An Effective Study on Promotional Activities of Nandini Milk

ProjectsKart

7 years ago

Sales promotion is an important component of a small business’s overall marketing strategy, along with advertising, public relations, and personal selling. The American Marketing Association (AMA) defines sales promotion as “media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality.” But this definition does not capture all the elements of modern sales promotion. One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force. It can be used to inform, persuade, and remind target customers about the business and its marketing mix. Some common types of sales promotion include samples, coupons, sweepstakes, contests, in-store displays, trade shows, price-off deals, premiums, and rebates.

Businesses can target sales promotions at three different audiences: consumers, resellers, and the company’s own sales force. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. Compared to the other components of the marketing mix (advertising, publicity, and personal selling), sales promotion usually operates on a shorter time line, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability.

In determining the relative importance to place on sales promotion in the overall marketing mix, a small business should consider its marketing budget, the stage of the product in its life cycle, the nature of competition in the market, the target of the promotion, and the nature of the product. For example, sales promotion and direct mail are particularly attractive alternatives when the marketing budget is limited, as it is for many small businesses. In addition, sales promotion can be an effective tool in a highly competitive market, when the objective is to convince retailers to carry

Product or influence consumers to select it over those of competitors.

Similarly, sales promotion is often used in the growth and maturity stages of the product life cycle to stimulate consumers and resellers to choose that product over the competition—rather than in the introduction stage, when mass advertising to build awareness might be more important. Finally, sales promotion tends to work best when it is applied to impulse items whose features can be judged at the point of purchase, rather than more complex, expensive items that might require hands-on demonstration.

At present in this competitive business world the milk industry has more brands in the battle field facing stiff competition in every segment’s targeted. Even brand Nandini is also facing stiff competition to retain brand in the market.

There are many players in the market in this industry and their own promotional strategies where is to inducing the different consumer segment. Hence due to this it is crucial to analyze the promotional strategies of Nandini and its competitors to penetrate the targeted market.

In this juncture it has to identify its competitors in this market by bringing brand awareness in the minds of consumers and also it has to cope up with the updated advertising and sales promotional strategies.

Through this study, the main problem that it studies during this project work is to find out the effectiveness of the reach of different sales promotion techniques to the consumers and the awareness of brand among the consumers of Hassan district.