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TERM PAPER

OF
SALES AND PROMOTION

Topic- IMC PLAN FOR MILK

Submitted To- SD . Navjit Singh Submitted by-Rimpi Mehta


Lect, LSB,LPU., Roll No- R1811A01
Regd No. 10812432
Section 1811
Serial No. 28
M.B.A IIIrd (Sem)
ACKNOWLEDGEMENT

I am grateful to thank our Campus Head for giving me this great


opportunity to do my project.

I also extent my thanks to Mr. Navjit Singh, faculty guide who has
given me moral support to do my project work. It also extend my
thankfulness to my beloved parents and friends for their
continuous encouragement at every moment
INDEX
1.Acknowledgement
2.Executive summary
3.Introduction to marketing
Understanding marketing
Definition of marketing
The marketing mix
Product
Price
Place
Promotion
Understanding marketing communication (Promotion)
Advertisement of milk company
Definition of sales, promotion
Advertisement
The IMC planning process
The marketing plan
The IMC plan
Swot analysis
Determining the budget
Conclusion
EXECUTIVE SUMMARY

This project is about the IMC used by the Milk company. It includes the all
the promotional tools used by the company for marketing communication. In
this we are using different sales and promotion techniques for the sale of our
company milk and building a strong image of our company product in the
minds of our customers. Special kinds of price discounts , samples are given
to

the customers and traders for the strong positioning of our product in the
market.
The name of milk product is
the pure milk,
and the tagline of our milk product is ‘the real milk of India.”

The main objective of our company is to provide better quality to our


customers as compared to our competitors and building a good image of our
product in the minds of the customers.

By providing a better quantity to our customers our company will generate a


revenues, which our company would further invest for increasing our
product line. In this we it is discussed that what are the different kinds of
four Ps of our company . What is the Price of our milk , What are the
different kinds of promotional tools used by our company for the sale of our
product . Different kinds of strategy are used by our company for increasing
revenues from our milk product. At the end estimation of budget is done for
knowing the expected expense done by the company for our milk product.
INTRODUCTION TO MARKETING

UNDERSTANDING MARKETING- Before we begin


discussing marketing communication, We must take a moment to understand
its higher order discipline ,viz, marketing. Marketing is a composite of many
activities related to customers need fulfillment and satisfaction. Marketing
includes many tasks right from identifying consumers needs and wants to
fulfilling them.

DEFINITION OF MARKETING- The American Marketing


Association defines marketing as the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services
to create exchange that satisfy individual and organizational objectives.
For marketing to be effective ,it requires successful coordination of all these
activities at different levels in the organization.

THE MARKETING MIX – Various maketing activities can be


classified into four general categories,viz,Product, Price, Place( distribution )
and promotion, which are populary known as the 4Ps of marketing or
marketing mix.

PRODUCT- This includes all the activities related to the conception and
planning of actual product that fulfills consumers needs and wants, i.e,
decisions regarding product quality , designs, features , sizes, varieties,
brand name, warranty, gurantee and other services.

In this project the product is milk. The name of our company is the PURE
MILK .Milk is provided in different packages of different sizes i.e,1 kg and
half Kg packets. Pice of is 28 Rs and Half Kg product is Rs14.
PRICE- This area deals with activities related to setting the price for the
product. Decisions regarding retail and wholesale prices, margins of channel
members, discounts and allowances, credit terms, payment period , etc. are
the part of pricing function of marketing mix. The 1 kg of milk Packet is of
Rs. 28 and Half Kg is of Rs 14.

PLACE- Placement or distribution refers to all activities involved in


getting the product to the final consumers. Decisions under this “P” relates
to the distribution channels, market coverage, locations , inventory,
transportation, etc. The main target market of our milk product is the
PUNJAB STATE.

As the people of Punjab are very health conscious and believe in better
quality , So, our companies main target market is the population of Punjab.

Our company would sell our milk product to all the retail outlets, Sweet
shops, Dairy shops, in all over the Punjab.

PROMOTION- Promotion refers to all the activities concerned with


informing consumers about an organizations offering , persuading them to
buy it, and reminding them it from time to time. Activities like advertising,
sales promotion, directing, direct marketing, public relations, personal
selling and other conventional media to comprise the “P” of operations. In
promotion of our milk product we will use different kinds of promotional
activities like advertising, direct marketing to the consumers and retail
outlets.
.
UNDERSTANDING MARKETING
COMMUNICATION(PROMOTION)
It involves all the activities concerned with effectively communicating
Product information to select target audiences. A target audience is a group
of consumers to whom marketing communication messages is directed.
The prime purpose of communication is congnitive, affective or behavioural
response, whatever that desired response may be. In other words, the
communicator might want to imprint something in consumers
mind(cognitive response), change in attitude(affective response) or get the
consumer to act (behavioral response).

ADVERTISEMENT OF MILK COMPANY (PURE


MILK) - The word advertising is derived from its Latin root ‘ad verter”
Which means ‘to turn towards” or “to attract attention to”.

DEFINITION OF ADVERTISEMENT- Advertisement is the any paid form


of non- personal presentation and promotion of ideas or products by an
identified sponser.
The main objective of advertisement can be categorized based on whether
their goal is to-
Inform
Persuade
Remind
Reinforce
In our company of milk product , we can use the Brand Building
advertising that focus on creating product awareness and brand building
image.It is strategic and hence relatively long term in nature. We use the
tagline “pure milk”, “the real milk of India”.
Retail advertisement can also be used by the retailers on the local scale.It is
aimed at building store traffic, creating a distinctive image for the store and
more often than not, at triggers sales in short run. Retail advertisement is
more informational, giving details about the outlets and its offerings.

E.G--- The retail outlets where we sell our milk would put down small
notice on their blackboards about our product i.e , it is available there , its
prices, it will help in attracting more and more customers.

DIRECT MARKETING- We will sell our milk also through


direct marketing. Direct marketing is a interactive system of marketing
which use one or more advertisement media to effect a measurable response
or transaction at any location.

The advantage of direct marketing is that in results in quicker sales, better


targeting and relationship building and less competition and from this we
will come ,more close to our customers. In this case we will come more
close to our customers and will get the perception of the customers towards
our product.

TELEVISIONS- Our company will make a advertisement of our company


milk product and telecast it on the T.V. Special kind of creative
advertisement is made by the company for creating interest of the customers
towards our milk product. The main aim of our television advertisement to
aware people about our milk product.

INTERNET—As we know in today scenario, Internet is having a special


place in the minds of the people. Our company Will also make Our website
from which the interested people will get the important information about
our product and about the product benefits and quality.

The main benefit of Internet communication is that it is directed directly


towards the target market . The customers who are interested will easily go
through our website and get knowledge about our product. It is totally
personalized and up to date mechanism for attracting customers towards our
company. Through it customers will also give their experiences and
suggestions for our milk product.

DIFFERENT KINDS OF SALES AND


PROMOTIONS USED BY THE COMPANY

DEFINITION OF SALES AND PROMOTION--- ‘Sales promotion consist


of a diverse collection of incentives tools, mostly short term , designed to
stimulate quicker and greater purchase of a particular product or services by
the consumers or the trade.”

Types of sales promotion used by our company- Our company will used
different type of sales promotion activities for increasing sales of our
product and awaring the customers towards our project.Consumer
promotions are those that are directed to the consumers. The objective of
consumer promotion is to offer the consumers some added benefit to entice
him to buy the product.Ths is normally done in addition to the
advertisement. Whereas advertising has a long run effect on the purhase
behaviour , connumers promotion have more of a short term effect.

SAMPLING- This form of promotion ifs found to be especially useful when


one is introducing a product for the first time. Our company will also gives
sample to the target customers for checking out their reactions towards our
product The samples are either distributed at the retail outlets and residences
of the final customers.Our company also request the consumers to fill up a
questionnaire after the sample is used and thus are able to get feedback about
our product that whether the customers like it or not. But the sampling is
however one of the most expensive method of consumer promotion and
there is no gurantee that the customers will actually go and buy the sale pack
of our product.
PRICE OFF-- This is essentially offers the consumers the product at less
than the marked maximum retail price. The purpose of this is to induce the
consumer to try our milk product immediately.

QUANTITY DEALS- In the quantity deals , our company may provide


more quantity in a same price for attracting the customers towards our
product. Like our company would increase the quantity at the underlying
price of our product. This will helps us in attracting more and more
customers towards our milk product.

DISCOUNTS- Our company will give discounts to our customers. Like if


The customers buy four –five liter milk or more than it or milk in a bulk , we
will give them discounts.

OUT PRODUCED GIFTS- In this case the gift item is attached to the
product from outside. This will attract customers towards our product.
Like we will give ONE PLASTIC GLASS free with every 1litre milk packet
for attracting customers or increasing our sales.

CONSUMERS CONTEST- These are run to create an excitement amongst


the target segment. Contest are normally advertised extensively and test
more often than not the knowledge of the consumer on the product or some
other skills.

We will involve the completion of a sentence , which may say that –

“I LIKE A PURE MILK BECAUSE OF -------------------“.


Prizes for this contest would be very excited for creating interest of the
consumers towards it. Different cash prizes, travel allowances will be given
to the winners.
TRADE PROMOTIONS- Trade promotions are those that are run to elict a
better and quicker response from the trade. These can be done when
introducing a new product to ensure enhanced stock preceeding a good
season , or block a competitor. Trade promotions are normally part of of
push strategy , the assumptions here are being that if the trader has a excess
stocks bought trade scheme he will be motivated to push the product in
order to recover his investment as soon as possible .
There are several tools for trade promotions

DEALERS GIFTS- For the sake of building a strong image in the minds of
the dealers our company will also provide different kinds of dealers gifts and
rewards so that they feel motivated and do more hard work for increasing
sale of our milk product . If we provide gifts and rewards to our dealers they
feel that our company is taking care of them and they are having a great
position in our company.

Different kinds of travel allowances , gifts, rewards are provided by our


company. Special kinds of refrigerator are to be provided by the company
for preservation of milk .On the special events like on new year, Diwali,
gifts are given to the traders for getting them loyal to our product.

DEALER CONTEST- Dealer contest are organized by our company for


changing our traders as a loyal traders of the company and motivating them.
Special kinds of rewards , gifts are given by the company for the winners.

POINT OF SALE MATERIALS- Our company should also provide point of


sale material to our dealers and traders. Special kinds of refrigerators, boxes
are provided by our company for the better preservation of our milk product
in the retail stores, dairy shops and sweet shops.

SHOP BOARD PAINTINGS- Special kinds of hoardings, sign boards are


fixed on outside and inside the shops, retail stores, dairy shops, sweet shops
for attracting more and more customers and providing information to the
customers that the product is provided by this particular shop.
DEALERS DISCOUNTS —For making our traders more loyal to our
company special discounts are arranged by our company. The traders who
will purchase our milk product in the bulk or in a continous manner , special
discounts are provided by the company to them by the company.

DEALERS MEET- Special meetings are arranged by the company for doing
meeting with the dealers, traders as they are more closed to the customers
and they are having more information about the need, wants of the
customers. The meetings are organized after every one and two months for
meeting more information about our product and customer perception about
our product.
INTRODUCING NEW TASTE OF MILK

PUREMILK(“THE REAL MILK OFINDIA”)

MADE IN INDIA
Manufactured BY- Pure Dairy
Milk Company
MUMBAI
Phone No-12345678
THE IMC PLANNING PROCESS
Marketing communication is one of the four tools of marketing mix. Hence,
it is based on the strategic laid down in the marketing plan, which in turn is
derived from overall business plan. Strategic planning is the process of
devising a plan of action for meeting an organization goals with its limited
resources and in the wake of varying market conditions. Strategy is allowed
an organization to focus on limited sources on the best available
opportunities, thereby achieving sales, profits and competitive advantage
growth and a sustainable competitive advantage.

There are three primary components of a strategic plan-

OBJECTIVES- What a company wants to achieve. Objective dictate the


course of action to be taken. E.G – The main objective of our company is to
provide better services to the customers. Our main target market is the retails
shops, sweetshops, and dairy shops are there in the Punjab.
STRATEGY—A long term plan of action designed to achieve the
objectives. The strategy of our company is to expand the market in rural
villages and also increase the customers.

TACTICS- Immediate actions with resources at hand, short-term isolated


events to take advantage of opportunities at hand. E.G— Company will
reduce its prices as compared to others competitors. Like the selling price of
1 Kg Milk Product is Rs 24 and Half Kg milk product is Rs. 12. The current
price of milk of our competitors are 1 Kg is of Rs 28 and half Kg packet is
Rs 14. Our company will also provide discounts to the retailers ,wholesalers
if they purchase our product continuously or in the bulk.
THE MARKETING PLAN
The IMC Planning process begins with the review of marketing plan.
A marketing plan is a written document that details the marketing objectives,
strategies and tactics foe an organization, product or brand, and guides the
marketing efforts. It is based on an in depth understanding of the firms
internal and external environment- the industry, the competition, the product
current positioning , its customers, etc.

THE IMC PLAN- Following are the steps involved in the IMC
planning process.

SUITATIONAL ANAYSIS- Like the marketing plan , the


promotional plan also begins with an analysis of factors that are relevant to
Promotional suitation.

1. PAST PROMOTIONAL SITUATION- Review of campaign


including their objectives , audiences, strategies, tools, media, and
budgets.
2. PRODUCT SITUATION- Our company will analyse that what are
products which are present in our product category. Assessment of
product benefits, quality, packaging, price, image, availability,
features and unique selling points.

Like our product is the milk our company is providing better quality
milk to our customers as compared to our competitors.

Price of product is that 1litre milk packet is of Rs 28 and Half Kg is of


Rs 14.

Avalibility- Our milk product is available at all the sweet shops, dairy shops
and all the retail stores, which are having conditions for protection of milk.
IMAGE- Our company have to made a unique image in the minds of our
customers. So for this we have to chose features of our product so that our
customers would easily remember our product.
The mane of our milk product is – “PURE MILK”
AND THE TAGLINE OF OUR PRODUCT IS “THE REAL MILK OF
INDIA’’

AUDIENCE SITUATION- An analysis of audience of promotion – buyers,


influncers, decisions makers their demographic profile and psycographic
profiles, behavioural patterns and life styles, factors influencing their
products purchase decisions , buying patterns.

COMPETITIVE SITUATION- Promotional strategies adopted by direct and


indirect competitiors. In our product our main competitors are the other milk
companies like Verka, Amul. Through tjis we would analyse that what is the
position of our competitors in the market, what are their strengths, weakness,
their product, price etc.

Regulatory situation- Regulatory authorities governing the product category


and media , and rules and regulations of the government which our company
has to follow.
Like our company has to see that what are the factors which we have to
follow for sale of our milk product in the market. Whether we have the get
license from the government and have to registered our company to them.

Following are the some common area of analysis.


A well-known practice for analyzing and summarizing the suitation is called
SWOT analysis.

STRENGTH

Demand profile – Absolutely optimistic demand

Margins- Quite reasonable, even or packed liquid milk.

Flexibilty of Product mix- Tremendous with balancing equipments.


Availability of raw material- Abundant more than 80% of the milk products
are flowing from the unorganized sector.which requires proper
channelisation.

Technical margins- Professionally trained –technical human resource


manpower is built in our company.

WEAKNESS
PERISHABILITY- The main weakness of our milk product is its
persihability. Special Conditions are required so that our milk cannot get
spoiled. Pasteurization has overcome this weakness partially. Surely many
new process will follow to improve milk quality and for extending its shelf
life.

LACK OF CONTROL OVER YIELD- Theortically, there is a little control


over the milk yield. However , increased awareness of developments like
embryo transplant, artifical insemination and properly managed animal
husbandry practices coupled with the higher income to rural milk producers
should automatically lead to improve in milk yield.

LOGISTICS OF PROCUREMENTS- Because of bad roads and inadequate


transportation facility make milk procurement problematic. But overall
economic improvement in India, will lead to the improvement in these
logistic problems.

PROBLEMATIC DISTRIBUTIONS- All is not well with the distribution.


There is a need of emergence of a cold chain linking the producer to
refrigerator at the consumers home.

COMPETITION- Now a days competition is very hard in every field. Our


milk company may also face competition because of new entrants in the
market.Because of huge competition the market is large is enough for us to
carve out their niche market.We will overcome our competitors if we
provide better services to our customer than our competitors.
OPPTURNITIES FOR OUR COMPANY
Failures is never ending final and success never ending

VALUE ADDITION- We will add value to our milk products so that


customers would buy product and will attract towards our product. Our
company will add value added products like shikhand,ice-cream, paneer,
khoa, flavoured milk, dairy sweets,etc, this will lead to a greater presence
and flexibility in the market place along with oppturnities in the field of
brand building.

Addition of cultural products like yoghurt and cheese tends to furthet


strength both in term of utisation of resouces and presence in the market
place.

A lateral view opens up oppturnities in milk proteins through casein,


caseinates and other dietary products, further opening up .

Export Oppturnities—If our product would get position in the market we


will expand our market in the foreign countries also. Export oppturnities
would be seen for increasing our customers.Our company would generate
export potentials like various companies i.s- Amul is expoting their products
in foreign countries like Bangladesh, Sri Lanka.

Yet another aspect can be addition of infants foods,geriatric fods and


nutritional
THREATS

Milk VENDORS- Today the milk vendors in the unorganized sector are
occupying the pride , the place in the industry . Organised discrimination of
information about the harm that they are doing to producers and consumers
should see steady decline in their importance.

Delicensing in the Indian Dairy Industry has been attracting a large number
of entrepreneurs . But the success of them depends on the factor such as
efficient economic facilities and innovation in the market place.

2. DETERMINE THE PROBLEM OR OPPTURNITIES- The suitation


analysis done in step 1 helps us to identify problems or oppturnities
concerning communications. IMC plans can solve problems like awareness
or knowledge, negative attitude, misconception about our product .I n this
case we have to sell our milk product to the customers or have to aware the
customers towards our product.

3. DETERMINE COMMUNICATION OBJECTIVES- Communication


objectives flow marketing objectives. Our company will use different
communication media for increasing the awareness of our customers
towards our product. Like we can use T.V, radio, print media,
hoardings, bill board to aware customers towards our product.

The main objective of our different kind of communication media is


same-
To create awareness of our milk product
To increase sale of ur milk product
To build a good image of our product in minds of the customers.
To provide better qualities to our customers.

DETERMINE THE BUDGET - After setting the communication


objectives, our company has to estimate how much we are willing to spend
on the promotional activities. The company has to consider various issues
like how much the programme will it cost, how much it can afford how
much competitors are spending.

Our company can make the budget by analyzing the sales expense or
estimating sales in the one territory.
The Steps involved in the estimating the budget is as follows.

PRODUCT TARGET-The first step in the analysing the budget is to analsye


the target market that where we have to sell our product and at which region.
Like our company is targeting the State Punjab .

Our main target market is the sweet shops, dairy milk shops, retailers of the
punjab and population of the Punjab. We have to sell our milk product there
so that it would reach to all our customers. Special trade discounts, special
offering are provided by our company to our traders, retailers so that feel
motivated and helps us in creating awarness our product towards our
product.
Like special kinds of refigerators and other rewards are given by our
company to the retailers, dairy milk shops and sweet shops for preserving
our milk .

SALES BUDGET OF OUR PRODUCT


For getting information about our sale expenese, we estimate the expense
occur by our company for selling it in the one small town , Dasuya.

For selling our product in the Dasuya city we recruit five sales persons.

There name are as follows-


1. Mr. Sohan singh
2. 2Mr. Mandeep Singh
3. Mr. Akash Kumar
4. Mr. Ram Kapoor
5. Mr . Yashdeed

We are sending our five people in different regions of Dasuya City.Like one
in North Zone, One in south zone , One in East Zone, one in west zone. And
one in central zone.
The main benefit of sales target is –
1. Inreasing market coverage because sales persons are more close to
their customers.They know where they have to go , who are their
customers, how they have to communicate with their customers.
2. It also controls selling expense and time because sales persons
have to know where they have to go and at what time. Wstage of
time and mone should be eliminated by this sales territory medium.
3. It will helps in enabling better evaluation of sales force
performance.
4. It will customer relationships. Because customers feels that they are
more close t company and company is providing better services to
them.
5. It helps in increasing sales and increasing profits and revenues of
the company.

MANAGEMENT OF TERRITORIAL
COVERAGE
In the travel plan of our company customers we will do sheduling of
our sales persons in a straight line manner, because through it all the
sales persons start their daily schedule from the headoffice from their
they get the information about their daily schedule and went to their
assigned places.

TIME MANAGEMENT TOOLS- The timing of our sales persons


starts from the morning at 9:00 A. M. In the morning they have to come to
the office for betting their daily schedule . At 10: 00 A.M they have to start
their daily schedule and had to go their assigned places. In the evening at
5:00 P.M they have to get back in the office and had to report the headoffice
about their daily schedule , how was their day and how was their experience
of the whole day. At 2:00 clock, they are having their lunch for one hour.
ESTIMATION OF THE BUDGET ON THE BASIS OF
EXPENSE DONE ON ONE TERRITORY

Salary of one sales persons in 1 month- Rs.15000


Salary of 5 sales persons- 150000 into 5= Rs 75000
Telephones charges- 1000into 5= Rs 5000
Vehicles Charges - 1000 into5 Rs 5000
Daily meals charges----1000 into5= Rs 5000
Advertisement expense on T.V Rs 90,000
Expense on print media and other Rs. 3,00,000
Medias like radio, internet
Raw materials Expenses Rs. 5,00,00
Other Miscellaneous expenses Rs .15,00,000
Total expense Rs. 24,95,000

IMPEMENTATION OF THE PLAN- After making all this


IMC plan we will Implement our planning for getting results and
introducing our product in the market. Different kinds of communication
tools are used by our company , for getting revenues and building a strong
image of our product in the market.

MONITOR/EVALUTION OF PERFORMANCE-
After implementing, the whole IMC plan, we will evaluate our
company performance to measure the expected results with the
actual result and find whether our company IMC plan was able to
build a strong image of our product. Different kinds of surveys, are
conducted by our expertise to check the process of our IMC and
monitoring the impact of IMC on the market and consumers mind.
CONCLUSION

From all the above information it is cleared that IMC is a very important
aspect in introducing our product in the market and getting a strong position
for our product. The tools of IMC like advertisements, direct marketing are
helpful for our company for establishing a strong position in the minds of
the customers and IMC provide assistance for the company for achieving
their goals and objectives. These are the ways for fulfilling our objectives
and provides us a path for fulfilling our objectives. By choosing different
types of tools we convince our customers and attract our consumers towards
our product a, and as a result of which we generate lots of revenues.
BIBLOGRAPHY-
1 http:/marketing about.com/ad/marketing glossary

2 www the free dictionary.com/milk.


3 www scrub com/doc/17660303/nestle-imc -plan.
4 http freedictionary.com/milk/4540.
5. www.imcplanning.comp.india.com
6.www//marketing.about.comp//marketingglosary//imc.htm
7 www.exampleessay.com.html
8.drypen.in//salespromotion//sale tech.com

BOOEK REFERRED- Sales And Promotion


By= Kurti Shah and Dousiza

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