project on sales promotion

8/6/2019 Project on Sales Promotion

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A STUDY ON SALES PROMOTION IN MAGNANIM SYSTEMS

PVT LTD IN PUDUCHERRY

SUMMER PROJECT REPORT

It for sample only dont edit this sample project it

work of other



ACKNOWLEDGEMENT

First and foremost, I thank the God for his substantial blessing and mercy at all stages in the

completion of the project.

I take this opportunity to express my deep sense of gratitude to Shri.N.Kesavan, Founder

Chairman, Shri.M.Dhanasekaran, Managing Director and Shri.S.V.Sugumaran, Vice-

Chairman of our college for their good wishes for this project.

I express my immense gratitude to our Principal Dr.V.S.K.Venkatachalapathy for his

support and encouragement for the completion of my project.

I extend the immense gratitude to the Head of the Department Mr.S.Jayakumar for his

motivation, inspiration, and encouragement for the completion for my project.

The valuable and unflinching requital support in this Endeavor Mrs.K.Vidhya my internal

guide whose assistance was immeasurable to the completion of this project.

I express my earnest gratitude to Mr.M. Magesh CEO of Magnanim system Pvt Ltd,

Puducherry for giving me an opportunity to do a project in this reputed organization.

I also thank all the customers of Magnanim system Pvt ltd, puducherry who were

instrumental in the completion of this project.

I would also like to thank all the staff of the organisation for helping me directly and

indirectly to conclude this work. Last, but not the least, my heart felt gratitude to my parents,

relatives and my friends for their constant encouragement, support, help and valuable advice to

make this project a success.



TABLE OF CONTENTS

LIST OF TABLES

LIST OF CHARTS

CHAPTER

NO.TITLE

PAGE

NO.1 INTRODUCTION 1

2 REVIEW OF LITERATURE 63 OBJECTIVES OF THE STUDY 134 RESEARCH METHODOLOGY 145 DATA ANALYSIS AND INTERPRETATION 186 FINDINGS, SUGGESTIONS &

RECOMMENDATIONS OF THE STUDY 457 CONCLUSION 478 LIMITATION AND SCOPE OF THE STUDY 48

ANNEXURES

1. QUESTIONNAIRE - 50

2. BIBLIOGRAPHY - 53



ABSTRACT

This project entitled “A study on Sales Promotion with reference to Magnanim system

Pvt Ltd in puducherry” is intended to determine the sales increase, purchasing behaviour of thecustomer, product competitor and market potential.

Primarily the well defined objectives are framed according to the study. Then

questionnaire is prepaed based on the defined objectives. The prepared questionnaire is used to

get the direct response from the customers.

The response given by the customers are analyzed and interpret using different types of

statistical tools such as percentage analysis, weighted average method.

From the analysis some general findings are araised and that are more related with the

framed objectives for this study. According to the findings the suggestion and recommendations

are given and the conclusions are also based on the findings which will be more helpful for the

organization.



Table No. List Of Tables Page No.

5.1 GENDER WISE RESPONDANTS DETAILS 18

5.2 AGE WISE RESPONDANTS DETAILS 195.3 QUALIFICATION WISE RESPONDENTS DETAILS 20

5.4 OCCUPATION WISE RESPONDENTS DETAILS 21

5.5 PURCHASE FROM MAGNANIM SYSTEM

PRODUCT ALREADY 22

5.6 HOW DO YOU KNOW ABOUT THE MAGNANIM

SYSTEM PRODUCT 23

5.7 WHICH TYPE OF PRODUCT DO YOU LIKE 24

5.8 WHY DID YOU CHOOSE THE MAGNANIM

SYSTEM 25

5.9 EXPECTING FROM MAGNANIM SYSTEM FOR

YOUR NEXT PURCHASE 26

5.10 FACTOR EXPECT MORE FROM MAGNANIM

SYSTEM PRODUCT 27

5.11 DIFFER FROM COMPETITONS FOR SALES

PROMOTION 28

5.12 MESSAGE IS BEING RECEIVED FROM OUR

ADVERTISING 29

5.13 MEDIA IS MOST EFFECTIVE FOR DELEIVERING

OUR MESSAGE 30

5.14 WHICH TOOL IS PREFER TO PURCHASE OUR

PRODUCT 31

5.15 SYSTEMS BUY IN ONE YEAR 32

5.16 SYSTEMS REPLACE IN ONE YEAR 33

5.17 RATE THE PERFORMANCE OF PRODUCT 34

5.18 RATE THE PERFORMANCE OF SERVICE 35

5.19 RATE THE PERFORMANCE OF QUALITY 36

5.20 RATE THE PERFORMANCE OF PRICE 37

5.21 RATE THE PERFORMANCE OF RELIABILITY 385.22 CHANGE IN THE DEVELOPMENT OF SELLING

THE PRODUCT 39

5.23 DESIRABLE QUALITIES THAT WE LACK 40

5.24 PURCHASING THE PRODUCT IN NEXT YEAR 41

5.25 WEIGHTED AVERAGE METHOD 42

5.26 OCCUPATION OF THE RESPONDENTS *

PURCHASING TYPE OF PRODUCT

43



5.27 OPINION OF THE CUSTOMER ABOUT THE TOOLPREFER TO PURCHASING PRODUCT * BUYING

SYSTEM IN ONE YEAR

44

chart No. List Of charts Page No.

5.1 GENDER WISE RESPONDANTS DETAILS 18

5.2 AGE WISE RESPONDANTS DETAILS 19

5.3 QUALIFICATION WISE RESPONDENTS DETAILS 205.4 OCCUPATION WISE RESPONDENTS DETAILS 21

5.5 PURCHASE FROM MAGNANIM SYSTEM

PRODUCT ALREADY 22

5.6 HOW DO YOU KNOW ABOUT THE MAGNANIM

SYSTEM PRODUCT 23

5.7 WHICH TYPE OF PRODUCT DO YOU LIKE 24



5.8 WHY DID YOU CHOOSE THE MAGNANIM

SYSTEM 25

5.9 EXPECTING FROM MAGNANIM SYSTEM FOR

YOUR NEXT PURCHASE 26

5.10 FACTOR EXPECT MORE FROM MAGNANIMSYSTEM PRODUCT 27

5.11 DIFFER FROM COMPETITONS FOR SALES

PROMOTION 28

5.12 MESSAGE IS BEING RECEIVED FROM OUR

ADVERTISING 29

5.13 MEDIA IS MOST EFFECTIVE FOR DELEIVERING

OUR MESSAGE 30

5.14 WHICH TOOL IS PREFER TO PURCHASE OUR

PRODUCT 315.15 SYSTEMS BUY IN ONE YEAR 32

5.16 SYSTEMS REPLACE IN ONE YEAR 33

5.17 RATE THE PERFORMANCE OF PRODUCT 34

5.18 RATE THE PERFORMANCE OF SERVICE 35

5.19 RATE THE PERFORMANCE OF QUALITY 36

5.20 RATE THE PERFORMANCE OF PRICE 37

5.21 RATE THE PERFORMANCE OF RELIABILITY 38

5.22 CHANGE IN THE DEVELOPMENT OF SELLING

THE PRODUCT 39

5.23 DESIRABLE QUALITIES THAT WE LACK 405.24 PURCHASING THE PRODUCT IN NEXT YEAR 41



CHAPTER 1

INTRODUCTION

1.1 Company profile:

Magnanim systems an ISO 9001:2000 certified company (certifed for repairing/servicing of

computers and pheriperal) is a full support computer sales, network solution and service provider,

headqartered in the union territory of pondicherry having branches at Cuddalore and Karaikal.

Moreover we were providing services to Mahe and Yanam by means of appointing residential

engineers.

Back in 1997, they recongnized the need for a computer service company to provide personal,

yet fully technical advice and first-rate computer service that the average home or small business

could afford. From the original 300 sq/ft office that have grown to become a 2,500 sq/ft Retail

outlet with a product showroom, service department, training center, system fit-up area,

component warehouse, corporate sales department and administrative offices.

In that magnanim ystems understand the challenges of today’s highly competitive business

environment. To gain and retain our business, they are constantly analyzing, redefining the way

we can serve best to our clients. In view of the objective to provide world-class product and

service to our customers they have made a strong association with industry majors like IBM, HP,

Intel, AMD, TVSE, Canon as their proud and trusted business partner.

At Magnanim systems, they understand the meaning of the work ‘service’ and they are

continually improving the product line, ordering and delivery systems. From standalone systems

to multi-server metworks, from Novell to the multi level GUI server solutions, they have the

resources, the talent, the facilities and the desire to be the primary source for all your technology

needs.

1.2Terms and condition

The equipment will be inspected, and preventive maintenance carried monthly ones

without any call from the client place.

Service personnel will have free access to the installation an will receive reasonable help

and assistance from the client.

Maintenance shall be rendered only during working hours of the concern. If required

urgent it will consider as the special case the service will be rendered.



The customer is requested to call magnanim systems for change or relocated of the

equipments.

In case malfunctioning part is not repairable at the client’s site, it shall be taken to

Magnanim systems premises and either will be repaired or replaced. In case the original

part is replaces, the cost of the replacement will be payable by the customer at rated

prevalent at the time of replacement if the part is not covered in the AMC.

In case material is supplied to the customer under this contract, and whether it is

chargeable, applicable excise, sales tax and other government levies that may be charged

are payable by the customer only the service will be rendered at free of cost.

The agreement shall be deemed to have executed at puducherry. Any dispute shall be

subject to the exclusive jurisdiction of the court of pondicherry. Further this contract is

government by the laws of the republic of INDIA.

1.3 Registered/Headoffice :

25, First floor,

Needarjappaiyar Street,

Puducherry-605001

Phone: 0413-4201112

Telefax : 0413-4209050

Mobile: 98947-82229/32828

1.4 Nature of gains :

Servicing of- Computer motherboards

• -Add-on cards

• -Chip level

• Monitors

• Printer

• Scanners

• Optical drives

• Magnetic Drives

• Power supplies

• UPS.



1.5 Applicable for Replacement:

• Mother board-Ram-CPU

• Hard disk

• Color/Mono monitor

• Keyboard-mouse

• Floppy Drive

• Printer

• Display cards

• Ethernet card

• Network cable/ connectors

• Scanner

• Power cards

• Switch mode power supply

• CD ROM Drive

• Sound cards

• Speakers

• Hubs

•UPS

1.6 Installation & configuring:

• Softwre

• Network

• Structured cabling

• Server tuning

• Troubleshooting

1.7 Data recovery:

All media recovery

Crash proof

Virus affected recovery

Logical/ physical recovery

Data wiping



1.8 Sales:

Computer systems

Printers

Software

Acessories

Digital Equipments

1.9 Support:

Free on-line troubleshooting

On-line support

Annual maintenance support

Per call maintenance

Free E-mail solutions

E-management solutions

Couputer consultancy

Network designing

Upgrade soultions



NEED FOR STUDY

This survey is to identify and focus on the sales promotion of Magnanim system.

To accomplish this, a survey was conducted to gather the impartial information about the

sales promotion. The study was conducted for the below needs.

To improve the sales increase in competetive market.

To study the purchasing behaviour of the customer.

To study market potential of magnanim system.

To improve tools and technique of sales promotion .

To study the product competitor.



CHAPTER 2

REVIEW OF LITERATURE

INTRODUCTION

In a time when customers are exposed daily to a nearly infinite amount of promotional

messages, many marketers are discovering that advertising alone is not enough to move members

of a target market to take action, such as getting them to try a new product. Instead, marketers

have learned that to meet their goals they must use additional promotional methods in

conjunction with advertising.

Other marketers have found that certain characteristics of their target market (e.g., small butgeographically dispersed) or characteristics of their product (e.g., highly complex) make

advertising a less attractive option. For these marketers better results may be obtained using

other promotional approaches and may lead to directing all their promotional spending to non-

advertising promotions.

Finally, the high cost of advertising may drive many to seek alternative, lower cost

promotional techniques to meet their promotion goals.

Sales promotions are used widely in many industries and especially by marketers selling to

consumers. We will see that the objectives of sales promotion are quite different than advertising

and are specifically designed to encourage customer response.

DEFINITION

An activity designed to boost the sales of a product or service. It may include an advertising

campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps,

arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary

price reductions, door-to-door calling, telemarketing, personal letters on other methods".



What is Sales Promotion?

Sales promotion describes promotional methods using special short-term techniques to

persuade members of a target market to respond or undertake certain activity. As a reward,

marketers offer something of value to those responding generally in the form of lower cost of

ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of

additional value-added material (e.g., something more for the same price).

Sales promotions are often confused with advertising. For instance, a television

advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may

give the contest the appearance of advertising. While the delivery of the marketer’s message

through television media is certainly labeled as advertising, what is contained in the message,

namely the contest, is considered a sales promotion. The factors that distinguish between the two

promotional approaches are:

1. whether the promotion involves a short-term value proposition (e.g., the contest

is only offered for a limited period of time), and

2. the customer must perform some activity in order to be eligible to receive the

value proposition (e.g., customer must enter contest). The inclusion of a timingconstraint and an activity requirement are hallmarks of sales promotion.

Sales promotions are used by a wide range of organizations in both the consumer and

business markets, though the frequency and spending levels are much greater for consumer

products marketers. One estimate by the Promotion Marketing Association suggests that in the

US alone spending on sales promotion exceeds that of advertising.

Consumer Sales Promotion

Consumer sales promotions encompass a variety of short-term promotional techniques

designed to induce customers to respond in some way. The most popular consumer sales

promotions are directly associated with product purchasing. These promotions are intended to

enhance the value of a product purchase by either reducing the overall cost of the product



(i.e., get same product but for less money) or by adding more benefit to the regular purchase price

(i.e., get more for the money).

While tying a promotion to an immediate purchase is a major use of consumer sales

promotion, it is not the only one. As we noted above, promotion techniques can be used to

achieve other objectives such as building brand loyalty or creating product awareness.

Consequently, a marketer’s promotional toolbox contains a large variety of consumer

promotions.

A producer must also guard against the possible negative effect of discounting on a

brand's reputation.

Disanta Ojah:

Sales promotions can be directed at either the customer, sales staff, or distribution channel

members (such as retailers). Sales promotions targeted at the consumer are called consumer sales

promotions. Sales promotions

targeted at retailers and wholesalers are called trade sales promotions. Some sale promotions,

particularly ones with unusual methods, are considered gimmicks by many.Consumer sales

promotion techniques

♦ Price deal: A temporary reduction in the price; this includes a happy hour

♦ Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on

the package.

♦ Price-pack deal: The packaging offers a consumer a certain percentage more of the product

for the same price (eg: 25% more free).

♦ Coupons: coupons have become a standard mechanism for sales promotions.

♦ Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for

delivery.

♦ On-shelf couponing: Coupons are present at the shelf where the product is available.

♦ Checkout dispensers: On checkout the customer is given a coupon based on products

purchased.



♦ On-line couponing: Coupons are available on line. Consumers print them out and take them to

the store.

♦ Rebates: Consumers are offered money back if the receipt and barcode are mailed to the

producer.

♦ Contests/sweepstakes/games: The consumer is automatically entered into the event by

purchasing the product.

Methods of sales promotion

There are many consumer sales promotional techniques available, summarized in the table

below:

Price promotions

Price promotions are also commonly known as" price discounting"These offer either

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Increased sales gained from price promotions are at the expense of a loss in profit - so these

promotions must be used with care.

A producer must also guard against the possible negative effect of discounting on a brand's

reputation

Pauline Douglas

Sales promotion is very much a social science, that takes into consideration that humans are

fundamentally creatures of habit, and will take a new product or service into their lives based

upon the following principals:

a. Introduction b. Perception c. Familiarity d. Trust

The challenge of Sales Promotion is to influence and modify a consumers purchasing habits

by developing the perception, familiarity and trust around a new product or service. The

objective is the gaining of new and repeat customers.



It is considered that if a consumer is introduced to a product or service three times, they will

have gained enough familiarity to trial a product or service. It is further considered that if a

consumer purchases a product or service three times, they will have gained the trust to integrate

the product or service into their regular buying habits.

Consumers are introduced to new products and services in one, or all of the following ways

(in order of importance and impact)

a. Word of Mouth b. Point Of Sale c. Media Promotion

a.Word of mouth promotion (reputation) is by far the most powerful form of sales

promotion - particularly if introduced by a person that the consumer knows and trusts, such as a

friend or family member. Sales Representatives and Sales Assistants also play a key role to the

verbal promotion of products and services.

b.Point of Sale (POS) Promotion is the next most powerful way in which consumers

will be brought face to face with a new product or service. The challenge is to gain the interest

and trust of the consumer through carefully thought out packaging, display and pricing.

Many food, beverage and cosmetic industries will combine the power of word of mouth and

POS promotion, to incorporate a "Sampling Promotion" to enhance the effectiveness of Sales.

Sales promotion also looks to a variety of Media Strategies to gain consumer awareness

and familiarity, such as advertising (newspaper, magazine, radio and t.v., direct marketing (snailmail advertising and telemarketing) and the new medium of the internet (internet marketing and

web design).

When launching or re-launching a product or service, these factors should be taken into

consideration for future success.

Article by Pauline Douglas

Peattie. k International journal of service industries management

Sales promotion as part of the communication mix is virtually ignored within the services

marketing literature, in comparison with personal selling and "above-the-line" advertising.

However, "below-the-line" techniques have been growing in their extent, credibility and

sophistication during the last two decades. They have now reached the point where they deserve

consideration in relation to other areas of marketing practice beyond their fast-moving consumer



goods (FMCG) origins. The different tools which make up the promotional toolkit have also

reached a point where they deserve individual consideration instead of being bundled together.

Seeks to demonstrate how one such tool, the promotional competition, represents a significant

opportunity for services marketers. Reviews the literature relating to sales promotion to build a

case for the suitability of competitions for services marketing, and presents the findings of a

survey of 188 services-sponsored competitions to explore the nature and extent of competitions'

use in practice.

From Andrew Johnson, Director-General of The VA

Ensuring a positive experience for the recipient of a gift voucher can make all the

difference in the success a sales promotion since brand identity will be reflected by the quality of

service and gift that are delivered. The goal of a gift voucher or gift card should be to make a

lasting and positive impact through sales promotion and one way of ensuring that the recipient

will be left with something special to remember is to use and experience gift vouchers.

Several members of The VA provide ‘chance in a lifetime’ experiences as gift-vouchers

and I thought that this would be a great opportunity to highlight the benefits of utilising

experiential sales promotions as a means of building enduring relationships with the consumer.

Red Letter Days was a pioneer of the concept of offering gift experience vouchers that

promise exciting days out and the opportunity to try unusual activities – the gift with a difference

for both corporate and consumer markets.

Zachary Soreff , director of sales & marketing at Red Letter Days explains the value of an

experiential reward: “Experiences offer a more interactive and tuned-in way of promoting a

product which, in turn, allows audiences to become more integrated with the brand. They are a

popular tool for sales promotion because we are engaging customers emotionally with the brands

by giving them a memory to cherish.”

There is certainly an emotional ‘touch point’ for any company, whether it is speed and

excitement to attract the younger market or comfort and luxury to attract a more refined audience.

It is the job of the experiential provider to discover the activity or experience that will best

represent the brand to its intended audience.



Tim Bishop of eXhilaration explains that by “aligning your brand with a relevant

experience you can help to create a more exciting perception of your business in the customer’s

mind.”

Exhilaration are experts in providing vouchers for adrenaline experiences such as Ferrari

driving, bungee jumping and adventure weekends but also offer less extreme pursuits including

spa days and gourmet cruises. “The impact of sending someone over a mountain with nothing but

a bit of elastic to hold onto will certainly be a lasting one” he continued, “but not necessarily one

that everybody would enjoy.”

The Full Experience Company offers a wide choice with its trademarked Smart Box™

gift packages. “The secret to its success”, explains Benoit Linossier, managing director, “is that

the Smart Box appears to be worth a lot more than it really costs”, which just goes to show that a

gift does not necessarily have to rely on its monetary worth to be appreciated and valued.

A great example of how experiential vouchers can add value to a sales promotion

without pushing up the costs is the campaign that The Full Experience ran with Nokia in France.

Benoit explained: “By offering an Adventure Smart Box instead of a discount, customers were

encouraged to purchase a top of the range mobile phone instead of the cheaper alternative as they

felt that they were getting a lot more for their money with an experience.” This demonstrates just

how valuable experiential gifts can be; that essentially, it’s the memories that really count.



CHAPTER 3

OBJECTIVES

PRIMARY OBJECTIVES:

To find out the sales promotion in magnanim systems.

SECONDARY OBJECTIVES:

1. To find out sales increase in competetive market.

2. To find tools and techniques of sales promotion that is used in the organisation.

3. To analyze the purchasing behaviour of the customer.

4. To analyze the product competitor in the market.



CHAPTER 4

RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research problem. It is a plan of

action for a research project and expains in detail how data are collected and analyzed. Research

Methodology may be understood as a science of studying how research is done scientifically. It

can cover a wide range of studies from simple description and investigation to the construction of

sophisticated experiment.

A clear objective provides the basis of design of the project. Since the main objective of this

study is to identify the customers preference, expectation and perception. It was decided to use

descriptive research design include, surveys and fact-finding enquires of different kinds, which

found out to be the most suitable design in order to carry out the project.

4.1 MEANING OF RESEARCH

Research is an art of scientific investigation. The advanced learner’s dictionaries of current

English lay down the meaning of research as, “a careful investigation (or) inquiry especially

through search for new facts in any branch of knowledge”. Redmen and Mary research as a

“systematic effort to gain knowledge”.

4.2 RESEARCH DESIGN

A Research design is plan that specifies the objectives of the study, method to be adopted in

the collection of the data, tools in analysis of data and helpful to frame hypothesis. “A research

design is the arrangement of condition for collection and analysis of data in a manner that aims to

combine relevance to research purpose with ecnomy in procdure”.

Research design is needed because it facilitates the smooth sailing of the various project

operations, thereby making the project as efficient as possible yielding mazimal information with

minimal expenditure of effort time and money. Also it minimizes bias and maximizes the

reliability of the data collected.



4.3 NATURE AND SOURCE OF DATA

Primary data

The data which are collected as fresh for the first time and thus happen to be original in

character is called primary data.

The primary data was collected from the customers of Magnanim systems through a direct

structured questionnaire. Respondent has filled the questionnaire.

4.4 SAMPLING SIZE AND TECHNIQUE

Type of universe

The first step in developing any sample is clearly defining the set of objectives, technically

called the universe, to be studied. Here the universe is the customer of Magnanim systems.

Sampling plan

Due to enormity of the cost and time involved in collecting information from all the

respondents, it becomes a complusion to choose represent sample of population. Sample plan

explains the sampling unit, sample size and sampling method.

Sampling method

Sampling method followed by the investigator is simple random sampling method.

Size of sample

It refers to the number of items to be selected from the universe to constitute a sample. Here

100 customers of Magnanim systems in puducherry were selected as size of sample.

Sample design

When population elements are selected for inclusion in the sample based on the case of

access, it is called convenience sampling method for the convenience of the researcher.



4.5 Questionnaire construction

In constructing questionnaire, care was taken to investigate the difficulties that the

respondent may face while answering them. It was prepared keeping in view the objective of the

study. During the constructing care was taken to avoid questions, which may lead to

misinterpretation. The question thus constructed was a structured one so as to collect all the

relevant information. The questions were arranged in a logical order/sensible sequence. The

questionnaire consists of a variety of questions presented to the employees for their response.

Dichotomous questions and multiple choice questins were used in constructing the questionnaire.

4.6 STATISTICAL TOOLS USED

To arrange and interpret the collected data the following statistical tools were used .

1. Percentage Method.

2. Weighted Average Method.

3. Chi-square test

Percentage Method :

The percentage method was extensively used for findings various details. It is used for

making comparison between two or more serices of data. It can be generally calculated.

Percentage of customers is given by

(Number of customers / total customers) * 100

Weighted Average Method:

In the weighted average method, the weighted average can be calculated by the following

formula

XW = ΣWX / ΣX



Here

XW represents the weighted average

“X1,X2,X3……Xn” represents the value for variable values

“ W!,W2, W3…….Wn” represents the weightage given to the variable.

Steps:

- Multiply the weights (W) by the variables (X) to obtain WX

- Add all WX to obtain ΣWX

- Divide Σ WX by sum of the weights (ΣX) to get weighted average.

Chi-square test

The chi-square test has been used to find the relationship between variables, as it is

applicable for cross-tabulated data

This test has been used to determine whether or not there is any association statistically,

between the variables in data collected.

The chi-square contingency table has been used, as it is appropriate for the hypothesis of

independence between two nominally scaled variables.

Chi square(χ 2)= Σ(Oij-Eij)2 / Eij

Where Oij= Observed frequency of the cell in ith roe and jth column

Eij= Expected frequency of the cell in ith row and jth column



TABLE NO.5.2

AGE OF THE RESPONDENT

Age No. of Respondents Percentage

Below-2528 28

25-35

49 49

35-45

15 15

Above-45

8 8

Total

100 100

0

5

10

15

20

25

30

35

40

45

50

Below-25 25-35 35-45 above-45

Chart No: 5.2

Inference

From the above table shows that 49% respondents are belongs to 25–35, 28% respondents

are belongs to below-25, 15% respondents are belongs to 35-45 and 8% respondents are

belongs to above-45.



TABLE NO.5.3

QUALIFICATION OF THE RESPONDENT

0

5

10

15

20

25

30

35

40

45

Below 12 Dip/IT UG PG

Chart No: 5.3

Inference

From the above table shows that 44% of respondents are belongs to under graduate, 32% of respondents are belongs to below 12th, 21% of respondents are belongs to Dip/IT, 3% of

respondents are belongs to PG.

Qualification

No. of

Respondents Percentage

Below 12th32 32

Dip/IT21 21

UG44 44

PG3 3

Total100 100



TABLE NO.5.4

OCCUPATION OF THE RESPONDENT

0

5

10

15

20

25

30

35

student professional self

employed

house wife government

Chart No: 5.4

Inference

From the above table shows that 32% of respondents are belongs to self employed,

28% of respondents are belongs to students, 17% of respondents are belongs to professional, 12%of respondents are belongs to house wife, 11% of respondents are belongs to government job.

TABLE NO.5.5

Occupation

No. of

Respondents PercentageStudent 28 28

Professional 17 17

Self employed 32 32

House wife 12 12

Government 11 11

Total 100 100



PURCHASE FROM MAGNANIM SYSTEM PRODUCT ALREADY

Opinion No. of Respondents Percentage

Yes29 29

No71 71

Total100 100

0

10

20

30

40

50

60

70

80

Yes No

Chart No: 5.5

Inference

From the above table shows that 29% of respondents are purchased the product

already, 71% of respondents are not purchased the product already.



TABLE.NO.5.6

HOW DO YOU KNOW ABOUT THE MAGNANIM SYSTEM PRODUCT

Opinion No. of


Friends & relations 83 83

Advertisement 6 6

Magazine 4 4

Newspaper 7 7

Total 100 100

0

10

20

30

40

50

60

70

80

90

Friends &

relations

Advertisement Magazine Newspaper

Chart No: 5.6

Inference

From the above table shows that 83% of respondents are known the

magnanimsystem through Friends & relation, 7% of respondents are known the

magnanimsystem through newspaper, 4% of respondents are known the

magnanimsystem through magazine, 6% of respondents are known the

magnanimsystem through Advertisment.



TABLE.NO.5.7

WHICH TYPE OF PRODUCT DO YOU LIKE

Opinion No. of


Branded system 21 21

Assembled system 67 67

Printer 12 12

Total 100 100

0

10

20

30

40

50

60

70

Branded system

Assembled

system

Printer

Chart No: 5.7

Inference

From the above table shows that 67% of respondents are buying only assembled

system, 21% of respondents are buying ony branded system, 12% of respondents are buying ony

printer.



TABLE.NO.5.8

WHY DID YOU CHOOSE THE MAGNANIM SYSTEM

Opinion

No. of

Respondents PercentageAttractiveness 18 18

Perfection 7 7 Immediate response 49 49 After sales service 14 14 FreePackage 3 3 Gifts 1 1 Offer 2 2 Discount 2 2 Refund offer 4 4 Total 100 100

0

5

10

15

2025

30

35

40

45

50 Attractiveness

Perfection

Immediate

responseAfter sales

service

FreePackage

Gifts

Offer

Discount

REfund offer

Chart No: 5.8

Inference

From the above table shows that 49% of respondents are choose immediate

response, 18% of respondents are choose Attractiveness, 14% of respondents are choose After

sales service.



TABLE.NO.5.9

EXPECTING FROM MAGNANIM SYSTEM FOR YOUR NEXT PURCHASE

Opinion No. of


Low price 32 32 Seasonal offer 4 4 Good quality 54 54 Money refund offer 4 4 Product warranties 3 3 After sales service 1 1 Free internet

package2 2

Total 100 100

0

10

20

30

40

50

60Low price

seasonal offer

Good quality

Money refund

offer Product

warranties

After sales

service

Free internet

package

Chart No: 5.9

Inference

From the above table shows that 54% of respondents are purchasing next year for

good quality of product, 32% of respondents are purchasing next year for low price of product.



TABLE.NO.5.10

FACTOR EXPECT MORE FROM MAGNANIM SYSTEM PRODUCT

Opinion No. of


More quality with exiting

price5 5

More quality with low price 68 68 Exiting quality with low

price7 7

Good service with exiting

price16 16

Good service with low price4 4

Total 100 100

0

10

20

30

40

50

60

70Mre quality with

exiting price

More quality

with low price

Exiting qualitywith low price

Good service

with exiting

price

Good service

with low price

Chart No: 5.10

Inference

From the above table shows that 68% of respondents are like more quality with

low price, 16% of respondents are like good service with exiting price, 7% of respondents are

like Exiting quality with low price, 5% of respondents are like moe quality exiting price, 4% of

respondents are like good service with low price.



TABLE.NO.5.11

DIFFER FROM COMPETITONS FOR SALES PROMOTION

Opinion

No. of


Coupans 2 2

Free internet package 1 1

Seasonal offer 3 3

Free software 2 2

Money refund offer 84 84

Product Warranties 8 8

Total 100 100

0

10

20

30

40

50

60

70

80

90Coupans

Free internet

package

Seasonal offer

Free software

Money refundoffer

Product

Warranties

Chart No: 5.11

InferenceFrom the above table shows that 84% of respondents are said only money

refund offer for differing from competitons, 8% of respondents are said only

product warrantiesr for differing from competitons



TABLE.NO.5.12

MESSAGE IS BEING RECEIVED FROM OUR ADVERTISING

Opinion No. of


Good service 59 59

Good product 26 26

Discount 5 5

Product warranties 1 1

Seasonal offer 2 2

Free package 2 2

Coupans 1 1

Money refund offer 4 4

Total 100 100

0

10

20

30

40

50

60Good service

Good product

Discount

Product

warrantiesseasonal offer

Free package

Coupans

Money refundoffer

Chart No: 5.12

InferenceFrom the above table shows that 59% of respondents are said good service,

26% of respondents are said good product .



TABLE.NO.5.13

MEDIA IS MOST EFFECTIVE FOR DELEIVERING OUR MESSAGE

Opinion No. of


Television 4 4

Newspaper 2 2

Online 24 24

Word of mouth 70 70

Total 100 100

0

10

20

30

40

50

60

70

Television

Newspaper

Online

Word of mouth

Chart No: 5.13

Inference

From the above table shows that 70% of respondents are belongs to word of mouth, 24%

of respondents are belongs to online, 4% of respondents are belongs to television, 2% of

respondents are belongs to newspaper.



TABLE.NO.5.14

WHICH TOOL IS PREFER TO PURCHASE OUR PRODUCT

0

10

20

30

40

50

60

70Offer

Money refund

offer

Product

warranties

Free gift

Discount

Chart No: 5.14Inference

From the above table shows that 69% of respondents are said discount is best tool,

24 % of respondents are said offer is best tool, 2 % of respondents are said money refund offer is

best tool, 2 % of respondents are said product warranties is best tool, 3 % of respondents are said

free gift is best tool.

Opinion

No. of


Offer 24 24 Money refund offer 2 2 Product warranties 2 2 Free gift 3 3 Discount 69 69 Total 100 100



TABLE.NO.5.15

Systems buy in one year

Opinion

No. of


Below-10 93 93

10-40 3 3

40-80 1 1

80-100 3 3

Total 100 100

0

20

40

60

80

100

Below-10

Oct-40

40-80

80-100

Chart No: 5.15

Inference

From the above table shows that 93% of respondents are buy below – 10, 3% of

respondents are buy 10-40, 1% of respondents are buy 40-80, 3% of respondents are buy

80-100.



TABLE.NO.5.16

SYSTEMS REPLACE IN ONE YEAR

Opinion

No. of


Below-10 92 92

10-40 3 3

40-80 2 2

80-100 3 3

Total 100 100

0

20

40

60

80

100

Below-10

Oct-40

40-80

80-100

Chart No: 5.16

Inference

From the above table shows that 92% of respondents are replace the product below – 10,

3% of respondents are replace the product 10-40, 2% of respondents are replace the product

40-80, 3% of respondents are replace the product 80-100.



TABLE.NO.5.17

RATE THE PERFORMANCE OF PRODUCT

Opinion No. of


Highly Satisfied 21 21 Satisfied 64 64

Dissatisfied 2 2

Highly Dissatisfied 2 2

None 11 11

Total 100 100

0

10

20

30

40

50

60

70

Highly

Satisfied

Satisfied

Dissatisfied

HighlyDissatisfied

None

Chart No: 5.17

Inference

From the above table shows that 64% of respondents are satisfied the company product,

21% of respondents are highly satisfied the company product, 2% of respondents are dissatisfied

the company product, 2% of respondents are highly dissatisfied the company product, 11% of

respondents are none the company product.



TABLE.NO.5.18

RATE THE PERFORMANCE OF SERVICE

Opinion No. of


Highly Satisfied 24 24 Satisfied 51 51 Dissatisfied 9 9 Highly Dissatisfied 2 2 None 14 14 Total 100 100

0

10

20

30

40

50

60

Highly

Satisfied

Satisfied

Dissatisfied

Highly

Dissatisfied

None

Chart No: 5.18

Inference

From the above table shows that 51% of respondents are satisfied the company

service, 24% of respondents are highly satisfied the company service, 9% of respondents are

dissatisfied the company service, 2% of respondents are highly dissatisfied the company service,

14% of respondents are none the company service



TABLE.NO.5.19

RATE THE PERFORMANCE OF QUALITY

Opinion

No. of


Highly Satisfied 23 23 Satisfied 62 62 Dissatisfied 2 2 Highly Dissatisfied 2 2 None 11 11 Total 100 100

0

10

20

30

40

50

60

70

Highly Satisfied

Satisfied

Dissatisfied

Highly

Dissatisfied

None

Chart No: 5.19

Inference From the above table shows that 62% of respondents are satisfied the company

quality, 23% of respondents are highlysatisfied the company quality, 2% of respondents are

dissatisfied the company quality, 2% of respondents are highlydissatisfied the company quality,

11% of respondents are none the company quality.



TABLE.NO.5.20

RATE THE PERFORMANCE OF PRICE

Opinion

No. of

Respondents PercentageHighly Satisfied 18 18

Satisfied 66 66

Dissatisfied 1 1


None 11 11

Total 100 100

0

10

20

30

40

50

60

70

Highly Satisfied

Satisfied

Dissatisfied

Highly

DissatisfiedNone

Chart No: 5.20

Inference

From the above table shows that 66% of respondents are satisfied the company price,

18% of respondents are highlysatisfied the company price, 1% of respondents are dissatisfied

the company price, 4% of respondents are highlydissatisfied the company price, 11% of

respondents are none the company price.



TABLE.NO.5.21

RATE THE PERFORMANCE OF RELIABILITY

Opinion

No. of

Respondents PercentageHighly satisfied 15 15

Satisfied 71 71

Dissatisfied 2 2


None 10 10

Total 100 100

0

10

20

30

40

50

60

70

80Highly satisfied

Satisfied

Dissatisfied

Highly

Dissatisfied

None

Chart No: 5.21

Inference

From the above table shows that 71% of respondents are satisfied the company

reliability, 15% of respondents are highlysatisfied the company reliability, 2% of respondents are

dissatisfied the company reliability, 2% of respondents are highlydissatisfied the company

reliability, 10% of respondents are none the company reliability.



TABLE.NO.5.22

CHANGE IN THE DEVELOPMENT OF SELLING THE PRODUCT

Opinion

No. of


To a great extent 3 3

To some extent 20 20

None 77 77

Total 100 100

0

10

20

30

40

50

60

70

80

Ta a great

extent

To some

extent

None

Chart No: 5.22

Inference

From the above table shows that 20% of respondents are some extent in the development

of selling the product, 3% of respondents are great extent in the development of selling the

product, 77% of respondents are said none in the development of selling the product.



TABLE.NO.5.23

DESIRABLE QUALITIES THAT WE LACK


Yes 2 2

No 98 98

Total 100 100

0

20

40

60

80

100

Yes

No

Chart No: 5.23

Inference

From the above table shows that 98% of respondents are said no for desirable

qualities that we lack, 2% of respondents are said yes desirable qualities that we

lack.



TABLE.NO.5.24

PURCHASING THE PRODUCT IN NEXT YEAR


Yes97 97

No3 3

Total100 100

0

20

40

60

80

100

Yes

No

Chart No: 5.24

Inference

From the above table shows that 97% of respondents are said yes for purchasing

the product in next year, 3% of respondents are said no for purchasing the product in next year.

TABLE.NO.5.25



TO FIND RANK FACTORS IN MAGNANIM SYSTEM WHICH RANKED BY CUSTOMERS(Using weighted average Method)

Rank Weight Product Service Quality Price Reliability

W X1 WX1 X2 WX2

X3 WX3 X4 WX4 X5 WX5

1 5 21 105 24 120 23 115 18 90 15 75

2 4 64 256 51 202 62 248 66 264 71 284

3 3 2 6 9 27 2 6 1 3 2 6

4 2 2 4 2 4 2 4 4 8 2 4

5 1 11 11 14 14 11 11 11 11 10 10

Total 100 382 100 369 100 384 100 376 100 379

C.W 3.82 3.69 3.84 3.76 3.79

Rank 2 5 1 4 3

C.W=Calculated weight=[ ΣWXn / Σn ]

Inference

From the Table it is inferred that customers prefers Quality as first rank.

TABLE.NO.5.26



OCCUPATION OF THE RESPONDENTS * PURCHASING TYPE OF PRODUCT

PURCHASING TYPE OF PRODUCT Total

Branded

system

Assembled

system Printer

OCCUPATION

OF THE

RESPONDENTS

Student 3 20 5 28

professional 6 9 2 17

self

employeed7 23 2 32

house wife 5 6 1 12

governmentstaff

0 9 2 11

Total 27 67 12 100

H0 : Occupation of the respondent is independent Purchasing type of products.

Chi- Square Tests

INTERPRETATION:

From the above analysis, the chi-square values 11.57 and asymptotic significant value is

above 0.05. Hence, there is no evidence to reject the null hypothesis. Thus we conclude that

Occupation of the respondent is independent Purchasing type of products.

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 11.57 8 .171



TABLE.NO.5.27

TOOL PREFER TO PURCHASING PRODUCT * BUYING SYSTEM IN ONE YEAR

BUYING SYSTEM IN ONE YEAR Below-10 10-40 40-80 80-100

Total

TOOL PREFER

TO PURCHASING

PRODUCT

Offer 24 0 0 0 24

Money

refund offer 2 0 0 0 2

Product

warranties2 0 0 0 2

Free gift 2 1 0 0 3

Discount 63 2 1 3 69

Total 93 3 1 3 100

H0: Tool prefer to Purchasing Product is independent of Buying system in one year

Chi-Square Tests

INTERPRETATION:

From the above analysis, the chi-square value is 12.233, and asymptotic significant value

is above .05. Hence, there is no evidence to reject the null hypothesis. Thus we conclude that tool

prefer to Purchasing Product is independent of Buying system in one year.

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 12.233 12 .427



CHAPTER 6

FINDINGS OF THE STUDY

Most of the customers are students and self employed persons were purchased the product.

Most of the respondents taken are female 16%, and male 84%.

Most of the customers (67%)were prefer assembled system is best for using.

Most of the public doesn’t know about the products marketed by the Magnanim

systems.

It is found that 83% of the respondents came to know about Magnanim systems

product through friends & relatives and advertisements. None of them

had found Magnanim systems through Magazine and Newspaper.

Most of the customers(49) were chose magnanim systems product for immediate

response.

54% of the customers are satisfied with the overall satisfaction of Magnanim systems

products and also to purchase next year.

Most of respondents are expected more quality with low price of the product.

84% of customers are money refund offer is best one to differ from the competator

and also to increase the sales.

Most of the customers(93%) are purchasing the product below – 10 only.

It is found that customers are satisfied with quality,good product, price and not

satisfied with the service of the Magnanim systems products.



SUGGESTIONS AND RECOMMENDATIONS

Based upon the finds the following suggestions is made

The customers are given more weightage to the assembled system . so the company can

improve the sales in assembled system.

Most of the customers are like more quality with low price. So the company can increase

the quality and reduce the price of the product.

Maximum number of customers are discount is the best tool to differ with competitor. So

the company can utilize this tool and meet the competitor.

Most of the customers are feeling that to increase the after sale service. So the company

may take necessary actions for the sale service and to satisfied the customers.

Most of the customers were chose the magnanim systems product for immediate

response. So the company can give importance for customer call.



CHAPTER 7

CONCLUSIONS

The study on sales promotion in magnanim systems pvt., Ltd., is study with care and

special effects have been taken to make the study as specific as possible. The methodologytypical proof to show that the study is sceintific.

From the study, it is clear that most of the customers are satisfied with there product, price

and quality. This study is also cearly states that the customers are expecting to improve their

service. So the company can take an action to improve the service. The customers are giving

more important for more quality with price of the product. A good quality of service create

weightage of the concern.



CHAPTER-8

LIMITATIONS OF THE STUDY

Due to shortage of time we did not meet more number of customers.

Since time duration is short it was not possible for conduct elaborate study.

Some false information may be given by the customers regarding their expectations.



ANNEXURE-1

A STUDY ON SALES PROMOTION IN MAGNANIM SYSTEM

QUESTIONNAIRE

1. NAME :

2. GENDER :

Male Female

3. AGE :

Below-25 25-35 35-45 above 45

4. EDUCATIONAL QUALIFICATION :

Below +2 Dip/IT UG PG other

5. OCCUPATION :

Student professional self employes

house wife government staff others

6. Have you made any purchase from magnanim system product already?

Yes No

7. How do you know about the magnanim system product?

Friends & relations Advertisement Magazine Newspaper

8. Which type of product do you like from magnanim system?

Branded system Assembled system Printer

9. Rank the following Brands.

Rank

a. Magnaz brand

b. HCL system

c. Lenovo system

d. Acer system

10. Why did you choose the magnanim system?

Attractiveness Perfection Immediate response

After sales service Free package Gifts

Offer Discount Refund Offer

11. What is the benefit you expect from magnanim system for your next purchase?



Low price Coupans Seasonal offer

Good quality Money refund offer Product Warranties

After sales service service Free internet package

12. Which factor do you expect more from magnanim system product?

More quality with exiting price. More quality with low price.

Exiting quality with low price.

Good service with exiting price.

Good service with low price.

13. How do magnanim system differ from competitons for sales promotion?

Coupans Free internet package Seasonal offer

Free software Money refund offer Product Warranties

14. What message is being received from our advertising?

Good service Good product Discount Product warranties

Seasonaloffer Free package Coupans Money refund offer

15. Which media do you prefer is most effective for delivering our message?

Television newspaper magazine online word of mouth

16. Which tool do you prefer to purchase our product?

Offer Money refund offer Product warranties Free gift Discount

17. How many systems you buy in one year ?

Below-10 10-40 40-80 80-100 Above-100

18. How many systems you will replace in one year ?

Below-10 10-40 40-80 80-100 Above-100

19. Rate the magnanim system performance in todays competetive environment when

compared to other competitor.

Highly

Satisfied

Satisfied Dissatisfied Highly

Dissatisfied

None

Product

Service

Quality

Price

Reliability

20. Is there any change in the development of selling the product compared with last year.

To a great extent To some extent None



21. Are there any desirable qualities that a competitor have, that we lack.

Yes

NoIf yes, give suggestion--------------------------------------------------------

--------------------------------------------------------

22. Would you like to purchase magnanim system product in next year.

Yes No

If No, mention the reason---------------------------------------------------

---------------------------------------------------

23. Any suggestion---------------------------------------------------------------------

---------------------------------------------------------------------



ANNEXURE -2

BIBLIOGRAPHY

Marketing Management – Philip Kotler.

Principle of management - Philip Kotler.

Kothari C.R., Research methodology, Tata Mc Graw-Hill Publishing

Company Ltd., 1982.

WEBSITES:-

www.google.com

www.magnanimsystems.com

project on sales promotion

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