A

Project Report On
Analyzing trade promotion strategies and understanding its effectiveness
For

Esdee Paints Ltd

Submitted By
Sachchit Ranade

Under the Guidance of,

Dr. Poonam Vatharkar Madam

Submitted To

Savitribai Phule Pune University

In the partial fulfillment of the requirements for the award of

Masters in Business Administration (MBA)

Through
Maharashtra Education Society’
Institute of Management & Career Courses, MBA

Batch 2020-22

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 To whom-so-ever it may concern

This is to certify that Sachchit Bhalchandra Ranade has completed his Project work on
the topic Analyzing trade promotion strategies and understanding it’s effectiveness for
Esdee Paints Ltd during the period from 15/10/21 to 15/01/22.

He has been sincere, hardworking and punctual in his work.

We wish him success in his future endeavors.

Authorized signatory.

Designation

Company Seal

I will be receiving the letter in a week, will attach it once I get the same from the company.

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 Declaration

I Sachchit Bhalchandra Ranade, of MBA-2 : Seat No MKT202111 hereby declare

that the Project work titled Analyzing trade promotion strategies and understanding its
effectiveness which has been submitted to University of Pune, is an original work of the
undersigned and has not been reproduced from any other source. I further declare that the
material obtained from other sources has been duly acknowledged in the report.

Date: 30/1/2022 Signature

Place: Pune Name:

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Table of Contents
Chapter No Title Page Number
1 Executive Summary 5
2 Introduction 6

3 Basic Overview of Paint 7

industry
4 Drivers to growth of industry 8-9
5 Company Profile 10 - 13
• About Us
• History
• Vision
• Mission
• Quality
• Products
6 Theoretical background 14 – 17
7 Strategies Considered for 17 – 19
Esdee Paints

8 Objective, scope , limitations 20

9 Research Methodology 21 – 22
10 Sample Profile 23 – 26
11 Data Analysis and 27 – 36
Interpretation

12 Findings & Suggestions 37 – 38

13 Conclusion 39
14 References and questionnaire 40 - 42

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Executive Summary

The purpose of this project titled “Analysing trade promotion strategies and understanding it’
effectiveness for Esdee Paints Ltd” is divided in two parts. The first part of the study includes
interviewing traders/retailers who currently are the dealers for Esdee paints. This data which
has been collected through the interview has helped in deriving many conclusions regarding
various schemes that the company has implemented for the advantage of their dealers and the
kind of response the retailers have about these schemes. Information regarding their
perception about the price, range of products etc was collected. This is totally a quantitative
research based on a descriptive research design. The second part of the project is an analysis.
This is the analysis what the dealers feel about the schemes and whether they are satisfied or
not.

The research includes introduction about the internship, information about the topic of the
research, objectives, scope and literature reviews. The next part includes theoretical
background of the study and at end data interpretation and findings, suggestions and
conclusion.

The research was conducted with the view to analyse, evaluate and to consider the feedback
received from the retailer and utilize the these responses for betterment of the organization.
The best alternative was choosing to increase the sales of the organization and in turn
increases the profits:

The researcher states that: the information or data collected from the Respondents is
authentic.

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Introduction

Trade involves the transfer of goods from one person or entity to another, often in exchange
for money. Economists refer to a system or network that allows trade as a market.

In business and marketing, “trade” refers to the relationship between manufacturers and
retailers. Trade promotion is part of revenue management and refers to marketing campaigns
directed at wholesalers or retailers rather than at final consumers. It is a marketing technique
aimed at increasing demand for products in retail stores. In a trade promotion, wholesalers
and/or retailers are offered special price discounts (often in addition to a trade allowance),
subsidized or free display racks or stands, gifts, or other incentives.

. Trade Promotion is a marketing technique aimed at increasing demand for products in retail
stores based on special pricing, display fixtures, demonstrations, value-added bonuses, no-
obligation gifts, and more.

Trade Promotions can offer several benefits to businesses. Retail stores can be an extremely
competitive environment; trade promotions can help companies differentiate their products
from the competition. Companies can utilize Trade Promotions to increase product visibility
and brand awareness with consumers. Trade Promotions can also increase a product's
consumption rate, or the average quantity of a product used by consumers in a given time
period. Furthermore, effective Trade Promotions can enlarge a product's market segment
penetration, or the product's total sales in proportion to the category's competition. Moreover,
companies use Trade Promotions to improve distribution of their product(s) at retailers and
strengthen relationships with retailers. Lastly, Trade Promotions can be leveraged to
introduce new product launches into retail stores.

Trade promotion is used to achieve the following

1. To increase demand of products in retail stores.

2. To increase product visibility and brand awareness with consumers
3. To increase the total sales of the product
4. To strengthen the relationships with the retailers and introduce a new product in the
retail stores.

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Basic Overview of the Paint Industry

The Indian Paint industry, estimated to be a Rs.21,000 Cr. industry, has been growing at a
rate of above 15% for the past few years. The organized players of the industry cater to about
65% of the overall demand, whereas the unorganized players take care of the remaining 35%,
in value terms. The unorganized players mainly dominate the distemper segment. The
industry consists of two segments, namely
• Decorative segment – caters to the housing sector
• Industrial segment - consists of powder coatings, floor coatings and other protective
coatings catering to the automobile, marine and other industries.

In the domestic market, Decorative segment accounts for 70% of the total demand for paints
whereas the industrial segment accounts for the remaining 30%. Globally, the demand for
paints is almost equally distributed, where both the segments account for close to 50% of
demand.

The Indian paint industry has recently completed 100 years of manufacturing. Manufacturing
of Indian paints started around 1902.The Indian paint industry has seen a gradual shift in the
preferences of people from the traditional whitewash to higher quality paints like emulsions
and enamel. Growing popularity of new variants providing improved finishing and textures,
increasing per capita income of people and efforts on the part of manufacturers to introduce
improved versions like ecofriendly,odourfree and dust and water-resistant paints, have
propelled the growth of the paint market in India. Efforts on the part of the manufacturers to
introduce innovative technologies in the paint market have led to a growth in demand for
paints in India. Paint manufacturers are giving due attention to consumer’s color preferences.
The market is witnessing introduction of breakthrough technologies to improve the paint
quality. Paint companies are also increasingly investing in their R&D to carve out a
differentiated product in the market.

The Indian Paint Industry is only segment of the Indian chemical industry that has been
sharing a consistent double digit growth rate in the last five years.The growth rates recorded
over the last few years have been extremely encountered with upward trend in paint demand
and consumption.

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Drivers to the growth of the Paint Industry

1. Increasing level of income and education – The increasing proportion of young population
along with increasing disposable incomes is leading to a change in consumer habits. The
Indian economy is shifting from a savings economy to a spending economy. With more
income at their disposal, people are now ready to pay for better products and paint is no
exception. Educated consumers are more brand conscious and seek value in what they
consume. Thus, paint companies offering value-added features like non-toxicity, weather
protection, texture, eco- friendly production, etc. will attract more demand. These value-
added products enable the manufacturers to earn a better premium as compared to the regular
paints, thus offering higher margins.

2. Increasing Urbanization : Urbanization is leading to a shift from temporary houses to

permanent houses. Urban houses are well-designed in its interior as well as exterior aspect.
This calls for more houses being painted using medium and premium paints. For urban
houses, interior design is becoming a fashion statement and a lot of paint is used to decorate
the interiors. This will lead to an increase in the per capita consumption of paint which will
increase the overall demand of paint. Urbanization also brings more nuclear families. More
nuclear families mean more number of houses even for the existing population thus further
driving the demand.

3. Increasing share of organized sector: Decrease in taxes on key raw materials will improve
the position of the organized players. The Organized sector is expanding its distribution
network and adopting the installation of tinting machines at retail outlets. These tinting
machines offer a wide variety of color shade options to choose from. The unorganized
players are not in a position to offer such facility as it is comparatively capital intensive. Shift
in use, from distemper segment towards premier segment is also shifting market share from
the unorganized sector to the organized sector. 4. Development of the Realty, Automobile
and Infrastructure sector: The growth of the paint industry is largely dependent on the
development of the realty and housing sector, as decorative segment generates about 70% of
the total paint demand from this sector. The Automobile segment generates more than two-
third of the demand for Industrial paints, and hence is the growth driver for Industrial Paints.
The Infrastructure segment creates direct demand for paints as well as creates indirect

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demand through supporting the growth of the realty, automobile, FMCG and other industries
where paint is used. The growth potential in the above 3 sectors is immense, the paint
industry being dependent on these 3 sectors is expected to grow along with them.

5. Availability of financing options: Easier housing finance and auto finance is expected to
favor more people to buy houses and travel in personal vehicles. This will drive the growth of
housing and automobile sector, of which the Paint industry will get its share. 6. Increasing
Penetration in the Rural Markets: Paint usage in rural areas is generally in the distemper
segment, hence dominated by the unorganized players. Demand in rural areas is dependent on
agriculture, which is dependent on the monsoons. With the development of irrigation facility,
the dependence of agricultural output on monsoons will be on a decreasing trend. Also, with
the modernization of agriculture and accompanying development of rural India, consumer
preferences are expected to improve. Paint companies are expanding their distribution
network in rural parts of India, which is a relatively untapped market for the organized
players. These factors supported by the increasing penetration of the paint companies will
help drive the demand for paints.

Effects of the pandemic on paint industry

COVID-19 has been the most disruptive force for the global paint and coating industry in
recent memory.
The Indian paint and coatings industry has seen demand nose-dive in the last one year in an
unprecedented manner.

Although production at most of the paint production units has resumed in a staggered
manner, the continuing rising number of cases and falling demand has caused anxiety among
the leading paint and coating producers.

Companies have changed their way of offering promotional schemes to the retailers. The
Pandemic has changed the way people spend their money. Everything has shifted to a digital
platform but Paint is one of the very few industries which is functioning as it was before the
pandemic. Changes in promotional activities have been affecting the buying behavior of
retailers.

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Company Profile

Established in 1963, Esdee Paints Limited is one of the leading paint manufacturing companies
in India that is well recognized for Automotive Refinishes, Decorative and Wood finishes,
Industrial – High-Performance coatings and specialty coatings like Glass finishes. In addition,
the company also develops tailor-made products to meet the requirements of OEM customers.
Esdee is an ISO 9001:2015, 14001:2015 and BS OHSAS 18001:2007 certified company and,
our products are approved by reputed organizations like C.I.R.T, A.R.A.I. etc.
Proud to say, Esdee Paints has undoubted recognition for the most reliable quality products.

About Esdee Paints LTD

Esdee Paints Limited was established in the year 1963 at Thane, Maharashtra on a modest scale
with a determined focus on serving the Automotive Refinish and Decorative Paint market. In
India, the company has now emerged as one of the leading and reliable manufacturers of Paints
and Allied Products after serving the Indian Paint Industry for the last 53 years with its five
state-of-the-art manufacturing facilities with sophisticated machinery and equipment. With an
absolute emphasis on the quality, Esdee products have found wide acceptance in the market
which enabled us to diversify into areas like Wood Finishes, Industrial and other specialized
coatings. The in-house state-of-the-art Research and Development lab scientists are
continuously engaged in developing products with the latest technology. Only after thorough
testing of products with hi-tech testing equipment, products are launched and delivered to the
market.
As far as the manufacturing facility is concerned, the Company has the annual production
capacity of more than 500 lakhs Ltrs/Kgs. Esdee products are tested and approved by reputed
test houses such as National Test House (N.T.H.), Central Institute of Road Transport
(C.I.R.T.) and The Automotive Research Association of India (A.R.A.I.).Quality, Service,
Commitment and Creativity are the driving forces of our business. Our state-of-the-art
technology helps us to offer products in compliance with stringent global standards. Today,
with our multi-location (5) plants and the best manufacturing practices with good governance,
we are a fast growing company well known for good and trustworthy quality products,
competitiveness and quality solutions and services.

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OUR HISTORY
Late Mr. Ganesh Lal Dawra started Esdee Paints at Thane in the year 1963 as a small-scale
unit. Backed by vision and commitment, today, 53 years later, it has grown into a major player
in Industrial, Protective, Decorative and Specialized Coatings. The company has emerged as a
leader in Auto Refinishing, Wood Finishes, and Industrial Coating markets.
The vision behind Esdee Paints Limited is Mr. Mahavir G Dawra, a dynamic new generation
technocrat– entrepreneur, who finds opportunities for improvement in the problems.
Unwavering focus on technology & customer service constantly keeps the company in the fast
track of growth. To cater to growing demand from various market segments, additional
manufacturing facilities are installed at Vatva, Moraiya and Turbhe (situated in Gujarat and
Maharashtra respectively) in the year 1988, 1994, 2007 and 2010.
Esdee Paints Limited is a pioneer in India to introduce Polyurethane Coatings for the general
refinishing market of Automotive & Industrial use. For a long time, Esdee Paints is considered
as the right solution provider for coating problems by various industries.

OUR VISION
• To be recognized globally as a reliable solution provider of proven quality products
• To maintain high-level of business ethics & work within the framework of
environmental safety
• To offer high-quality products with optimum utilization of technology at appropriate
price
• To continuously strive for customer satisfaction beyond their expectation

OUR MISSION
• To continuously provide better & environment-friendly coating solutions
• To develop & innovate by continuous Research & Development
• To go by the motto, ‘Customer satisfaction by all means’
• To nurture the culture of dynamism and learning in all the employees leading to
everyone’s professional & personal growth

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QUALITY
Esdee products are tested and approved by reputed test houses such as National Test House
(N.T.H.), Central Institute of Road Transport (C.I.R.T.) and the Automotive Research
Association of India (A.R.A.I.).
Quality, Service, Commitment and Creativity are the driving forces of our business. Our state-
of-the-art technology helps us to offer products in compliance with stringent global standards.
Today, with our multi-location (5) plants and the best manufacturing practices with good
governance, we are an enthusiastic and fast growing company well-known for good and
trustworthy quality products, competitiveness and quality solutions and services.

Esdee Paints has a C&F setup in almost 20 states in India. The States are further divided into
areas for easy and rapid service and delivery to retailers

Our Products :

• Auto Finish
1. Superset

• Interior Emulsion

1. ultra luxury premium emulsion – ecosilk

2. high sheen emulsion - sheen max emulsion
3. premium interior emulsion – harmony emulsion
4. interior emulsion 1 - swagat emulsion
5. interior emulsion 2 - value plus emulsion
6. acrylic distemper

• primers/putty
1. acrylic primer sealer - primol
2. multipurpose primer - value plus primer
3. universal primer - swagat universal primer
4. professional primer - esq primer

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• Exterior Emulsion

1. elastomeric acrylic high performance finishing coat -esdura emulsion coat

2. ultimate exterior protection - perfex emulsion
3. acrylic emulsion (economical) - value plus emulsion
4. professional premium emulsion - esq emulsion
5. professional exterior emulsion - swagat emulsion

• wood finish

1. Timbercoat basecoat wood sealer

2. Timbercoat premium polyurethane sealer exterior / interior
3. Timbercoat penetration primer sealer
4. Timbercoat melamine wood finish sanding sealer
5. Timbercoat sanding sealer
6. Timbercoat polyurethane sanding sealer (fast drying)
7. Timbercoat polyurethane MDF filler white
8. wood stain (solvent based)

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Theoretical background

Trade promotions are inducements offered by manufacturers to retailers to encourage them to

reduce retail prices. Trade promotions are temporary price cuts that manufacturers offer
retailers to encourage them to reduce retail prices. While trade promotion spending as a
percentage of marketing budget has increased dramatically. Trade promotions are widely
practiced but sparingly researched. Retailers prefer trade promotions that provide short-term
economic benefits; vendors prefer those that provide long-term, franchise-building benefits.
Both promotion satisfaction and relationship satisfaction with the vendor play important roles
in trade deal receptiveness. Trade promotions are marketing campaigns and promotions
organized by brands that are aimed at increasing sales within a retailer, sweetening the pot for
both the store and the shopper. This is partly a B2B marketing play,

1)Discounts / Increased margin of sale

The number 1 type of trade promotions run by any company is offering discounts or increasing
the margin offered to the channel dealer. This is especially useful for small business owners
who do not have the time or the manpower to run company operated trade promotions at dealer
end.

By this method, the dealer himself is motivated to run ideas so that he can promote the product
in his locality. Each locality and region is different. Hence, by using this method, each dealer
will run a different style of trade promotion to achieve his targets. There can be a criteria
attached to this type of trade promotions. It can be offered if the dealer does 150% of his targets.
Or even if he achieves 100%.

The problem with this type of trade promotions is that there is no guarantee of the effort that
the retailer or dealer has put in selling your product.

2) Incentives to Sales staff / Gifting

Another excellent type of trade promotion is to give incentive to sales staff. Ultimately, the
sales staff is the one which is going to be in touch with the customer. The sales staff also get

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very happy whenever monetary awards are announced and the aggressive ones will go all out
to achieve the targets.

Care should be taken that the figures are properly tracked at all times and there is no unfair
treatment given to a particular sales staff which can demotivate him in the long term. The
objective of trade promotions is clearly to motivate your sales dealer and their staff to sell the
product better. However, unethical means should not be used to achieve sales targets.

It is upto the company to decide whether the incentive should be in the type of a monetary
reward or it should be gifts given to executive. Gifts have a unique value and they are more
like a recognition and respect for the sales executive. However, monetary value might be more
of a reward for him because he might need the money or might buy whatever he wishes from
that money. It can also be left upto each executive whether he wants monetary reward or wants
to choose gifts.

3) Coupons / rebates

Coupons are always attractive to end customers because they ensure a guaranteed discount at
the retailer or the dealers outlet. This is also a method to drive traffic to the retailer’s store and
can be especially used when the retail outlet is brand new or when it is losing out to a
competition.

Coupons are types of sales promotions in itself. However, it can be used at the trade promotions
level and the dealer can run Scratch cards or other such coupon based promotions so that
customers get “Assured gifts”. when the company backs the dealer in running such coupon or
rebate based promotions, then the dealer is extra motivated to sell your items. At the same time,
this ensures liquidation of stock and refilling at dealer end.

4) Dealer competition

A fantastic way to motivate your dealers to perform better is to keep dealer competitions. These
dealer competitions can be short term or long term. Short term ones can actually be regional,
for example, the best sales dealer in territory X gets a free print ad in newspaper from the
company or he gets free incentives for all his sales people.

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Another, long term format of dealer competition is to keep awards every year or to have dealer
leagues within the company. Example would be a Platinum league of dealers who get additional
2% discount on all products they sell. Gold league which gets 1% discount, so on and so forth.

What this does is, it motivates the dealers in 2 ways. a) to get the additional discount being
offered to league members. b) To gain respect in the company. Thus, Dealer competitions can
be an excellent type of trade promotions if used judiciously.

You can also Free holidays in the form of conferences or product launches to a group of dealers
who have outperformed in sales and revenue generation.

5) Exhibitions / Trade shows

In one of the companies worked for, we used to have regional meetings between the
distributors and his dealers. These meetings used to showcase all the products we had in our
company. And we used to keep lunch for all the retailers who report to distributors. During
such sessions, we came across many questions for products. Some questions were very positive
feedbacks where the product could be improved. Other questions were immediately answered
and led to further learning for the dealers.

Just like the above meeting between distributors and retailers, similar trade promotion
techniques can be used by arranging trade shows and exhibitions where the dealers get to meet
their top customers and answer the queries by these top customers. At the same time, such
exhibitions also help in acquiring new channel members as well.

6) Co operative advertising

If you look at newspaper ads done by some popular consumer durable companies
like LG, Sony and others, you will see that they always highlight regional dealers in their ads.
Companies like Apple, which are selective in their dealer selection and have premium outlets
only, directly sponsor their channel dealers to give ads in newspapers.

The co operative advertising actually helps the awareness of the channel dealer in that region.
This in turn helps the overall sales of the products and the brand. Co operative advertising

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should be done when the dealer has launched or prior to seasonal sales. This increases the recall
of the brand in the mind of the consumers.

7) Providing demonstrators

When a customer enters a multi brand showroom, then he himself is confused with regards to
which brand to purchase. At such times, in-shop demonstrators, who are sponsored by the
company can help a lot in convincing the customer and converting them. These in shop
demonstrators are trained to have the complete knowledge of the product at their fingertips.

Naturally, the brands which provide in-shop demonstrators to retailers and dealers have the
upper hand as compared to brands which cannot sponsor such demonstrators. While buying a
television, if a demonstrator tells me 10 reasons of superiority of the product against
competitors , then i will buy the television just because i was given the knowledge. Such
informational sales talk can go a long way in acquiring more customers.

8) POP material or Sampling of product

If your type of products cannot have in shop demonstrators and if they are too low in value,
then there are other types of trade promotions you should use. One is to use an excellent point
of purchase branding exercise. Using various POP material such as danglers in showroom, on
product display, pillar branding etc can help the brand retention in the mind of the customers.

Similarly, FMCG products should target impulse buying and should also conduct time to time
sampling of the products. Nowadays, much of the sampling is done by offering
product bundling (1+1 free). Nonetheless, products like perfumes, eatables etc can be offered
as samples.

Strategies Considered for Esdee Paints

1. ATR – It stands for Annual Turnover rebate. ATR is calculated by different

companies in their own format decided for that financial year in the board meetings
ATR is the amount of money issued by the company to the traders/retailers for completing
certain targets for net sales in that financial year

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For Esdee Paints the company has put slabs according to the turnover of that financial year

Net sale from 6 lakh to 12 lakh – 1% of total net sale given as discount
Net sale from 12 lakh to 18 lakh – 1.5% of total net sale given as discount
Net sale above 18 lakh – 2% of total net sale given as discount

2. Trip scheme – This was a very attractive scheme for dealer. But after covid most of
the companies have cancelled their trip scheme. The condition for the dealers is to
complete a base of 50Lakh per year to qualify. After he crosses the base , various
locations are decided according to the targets that he achieves and qualifying dealers
are taken for a foreign trip.

3. Free Sample – This scheme is used to start a certain product at a retail counter.
Samples of certain product are given free of cost to later generate the order for that item from
the dealer. This strategy always works because you’re letting your retailers experience your
product before nudging them to purchase it. This instils the feeling of trust and removes all
apprehension regarding the purchase. It is also a great way to introduce new aspects of an
existing product or new products that have just been launched.

4. Goodies from Company – The Company tries its level best to keep the dealers and the
painters happy. They distribute T-shirts, caps, masks, table clocks etc. to certain
dealers based on their performance.

5. Extra per liter rebate – A rebate offers money back to customers. Rebates can either
be instantly redeemed - as a price reduction upon purchase, just like coupons - or
claimed later, such as in the case of mail-in rebates. The consumer first pays full price
for the product, then sends the manufacturer a proof of purchase. The manufacturer, in
return, sends the consumer a refund by credit note.

6. Painters meet – In this strategy the company focuses more on the painters who will be
the final user of the product. A Program is held at decided venue and all the painters
connected with the retailers are invited… Some product explanation/application is
shown and painters are urged to use the same…

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In Store Display - Product displays in retail outlets aren’t created equal. On shelves, the
“bull’s eye zone” - the second and third shelves from the top - carry hot-selling items and top
brands. Bottom shelves are where bulk items and store brands are located.

Items are placed at end caps to stand out, which comes at an additional cost for the
manufacturer, and point-of-purchase (POP) placements offer merchandise that shoppers buy
on impulse while waiting for their turn at the cash register. POP items include candies,
chocolates, batteries, playing cards, magazines, and toothbrushes.
Other in-store display tactics you can tap to promote your retailer products include:

• Floor stickers
• Special racks

• Signs, banners, and posters

• Lifesize display stands

• Demonstrations

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Objectives

1. To Understand various trade promotion strategies implemented by the company.

2. To understand effectiveness of these strategies in the market.
3. To Analyze the retailer satisfaction/response towards these strategies.
4. To understand the retailers suggestions towards these strategies

Scope of Study :

1) Scope of study is Pune District

2) The topic will cover different types of trade promotion strategies implemented by the
company.
3) The topic will cover retailer response/satisfaction towards various promotion
strategies
4) The study also analyzes expectation of retailers in terms of product promotion
towards the company.
5) This study will also help to the company to know about its promotional activities.

Limitations:

1. The study is only restricted to Pune district.

2. The findings of the study are exclusively based on the information provided by the
respondents.
3. Some of them were not ready to respond for the questionnaire
4. Time constraint was one of the major limitations.

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Research Methodology

A statement of the problem is used in research work as a claim that outlines the problem
addressed by a study. A good research problem should address an existing gap in knowledge
in the field and lead to further research.
It focuses on the following points - What data to collect , Who to collect it from , How
to collect it , How to analyse it,
In other words, the methodology chapter should justify the design choices, by
showing that the chosen methods and techniques are the best fit for the research aims and
objectives, and will provide valid and reliable results. A good research methodology provides
scientifically sound findings, whereas a poor methodology doesn’t.

This report too with the help of research tries to address one of the aspects of any
organization i.e. Trade promotion strategies and their effectiveness.

STATEMENT OF PROBLEM: The study gives a clear view regarding the trade promotion
strategies being carried out by Esdee paints ltd. The purpose of this study is to understand
various strategies implemented by the company and the way in which the retailers respond to
these strategies.

RESEARCH DESIGN:

In this project descriptive research design is used. It includes surveys and fact finding
enquires of different kinds. Descriptive research is used to describe characteristics of a
population or phenomenon being studied. It does not answer questions about how/when/why
the characteristics occurred. Rather it addresses the "what" question

Population: A population is a complete set of people with a specialized set of characteristics,

and a sample is a subset of the population.
Population is 100 retailers.

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Sample Size: A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt in selecting
items for the sample.
Sample Size for this research is 40 retailers.

Method :
In this research Non-Probability Convenience Sampling method is used
A convenience sample is a type of non-probability sampling method where the sample is
taken from a group of people easy to contact or to reach. There are no other criteria to the
sampling method except that people be available and willing to participate. In addition, this
type of sampling method does not require that a simple random sample is generated, since the
only criterion is whether the participants agree to participate

DATA COLLECTION:
❖ Primary data
❖ Secondary data

Primary data - Preliminary information from study collected through. Discussion. Such data
can be generated by the survey using Questionnaire.

Secondary data - Secondary data was obtained from the company's official sales figures and
income statements and financial management of the information, text books, periodicals and
other information in the annual reports.

Questionnaire – The sample questionnaire contains 2 sections Demographic section and

Actual questions. It is a total set of 15 questions with most of it being close ended.
Some questions are kept as open ended as the research is carried out in form of discussion
with the retailers.

Statistical tools :
• Pie chart
• Bar Diagram

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Sample Profile:
• Age

Age Total Percentage

20-30 5 12.5
31-40 18 45
41-50 10 25
Above 50 6 15
Total 40 -

Age

13% 20-30
15%
31-40
41-50
25%
Above 50
45

From the date we can interpret that 13% retailers belong to age group 20 to 30 , 45% retailers
belong to age group 31 to 40 , 25% retailers belong to age group 41 to 50 and 15% retailers
belong to age group 50 & above.

• Gender

Gender Total Percentage

Male 38 95
Female 2 5

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 Other N/A N/A
40

Gender

5% Male

Female

95%

From this Data we can interpret that 95% of the retailers are male while only 5% are Female.
This shows that the paint industry is a Male dominated industry.

• Educational Qualification

Educational Qualification Total Percentage

SSC 8 20
HSC 12 30
Graduation 17 42.5
Post-Graduation 3 7.5
40

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 Educational Qualification

8%
20% SSC
HSC
42% Graduation
30% Post Graduation

We can interpret that 20% retailers have completed their SSC but have not studied further.
30% retailers have passed their HSC. 42% retailers have completed their graduation.
8% retailers have completed their post-graduation.

• Since how long have you been in this business

Business Experience Total Percentage

Less than 5 years 4 10
5-10 years 10 25
10-15 years 14 35
Above 15 years 12 30
40

Business Experience

10% Less than 5 years

30%
25% 5-10 years
10-15 years
Above 15 years
35%

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We can interpret that 10% retailers have an experience of less than 5 years. 25% retailers
have an business experience of 5 to 10 years. 35% retailers are vastly experienced and have
been working for 10 to 15 years in this field. 30% retailers are the most experienced and have
an experience of above 15 years.

• What type of business form do you have, sole proprietorship/partnership?

Type of Business Total Percentage

Sole Proprietorship 28 70
Partnership 12 30
40

30%
Sole Proprietorship
Partnership
70%

From the figures 70% retailers are the sole owners of their shop. While the remaining 30%
have started their shop with some partner (Partnership)

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Data Analysis and Interpretation
Section B

• Do you get timely information of sales promotion schemes from the company?

Frequency Total Percentage

Always 18 45
Often 10 25
Sometimes 6 15
Rarely 4 10
Never 2 5
40

Frequency

10% 5%
Always
Often
15% 45% Sometimes
Rarely
25% Never

From the figures mentioned above 45% retailers always get the information about
promotional schemes on time. 25% retailers get the information often. 15% retailers are
sometimes contacted about the scheme. 10% retailers are rarely informed about the scheme.
5% retailers are never informed about the scheme.

• Does the benefit of sales promotion scheme reach to you properly?

Frequency Total Percentage

Always 13 33

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 Often 9 22
Sometimes 8 20
Rarely 6 15
Never 4 10
40

Benefits
Always
10% Often
15% 33%
Sometimes

20% Rarely
22% Never

From the collected data we can interpret that 33% retailers always get the benefits from the
company on time. 22% retailers receive these benefits often. 20% retailers sometimes receive
the benefits from company’s side. 15% rarely get these advantages. We can also see that 10%
retailers never get benefits of sales promotion schemes.

• What do you think about the price of the product?

Frequency Total Percentage

Highly Satisfied 16 40
Satisfied 10 25
Moderate 8 20
Dissatisfied 4 10
Highly disatisfied 2 5
40

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 Product pricing

Highly Satisfied
5%
10% Satisfied
40% Moderate
20%
Dissatisfied
25% Highly disatisfied

From the collected data , We can interpret that 40% retailers are highly satisfied with the
pricing of the products. 25% are satisfied with the pricing. Response of 20% people was that
they were moderately happy about pricing. 10% retailers are dissatisfied with the product
pricing while 5% are highly dissatisfied regarding the pricing.

• How do you rate the range of Products?

Range of products
Frequency Total Percentage
Good 24 60
Average 10 25
Poor 6 15
40

Range of Product

15% Good

Average
25% 60%
Poor

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60% retailers feel that the product range of Esdee Paints ltd is good. 25% retailers feel that
product range is average. While 15% feel that product range is not up to the mark.

• How do you rate Esdee Paints on the following trade promotion schemes
1. ATR

Frequency Total Percentage

Highly Satisfied 14 33
Satisfied 10 22
Moderate 6 15
Dissatisfied 2 5
Highly disatisfied 8 20
40

ATR
Highly Satisfied
21% Satisfied
35%
5% Moderate
16% Dissatisfied
23%
Highly disatisfied

The annual turnover rebate scheme is one of the most important and beneficial scheme.
Rightly 35% retailers are highly satisfied with the ATR scheme. 23% are satisfied with the
scheme. 16% retailers are moderately satisfied. 2% are dissatisfied. We can see that 21% are
highly dissatisfied with the ATR scheme of the company.

2. Trip scheme

Frequency Total Percentage

Highly Satisfied 13 32.5
Satisfied 9 22.5

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 Moderate 6 15
Dissatisfied 4 10
Highly disatisfied 8 20
40

Trip Scheme

Highly Satisfied
20%
32% Satisfied
10% Moderate
Dissatisfied
15%
23% Highly disatisfied

The trip scheme is one of the most important and beneficial scheme. 32% retailers are highly
satisfied with the trip scheme. 23% are satisfied with the scheme. 15% retailers are
moderately satisfied. 10% are dissatisfied. We can see that 20% are highly dissatisfied with
the trip scheme of the company.

3. Free Sample scheme

Frequency Total Percentage

Highly Satisfied 14 35
Satisfied 9 22.5
Moderate 8 20
Dissatisfied 4 10
Highly disatisfied 5 12.5
40

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 Free Sample

Highly Satisfied
13%
10% 35% Satisfied
Moderate
20% Dissatisfied
22% Highly disatisfied

Free sample schemes are always beneficial to the retailers to start selling a new product. 35%
retailers are highly satisfied with the company for giving free samples. 22% are satisfied with
the scheme. 20% retailers are moderately satisfied. 10% are dissatisfied. We can see that 13%
are highly dissatisfied with the trip scheme of the company

4. Painters meet
Frequency Total Percentage
Highly Satisfied 15 37.5
Satisfied 8 20
Moderate 7 17.5
Dissatisfied 4 10
Highly dissatisfied 6 15
40

Painters meet

Highly Satisfied
15%
Satisfied
10% 37%
Moderate
18% Dissatisfied
20% Highly disatisfied

In this strategy the company focuses more on the painters who will be the final user of the
product. This in turn is beneficial to the retailers as their sale increases. 37% retailers are

32 | P a g e
highly satisfied with the company for arranging painters meet. 20% are satisfied with the
scheme. 18% retailers are moderately satisfied. 10% are dissatisfied. We can interpret that
15% are highly dissatisfied with the company regarding the painters meet scheme.

5. Goodies Distribution

Frequency Total Percentage

Highly Satisfied 15 37.5
Satisfied 7 17.5
Moderate 9 22.5
Dissatisfied 5 12.5
Highly disatisfied 4 10
40

Goodies distribution

Highly Satisfied
10%
13% Satisfied
37%
Moderate
23% Dissatisfied
17%
Highly disatisfied

T-shirts , caps, masks stickers are distributed by the company and retailers further pass them
on to their staff or painters. 37% retailers are highly satisfied with the company for
distribution of goodies. 17% are satisfied with the scheme. 23% retailers are moderately
satisfied. 13% are dissatisfied. We can interpret that 10% are highly dissatisfied with the
company regarding distribution of goodies.

6. Extra per litre rebate

Frequency Total Percentage
Highly Satisfied 16 40
Satisfied 12 30
Moderate 6 15
Dissatisfied 4 10
Highly dissatisfied 2 5
40

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 Extra Rebate
5% Highly Satisfied
10% Satisfied
15% 40%
Moderate
Dissatisfied
30%
Highly disatisfied

The retailers are given some extra discount on certain items and encouraged to take
maximum advantage. 40% retailers are highly satisfied with the company for offering some
extra rebate. 30% are satisfied with the scheme. 15% retailers are moderately satisfied. 10%
are dissatisfied. We can interpret that 5% are highly dissatisfied with the company regarding
this extra rebate scheme.

• How do you rate the sales promotion efforts of the company?

Frequency Total Percentage

Excellent 14 35
Very Good 10 25
Good 7 17.5
Average 5 12.5
Poor 4 10
40

Sales promotion efforts

Excellent
10%
13% 35% Very Good
Good
17% Average
25% Poor

We can interpret that 35% retailers feel that sales promotion efforts of Esdee Paints ltd are
excellent. 25% feel that the effort is very good. 17% retailers have the opinion that the efforts

34 | P a g e
from company’s side are good. 13% feel that these efforts are average. Although 10%
retailers feel that the company does not do any effort for promotion and efforts are poor.

• Does the company provide extra incentives for In shop display

Type of Business Total Percentage

Yes 25 62.5
No 15 37.5
40

In Shop display

38%
Yes No

62%

In shop display plays a major role in attracting customers. 62% retailers are provided extra
incentives for displaying Esdee products in their shop. While 38% are not given any
incentives.
• Overall Satisfaction Rating of trade promotion strategies

Frequency Total Percentage

Excellent 18 45
Very Good 11 27.5
Good 6 15
Average 4 10
Poor 1 2.5
40

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 Overall Satisfaction

10% 2% Excellent

Very Good
15% 45% Good

Average
28%
Poor

From the collected data we can say that 45% retailers rated the overall satisfaction as
excellent. While 28% rated it as very good. 15% retailers stated that their overall satisfaction
is good. 10% feel that their overall satisfaction is average. Only 2% feel that they are not
satisfied overall , which is a big thing for the company.

• Have you changed your strategies post pandemic ?

Change in strategy Total Percentage

Yes 34 85
No 6 15
40

Changes in strategy post

Covid
Yes No
15%

85%

We can interpret that majority that is 85% retailers have changed their strategies post Covid
while 15% still use same strategies.

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Findings

1. We found out that most of the retailers belong to the age group 30 to 40 so they are
well experienced
2. Paint Industry in India is a male dominated industry.
3. Most of the shop owners are graduates and they can understand the value of schemes
properly
4. The company gives timely information about the schemes to their dealers.
5. Most of the retailers are satisfied with the price and product range of Esdee Paints
Ltd.
6. The ATR scheme gave the retailers a lot of profit and they were happy with it.
7. Distribution of free samples helped the dealers to start certain new products and this
in turn increased the sale of Esdee Paints ltd
8. Retailers were very happy with the painter meets carried out by the company, they
were shown applications of products and so Painters started ordering the same
products from these retailers
9. Goodies like T-shirts and masks etc were distributed among some important dealers
by the company.
10. Dealers profit increased due to the extra rebate provided by the company on some
products
11. Some dealers are given extra incentives to display Esdee Paints products in their
shops. This is done so that the only the displayed product is visible.
12. The pandemic has changed the way of functioning for the paint industry and the same
is applicable to retailers as they have changed their approach of selling products
13. Overall the retailers are satisfied with Esdee Paints Ltd

Suggestions :

1. Proper Journey cycle visit should be scheduled by the sales team to enhance
interaction with the dealer.
2. The sales team should also explain about the current market schemes and push the
retailers to buy Esdee paints products.
3. Sales officer interaction could help solve problems related service, product

37 | P a g e
 availability and also lead generation.
4. Further improvements can be made to increase stocking so that all range of products
are covered.
5. Some dealers were not able to complete their annual target , but are major dealers for
the company . So the company should give them some extra rebates in place of the
ATR.
6. On store activity/product trials for dealers and painters. We could conduct activity to
enhance the technical knowledge of the product. On store activity should focus on
methodology of product usage and their USP so that it would be easy for dealers to
convince customers.
7. The company should give special store schemes for non-exclusive dealers .
Implementation of individual special Store Schemes would increase the sales
contribution.
8. Extra per liter schemes must be given to all dealers irrespective of their purchase as
dealers are influenced by profit margin Dealers would support the company providing
them with increased purchase order .
9. Scheduled Point Of Purchase Stalls in-front of dealer outlen by the depot to enhance
the product awareness and visibility.
10. On-time delivery and Replacement of damaged product as early as possible. Timely
delivery has been the source of dissatisfaction among the dealers so it should be
rectified. This would also help to improve their overall satisfaction about the company
11. Implement certain schemes to bridge the gap between the dealer and company.
Feedback forms would reduce the communication gap between the dealer.

38 | P a g e
Conclusion

The Project was aimed to understand the trade promotion strategies implemented by Esdee
Paints ltd and analyze the effectiveness of these schemes.

Going by the recent economy, all companies are engaged in a race to attract more retailers
build a long term relationship with their loyal customers. The key to loyalty is through
ensuring that retailers are happy or satisfied . A satisfied retailer will act as a spokes person of
the company's product, and bring in more buyers.

For this they have to ensure that retailers are kept satisfied by offering timely schemes to
them. Every retailer is profit oriented , so he is of the opinion that maximum schemes should
be allotted to them so that their profits increase. This in turn will increase their purchases
from the company

All the efforts of the company are to try and understand the buying motives keeping in mind
the profits , maintaining proper stock levels and working out suitable promotional strategy is
to ensure that maximum retailers buy products of Esdee Paints. In Today's competitive
environment, where companies are adopting various methods to woo the prospective
consumers, Esdee paints must focus on the type and quality of schemes that they give to the
traders/retailers.

To conclude
the study with the positive note that Esdee Paints have a good number of loyal retailers who
regularly buy products of the company. Even though retailers are loyal, but some of them are
not fully satisfied . To improve the satisfaction level of the retailers and to maintain the level
of satisfaction among the retailers, the company must adopt various new strategies to improve
profit and bridge the gap between the company and it’s retailers as they should feel a connect
towards the company which will help in maximizing purchases.

39 | P a g e
References :

www.esdeepaints.com
www.wikipedia.com
https://acuvate.com/blog/trade-promotions-strategies-best-practices-tools
https://www.marketing91.com/types-of-trade-promotions

Appendices :

Questionairre
Demographic Profile

1. Age
• 20-30
• 31-40
• 41-50
• Above 50

2. Gender
• Male
• Female
• Other

3. Educational qualification
• SSC
• HSC
• Graduation
• Post-graduation

4. How long are you into this business

• Less than 5 years
• 5-10 years
• 10 -15 years
• Above 15 years

5. Type of Business
• Sole Proprietorship
• Partnership

40 | P a g e
Section B

Do you get timely information of sales promotion methods from the company?

• Always
• Often
• Sometime
• Rarely
• Never

Does the benefit of sales promotion scheme reach to you properly?

• Always
• Often
• Sometimes
• Rarely
• Never

How satisfied are you with the pricing of the products?

• Highly satisfied
• Satisfied
• Moderate
• Highly dissatisfied
• Dissatisfied

How do you rate the range of Products?

a. Good
b. Average
c. Poor

How do you rate Esdee Paints on the following Parameters

Highly Highly
Satisfied Moderate Dissatisfied
Parameter Satisfied disatisfied
Annual turnover rebate
Trip scheme
Free Samples
Painters meet
Goodies from Company
Extra per liter rebate

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 How do you rate Esdee Paints on the following Parameters
• Excellent
• Very good
• Good
• Average
• Poor

Does the company provide extra incentives for In shop display

• Yes
• No

Overall Satisfaction Rating of trade promotion strategies

• Excellent
• Very good
• Good
• Average
• Poor

Have you changed your strategies during or post Pandemic

• Yes
• No

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