Name: Kamlesh Prasad (2008 -2010)



Executive Summary:

The bread and biscuits constitutes the largest segments of consumer foods in India. Both Biscuits and Bread are items of mass consumption in our Country. Almost 2 million tons of biscuits are produced in India each year and consumption is growing at 10-12 per cent annually. The per capita consumption of biscuits in the country is about 1.52 kg annually. Contrary to popular belief that biscuits are consumed by the middle and high income groups, it is actually the only nutritious and hygienic food product for children, lower income groups and the rural population. Nearly 50 per cent of biscuits produced are consumed in rural areas and 30 per cent by income groups earning below Rs 750 per month. Every 100 gm of glucose biscuits roughly provides 20 per cent of energy, protein and calcium required by an average adult.

So as to explore the opportunities in these sectors, a large no. of companies are trying to increase their consumer base in these areas. For this they are offering various promotional schemes in order to make their brand familiar to consumers and to have a Competitive edge.

Parle G Industries has made a rapid progress in the variety, quality and quantity of biscuits and baked foods and has become India’s biggest brands and the preeminent food brand of the country. It is equally recognized for its innovative approach to products and marketing.  The company’s offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits the more lifestyle-oriented recently launched ‘Monaco Zabardast Zebra’‘’ Having succeeded in garnering the trust of almost one-third of India's one Parle G lion population and a strong management at the helm means Parle G will continue to dream big on its path of innovation and quality.

This project aims at studying the effect of the various Promotional schemes offered by Parle G during the period of May and June on its overall sale of the products offered in Promotions. The total increase in sales percentage was also tracked.



  • To deliver right SKU & Gift item to right place in right time.
  • To achieve internal customer satisfaction level to 95%.
  • And to increase the consumer base for newly launched product.
  • To penetrate market with greater share of business.
  • To leverage Parle G brand by having association with some other known brand.
  • To counterattack competitor’s strategy.

The consumer promotional offers are based on the principle of elasticity of demand.



As already discussed above, there are certain issues and flaws associated with Sales Promotion, so in order to implement it effectively and efficiently we would like to suggest certain recommendations to the company:

Production department should make efforts to make available all of the product varieties in the depot norm wise. So that each and every variety should be available according to the generated order so as to meet the stock out problem.

I recommend strong coordination between production and the sales department. So that a proper production forecast for each variety can be maintained by the production department.

Proper allocation of the stock from the depot according to the Super stockiest contribution so that neither there is excess stock in one region nor stock outs in other. I also recommend increasing average number of lines so that all the SKUs are available in the market.

Apart from setting overall target for all the SKUs, there should also be individual SKU wise target so that RPDs and UPDs are able to make sales of unfamiliar products also.

To increase the sales margin the price value of the main brand should be relatively higher i.e. around thrice of the Freebie for example instead of  Rs10 pack of 50:50 150G  Freebie Pepper Checker should be given with  Rs15 pack of 50:50.

There should be a system from where different distributors can see the stock position of company and as well of other distributors. It will help the distributor in a way that if some distributors who wants the same. Contests like MERA RPD MAHAAN should be held every quarter.


Researcher encounters many possible sources of error when designing the data collection project. Some of these include: using a poor or inappropriate research design not using experimental designs where possible; using a large scale study instead of a small scale study, or visa-versa; using poor experimental designs, and still others.

To minimize the possible sources of error associated with designing data collection project, the following 5 issues must be given attention first.

  1. The following are the limitations of the study:
  2. The sample size was small and hence the results can have a degree of variation.
  3. The response of the employees in giving information was lukewarm.
  4. Organization’s resistance to share the internal information.
  5. 5) The response obtained was very low due to time constrains on the part of concerned personnel heads of the companies.
  6. 6) The surveys also establish a fact that lots of companies do not want to reveal or share their policies.
  7. The study is restricted only to Delhi. The population size is very small as compare to population size so.



Sales Promotional Offers helps the company to increase the over sales of the product under promotion because consumers tend to buy in ample amount due to small duration of the promotion and feel value for their money.

  • Ø But through these promotional schemes company earns fewer margins.
  • Ø It also helps in widening their consumer base i.e. it attracts new tiers.
  • Ø It creates the brand awareness among the consumers about the newly launched product like Tiger cream.
  • Ø Products which are less popular among the consumers like Pepper Checker are also get Promoted.
  • Ø It helps to increase the repurchase rate of the occasional buyers
  • Ø Since the promotions were designed for rural market and rural market contributes to 70% of the total market hence attracting more consumers. And turn them to loyal users
  • Ø It enhances brand image
  • Ø Since attractive promotion attracts consumers hence retailers push products under promotion rather than competitors products of same kind.
  • Ø Sales promotion also attracts brand switchers who are primarily looking for low price good value of premiums.

Learning’s through Trade Promotions:

  • to persuade the RPDs and UPDs to carry the brand because they are more concentrated in making sales of the given company product so as to get maximum incentives.
  • to persuade the RPDs and UPDs to carry more units than the normal amount as they have to reach the target sale under Mera RPD Mahaan Scheme.
  • to induce RPDs and UPDs to promote the brand by featuring, display, and price reductions so as to attract more consumers.
  • to stimulate RPDs and UPDs and their sales clerks to push the product than competitors products otherwise they wont be able to reach their sales target.
  • Also Attract more RPDs and UPDs to take participate in the contest because of the incentives.


The above article was extracted from dissertations in Marketing, Finance, Human Resources, Strategy, Information Systems by the students from Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

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