CHAPTER- 1

INTRODUCTION
Every business organization reaches to the customers through their goods or services. To sell the
products to the customers a number of activities are being performed. This is called marketing
and it is an important function. Marketing is the performance of business activities that directs
the flow of goods and services from producer to the customer. It is the activity that directs to
satisfy the human needs through exchange process. Marketing starts with the identification of a
specific need of customers and ends with satisfaction of that need. The customer is found in the
beginning and end of marketing process. In marketing a large number of activities are performed.
For easy understanding these activities are divided in 4 groups for products and 7 groups for
services. These elements are product, price promotion, placement for products and three
additional elements for services are process, people and physical evidence. These are called
elements of marketing mix.

Promotion is one of the elements of marketing mix. Promotion decisions are taken
simultaneously with other decisions like finding target group, determining objectives, budgeting
for promotion, launching of new products, distribution etc. Promotion is one of the variables
through which information regarding products or services is being communicated to customers to
change their attitude and behaviour. Marketers are concerned with effective utilization of
promotion-mix to increase sales and market share. Methods of promotion include advertising
personal selling, publicity, sales promotion and packaging. Sales Promotion is the activity that
aims directly to influence buyers to buy products and increase sales. In sales promotion mainly
three parties are involved i.e. consumers, traders and sales force. Sales promotion refers to many
kinds of incentives and techniques that are directed towards consumers, traders and sales force
with the intention to increase sales in short term.

“Sales and promotions include incentive offering and interest creating activities which are
generally short term marketing events other than advertising, personal selling, publicity and
direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the
purchase and other desired behavioural responses of the firm’s customers”.

The main objective of sales and promotion is to increase the sales of products in short term by
influencing behaviour of buyers. Sales and promotion methods are many and these are selected
as per the target groups. For this purpose, a sales and promotion strategy is to be prepared to
achieve the objectives effectively. The strategy is a game plan that is needed to perform the tasks
effectively and get competitive advantages over others in market. Sales and promotion strategy
directs the manager in selection of parties, methods of sales promotion, implementation of
methods and measuring effectiveness of whole efforts regarding sales and promotion. In
competitive situation, it is very difficult to increase sales or profit. But with sales and
promotional strategy sales can be increased in short – term. Strategy is the game plan to achieve
the targets as per planning. It explains what, when, where, who and how to do so that objectives
of the planning are achieved. Without the strategy the task may not be completed effectively.
Sales and promotional strategy would help to neutralize the effective of competition and defend
the company in the market in performing the sales related tasks. The importance of sales and
promotion strategy is increasing day by day and in future higher level of competition it would
increase further.

Indian industry is a fast developing industry. Fast Moving Consumer Goods (FMCG) are more in
demand and frequently purchased by customers. These goods include all consumable goods
(other than pulses and grains) and consumers buy at regular intervals in small quantities. Main
items in this category are detergents, soaps, shaving products, shampoos, toothpastes and
brushes, packed food stuffs, household accessories, creams, oils, tea, coffee etc. Every family
spends a large portion of monthly budget on FMCG products. Contribution of FMCG sector in
every economy is significant. Now, due to globalization, every economy is facing tough
competition. Entries of MNCs and cheaper import have made the situation more difficult. To
carry out the business in this sector, it has become very difficult. Every company has to spend a
large portion of their budget on promotional efforts.

Most of the companies have applied various elements of promotion mix. Promotion mix
elements include advertising, publicity, sales and promotion, personal selling and packaging.
Sales and promotion is one of them and it is our concerned topic. In present competitive situation
most of MNCs had developed sales and promotional strategy in selection of parties, techniques
and managing sales and promotion techniques effectively and efficiently. This strategy provides
competitive advantage to the companies in the market to grow, stabilize and excel in business
performance. Therefore, sales and promotion strategy is very significant for companies to earn
bread and butter. This attracted me to select and study this topic.

Marico is an Indian FMCG company. It was setup in 1991 in Mumbai by Harsh Mariwala.
Marico deals in production of personal care goods, oils and male grooming products too. Marico
is known as a pioneer in most o0f the product categories it operates in. Marico’s leading brands
also retain leadership and highest market share I their respective product domains, like 17%
growth added in Hair Oils segment in last financial year. Marico follows the following core
values in all its business operations: Boundarylessness, opportunity seeking, innovation,
transparency & openness, consumer centric, bias for action, excellence and global outlook.

Marico is one of India’s top FMCG companies focused on health and beauty products. The brand
width in Marico marketing mix deals with hair oil, hair care, edible oil, deodorants, personal
wash and fabric care categories. Marico’s brand portfolio can be divided into two segments, viz.
indian brands and international brands. The Indian brands of Marico include Parachute, Nihar,
Set Wet (deodorants and hair gel), Zatak, Livon, Medicare, Saffola (oil, oats, Active, Fit, Fittify
etc), Coco Soul, Revive instant bleach and Manjal. Internationally, Marico has the brands like
Parachute Advanced Body Lotion in Bangladesh, Boss in Vietnam and Hercules in South Africa.
Brands like Parachute & Saffola are very well known brands in India & also worldwide.

ABOUT COCO SOUL AND SAFFOLA FITTIFY

Coco Soul comes from the house of Marico, maker of the iconic brands Parachute and Saffola
that have served the needs of innumerable consumers both in India and abroad. Coco Soul is
their small contribution to the future. Their endeavour is to create a suite of solutions that will
nourish the needs of their consumers by providing them with the natural goodness that nature
intended. They believe in the power of the coconut since it offers a gamut of benefits that range
from brain development to improving digestive health to regulating metabolism.

COCO SOUL PRODUCTS

At Saffola Fittify Gourmet, they understand that making a choice between a burger and a salad
is a difficult one. They also understand that following a diet could spell the deprivation of tasty
food in the hope of shedding a few pounds. This is a needless challenge and customer shouldn’t
have to undergo.
Their goal is to ensure that the customer seamlessly incorporate a blend of healthy foods into
their lifestyle whilst making sure that they still enjoy their favorite treats. How? They provide a
diverse suite of delectable food products – Hi-Protein Slim Shakes, Hi-Protein MealSoups,
Superfood Moringa Green Tea, and Green Coffee that will seamlessly fit into their regime.

Their products contain natural superfoods so that the customer benefit from healthy ingredients
that nature has to offer, setting them on the path to fitness. Thus by adding rather than
subtracting you do more good to consumer health.

SAFFOLA FITTIFY GOURMET PRODUCTS

 CHAPTER- 2
LEARNING OBJECTIVES OF INTERNSHIP
The main learning objective of sales and promotion is to bring about a change in the demand
pattern of products and services. Basically, sales promotion has three specific objectives. First, it
is meant to provide important marketing information to the potential buyers.

The second objective is to convince and influence the potential buyers through persuasive
measures. Thirdly, sales promotion is meant to act as a powerful tool of competition.

Here are the some major learning objectives that I have witnessed during my internship period :-

1. To introduce new products and services: Sales promotion is often used to motivate
prospective consumers to try new products and services. Dealers are also induced to
introduce new products and services in the market. Usually, free samples are provided
through dealers during such introduction. Similarly, discounts in cash or goods may also
be offered to dealers to stock new products or deal with new services. Free samples, trade
discounts, cash discounts are basically sales promotion measures.

2. To attract new customers: Sales promotion measures also play an important role in
attracting new customers for an organisation. Usually, new customers are those persons
that are won away from other firms. Samples, gifts, prizes, etc. are used to encourage
consumers to try a new brand or shift their patronage to new dealers.

3. To induce existing customers to buy more: Sales promotion devices are most often
used to induce the existing customers of a firm to buy more. Product development,
offering three products at the cost of two, discount coupons, are some of the sales
promotion devices used by firms to motivate the existing buyers to buy more of a specific
product.

4. Help the firm to remain competitive: Most of the companies undertake sales promotion
activities in order to remain in the competitive market. Therefore, in the modern
 competitive world no firm can escape the responsibility of undertaking sales promotion
activities.

5. Encouraging Repurchases: Building of buying habit leads to brand loyalty in most of

the low perceived risk products. The aim is tie the buyer to the product or a store through
incentives. Hence, the manager needs those promotional incentives that ‘tie’ the buyer to
a seller. Coupons have definite role to play in tagging the customer to a product brand.

6. Traffic Building: Traffic building objective is attained by offering incentives like special
sales, weekly specials, retailer coupons and premiums. Very often the retailers use
entertainment events like having author’s autograph copies of their books, and special
attractions placed in shopping malls to attract the consumers entering the retail outlet,
who are likely to make some impulse buying.
 CHAPTER – 3
ABOUT THE COMPANY PROFILE
Marico Limited is one of India's leading consumer products
companies operating in the beauty and wellness space.
Empowered with freedom and opportunity, it work to make
a difference to the lives of all their stakeholders -
members, associates, consumers, investors and the
society at large. Currently present in 25 countries across
emerging markets of Asia and Africa, Marico has nurtured
multiple brands in the categories of hair care, skin care,
edible oils, health foods, male grooming, and fabric care.
Marico's India business markets household brands such
as Parachute, Parachute Advansed, Saffola, Hair & Care,
Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive
among others that add value to the life of 1 in every 3
Indians. The International business offers unique brands
such as Parachute, HairCode, Fiancée, Caivil, Hercules,
Black Chic, Isoplus, Code 10, Ingwe, X-Men and Thuan
Phat that are localized to fulfil the lifestyle needs of our
international consumers. Charting an annual turnover of
INR 63 billion (Financial Year 2017 - 2018) across their
portfolio, Marico's sustainable growth story rests on an
empowering work culture that encourages their members
to take complete ownership and make a difference to the
entire business ecosystem.

WORKING CULTURE OF MARICO

When it comes to work culture, i do not think any other
organisation can come close, the amount of
independence, decision making, learning opportunities
that Marico offers is un imaginable and is of very high
standard. The company takes care of your work life
balance and trains you for various roles.
1. INNOVATION
Experientation and calculated risk taking to
increase success probability of radical pioneering
ideas to get the quantum results.

2. EXCELLENCE
Continous improvement of performance
standatrds and capability building for sustained
long term success
3. OPPORTUNITY SEEKING
Identifying early opportunities signals in the
environment to generate more growth options

4. CONSUMER CENTRIC
Keeping Consumer as a focus and a partner in
creating and delivering solutions

5. GLOBAL OUTLOOK
Semsitivity and adaptability to cultural diversity
and learning from different cultures

6. BOUNDARYLESSNESS
Seeking support and influencing others beyond the
function and organization to achieve a better
outcome without diluting one’s accountability

7. BIAS FOR ACTION

Preference for quick thoughtful action as opposed
to delayed action through analysis
 8. TRANSPARENCY AND OPENNESS
Allowing diversity of opinion through listening
without bias, giving and receiving critic , with
mutual respect and trust for the other

SWOT ANALYSIS OF MARICO

Marico company is known for their strong Indian values and undying commitment to quality and
excellence. Marico is also stated as an example of setting benchmarks in personnel management
practices.

Here are the Strengths, Weaknesses, Opportunities, Threats that are faced by the companies.

STRENGTH : Strengths are those exclusive capacities of a company/organization which give

an edge to the company in an attempt to grab more market, attract more customers and maximize
the profit.

 Strategy: The story of the evolution of Marico is one where strategy has helped a brand to
evolve through a host of successful products which moved from mass markets to niche
markets. Through the right set of strategies, Marico transformed the company from an Indian
company to a global brand by focusing on value-adding products.
 Targeting: Most of Marico’s brands look at niche segments in crowded markets spaces. For
example, Saffolla looks at heart health in the crowded edible oils market, Mediker at the
removal of lice in a shampoo market or Livon at providing smooth hair. All these, as well as
other top-selling products of the company, look at targeting niche needs successfully.
 Diversification: Most of Marcos product lines have been diversifying at a very fast rate. In
the hair care category, the company has moved into categories like hair oil, hair creams, anti-
dandruff creams, shampoos, hair gels, and serums. The brand Saffola which started off as an
edible oil today has salt, wheat flour additive, and even oats. This appetite for diversification
is resulting in the steep growth of the brands.

WEAKNESSES: Weaknesses are used to refer to areas where the business or the brand needs
improvement. Some of the key weaknesses of Marico are :
  Failed products: Marico has had a number of product failures like the Parachute Hot Oil
or the Saffola Snacks. These mistakes have proven to be costly for the company and have
also made it secure losses.
 Inability to build a premium image: Marico has been trying to gain a place in the
premium segments of the market through a number of new product releases and
acquisitions. However, the company has not been able to create a successful impact in the
premium segments as customers largely perceive the brands from Marico as value
brands. These investments are proving to be costly for the company in the long run.
 Too many products launch: Marico has always made it a point to launch more than one
new product every year and the history continues. However currently Marico has too
many products in its portfolio and presence in too many sectors that it is finding it
increasingly difficult to focus and channelize resources into all of them.

OPPORTUNITIES: The potential areas a company could target to achieve better results,
increase its sales and ultimately profit are known as opportunities.

 Growth in new market: Instead of looking at established markets, most of Marico’s

expansion attempts have been into emerging markets like Egypt, Vietnam, Bangladesh
etc. These are markets where there is a likelihood of steep growth in all categories of fast
moving consumer goods.

THREATS: Threats are those factors in the environment which can be detrimental to the growth
of the business.

 Chemical based content: Customers across the world are apprehensive of dangers of the
use of chemical additives in consumables and this has created a shift of preference for
organic products. This will be a challenge in the future for companies in the FMCG
sector.
 Competition: Marico faces a lot of competition from companies like HUL,
P&G, NESTLE, and ITC.

Their vision “COME WIN…….” Has the following meaning:

Their vision “COME WIN….” Has the following meaning: