Presentation of the projectPresentation of the project

““Choice of effective measures and methods Choice of effective measures and methods for sales stimulation as factors of business for sales stimulation as factors of business

activity growth as an example of activity growth as an example of “Machinery factory 342”“Machinery factory 342”

The subject of the study: The subject of the study: Revealing more effective methodsRevealing more effective methods of of trade stimulation as an example of trade stimulation as an example of

“Machinery factory 342”“Machinery factory 342”

Tasks of the projectTasks of the project

1.1. Definition of theoretical aspects of the market.Definition of theoretical aspects of the market.

2.2. Analyzing the sale activity at the “Machinery Analyzing the sale activity at the “Machinery factory 342”factory 342”

3.3. Revealing and recommendations for the Revealing and recommendations for the development of effective methods of development of effective methods of stimulation.stimulation.

IntroductionIntroduction In today’s economic situation the problem of In today’s economic situation the problem of

goods and service sale, and correspondingly goods and service sale, and correspondingly gaining profit is crucial and important. Effective gaining profit is crucial and important. Effective methods of stimulation and application of methods of stimulation and application of different forms of advertising are actual for different forms of advertising are actual for domestic enterprises and businesses. Still, many domestic enterprises and businesses. Still, many companies often spend unreasonably much companies often spend unreasonably much money on advertising of their product. And of money on advertising of their product. And of course such policy may bring to negative results. course such policy may bring to negative results.

From the history of the Machinery From the history of the Machinery factory 342factory 342

““Mechanical factory 342” started its activity in 1946. From small Mechanical factory 342” started its activity in 1946. From small workshops to modern they have transformed into modern and workshops to modern they have transformed into modern and developing company. In 1950s it was producing only boilers, and developing company. In 1950s it was producing only boilers, and since 70s it has been producing constructions for anti-rocket since 70s it has been producing constructions for anti-rocket systems of defense. By the opening of the Olympiad 1980 the systems of defense. By the opening of the Olympiad 1980 the factory had produced metal constructions for football and athlete factory had produced metal constructions for football and athlete complex and multi-purpose sport hall. In 80s the factory put into complex and multi-purpose sport hall. In 80s the factory put into production small-scale sewerage systems. In 1995 it started the production small-scale sewerage systems. In 1995 it started the production of press-vibrating items according to technology and production of press-vibrating items according to technology and equipment of German company “HENKE”, which is one of the world equipment of German company “HENKE”, which is one of the world leaders on production lines and construction engineering. The leaders on production lines and construction engineering. The produce of the factory meets the demands of the world market and produce of the factory meets the demands of the world market and has high level automation system. The clients of the factory are has high level automation system. The clients of the factory are building offices (52%), private firms, also individuals (48 %).building offices (52%), private firms, also individuals (48 %).

Ideas, aims and the role of trade Ideas, aims and the role of trade stimulation in market policystimulation in market policy

For more or less successful operating of the For more or less successful operating of the business on the market except trading and price business on the market except trading and price policy, it’s very important to follow available and policy, it’s very important to follow available and trading policy.trading policy.

To stimulate trading means to inform future To stimulate trading means to inform future customers (buyers) about your business, goods customers (buyers) about your business, goods and services offered. It also involves transport, and services offered. It also involves transport, storage, safety, recovering, promotion of the storage, safety, recovering, promotion of the goods, delivery to retail and wholesale firms, the goods, delivery to retail and wholesale firms, the selling itself. Thus, selling is a system of all means selling itself. Thus, selling is a system of all means carried out after the produce has been exited.carried out after the produce has been exited.

Complex Program for market Complex Program for market stimulation (CPS)stimulation (CPS)

CPS involves the following activities:CPS involves the following activities:- The participant of the market decides how intensive should be The participant of the market decides how intensive should be

stimulation;stimulation;- Who can take part in the program;Who can take part in the program;- How to advertise the stimulating actions;How to advertise the stimulating actions;- How long it will continue since it started;How long it will continue since it started;- What means should be chosen for it.What means should be chosen for it. Trade stimulation means:Trade stimulation means:- Price stimulation;Price stimulation;- Real offers;Real offers;- Active offers.Active offers.The instruments for stimulation can be:The instruments for stimulation can be:- Rewards added to the salary;Rewards added to the salary;- Premium for achieving significant results;Premium for achieving significant results;- Gaining points some of which are possible to change for valuable gifts;Gaining points some of which are possible to change for valuable gifts;- Tours for traders having gained great success in their activity.Tours for traders having gained great success in their activity.

Market policy of the factoryMarket policy of the factory

The development and application of new methods to The development and application of new methods to stimulate selling of goods is carried out by special stimulate selling of goods is carried out by special department aimed to advertising not only each department aimed to advertising not only each commodity but also its brands and the produce. In the commodity but also its brands and the produce. In the whole for this purpose the Factory 342 has to direct its whole for this purpose the Factory 342 has to direct its market policy to fundamentally vital interests of the market policy to fundamentally vital interests of the customers.customers.The tasks of advertisement period depend on the The tasks of advertisement period depend on the seasons. Thus , in winter the ads are mainly of seasons. Thus , in winter the ads are mainly of mentioning character, while in other times of the year mentioning character, while in other times of the year they are exhortative. they are exhortative.

Marketing policyMarketing policy

Marketing policy of the company involves the Marketing policy of the company involves the following organizing actions:following organizing actions:-Prices kept stable;Prices kept stable;-Spendings on advertisements are unlimited;Spendings on advertisements are unlimited;-Growth of trade stimulation;Growth of trade stimulation;-Wide scope of sellings;Wide scope of sellings;-Searching the new segments on the market.Searching the new segments on the market.The important part of advertising policy is its The important part of advertising policy is its planning. The expenses an advertisements are planning. The expenses an advertisements are planned on the basis of percentage deductions from planned on the basis of percentage deductions from the planned profit. It counts to 10%.the planned profit. It counts to 10%.

The role of ads in businessThe role of ads in business

Advertisement is any paid form of impersonal Advertisement is any paid form of impersonal presentation and promotion of ideas, goods and presentation and promotion of ideas, goods and services which is the most important factor in services which is the most important factor in goods trading.goods trading.The goal of the company are:The goal of the company are:-Scoping of the local market ;Scoping of the local market ;-Public selection;Public selection;-Low price policy. The company tends to low the Low price policy. The company tends to low the expenses on the advertisement of their produce;expenses on the advertisement of their produce;-To create close contacts with customers.To create close contacts with customers.

The most effective means of advertisingThe most effective means of advertising

Television.Television. This mean of ads has always been overloaded by different This mean of ads has always been overloaded by different kind of information. It has low affect on the customers and zero trade kind of information. It has low affect on the customers and zero trade effectiveness.effectiveness.Radio.Radio. Actually radio satisfies the firms’ demands not badly and serves Actually radio satisfies the firms’ demands not badly and serves as a good reminder about the business and contributes to customer’s as a good reminder about the business and contributes to customer’s attention.attention.Fairs and ExhibitionsFairs and Exhibitions are effective means to advertise goods are effective means to advertise goods differently.differently.NewspapersNewspapers are the most effective means of ads. The customers are are the most effective means of ads. The customers are usually used to apply to the information given in newspapers.usually used to apply to the information given in newspapers.Leaflets. Leaflets. These means have been used for advertising the goods only These means have been used for advertising the goods only recently and are mostly effective.recently and are mostly effective.Bill-boards. Bill-boards. A new mean for advertising. The external view of boards is A new mean for advertising. The external view of boards is easy to remember, frequently used in business. They are also easy to remember, frequently used in business. They are also profitable.profitable.

ChartChart 3 3. «. «Making budgetMaking budget».».

Ads250 000

Newspapers1 900

Bill-boards 10 000

Leaflets6 500

Exhibitions115 320

Television5 000

Radio66 280

The ways to decrease the expenses and increase The ways to decrease the expenses and increase the effectiveness of advertising.the effectiveness of advertising.

Recommendations:Recommendations:1. Television as a low-effective mean to stimulate business should be 1. Television as a low-effective mean to stimulate business should be excluded wholly.excluded wholly.2. Radio can be used only in winter time to remind and attract the 2. Radio can be used only in winter time to remind and attract the customers to the goods produced by the company. Such change will customers to the goods produced by the company. Such change will really bring to decreasing the expenses on ads twicely.really bring to decreasing the expenses on ads twicely.3. Fairs and exhibitions are rather often used in advertising campaign 3. Fairs and exhibitions are rather often used in advertising campaign of the company but expenses on them should be the same.of the company but expenses on them should be the same.So, the company should accept that to use leaf-lets for advertising the So, the company should accept that to use leaf-lets for advertising the produced goods and services must be widely used. The expenses on produced goods and services must be widely used. The expenses on this type of ads are possible to be increased to 25-30%. This way of this type of ads are possible to be increased to 25-30%. This way of advertising the goods won’t involve additional expenses if it’s carried advertising the goods won’t involve additional expenses if it’s carried out simultaneously with radio ads.out simultaneously with radio ads.It is reasonable to use street ads as means of sales stimulation.It is reasonable to use street ads as means of sales stimulation.

ConclusionConclusion

Contemporary market demands are rather greater Contemporary market demands are rather greater than just producing good commodities to fix than just producing good commodities to fix attractive price and make them available for attractive price and make them available for customers. In terms of economic and financial crisis customers. In terms of economic and financial crisis the competition among the producers of the same the competition among the producers of the same goods aimed to attract more and more clients or goods aimed to attract more and more clients or customers is becoming crucial.customers is becoming crucial.Henceforth to become profitable the companies Henceforth to become profitable the companies should choce and use the most effective means of should choce and use the most effective means of trade stimulation.trade stimulation.