MARKETING DEPARTMENT

A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labor) in exchange for money from buyers. It can be said that a market is the process by which the prices of goods and services are established. Marketing management is a process of planning and executing the conception, pricing, promotion and distribution of adequate machine and it has a very strong manufacturing infrastructure. For a market to be competitive there must be more than a single buyer or seller. It has been suggested that two people may trade, but it takes at least three persons to have a market, so that there is competition on at least one of its two sides. However, competitive markets rely on much larger numbers of both buyers and sellers.

1. MARKETING ENVIRONMENT

A. INTRODUCTION OF MARKETING

We use a large variety of goods and services in our daily life. These include items like, toothpaste, toothbrush, soap, oil, clothes, food items, telephone, electricity and many more. How do all these goods and services reach our home? Obviously the business houses that produce the goods and services have to ensure that these are to be sold, and so they have to make the consumers/users aware of their products and place them at points convenient to the consumers. This involves a number of activities such as product planning, pricing, promotion, use of middlemen (wholesalers, retailer etc.) for sale, warehousing, transportation etc. All these activities taken together are termed as Marketing.

 Management definition It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Social definition A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others

We know that the businessman produces goods and services for our use. These are not Necessarily produced at the places where they are consumed or used. Even in villages, Now-adays you find the products manufactured all over India and in other countries. This implies that the manufacturers must be making efforts to ensure that their products are in demand and reach the ultimate consumers all over the globe. So, when you go to the market to buy a readymade shirt you find that there are several options available to you in terms of quality of cloth used, design, color, price etc. and you can buy what suits you most. This also implies that the manufactures assess the needs of the consumers, their tastes and preferences and plan the products accordingly. Not only that, they also ensure that people are aware about the product and its features. All these activities are said to be part of marketing function of any organization. Thus, marketing refers to the process of ascertaining consumers needs and supplying various goods and services to the final consumers or users to satisfy those needs. The American Marketing Association defines marketing as an organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Basically, marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or users.

B. IMPORTENCE OF MARKETING
Marketing is important to the business, consumer as well as the society. This is evident from the following points.

(a) Marketing helps business to keep pace with the changing tastes, fashions, preferences of the customers. It works out primarily because ascertaining consumer needs and wants is a regular phenomenon and improvement in existing products and introduction of new product keeps on taking place. Marketing thus, contributes to providing better products and services to the consumers and improve their standard of living.

(b) Marketing helps in making products available at all places and throughout the year. We are able to get Kashmir shawls and Assam Tea all over India and get seasonal fruits like apple and oranges round the year due to proper warehousing or proper packaging. Thus, marketing creates time and place utilities.

(c) Marketing plays an important role in the development of the economy. Various functions and sub-functions of marketing like advertising, personal selling, packaging, transportation, etc. generate employment for a large number of people, and accelerate growth of business.

(d) Marketing helps the business in increasing its sales volume, generating revenue and ensuring its success in the long run.

(e)

Marketing

also

helps

the

business

in

meeting competition

most

effectively.

C. OBJECTIVE OF MARKETING After knowing the points of importance of marketing let us discuss on the basic objectives of marketing.

(A) Provide satisfaction to customers All marketing activities are directed towards customer satisfaction. Marketing starts With ascertaining consumer needs and produce goods that satisfy those needs most Effectively. Not only that the pricing and distribution functions of marketing are also planned accordingly.

(b) Increase in demand Through advertising and other sales promotional efforts, marketing aims at creating additional demand for their products. Satisfied customers also help in creating new customers. For example, if you buy a gel pen and feel satisfied, next time also you will buy the same pen and obviously when you tell others about it they will also feel like giving it a try.

(c) Provide better quality product to the customers This is a basic objective of marketing. The business houses try to update and upgrade their knowledge and technology to continuously provide better products. If they do not do so, they will be phased out through competition.

(d) Create goodwill for the organization Another objective of marketing is to build a good public image and create goodwill for the organization. This helps in maintaining loyalty to the product and accepting new products of the same company.

(e) Generate profitable sales volume The ultimate objective of all marketing efforts is to generate profitable sales volumes for the business. Taking care of customer needs and wants by providing the required goods and services at prices they can afford, and at places and timing that are convenient to them ultimately lead to increased sales and profits.

2. STP A. SEGMENT BASIS OF S B. TARGETING TARGET MARKET

C. POSITIONING

3. CONSUMER BUYING BEHAVIOR Consumer buying behavior can be defined as acts of individuals in obtaining and using a product or services including the decision processes that precede and determine these acts There are two types of customers. One is the individual customers who buy for self and family consumption. The second is industrial or organization customers who buy the plant and machinery tools and equipment, raw-materials, spare parts and consumables as inputs for industrial production. For the marketer it is essential to study the buying behavior of both- consumer and the industrial buyer. The last item which is produced by the lucky sauce, is mostly used by end users (consumers), so that is why there is concept of consumer buying behavior

A. CONSUMER BUYING PROCESS

Buying behaviors of the consumer depends upon his involvement in the product. However general observation and research indicate that generally consumers for reaching to buying decision undergo a behavioral process consisting of consecutive five steps as under

a) NEED RECOGNITION: - problem recognition or identification of need is the starting point of buying behavior process. The buyer senses difference between his actual state and a desired state. First the consumer identifies his/her need. It includes what kind of the product they want or need to feel satisfaction and produce their product.

b) INFORMATION SEARCH: - The second level is the active information search. In this stage after deciding the product consumer will start gathering information about the product. Every consumer will pass two stage of information gathering: i. Heightened attention:- in this consumer is not having detailed knowledge about the product the consumer will become more receptive to information ii. Active information search:- After knowing about the product consumer will enter into second stage active information gathering in which consumer will take active part and start searching for information. He/ she may start collecting material, meeting to friend, relatives, neighbors, families. Etc

c) EVALUATION OF ALTERNATIVES:- after preparing the list of alternative product the consumer undertakes the evaluation process. There are no set criteria for the evaluation of the product. However consumer tries to evaluate the product on the basis of its features. Expectancy- value model or Compensatory model
Attributes

Test

Quantity
(Kg)

Price
(Rs)

Durability
(month)

Brands

Lucky Kissan Maggi

5 4 2

1 1 1 88 9

[Test: 1- excellent, 10- poor]

d) PURCHASE DECISION:- in the third evaluation stage the consumer form References among the alternative brands. The consumer may also form the intention to buy the most preferred brand.

e) POST PURCHESE SATISFACTION:- satisfaction is the differences between consumer expectation and performance. After purchasing the product, if the performance of the product is not matching with an expectation of a consumer then consumer will not be satisfied. If performance matches with an expectation then consumer will be satisfied. If performance off the product exceeds expectation then consumer will be very satisfied.

4. 4 PS OF MARKETING

A. PRODUCT

a) INTRODUCTION

In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process. Product is something produced by human or mechanical effort or by a natural process. A set of attributes in the form of physical product or services and ideas offered to the consumer for the satisfaction f his needs. It includes physical product, services, ideas, personalities, place and organization. -Philip Kotler

b) PRODUCT MIX

The product mix of a company, which is generally defined as the total composite of products offered by a particular organization, consists of both product lines and individual products. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

Product mix is also called as product assortment which is the set of all product lines and items that a particular seller offers for sale to buyers.

WIDTH SAUCE L E Tikhameetha N G T H Red chilly Tangy sauce Tomato ketchup

Green chilly

Soya sauce

Vinegar

Width: The width of a product refers to how many different product lines the company carries. The above table shows a product width of 7 lines. Length: The length of the product refers to the total number of items in the mix. Depth: The depth of a product refers to how many variants are offered of each product in the line.

c) PRODUCT LIFE CYCLE A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

I.

INTRODUCTION STAGE

In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:

Product branding and quality level is established and intellectual property protection such as patents and trademarks are obtained.

Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs.

Distribution is selective until consumers show acceptance of the product. Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

II.

GROWTH STAGE

In the growth stage, the firm seeks to build brand preference and increase market share.

Product quality is maintained and additional features and support services may be added. Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product. Promotion is aimed at a broader audience.

III.

MATURITY STAGE

At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products.

Promotion emphasizes product differentiation.

IV.

DECLINE STAGE

As sales decline, the firm has several options:

Maintain the product, possibly rejuvenating it by adding new features and finding new uses.

Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment.

Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

Currently, Lucky sauce is existence at the growth stage. Because, Company added new product feature and maintain its quality. Company maintains its price and enjoys increasing demand with little competition. Channel of distribution are added and customer accept the product.

d) PACKAGING AND LABELING e) BRAND B. PRICE a) INTRODUCTION

Price is the element of the marketing mix that creates sales revenue, the other element is cost. b) -Philip Kotler

A value that will purchase a definite quantity, weight, or other measure of a good or service. In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency.

In all modern economies, the overwhelming majority of prices are quoted in (and the transactions involve) units of some form of currency. Although in theory, prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen.

b) OBJECTIVES OF PRICING

Prof.Allen says "Volume objectives include sales maximization and market-share goals, which are specified as a percentage of certain markets. In sales maximization, management sets an acceptable level of profitability and then tries to maximize sales. This objective can lead to discounting or some other aggressive pricing strategy, such as rebates and sales. "

Profit Oriented: Target Return - sometimes the vendor specifies a specific dollar amount or

percentage amount that the price will be offered at in order to make a profit which has been calculated for a specific purpose. Usually this amount is part of a larger plan involving several product units in a product line Profit Oriented: Maximize Profits - if the Competitive Market is not intense you may charge the highest price the market will bear because sometimes you may have an advantage for reasons based on your geographic advantage special features not available on other competitors' products very very famous brand. Etc. Sales Oriented: Increase Sales Volume Sales Oriented: Increase Market Share Status Quo Goals: Meet the Competition - if the customer has many choices, and you barely have the resources to stay in the market, then just charge the same price. You don't have the resources to survive a price war, and you don't have the ability to claim better quality to charge a higher price c) METHODS OF PRICING

There is no specific pricing method in LUCKY SAUCE Company. The price of the product fluctuates on the basis of prices of the raw materials in the market. If the price of the raw material increases the price of the product increases simultaneously and vice versa When the price is increased, no prior information is given to the distributor, but the products will be supplied to the distributor at the prevailing price. The distributor is supposed to follow the following steps in case of price increase: The distributor and the retailer must sell their stock at the price that they have got or at the printed price of the product. The distributor should inform the retailer that he would supply the stock at the price at which the company gives him.

When prices are to be reduced, The distributor will be informed seven days in advance so that he can sell off his stocks. He must ask the retailers to sell off their stock as soon as possible to avoid possible losses. He must see that the old stock is sold first and do not make a fresh supply till then, this will avoid the packets with two different prices. The company will not give price reduction on old stock.

C. PLACE a) INTRODUCTION This term really refers to any way that the customer can obtain a product or receive a service. Provision of a product or service can occur via any number of distribution channels, such as in a retail store, through the mail, via downloadable files, on a cruise ship, in a hair salon, etc. The ease and options through which you can make your product or service available to your customers will have an effect on your sales volume.

b) LEVEL OF CHANNELS OF DISTRIBUTION

The company has two types of the distribution channel that is,

Zero Level, where the company does selling directly to the final customers. The company has established its own retail stores for direct selling to the final customers of its products.

Manufacturers

Customers
Two level channel, where there are two intermediaries between the company and the final customers. The company follows this distribution channel to i.e.

Manufacturers Distributors Retailers Customers

c) ACTIVITIES OF DISTRIBUTION

I.

TRANSPORTATION

Transportation means movement of goods from one location to another. LUCKY SAUCE Company transports their goods into tempo, truck and Shuttle.

II. III. IV.

SERVICES MARGIN OF CHANNEL PARTNER AFTER SALES SERVICE

D. PROMOTION

a) INTRODUCTION Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services. An activity, such as a sale or advertising campaign, designed to increase visibility or sales of a product.

Promotion means a set of efforts made by the company for stimulating the demand for its product or products without making any alternative in product mix, price and channel of distribution.

Promotion is an important marketing force the provides an extra incentive (usually short term in nature) for consumers, the trade. The sales force and other influential groups The elements of the promotions mix are:

Personal Selling. Sales Promotion. Public Relations. Direct Mail. Trade Fairs and Exhibitions. Advertising. Sponsorship.

And also online promotions.

b) PROMOTION MIX

5. EXPORT MARKETING
The company existing only in Surat. There is no another brand of the company.

6. SALES PROCEDURE
The process starts when the company receives order from any distributor. On the basis of this order from, a bill and transport copy is prepared at Head Office. 3 copies of invoice are prepared of which one is sent to factory, one to distributor and one are kept at HO. The distributor sends the copy of invoice duly signed by him, which is filed, in the respective file of distributor. The vehicles used for transportation may be owned by company or may be hired from outside. At H.O. along with copy of invoice, the copy of Lorry Receipt and octroi is also filed in the respective files of distributor.

7. COMPETITIVE ANALYSIS

A. INTRODUCTION B. COMPETITORS DETAILS a) About Maggi Tomato Ketchup :Maggi Tomato Ketchup is primarily a taste enhancer, giving the food provider taste, aroma and also contains iodized salt. Nestle was seriously working on brand extension to leverage brand success in some potential product categories. The company finally decided to enter ketchup market with the brand Maggi. Finally in 1985 when Maggi noodles had reached 4000 tones business, they ensured the establishment of the brand Maggi and launched their Maggi ketchup. Market leader Kissan was selling its ketchup in 500 gm. Nestle decided upon 400 gm bottle to

give the consumer a price- point advantage. The main launched its product all over India. The main focusing aspect of their advertisement was what ketchup does to your food- tasty and more palatable.

b) About Kissan Tomato Ketchup :-