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PROJECT REPORT

ON

SALES PROMOTION ACTIVITY ON MOTHER

DAIRY

BY
Santosh Sathe
[08 OSB 351]

MASTER OF BUSINESS
ADMINISTRATION

Omegan School of Business,

Branch- Pune.
2008 – 2010.
 OMEGAN SCHOOL OF BUSINESS, PUNE

PROJECT REPORT

ON

SALES PROMOTION ACTIVITY ON MOTHER

DAIRY

BY
Santosh Sathe
[08 OSB 351]

FACULTY GUIDE

PROF.SHANTANU PRASAD

A Report submitted in partial

fulfillment of

The requirements of

MBA Program

Session [2008-2010]

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DECLARATION

I am Santosh Sathe of MBA, (Second semester) from Omegan

School of Business, Pune, Hereby declare that this project work
entitled “Sales Promotion Activity at MOTHER DAIRY FOOD AND
VEGETABLES PVT. LTD. Pune, Maharashtra carried out for 60
days.

To the best of my knowledge & belief, it is an original piece

of work and is the sheer outcome of my own efforts under the
vigilant guidance of my guides has not either in full or in part has
been submitted to any other institution for the award of any other
course.

Santosh Sathe

Omegan School of
Business,
Pune- Maharashtra

Date:-

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CERTIFICATE

This is to certify that, the project entitled “Sales Promotion

Activity” at MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD
which is being submitted by Mr. Santosh Sathe in the partial
fulfillment of the course MASTER OF BUSINESS
ADMINISTRATION submitted to Omegan School Of Business,
affiliated to ICFAI University, Tripura has satisfactorily completed
the research work under our guidance and supervision.

Mr. Shantanu Prasad Mr. Sunil

Lalla
[Faculty Guide]
[Principal]

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Mr. Deepak Mahadik.

[Company Guide]

Acknowledgement

I would like to express my gratitude to all those who gave me

the possibility to complete this project. I want to thank OMEGAN
pune Center for giving me permission to commence this project in
the first instance, to do the necessary research work and to use
available data.
I am grateful to Mr. Sunil Lalla (Principal of Omegan School
of Business, Pune) And Mr. DEEPAK MAHADIK (Product sale
Manager) MOTHER DAIRY FOOD AND VEGETABLES PVT. LTD.
Pune, under guidance I have completed this final report. I have no
words to acknowledge the valuable time & support that I received
from them during project work.
I am deeply indebted to PROF.SHANTANU PRASAD of
faculty in-charge of Marketing Management and other people who
helped, stimulating suggestions and encouragement helped us in
all the time of research for and writing of this report.

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Sr.no Index Pg.No Table of

Cover
Content

Title of project

Certificate

Acknowledgement

Abstract

1 Introduction 8

1.1 Objectives, Scope 14

And Limitation

2 Main Text 16

2.1 Theoretical Concept 18

2.2 Data Collection 23

3 Conclusion 25

4 Finding & Suggestion 26

5 Appendices 28

5.1 Questionnaire 28
6
5.2 Data Analysis 30

6 Reference 40
 OMEGAN SCHOOL OF BUSINESS, PUNE

Abstract

As a part of my MBA curriculum I am doing my internship

training at MOTHER DAIRY FOOD AND VEGETABLES PVT LTD.,
PUNE.

In this report I am going to share my ideas & work in

that company for the period of 60 days from 21.04.2009 to
21.06.2009. During my internship my role was “Management
Trainee – in Marketing & Sales marketing”.

I was supposed to boost the sales of one of the

average performing. Product of company like, milk and milk
related products. As a part of this internship I had identified some
problems and provided some recommendations to the company
about the idea of marketing & also about the personal selling.

Mother Dairy, the wholly owned subsidiary of the

National Dairy Development Board, has recently introduced three
variants in the fresh milk category across Pune market. Apart from
this, Mother Dairy also sells Cow milk in Pune. Initially, the milk
will be supplied to the city from Mother Dairy`s Vashi unit in Navi
Mumbai and once volume picks up and cross a 50,000-60,000 liter

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mark, it plans to have a unit in Pune.

My work in that organization mainly consists of to meet the

retailers and sell the product (Milk). Collect the data of existing
competitor e.g. asking retailer what product he is selling reasons
to sell those products. To help in increase sale ratio of company.
Tell the advantages of our product and what are the benefits of
retailer and customer will get.

CHAPTER NO.1

INTRODUCTION

Mother dairy one of the largest liquid milk plant in Asia it

started it operation in 1974 under the operation flood program of
the National Dairy Development Board.
Presently mother dairy sale more than 25 lakh liter of milk
per day out of which approximately 9 lakh liters of milk it sold as
bulk vended milk and other 16 lakh liter of milk is sold in sachets
in five different across six states including Mumbai.
Mother Dairy, the wholly owned subsidiary of the National Dairy
Development Board, has recently introduced three variants in the
fresh milk category across Pune market.

The variants launched include Full Cream milk, Tea Special

and Cow milk. According to Paul Thachil, CEO, dairy & foods,
Mother Dairy Fruit and Vegetable Pvt. Ltd, Full Cream milk is the
thickest, creamiest and tastiest milk available to the consumers in
Pune. This milk is ideal for families with children. Tea Special is
formulated to give consumers an extremely tasty and special cup
of tea.

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Apart from this, Mother Dairy also sells Cow milk in Pune.
Initially, the milk will be supplied to the city from Mother Dairy`s
Vashi unit in Navi Mumbai and once volume picks up and cross a
50,000-60,000 litter mark, it plans to have a unit in Pune.

The company has organized a special consumer trial

programme Creamier milk challenge in the case of Full Cream
milk. In this programme, consumers can avail Full Cream milk for
30 days by paying for only 25 days.

AWARDS

Mother Dairy has received "Best Productivity Performance"

award for three consecutive years starting from 1987-88 to 1989-
90 and again from 1995-96 to 1997-1998 from National
productivity Council and a commendation Certificate for Rajiv
Gandhi National Quality Award, National Energy Conservation
Award - 2004, Oil and Gas Conservation Award - 2004 and 2005,
Indian Innovation Award - 2004 and Safety Initiative Award - 2005.

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PROCESSING OF MILK

At mother dairy processing of milk is done through state of

the art microprocessor technology which integrates and
completely automates all function of milk processing and insure
high product quality, reliability and safety

The Various stages of milk processing are given below:

• CLARIFICATION

The chilled milk from the silos goes to

the clarifier after pre-heating. The clarifier
spines the milk at very high speed, removing
all dust particles that are invisible to the
naked eye.

• STANDERDISATION

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Milk from different breeds of cow and

buffalos varies in its composition. Hence, to
make milk uniform in composition it is
standardized by raising or lowering its fat and
SNF percentage to a desired level, so as to
deliver the milk to consumer as per
prescribed PFA norms.

• HOMOGENIZATION

In this process, the milk is subjected to

very high pressure due to which the large fat
globules present in milk are broken down in to
tiny droplets. The Milk fat gets evenly
distributed and milk appears whiter and
thicker. Milk homogenized for consumer who
do not like creamy lair on top.
Homogenization increases the profitability of
milk.

• PASTEURIZATION

In this process the milk is heated at 72c

for 15 seconds and then it is rapidly cooled
down to 4c. This process skill all the
pathogenic bacteria present in the milk and it
is safe for consumption.

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ADDITION OF NEW PRODUCT

In 1994 Mother dairy began diversifying into other value

added milk Product Mother dairy offers a range of delicious flavors
of ice-creams to consumers at very competitive price in order to
cater to the diversified need of the consumers Mother dairy has
also launched other dairy products like flavored milk dahi
Lassi,MishtiDoim Ghe,Cheese Dairy Whitener Chach etc.and many
more are in the offing.

MOTHER DAIRY LAUNCHES FRESH MILK IN PUNE

Mother dairy markets approximately 2.8 million liters of milk

daily in the markets of Delhi, Mumbai, sauashtra and Hyderabad
mother dairy milk has a market share of 66% in the branded
sector in Delhi where it sells 2.3 million liters of milk daily and
undertakes its marketing operations through aroung 14,000 retail
outlets and 845 exclusive outlets of mother dairy.
Mother Dairy, the Indian foods and Beverage Company
launched its offering in the fresh milk category today in Pune. The
company announced three variants in the fresh milk category--full
cream milk, tea special milk and cow milk which will be available
in the retail market Sunday, 22 February onwards.
Milk will be supplied to Pune from its existing Vashi unit in
Navi Mumbai and once volumes pick up and cross a 50,000 to 60,
000 liter mark it plans to have a unit in Pune. Alternatively, the
company may tie up with some existing entity for packaging and

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other needs to supply to the Pune market. The 'tea special' milk
variation is expected to give the company a first mover advantage
in this particular segment which is priced at Rs 22 per liter which
is the same as cow milk. Whereas the full cream milk with a 6.8
per cent fat content vis-à-vis 6.6 per cent in competitive brands
will be sold at a rate of Rs 28 for a liter.
"The tea special variant exists in places like Saurashtra for
bulk sale purposes but we are introducing this for the first time as
a product for end-consumers. Our market study shows that there
is a high tea drinking population. I think we are the third or the
fourth largest foods company in India and by the year-end of
2008-2009 we should close our turn over at approximately Rs
3300 crore. Our daily production of milk is close to 2.6 million
liters right now," said Paul Thachil, CEO, dairy and foods, Mother
Dairy Fruit & Vegetable Private Ltd.
Mother Dairy sells its horticulture brands under the name
Safal and vegetable oil related products under Dhara. It has
around 800 owned outlets for milk in Delhi. The vegetable and
fruit outlets too exist in Delhi, which are 400 in number while
Jaipur has 25, and Bangalore has 20 of them. After Pune, the
company is eyeing Nagpur for further expansion before the end of
this calendar year. Their current market share in fresh milk is
close to 10 per cent.
Mother Dairy is a wholly owned subsidiary of the National
Dairy Development Board.
Mother dairy has taken up the concept of Total Productive
Maintenance (TPM) whole heartedly. The number of employees
involved in KAIZENS and the no. of KAIZENS per employee are
very encouraging. Mother Dairy is a member of CII-TPM Club and
the KAIZENS done by Mother Dairy employees have been selected
and presented in 2nd, 3rd, 4th, 5th and 6th National Kaizen
Conferences held from time to time during the last three years.
Our TPM efforts have resulted in increase in MTBF and decrease in

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MTTR, quality improvement, Cost reduction and reduction in

accidents.

1.1 OBJECTIVE, SCOPE AND LIMITATION

OBJECTIVE

1. To study the impact of sales promotion activity on sale

2. To study the sales promotion programs on mother dairy.

3. To study the build and retain brand loyalty.

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4 To study to introduce new product.

5. To study to attract new customer.

SCOPE OF STUDY

This study helps to understand the sales promotion policies

used by mother Dairy for marketing of milk in market with the
profitability.

The study will help the management of mother dairy in

forming the future policies regarding sales promotion strategy.
Through retailer sample survey conducted information about
current market situation. This study focuses on last two to three
months.

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Limitations

• The biggest problem what I faced while completing my

project was in sufficient time of retailer and customer. The
time we needed to give the knowledge of our product to the
customer and the actual time customer had.

• The second problem what I noticed in that company was

limited scheme i.e. company offers very limited number of
schemes and limited timing for scheme, where people are
looking for more schemes.

• Limited Area was one of the disadvantages that I had to

complete the project. The area that I had was very small and
restricted to some limits.

CHAPTER NO.2

MAIN TEXT

DIRECT SELLING PROCESS ADAPTED FOR CUSTOMERS

Prospecting for evaluating the potential customer-It is a process

of finding and evaluating potential customer. I identified if the
potential customer has the ability, willingness and authority to buy
the product.

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1) Generating leads- A sales lead can be in the form of an

individual or an organization that might need or buy the
company’s product.

2) Identifying organization- A prospect is a person In the

organization that indicates need for a product

Approach –

In this stage I made an initial contact with the potential

customer and tried to find out his needs.

Presentation –

It is the most important stage in the sales process. The aim

of my presentation is to attract the prospect’s attention, stimulate
his interest and stir a desire for the product, so that he takes
appropriate action. The main aim is to communicate the product’s
benefits effectively to the prospect and convince him to purchase
the product. I not only spoke about the benefits the customer is
looking for, but also convinced him about the additional benefits
of the product.

Handling Objections-

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I clarified the doubts or objections that the customer had.

Closing –

In this stage I asked the potential customer to make the

purchase.

Follow up –

It was my last stage wherein I aimed to develop a long-term

relationship with the customer.

2.1 THEORETICAL CONCEPT

Marketing

“The Process of planning and executing the conception,

pricing promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational goal.”

- American Marketing Association

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Marketing management is analysis planning, implementation

and control of programs designed to create, build, maintain
mutually beneficial exchanged and relationship with target market
for the purpose of achieving organizational goal.

-Philip Kotler

SALES PROMOTION

Sales Promotion refer to those activities (Other than

advertising personal selling and publicity) which stimulate market
demand for product through short term incentives which are
essentially temporary and non recurring in nature sales promotion
technique build bridge the product and the consumer.

As an activity taken out to boost the sales of a product it can

include a host of activities like running advertising campaign,
handling public relation activity, distribution of free sample,
offering free gifts, conducting trade fairs, exhibitions and
competitions, offering temporary price discounts, launching door
to door selling and telemarketing.

OBJECTIVES OF SALES PROMOTION

The Main objective of sales promotion is to boost the sales of

a product by creating demand, i.e. both consumers demand as
well as trade demand. It improves the performance of the middle
man and act as a supplement to advertising and personal selling.

The Sales promotion also helps in achieving the following purpose-

1) Encourage the customers to try a new product.

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2) Attract new customers.

3) Encourage the customers to use the product or service and

make them brand loyal.

4) Counter a competitor’s promotional activities.

5) Increase the sales during the slack period.

6) To improve the public image of the firm and the product.

7) To provide the knowledge about product

METHOD OF SALES PROMOTION

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Method of Sales
Promotion

Point of Purchase

Trade Show

Free Sample

Coupon

Bonus

Price cut Offer

Contest

Demonstration

• Point of Purchase:
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Point of Purchase Consists of display & Demonstration of the

Product at prominent place in local market, like Squash tea,
Coffee, Soft Drinks etc.

• Trade Show:

It Consists of Display & Demonstration of product in a stall in

Exhibition organized by the manufacturers & traders
Associations.

• Free Sample:

This involves distribution of products/ services at free of Cost.

• Coupons:

A coupon is a certificate which entitles its holder to a

specified saving discount or gift on the purchase of a particular
product.

• Bonus:

A bonus is the offer of an article at no cost or at a very

nominal price on the purchase of a specified product.

• Price Cut offer:

Price Cut offer is an Offer to get the Product at Price lower

than the Normal Selling Price

• Contests:

Contest involve call for the consumer to submit an entry to

be examined by a panel of judges who will select the best
entries

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• Demonstration:

It involves activities which enable the consumer to know how

to make operational use of the product

2.2 DATA COLLECTION

MEANING OF RESEARCH

Research in common parlance refers to a search for

knowledge. Once can also define as a scientific and systematic
search for relevant information for specific topic. In fact, research
is an art of scientific investigation.

The Advance Learner’s Dictionary of Current English lays

down the meaning of research as “a careful investigation or
inquiry especially through search for new facts in any branch of
knowledge.” Redman and Mory define research as a
“systematized effort to gain new knowledge.”

Some people consider research as a movement, a movement

from the know to the unknown. It is actually a voyage of
discovery. We all process the vital instinct of inquisitiveness for,
when the unknown comforts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller
understanding of the unknown.

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SIGNIFICANCE OF RESEARCH

“All progress is born of inquiry. Doubt is often better than

overconfidence, for it leads to inquiry, and inquiry leads to
invention” is a famous Hudson Maxim in context of which the
significance of research can well be understood. Increased
amounts of research make progress. Research inculcates scientific
and inductive thinking and it promotes the development of logical
habits of thinking and organization.

The role of research in several fields of applied economic,

whether related to business or to the economic as a whole, has
greatly increased in modern times.
The increasingly complex nature of business and government
has focused attention on the use of research in solving operational
problems. Research, as an aid to economic policy, has gained
added importance, both for government and business.

Seven major steps in research process

 Determine the problem or opportunity.

 Specify what information is needed.

 Identify the source of information.

 Decide the technique for acquiring the information.

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 Gather and process the information.

 Analyze and interpret the information.

Collecting the data
In dealing with any real life problem it is often found that data
at hand are inadequate, and hence, it becomes necessary to
collect data are appropriate. There are several ways of collecting
the appropriate data which differ considerably in context of money
costs, time and other resources at the disposal of the researcher.

PRIMARY DATA
By Interview:
This method implies the collection of information by
interviewing, shopkeepers. The information obtained relates to
what is currently happening and is not complicated by either the
past behavior or future intentions or attitudes of respondents.

SECONDARY DATA
Secondary data was collected through magazines, Pam
palate, Book late and data from websites.

Sample Area:-
The sample area selected for the project was mother dairy
Retail Store, Pimpari Chinchwad

Sample Space:-
The total sample space for my questionnaire part was 50
Data Collected from the Manager at the Store: -

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Competitors:-

Chitale, Gokul, Katraj, Amul

CHAPTER NO.3

CONCLUSION
From this 60 days experience in a corporate, I got a good
exposure about what really the corporate life is about. It’s waking
along with targets and mind stresses every morning. The person
who can manage these target and stress are shining in those
fields.
I personally think that marketing is not everyone’s cup of tea
but if one set his target high and continuously strive towards that,
nothing is impossible. The only thing required in our field is the
right attitude or a positive attitude towards attaining
One’s goal.
By going 60 days in to company I came to know various
things about the organization, employees, customers, workers,
and about the marketing field. Company is doing direct selling
with the help of two managers.
All the employees are also happy from last 35 from
our company because company is providing lots of facilities to the
employees, they had taken all the employees on the permanent
basis in that time, but thing is that till this time they are not giving
lay off, or early retrenchment in recession also. So we are getting
good production i.e. product whatever & whenever we want it.
The other thing is that we reached to the customer
expectation in regarding to the product quality, price, and
timelineness of the order, so the clients of company are going to
increase, the marketing dept performing good role with all the
clients.
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I realized the deficiency of co –ordination, but the company

is right now working on that problem, & I hope this problem will
come under control in forthcoming days.

CHAPTER NO.4

FINDINGS

The findings of the project are as follows:

 The data I have collected 80 % of the customer are

agreed on the sales promotion strategies applied by
mother dairy.

 Sales promotion strategy levels of mother Dairy are

better than other competitors in the market as per
data collection.

 Good quality is preferred than the price nowadays,

that’s what people are choosing mother dairy now
days without caring prices.

 Many players have entered into this industry so

options widens for the customers. Hence brand
loyalty is affected.

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 The availability of the milk products also affects the

market for e.g. milk powder.

SUGGESTION

1. The time difference is more between product promotion and

launching the product in the market than the estimated time.

2. The number of schemes related to the product are more to

the distributors and retailers as compare to customer, where
as more schemes given to the customer can add the total
sales and the total revenue.

3. For better selling provide the new promotional strategies of

the product.

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CHAPTER NO.5
APPENDICES

5.1 QUESTIONNAIRE

1. Why you had specifically chosen mother dairy only?

a) Quality c) Price
b) Brand d) Other

2. Are you satisfied with sales promotion strategies offered by

Mother Dairy?

a) Yes b) No

3. According to you which offer is useful for you?

a) Discount c) Coupons
b) Other

4. How do you grade them according to their sales promotion

activity?

a) Poor b) Fair

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c) Average d) Good

5. Till what extend does bonus scheme attract you to purchase

the product?

a) Completely b)Average
b) Never d)Other

6. Have they provided you price cut offer during festive

season?

a) Yes b)No

7. Which medium of advertising is most powerful?

a) Press advertising
b) Radio Advertising
c) Television advertising
d) Other

8. What are you looking more different in our product?

a) More Quality
b) More Quantity
c) Other

9. Did you get any kind of Demonstration of the product from our
company?

a) Yes b) No

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10. Does point of purchase is helpful for you?

a) Yes b) No

5.2 DATA ANALYSIS

Reason Of selection

Reason Of selection Respondent

Quality 22
Brand 12
Price 11
Other 05

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Satisfaction of Sales Promotion

Satisfaction of Sales Respondent

Promotion
Yes 36
No 14

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Which offer is useful?

Which offer is useful Respondent

Discount 27

Coupon 17

Other 06

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Grading according to sales promotion Activity

Grading According to sales Respondent

promotion Acticity
Poor 02
Fair 08
Avrage 17
Good 23

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Extent of Attraction by bonus Level

Extent of Attraction by bonus Respondent

Level
Complete 17
Average 13
Never 20

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Exercised Price Cuts during Festive Offers

Expericed Price Cuts During Respondent

Festive Offers
Yes 30
No 20

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Effective Medium of Advertisement

Effective Meadium of Respondent

Advertisement
Press Advertising 07
Radio Advertising 14
Television Advertising 25
Other 04

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Customer Expectations Regarding the Product

Customer Expectations Respondent

Regarding the Product
More Quantity 25
More Quality 20
Other 05

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Received Demonstration about product

Received Demonstration
about product
Yes 36
No 14

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Point of Purchase

Point of Purchase Responden

t
Yes 31

No 19

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CHAPTER NO.6

References
I got all the information regarding the study of product
analysis & corporate selling with written proofs from the following
references.

Books:

Business studies by P.C. Tulsian

Marketing management by Philip kotler
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Websites:
Pamphlet:

www.motherdairy.com

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