different opinion that if the product is in the market that also requirespromotion, for making the masses aware one has to make promotion that What theproduct is? i.e. the product that we are taking in regard is present in the market or not.In other words we can say that how good the distribution channels or the network of

the company and how quick they are to respond on to the needs and wants of thecustomers whose product we are consuming. So the research says 86% people thinksthat it s true that the availability of the product is more important and this can beachieved by efficient distribution networks. People believe that the company whichhas a good distribution network will be able to acquire the biggest share of the market.While 14% people thinks that brand image is more important that the availability of product.

Q.7 If the product is good then it does not require any promotion?

a.Yes b. No


Table No. 7

Option(s) Number of respondents Percentage (%)a. 19 38

b. 31 62Total 50 100

Graph No. 7

38%

62%a b



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INTERPRETATION

In case of soft drink companies there is more importance of promotion than the qualityof product, this is what 3 out of 5 people think, they believe that if a company ispromoting its products well, the will be successful . while 38% people think thatquality of product matters more than promotion. To know about the quality of productits very necessary that people use that product and for that they have to knowsomething about the product. It is possible only by promotional activities which hasbeen adopted by the company. Due to promotional activities people come to know thatwhich product has came into the market and which brand are going to held goodposition in the market in present scenario. It affects our buying decisions also. Evenwith the help of promotional activities producer can make their product to reach thecustomer s mind who are living in rural and underdeveloped area. Therefore , company spends a major part of its revenue into advertisement accordingto the previous charts. Advertisement also destroys the market share of othercompany. Promotional activities is really matters than quality of product.

Q.8 Celebrity presence in promotional event increases its brand value?

a.Yes b. No


Table No. 8


Total 50 100

Graph No. 8



37

INTERPRETATION

Trend tells that people are very much influenced by the presence of celebrity orcelebrities in an event for promoting a brand , that s why companies are very m uchinclined towards hiring popular celebrity for their advertisements. Research shows88% people think that the presence of a celebrity affects their choice of selecting aproduct but 12% people deny this fact. In the movie Minority Report, where TomCruise's character John Anderton owns a phone with the Nokia logo clearly written at

the top corner. And then after there have been a craze for Nokia mobile phone amonghis fan following.This was really a boon for the Nokia set. This type of advertisingfocuses upon using celebrity power, fame, money, popularity to gain recognition fortheir products and promote specific stores or products. When celebrities share theirfavorite products or wear clothes by specific brands or designers. The use of celebrities to endorse a brand can have its downsides, however.Q. 9 Is promotion effective way to increase sales during off-season

a.Yes b. No


Table No. 9


Total 50 100

Graph No. 9

88%

12%

a

b





39


d. 2 4Total 50 100

Graph No. 10

INTERPRETATION

Marketing of any product requires some kind of tool or technique to be followed by a marketer. Thetools may be the marketing mix or any other for making your product differentiated from others. So,our major concern in this particular is that whether “sales promotion is an important tool for productdifferentiation”. Basically, sales promotion can be done by various methods that may beadvertisement, bill boards, hoardings, distributing pamphlets etc. and product differentiation meansthat how your product looks unique in a chunk of all products. While doing the productdifferentiation of any product every company tries to create its own theme that enables the customerto identify that how the product is different from others. So, research shows that 68% people stronglygoes with this opinion that yes, sales promotion is an important tool for product differentiation and22% people says that it is an important part but to an extent. On the other part, 10% people think thatis sales promotion do not play a significant role in product differentiation.

Q.11 Which section of the society is generally targeted while doingsales promotion

a. Children b.Youngsters c. Family

Answer; a. Children (8%)b. Youngsters (84%)c. Family (8%)

Table No. 11

22%

68%

6% 4%

a b c d



40


Total 50 100

Graph No. 11

INTERPRETATION

One company cannot create its monopoly over to the market so, it depends on to the productto product that what product one person is consuming and moreover promotions or better tosay that advertisements are mostly shown at the prime time i.e. from 5p.m. – 10p.m..Researchhas shown that Youngsters are more fantasized regarding the soft drinks compared tochildren or family. So, as per the statistics 84% people think that the cola companies aretargeting the youngsters. On the contrary part families and children prefer mostly the homemade beverages i.e.16%. Sales promotion especially aimed youngsters and it increasinglyreduces young people to consumers. Indeed, commercial interests intent on maximizing theconsumption of the immense collection of products have colonized more and more of thespaces of the life of youngsters because producer know that youngsters can be their majorcustomer. Youngsters are among the most sophisticated observers of ads.

Q.12 The prominent reason for switching to another brand of soft drink bycustomer is?

a. Price rise b. Less promotional offersc. Trying a new option d. Others ( specify)………………………..

Answer; a. Price rise (28%)b. Less Promotional Offers (12%)c. Trying a new option (58%)d. Others (2%)

Table No. 12

8%

84%

8%

a b c



41


d. 1 2Total 50 100

Graph No. 12

INTERPRETATION

The statistics shows that 84% people think that the cola companies are targeting the youngsters. Buttoday also 16% people that are families and children prefer the home made beverages and juices.Now as per today s scenario is concerned nothing is p ermanent so mostly people think to switchover to another brand should to have an experiment with the existing brand, moreover youngstersare very much enthusiastic or delighted of trying a new thing or which is new in the market and thisthing is also valid that people are becoming more quality conscious, some people thinks that pricefactor is also a major matter on switching to another substitute as well as the less promotional offersoffered by the companies and some think that there are other factors that why people switches overto other brands.

Q.13 Which player in soft drink segment offers most effective promotionalSchemes?

a. Pepsi b. Coca Cola c. RC

Answer; a. Pepsi (56%)b.Coca Cola (44%)c. RC (0%)

Table No. 13

28%

12%58%

2%

a b c d



42


Total 50 100

Graph No. 13

INTERPRETATION

This is very much clear that the company which is earning a huge amount of revenue must be givinggood promotional offers, to my research it was found that there were no person who knows regardingthe small players like RC and 77. The thing which remain in front of the people remains fresh in themind of the customers this fact is very true i.e. however good you are if you cannot convince yourcustomer by any means then there is no use of how much advance your products are you areproviding to the public and there comes the concept of advertisements, this is the reason why peopleknows about the major players not the minor players. For making a foothold in the marketcompanies provides promotional offers again and again so that their market share should not be eatenup by other company. As the major players are concerned i.e. Coca Cola and Pepsi, people think thatPepsi provides more promotional offers i.e. 56% like World Cup Tickets, holiday in Miami, Chanceto meet the cricketers etc. But 44% people think that Coca Cola provides less promotional offers as

compared to Pepsi.

Q.14 Promotional offers in soft drink given by different companiesmainly…………..

a. adds cost to the company b. a way to make profitc. Increases brand value d. Others (specify)………………….

Answer; a. adds cost to the company (24%)b. a way to make profit (30%)

c. increases brand value (46%)

56%

44%

a b c





44

Table No. 15


Total 50 100

Graph No. 15

INTERPRETATION

As earlier research shows that promotions are a need for any product so people need moreand more promotional offers like holiday packages, quantity of product should be same but ata cheaper price or having same price but more quantity consumers need while some peoplemay also have the contradictions that they expect different kind of promotions in soft drinks.The promotions nower days given by cola companies are not that much fulfilling to theexpectations of the customers. The customers or the consumers need something extra. So, itis burdened to the companies that they have to launch the product as per the needs of thecustomers because they are the ultimate king for the company. Otherwise if they do not do sothey will immediately flushed away from the market and none of the companies would be inthe favor of it. The current research shows that people have interest more or less same withtaking the quantity in regard i.e. 44% people thinks that they require more quantity but thattoo in existing price which was prevailing in the market previously, while 32% people thinksthey require same quantity of the product but at a cheaper rate. On the other hand 24% peopleneeds to have some kind of holiday packages and other schemes in regard of cold drinks.

22%

32%

44%

2%

a b c d



45

CHI-SQUARE TEST

Since the Chi- Square test is a one of the simplest and most widely used non parametrical

tests in statistical work. It describes the magnitude of discrepancy between theory andobservation that is with the help of chi- square test we can know whether a given discrepancybetween theory and observation can be attributed to changes or whether it results from theinadequacy of the theory to fit the observed facts.

One of the most frequent uses of chi-square is for testing the null hypothesis that twocriteria of classification are independent. They are independent if the distribution of onecriteria is in no way depends on the distribution of other criteria. If they are not independent,there is an association between two criteria. In the test of independence the population andsample are classified according to some attributes. The test will indicate only whether or notany dependency relationship exists between the attributes. It will not indicate the degree of

association or the direction of independency.



46

Null hypothesis (Ho) :- Assume that sales promotion is not necessary forsoft drinks

Alternative hypothesis (Ha) :- Assume that sales promotion is necessary

for soft drinks

OBSERVED VALUE

QUESTIONNO.

A B C D TOTAL

Sl. No. A B C D TOTAL1 10 40 0 0 502 22 20 8 0 50

3 13 30 7 0 504 11 7 17 15 505 18 21 10 1 506 43 7 0 0 507 19 31 0 0 508 44 6 0 0 509 40 10 0 0 50

10 11 34 3 2 5011 4 42 4 0 50

12 14 6 29 1 5013 28 22 0 0 5014 12 15 23 0 5015 11 16 22 1 50

TOTAL 300 307 123 20 750

Expected value for A 300*50/750 = 20Expected value for B 307*50/750 = 20.47Expected value for C 123*50/750 = 8.2Expected value for D 20*50/750 = 1.33

FOR OPTION “A”

Sl. No. O E O-E (O-E) 2 (O-E) 2 /E1 10 20 -10 100 52 22 20 2 4 0.23 13 20 -7 49 2.454 11 20 -9 81 4.05



47

5 18 20 -2 4 0.26 43 20 23 529 26.457 19 20 -1 1 208 44 20 24 576 28.8

9 40 20 20 400 2010 11 20 -9 81 4.0511 4 20 -16 256 12.812 14 20 -6 36 1.813 28 20 8 64 3.214 12 20 -8 64 3.215 11 20 -9 81 4.05

TOTAL 300 300 136.25

FOR OPTION “B”

Sl .No. O E O-E (O-E) 2 (O-E) 2 /E1 40 20.47 19.53 381.42 18.63312

2 20 20.47 -0.53 0.28 0.013679

3 30 20.47 9.53 90.80 4.43576

4 7 20.47 -13.47 181.44 8.863703

5 21 20.47 0.53 0.28 0.013679

6 7 20.47 -13.47 181.44 8.863703

7 31 20.47 10.53 110.88 5.416707

8 6 20.47 -14.47 209.38 10.22863

9 10 20.47 -10.47 109.6209 5.355198

10 34 20.47 13.53 183.0609 8.942887

11 42 20.47 21.53 463.5409 22.64489

12 6 20.47 -14.47 209.3809 10.22867

13 22 20.47 1.53 2.3409 0.114358

14 15 20.47 -5.47 29.9209 1.461695

15 16 20.47 -4.47 19.9809 0.976106

TOTAL 307 106.1928

FOR OPTION “C”

Sl. No. O E O-E (O-E) 2 (O-E) 2 /E1 0 8.2 -8.2 67.24 8.2

2 8 8.2 -0.2 0.04 0.004878

3 7 8.2 -1.2 1.44 0.175614 17 8.2 8.8 77.44 9.443902





49

At 5% level of significance the tabulated value is = 63.3

Result:- Since calculated value is more than tabulated value, therefore null

hypothesis is rejected and alternate hypothesis is accepted .

Findings & Suggestions

After seeing the research report we can easily understand the effect of salespromotion on people. I agree that it is somewhat positive but its negative impactis very strong. Today advertisement spread and show up everywhere, andpeople aren't exempt. Far from it. The animated film. Books also featurebranded items and characters, and millions of them have snack foods as leadcharacters. Business is interested in people because of their buying power andbecause of their influence on the shopping habits of theirs. As they are easier toinfluence they are especially targeted by the advertising business.

Sales promotions have traditionally been heavily regulated in many advancedindustrial nations, with the notable Research on the impact of consumer sales



50

promotion has focused on price-oriented promotions (e.g., price-off coupons)and behavioral effects (e.g., buy promoted products now rather than later) inpromotion time periods.

Conclusion

Marketing Research is the most crucial activity in the field of marketing to getthe people opinion regarding sales promotion. It is very difficult to read thepsychology of the people.I tried my level best to present all the facts correct butas marketing research is not a true science hence certain degree of alteration ispossible in the research report.

The project gave us an immense opportunity to expose and put up the ideas inthe field of marketing. I came to know about the behavior of human beingwhich fluctuates in different situations and times. Over all I conclude that yes

“Sales Promotion is necessary in marketing of any product” so that people can



51

get more in a price of one only and most of the people get themselves insuredaccording to their need

People pursue that particular product that satisfies their zeal.

Limitations

In every research there is some limitation and this research project is noexception.

LIMITATION ON THE PART OF THE RESPONDENTS:

1. Some respondents were not interested in filling the forms.

2. Some of them were not co-Operative.



52

3. Many of the respondent we approached did not fulfill the age criteria so, wehad to reject this forms.

LIMITATION OF COST

4. Money was also one of the constraints while conducting the Research.

OTHER LIMITATIONS:

5. Since we didn t have any previous research work experience,so it may haveled to discrepancies in the report..

6. As the area was wide so we had to travel a lot.

7. The distance and transportation was also another limitation our researchwork.

Bibliography

List of references for the purpose of completing this Marketing ResearchProject are as given below;

Text-Books

Harper W. Boyd,Jr., Marketing Research Text and Cases 7 th EditionAll India Traveller Bookseller, Delhi-110051

Page No ’s - 92-98,127,130,136,321,407

S.P. Gupta and M.P. Gupta, Business Statistics 15th

Enlarged EditionSultan Chand and Sons, Educational Publishers , New Delhi







55

a. awareness of the product b. increase salesc. increase trialability

Q.4 Which soft drink advertisement you like the most ?

a. Pepsi b. Fanta c. Coca Colad. Others (specify) ………………….

Q.5 Which is the most successful sales promotion policy?

a. Discount b. Price reduction c. Free item

Q.6 Availability of product is required more than its promotion?

a.Yes b. No

Q.7 If the product is good then it does not require any promotion?

a.Yes b. No

Q.8 Celebrity Presence in promotional event increases its brand value?

a.Yes b. No

Q. 9 Is promotion effective way to increase sales during off-season

a.Yes b. No

Q.10 Sales promotion is an important tool for product differentiation

a. Strongly agree b. Agreec. Disagree d.Strongly disagree

Q.11 Which section of the society is generally targeted while doing sales promotion

a. Children b.Youngsters c. Family

Q.12 The prominent reason for switching to another brand of soft drink by customeris?

a. Price rise b. Less promotional offersc. Trying a new option d. Others(specify)………………………..

Q.13 Which player in soft drink segment offers most effective promotionalschemes?

a.Pepsi b. Coca Cola c. RC

Q.14 Promotional offers in soft drink given by different companies mainly…………..



a. adds cost to the company b. a way to make profitc. Increases brand value d. Others (specify)………………….

Q.15 Which type of promotional offer you desire in soft drinks

a. Holiday Packages b. Less price same quantityc. Same price more quantity d. Ot hers (specify)………………….

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