lps marketing

INTRODUCTION

The project has been prepared in order to increase reader’s acquaintance to variety

of promotional tool that are offered by a fasteners company to them at the time of

purchase. The whole material has been divided into three descriptive chapters which

enables to gains sufficient knowledge about the topic. Various tests of examples have

been quoted adequately in addition to graphs so as to make the material more

understanding and easier. The very first chapter of the project throws light on Research

Methodology. From the collection of data to final analysis of questionnaire an attempt

has been made to classify the basic concepts regarding research. Following it, the second

unit, that is an overview of Sales Promotion techniques that are offered by the various

fasteners companies in order to promote their sale to the ultimate users of the product.

Apart from this dealer’s attitude towards much techniques and an analysis of

questionnaire is also included. At last in chapter three the appropriate recommendation

has been put forward regarding the topic followed by Annexure and bibliography at last.

Note and definition

1. To identify the sales promotion activities used by the company and its competitors

different questions were put from retailers and distributors.

2. To identify the best media for sales promotion different types of question were

put to retailers and distributors

3. While calculating the best media these following media’s for sale promotion were

taken into consideration.

Posters

Paper advertisement

Display stand

T.V. advertisement

Magazine Advertisement

Free sample

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Retailer’s margin

Distributor’s margin

Schemes

Sales promotion: an overview

Promotion decisions are made simultaneously with marketing mix decision regarding

products, price and place. They involve finding target markets determining objectives and

tasks, budgeting for promotion, selecting promotional media evaluating promotional

effectiveness and finally controlling the promotion elements. Today, companies face task

distributing the total promotion budget over the five promotional tools namely:-

Advertising

Sales promotion

Public relation

Publicity

Direct Marketing

Promotion, one of the four major variables with which the marketing manager works, is

communicating between the seller and buyer to change the attitudes and behavoiur.

Promotion is responsible for communication with potential customers of the existence of

products persuades and convinces them that the products have want satisfying

capabilities.

All forms of promotion aim at influencing customer attitudes, belief and values and

preferences, life styles and ways of living. The promotion mix is used to achieve the

objective of promotion, which are information, possession and reminding.

Companies are always searching for ways to gain efficiency by substituting one

promotional tool for another. Many companies have replaced some fields, sales activity

with ads, direct mail and telemarketing. Other companies have increased their sales

promotion expenditures in relation to advertising.

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MARKETING DEPARTMENT

DEPARTMENTAL PROCEEDING

Close feasibility

Yes whether the product can be developed by the

company or not

Quotation

Rates, lend time for delivery modes S.I., CST

whether applied

Close negotiations

Yes

Purchase order

For 1 year or so

Delivery schedule

As per the requirement in forthcoming period

Development of product

Delivery as per schedule

Types of bills

Feedback whether accept

To follow up for the payments

3

COMPANY PROFILE

The Lakshmi Precision Screws Ltd, Rohtak was promoted by Sh. B.P. Jain and

his associates as a private limited company on December 27, 1968. Shri B.P. Jain,

promoter of the company and well known industrialist, has been associated with the

manufacture of industrial fasteners for over 37 years. During this time he has established

his experience regarding industry a record of successful management. And now Lalit

Kumar Jain is the Chairman and Managing Director of the company. As in the beginning,

the company was a private company and later on it was converted into public limited

company on August 20, 1971 itself. In fact, LPS Ltd. Is one of the reputed engineering

ancillary units in Haryana. It has continuously increased its installed capacity and product

range by adding various production facilities over the years.

The company supplies its product to some industries directly and to some

other indirectly. This share in demand is estimated on the basis of directly supply, so on

the whole, we can say that approximately 10% of the total demand is met by LPS Ltd.

Alone. The installed capacity of LPS Ltd. Stands at above 13520 metric tones per annum

and are ably supported by a host of ancillaries.

HISTORY

1968 - The Company was incorporated on 27th December, in Haryana as a Private

Limited Co. and was converted into a Public Limited Co. on 20th August 1971. The

Company was promoted by B.P. Jain and Associates. It manufactures cold and hot forged

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and hexagonal head screws/bolts, socket, set screws and cold forged nuts. The products

are marketed under the name LPS. The Company also exports its products.

1969 - 4,000 No. of Equity shares issued to promoters, etc.






1980 - Equity shares subdivided into Rs 10 each. 50,000 No. of Equity shares issued to

promoters, etc.

1981 - 1,20,000 No. of Equity shares issued to promoters, etc.

1982 - The Company had taken up an expansion programme for the manufacture of

larger sizes of high tensile bolts and forged nuts by the installation of 1/2" nut former and

1" boltmaker.

- 3,50,000 Bonus Equity shares issued in prop. 1:1 in November.

1983 - 37,50,000 No. of Equity shares offered at par for public subscription during

October-November.

1984 - All imported equipment and associated machinery were commissioned.

1989 - Indian Fasteners Limited became a subsidiary of the Company.

- The Company promoted a subsidiary company under the name of Indian Fasteners Ltd.

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1991 - With a view to improving exports, the company proposed to undertake a

modernisation-cum-expansion scheme. With a view to put further thrust as exports, the

Company proposed to set up another export unit.

1993 - During July-August, the Company issued 21,75,000 rights equity shares of Rs 10

each at a premium of Rs 20 per share in the prop. 3:2 (all were taken-up).

1994 - 21,75,000 Rights equity shares of Rs. 10 each (Prem. Rs. 20) issued in propn. 3:2.

1995 - With a view to meet the challenge of an open economy, the Company proposed to

undertake an expansion-cum-modernisation scheme involving a capital outlay of 1655

lakhs with an installed capacity of 2700 MT per annum.

1996 - After establishing its presence in the European and American Market the

Company is diversifying its export activities with a two pronged strategy, firstly to

introduce new products in the existing markets and secondly developing new markets of

South East Asia, Middle East and South Africa.

1997 - Performance of the company was sluggish due to general slowdown in the

economic growth coupled with stiff competition in the market.

- The Company signed a joint venture agreement with the Bossard International AG,

Switzerland for development of software and marketing/distribution of new range of

fasteners for niche market of electrical, electronics etc.

- 16,00,000 No. of equity shares allotted at a prem. of Rs. 15.40 per share to promoters

and their associate on private basis.

1998 - 8,00,000 equity shares allotted at a prem. of Rs. 9.75 pershare on conversion of 8

lakh warrants allotted as pref. basis to promoters of the Company.

- The joint venture Companies LPS Bossard Information Systems Pvt. Ltd. and LPS

Bossard Pvt. Ltd. in which the Company is holding 49% will start its activities in

September.

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1999 - Lakshmi Precision Screws Ltd (LPS), one of the largest exporters of high tensile

fasteners from India, is exploring possibilities of exporting its products to newer markets

with the objective of increasing its exports earnings in the coming years.

- Lakshmi Precision Screws (LPS) is a front-runner in the Indian fastener industry. A

name that signifies just about every kind of fasteners (over 6000 types).

SUBSIDIARY COMPANY:

The LPS Ltd. has a subsidiary company named ‘INDIA FASTENERS

Ltd.’ This company was promoted by LPS in the financial year 1990-91. The company

has a holiday company’s in interest by virtue of Sec. 4(1) (a) of the companies Act 1956.

LOCATION HEAD OFFICE:

The company has a plot of land measuring 10900 square meters on the National

Highway and is located at 46/1 milestone, Hisar road, Rohtak (Haryana). The present

covered area of the land 10712 square meter. The registered office of the company is

situated at Hisar road Rohtak i.e. the factory itself. It has its selling offices situated at

Bombay, Delhi and Calcutta. Besides this company has appointed its sales

representatives at Puna, Bangalore, Coimbatore and Madras. The location of the company

is much useful and has no problem of transportation because company is at a distance of

3 Km. from bus stand and 4 Km. from railway station. Moreover, New Delhi, the capital

of India is hardly 75 Km. from its plave and attached to Rohtak.

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MANAGEMENT OF THE COMPANY:

The company is managed by the Board of Directors. The day to day affairs of the

company are being looked after by Managing Director Shri L.K. Jain subject to overall

control and supervision of the board of directors, Shri Jain is assisted by whole time

directors and an experienced team of executives.

The board of directors of the company is comprised of the following given below:

Lalit Jain : Chairman and Managing Director

D.K. Jain : Vice Chairman and Managing Director

V.K. Jain : Joint Managing Director

R.K. Jain : Non Executive Independent Director

Sushila Devi Jain : Non Executive Independent Director

J.R. Jain : Non Executive Independent Director

Babulal S. Aggarwal : Non Executive Independent Director

Dharmedra Bhandari : Non Executive Independent Director

Keshwa Nand Rattan : Non Executive Independent Director

Deepak Jain : Non Executive Independent Director

Ajay Kumar Chakraborty : Non Executive Independent Director

MANAGEMENT TEAM:

S.K. Jain : Director Marketing

J.C. Gupta : G.M. Personnel

R.P. Gupta : Works Manager

M.G. Aggarwal : G.M. Quality Assurance

V. Sai Ram : Senior Works Manager

Pardeep Dhawan : Deputy Works Manager

Company Secretary & DGM (Finance) : H.P.S. Chugh

Auditors : V.R. Basal & Associates

Chartered Accountants, Noida

Bankers : Canara Bank, Rohtak

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Regd. Office, Factory & Corporate office:

46/1, Mile Stone, Hissar road,

Rohtak-124001 (Haryana)

Tel: 01262-248790 & 248289

Fax: 01262-248297

Registrar and Share transfer Agent:

M/S MCS Ltd.

Shri Venkatesh Bhavan, W-40, Phase-II,

Okhla Industrial Area, New Delhi-110020

Tel: 011-4146151

Branch offices: 146, New Cycle Market,

Jhandewalan Extension,

New Delhi-110055

Tel: 011-23587642

153-Wing-A, Mittal Tower,

Nariman Point, Mumbai-400021

Tel: 022-56370984-85

8, Canning Street, 3rd floor,

Room no. 303, Kolkata-700001,

Tel: 033-22310754

305-A, Mittal Tower,

3rd floor, M.G. road,

Bangalore-560001

Tel: 080-25588587

1/284, Transport Nagar,

Agra (U.P)

Tel: 0562-2600060

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ORAGNISATIONAL STRUCTURE:

Management by its nature deals with primarily organization of people and to

some extent with physical recourses. So in an industry a large part of typical manager job

is the integration of human physical resources. To accomplish this integration and to

achieve basic business objectives a company design a formal organizational structure and

objects job relationship and cooperative of efforts. The whole organizational structure of

LPS Ltd. is clear from the organization chart depicted in figure:

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WELFARE SCHEME OF THE COMPANY:

The company has also initiated a number of welfare for the employee. In this

regard, the company provides modern accommodation and other infrastructure facilities

to its employees. Beside the housing facility provided by the company, the company also

provide labour rest room staff rest room and lunch facility. The company issues one dress

and two washing allowances are also given by the company to its employees. The

company also pays bonus to its employees.

RESEARCH AND DEVELOPMENT:

The company also organize research and development and new projects directly

through other association and institution for technological development. Total research

and development expenditure as a percentage of turnover was 47% in 2005-06.

MARKET DEMAND:

The manufacture of high tensile fasteners by cold forging involves the use of

advanced technology and the industry has been accorded a high priority of governments

because of its vital contribution in the manufacture of automobile, two wheelers, tractors,

earthmoving and material handling equipments. A major portion of the company’s

product are brought by the automobile industry which is in the process of substantial

expansion. The demand for high tensile fasteners for non-auto application has been

increasing steadily. The company therefore does not envisage any difficulty in marketing

its entire production, moreover the company sells its products in home market as well as

in the foreign markets. The purpose of selling its products in the foreign markets is to

earn more and more foreign exchange, to capture foreign sells in foreign markets through

selling agencies. In fact the company’s products are becoming popular among prominent

concerns.

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QUALITY MANAGEMENT

QUALITY CONTROL DEPARTMENT

Now it is well known fact that that there is a very high variation between quality

control and company’s market credibility. The meaning of the concept quality is ever

broadening and consequently getting redefined. Thus bringing with in its scope questions

pertaining to productivity, cost, efficiency, customer’s service and much talked about

product quality. All these questions taken together constitute the operational area for the

quality control department of the enterprise.

That is what the quality control department at LPS keeps in mind and tries to

maintain high quality, not just by physical inspection as a ritual but by embedding it in

every process of production itself. They are doing well to identify and measure process

variables, the prevalent practice in the company is to take sample of material at each stop

right from the raw material and testing up to both (a) Govt. Standard (b) Company’s own

internal standard. The whole process of testing and controlling has been illustrated below.

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PROCESS OF QUALITY CONTROL

Testing raw material

Issue of material from store

Care of temperature profile

Final inspection (1. dimensional test)

(2. Tightness ring gauge test)

Inspect packing process

Check out the finished product

As a part of the process of quality control the department is also

responsible for tensile strength etc.

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PRODUCT LIST

STANDARD PRODUCTS

A wide range of standard cold forged high tensile fasteners over 6,000 varieties

covering the diameter range of 3 mm to 30mm and the length range of 6mm to 300 mm.

Standard products covers most of international standards ISO, ANSI /ASME, BS, JIS,

DIN etc. and engineered as per respective standards.

These standard products covers a very wide range of industries viz Automobile

sectors, standard / special m/c building sectors, textile sectors, printing machineries,

Software sectors etc.

• Socket Head Cap Screws

Socket Low Head Cap Screws

Socket Counter Sunk Head Screws

Socket Button Head Cap Screws

Socket Set Screw Knurled Cup Point / Special Points

Hex Head Bolts / Screws

Hex Nuts

Dowel pins

Stainless Steel Fasteners

Special Automotive Fasteners

•

•

•

•

•

•

•

•

•

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SPECIAL PRODUCTS

A very comprehensive range of special high tensile bolts/screws, studs, nuts, and

special cold forged components in the size range of 3 mm to 30 mm are manufactured.

These special products are made to satisfy a very exacting engineering standards.

LPS Range of Special Products cover the automobile, tractor, heavy earth moving

equipments, textile machinery and machine building industries. To name a few of the

special products in which LPS is the undisputed leaders are:

• Durlock Bolts

• Wheel / Hub Bolt

• Flange Bolt

• Connecting Rod Bolt

• Gear Shaft

• Axles

• Stud

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Market of LPS

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For LPS the international market contributes almost equally to the sales turnover

of the company. The export contributes 40% to 50% of the turnover.

If we look at the last year figure, the domestic market contributed to 57% of

LPS’s total sales and the export rest 43%. However in the domestic market the standard

items contributed 25% of the turnovers are and 75% are by the items that are supplied to

the domestic OEM’s as per their specification. If we take a closer look at the sales to

domestic OEM’s, we find that Scooter/Motorcycle manufacturer take the large chunk i.e.

58%; machine tools have the share of 15%; the scooter/motorcycle manufacturer and the

tractor manufacturer have equal share of 12%; others share is 3%.

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MAIN MARKETS:

(A) Domestic (User Industries)

Automotive

Aviation

Heavy and light machinery

Hydraulic pneumatic pumps

Machine tools, jigs and fixtures

Railways

Refrigeration and air conditioning

(B) International (Countries)

Australia

Germany

Holland

Hong Kong

Singapore

South Africa

South Korea

Sweden

Switzerland

United Kingdom

United States of America

GROUP OF COMPANIES:

Indian Fasteners Ltd.

Amit Screws Pvt. Ltd.

Hanumant Wire Udyog Pvt. Ltd.

J. C. Fasteners Ltd.

L.P.S. Bossard Pvt. Ltd. (Joint venture)

L.P.S. Bossard Information system Pvt. Ltd. (Joint venture)

L.P.S. fasteners Industries and Wire Pvt. Ltd.

NAV Bharat Industries

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NAV Bharat Agencies

Shiv Industries

United Engineers

Universal enterprises

Swadesh Engineering Industries

Sudhir Automotive Industries Pvt. Ltd.

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DEPARTMENTAL PROCEEDING

The department proceeding is the marketing department is a complex process involving

various types of task. The departmental; proceedings of the LPS are as follows:

First of all a four members or five member committee is made which goes to the

companies to enquire about the product they want. After knowing that what type of

product needed, the feasibility of product is seen that whether the product can be

manufactured by the company or not if yes then the further proceedings are done and if

not deal is stopped there only. Now if the product can be manufactured by the company

then the quotations are given which comprises of rates. Delivery modes ST and CST

whether applied or not.

FOR -> At our works

At destination free up to city

At your works (total free )

Central Excise Duty -> 15 %

CST interstate dealing inter branch transaction

NO CST

ST + 5% only applicable in direct sales to company and not to dealers.

After the giving up of quotations, negotiations are held a dif both the companies

agree then the further proceedings are done and if not the dealings is closed.

Then the purchase order is given by the company for 1 year or more. After getting

the purchase order the delivery schedule is made i.e. that the order will be supplied in 2.3

or 4 delivery schedules as per the requirement in the coming period.

After making the delivery schedule the product development starts, which include

many processes that is related to production department. After the product development,

the delivery is made as per the schedule decided by the company.

Then the feedback is made whether the product is accepted or rejected if there is

found certain discrepancies in the product, then the product is returned to the company.

Then follow up payment is done.

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PRODUCTION DEPARTMENT

For efficient production the department has been sub divided into various units

such as production division, P.P.C. division, quality control division and engineering

division. All the divisions are the part of production department and responsible for

regulating all the workers of production and responsible to report the works manager who

us directly reporting to the general manager. The function of the production department is

to effectively plan and regulate the operation of that part of enterprise which is

responsible for actual transformation of raw materials into finished products. The

production activities in the LPS are looked after by works manager, who is responsible to

report the general manager. In LPS, general manager himself also visits to the production

department to observe the working of the plant.

LPS offers a complete range of socket screws, hex head bolts/screws, hex nuts,

special automotive fasteners confirming to international standard.

The basic raw material used in the production of these screws and meets are CHQ

carbon boron Alloy steel wires in rods and coils. The source of raw material is both

Indian market LPS purchases from:

1. Mukund Limited, Bombay

2. Bihar alloys limited

LPS also imports its raw material from foreign countries. Main countries are

1. Donglu Corporation, Saudi Korea

2. Mitsui & Co. Ltd., Japan

3. Komorowaski Company, West Germany.

Indian raw material is used in the production of hex nuts and imported raw material is

used in high quality screws and nuts.

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PRODUCTION PROCESS

The plant of Lakshmi Precision Screws Limited comprises of modern imported

automatic machines e.g. Nut Maker, Bolt Maker, and Thread Rollers etc. in an automatic

machine the production is of continuous type. The wire is fed from one end to the

machine where it is subjected to three or four simultaneously operation, as the case may

be and from other end we get the finished product e.g. in screw making, parting off,

thread rolling operations simultaneously takes in the machine itself.

From the production, the company requires steel wire rods in the form of coils

confirming to AISI 1541, 4140, 4137 & 4037 for manufacturing bolts and confirming to

AISI 1008, 1110 and 1035 for nuts.

After the screws/bolts/nuts are released from the machine it is subjected to head

treatment/planting operations as per requirements of the party. In head treatment process,

the component is hardened up to a certain grade as prescribed by the customer. Here the

component is heated to a specific temperature and then slowly cooled for desired

hardness. The hardened component is then subjected to planting process where zinc

plating is done by electrolysis process. After the desired plating the component becomes

ready for dispatch.

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PRODUCTION PROCESS

Chart

Wire from the bend or coils

Cutting of wire

Forging

Heat treatment

Rolling

Grinding

Plating Phosphate

Finishing

Oiling

Packing

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1. Production and material control: -

The production control manager is responsible for setting the overall

production schedule and making certain that manufacturing has the parts and

materials needed for this, he is required to compute the detailed requirements for

materials needed. When a materials management concept of organization is used

it is wise to consider production control separately from production scheduling.

Production scheduling is concerned with allocation of work to men and machines

to produce the number of units specified by production control within the

scheduled time constraints.

2. Purchasing: -

The responsibility of buying the kinds and qualities of materials

authorized by the requisitions issued by various departments, is of the purchasing

department. Sometimes it is advisable that the purchasing is given the right and

the duty to advise, question and even to challenge the requisitions issued by

production control, engineering, maintenance and any other department on

material specification and selection.

3. Non-production store: -

The stores department is responsible to control non-production (office

supplies, perishable tools and maintenance, repair and operating supplies). It

maintains physical stocks of non-production items to be drawn on as needed for

operations or maintenance, manages inventories of non-production materials,

minimize losses from piferage and spoilage and prevent stockouts.

4. Traffic: -

The traffic department is responsible for buying transportation services. It

deals with inbound consignments of purchased materials and is responsible for

selecting common or charter carriers and routings, auditing invoices from carriers

and filling claims for refund transportation cost.

5. Materials handling: -

It is concerned with the movement of materials within a manufacturing

establishment. For this, development of special purpose equipment may be require

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to reduce handling costs per unit of materials and reduction in time required to

move a unit of material from one location to another.

The materials management organization is especially well suited to firms

that spend substantial sums on purchased materials and must carry fairly large raw-

materials inventories. Material management in narrowest sense is concerned mostly with

purchased parts and materials; physical distribution and logistics management focus

mostly on finished goods.

OBJECTIVES AND FUNCTIONS: -

Every business has economic and non-economic objectives. Economic

objectives include survival and profits while favourable community relationship, best

possible service to customers, good working conditions and opportunities for

advancement for employees are some of the non-economic objectives.

PRIMARY OBJECTIVES: -

1. Low Prices is the first primary objective. If materials department

succeeds in reducing the price, of items it buys, it contributes in not

only reducing the operating costs but in enhancing the profits as well.

2. High inventory turnover can broadly be defined as the use of

material along with the incoming flow so that the minimum is blocked

on inventories. This will help in saving the investment on capital as

well as interest on the capital.

3. Efficient handling of materials and storage lowers the acquisition

and possession costs and thereby real cost is reduced.

4. Continuity of supply Uninterrupted supply of materials is the

essential requirement of any production organization. The average

production cost of the product may rise considerably specially in case

of automatic plants and on-line process plants where the interruption

in supply of materials may result in to the total loss of manufacturing

capability.

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5. Consistency of quality The consistency in quality is aimed at to

ensure proper products of standard specifications. Inferior materials

and spare parts may result into severe consequential losses.

SECONDARY OBJECTIVES: -

The secondary objective of materials management represent the materials

department’s contribution to the achievement of the primary objective of some other

department.

1. Reciprocity

Delibrate buying from its own customers by the company is known as

reciprocity. Sound reciprocity involves a balancing of the advantages and

disadvantages of using one’s buying power as an instrument for getting sales.

2. Promotion of standardization

Standardization helps in controlling materials management process.

Materials personnel can periodically review stock to weed-out non-standard item,

and they can promote the incorporation of standard components into product

designs to reduce cost and they can promote standardization with suppliers.

3. Product improvement

Materials personnel can assist the engineering department by their

economic knowledge in making product improvement. They can suggest

materials or components that will do a better or equivalent job at lower cost.

4. Future forecast

The future out look of prices of basic raw-materials and other items used,

the availability and market trends may also be predicted by the materials

department so as to achieve a better workable margin for companies to decide its

manufacturing and sale activities.

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FLOW OF COMMUNICATION

Marketing department mainly works in coordination and planning of production

department. The main communication flow of marketing department is with these two

departments planning and production. Marketing greatness of marketing department

brings orders from the concerned companies and they supply the information to the

planning department. Planning department according the need and necessarily of the item

gives instruction to the production department when the production of the material starts.

The production department and the marketing department after the material passes stage

1 i.e. forging. The production department both for confirmation. After supplying of

information of the material undergoes different stage of production like forging there is

rolling then information is supplied to planning department after each stage of production

so that planning department should be aware that of which stage is material. Now after

passing the material to the above stages the final inspection is done and then the material

is passed to the store house. After the material has reached to store department, the

information about the material is supplied to the marketing as well as planning

department. In this communication flow occurs between departments.

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VISION

Be recognised as the best and preferred supplier of National / International standard.

MISSION

To be a growth oriented professional company promoting high standards of

business ethics and producing best quality products thereby achieving

international standards of excellence.

To establish a strong R&D facility to fulfill the demands of the automotive

industry as comprehensively as possible.

To make each member of the company feel proud and empowered by fostering a

culture of participation and innovation.

To strive for reduction in defects and achieve 6 Sigma and beyond so as to make

quality a way of life in LPS.

To reduce cycle time in all processes as a step towards over-all improvement.

To provide prompt and excellent service to customers anywhere in the world.

To maximize shareholder's wealth.

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MILESTONES

Certifications / Accreditations

• Self-Certification Status from - FORD TRACTORS.

• Self-Certification Status from - LMW.

• Accredited in Mechanical & Chemical Testing by A2LA (USA), to meet fastener

quality act of USA.

• Accredited in Mechanical Measurement, Mech. & Chemical testing by NABL, Govt. of

India. • ISO 9002

• Self Certification status from TELCO.

• Technical Tie up with Sunil Machinery Co. - Korea

• Licenced Manufacturers of TORX Screws from CAMCAR Co. - USA.

• QS 9000

• TS-16949

• ISO -14001

• Golden Peacock Award

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OBJECTIVES OF THE STUDY

The project report has been prepared in order to achieve certain objectives. To

mention a few are:-

To make readers familiarity towards variety of sales promotional techniques used

by different fasteners companies.

To get acquainted to sales promotion, a promotional fool.

To analyse OEM customers & dealers perception towards such techniques

To analyse loop holes & put forward certain recommendations and suggestions

regarding topic.

To provide different sales promotion techniques that are present before different

fasteners companies to offer.

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RESEARCH METHODOLOGY

Research in simple words can be defined as scientific and systematic search for

pertinent information on a particular topic or subject. It is an endeavor to gain new

knowledge. Thus it is an original contribution to present stock of knowledge making for

its enhancement.

Research methodology is the procedure for conducting the research. Research

methodology should be carefully planned as the accuracy, reliability and adequacy of

results depend up on the research methodology followed. It gives the researcher a

guideline by which he can decide which techniques and procedures will be applicable to a

given problem. Moreover it also helps in evaluation of the research by others also. So for

the research to be purposeful and effective the researcher should plan research

methodology before proceeding to research study.

The following are the aspects, which should be considered while designing a

research methodology.

RESEARCH PROBLEM

The first step while conducting a research is to carefully define the research

problem. The present study has been undertaken to analyze the Various Sales Promotion

Techniques of LPS ltd. & it’s various competitors in this area. It’s aim is to find out that

Sales promotion techniques should be added or improved, so that company can improve

its strategies for increasing its sales in future.

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RESEARCH DESIGN

Research design is the blue print to study any problem. It is a plan for collection,

analysis and interpretation of data in a manner that is relevant to the research purpose

with economy in procedure. The following are the different type of research design.

1) Research design in case of exploratory research studies

2) Research design in case of descriptive research studies

3) Research design in case of diagnostic research studies

4) Research design in case of experimental research studies

The present scheme is exploratory research scheme in this I took case studies and

questionnaire as the important part of the research.

SAMPLE DESIGN

The amount of research work is limited by shortage of time and resources. Due to

these limitations, it is not possible to gather complete information so technique of

sampling is applied. The samples are so selected that they are representative of the entire

problem.

Sampling unit: Dealers

Sample size: 150 Responders

Sampling media: Questionnaire

DATA COLLECTION

There are basically two types of data:

Primary data and secondary data

Primary data

The data which are collected for the first time and happens to be original in nature.

Secondary data

The data which are already been collected by someone else and which has already passed

through the statistical process.

In research primary data is collated by the way of questionnaire, which was filed by the

dealers itself.

32

LIMITATIONS

1. As the Company deals in Industrial Products, rate of response is very less.

2. Industrial good consumers are less in comparison of other consumers

3. The most of material was collected from the persons employed in Company, So

there are chances of biasness.

4. The Scope of Research is very less.

5. Research was done only in Limited Areas.

6. Fully correct information cannot be obtained due to the dependence of dealers on

LPS.

33

DATA ANALYSIS AND INTERPRETATION

AWARENESS OF THE OEM CUSTOMERS AND DEALERS

ABOUT THE COMPANY

Response No. of respondents

Aware 143

Unaware 07

INTERPRETATION:

95 % DEALERS AND OEM CUSTOMERS ARE AWARE ABOUT THE

COMPANY AND 5% ARE UNAWARE.

34

SATISFACTION OF SOCKET + HEAD CAP SCREWS

AMONG OEM AND DEALERS


Satisfied 138

Unsatisfied 12

INTERPRETATION:

92 % OF THE DEALERS ARE SATISFIED WHEREAS 8 % OF THE

DEALERS ARE NOT SATISFIED.

35

SATISFACTION OF LOW HEADD SOCKET CAP SCREWS

AMONG OEM’S AND DEALERS


Satisfied 128

Unsatisfied 22

INTERPRETATION:

85 % OF THE DEALERS ARE SATISFIED WHERE AS 15% ARE NOT

SATISFIED

SATISFACTION OF HEX NUTS AMONG DEALERS

36


Satisfied 135

Unsatisfied 15

INTERPRETATION:

90 % OF THE DEALERS ARE SATISFIED WHERE AS 10 % OF THE

DEALERS ARE NOT SATISFIED.

37

SATISFACTION OF HEX HEAD BOLTS AMONG OEM’S

AND DEALERS


Satisfied 143

Unsatisfied 07

INTERPRETATION:

95 % OF THE DEALERS ARE SATISFIED WHEREAS 5 % OF THE

DEALERS ARE NOT SATISFIED

38

BUYING BEHAVIOUR OF FLANGE BOLTS AMONG

DEALERS


Buy 120

Don’t buy 30

INTERPRETATION:

80% DEALERS BUY THIS PRODUCT WHEREAS 20% DON’T BUY THIS

PRODUCT

39

BUYING BEHAVIOUR OF AXLE BOLTS AMONG

DEALERS


Buy

Don’t buy

INTERPRETATION:

90% OF DEALERS BUY THE PRODUCT AND 10% OF DEALERS DO NOT

BUY THE PRODUCT

40

BUYING BEHAVOIUR OF CONNECTING ROD BOLTS

AMONG DELAERS


Buy 143

Don’t buy 07

INTERPRETATION:

95% DEALERS BUY THE PRODUCT BUT 5%DEALERS DO NOT BUY THE

PRODUCT

41

RESONS FOR BUYING LPS PRODUCTS BY DEALERS


Schemes 30

Customer demand 68

Better result 30

Margin 22

INTERPRETATION:

45 % FOR CUSTOMER DEMAND

20 % FOR SCHEMES

20%FOR BETTER RESULTS

15% FOR MARGIN

42

SALES PROMOTION ACTIVITY USED BY LPS


Dealers margin 38

Automobile magazine 30

Credit facility 22

Inventory services 23

Fairs and exhibitions 37

INTERPRETATION:

25 % FOR DEALER’S MARGIN

20 % FOR AUTOMOBILE MAGAZINE

25 % FOR FAIRS AND EXHIBITIONS

15% FOR INVENTORY SERVICES

15 % FOR CREDIT FACILITIES

43

BEST MEDIA FOR SALES PROMOTION


Fairs 45

Automobile magazines 30

Dealer margin 30

Credit facility 22

Inventory services 23

INTERPRETATION:

20 % FOR DEALER’S MARGIN

20 % FOR AUTOMOBILE MAGAZINE

30 % FOR FAIRS AND EXHIBITIONS

15% FOR INVENTORY SERVICES

15 % FOR CREDIT FACILITIES

44

FINDINGS

1. Though my survey I found that 95 % dealers and OEM customers are aware of

the company and its products

2. As far as the buying behavior of the dealers is concerned , 50 % of the dealers buy

the products due to customer demand, 20 % buy the products for better results, 20

% buy the products for schemes and rest 10 % respondents opt for margin

3. The best media of sales promotion which I found in my survey is the Fairs and

Exhibitions, Automobile magazines, Dealers margin, Schemes, Credit facilities.

4. As far as the performance of the company BR is concerned 50 % dealers said that

the performance is good, 40 % said average and 10 % responded

45

CONCLUSIONS

The marketing situation is changing very fast. With the Increasing competition,

customers are having many alternatives for each and every product available in the

market. As technology is becoming advanced, therefore more complexities have arisen

whereby continuous sales promotion efforts have become a necessity.

During study it was found that LPS has really very strong and efficient dealer network,

where each individual is working hard to his/her level best to maintain. They believe in

the principle: -

NEVER STOP LISTENING

NEVER STOP LEARNING

NEVER STOP TRAINING

The company has been organizing various types of training programs for company and

dealer engineers to meet the expectations of the customers. Customer is the king and he

has always been so and continues to be so. However as the market undergoes a transition

from the sellers market, no one can afford even a single dissatisfied customer. Customer

satisfaction is not only necessary but profitable also because one satisfied customer

brings in many more new customers, besides giving repeat business. Each customer’s

need for the product depends upon his/her personal circumstances or their attitude and

perception towards the product. So why not determine probable needs of all the

customers who have purchased something from the dealer or by company side.

46

SUGGESTIONS AND RECOMMENDATIONS

LPS should concentrate on other countries also rather than concentrating on India.

LPS should use more sales force for capturing the contracts from abroad.

Company should concentrate on brand recognition.

Company should provide good quality product to the customer at lower price.

47

QUESTIONNAIRE

Q1: a) Name of the Dealer’s firm_________________________

b) Location_______________________________________

Q2: Do you know about L.P.S. Yes [ ] No [ ]

Q3: How many of the following products you know: Yes [ ] No [ ]

a) Standard [ ]

b) Special [ ]

Q4: Which product of the L.P.S. you buy Yes [ ] No [ ]

a) Standard [ ]

b) Special [ ]

Q5: Which sales promotion effort of L.P.S. do you know about the

Product?

a) Automobile management [ ] b) Fairs n exhibitions [ ]

c) Paper Ads [ ] d) Bulk discount [ ]

e) Display Stand [ ]

Q6: What should be the various promotional efforts adopted by the

L.P.S. to enhance its sale?

a) Automobile magazine [ ] b) Fairs N Exhibitions [ ]

c) Inventory services [ ] d) Bulk discount [ ]

e) Time delivery [ ] f) Consultancy Sources [ ]

g) Consultancy services [ ] h) credit facility [ ]

Q7: Do you have the dealership of other fasteners manufacturers

Organization Yes [ ] No [ ]

If yes please mention the name of manufacturing organization

48

a) __________________________

b) __________________________

c) __________________________

Q8: What are the various promotional efforts offered by the

Other companies to you?

a) Automobile Magazine [ ] b) Fairs N Exhibitions [ ]

c) Inventory Services [ ] d) Bulk Discount [ ]

e) Time Delivery [ ] f) Consultancy Sources [ ]

g) Consultancy Services [ ] h) Credit Facility [ ]

Q9: According to you which company’s promotion effort is best?

a) L.P.S. [ ] b) sundram fasteners [ ]

c) Mahindra fasteners [ ] d) others [ ]

Q10: which of the following is the best media for sales promotion?

a) Automobile Magazine [ ] b) Fairs N Exhibitions [ ]

c) Display Stand [ ] d) Bulk Discount [ ]

Q11: What would you rank sales promotion of L.P.S. product?

a) Very good [ ] b) Good [ ]

c) OK [ ] d) Bad [ ]

Q12: How often L.P.S. sales representative visits to you?

a) Once in a month [ ]

b) Twice in a months [ ]

c) Thrice in a month [ ]

Q13: What is the attitude of the L.P.S. towards customer?

a) Excellent [ ] b) Acceptance [ ]

c) Good [ ] d) Poor [ ]

49

Q14: Are you satisfied with the L.P.S. promotional efforts as a whole?

Yes [ ] No [ ]

Q15: Any other suggestion from your side to improve the sales

Promotion of L.P.S.

_____________________________________________

_____________________________________________

_____________________________________________

Thanking you,

50

BIBLIOGRAPHY

1. Kotler Philip (Marketing Management) 8th edition New Age International Pvt.

Ltd. publishers, New Delhi.

2. Kothari C.R. 2nd edition (Research Methodology) New Age International Pvt. Ltd.

publishers, New Delhi.

WEBSITE: -

1. http://www.lpsindia.com

2. http://www.google/salespromotion

51

http://www.google/salespromotion

http://www.lpsindia.com/

lps marketing

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