A STUDY ON

“Marketing Mix”
With reference to

“HERITAGE FOODS”

AProjectReportsubmittedtoANDHRA
UNIVERSITY
in partial fulfillment of the requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
P.ManikanthaSubbarao
Reg.No:118232102009

Undertheguidanceof
Dr. K.Hari Hara Raju
MBA; Ph.D; P.D.F; D.Litt
 DEPARTMENT OF MANAGEMENT STUDIES

(ApprovedbyAICTE&AffiliatedtoAU)
Gambheeram, Anandapuram Mandal,
VISAKHAPATNAM

(2018– 2020)

CERTIFICATE
Thisistocertifythattheprojectentitled“MARKETING MIX atHERITAGE FOODS
“isthebonafiderecordofworkdonebyP.ManikanthaSubbarao,Reg.No:118232102009un
dermyguidance during the period (2018 – 2020) in partial fulfillment of the
requirement for the award of
theDegreeofMASTEROFBUSINESSADMINISTRATIONinPYDAHCOLLEGEOFE
NGINEERINGANDTECHNOLOGYaffiliatedtoAU

Dr. V.ChiranjeeviRao Dr. K.Hari Hara Raju

Head oftheDepartment ProjectGuide

 External Examiner

DECLARATION

Iherebydeclarethattheprojectentitled“MARKETING MIX at
HERITAGE FOODS, submittedtoANDHRA UNIVERSITYisa
bonafideworkdonebymeinpartialfulfillmentfortheawardofDegreeofMa
stersof
BusinessAdministration.Thisprojectreportismyownanditisneithersub
mittedto any other Institution/University for the award of any degree
or diploma and nor publishedbefore.

Place: Visakhapatnam

Date :
 ACKNOWLEDGEMENT

IwouldliketoexpressmysincerethankstoDr.SSarabandi,Directorof
MBA, andDr. V.ChiranjeeviRao.HeadoftheDepartmentfortheir
constructive cooperation and valuable guidance throughout the course
and also duringthe projectwork.

I amgrateful to K. SUNILKUMAR, MANAGER-HR(PUBLIC

RELATIONS)for giving me an opportunity to do this project and I
thank all our faculty members of the college who have helped me to
finish my project on time.

Iexpressmythankstomyparents,andfriendswhohelpedandsuppo
rtedmea great extent to complete this project. Further, I thank the
Almighty in bestowing his
blessingsonmeforsuccessfulcompletionofmystudies.

P.ManikanthaSubbarao

Reg.No:118232102009
 INDEX

Introduction 1

Need and Importance 7

Objectives 8

Scope of the Study. 9

Methodology & Database. 10

Chapter 2. 14

Company Profile 17

Chapter 3

Review of Literature. 33

Chapter 4

Data Interpretation & Analysis 50

Chapter 5

Findings. 71

Suggestions. 73

Conclusion. 74

Annexure. 75

1
 Bibliography. 79

CHAPTER-I

INTRODUCTION

2
 INTRODUCTION

"As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world and
put it at the service of our ultimate user: our customer."

Marketing mix

The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing
Association presidential address. However, this was actually a reformulation of an earlier
idea by his associate, James Culliton, who in 1948 described the role of the marketing
manager as a "mixer of ingredients", who sometimes follows recipes prepared by others,
sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from
immediately available ingredients, and at other times invents new ingredients no one else has
tried. A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960,
which has seen wide use.

Four P's

Elements of the marketing mix are often referred to as the "Four P's", a phrase used since the
1960's

 Product - It is a tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products are
service based like the tourism industry& the hotel industry or codes-based products
like cellphone load and credits. Typical examples of a mass produced tangible object
are the motor car and the disposable razor. A less obvious but ubiquitous mass
produced service is a computer operating system. Packaging also needs to be taken
into consideration. Every product is subject to a life-cycle including a growth phase
followed by an eventual period of decline as the product approaches market

3
  saturation. To retain its competitiveness in the market, product differentiation is
required and is one of the strategies to differentiate a product from its competitors.

 Price – The price is the amount a customer pays for the product. The business may
increase or decrease the price of product if other stores have the same product.

 Place – Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as
virtual stores on the Internet.

 Promotion represents all of the communications that a marketeer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations,
personal selling and sales promotion. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in film
promotion. Advertising covers any communication that is paid for, from cinema
commercials, radio and Internet adverts through print media and billboards. Public
relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word of mouth is any apparently informal communication about the product
by ordinary individuals, satisfied customers or people specifically engaged to create
word of mouth momentum. Sales staff often plays an important role in word of mouth
and Public Relations (see Product above).

Any organization, before introducing its products or services into the market; conducts a
market survey. The sequence of all 'P's as above is very much important in every stage of
product life cycle Introduction, Growth, Maturity and Decline.

4
Extended Marketing Mix (3 P's)

More recently, three more Ps have been added to the marketing mix namely People, Process
and Physical Evidence. This marketing mix is known as Extended Marketing Mix.

 People: All people involved with consumption of a service are important. For
example workers, management, consumers etc. It also defines the market
segmentation, mainly demographic segmentation. It addresses particular class of
people for whom the product or service is made available.

 Process: Procedure, mechanism and flow of activities by which services are used.
Also the 'Procedure' how the product will reach the end user.

 Physical Evidence: The marketing strategy should include effectively communicating

their satisfaction to potential customers.

Four Cs

Robert F. Lauterborn proposed a four Cs classification in 1993. The Four Cs model is more
consumer-oriented and attempts to better fit the movement from mass marketing to niche
marketing. The Product part of the Four Ps model is replaced by Consumer or Consumer
Models, shifting the focus to satisfying the consumer needs. Another C replacement for
Product is Capable. By defining offerings as individual capabilities that when combined and
focused to a specific industry, creates a custom solution rather than pigeon-holing a customer
into a product. Pricing is replaced by Cost reflecting the total cost of ownership. Many
factors affect Cost, including but not limited to the customer's cost to change or implement
the new product or service and the customer's cost for not selecting a competitor's product or
service. Placement is replaced by Convenience. With the rise of internet and hybrid models
of purchasing, Place is becoming less relevant. Convenience takes into account the ease of
5
buying the product, finding the product, finding information about the product, and several
other factors. Finally, the Promotions feature is replaced by Communication which
represents a broader focus than simply Promotions. Communications can include advertising,
public relations, personal selling, viral advertising, and any form of communication between
the firm and the consumer.

Promotion is true that products are manufactured to satisfy the needs of the
consumers.. But alone is not enough. Today the responsibility of the manufacturers does not
cease with physical production whatever may be the nature of the product. The present day
marketers are consumer oriented where it is the duty of the manufacturers to know from
where, when, how and what price the products would be available. Successful marketing
consists in offering the right product of the right price of the right place (and time) with right
promotion.

In course of time, various activities came into vogue designed particularly to help easy
sale of goods. These activities commonly known as promotional Mix. The marketing
communication Mix also called as the “Promotion Mix” consists of four major tools.

1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling

Generally marketing communication is undertaken to pass on the message of a

product or sale to the ultimate consumers. Thus, there are three elements in this process.

The purpose of advertising is motivating but to sell something a product or service,

the real objective of advertising is effective communication between producers and
consumers. In other words the ultimate purpose all advertising is “Increased awareness”
list of the following specific objectives of advertising.
6
 The process of selling is ensured by personal selling supposed by advertising and sales
promotion. Of these three methods personal selling occupies the predominant role mainly
because of the personal element involves. It may be described as a personal source
rendered to the community in connection with marketing of goods.

It is a marketing process with which consumers are personally persuaded to by goods and
services offered by a manufacturer. The most powerful element in the promotional mix is
salesman ship, is not something very new. Even centuraries ago salesman ship was
practiced in Greece and Rome. According to Peter Drucker Cyrus Mecornie was the first
man to use modern technique of selling.

Features:

1. It helps to establish a cordial and abiding relationship between the organization and its
customers.
2. It is a creative art. It creates wants a new.
3. It is a science, in the sense that “One human mind influences another human mind”.
4. Personal selling imparts knowledge and technical assistance to the consumers.
Promotion includes all those functions, which have to do with the marketing of a
product all other activities designed to increase and expand the market. But it is clearly
distinguished from advertising and personal selling, through basic aim or all the three is
one and the same viz., to increase the volume of sales.

“Sales promotion in a specific sense refers to those sales activities that supplement
both personal selling and advertising and co-ordination ate them and help to make them
effective, such as displays, shows and expositions, demonstrations and other non
recurrent selling efforts not in the ordinary routine”.

7
 Evaluation of Sales Promotion:

Two decades ago, there was no agreement among the marketing people that there
was a separate sales promotion function. In those days, promotion was a “share-
run to gain a short run good”.

The importance of sales promotion is modern marketing has increased mainly an

account of its ability in promoting sales and preparing the ground for future
expansion. The main objective of sales promotion is to attract the prospective
buyer towards the product.

PUBLICITY

The publicity is derived as “Any form of commercially significant news about a

product, and institution, a service, or a person published I a space or radio i.e. not paid for
by the sponsor”. In short advertisement is paid form of publicity. It is to be noted here that
though the terms ’ADVERTISING ‘AND ‘Publicity’ or differences in the field of
marketing, both are used interchangeably.

The media are broadly classified into direct indirect. Direct method of advertising
refers to such methods used by the advertiser with which he could establish a direct
contact with the prospects. Most of the media are indirect in nature EX: Free Publicity,
cinema, etc.

8
 Need And Importance the Study:

The increasing competition in business is the reason to pay much more attention to
satisfying customers. It may help the market to notice role of customer satisfaction in
the overall context of product of service development and management.

Customers do not buy services, they buy satisfaction. Hence marketers must
be clear about the satisfaction the customer is seeking and check out whether the
customers are getting the actual satisfaction. This study helps the marketers to take
necessary steps to gain the competitive advantage over the competitors.

The study helps to predict further behavior intentions of the customers such as
intention to re-purchase, intention to increase the usage, intention to recommend the
product and Service to others. Today the customers have wide variety of motorcycles
to chose.

If the satisfaction level of the customer goes down he may switch over to other
brand. Ultimately the company loses its actual customers. This study helps the
marketer to take necessary steps to overcome this problem and retain in the increase
of customer loyalty.

9
 Objectives of the Study:

 To study the promotional activities offered by Heritage Foods (India)

Limited.
 To identify the impact of sales in the market by using promotional strategies of
Heritage Foods (India) Limited.
 To study the influence of schemes offered by firm on sales.
 To study the customer’s awareness towards the after sale services offered to
him or her.

Scope of The Study:

The area of study is considered to be in two districts. Those are Hyderabad and Ranga Reddy
districts.

10
 In the present study an attempt has been made to know the actual
implementation of Communication Process as management techniques in general and some
other aspects such as awareness of the workers, effectiveness of the performance appraisal
system in particular.
Human resource projections are valid on appraisals. By improving job skills,
the employees have lot of scope for development and prepare themselves for higher
responsibilities.

METHODOLOGY AND DATA BASE

a) Source of data:
1) Primary Data:
The primary data is collected through questionnaires from the customers.
2) Secondary Data:
The secondary data is collected from the books, journals and internet.
Data collected method:
The data is collected through close ended questionnaire.
b) Sample size:
1. The sample size of the survey (N) is 100.
2. Samples are collected customers of showroom.
11
 3. The age limit of the customers is in between 20-55.
4. The customers will be randomly selected.

c) Tools & Techniques:

For analyzing the data statistical tables, percentages, and
bar-diagrams will be used.

d) Further scope of study;

The topic of promotional activities is vast there is further scope
of study for eg; Advertising, sales promotion etc.

e) Kind of research:
The research study will be carried out in qualitative and
quantitative research approaches.

The research has to be done in very efficient way; the frame work for collecting
data is called research design.
The statistical involves the study of a few factors in large number of cased.
The contents of research design are
i) Data collected method.
ii) Research instrument.

f) Survey approach:
The survey will be conducted through close ended
questionnaire. This questionnaire will contain the multiple choice questions; each
question will be given options. The collection of data in survey follows two types
they are
i) Primary data (first hand data).
ii) Secondary data (used data).

Period Of The Study:

12
 Since so many years Heritage Foods (India) LimitedHyderabad has been following the
same procedure of Communication Process for their executives and employees and for the
study of my project last one-year data has collected on Promotional Activates..

Limitations to the study:

 Primary data analysis only depended on the respondents.

 Process of study/survey is limited only to some customers.
 Survey will be conducted for the period of 45 days only.

CHAPTER-II

INDUSTRIAL PROFILE&COMAPANY PROFILE

13
 HISTORY OF INDIAN FOODS INDUSTRY

Retailing is one of the pillars of the economy in India and accounts for 35% of GDP.

The retail industry is divided into organised and unorganised sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.
Organised retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganised retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.

Most Indian shopping takes place in open markets and millions of independent grocery shops
called kirana. Organized retail such supermarkets accounts for just 4% of the market as of
2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty
regulations such as "signboard licences" and "anti-hoarding measures" may have to be

14
complied before a store can open doors. There are taxes for moving goods to states, from
states, and even within states.

Growth

An increasing number of people in India are turning to the services sector for employment
due to the relative low compensation offered by the traditional agriculture and manufacturing
sectors. The organized retail market is growing at 35 percent annually while growth of
unorganized retail sector is pegged at 6 percent.

The Retail Business in India is currently at the point of inflection. Rapid change with
investments to the tune of US $ 25 billion is being planned by several Indian and
multinational companies in the next 5 years. It is a huge industry in terms of size and
according to management consulting firm Technopak Advisors Pvt. Ltd., it is valued at about
US $ 350 billion. Organised retail is expected to garner about 16-18 percent of the total retail
market (US $ 65-75 billion) in the next 5 years.

India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The predictions for
2008 is 7.9%. The enormous growth of the retail industry has created a huge demand for real
estate. Property developers are creating retail real estate at an aggressive pace and by 2010,
300 malls are estimated to be operational in the country.

With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India
will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to today.
Current projections on construction point to a supply of just 200,000,000 sq ft
(19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled,
at a cost of US$15–18 billion.

15
According to the Icrier report, the retail business in India is estimated to grow at 13% from
$322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is expected
to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to
$ 496 billion in 2011-12.

The Indian Retail Market

Indian market has high complexities in terms of a wide geographic spread and distinct
consumer preferences varying by each region necessitating a need for localization even
within the geographic zones. India has highest number of outlets per person (7 per thousand)
Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail
density of 6 percent is highest in the world. 1.8 million households in India have an annual
income of over 45 lakh

Delving further into consumer buying habits, purchase decisions can be separated into two
categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators, washing
machines, dishwashers, microwave ovens and DVD players fall in the status category.
Indulgence-oriented products include plasma TVs, state-of-the-art home theatre systems,
iPods, high-end digital cameras, camcorders, and gaming consoles. Consumers in the status
category buy because they need to maintain a position in their social group. Indulgence-
oriented buying happens with those who want to enjoy life better with products that meet
their requirements. When it comes to the festival shopping season, it is primarily the status-
oriented segment that contributes largely to the retailer’s cash register.

While India presents a large market opportunity given the number and increasing purchasing
power of consumers, there are significant challenges as well given that over 90% of trade is
conducted through independent local stores. Challenges include: Geographically dispersed
population, small ticket sizes, complex distribution network, little use of IT systems,
limitations of mass media and existence of counterfeit goods.

Major Indian Retailers

16
Indian apparel retailers are increasing their brand presence overseas, particularly in
developed markets. While most have identified a gap in countries in West Asia and Africa,
some majors are also looking at the US and Europe. Arvind Brands, Madura Garments,
Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans
through the distribution route and standalone stores as well. Another denim wear brand,
Spykar, which is now moving towards becoming a casualwear lifestyle brand, has launched
its store in Melbourne recently. It plans to open three stores in London by 2008-end.

The low-intensity entry of the diversified Mahindra Group into retail is unique because it
plans to focus on lifestyle products. The Mahindra Group is the fourth large Indian business
group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group,
and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and
groceries, or a range of products, or both.

 Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe
Deposit Lockers

 PGC Retail -T-Mart IndiaSwitcher , Respect India , Grand India Bazaar ,etc.,

 REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super

 RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s
Super, Daily & Fresh

 Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion

Station, Brand Factory, Depot, aLL, E-Zone etc.

 The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan
Industries with World of Titans showrooms, Tanishq outlets, Chroma.

 K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit

17
  Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International
Franchise brand stores.

 Pyramid Retail-Formats: Pyramid Megastore, TruMart

 Nilgiri’s-Formats: Nilgiris’ supermarket chain

 Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.

 Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

 Vishal Retail Group-Formats: Vishal Mega Mart

 BPCL-Formats: In & Out

 Reliance Retail-Formats: Reliance Fresh

 Reliance ADAG Retail-Format: Reliance World

 German Metro Cash & Carry

 Shoprite Holdings-Formats: Shoprite Hyper

 Paritala stores bazar: honey shine stores

 Aditya Birla Group - more Outlets

 Kapas- Cotton garment outlets

18
 COMAPANY PROFILE

19
Heritage at a Glance:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest
growing Private Sector Enterprises in India, with four-business divisions viz., Dairy, Retail,
Agri, and Bakery under its flagship Company Heritage Foods (India) Limited (HFIL). The
annual turnover of Heritage Foods crossed Rs.1096 crores in 2010-11.

Presently Heritage’s milk products have market presence in Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu and Maharastra and its retail stores across Bangalore, Chennai and
Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are
backbone to retail operations.

In the year 1994, HFIL went to Public Issue to raise resources, which was
oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code:
519552) and NSE (Stock Code: HERITGFOOD)

About the founder:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,

Progressive and Visionary Leaders of the 21st Century. With an objective of bringing
prosperity in to the rural families through co-operative efforts, he along with his relatives,
friends and associates promoted Heritage Foods in the year 1992 taking opportunity from the
Industrial Policy, 1991 of the Government of India and he has been successful in his
endeavour.

20
 At present, Heritage has market presence in all the states of South India. More
than three thousand villages and five lakh farmers are being benefited in these states. On the
other side, Heritage is serving more than 6 lakh customers needs, employing more than 700
employees and generating indirectly employment opportunity to more than 5000 people.
Beginning with a humble annual turnover of just Rs.4.38 crores in 1993-94, the sales
turnover has reached close to Rs.300 crores during the financial year 2005-2006.

Sri Naidu held various coveted and honorable positions including Chief
Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &
Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small Industries
Development Corporation, and Chairman of KarshakaParishad.

Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), "
Business Person of the Year " (Economic Times), and " IT Indian of the Millennium " ( India
Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the
year 2000 by the Business Week magazine for being an unflinching proponent of technology
and for his drive to transform the State of Andhra Pradesh .

Forward looking statements:

“We have grown, and intended to grow, focusing on harnessing our

willingness to experiment and innovate our ability to transform our drive towards excellence
in quality, our people first attitude and our strategic direction.

Mission

Bringing prosperity into rural families of India through co-operative efforts and providing
customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food
products.
21
Vision

To be a progressive billion dollar organization with a pan India foot print by 2015.
To achieve this by delighting customers with "Fresh and Healthy" food products, those are a
benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming community
through our unique "Relationship Farming" Model.

To be a preferred employer by nurturing entrepreneurship, managing career aspirations and

providing innovative avenues for enhanced employee prosperity.

Heritage Slogan:

When you are healthy, we are healthy

When you are happy, we are happy

We live for your "HEALTH & HAPPINESS"

Quality policy of HFIL:

We are committed to achieve customer satisfaction through hygienically processed

and packed Milk and Milk Products. We strive to continually improve the quality of our
products and services through upgradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual commitment to
itself, to always produce and provide quality products with continuous efforts to improve the
process and environment.

22
 Adhering to its moral commitment and its continuous drive to achieve
excellence in quality of Milk, Milk products & Systems, Heritage has always been laying
emphasis on not only reviewing & re-defining quality standards, but also in implementing
them successfully. All activities of Processing, Quality control, Purchase, Stores, Marketing
and Training have been documented with detailed quality plans in each of the departments.

Today Heritage feels that the ISO certificate is not only an epitome of achieved
targets, but also a scale to identify & reckon, what is yet to be achieved on a continuous
basis. Though, it is a beginning, Heritage has initiated the process of standardizing and
adopting similar quality systems at most of its other plants.

Commitments:

Milk Producers:

Change in life styles of rural families in terms of:

 Regular high income through co-operative efforts.

 Women participation in income generation .

 Saved from price exploitation by un-organized sector .

 Remunerative prices for milk .

 Increase of milk productivity through input and extension activities

 Shift from risky agriculture to dairy farming

23
  Heritage

 Financial support for purchase of cattle; insuring cattle

 Establishment of Cattle Health Care Centers

 Supplying high quality Cattle feed

 Organizing "RythuSadasu" and Video programmes for educating the farmers in dairy
farming

Customers:

 Timely Supply of Quality & Healthy Products

 Supply high quality milk and milk products at affordable prices

 Focused on Nutritional Foods

 More than 4 lakh happy customers

 High customer satisfaction

 24 hours help lines ( <10 complaints a day)

Employees:

 Enhancing the Technical and Managerial skills of Employees through continuous

training and development

 Best appraisal systems to motivate employees

24
  Incentive, bonus and reward systems to encourage employees

 Heritage forges ahead with a motto "add value to everything you do"

Returns:

Consistent Dividend Payment since Public Issue (January 1995)

Service:

 Highest impotence to investor service; no notice from any regulatory authority since
2001 in respect of investor service

 Very transparent disclosures

Suppliers:

Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit flavoured
drinks Alfa-Laval: supplier of high-end machinery and technical support Focusing on Tetra
pack association for products package.

Society:

 Potential Employment Generation

More than 3500 employees are working with heritage

More than 9500 procurement agents got self employment in rural areas

More than 5000 sales agents associated with the company

 Employment for the youth by providing financial and animal husbandry support for
establishing MINI DAIRIES

25
  Producing highly health conscious products for the society

Qualities of management principles:

1. Customer focus to understand and meet the changing needs and expectations of
customers.

2. People involvement to promote team work and tap the potential of people.

3. Leadership to set constancy of purpose and promote quality culture trough out the
organization.

4. Process approach to assess the efficiency and effectiveness of each process.

5. Systems approach to understand the sequence and interaction of process.

6. Factual approach to decision making to ensure its accuracy.

7. Continual improvement processes for improved business results.

8. Development of suppliers to get right product and services in right time at right place.

Product/Market wise performance:

The total turnover is Rs 341 Crores during the financial year 2006-07 against
the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk & milk
products in the states of A.P, Karnataka, Kerala & Tamil nadu.

During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against
Rs.24525.23 lakhs in the previous year. The sales of miik products including bulk sales of
cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.

Milk sales:

26
 23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07 against
1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in 2006-07
against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49 LLPD in 2006-07
against 5.16 LLPD. Flavoured milk sales recorded a growth rate of 77% over 2005-06.
Butter milk sales have gone up by 45% over 2005-06.

Outlook:

Considering the growth potential in the liquid milk market, the company has
drawn plans to increase its market share in the existing markets and to enter into new
markets there by doubling revenues in dairy business in the next 3 years. To achieve this
object, company is undertaking major expansion in dairy business by inverting over Rs20
crores during 2006-07 and over Rs10 crores during the current year to strengthen the milk
procurement.

CODE OF CONDUCT AND ETHICS

FOR DIRECTORS & SENIOR MANAGEMENT

PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has
been adopted by the Board of Directors of Heritage Foods (India) Limited (herein after
referred to as "the Company") , to be applicable to all Directors and all members of senior
management i.e., personnel who are a part of the core management team and including all
functional heads of the company (herein after referred to as the 'Members') with effect from
December 23, 2005.

This Code helps the Members maintain good standards of business conduct, foster ethical
and moral conduct and promote a culture of honesty and accountability, so as to set an
example to others in the company.

The Code is not an all-inclusive comprehensive policy and cannot anticipate every situation

27
that may arise in the course of the company's business. The Members are expected to bear in
mind the essence and substance of the Code in all their dealings / transactions with the
Company.

STRICT COMPLIANCE
All Members shall act within the bounds of the authority conferred upon them
and undertake the duty to make and enact informed, judicious and harmonious decisions and
policies in the best interests of the Company and its shareholders / stakeholders.

With a view to maintain the high standards the Company requires, the following rules/ code
of conduct to be observed in all activities. For the purpose of the code, the Company
appoints the Company Secretary as compliance officer, who will be available to Members to
answer questions and help them in complying with the code.

CONFLICT OF INTEREST
The term "Conflict of interest" pertains to situations in which financial or
personal considerations may compromise, or have the appearance of compromising judgment
of professional activities. A conflict of interests exists where the interests or benefits of one
person or entity conflicts with the interests or benefits of the other person/entity/company.

All Members should not engage in any business, relationship or activity, which may be in
conflict with the interest of the Company. Conflict may arise in many situations. It is not
possible to cover every possible conflict situation and at times, it will not be easy to
distinguish between the proper and improper activities. Set forth below, are some of the
common circumstances that may lead to conflict of interest, actual or potential.
i. Members should not engage in any activity / employment that interfere with your
performance or responsibility to the Company or otherwise in conflict with or prejudicial
to the interests of the Company.
28
ii. As a general policy, Members should avoid conducting business with a relative or with a
firm / Company in which a relative / related party is associated in a significant role /
position.
iii. Whenever/ wherever the related party transaction is unavoidable Members will fully
disclose their interest in the transaction to the Board or to the CEO of the Company and
due records for such transactions will be maintained as per the statutory requirements.
HONESTY AND INTEGRITY
All Members shall conduct their activities, on behalf of the Company and on
their personal behalf, with honesty, integrity and fairness. They will act in good faith, with
responsibility, due care, competence and diligence, allowing independent judgment to their
subordinates. Members shall act in the best interests of the Company and fulfil their fiduciary
obligations.

POLICY OF BUSINESS RELATIONSHIP

The Company will conduct business legally and ethically. The quality of
company's products and the efficiency of its services at the most competitive price is the
greatest tool in conducting the business of the company. Profits do not justify unfair/
unethical practices. All Members should uphold the highest standards of integrity in all the
business relationships.

INTELLECTUAL PROPERTY POLICY

All Members have utmost obligation to identify and protect the intellectual
properties, trade secrets and confidential information owned by the Company and its clients
or associates as it is critical to the success of the company. "Intellectual Property Rights"
(IPR) means generally patented or potentially patentable inventions, trademarks,
copyrightable subject matters and trade secrets.

CORPORTE OPPORTUNITIES

29
 Members owe a duty to the Company to advance its legitimate interests
when the opportunity to do so arises and are expressly prohibited from improper use of
information / property or taking improper advantage of their position.

PREVENTION OF INSIDER TRADING

Insider trading is prohibited both by the Law as well as by the company
policy .Insider trading generally involves the act of subscribing to or buying or selling of the
Company's securities, when in possession of any Unpublished Price Sensitive Information
about the company.

"Price sensitive information " is such information, which relates directly or indirectly to the
company and which if published is likely to materially affect the price of securities of the
Company. It is important to note that both positive and negative information could be price
sensitive.
Members shall not derive benefit or assist others to derive benefit or assist them to derive
benefit on their behalf by giving investment advice from the available access to and
possession of information about the Company, which is not in public domain and thus
constituting insider information. Members shall comply with the prevention of insider
trading guidelines as issued by Securities Exchange Board of India (SEBI).

SECURITIES MARKET POLICY

The Company is committed to comply with securities laws in all the markets
in which the Company's securities are listed. The company prohibits fraudulent and unfair
trade practices with regard to the securities of the Company by all Members.
CONFIDENTIALITY OF INFORMATION POLICY
The Company's confidential information is a valuable asset. Members shall
understand that protection of all confidential information is essential. Members should
undertake and be committed to protecting business and personal information of confidential
30
nature obtained from clients, associates and employees.

Any information concerning the Company's business, its customers, suppliers etc which is
not in the public domain and to which the Members have access or possesses such
information, shall be considered confidential and held in confidence, unless authorized to
disclose or such disclosure is required as a matter of law. Members shall not provide any
information either formally or informally, to the press or any other publicity media, unless
specially authorized to do so.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS

Members should comply with all applicable laws, rules, and regulations, both
in letter and sprit. In order to assist the Company in promoting the lawful and ethical
behaviour, Members have to report any possible violation of law, rules, regulations or the
code of conduct to the Company Secretary
.
PROTECTION AND PROPER USE OF COMPANY’S ASSETS
All Members have the responsibility to protect the assets of the company,
ensure optimal utilization of assets and to report and record all transactions. Members shall
protect the Company's assets from loss, damages, misuse or theft and assets may only be
used for business purposes and other purposes specifically approved by management and
must never be used for any personal or illegal purposes.

COMPETITION POLICY
The Company shall compete only in an ethical and legitimate manner. It
prohibits all actions that are anti- competitive or otherwise contrary to laws that govern
competitive practices in the market place. Members shall uphold the same.

31
SELECTING SUPPLIERS
The Company's suppliers make significant contribution to its success. The
Company's policy is to purchase / avail supplies based on need, quality, service, price and
other commercial terms and conditions. Suppliers should be selected based on merit, price,
quality and performances. The Company's policy is to select significant suppliers through a
competitive bid process wherever possible. Under no circumstance should the Company or
its employee, agent or contractor attempt to coerce suppliers in any way.

ENVIRONMENT, HEALTH AND SAFETY POLICY

Members shall take environmental consciousness a step further as a company
and contribute to preserving nature as well as safety measures in own respective work areas.
All Members are responsible for conducting safe and environmentally sound operations; this
is in the interest of our own well-being and the quality of life of others. Members shall abide
by this policy.

ELIMINATION OF CHILD LABOUR

It is the Company's policy not to support child labour. The Company is
committed to implement the provisions of the Child Labour (Prohibition and Regulation)
Act, 1986. To, promote this the Company encourages its suppliers also to work towards a no
child labour policy in their industries. Members shall strictly observe that no child labour is
employed in the company.

ABOLITION OF FORCED LABOUR

The Company strictly prohibits forced or compulsory labour. The Company is
committed to ensuring that employees enter into employment and stay on in the Company of
their own free will. Members shall uphold this policy.

32
GIFTS & DONATIONS
No Member shall receive or offer, directly or indirectly, any gifts,
donations, remuneration, hospitality, illegal payments and comparable benefits which are
intended or perceived to be intended to obtain business (or uncompetitive) favours or
decision for the conduct of the business. Normal gifts of commemorative nature for special
events may be accepted and reported to the Board.

OTHER DIRECTORSHIPS
The Company feels that serving on the Board of directors of other companies
may raise substantial concerns about potential conflict of interest. Therefore all Directors
shall report / disclose such relationships to the Board on an annual basis. It is felt that service
on the Board of a direct competitor is not in the interest of the Company. Hence all the
Directors are barred in accepting such position without the concurrence of the Board.

ACCOUNTABILITY
The Board of Directors (BOD) shall oversee the Company's adherence to
ethical and legal standards. All employees and members of the BOD shall undertake to stop
or prevent actions that could harm customers or reputation of the Company and to report
such actions as soon as they occur to take corrective steps and see that such actions are not
repeated.

COMPLIANCE WITH CODE OF CONDUCT

Each Director and senior management personnel shall adhere to this code of
conduct and affirm compliance with the code on an annual basis as per the Annexure to the
Code. Violation of this Code will lead to appropriate disciplinary action.

WAIVER OF THE CODE

33
 Any waiver of the applicability of the Code or waiver of application of any
provision of the Code to any Member shall be approved by the Board of Directors and
disclosed as required by Law or SEBI / Stock Exchange regulations.

BRANCHES OF HFIL:

HFIL has 3 wings. They are

1. Dairy

2. Retail

3. Agribusiness

1. Dairy:

It is the major wing among all. The dairy products manufactured by HFIL are

Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.

2. Retail:

In the retail sector HFIL has outlets namely “Fresh@”. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.

In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4

respectively are there. Totally there are 26 retail shops are there.

Fresh@ is a unique chain of retail stores, designed to meet the needs of the
modern Indian consumer. The store rediscovers the taste of nature every day making grocery
shopping a never before experience.

34
 The unique& distinctive feature of Fresh@ is that it offers the widest range of
fresh fruits and vegetables which are directly hand picked from the farms. Freshness lies in
their merchandise and the customers are always welcomed with fresh fruits and vegetables
no matter what what time they walk in.

3. Agri Business:

In this business HFIL employees will go to farmers and have a deal with them.
Those farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL will
transport the goods to retail outlets.

The agricultural professors will examine which area is suitable to import

vegetables from and also examine the vegetables, pulses and fruits in the lab. And finally
they report to the Head-Agribusiness. Representatives as per the instructions given by the
agri professors will approach the farmers directly and make a deal with them. It is the
process of registering the farmers.

Heritage FinleaseHeritage Finlease Limited was incorporated under the companies Act
1956 on 23rd of February 1996 and commenced business from 2nd day of April 1996. The
Registered office is located at 6-3-541/c Punjagutta, Hyderabad-500082.

The following are the directors of the company:

Sri D.Seetharamaiah
Smt. N. Bhuvaneswari
35
Sri M. SivaramaVaraprasad
Sri R.S.Bakkannavar

The Company was registered as Non Banking Financial Institution on 5th Day of December
1998 by Reserve Bank of India as a Deposit Taking Company under the category Hire
Purchase Company.
At Present the company is allowing Dairy Loans to Small Farmers under Tie up arrangement
with Heritage Foods (India) Limited. The Company has been earning profits from inception
and functioning in conformity with the rules and directions of Reserve Bank of India.

36
 CHAPTER-III
REVIEW OF LITERATURE

The Marketing Mix

The 4 P's of Marketing)

The major marketing management decisions can be classified in one of the following four
categories:

 Product

 Price

 Place (distribution) z

 Promotion

These variables are known as the marketing mix or the 4 P's of marketing. They are the
variables that marketing managers can control in order to best satisfy customers in the target
market. The marketing mix is portrayed in the following diagram:

The firm attempts to generate a positive response in the target market by blending these four
marketing mix variables in an optimal manner.

37
Product

The product is the physical product or service offered to the consumer. In the case of
physical products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty,
etc.

Price

Pricing decisions should take into account profit margins and the probable pricing response
of competitors. Pricing includes not only the list price, but also discounts, financing, and
other options such as leasing.

Place

Place (or placement) decisions are those associated with channels of distribution that serve as
the means for getting the product to the target customers. The distribution system performs
transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection, logistics, and
levels of service.

Promotion

Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis should
be performed when making promotion decisions. It is useful to know the value of a customer
in order to determine whether additional customers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc.

38
A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list of some of the
aspects of each of the 4Ps

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality List price Channel members Advertising

Appearance Discounts Channel motivation Personal selling

Quality Allowances Market coverage Public relations

Packaging Financing Locations Message

Brand Leasing options Logistics Media

39
 Warranty Service levels Budget

Service/Support

The increasing competition in business to pay much more attention to satisfying customers.
It may help the marketer to notice role of customer satisfaction in the overall context of
product of service development and management.

Customers do not buy services, they bys satisfaction. Hence marketers must be clear about
the satisfaction the customer is seeking and check out whether the customer are getting the
actual satisfaction.

This study helps the marketers to take necessary steps to gain the competitive advantage over
the competitors.

The study helps to predict further behavior intentions of the customers such as intention to
Re-purchase, intention to increase the usage, intention to recommend the product and service
to others. Today the customers have wide variety of motorcycles to chose. If the satisfaction
level of the customer goes down he may switchover to other brand. Ultimately the company
loses its actual customers. This study helps the marketer to take necessary steps to overcome
this problem and retain its actual customers.

1. Can be major source of revenue, although it often receives too little management
attention.
2. Is essential for achieving customer satisfaction and good long-term relationship-as
identified by a number of researches.
3. Can provide a competitive advantage.
4. Play a role in increasing the success rate of new products introduced.

40
 5. Needs to be fully evaluated during new product development, as good product
design can make customer support more efficient and cost-effective. Increased
competition within many industries has led to increased attention on customer
service.

Various studies indicate that upset customers may have big effect on sales of company.
Therefore all dealers try to put all their attention to keep their customers satisfied and fulfill
their needs and wants as much as possible. One of the strong tools which help all companies
in this matter is providing best after-sales service.

Market:
The set of all actual and potential buyers of a product of a service.
Marketing:
In today’s competitive world any organization to run successfully three factors plays
animportant role are
1. Finance.
2. Human resources.
3. Marketing.
Along with the above mentioned the other three factors which plays an important role
to achieve the organizational goals and objectives in the competitive market they are
1. Innovative technology.
2. Quality.
3. Price.

Because of globalization, privatization and liberalization the number of

competitors are increasing at a constant rate as a result of which consumers are
preferring products which are of high quality, technology and at a reasonable price.
Though the company is producing high quality products at a reasonable price to
be success in the competitive market the company should take promotional activities
and marketing tools and techniques to achieve its mission and vision.
Marketing is not just telling and selling but in the new sense satisfying
customer needs marketing is a comprehensive term and it includes all resources and a

41
 set of activities necessary to direct and facilitate and flow of goods and services from
producer to consumer in the process of distribution.

Marketing definition.
“Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and
value with others”.

ELEMENTS OF MODERN MARKETING SYSTEM:

Company
(Marketer) Marketing End users
Suppliers Intermediaries
Competitors
“The art and science of choosing target customers and building profitable
relationships with them.”

Delivering and communicating superior customer value. Thus marketing

management involves managing customer relationships.

THE MARKETING CONCEPT:

The marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do. Under the marketing concept, customer focus
and valve are the paths to sales and profits.

Market Customer Integrated Profits through

Needs Marketing Customer satisfaction

42
DEVELOPING THE MARKETING MIX:

Marketing Mix:

The set of controllable tactical marketing tools that he firm blends to provide
the response it wants in the target market. The marketing mix consists of everything
the firm can do to influence the demand for its product. It can be collected into four
groups of variables known as “FORUP’S”.

1) PRODUCT

2) PRICE

3) PLACE

4) PROMOTION

Product:

Product means the goods-and –services combination the company offers to the target
market.

Price:

Price is the amount of money customers have to pay to obtain product.

Place:

Place includes company activities that make the product available to a target
consumers.

Promotion:

Promotion means the activities taken by the company to communicate the merits of
the product and promote its product to the target market.

43
ACTIVITIES UNDER THE 4P ARE OF THE MARKETING MIX:

1) Product:
Managing the product includes planning and developing the right products and
services to be marketed by the company policy strategy guidelines are needed for
changing the existing products and adding new ones.

A product activity includes policies and procedures relating to:

a. Product variety, quality, features, design, brand name, packaging, size, services,
warranties and returns.
b. Markets to sell-whom, where and in what quantity.
c. New product policy, R&D programs.

2) Pricing activities:
Include policies and procedures relating to
1. List prices.
2. Discounts.
3. Allowances.
4. Payment period.
5. Credit terms.

Generally markets consider the following factors while seeking price: target customers, cost,
competition, social responsibility.

3) Promotional activities:

Includes policies and procedures relating to.

 Advertising: media mix, budget, allocation and programmes.
 Personal setting: objectives, quality of sales force, cost level, level of motivation.
 Promotion: special setting plans/ devices directed at or through the trade forms of
these devices are consumer promotions and trade opinions.
 Publicity and public relations.
44
 4) Place/distribution activities:
Basically place of distribution activities are to transfer ownership to
consumer and to place products, services, idea at the right time and place. Distribution
is made up of two components
1) Physical distribution and
2) Channels of distribution
i) Physical distribution: Activities involved in moving products or services from
producer to consumer are.
 Transportation, warehousing and storage, order processing and inventory
control.
ii) Channels of distribution;: These are the routes taken by good from producer-
consumer it includes.
 Channel design
 Location of outlets
 Channel remuneration
 Dealer-principal relations

An effective marketing program blends all of the marketing-mix elements into a

coordinated program designed to achieve company’s marketing objectives by delivering
value to consumer. The marketing mix constitutes the company’s tactical tool kit for
establishing string positioning in target markets. The four P’s concept taken the seller’s view
of the market, not the buyer’s view. From the users view point the four P’s might be better
described as the four C’s.

FOUR P’S FOUR C’S

Product customer solution

Price customer cost

Place convenience

Promotion communication

45
 Thus marketers see themselves as selling products; customers see themselves as
buying value of solutions to their value of solutions to their problems. The customer is
interested in more than just the price’ they are interested in the total cost of obtaining, using
and disposing of a product. Customers want the product and service to be as conveniently
available as possible, marketers think about the four C’s first and build the four P’s platform.

COMOMIC ENVIROMENT:

Markets require buying power as well as people. The economic environment consists
of factors that affect consumer purchasing power and spending patterns.

The factors effecting consumer behavior are:

1) Cultural factors

2) Social factors

3) Personal factors

46
 4) Psychological factors

1) Cultural factors:

i) Cultural is the set of basic values, perceptions wants and behavior learned by a
member of society from family and other important institutions.

ii) Sub-culture a group of people with shared value sustains based on common
life experiences sub cultures includes nationalities, religion.

iii) Social classes relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors. Social class is
measured by a combination of factors like income, occupation, education,
wealth etc. types are upper class, upper middle, lower class, working class etc.

2) Social factors:

i) Groups: Two or more people who interact to accomplish individual of mutual

goods. The broad types are groups, reference groups, opinion leaders in the
reference group are persons who because of special skills, knowledge,
personality, exerts influence of others.

ii) Family: marketers are interested in the roles and influence of the husband,
wife and children on the purchase of different products and services. Five
fingers of the hand relating to five members of family influencing the decision
of purchase.

iii) Roles and Status: A person role differs from group to group. A role consists of
the activities people are expected to perform according to the persons around

47
 them. Each role carries a status reflecting the general esteem given to it by
society. People often choose products that show their status in the society.

3) Personal factors:

i) Age and life cycle stage: tastes in food, clothes, furniture etc care often age
related. Buying is also shaped by the stage of family life cycle the stages
through which families might pass as they mature over time.

ii) Occupation; A person’s occupation affects the good and services bought. Blue
collar workers tend to buy more rugged clothes where as white collar workers
buy more suits. A company cans ever specialty in making products needed by
a given occupation.

iii) Economic situation: Marketers of income sensitive goods, look at the

consumer personal income savings and interest rates. If the economic
indicators point to a recession, marketers can take steps to redesign reposition
and re-price their products closely.

iv) Life style: Life style is a person’s pattern of living understanding these forces
involves measuring consumer’s activities, interests and opinions.

v) Personality and self concept: It refers to the unique psychological

characteristics that lead to relatively consistent and tasting response to one’s
own environment, Personality is usually described in terms of traits such as
self-confidence, dominance, sociability, autonomy, defensiveness, adaptability
and aggressiveness.

4) Psychological factors:

i) Motivation:

48
 A motive is a need that is sufficient pressing to direct the person
to seek satisfaction. Psychological have developed theories of human
motivation for consumer analysis and marketing.

ii) Perceptions:

It is the process by which people select, organize, and intercept

information to form a meaningful picture of the world. Two people with same
motivation and is the same situation may act quite differently because they
perceive the situation differently.

iii) Learning:

When people act, they learn. Learning describes charesIn an

individual behavior arising from experience. Learning theorists say that most
human behavior is learned learning occurs through the interplay of drives,
stimuli, uses, responses and reinforcement.

Beliefs and Attitudes:

Through doing and learning people acquire beliefs nd

attitude. These in turn influence their buying behavior. A belief is a descriptive
thought that a person has about something; as attitude describes a person’s
relatively consistent evaluations, feelings and tendencies toward an object of
India.

49
There are four main aspects of a promotional mix. These are:

 Advertising–

Any paid presentation and promotion of ideas, goods, or services by an

identified sponsor. Examples: Print ads, radio, television, billboard, direct mail,
brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages,
banner ads, and emails.

 Personal Selling–

50
 A process of helping and persuading one or more prospects to purchase
a good or service or to act on any idea through the use of an oral presentation.

Examples: Sales presentations, sales meetings, sales training and incentive

programs for intermediary salespeople, samples, and telemarketing. Can be face-to-
face or via telephone.

 Sales promotion

Media and non-media marketing communication are employed for a pre-

determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples: Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions.

 Public relations–

Paid intimate stimulation of supply for a product, service, or business

unit by planting significant news about it or a favorable presentation of it in the
media.

Examples:

Newspaper and magazine articles/reports, TVs and radio presentations, charitable

contributions, speeches, issue advertising, and seminars.

51
  Corporate image–

The Image of an organization is a crucial point in marketing. If the

reputation of a company is bad, consumers are not less willing to buy a product from
this company as they would have been, if the company had a good image.

 Direct Marketing is often listed as a the fifth part of the marketing mix

 Exhibitions– are try-outs. You make your product, and let potential buyers try the
product, this way; you know directly what people see in your product. The downside,
your competitor can see exactly what you are doing.

Customer Satisfaction:

“The extent to which products perceived performance matches a buyer’s expectation”.

Consumer satisfaction depends on the products perceived performance, relative to a

buyer’s expectations. If the products performance fall’s short of expectations, the customer is
dissatisfied.

If performance exceeds expectations, the customer is highly satisfies of delighted.

Satisfied customers repeat purchases and tell others about their good experiences with the
product. The key is to match customer expectations with company performance.

The customer centered firm seeks to deliver high customer satisfaction relative to
competitors. A company can always increase customer satisfaction by lowering its price of
increasing its services. But this may result in lower profits. The purpose of marketing is to
generate customer value profitably.

52
Customer loyalty:

Highly satisfied customers produce several benefits for the company. Satisfied
customers are lesser price sensitive. They talk favorably to others, about the company and its
products and remain for longer period. Customer delight created an emotional relationship
with a product of service. This crated high customer loyalty.

53
 CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

QUESTIONNAIRE AND INTERPRETATION WITH GRAPHS:

Table 1 :

1) Income per month

54
a) Less than 6000K b) 6001K -10000K

c) 10001K-15000K d) Above 15000K

Less than 6000K 6001K -10000K 10001K-15000K Above 15000K

5 24 42 29

Graph 1 :

29.00% 5.00%
24.00%
Less than 6000K
6001K -10000K
10001K-15000K
Above 15000K

42.00%

Interpretation:

By the above pie chart we know that the customers have an income per month , 10,000 to
20,000 is 42%, above 15000 are 29%, between 6,000 and 10,000 are 24% and less than 6000 are
5%.

Table 2 : Awareness on Retail Products

a) YES b) NO

55
YES NO

97 3

Graph 2 ;

YES
NO

Interpretation:

By the above pie-chart we know that 97% of the respondents are aware of retail products and 3%
are not aware of retail products. So the study is concentrated on both the type of respondents.

Table 3. Did you hear aboutHeritage retail?

a) YES b) NO
56
 YES NO
95 5

Graph 3 :

5.00%

YES
NO

95.00%

Interpretation:

By this pie-chart we can understand most of the respondents know about the retail
products of Heritage.

Table 4. Usage of Heritage retail Products?

a) YES b) NO

57
YES NO

67 33

Graph 4 :

33.00%

YES
NO

67.00%

Interpretation:

By the above pie –chart we know that 67% respondents are using Heritage retail
Products and rest of the 33% respondents are not using Heritage retail Products.

So we have to concentrate more on those 33% as well as 67% respondents.

58
Table 5 Rating factor for Heritage retail Products which you will give?

Rating Good Fair Bad

Factor
Quality 62 4 1
Price 46 20 1
Longitivity 55 12 0

Graph 5

Rating factor for Heritage products

70
60
50 QUALITY
PRICE
40
LONGEVITY
30
20
10
0
GOOD FAIR BAD

Interpretation:

59
By the above bar-chart we know that out of 100 respondents 67% have used the Heritage
retail Products. Out of 67% respondents 62% people rated good quality, 4% respondent’s
rated fair quality and remaining 1% respondents rated bad quality.

Out of 67% respondents 46% respondents rated good price, 20% respondents rated fair
quality and remaining 1% respondents rated bad price.

Out of 67% respondents’ 55%respondents rated good longevity and 12%

respondent’s rated fair longevity.

Table 6. How do you heard aboutHeritage retail Products

a) Electronic media b) Print media

c) Sales person d) others ( )

Electronic media Print media Sales person others

17 51 16 11

Graph 6 :

11.58%
17.89%

16.84% ELECTRONICMEDIA
PRINTMEDIA
SALESPERSON
OTHERS

53.68%

60
Interpretation:

By this pie-chart we can analyze that most of response came from news paper promotion is
54%,

Through electronic media is 18%, sales persons is 17% and rest of them by others, by this we
known that paper ads are best than others.

Table 7) What way you think promotion of Heritage retail Products Should be
done

a) Offers b) Advertisement

c) Free Service d) others ( )

Offers Advertisemen Advertisemen Free Free service and All

t t Service offers the
above
And offers

8 10 17 42 5 6

Graph 7

61
what do you think promotions should be done

offer advertisement
free service offers & advertisement
6.00% 8.00% advertisement & free offers & free service
5.00% 17.00% service
12.00% allthe above
10.00%

42.00%

Interpretation:

By this pie-chart we know that the promotions should be done by free service and
advertisement.

Table 8 PRODUCT PERFORMANCE

8. Which following feature made you to buy Heritage retail Products?

62
 1) Quality 2) Price 3) Brand Name 4) Free service

SL.NO OPTIONS RESPONSE`

1 Quality 48

2 Price 13

3 Brand name 27

4 Free service 12
Source: customer survey (primary data)

Graph 8:

RESPONSE`

Interpretation:

From the above analysis we conclude that among 100 customers 48% of the
customers buy Heritage retail Products basing on Quality, 13% basing on price,
27% basing on brand and 12% on free service offer.

Table 9 Since how long you have been using Heritage retail
Products.

1) <1 year 2) 1 to 3 years 3) Above 3 years

63
 SL.N OPTIONS RESPONSE`
O
1 < 1 year 17
2 1 to 3 years 52
3 Above 3 years 31
Source: customer survey (primary data)

Table 9

PERIOD OF USING Heritage retail Products

31 17

52

Interpretation:

From the above analysis out of 100 customers when a question was raised
regarding the duration period they have been using the Heritage retail Products.
The responded was less that 1 year is 17%, between 1-3 years 52% and above 3
years 31%.

Table 10. Satisfaction with the performance of your Heritage

retail Products?

64
 1) Completely satisfied 2) Satisfied 3) Not satisfied

SL.N OPTIONS RESPONSE`

O
1 Completely satisfied 69
2 Satisfied 29
3 Not satisfied 2
Source: customer survey (primary data)

Satisfaction of the attributes provided by Heritage retail Products

Graph 10:

29

69

Interpretation;

From the above analysis we conclude that 69%of the cistomers are completely
satisfied, 29% are just satisfied and 2% of the respondents are not satisfied .

65
 Table 11. How comfortable are you while using Heritage retail
Products ?

1) Good 2) Average 3) Poor

SL.N OPTIONS RESPONSE`

O
1 Good 95
2 Average 5
3 Poor 0
Source: customer survey (primary data)

Graph 11 :

Comfortness while driving

95

Interpretation:

From the above analysis wee can conclude that out of 100 customers, 95% of the
customers felt good, 5% average ragarding the customers.

66
Table 12 : Did you experience any problem with Heritage retail Products?

1) Yes 2) No

SL.N OPTIONS RESPONSE`

O
1 Yes 17
2 No 83
Source: customer survey (primary data)

Graph 12:

Problems with Heritage retail Products

17

83

Interpretation;

From the above analysis we conclude that out of 100 respondents 17% of the
respondents experienced problems with their phone and 83% of the respondents said that
they have not experienced any problem with the Heritage retail Products.

67
 Graph 13 : Would you like to change your Heritage retail Products?

Yes 2) No

SL.N OPTIONS RESPONSE`

O
1 No 98
2 Yes 2
Source: customer survey (primary data)

Graph 13

Changing Heritage retail Products

RESPONSE`

Interpretation:
68
 From the above analysis we conclude that 2% of the customers wanted to change their
Heritage retail Products and 98% of the customers said not regarding the idea to change their
choice from Heritage retail Products to other’s competitors .

Table 14 : Service appointment

Is the appointment system useful to you?

1) Completely 2) Useful 3) Not useful

SL.N OPTIONS RESPONSE`

O
1 Completely 25
2 Useful 73
3 Not useful 2
Source: customer survey (primary data)

Graph 14 :

Appointment system

25
2

73

Interpretation;

69
 Among the 100 customers when a question was raised regarding the usefulness of
service appointment system 25% of the respondent said completely useful, 73% said useful
and 2% said not useful.

Table 15 :

Are you satisfied with the courtesy and friendliness of service personal?

1) Completely satisfied 2) Satisfied 3) Not satisfied

SL.N OPTIONS RESPONSE`

O
1 Completely satisfied 36
2 Satisfied 54
3 Not satisfied 10
Source: customer survey (primary data)

Graph 15 :

Courtesy and friendliness of service personal

36
10

54

70
Interpretation:

From the above analysis we conclude that 36% of the customers are completely
satisfied, 54% of the customers are satisfied and 10% of the customers are not satisfied
regarding the courtesy and friendliness of the service personnel.

Table 16 : Are you satisfied with infrastructure and customer lounge

facilities?

1) Completely satisfied 2) Satisfied 3) Not satisfied

SL.N OPTIONS RESPONSE`

O
1 Completely satisfied 44
2 Satisfied 54
3 Not satisfied 2
Source: customer survey (primary data)

Graph 17 :

Infrastructure and customer lounge

44
2

54

71
Interpretation:

From the above analysis we conclude that among 100 respondents 44% of the
customers are completely satisfied, 54% of the customers are satisfied and 2% of the
customers are not satisfied regarding the infrastructure and customer lounge facilities.

Table 17 : Are you shuffled from one sales person to another at the time of
purchase?

1) Yes 2) No

SL.N OPTIONS RESPONSE`

O
1 Yes 0
2 No 100
Source: customer survey (primary data)

Graph 17 :

Shuffled form one sales person to another

72
 100

Interpretation:

From the above analysis we conclude that 100% of the customers responded that they
have not been shuffled one sales person to another at the time of purchase.

Table 18 : Do you get the information from service advisor on the

services to be performed?

1) Completely 2) Adequately 3) Partially

SL.N OPTIONS RESPONSE`

O
1 Completely 37
2 Adequately 54
3 Partially 9
Source: customer survey (primary data)

Graph 18:

Information from service advisor

73
Interpretation:

From the above analysis we come to conclusion that 37% of the customers are getting
complete information from service advisor and 54% are getting adequately and 9% of the
customers are getting partial information regarding the services to be performed.

Table 19 : Are you getting clear explanation of the service performed

and charges at the time of delivery?

1) Yes all the time 2) Mostly 3) Sometime

SL.N OPTIONS RESPONSE`

O
1 Yes all the time 29
2 Mostly 56
3 Sometime 15
Source: customer survey (primary data)

Graph 19 :

Explanation from the service person

74
Interpretation:

From the above analysis we conclude that out of 100 customers 29% of the customers
said all the time they are getting cleared explanation and 56% said mostly and 15% of the
customers are getting only sometime about the services performed and charges at the time of
delivery.

Table 20. Why did you choose this specific dealer? { }

1) Convenient location 2) Speedy service 3) Open on convenient hours

S.No Reason %
1 Convinent location 48
2 Speedy Service 29
3 Open on Convenient Hours 33

Graph 20 :

75
 CHAPTER-V

FINDINGS
SUGGESTIONS
CONCLUSION
QUESTIONNAIRE
BIBILIOGRAPHY
76
 FINDINGS

 The company is advertisement is fair and is reaching to all people.

 The advertisement is difficult to understand.

 Heritage Foods (India) Limited (retail) Products is not concentrating on the

promotional activities for the customers and for the retailers.

 The company is not concentrating on other types of advertising media.

 The package design is not communicative and eye catching, so package design and

color have to blend harmoniously to make the package communication effective.

 The company is not conducting road shows so as to get awareness in the public about

the product and services.

77
  Improve the marketing personnel and they should give full knowledge to the

customers and retailers.

 Heritage Foods (India) Limited (retail) Products must improve their personnel

selling direct contacting customers to give awareness of their products.

SUGGESTIONS

 The company is not concentrating on other types of advertising media.

 The package design should be communicative and eye catching, so package design
and color have to blend harmoniously to make the package communication effective.

 Network (Market) should be expanding to rural villages.

 Reduce the rates to increase the market share.

 The company should conduct road shows so as to get awareness in the public about
the product and services.

78
  Improve the marketing personnel and they should give full knowledge to the
customers and retailers.

 The offers should be fairer and should also necessary to bring new models with
fascinating offers.

 It will help full in Increasing of Sales if The Heritage Foods (India) Limited (retail)
Products brings cards for the different groups of people such as, Students, Employees,
Girls etc.,

CONCLUSION

From project conclude that promotion of any service can be successfully executed by

creating awareness through word of mouth and by maintaining the service according to

Advertising and Sales Promotional Activities.

79
 ANNEXURE

SURVEY ON PROMOTIONAL ACTIVITIES OF AIRTEL

COMMUNICATION

CUSTOMER PROFILE

80
 Name :

Age :

Sex (m/F) :

Occupation :

Marital status :

Address :

Mobile No :

QUESTIONNAIRE

1) Income per month{ }

a) Less than 6000K b) 6001K -10000K

c) 10001K-15000K d) Above 15000K

2) Do you aware of retail products? { }

a) YES b) NO

3) Did you hear aboutHeritage (retail) Products? { }

a) YES b) NO

4. Are you using Heritage (retail) Products? { }

a) YES b) NO

5. YES, what is your rating factor for Heritage (retail) Products which you will give? { }

81
RATING FACTOR A) GOOD B) FAIR C) BAD

6. If YES, how do you heard aboutHeritage (retail) ProductsProducts { }

a) Electronic media b) Print media

c) Sales person d) others ( )

7 . What way you think promotion of Heritage (retail) Products Should be done{ }

a) Offers b) Advertisement

c) Free Service d) others ( )

8. Which following future made you to buy Heritage (retail) Products?{ }

1) Quality 2) Price 3) Brand Name 4) Free service

9. Since how long you have been using Heritage (retail) Products.{ }

1) <1 year 2) 1 to 3 years 3) Above 3 years

10. Are you satisfied with the Performance of your Heritage (retail) Products?{ }

1) Completely satisfied 2) Satisfied 3) Not satisfied

82
11.How comfortable are you while using your Heritage (retail) Products?{ }

1) Good 2) Average 3) Poor

12.Did you experience any problem using your Heritage (retail) Products ?{ }

1) Yes 2) No

13.Would you like to change your Heritage (retail) Products { }

1) Yes 2) No

14.Is the appointment system useful to you?{ }

1) Completely 2) Useful 3) Not useful

16. Are you satisfied with the courtesy and friendliness of service personal? { }

1) Completely satisfied 2) Satisfied 3) Not satisfied

17. Are you satisfied with infrastructure and customer lounge facilities?{ }

1) Completely satisfied 2) Satisfied 3) Not satisfied

17.Are you shuffled from one sales person to another at the time of purchase?{ }

1) Yes 2) No

83
 18.Do you get the information from service advisor on the services to be performed?{ }

1) Completely 2) Adequately 3) Partially

19. Are you getting clear explanation of the service performed and charges at the time
of delivery?{ }

1) Yes all the time 2) Mostly 3) Sometime

20. Why did you choose this specific dealer? { }

1) Convenient location 2) Speedy service 3) Open on convenient hours

Any suggestions

84
 BIBILIOGRAPHY

S.No.AUTHOR NAMEREFERED BOOKS

1. PHILLIP KOTLER Principles of Marketing – 11 th Edition

Prentice Hall India.

2. PHILLIP KOTLAR Marketing Management – Millennium

Edition.Prentice Hall India

3. V.S.RAMASWAMY & Marketing Management -7th Edition

NAMAKUMARI Millennium India Ltd.

4. RICHARD R STILL Sales Management -5th Edition

Prentice Hall India.

5. G.C.BERI Marketing Research -6th Edition

Tata McGraw Hill Co.Ltd.

6. LUCK DAVID & Marketing Research -7th Edition

ROBIN RONALD Prentice Hall India.

WEB SITES

www.google.com

www.Heritage.com

www.retailindia.com

www.customersopt.org

85