A STUDY OF SALES PROMOTION TOOLS IN DABUR FOODS

Synopsis

Distribution Channel Relationship

a study of Sales Promotion tools in
Dabur Foods

TITLE OF THE PROJECT

Distribution Channel Relationship

a study of Sales Promotion tools in Dabur Foods
SUBMITTED TO

ALL INDIA MANAGEMENT ASSOCIATION

CENTRE FOR MANAGEMENT EDUCATION
By
AJIT SINGH
REGISTRATION 420820650

ADDRESS
Guided By

MR. SIDDHARTH MALIK

(UNIT MANAGER - DABUR)
ADDRESS:- PROJECT GUIDE
For the partial fulfillment of

Post Graduate Diploma in Management

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INTRODUCTION
DISTRIBUTION CHANNEL
RELATIONSHIP
Definition:
Distribution (also known as the place variable in the marketing mix, or
the 4 Ps) involves getting the product from the manufacturer to the
ultimate consumer. Distribution is often a much underestimated factor in
marketing. Many marketers fall for the trap that if you make a better
product, consumers will buy it. The problem is that retailers may not be
willing to devote shelf-space to new products. Retailers would often
rather use that shelf-space for existing products have that proven records
of selling.

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Distributors add efficiency by:

Breaking bulkthe consumer can buy small quantities at a time.

Small and modest scale retailers (e.g., the USC bookstore) can buy
modest quantities. This service reduces quantity discrepancy in the
supply-demand relationship between manufacturers and end
customers.

Consolidation and Distribution. It would be highly inconvenient

for customers to have to buy each product at a different store. Most
American consumers today also have limited patience with
specialty stores in most categories. Rather than having to go to one
store to buy produce, one store to buy meat, and other stores for
other household products, there is considerable value in having
everything available in a supermarket.. This reduces costs by
increasing the efficiency with which products can be (1) delivered
and (2) received. Consolidation and distribution services offered
by wholesalers reduce the assortment discrepancy between
manufacturers on the one hand and local retailers and consumers
on the other.

Carrying inventory. This service reduces the temporal

discrepancy between
o

Manufacturers who may need to schedule production

at relatively constant levels and consumers who need
certain products only at certain times (e.g., turkeys
needed mostly at Thanksgiving and Christmas)

Financing. Certain small manufacturers may have difficulty

waiting for payment until goods are sold to the endcustomer. Wholesalers and retailers may negotiate lower
prices from the manufacturer in return for quick payment.

Many of the cost savings associated with having an efficient system of

intermediaries result from specialization. Manufacturers specialize in
what they do wellmanufacturing productswhile others specialize in
handling various phases of the distribution path. Some specialize in
retailingusually selling a large assortment of goods in small quantities
to a large number of end customers. Wholesalers, in turn, specialize in
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moving and goods from numerous manufacturers to a large number of

retailers.
Channel structures vary somewhat by the nature of the product.

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Full service retailers tend dislike intensive distribution.

Low service channel members can "free ride" on full service

sellers.

Manufacturers may be tempted toward intensive

distributionappropriate only for some; may be profitable
in the short run.

Market balance suggests a need for diversity in product

categories where intensive distribution is appropriate.

Service requirements differ by product category.

DABUR:
Dabur was established by Dr. S.K. Burman in Kolkata in 1884 as Dabur
India Ltd. It is the fourth largest company in India with interests in
Health care, Personal care, and Food products. Dabur entered in the Juice
business in the year 1996with the launch of real fruit juice. It consists
mainly of packed fruit juices, cooking paste etc. In 1979 one of the
largest and best equipped production facilities was started near Sahibabad
along with the formation of Dabur Research Foundation (DRF) signaling
the launch of research operation in the pioneering area of health care. For
better operation and management 3 separate divisions were created in
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1996 according to the product mix, namely Health care products division,
Family product division and Dabur ayurvedic specialists limited. In 1997
Dabur enters full scale in the nascent processed foods market with the
creation of the food divison and in 2000 Dabur established its market
leadership status with a turnover of Rs. 1000 Crores. Dabur India
Limited today is the third largest FMCG Company in India after a takeover of Balsara
India Limited and with interests in Health care, Personal care and Food products.
Powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real
are the major contributors to Daburs turnover of Rs.1329 crore.

Research Methodology
AIM OF STUDY:
To carry out the study of the sales promotion techniques
adopted at Dabur Foods in present competitive
environment of Healthcare Industry to help knowing and
reading of the minds of the current generation
professionals regarding their ownership, passion for
winning, people development, consumer focus, team
work, innovation, integrity
OBJECTIVES OF STUDY:
i. To provide innovative products to consumers within
easy reach.
ii. To study the existing strategies followed by the
company like advertising, promotion & marketing
strategies etc.
iii. To check the standards in relation to environmental
protection.

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SCOPE OF STUDY:
The Management will be in a position to work out the strategies in
order to provide efficient sales promotion tools and to increase
market share keeping in mind health hazards issues.
It will help management for more prospective outlet coverage.
It will help management in building good relations with retailers
with different schemes.
It will help in product commercialization.
HYPOTHESIS:
Null Hypothesis:
A Sales Promotion technique is not effective.
Alternate Hypothesis:
Promotion technique is effective.
RATIONALE BEHIND THE STUDY:
Consumer promotion, Trade promotion and Business to
Business promotion tools are very important for every
organization. A mix of all these tools in right
proportionate is essential for an organization to build its
core value in the market. Hiring knowledgeable people
for the job is essential for an employer. But despite of all
this efficient and innovative techniques to be initiated by
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an organization is also important. Most essential for

every organization is to see each and every thing in terms
of safety values as health comes at top priority. So,
company should maintain proper quality standards.
RESEARCH DESIGN:
The project titled A Study Sales Promotion tools At
Dabur Food, Place shall be the result of exploratory
research.
DATA COLLECTION:
The data used for the project is primary as well as
secondary data, as follows:
Sources of primary data Personal Interview
Comparative study with other units of same industry.
Other data available in companys records
Observation

Sources of secondary data

Web sites
SOPs
Magazines
Books.

SAMPLING:
Sample size for the research will be about 50 employee of
hospital.
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Sample Size = 50 Employees

Sample Area =
marketing, finance
consumers.

Moil

personnel, materials,
department and

Duration = one (1) Month

DATA PRESENTATION AND ANALYSIS

Pie Diagrams

Graphs

LIMITATIONS
This study is only limited to some market area and is
not applicable to distant location.
The method of random sampling is suitable for small
populations only.
It does not ensure proportionate representation to
all constituent group of population.
A simple random sample yields cases that are too
widely dispersed and this is practically not possible
to stick to the initial random sample.
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Vague Information
CONCLUSIONS AND RECOMMENDATIONS
The conclusion drawn on the basis of data analysis shall
be presented along with the recommendations and
suggestions
APPENDIX
This will have the questionnaires, which will be design for
the collection of data and other such relevant material .

PLAN OF WORK:
Sr.No
1.

Item
Collection of the primary

Duration( in days)
7

data
2)

Collection of the

secondary data
3)

Typing of the manuscript

4)

Development of analysis

plan
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5)

Drawing conclusions

6)

Drawing suggestions

total

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CHAPTER SCHEME

1)

INTRODUCTION: About Dabur

This chapter deals with the introduction about the

company like its when it was started? What was the
initial plan with which the company came out in market
etc. It also includes its vision and mission.
2)

CHANNEL OF DISTRIBUTION: -

This chapter will include a short introduction of the

about the supply chain management and its supplier
organization relationship.
3)

SELLING PROCESS & MARKETING MIX:-

This chapter will contain about the critique of

selling. It will also give
The description about the marketing mix.
.
4)

SALES PROMOTION TOOLS:-

This will cover all the tools of sales promotion in detail.

5)

EXISTING PROMOTIONAL SCHEMES:11

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6)

DATA ANALYSIS :-

This will include the interpretation and the analysis

of the data that was collected during the study
through pie diagrams and graphs.
7)

ANNEXURE:-

This will include the constraints, recommendations, questionnaire

and bibliography.

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