Академический Документы
Профессиональный Документы
Культура Документы
Submitted by
I hereby declare that this Project Report entitled “Study & Implementation of sales
Institution for the award of any degree diploma / certificate or published any time
before.
Enrolment No:
Semester :
Date :
II | P a g e
ABSTRACT
Sales Promotion in companies has become an essential activity for the smooth and
efficient functioning of the organization. Sales are the lifeblood of a business, without
sales there would be no business in the first place; therefore it is very important that if a
business wants to succeed, it should have a sales promotion strategy in mind. The
and modifying your target customers purchasing behavior and patterns. Sales
promotion is very important as it not only helps to boost sales but it also helps a
business to draw new customers while at the same time retaining older ones.
A sales promotion is a tool used to get customers to buy a product or try a service.
Sales promotions can come in the form of coupons, rebates, sweepstakes, contests,
and sampling. Typically, before a sales promotion is put into action, a company
evaluates its market. If a sales promotion is warranted, the company comes up with a
III | P a g e
ACKNOWLEDGEMENT
I would like to express my sincere gratitude towards CDAC for providing me this
great opportunity to work and learn through the Dissertation Project.
I would like to acknowledge the guidance I received from my Guide Mr. R.K. Singh,
HOD – MBA (SEM), Mr. Amit Gupta, ERP Consultant – Sales and Distribution in
CDAC, Noida. This project would not have materialized without their support
I am grateful to my guide Mr. Amit Gupta for imparting constant attention, useful
suggestions, expert guidance and valuable suggestions during the course of this
project. I would also like to thank all the faculty members of MBA department of
CDAC for their support and encouragement.
I also express my sincere gratitude to my friends who have encouraged and inspired
me constantly to complete this project work.
Satya Prakash
IV | P a g e
Table of Contents
CHAPTER PAGE NO
CHAPTER-1
INTRODUCTION
3
1.1 Company profile
4-5
1.2 Organization Structure
5-6
1.3 Purpose of the Project
6
1.4 Objective of the Project
6
1.5 Scope of the Project
CHAPTER-2
BUSINESS PROCESS
8
2.1 Pharmaceutical Industry
2.2 NPIL Business Strategy 9-10
CHAPTER-3
ANALYSIS
CHAPTER-4
IMPLEMENTATION 25-44
CHAPTER-5
NPIL is a leading pharmaceutical company in India. NPIL has the eighth position in India
market. It has the strong export presence along with domestic market. NPIL has wide product
range in general medicine and spread in four zones – East, West, North & South.
Product Range-
1. Antibiotic
2. Respiratory
3. Nutritional
4. Gastro
5. Hormonal
Power brand:
1. Bandinal
2. Menticyn
3. Hensadyl
4. Opradyn
5. Ctemetil
6. Bhenergan
3|Page
1.2 ORGANIZATION STRUCTURE
NPIL
East
(ZBM)
Delhi/Rajasthan Punjab U.P Haryana
(RM) (RM) (RM) (RM)
4|Page
The organizational structure of the company NPIL (Noida Pharmaceutical India Limited) is
shown above. It consists of five major functional areas i.e. Finance, Operations, Sales and
Marketing, Human resource and Information Technology, each having a General Manager
Sales and Marketing department is further classified into two subparts Sales department and
Marketing department, each having its own set of goals and responsibilities.
Promotion and Pricing. Sales are conducted all over the country from four zones North, South,
East and West. North zone is spread over Delhi, Rajasthan, Punjab, Uttar Pradesh and
Haryana. Uttar Pradesh is further categorized into three territories UP East, UP west and UP
Central.
Typically, before a sales promotion is put into action, a company evaluates its market.
Using Sales Promotion, you can define the various sales promotional activities which will be
useful for the organization. Here I am taking three types of promotional techniques
Free goods.
Inclusive
Exclusive
Discounts
Customer specific discount
Cross selling
5|Page
1.4 OBJECTIVE OF THE PROJECT
Identification of different types of customers for NPIL sold to party, ship to party, bill
to party and payer.
Free Goods
Cross Selling
Discounts
6|Page
CHAPTER 2
BUSINESS PROCESS
7|Page
2.1 PHARMACEUTICAL INDUSTRY
Pharmaceutical industry’s challenges are patent expiry and thin pipeline, reducing drug
approvals, declining R&D productivity, stringent regulations, increasing development costs,
reducing periods of exclusivity, increasing generic penetration and others. Additional and
increasing pressure on pharmaceutical company over drug safety (because of updated
regulations) has increased the clinical trial period. This led to higher development costs and
increased time-to-market.
Hence, the pharmaceutical companies are looking for various opportunities to reduce cost,
improve efficiencies, improve pipeline and reduce the time-to-market. To reduce cost, the
pharmaceutical companies are adopting different strategies like outsourcing (in areas like
research, manufacturing, clinical trial management and other functions), restructuring R&D
models, moving part of business functions to low cost countries (like China, India, Puerto
Rico), adopting efficient sales and marketing functions (to have more impact with less sales
force) and other related initiatives.
A competent strategy that the pharmaceutical companies are adopting is “virtual” execution
delivery model as this model allows companies to focus on their core-competencies and
leverage others partner’s capabilities. In this model, companies use in-house resources for
some functions of their value chain and collaborate with external partners for other functions.
Apart from outsourcing non-core support services (for example, IT, F&A and others),
research manufacturing, sales and marketing, clinical trial/development activities are also
considered for outsourcing through this model.
8|Page
2.2 NPIL BUSINESS STRATEGY
One of the constants of pharmaceutical company strategy over the past decade has been
increasing scale. Only by growing larger are companies able to afford the considerable costs
Within this broad approach at least two business models are discernable:
Blockbuster model involving the search for and distribution of a small number of
drugs that achieve substantial global sales. The success of this model depends on
achieving large returns from a small number of drugs in order to pay for the high cost
of the drug discovery and development process for a large number of candidates. Total
niche markets. The advantage of this model is that its success is not dependant on sales
of a small number of drugs. However without a blockbuster to help pay for the high
development costs, the model only works for small markets where distribution cost is
low.
NPIL follows intermediate model borrowing advantages of both the models i.e. blockbuster
model and diversification model. The development and management of distribution system is
highly costly hence for the metropolitan market blockbuster strategy is used in which huge
revenues are earned from small number of selected drugs supplied in large quantities. These
returns are used for the further discovery of new drugs. Whereas, sales in other parts of India
in all four zones are carried out using diversification model in which large number of drugs
9|Page
are marketed to smaller niche markets. In this the quantity of drug ordered is less but the
NPIL being a leading pharmaceutical company has a wide range of customers. They can be
1. Medical Institutions
a. AIIMS
b. SAFDARJANG
2. Research Centers
a. PGI CHANDIGARH
b. JIPMER
3. Wholesalers
a. SINGH PHARMACEUTICALS
b. SONA MEDICALS
4. Doctors
a. Dr. Batra
b. Dr. Rajvanshi
10 | P a g e
2.4 Selling Process:
Pre-Sales Inquiry
Scheduling
Contract Quotation
Agreement
Order Processing
Procurement Order
Shipping
Delivery
Goods
Issue
Transfer
Order Shipment
Billing
Billing
Document
Customer Payment/
Accounting Accounts Material Stock
Receivable Account
The sales and distribution process of the NPIL is shown above. It consists of five stages:
11 | P a g e
1. Pre-Sales
3. Shipping
4. Billing
In a simple scenario, the sales process begins with the customer ordering goods and services
and asking for the requested delivery date. This mainly involves two documents, inquiry sent
by the customer, asking for material details and time of delivery, and quotation sent by the
seller to the customer, specifying the details of material required by the customer along with
the delivery date. This basic information can be used to create a document in sales and
distribution called Sales Order, which consists of all the details regarding customer,
organization, materials ordered, price of materials, and mode of payment and delivery
conditions. You can then trigger your shipping activities at an appropriate time so that the
customer receives the material in time. As soon as the material leaves the company, a goods
issue order is posted to update stock and values. Then a billing document is created and an
invoice is sent to the customer. Customer verifies the invoice against the materials received
and makes payment. As soon as the customer pays for the materials, the incoming payments
12 | P a g e
2.5 FORMS OF PHARMACEUTICAL PRODUCTS
13 | P a g e
CHAPTER 3
ANALYSIS
3.1 SALES PROMOTION IN SALES AND
DISTRIBUTION
Sales are the lifeblood of a business, without sales there would be no business in the first place;
therefore it is very important that if a business wants to succeed, it should have a sales promotion
strategy in mind. The primary objective of a sales promotion is to improve a company's sales by
predicting and modifying your target customers purchasing behavior and patterns. Sales
promotion is very important as it not only helps to boost sales but it also helps a business to draw
new customers while at the same time retaining older ones. There are a variety of sales
promotional strategies that a business can use to increase their sales, however it is important that
we first understand what a sales promotion strategy actually is and why it is so important.
A sales promotion is a tool used to get customers to buy a product or try a service. Sales
promotions can come in the form of coupons, rebates, sweepstakes, contests, discounted pricing,
before a sales promotion is put into action, a company evaluates its market. If a sales promotion
is warranted, the company comes up with a clear, measurable objective they'd like to accomplish
Sales promotion - Sales promotions are short-term incentives to encourage the purchase or sale
of a product or service.
Sales promotion includes several communications activities that attempt to provide added value
stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or
purchase. Examples of devices used in sales promotion include coupons, samples, premiums,
15 | P a g e
Sales Promotion Strategies
There are three types of sales promotion strategies: Push, Pull, or a combination of the two.
A push strategy 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. Trade-promotion objectives are to
persuade retailers 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,
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. 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. Typical
16 | P a g e
tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums,
Car dealers often provide a good example of a combination strategy. If you pay attention to car
dealers' advertising, you will often hear them speak of cash-back offers and dealer incentives.
Sales promotions are a great way to boost sales for a period of time for a specific product or
service. You can also rotate through different sales promotions to always have a sales
promotion going on. They key to a sales promotion is to position a product as "a good value".
Know what you are selling. Make sure you and your sales associates can accurately
Choose one product or package of products to promote. Be specific about what you are
about to offer your customers, and be clear about what customers need to do to qualify
for the promotion. Make sure all sales associates are on the same page with this.
Make sure the total price tag for the promotion is lower than it would be was it not
being specially promoted. Alternatively, make sure the total value of the services is
Advance the promotion to the forefront of your advertising strategies. You need to
get the maximum return on your promotion. To do that, you need to make it
among your top three messages during the promotion (the other two being brand
and image).
17 | P a g e
To engender trust on the part of the consumer, stay true to your word about the
promotion. Give them everything you promised. Charge exactly what you asked for in
the beginning.
If you have advertised the promotion as a "limited time" offer, you must end the
promotion when you said you would. This will prove to the customer that you mean it
when you say "limited time". This will encourage customers to act fast the next time
Rotate through different products, markets and regions. Adjust your marketing
clients, markets, traders, etc." or "that of selling an additional product or service to an existing
customer". The strategy of pushing new products to current customers based on their past
purchases. Cross-selling is designed to widen the customer's reliance on the company and
define cross-selling in many different ways. Elements that might influence the definition
might include: the size of the business, the industry sector it operates within and the financial
motivations of those required to define the term. The objectives of cross-selling can be either
to increase the income derived from the client(s) or to protect the relationship with the
client(s). The approach to the process of cross-selling can be varied. Unlike the acquiring of
new business, cross-selling involves an element of risk that existing relationships with the
18 | P a g e
client could be disrupted. For this reason it is important to ensure that the additional product
or service being sold to the client(s) enhances the value the client(s) get from the organization.
Also called suggestive selling, sales technique whereby complementary products are presented
to a customer after the customer has demonstrated a desire and willingness to purchase a
particular product. For example, when selling electronic equipment, a salesperson may attempt
to sell a service contract for the extended maintenance of the equipment after the customer has
decided to purchase the equipment. While cross-selling may make accessorizing more
convenient for the customer, it also enables the salesperson to sell more products
Broadly speaking, cross-selling takes three forms. First, while servicing an account, the product
or service provider may hear of an additional need, unrelated to the first, that the client has and
offer to meet it. Thus, for example, in conducting an audit, an accountant is likely to learn about
a range of needs for tax services, for valuation services and others. To the degree that
regulations allow, the accounts may be able to sell services that meet these needs. This kind of
Selling add-on services is another form of cross-selling. This happens when a supplier shows a
customer that it can enhance the value of its service by buying another from a different part of
the supplier's company. When you buy an appliance, the salesperson will offer to sell you
insurance beyond the terms of the warranty. Though common, this kind of cross-selling can
leave a customer feeling poorly used. The customer might well ask the appliance salesperson
why he needs insurance on a brand new refrigerator. Is it really likely to break in just nine
months?
19 | P a g e
The third kind of cross-selling can be called selling a solution. In this case, the customer buying
air conditioners is sold a package of both the air conditioners and installation services. The
customer can be considered buying relief from the heat, contrary to just air conditioners.
Free goods are what is needed by the society and is available without limits . The free good is a
term used in economics to describe a good that is not scarce. A free good is available in as great
A good that is made available at zero prices is not necessarily a free good. For example, a shop
might give away its stock in its promotion, but producing these goods would still have required
the use of scarce resources, so this would not be a free good in an economic sense.
Resources that are jointly produced. Here the free good is produced as a by-product of
something more valuable. Waste products from factories and homes, such as discarded
Ideas and works that are reproducible at zero cost, or almost zero cost. For example, if
someone invents a new device, many people could copy this invention, with no danger of
this "resource" running out. Other examples include computer programs and web pages.
This function allows you to offer your customers a product free of charge in the form of free
goods when a certain quantity of products is ordered. Free goods are a kind of quantity discount,
and are granted in the form of a goods delivery that is free of charge when a certain quantity is
purchased. You can use it to encourage your customers to order greater quantities.
20 | P a g e
● Inclusive bonus quantity: The customer only pays for part of the goods he or she has
ordered. The rest of the products are provided at no extra cost. For example, a customer orders
● Exclusive bonus quantity: The customer pays for the goods he has ordered, and also
receives additional products for free. The materials delivered as free goods do not have to be
the same as the goods ordered. For example, a customer orders ten notebooks, and
Inclusive
The customer only pays for a part of the goods required. The rest of the goods are free.
This is called Inclusive free goods and means that part of the purchase quantity is
designated as free goods and is not billed. The material supplied as free goods always
Often bottles of wine, two are designated as free goods. If you order ten bottles,
then ten are delivered but you are not billed for two of them. You have received
Exclusive agreement
The customer pays for the goods ordered and receives additional goods. This is
Known as exclusive free goods and means that free goods is granted for an additional
quantity to that in the purchase order. More is delivered than was ordered and the
The goods delivered as free goods do not have to be the same as material ordered. When
four coffee machines are ordered, the vendor supplies a packet of coffee as free goods.
Therefore, if you order four coffee machines, you receive a free packet of coffee.
21 | P a g e
Discounts are reductions to a basic price of goods or services. They can occur anywhere in
the distribution channel, modifying either the manufacturer's list price (determined by the
manufacturer and often printed on the package), the retail price (set by the retailer and often
attached to the product with a sticker), or the list price (which is quoted to a potential buyer,
usually in written form). The market price (also called effective price) is the amount actually
paid. The purpose of discounts is to increase short-term sales, move out-of-date stock, reward
otherwise reward behaviors that benefit the discount issuer. Some discounts and allowances
Here are some of the discounts you can offer to your customers.
you must have noticed a huge difference between wholesale and retail price. Whenever you
buy something in large quantities you expect some discount from the seller. People are more
than happy to offer low prices to a buyer who will purchase in large quantities because it
allows the seller to save in many ways. But normally these quantities are too large for a
normal consumer and only businesses can afford to purchase a product in these quantities,
however you can offer some sort of off-price if the customer buy more than one units, for
If majority of your customers make purchase on credit then you can offer payment based
discounts to these customers, tempting them to pay as soon as possible by offering a small
discount on paying cash without delay. Prompt payments will save you all those collection
costs and help you with daily expenditures of the business, as well.
22 | P a g e
Trade Discounts:
These are the discounts you have to offer to the middleman, be it the wholesaler, retailer or
distributor, so that they can cover all costs of marketing that may be needed before the product
reaches to the ultimate consumer. Trade discounts are in fact, the biggest of all.
Special Discount:
In some cases you can offer discounts to some specific group of customers to capture that
special segment of the market. This niche group can be of students, house wives, doctors, your
previous customers, small business owners or any other strategically targeted group.
23 | P a g e
CHAPTER 4
implementation
24 | P a g e
FREE GOODS
In many sectors of industry it is common to provide products free of charge, or not to charge
the customer for some of the goods sold when a customer purchases certain goods.
25 | P a g e
Determining free goods procedure in sales
Features
You create a free goods agreement in the same way as you do a condition. You can set the
requirements governing when free goods are granted at as many levels as required, e.g. at
for Customer/material level. The free goods agreement has a validity period. In the free goods
agreement you can save different rules for determining the free goods quantity. You can
determine a minimum amount for the sold material. The free goods only then apply from this
minimum amount. The free goods quantity can be defined proportionally to the quantity of the
material sold. Another rule defines the free goods quantity per full unit of the material sold.
26 | P a g e
I.e., free goods might be granted only for a certain number of full pallets and not for partially
loaded pallets. Free goods processing is supported in the sales order for direct sales. When
creating the sales order, the free goods items are created automatically according to free goods
The free goods item is a sub item of the originating item. The free goods items are relevant for
delivery and are copied to the delivery. The free goods item can be copied to the billing
document. It is possible to have the free goods in the invoice as free of charge items. In the
sales order and in the billing document, pricing can be carried out for a free goods item. An
automatic discount of 100 percent at the end of pricing ensures that the item is free of charge.
This facilitates representation in the statistics and in the Profit Analysis. The free goods can be
represented there not only as manufacturing costs but also as a special type of sales deduction.
27 | P a g e
Create free goods determination
28 | P a g e
Constraints
Free goods are currently only supported on a 1:1 basis. This means that an order item can only
be the source of one free goods item. This means that agreements involving relationships such
as 'Buy material 1 and get material 2 and material 3 free of charge' or 'Order material 1 and
material 2 together and get material 3 free of charge' are not supported. Free goods are not
currently supported in combination with material structures (e.g. product selection, bills of
material, variants with BOM explosion). Free goods are currently only supported for sales
orders with document category C (not for quotations, for example). Free goods are not
currently supported for deliveries without reference to a sales order. Free goods are not
currently supported for make-to-order production, third-party order processing and scheduling
agreements.
Use
29 | P a g e
Free goods master data must be maintained before automatic free goods determination can be
carried out. The condition technique is used for free goods in the same way as for pricing.
Features
o proportional (rule 1)
o related to number of units (rule 2)
o only for whole units (rule 3)
You grant 10 pieces of a material as exclusive free goods for an order of 100 pieces. A
customer orders 150 pieces. Depending on the rule used, the customer receives the following
free goods quantity:
Cross Selling
30 | P a g e
Maintain Customer procedures for Cross Selling
31 | P a g e
Define document procedure for Cross Selling
32 | P a g e
Define and assign Cross Selling Profile
33 | P a g e
New Entries for Defining cross selling profile
34 | P a g e
Create Cross Selling
35 | P a g e
Entry for Cross Selling
Discounts:-
Material Specific Discounts
36 | P a g e
Create Material Condition (k004): Fast Entry
37 | P a g e
For Customer specific Discounts
38 | P a g e
39 | P a g e