THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

CHAPTER-1
INTRODUCTION

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

1.1 INTRODUCTION
The project work entitled “A STUDY ON THE EFFECTIVENESS OF DEALER PROMOTION
STRATEGIES OF TOMS PVT LTD” gives the opinion of the dealers about the trade oriented
promotional strategies offered by TOMS and its competitors. The analysis has to be made mainly
based on the primary data that is by dealer.

The promotional strategies are of two types , customer oriented promotional strategies and trade
oriented promotional strategies. In the study researcher is studying the effectiveness and dealer
satisfaction to the trade oriented promotional strategies. The retailer satisfaction and retailer
retention is very crucial for the company and thus the promotional strategies of the company and
the customer service plays a crucial role in dealer retention.

Sales promotion plays a vital role in marketing of typical consumer products. Companies are
spending a lot for sales promotion activities. Sales promotion is preferred because it is focused
on a particular target group rather than spending huge amount in mass media, it directly address
and targets the consumer and produce results.

Accessing the dealer oriented promotional strategies of PVC Pipe companies and to find the
impact of different communication channels and advertisements effects on dealers. also intended
to find out the fast moving brands in the market and the effect of competitor’s promotional
strategies.

1.2 OBJECTIVES
 To study the effectiveness of dealer promotional strategies of TOMS pipes with reference to
Kottayam district.
 To study the loyalty of dealers towards TOMS pipes.
 To know the existing dealer promotional strategies of TOMS pipes.
 To analyze the customer oriented promotion strategies and its effect on retailers purchase.
 To suggest new means of promotion strategies for TOMS pipes

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

1.3 SIGNIFICANCE OF THE STUDY

Promotional strategies in an organisation has fundamental goals of increasing sales and
achieving a suitable competitive advantage.Promotional strategies includes all basic,short term
and long term activities in the field of marketing.When it comes to identifying the dealers,and
finding ways to market to them, promotional strategies plays a vital role.The elements of
increasing dealers engagement ,is what separate good marketing from great marketing.They are
quick seasonal promotional method used by a company to increase dealers satisfaction.

1.4 SCOPE OF THE STUDY

The scope of the study is to evaluate the current dealer oriented promotional strategies
used by the PVC Pipes companies and its effect on the sales of the product, also to develop new
techniques of sales promotion in PVC Pipe industry. With the help of the study we can give
suggestions regarding sales promotion and service offered by the industry. The study in TOMS
Pipes is useful to understand the various sales promotion techniques adopted by the company. It
also makes an attempt to assess the level of satisfaction towards TOMS Pipes products.

The study is also focusing on various customer oriented promotional strategies used and its
impact on the sales at the retail outlets. This paper recognizes the importance trade oriented and
costumer oriented sales promotional strategies used in the PVC Pipe industry. However there has
been less focus on what value dealers attach to their satisfaction and loyalty in this context.

1.5 PERIOD OF THE STUDY

The study on dealer promotional strategies was conducted for a period of one month from
1/12/2017 to 30/12/2017.

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

1.6 LIMITATIONS OF THE STUDY

 The study was based on the assumption that the respondents will always be truthful
and correct. But this assumption might not be true always.
 The study was confined to the district of Kottayam (sample) and Kerala
(population).
 The shops are scattered and thus very difficult to reach
 Shop keepers are reluctant to respond.
 Lack of cooperation from owners.

1.7 RESEARCH METHODOLOGY

Research is an organized set of activities, to study and develop a model or procedure/ technique,
to find the results of a realistic problem, supported by literature and data such that its objectives
are optimized; and further, make recommendations / inferences for implementations.

According to Redman and Mary “Research is a systematized effort to gain new knowledge”

Research methodology is a way to systematically solve a problem. Thus, it covers not only the
different methods but also the logic of using the same. These methods describe the ways and
means of conducting the research. Methodology designs the combination of different methods to
solve a particular research problem in hand. It is the sum total of the ways and means of
planning, conducting and reporting the outcomes of a research study. Its starts with the
approaches to identify a research problem, define the same, plan and design a research design,
execute the same and conclude with the review of reported findings. It is necessary for the
researcher to know not only the research methods/techniques but also the methodology.
Researchers not only need to know how to develop certain indices or tests, how to calculate the
mean, the mode, the median or the standard deviation or chi-square, how to apply particular
research techniques, but they also need to know which of these methods or techniques, are
relevant and which are not, and what would they mean and indicate and why.

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1.7.1 RESEARCH DESIGN

The formidable problem that follows the task of defining the research problem is the preparation
of the design of the research project, popularly known as the “research design”. Decisions
regarding what, where, when, how much, by what means concerning an inquiry or a research
study constitute a research design. A research design is the arrangement of conditions for
collecting and analysis of data in a manner that aims to combine relevance to the research
purpose with the economy in procedure. Research designs can be categorized into three and are
as follows:

 Exploratory Research Design

 Descriptive & Diagnostic Research Design
 Experimental Research Design

EXPLORATORY RESEARCH DESIGN: Exploratory research studies are also termed as

formulate research studies. The main purpose of such studies is that of formulating a problem for
more precise investigation or of developing the working hypothesis from an operational point of
view. As such the research design appropriate for such studies must be flexible enough to
provide opportunity for considering different aspects of a problem under study.

DESCRIPTIVE & DIAGNOSTIC RESEARCH DESIGN: Descriptive research studies are those
studies which are concerned with describing the characteristics of a particular individual, or of a
group, whereas diagnostic research studies determine the frequency with which something occur
or its association with something else. The studies concerning certain variables are associated are
examples of diagnostic research studies.

EXPERIMENTAL RESEARCH DESIGN: Hypothesis-testing research studies (generally known

as experimental studies) are those where the researcher tests the hypotheses of casual
relationships between variables. Such studies require procedures that will not only reduce bias
and increase reliability, but will permit drawing inference about causality. Usually experiments
meet this requirement. Hence, when we talk of research design in studies, we often mean the
design of experiment.

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

1.7.2 POPULATION

The active aggregation of items from which samples can be drawn is known as population for
current study.

1.7.3 SAMPLING

Sampling may be defined as the selection of some part of an aggregate or totality on the basis of
which a judgment or inference about the aggregate or totality is made. In other words, it is the
process of obtaining information about an entire population by examining only a part of it.

1.7.4 SAMPLING DESIGN

A sample design is a definite plan determined before any data are actually collected for obtaining
a sample from a given population. It refers to the procedure adopted by a researcher for selecting
items for a sample.

1.7.5 SAMPLING UNIT

The elementary units or the group of elementary units which form the basis of a sampling
process are called sampling units.

1.7.6 SAMPLE SIZE

The number of sampling units selected from the universe to form a sample is called the size of
the sample. The size of the sample in this research is 50.

1.7.7 METHODS OR TECHNIQUES OF SAMPLING

Different sampling methods are available for the researcher. He will have to choose an
appropriate method based on the nature and relevance of the study and the information to be deal
with. Rather the purpose of the study determines the method of sampling to be adopted. The
various methods of sampling can be broadly categorized into two types:-

 Probability/Random Sampling
 Non- probability/Non- random Sampling

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

PROBABILITY/RANDOM SAMPLING

Under probability sampling design, every item of the universe has an equal chance of inclusion
in the sample. It is, so to say, a lottery method in which individual units are picked up from the
whole group not deliberately but by some mechanical process. The most frequently used
probability samples are:

Simple random sampling: A sample selected is said to be random or based on probability when
each and every element in the universe is having an equal chance for being included in the
sample. It consists of two methods: lottery method and random number tables.

Stratified sampling: In this method, the population is first classified into different segments
based on common characteristics. The elements in each such stratum are homogeneous.

Systematic sampling: This method is also known as quasi-random sampling. It can be done
where a complete list of the population is available. Here, a sampling interval is fixed by
dividing the size of the universe by the desired sample size.

Multistage Sampling: Sampling procedure is conducted in several stages.

Cluster sampling: Here in this method of multistage sampling, the population in subdivided into
sampling units that are further divided into sub units and so on till an ideal level. The sample is
selected from the lower stages at reasonable basis.

Area sampling: Under this, total geographical area (when it is large) is divided into a number of
smaller non-overlapping areas and then some of the smaller areas are selected and all units of the
selected areas constitute the sample.

Quota Sampling: In this method, the investigator engaged in the primary collection of data is
assigned a quota for investigation.

Multistage Sampling: Sampling procedure is conducted in several stages.

Sequential Sampling: This method is adopted in acceptance with the sampling plans in
Statistical Quality Control.

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

NON-PROBABILITY/NON-RANDOM SAMPLING

The non- random sampling involves less statistical measures as compared to the random
sampling methods. This method is featured by more injunctions of personal considerations and
judgment of the investigator. The main non-random sampling methods include the following:

Judgment sampling: This method is also known as deliberate or purposive sampling. The
investigator selects the items sample to be included in the sample by his personal judgment. Here
a vital role is there for the investigator is collecting the information too.

Quota sampling: This method is similar to stratified sampling. Here, the universe or population
under study is divided into subunits or quotas based on common on features. A desired size of
items from each quota is selected to form the sample space. But the proportions are not as logical
as stratified random sampling, since it depends on the personal judgment of the investigator.

Convenience or Chunk sampling: Here, chunk is a convenient slice of a population that is

commonly referred to as a sample. It is obtained by selecting convenient population units into the
sampling space.

1.7.8 DATA COLLECTION

Data collection is one of the most important stages in conducting a research. The task of data
collection begins after a research problem has been defined and research design/plan chalked out.
Data collection is a very demanding job, which needs thorough planning, hard work, patience,
perseverance and more to be able to complete the task successfully. Data collection starts with
determining what kind of data is required, followed by the selection of a sample from a certain
population. While deciding about the method of data collection to be used for the study, the
researcher should keep in mind two types of data:

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen to
be original in character. Such data are generated in large number of surveys conducted mostly by
government and also by some individuals, institutions and research bodies.

METHODS/SOURCES FOR COLLECTION OF PRIMARY DATA

 Observation Method: The observation method is the most commonly used method
especially in studies relating to behavioural sciences. Under the observation method, the
information is sought by way of investigator’s own direct observation without asking
from the respondent.
 Interview method: The interview method of collecting data involves presentation of
oral-verbal stimuli and reply in terms of oral-verbal responses.
 Questionnaire: This method of data collection is quite popular, particularly in case of bi
enquiries. A questionnaire consists of a number of questions printed or typed in a definite
order on a form or set of forms. The respondents have to answer the questions on their
own.

SECONDARY DATA

The secondary data, on the other hand, are those which have already been collected by someone
else and which have already been passed through the statistical process. Collection of secondary
data has the advantage of being less expensive and less time consuming. Careful scrutiny must
be made before using secondary data.

METHODS/SOURCES FOR COLLECTION OF SECONDARY DATA

 Annual reports
 Company records
 Journals
 Books, Magazines
 Website

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

1.7.9 TOOLS FOR DATA COLLECTION

The tools/methods/sources used for data collection:

PRIMARY DATA

Observation: The observation is the most commonly used method especially in studies relating
to behavioural sciences. Observation becomes scientific tool and the method of data collection
for the researcher, when it serves a formulated research purpose, is systematically planned and
recorded and is subjected to checks and controls on validity and reliability.

Interviews: Interview is probably the most used selection tool. Interview is a face-to-face
interaction between two persons for a particular purpose. It is a method by which an idea about
an applicant’s personality (including his intelligence, interests and general attitudes towards life)
can be obtained by a face-to-face contact.

Questionnaire: A questionnaire is a schedule consisting of a number of coherent and formulate

desires of questions related to the various aspects of the under study. In this method, a printed list
of questions arranged in a sequence and is used to elicit response from the respondents. The
following are the types of questions, which are used in research, are;

 Open ended questions

 Close ended questions

An open-ended question gives the respondents the complete freedom to decide the form length
and detail of the form. The close-ended question is of two types and they are as follows:

Dichotomous question: This type has only two answers in the form of YES´ or NO´, TRUE´ or
FALSE´.

Multiple-choice questions: In this case, the respondents are offered two or more choices and the
respondents have to indicate which is applicable

1.7.10 TOOLS FOR DATA ANALYSIS

Statistical tool used for the data analysis and interpretations:

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

Tables: It consists of the information of the number of respondents, their responses.

Percentage Analysis: It is used to find out the percentage of respondents from the total number
of respondents, responded to each question.

Percentage Analysis = No: of respondents X 100

Total no: of respondents

Pie Charts: A pie chart (or a circle graph) is a circular chart divided into sectors, illustrating
numerical proportion. In a pie chart, the arc length of each sector is proportional to the quantity it
represents. While it is named for its resemblance to a pie, which has been serial noticed, there are
variations on the way it can be presented. Pie charts are very widely used in the business world
and the mass media.

Simple Bar Diagram: A bar chart is a way of summarizing a set of categorical data. A bar chart
or bar graph is a chart with rectangular bars with lengths proportional to the values that they
represent. The bars can be plotted vertically or horizontally. A vertical bar chart is sometimes
called a column bar chart. A bar graph is a chart that uses either horizontal or vertical bars to
show comparisons among categories. It displays the data using a number of bars of the same
width, each of which representing a particular category.

Chi-square Test: Chi-square is a statistical test commonly used to compare observed data with
data we would expect to obtain according to a specific hypothesis. Chi-square requires that you
use numerical values, not percentage or ratios. Chi-square should not be calculated if the
expected value in any category is less than 5.

2
(𝑂 − 𝐸)2
𝑥 =∑
𝐸

Where, O= Observed frequency

E= Expected frequency
∑= Sum of

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THE STUDY ON EFFECTIVENESS OF DEALER PROMOTIONAL STRATEGY AT TOMS PIPES

1.8 Chapterisation
Chapter-1: Introduction

It includes introduction to the topic‚ objective‚ significance‚ scope of the study, limitations‚
period of the study, research methodology, and chapterization.

Chapter-2: Theoretical frame work

This chapter deals with the theoretical frame work of promotional strategy ie, meaning‚
definition,objectives,types of sales promotion,factors encouraginig the use of sales promotion.

Chapter-3: Profiles

This chapter deals with the industrial profile‚ company profile and the product profile of the
TOMS pipes pvt ltd.

Chapter-4: Data Analysis and Interpretation

The effectiveness of dealer promotional strategy at TOMS pipes pvt ltd is analyzed with the help
of respondents profile gathered by a structured questionnaire, which is illustrated and discussed.

Chapter-5: Findings, suggestions and conclusion

It deals with the findings, conclusions and suggestions about the study.

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