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CHAPTER IV

GENERAL SALES PROMOTION AND MARKETING STARTEGIES

OF WHEAT FLOUR COMPANIES

4.1 Different Types of Promotion Schemes and Incentives

This chapter provides the details about the different types of promotions for fast

moving consumer goods during the study period. The different promotions include free gift

offers, price offers, extra brand offers, exchange offers, buy-more-and-save offers contests

and sweepstakes. The most frequently launched promotion is the free gift offers followed

by the sweepstake offer and extra brand offer. A detailed description of each type of

promotion is provided in order to highlight the different incentives offered by such

promotions.

Consumer Promotions – An Overview

Expenditure on sales promotion by various marketing companies in India is

estimated as Rs.5, 000crore and is growing at a robust pace every year (Economic Times

June 15, 2003). Companies are an attempt to drive sales offer various kinds of consumer

promotion from price offs, extra product, freebies, and scratch cards. In the year 2001, there

were as many as 2,050 promotional schemes of all kinds in the Rs.80,000 Crore FMCG

industry. In the year 2000, the number stood at 1,954 schemes92

.

92

Priya Jha – Dang and Abrahan Koshy, An Empirical View of the Different Types

of Consumer Promotions in India, Financial Express, 2000, p.3.

119

There have been very few discussions in sales promotion literature about how

different types of promotions may be classified. One dimension, which has been suggested

to classify different promotions, is the price versus non-price nature of the promotion

(Campbell and Diamond, 199693

; Blattberg and Neslin94

, 1990). Price promotions are

defined as ‘promotions such as coupons, cents off, refunds and rebates that temporarily

reduce the cost of the goods or services’ (Cooke95

, 1983). These promotions focus on the

reduced economic outlay required to obtain goods or services. Non-price promotions are

defined as ‘promotion such as giveaways or contests in which value is temporarily added to

the product at full price’ (Cooke, 1983). Studies, which have compared consumer responses

to different promotions, have followed this classification by differentiating between types of

promotion. A list of the different types of price and non-price promotions and their

definitions is shown in Table 4.1.

93

Campbell, L. and Diamond, W.D. “Framing and Sales Promotion: The

Characteristics of a Good Deal,” Journal of Consumer Marketing, Vol.7, 1990, pp.25-31. 94

Blattberg R. and Scott A. Neslin, Sales Promotion: Concepts. Methods, and

Strategies, Englewood Cliffs, NJ: Prentice Hall, 1990.

95

Cooke, Ernest F., “What is Sales Promotion”?, Paper Presented at Sales

Promotion Workshop, Babson Colleges, May 23, 1983.

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TABLE 4.1

CLASSIFICATION OF DIFFERENT PROMOTIONS

Nature of promotion

Price promotions Non- price promotions

Offer Definition Offer Definition

Price-off Offers a discount to the

normal selling price of a

product

Extra product Offers an increased

quantity of the product

without an increase in

normal retail price

Coupon Offers a certificate that

provides a price

reduction at point of the

purchase

Premium Offers a free gift in

addition to the main

purchase

Rebate Offers cash back from

the manufacturer on a

purchase

Contest Provides a chance to win

a large prize through

skill

Sweepstake Provides a chance to win

a large prize based on

chance

Although a wider variety of price and non-price promotions are launched in the

market, most of HI (Household Insecticide) academic research on promotions has focused

on price promotions, namely price-off and coupon offers (Blattberg, Briesch and Fox96

,

1995). Promotional tools such as free gift offers, extra product offers that are increasingly

being used in the market place. However very little academic theory or research has looked

at how consumers perceive and respond to such promotions. In the recent years, researchers

96

Blattberg R.C., Briesch R. and Fox E.J., “How Promotion Work”, Marketing

Science, Vol. 14, 1995, G122-132.

121

have started comparing consumers’ response to different promotions e.g. price promotion

versus premium promotion or extra product promotion versus price promotion (Smith and

Sinha97

, 2000). These researchers have found that different types of promotions evoke

differential response. However, studies have not attempted to systematically indemnify the

entire range of promotions launched in the market place.

Details about Different Types of Promotions

The specific details about the different types of promotions – price off, free gift

offers, sweepstakes, extra product offers, contests, exchange offers and buy-more-and-save /

get offers-are discussed in the following section.

(i) Price off or discount

Price probably is the most commonly used promotional techniques. The

concession or reduction in price is given to the customers and they save the money in the

purchase. The customers get the products in lower price. The same features of the products

are offered to the customers at lower price. The value of the money among customers is

increased. The concession is given in net amount then it is called price off and if it is given

in percentage then it is called discount. These methods can be communicated through POP

advertising, window displays, sales men, advertising, packaging etc. Such promotion

methods work very well in gaining the attention of consumers, particularly at the point of

purchase among similar brands. For example, the price of Colgate Total tooth paste is

marked MRP as Rs. 100. When it is marked Rs.10 off, then it means the customer has to pay

97

Smith M.F. and Sinha I, “The Impact of Price and Extra Product Promotions on

Store Preference”, International Journal of Retail and Distribution Management, Vol.28,

2000, pp.83-92.

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Rs. 90 only. When it is mentioned on package 15 % discount then the percentage on MRP is

to be calculated and deducted. Rs. 100-15= Rs. 85 is to be paid.

(ii) Premium

When the product is purchased the customers get additional items with the purchased

item free of cost. This provides extra benefit or value to the customers. The customers save

money through this. Sometimes when extra item with the purchased item is given to the

customers and they may not be in need of that item. It may not be motivated much more

customers in comparison with price off or discount. The premium may be of different types

such as over the counter, packed premium, banded premium and loyalty premium.

When a customer is purchasing items and on the counter itself an extra item is given

that is called over the counter premium. For example a customer purchased one pen and

with pen a pencil is given free of cost on the counter itself it is an example of over the

counter premium.

When a product is packed inside the pack of the product purchased then it is called

packed premium. For example a packet of pencils is purchased and inside the pack a scale

and cutter are enclosed. This is called packed premium.

When a product is banded with the tape or strip with the main product and sold to

the customers. It is an example of banded premium.

When a customer repeatedly bought the products in past and giving proof of the

purchase, then it is called loyalty premium. By producing evidence of the purchase the

customers get additional item an example of loyalty premium.

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(iii) Quantity off

Under this sales promotion method the additional benefit is given through the

quantity of the product bought. Without payment an extra quantity of the product is packed

in the pack itself or separately. It is called quantity off method. For example, in a pack of

Rin detergent cake of 100 gms extra quantity of 20 gms is included and in total 120 gms is

packed. The price of the packet is not changed but it is marketed on the package as 20 gms

extra.

(iv) Free samples

In this sales promotion method small packs of the products are distributed to the

customers during buying or without buying free of cost. In market the samples of shampoo,

washing powder, tea and coffee powder medicines, etc. while purchasing various items from

the market. Sometimes these free samples are distributed by the shopkeeper even without

purchasing any item from his shop. The main objective of this method is to attract

consumers to try out a new product and thereby create new customers. Some businessmen

distribute samples among selected persons in order to popularize the product. For example,

in the case of medicine free samples are distributed among physicians, in the case of

textbooks, specimen copies are distributed among lecturers and teachers in schools and

colleges.

(v) Exchange schemes:

When the customers are going for purchasing the product they are offered to get

exchanged their old item at a reasonable price. It refers the offering exchange of old

products for a new product at a price less than the original price of the product. This is

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useful for drawing attention to the product improvement. This is more suitable for the

durable goods mainly. For example a colour TV set price is Rs 10,000 and exchange offer is

giving for black and while set of Rs 1000. It means the old set is to be given to the dealer

and it price would be counted Rs. 1000. Balance Rs. 9000 is to be paid. This motivates the

person those who are having less amount but want to purchase the costly item.

(vi) Coupons

Sometimes, the company issues coupons either in the packet of a product or through

an advertisement printed in the newspaper or magazine or through mail. The presentation of

the coupon accepts the benefits to the customers. A coupon authorizes the holders to get the

discount of printed amount of coupon. These coupons can be presented to the retailer while

buying the product. The holder of the coupon gets the product at a discounted price. For

example, if a packet of biscuit is purchased and inside its pack a coupon of Rs. 3 is found.

The customer presents it to the retailer and get discount of Rs 3 when he buys another packet

of biscuit.

(vii) Fairs and exhibitions

This is one of the promotion methods for creating awareness of the new products and

mainly durable and high price products. Fairs and exhibitions may be organized at local,

regional, national or international level to introduce new products, demonstrate the products

and to explain special features and the usefulness of the products. Goods are displayed and

demonstrated and their sale is also conducted at a reasonable discount. The fairs are

conducted mainly for IT, engineering goods, automobiles, industrial goods etc.

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(viii) Trading stamps

Another method of inducing the customers to buy the product is the issue of trading

stamps. In case of some specific products trading stamps are distributed by the companies as

per the value of their purchase. The customers those who have collected and produced these

stamps of sufficient value within a particular period gets benefits from the company. This

method induces customers to purchase the products more and get benefits by collecting

trading stamps.

(ix) Scratch and win offer

In this method the company provides the scratch facility on the pack itself. Those

who buy the product can scratch the card and win the prize. In this way customers may get

the benefits as per the scratching scheme whatever is mentioned on the scratch mark. This

method also motivates the people to some extent but not very high.

(x) Money back offer

When the product is not known to the customer in the market. The customers are not

sure about the benefits of the customers especially in case of new products. Under this

scheme customers are given assurance that full value of the product will be returned to them

if they are not satisfied after using the product. This creates confidence among the customers

with regard to the quality of the product. Under assurance only the customers are taken

chance to buy the new products

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(xi) Easy finance scheme

This scheme is offered by the company when the product is of high price and

customers may not have that much amount to buy the products. The easy finance schemes

are arranged by the company with the banks and finance companies. The loan facility is

given at lower rate of interest subject to certain terms and conditions. This motivates the

customers to buy products like cars, laptops, refrigerators etc.

(xii) Contest or sweepstake

To motivate the customers for the purchase of the product of another method of

contest or sweepstakes can be used by the company. In contest for entry certain skills are

needed but in sweepstakes no skill is required to participate. It may also motivate the

customers in some of the cases also.

(Xiii) Other Offers

A variety of promotions are seen in ‘Any other’ category. One frequent promotion in

the consumer durable category is the zero per cent finance scheme for purchase of two

wheelers, notebook/PCs, refrigerator, music system, television, microwave oven, two

wheeler.

A different kinds of promotions requires the consumers to invest money in order to

avail of the promotional benefit. In case of fans, this sort of promotion requires the

consumers to purchase 3 fans and pay Rs.90 to get a wristwatch worth Rs.480. Another such

promotion requires the consumer to buy a fan, pay Rs.40 and get a free camera worth

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Rs.300. In case of health drinks, the promotion requires the consumers to pay Rs.7/ more

and get a badminton racket free.

A variant of this promotion is another promotion, which requires an investment of

effort rather than money from the consumers. For example, in case of tea, the consumers are

required to pay Rs.1 and get a Britannia biscuit pack free along with the tea pack. In case of

salt, the consumers are required to collect a newspaper coupon and pay Re.1 to get a pack of

salt.

Yet other types of promotions require an investment of both money and effort from

the consumers in order to avail of the promotional benefit. For example, a soft drink

promotion requires the consumers to collect crowns and put in some money to get a price

discount on the soft drink. In case of ice cream the consumers are required to collect three

ice cream wrappers to get a scratch card which gives them the opportunity to win lakhs of

prizes. In case of chocolates, the promotion requires a consumer to exchange empty

chocolate wrappers to get movie tickets or bunny stickers free.

Traders Oriented Promotion Methods

With the intention to get the best cooperation from the distribution channel members

the companies are using different promotional methods. These methods directed at traders

are called traders oriented promotional method. The traders provide the important link

between the marketers and the customers. The traders may include dealers, wholesalers and

retailers. The company cannot take chance to miss them. These types of methods are applied

to strengthen the team work among all concerned parties of sales. Some of the methods for

motivation of traders are following;

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(i) Point of purchase display

This method is targeted at dealers or traders. It means the display facilities are

provided by the manufacturers to the traders for display at their showrooms or shops. The

types of products sold out at the outlet are displayed at the points. This gives the clear idea

to the buyers that the particular type of products are sold at the store. Without display the

ideas regarding availability for buying would not be known to the customers. It supports the

traders to improve the internal and external atmosphere of the store. By this the customers

are attracted and traffic of customers are also increased. This creates the visibility of the

products and further it supports the promotional methods like personal selling and

advertising. The only difficult in this is that the traders are not maintaining the POP facilities

and they all selling these also to get money. These facilities are provided free of cost to the

traders. This improves the status of the store and motivates the traders.

(ii) Trade Fair

The trade fair is also used for the traders. A large number of manufacturers display

their wares and take orders at trade shows. In fact, companies spend a huge amount on this

type of show. They also provide a chance to demonstrate products share information, answer

questions, and enable them to have critical comparison with the products of competitors.

The participants may be the traders and customers. They are provided with all supports and

orders can be taken from them. The traders get motivated to deal in those products displayed

in trade shows.

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(iii) Traders meeting

Time to time the company arranges meeting of traders so that the related issues of

business can be discussed and shorted out easily. The participants are traders or their

salesmen. The meeting can be sponsored by the company or jointly company and traders.

These can be conducted at local, regional and national levels. The objective of the meetings

is to discuss the difficulties, answer the confusions, and guide the sales men for promotional

campaign. The facilities are given to the traders to increase the sales and their earnings for

free of cost. This helps a lot to motivate the traders and they provide adequate support to the

company to meet their objectives of sale.

(iv) Sales contests

The Company arranges the sales contests for the traders those who achieve the quota

of sales within the stipulated period. Those who achieve the specified quota they participates

in contests. They may win the prizes, free tours sponsored by the company and other

benefits. This triggers to encourage them to put efforts for increasing the sales and providing

the support.

(v) Training of staff

This type of method provides training to the technical staff for servicing and

repairing of the durable goods like car, TV, computers, refrigerators etc. The engineers of

the traders are not having much systematic knowledge of the products, to repair and replace

the faulty parts of the products. They are trained by the experts of the company in their

workshop at free of cost. The training facility can be arranged at workshops of traders

locally. This provides a lot of supports to increase their sales.

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4.2 Marketing Strategy for select wheat Flour Brand:

1. Aashirvaad:

ITC launched Aashirvaad Atta on 27th May 2002 in Jaipur and Chandigarh. Today,

it is available all over India and is the number one branded packaged Atta across the

country. The focus is kept on providing the best quality Atta using the most traditional yet

cumbersome methods. Through its PET poly packaging and E-choupal initiative, the

freshness of the Atta is guaranteed giving the consumers a confidence no other brand can

comply. Happiness handpicked is the motto of Aashirvaad Atta and to achieve this, ITC

buys wheat straight from the farmers using the sourcing strength of its e-Choupals.

Aashirvaad Select Atta (5 kg pack) was awarded one of the most prestigious awards

in the world for Packaging the World Star Award for Excellence in Packaging in the

Consumer Pack Category. Aashirvaad Atta also created a first in packaging in the branded

Atta category. Its premium offering, i.e. the 5kg premium pack, is available in vacuum

sealing and carton packaging. Both these technologies help to maintain the freshness of the

product. Aashirvaad Atta is formed from the choicest grains - hard in bite, golden amber in

color and heavy on the palm. Modern 'chakki - grinding' process is used to grind it for the

perfect balance of taste, nutrition and color ensuring in the process that Aashirvaad Atta

contains 100% Sampoorna Atta and 0% Maida.

SWOT Analysis of Aashirvaad Atta

(i) Strengths

ITC has been able to established itself as the market leader in the packaged food

market. Within 8 years after launching Aashirvaad Atta, it has become number one in

branded packaged Atta sector across the country with a whopping market share of 55%.

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The focus of ITC has always been on the providing its customers with best the

possible quality and in the case of Aashirvaad Atta also, they have emphasized on the

quality and freshness. To keep the taste of packaged Atta authentic with respect to Chakki

Atta, ITC follows traditional methods to produce it. It obtains the finest wheat grains

directly from the farmers and then the grains are grounded using modern 'Chakki - grinding'

process to produce genuine and authentic Atta. ITC also tries to ensure that Aashirvaad Atta

contains 100% Atta and no Maida. In addition, the quality is maintained such that the dough

made from Aashirvaad Atta absorbs more water making the Rotis softer.

ITC has been able to successfully use its E-choupals initiatives to obtain the finest

wheat grains for the production of Atta directly from farmers. This backward integration

gives them two distinct advantages. The first being reduction in the cost of wheat by around

2 percent as no middlemen is involved in the process. The second advantage is of course

quality since ITC does not have to rely upon the Mandi system where the wheat grain can be

of inferior quality.

ITC offers a wide range of Aashirvaad Atta products cater to the different

consumers’ demands. Apart from the basic brands, there are two high-end brands with some

special ingredients.

ITC has its own packaging business and it utilizes its packaging business to come out

with really superior and innovative packaging. The material used for packaging the

Aashirvaad Atta is “PET Poly” which keeps the Atta fresh. Further, it also offers carton

packaging and vacuum sealing for its premium packs.

Although ITC already had excellent distribution network for its cigarette products, it

needed to develop the new and different distribution infrastructure for its Aashirvaad Atta

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product. However, in the last 8 years it had really developed its distribution network and

with its strong E-Choupal network it can competed with its competitors on the distribution

front.

(ii) Weaknesses

Aashirvaad Atta can be considered as a premium priced product, as it is very costly

when compared to unpackaged Atta sector.

Currently, the focus of ITC is on urban market with respect to packaged Atta sector

and with packaged Atta sector still being less than 3% of the total Atta market; ITC can be

focused on rural market also to capture more of the unpackaged Atta market.

ITC has focused more on the retail shop based promotion strategy. However, to

attract more and more customers, ITC needs to promote it more using TV and other media

promotion strategies.

(iii)Opportunities

Food Industry is India’s sleeping giant. With the rise of modern retail formats,

increasing disposable incomes and healthy awareness, the category is undoubtedly evolving.

With the branded Atta market in India being very attractive in terms of size and

consumption patterns, growth has also picked up pace with the Government’s proactive

approach with the formulation of national food policy, reservation of select segments.

Apart from North India, which has always been very high in wheat consumption, ITC

can concentrate in rice dominant regions such as Andhra Pradesh. Atta is used for making

puri, which is a popular breakfast item for South Indians.

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ITC can collaborate with fast food chains such as McDonalds, Pizza Hut and

Subway. This has been an untapped market until now and tying up with these chains as their

main flour suppliers can open up a new window for ITC.

(iv) Threats

Indian market is largely dominated by innumerable local flourmills and ‘Chakki

Atta’, which are the biggest threat to Aashirvaad Atta. Chakki Atta is still perceived as the

best quality Atta and it is cheaper as compared to branded packaged Atta.

Obvious threat is the domestic competition. Competitors such as Annapurna and

Pillsbury are doing their best to increase their market share.

Until now, the competition is mainly domestic. In future when Western companies

will see India as an exciting opportunity for packaged Atta, then the competition will get

intense.

Promotion Strategy:

Aggressive Advertisements in television targeting Indian Housewife.

Exclusively Aashirvad Stores

Tie up with Government to sell Aashirvaad Atta at military canteen at a subsidized

rate.

Informative advertising will be used for new variants are launching

Newspapers would be the most effective media for targeting Industrial buyer

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Sales Promotion:

Free 1 Kg packs of Aashirvaad can be in regions where the penetration of branded

atta is low

Free packs of Aashirvaad salt to be bundled with Aashirvaad 1 Kg atta Pack

The company can collaborate with all the fast food retailing chains can be given

along with Aashirvaad atta packs

Free samples through distribution at posh public areas such as malls and multiplexes.

Cookery contest for Housewives.

Kolam contest for Housewives.

2. Pillsbury:

Pillsbury is a global food brand that is trying to replicate its success in Indian market.

The brand was launched in India in 1998 as a result of a joint venture between Godrej

and Selviac Nederland BV ( Pillsbury). Pillsbury has a rich heritage dating back to 1869. It

started as a flour milling company named A Pillsbury and is now one of the largest brands in

the food products market in the world. In 2002, the company was taken over by General

Mills.

When Pillsbury was launched, it had the option of coming with the blockbuster

global "ready to eat products". But it chose a contra approach heeding to the advice given by

Mckinsey “GO Basic”. So Pillsbury launched Pillsbury Chakki fresh atta ( pounded wheat

flour) in the Indian market. It was a bold move because the atta market is a commodity

market and the branded atta market is only 3% of the total atta market in India estimated to

be around 23,000 crore.

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Pillsbury chakkifresh atta was launched in India on the platform of softness. Since

ordinary Roti’s lost their softness after some time, Pillsbury claimed that its Roti’s retained

the softness for over 6 hours. This appealed to the modern homemakers since Rotis can be

kept in tiffin boxes without worrying about softness.

It was a tough task for Pillsbury to enter into Indian kitchens since the households

followed traditional way of buying wheat and giving them to flour mills. Pillsbury realized

that food products marketing are more of Repertoire marketing where more variety is the

key to success. Pillsbury decided to move up the value chain by coming out with a range of

products.

The first one was the launch of Oven cake mixes in 1999. The product failed in the

market because of poor penetration of microwave ovens. Taking a lesson from this failure,

came the successful launch of Cooker Cake mixes in 2000 ie cakes can be made by using

pressure cookers.

Despite these launches, Pillsbury was not happy with the way the atta brand was

moving. A marketing research showed that health was a leading attribute that customers

look for when they buy food products.

In 2004 the product was relaunched in the health platform with emphasis on “ good

to heart” since heart problems are on a rise in Urban market. The idea is to promote the idea

that whole wheat atta is good for your family’s heart .The latest positioning is “ Dil se Khao

“ reinforces the health positioning. The brand is endorsed by Healthcare foundation.

Using the innovative differentiation and positioning, Pillsbury is having a market

share of 8% in the branded Atta market.

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3. Annapurna:

Launched nationally in 1998, Annapurna Atta was aimed at helping the homemakers

to provide wholesome tasty nutrition to their family. After its successful launch, in a pursuit

to stay ahead and cater to the changing mindsets of the Indian consumer, Annapurna Atta

was fortified with extra iron and vitamins, which are essential for children during their

formative years. It was awarded the prestigious ‘Awaaz Consumer Award” for the most

preferred brand of atta for two successive years in 2006 and 2007. Annapurna atta continues

to promise soft tasty rotis as it is made from the choicest of grains, brought fresh from the

farms, cleaned three times and packed in the most hygienic conditions.

Marketing Strategies for Annapurna:

1. Introduce the 100% Sharbati Atta for high class people. This is produced from an

exquisite, premium Sharbati wheat from the potash rich soil of central India. Grown

and nurtured in the most fertile black soil of Madhya Pradesh it is a rare gift of

nature.

2. Introduce Annapurna Multi Grain Atta is a healthy blend of six natural grains like

whole wheat, maize, oats, soy, Bengal gram and barley. It’s a good source of fibers

with proteins and essential nutrients. It contains essential nutrients like iron, folic

acid and zinc. Considering the current lifestyle patterns, these nutrients are essential.

Protein is needed for healthy growth & development while a diet high in fibre helps

to maintain a healthy digestive system. Iron is an important nutrient for stamina and

it has folic acid for the healthy food formation. In all, a complete diet.

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3. Due to vast the marketing network by Hindustan lever, push the sales throughout the

country.

4. Aggressive Advertisements in television targeting Indian Housewife.

5. Tie up with big malls and supermarkets.

6. Free gift for Annapurna salt along with Annapurna Atta for a specific period.

4. Kuthuvilakku:

1. Due to the diversification of different business and good cash position, purchase the

good quality of wheat in bulk quantity at the time of wheat cultivation period from

Feb to May and stock in to different warehouses in Tamil Nadu. And same time,

high warehousing and place available in their mill premises, throughout year, they

will give good wheat flour in the market.

2. Tie up with TamilNadu Civil Supplier corporation, Company supplies Kuthuvilakku

brand wheat flour under PDS System.

3. Tie up local Women’s self help group and distribution through them they are

increasing their sales quantity.

4. Arranging get together with main distributors for motivating their sales volume.

5. Provide cash discount to the wholesalers for the big volume of sale.

6. Arranging cookery contest for housewives in selected town.

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4. Ramalinga:

1. Tie up with various educational institutions in southern district of Tamilnadu,

supplies Ramalinga brand wheat flour to their students hostels.

2. Ramalinga brand from one of the Prestious Industrial giant Jayavillas. They have

their own separate transport division also. They have delivered the Ramalinga wheat

flour to the whole sellers and retailers through their transport division at concessional

freight and on time delivery also.

3. Arranging Extra product offers for limited period

4. Provide Trade Discount for selected wholesalers’ based on their sales volume.

5. Scratch Coupons available in wheat flour pocket.

6. Sponsorship for conducting village level sports activities in southern region of

Tamilnadu under Ramalinga Brand.

6. Lion:

1. The company can collaborate with all the major hotels in southern parts of

Tamilnadu and directly can deliver their wheat flour.

2. In their bulk level of packaging, they pack T shirts along with Lion brand flour in 90

kg pack. This 90 kg pack particularly purchased by the hotles and this T shirt

marketing strategy is attracted by the Parrotta Master.

3. Purchase high quality wheat and maintain their wheat flour quality throughout the

year in the same manner.

4. Arranging extra cash discount or price off for extra load purchase by wholesalers in

the particular month.

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5. Every year company honouring the best wholesalers and retailers based on their sales

volume.

6. Every year company spending some of their profit to their laboratory for improving

quality.

7. Naga:

1. Due to the diversification of different business and good cash position, purchase the

good quality of wheat in bulk quantity at the time of wheat cultivation period from

Feb to May and stock in to different warehouses in Tamil Nadu. And at sametime,

high warehousing and place available in their mill premises, throughout year, they

will give good wheat flour in the market.

2. They have separate transport divisions also. They have delivered the Naga wheat

flour to the whole seller and retailer through their transport division at concessional

freight and on time delivery also.

3. Free gift for Naga Detergent soap along with Naga wheat flour for a specific period.

4. Every year company is arranging the family tour for honoruing the best whole seller

and retailers based on their sales volume.

5. Collaboration with multinational companies like Parle, Britania, ITC and Hindustan

Lever and fulfilling their requirement.

6. Arranging kolam drawing competitions for housewives.

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8. Narasus:

1. Due to the vast marketing network of Narasus, push as the sales throughout the

TamilNadu.

2. Aggressive Advertisements in Television and Newspaper targeting Housewives.

3. Provide cash discount to the whole seller for the big volume of sale.

4. Arranging cookery contest for housewives in selected town.

5. Arranging Extra product offers for limited period

6. Provide Trade Discount for selected whole sellers based on their sales volume.

7. Scratch Coupons available in wheat flour pocket.