A PROJECT REPORT ON “Study of Promotional Activities at Choithram LLC With special emphasis on role of promotion in building strong store image and customer flow” ” For T. Choithtram & Sons L.L.C. U.A.E. (Dubai) Submitted in the Partial Fulfillment of the Requirement Of Course Master in Business Administration (SESSION 2006-2008) Submitted by KRISHNA. R. PAWAR (Guide) Prof. Mr. Yuvraj Lahoti & Prof. Mr. Doke Vishwakarma Institute of Management
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A PROJECT REPORT
ON
“ Study of Promotional Activities at Choithram LLC Wi th
special emphasis on role of promotion in building strong store image and customer flow”
”
For
T. Choithtram & Sons L.L.C. U.A.E. (Dubai)
Submitted in the Partial Fulfillment of the Requirement Of Course
Master in Business Administration (SESSION 2006-2008)
Submitted by
KRISHNA. R. PAWAR (Guide)
Prof. Mr. Yuvraj Lahoti & Prof. Mr. Doke Vishwakarma Institute of Management
2
3
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ACKNOWLEDGEMENT
I wish to extend my gratitude to all those who have helped me in
the completion of this project. First and foremost I want to thank my
project guide Mr. Yuvraj Lahoti and Doke sir for their generosity,
faith and superb guidance. I am also thankful to Mr. Yash Gandhi,
Rahul sonawne for their co-operation.
I take immense pleasure in thanking Mr. Ashok for always being
so friendly and co-operative in all the work assigned to us. I wish to
thank all the staff of T. Choithram and Sons. L.L.C., especially
section boys for helping us in long hours of work.
I also extend my gratitude to all the accounts members, especially
to Mr. Kiyas Mohammad for providing us with the data required for
the compilation of our project.
I would like to extend my gratitude toward Dr. Sharad L. Joshi,
Director, Vishwakarma Institute of Management, for his technical
and moral support required for the realization of this project report.
Thanks to all.
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Table of contents
8
Findings
9
Recommendations
10 Bibliography
11 Annexure
Chapter NO 1
Title
Page no
1
Abstract
2
Introduction
3
Retail Trends in UAE
4
Company Profile
5
Objectives
6
Research Methodology
7
Analysis
6
RESEARCH IN
ABSTRACT
7
TITLE:-
“Study of Promotional Activities at Choithram LLC With special
emphasis on role of promotion in building strong store image and customer
flow”
Research Methodology:-
A) Primary Data Source:-
Questionnaire, Interviews
B) Secondary Data Source:-
Books, Journals etc.
.
Research Design:-
The stores visit will be carried out for collection of data. As I
have noted above, the data will pertain to all factors of promotions. The
survey will be on Interview basis with employees of Choithram
Supermarket. Observations will be recorded for said research in store.
Questionnaire is designed to obtain information about
Supermarket. The information collected through stores visit will be assumed
accurate, for analysis.
8
OBJECTIVES:-
1. To know the Retail Trends and its implementation in Supermarket.
2. To study role of promotional activities and advertising in a
supermarket.
3. To study the various promotional channels used in a super market.
4. To study the effects of promotions and advertising on sales.
5. To study how customer loyalty can be built through promotional
Consumer- (during the promotion) Reducing the net transaction price to the consumer (or increasing the net value, in the case of gifts); deflecting attention from a high price. Trade – Reducing the off invoice trade price
Direct cost of promotional incentives, other than off invoice. Indirect cost of “special” manufacturing and packaging. Cost of trade promotions not passed on to consumer. Indirect cost of supply chain turbulence.
Medium term{4-16weeks}
Consumer – Decelerating next purchase (stockpiling); encouraging repeat purchase; encouraging more frequent usage; denying volume to competitors Trade – Increasing traffic in channel (bargain hunters).
Consumer – Encouraging bargain hunting; discouraging purchase off-promotion. Trade – Pressure for more promotions.
Consumer purchasing behavior
By far the most common management expectation about promotions is
that they drive sales volume. There is an extensive literature on
consumer purchasing behavior that is useful to review prior to
addressing the more specific question of consumer buying responses to
promotions.
Most consumers have a repertoire of two or three brands in a category
which they habitually buy over time (Ehrenberg 1988) (Brown 1953)
and (Cunningham 1956). The groups of brands purchased are called the
brand repertoire.
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Multi brand buying may come about because:
� Buyers seek variety, for example in beverages and
confectionary
� A preferred brand may not be available
� A consumer promotion may temporarily attract
purchasers
An understanding of the factors that affect habitual purchase is
important if the right marketing decisions are to be made. Is a
consumer’s brand repertoire the result of variety seeking, bargain
seeking (and promotional response), or inability to buy the preferred
brand frequently? Answers to these questions relate to marketing mix
decisions.
There is no necessity for habitual purchasing to involve strong feelings
or cognitive processes. It is quite possible for people to buy regularly a
brand they dislike (through economic necessity). People make some
brands, such as Guinness, a small part of their portfolio yet continue to
buy this brand for a long period of time. People may like a brand but
not purchase it through lack of need or opportunity (for example
Porsche).
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Purchase habits also apply to brands that we routinely do not buy. Most
of us will admit to avoiding certain brands that we dislike, but brand
avoidance also applies to brands that are unfamiliar to us as individuals.
� Price-offs. A manufacturer’s price-off is printed directly on the
product packaging and becomes an integral part of the product’s
appearance to consumers. Special labels might also be used. The
advantage of price-offs is that they are easy for the consumer to use,
and they put the product in direct competition with other products on
display. The disadvantage is that everyone who buys the product
takes advantage of the price reduction, including those who
routinely buy the product at the regular price. Trial is therefore
restricted mostly to bargain-hunters, who are inherently less likely to
stay loyal following the offer.
� Bonus packs. Another way the consumer can be offered a special
price is to increase the amount of the product offered for the same
price. Bonus packs can also take the form of BOGOF (buy one get
one free), buy two get one free, and many variants on this theme.
The advantages of bonus packs are that they can increase the amount
of display space for the product, and increase consumption rates,
due to the pressure on storage space causing the consumer to use the
product faster. The disadvantages are that they may well not be
profitable – the cost of the extra free product may be more than the
value of the extra sales.
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� Gifts. There are many types of gifts, including. The advantages of
gifts are that they can enhance the product’s value, if they relate to
its brand values, or link with sponsorship themes (such as Formula
One). The disadvantages are that trade customers may resist storing
and handling the gift items, and also theft and pilferage can be
serious problems.
� Coupons. Coupons are by far the commonest promotional method
in the USA, but their popularity is lower elsewhere. There are two
kinds of coupons – manufacturer coupons, where everything is paid
by the manufacturer, and trade coupons, which are paid partially
by the retailer. The advantage may be that only a percentage is
redeemed, but the disadvantage is that they create clutter and work
for those who process them.
� Continuity plans. Continuity plans require the saving of some
item relating to the purchase, such as stamps, that may be used for
prizes or reduced costs. The advantage of using them is that they
reward heavy purchasers for being heavy purchasers. The
disadvantage may be that they do not reward true loyalty, merely
heavy purchase.
� Loyalty cards are in many ways like electronic continuity plans.
They have the additional advantage of creating a database, and the
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possibility of tracking heavy purchasers. Against this must be
factored the disadvantage of substantial IT cost.
� Refund offers involve the purchaser in sending a proof-of-
purchase in return for a reward. They have the advantage of
rewarding loyal purchasers, but disadvantages include a poor record
in generating trial purchase.
� Contests and sweepstakes differ in the eligibility rules:
contests require that consumers purchasing the product enter, while
sweepstakes do not. Some contests require skill, whereas
sweepstakes do not. The advantages are that they create interest
through press and word-of-mouth, plus they can be a source of
customer data. The disadvantages are the clutter and effort of
organizing.
� Sampling provides the consumer a free sample of the product and
is a very effective means of introducing a new product or
demonstrating an improvement of an existing product. Typically a
small trial size is offered. Although sampling has the advantage of
starting trial usage, its Disadvantages are considerable, especially in
terms of distribution.
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The promotional planning process
Offers
The promotion must offer something valuable to its recipient
Channel exposures
The promotion must be seen, read or heard in a channel
Processing the offer
The audience must pay attention to the offer and absorb its meaning
Psychological response
The offer must also cause a mental response leads to action
Behavioral response
The offer must cause more people to buy more of our product, more often.
Economic response
Economic response Promotions are only worthwhile if they have an economic
payback
34
Immediate value promotions,
price-offs and bonus packs, remove the problem of “high price” and may be
perceived as “good value”.
The most usual way of testing alternative offers is to survey a range of offers, with
several other closely competing brands – all at their normal prices – then
progressively introduce better and better offers on our brand until an acceptable
percentage of the survey sample indicated that they would buy our brand.
� Future value promotions,
� Samples and trial offers, function by reducing the perceived
risk of trying our brand. The major method of testing samples
is by placement of samples at several hundred prospective
locations, and counting the numbers of trials.
� Gift promotions
Are tested in various different ways. Premiums need to be tested
first for the appeal of the gift itself – displaying them side-by-side,
including gifts that have previously been used with known results.
Coupons are tested in much the same way as immediate value
Promotions.
� Chance promotions
� Prizes should be tested and compared for their appeal.
Contests versus sweepstakes should be compared, by
discussing simulated promotion situations with potential
entrants.
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Ten hard questions to ask or be asked
1. Do we believe that our promotions have anything other than a short-term
impact?
2. If so, what is the evidence for this?
3. How well do we integrate promotional activity with advertising and display?
4. What percentage of our trade promotional expenditure is passed on to
consumers?
5. Do our promotions devalue the brand by encouraging “bargain hunting”?
6. Can we enhance the loyalty tie-in of our promotions?
7. What analysis supports our choice of promotional offers?
8. Do we understand and take into account the direct and indirect costs of our
promotional offers?
9. What process do we use for planning our promotional campaigns?
10. What do we do to research, test and track our promotional campaigns? Is what
we do adequate?
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Conclusions
� Many promotions do not cover their costs.
� Promotions often produce an immediate and measurable “spike” in
sales volumes, but a positive effect on sales after the promotion has
ended is rare and generally small.
� Trial purchases from first-time buyers are a minority. Most
consumers who buy on promotion have previous experience of the
product. They switch temporarily away from other brands in their
repertoire (thus temporarily increasing the purchase frequency of the
promoted brand, and decreasing the purchase frequency for the rest
of the category).
� Frequent promotion by competitors reduces the purchase frequency
(and share) for non-promoted brands. Where a significant
percentage of category sales is sold on promotion, brands that do not
promote will be “locked out” during promotional periods, and
purchase frequency will fall.
� Sales promotions should not happen on an ad hoc basis, but be
implemented via a campaign plan, with every campaign having a
specified objective which reflects the overall marketing strategy.
� Sales promotions carried out by and through trade customers require
a different type of campaign management and offer from those
targeted directly at end consumers.
� Rigorous testing and tracking of responses to individual promotions
reduces risk, and enables campaigns to be rolled out, withdrawn, or
fine-tuned to reflect market behavior
37
ANALYSIS
38
The retail purchase decision by
customers at Choithram.
Purchase type
% of total retail
sales volume
Planned purchases (Pre-store Decision) 67%
Impulse purchases (In stores Decision) 33%
No intention of buying the particular product
but did so
14%
Intended to buy a product but no specific
brand in mind
10%
Added an extra title to core product purchase
on impulse
5.5%
Brand switched from intended purchase In-
store
3.5%
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The results show that two thirds of the volume of product sales are planned purchases - ie. The decision to make that purchase was determined prior to the consumer entering the shop. However, one third of the volume of product sales (and growing) is made as the result of an in-store decision.
WHY CUSTOMERS OPTED TO BUY
Reason for purchase % of Total Respondents
Part of regular purchasing pattern
41%
Cover browse related attractions
33%
Impulse
11%
Price
9%
Added values
4%
Recommended by friends
1%
Stimulated by an advertisement
1%
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Customer’s feedback
PART OF A REGULAR PURCHASING PATTERN
"I always buy it" is typical of this category. The consumer may still be
buying on impulse on this particular occasion, but they are buying a
title which they are familiar with and have often bought before:
"reminder buying".
COVER / BROWSE-RELATED
A whole range of statements fall under this category: "It caught my
eye", "It looked interesting", "The front cover attracted me", "It had an
article of interest". All the statements are based on the fact that
something specific caught the consumer's interest, either from the cover
itself or from a quick flick through the pages. With one third of buyers
stating that this prompted their purchase, this clearly underlines the
importance of the front cover layout and design.
IMPULSE
"I just wanted to try it". "I wanted a change".
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PRICE
"It's good value". "Its cheaper than the other like it".
ADDED VALUE
The presence of a cover mounts or supplement. This is a classic area,
like price, where consumers often under claim under research
conditions as they do not like to be seen to be influenced by give-
aways. This reason is much more important, predictably, among those
buyers who had made their decision to buy in-store (44% higher than
among those who had decided their purchase before they entered the
shop). Also, cover mounting is very high profile within a few, key
magazine sectors.
STIMULATED BY AN ADVERTISEMENT
The conscious recall of an advertisement for a specific title accounts for
only 1% of purchasing occasions. This is not to dismiss the value of
above-the-line advertising, but is mainly a reflection of the way in
which advertising works which is often not "top-of-mind".
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Why customers did not opt to buy
Identified two distinct groups:
(1) Those who dip in and out of the shop without looking at the
magazine displays.
These people are simply not in "magazine buying mode". They are in a
hurry.
They are in the shop to buy something else. They simply do not want a
Magazine at the moment. There is clearly very little that anyone can do
to alter the consumer's behavior on such occasions.
(2) Those who come to the magazine displays to browse, but who do
not buy.
Three reasons emerged most commonly for non-purchasing:
43
Reasons for browsing, but not buying % of Total
Respondents
I only intended to look 24%
I couldn’t find the one I wanted 21 %
Just wanted to see what’s around 20 %
Clearly, browsing the magazine racks is a pleasurable activity in its own right and many consumers do it with no intention of buying a magazine. Yet just over one fifth of readers who do not buy fail to make a purchase because the magazine they want is not on display.
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Customer Loyalty
Customer loyalty can be classified into brand loyalty,
vendor loyalty, service loyalty, and store loyalty.
With lack of consistency, marketing researchers have defined customer
loyalty. We can classify these definitions into a behavioral approach, an
attitudinal approach, and a combined approach.
Behavioral Definition.
Early studies on loyalty have been done on individual brand which can
be measured from panel data and brand loyalty largely was understood
as behavioral concept. They focused on observing and measuring the
continuation of purchases in the past (Brown 1952-1953). Kuehn
(1962) used stochastic approach to find behavior of brand loyalty of
customers. He saw brand loyalty a function of purchasing history of
customers. Lip stein (1959) thought brand loyalty as a function of
probability of purchase of the same product or a function of time for a
specific brand. Jacoby and Chestnut (1978) summarized 53 early
definitions of loyalty and made a conceptual definition. According to
their definition, loyalty is a biased behavioral reaction of consumers in
the choice of one among many alternatives in a period of time and it
can be represented as a function of decision-making process. Jeuland
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(1979) also used stochastic model to define brand loyalty. In his study,
it was defined as long-term probability of choice or purchase ratio of a
specific brand among total product categories and such a behavior was
named as inertia.
In summary, behavioral definition of store loyalty is a tendency of
consumers to purchase repetitively in a period of time and it can be
operationally defined and measured as purchase ratio as repetitive
purchase behavior (Raj 1982), purchase frequency. By using these
definitions, it can be objectively measured and has an advantage of
distinguishing store loyalty for various stores. But it has limitations that
researchers can easily use subjective judgments and that it is hard to
explain how the store loyalty is formed and why it changes.
Attitudinal Definition.
Attitude is a learned tendency of preference to consistently show favor
or disfavor and affirmative or negative reactions. Consumers have a
favorable attitude to a specified brand but they don’t always purchase
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that brand since there are various situations. But attitude influences
behavior a lot. Thus the concept of loyalty is viewed not separated from
the attitude that represents individual psychological tendency in
repetitive purchases. Moreover, the attitude of consumers relatively
evaluating a specified brand is important since repetitive purchases
mean that consumers choose it among various alternatives. n summary,
store loyalty in an attitudinal sense can be understood as store
preference or psychological commitment and hence it can be defined as
favorable attitude to the specified store and operationally it can be
measured future probability of purchase(Oh 1995). By this definition,
we can figure out the process of psychological formation of it but it is
uncertain that favorable attitude to the specified store is converted to
real action o buy. The marketers can see the store loyalty in attitudinal
approach have little practical value.
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Combined Definition of both Behavioral and Attitudinal
Approach.
Dick and Basu(1994) combined both behavioral and attitudinal
approaches and then defined store loyalty as favorable attitude and
repetitive purchase of consumers so that the concept can be
comprehensively understood and they argue that their concept was
desirable since both components could be measured. Either favorable
attitude or repetitive purchase alone cannot be necessary and sufficient
conditions of index of store loyalty and the both must be considered
together in the light of consumers. Following this view of store loyalty,
we define store loyalty as favorable attitude of consumers and tendency
to purchase repetitively in a period of time.
Store Image
Definition of Store Image.
The concept of store image was used by Martineau (1958) for the first
time. He defined it as “a store defined in customers’ mind partly based
on functional attributes and partly based on psychological attributes.”
He claimed that store image includes its characteristic attributes and it
makes customers feel the store different from others. Functional
attributes are assortment of commodities, layout, location, price-value
relation, and service that consumers can objectively compare with other
stores. Psychological attributes are attractiveness and luxuriousness that
represent special attributes of that store.
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FINDINGS
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Store Image Components at Choithram
� Dimension Component Content of component
� Merchandise Quality Excellence of quality relative to the other
stores Excellence of quality relative to price
� Overall excellence of quality
Price Low price relative to the other stores
� Reasonable price relative to product
Overall lowness of product prices
� Assortment Availability of new (fashionable) products
� Variety of brands
� Variety of product designs and colors
Variety of kinds of product
Overall availability of various brands and kinds of product to
choose
� Promotion Frequency of sales
� Scope of sale of product
Providence of new product information
� Invitation of cultural events and special sales
Sending cards for birthday or anniversary
Frequency of gift events
� Placement of right catalogues
� Variety of gifts
� Benefits of store credit card (long credit and mileage)
50
Advertisement Information providence of advertisement
� Usefulness of shopping plan of advertisement
� Appeal of advertisement
� Confidence of advertisement
� Convenience Easy movement within the store
� of shopping Easy search of wanted goods
� Possibility of blanket purchase
� Overall convenience of shopping
� Convenience Easy entrance and exit to parking lot
of location Connection to public transportation (bus and subway)
� Proximity to home or working place
Shopping bus schedule
� Availability of free parking
Store facility Easy use of physical facilities of the store
(Escalator, elevator, baby cart)
Well-assorted rest area (snack corner, toilet, coffee shop, chairs)
� Clean in and out facilities
� Overall modern facilities
� Store service Salesperson Kindness of salesperson
� service Assistance of salesperson on product and related
information
� Providence of new information by salesperson
� Affirmative action and solution to complaints by salesperson
� Excellent customer service
� Credit service Variety of credit cards accepted
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� Easy return and exchange of goods
� Possibility of money return in the case of impossibility of return
or exchange
� Store Happiness of shopping atmosphere
� atmosphere Relaxation of shopping atmosphere
� Excellent presentation and decoration of products
Luxurious atmosphere of lighting, color, and facilities
� Store brand High class image
� High brand name
� Dimension Component Content of component
52
DIFFERENT PROMOTIONAL
ACTIVITIES AT CHOITHRAM
53
SNAPPY TOM PROMOTION AT CHOITHRAM
54
This promotion was a real eyeball catcher, appreciated all over the
Choithram stores, and a big success too.
All the European customers were very much impressed by this
promotion.
The most important factor behind these promotions were the fact that
these promotions were common in all choithram stores, and a
competition is held amongst all choithram stores, the best visual
promotion gets an award.
It is competitions like these which keeps the employees nimble on their
feet, and thrives them to work with a will.
All the visual promotions are very much responsible for enticing a
customer, to purchase a commodity.
There is a finding that says, a perfume bottle is purchased by the
customer because of its cover, than its fragrance.
It is therefore a result of visual promotions in stores, which lead to
unplanned purchases One more important thing to be noticed in the
promotional picture is that, the other products like Arial, and a few
shampoos which are supposed to be the upcoming promotions for the
next month, are also kept so that the customer should get a glimpse of
things to come
55
Discount of whopping 50% at wonder land theme and Water Park.
This was another special promotion at all choithram super markets,
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If a customer spends AED 250 at any choithram stores in a single
invoice then he gets a whopping 50% discount on splash land in
wonderland a water park
It is promotions like these which magnetize the customer towards the
stores, he is always on a look out for the upcoming, and ongoing
promotions.
Promotions like these helps to draw the customer into the stores, it is
places like water parks and amusement parks, where one spends the
best quality time, along with the family, and by offering promotions
like these the super market actually has a part to play in the customer’s
jolly time.
No wonder promotions like these bring happiness to the customers.
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Gift voucher This promotion involved an attractive gift voucher, which was for sale,
this gift voucher meant that a customer can gift this voucher to any
person he knows, gift voucher actually enables the customer to
purchase any commodity from any choithram stores as per the amount
mentioned on IT which is available in the multiples of 50 AED .
\
It is promotions like these, which help to draw new customers into the
super market, it helps in creating commendable stores image, and build
customer loyalty.
Purchases through such vouchers bring immense pleasure to the
customer as it gives him the feeling of free shopping.
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61
A tie up with ABN AMRO CREDIT CARD
Shop Save and Win, with ABN AMRO credit cards
Great discounts, special offers, and a jeep wrangler just a swipe away.
By shopping with an ABN AMRO credit card for over 100 AED or
more the customer gets the chance to win a brand new wrangler, also
great discounts and offers every time a customer shops at the
participating outlet from 15 June to 15 aug .
62
BN AMRO OFFERS AT CHOITHRAM Spend AED 250 or more and get 4.5 kg
Unifrutti Fruits [1.5 kg Red apples 1.5 kg S .AFRICAN Clementine, 1.5
kg Orange Navels] absolutely free
63
64
A Mercedes Benz, the biggest ever promotion one would get to see in a
super market
Shop at Choithram for 50 DHS AND WIN A MERCEDES c 180
Model Car with a sms
Offer starts on 15 Nov 2006, and the Draw date 15 Dec 2006
Draw venue
Choithram, Safa park outlet at 5 pm
Terms and conditions
On a single purchase oh Dh 50/- the customer will get a coupon to
qualify to SMS and win the prizes.
This coupon is valid for entry for the promotion only.
Each SMS costs 5 Dhs
65
66
A unique promotion of garments through pamphlets
This promotion was done at the Dubai-Karama, Ajman Ras AL Khaima
and Fujairah outlets.
This was a weekly promotions, the promotion was all about finding the
best deals when it comes to garments wide range like, Boys T shirts,
shorts,
Men’s twill shirt, right from kids wears to adults.
It was advertised as Factory Zone outlet, which generally catches the
eyes of the Asian customer.
Garments were for sale at the cheapest rate one could ever get with a
commendable quality.
Free home delivery was also offered on minimum purchase of 25 dhs,
within the radius of 2 kms. The offer was valid till the stalk lasted
67
68
This was another promotion through pamphlets which was for a month
This pamphlet gave a brief summary of the fresh fruits and produce
available at choithram, the picture’s displayed, and the price mentioned
below, gave the customer a clear idea of things he is looking for at a
desired price
This promotion also had consumable and consumable items,
Non consumable items involved electrical appliances, cosmetics, house
holds, garments, etc.
Different brands like coca cola, London dairy Dairy milk, kellogs were
also advertised in stores customer communication techniques and
signages are very essential to keep a customer unruffled, and
comfortable in a store, people nowadays are calorie conscious and
hence I found this signage catchy.
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Items whose expiry date is near are supposed to be cleared
immediately, hence special promotions are done to cope up for the task,
a special display of reduced to clear items is done. Prices of the items
which are supposed to be stock cleared are reduced by considerable
margin, i.e. more than 50%at times
Special promotions like price highlighting are practiced,
At special occasions like Ramadan shiny cloths and dates are on
display for festive promotions.
Radio hip off music is used to keep the buying tempo of the customer
going, eg: jazz music influences customer for unplanned purchases.
Practices of visual merchandising, knowledge of awareness, at the point
of sales danglers are practiced as tools for promotion
Suggestions
The core elements of retailing –
Your Consumers
Understanding the needs, emotions and desires of the final user of your
product or service helps you to plan your interactions and your business
relationship with your customer. Read on to find out how consumers
make their buying decisions and how you can best serve their needs.
72
Your Products
By understanding your consumers you can better determine how your
products and services must evolve to meet the changing needs of the
marketplace. It is also essential to know how to promote and display
your goods or services to catch the attention of your target market.
Your Premises
To delight your customers and maximize your sales it is vital that you
create the appropriate image and ambience for your true demographic
and generational market. The external and internal ‘feel’ of your
premises must be comfortable and negotiable for your target market.
Your Business
To succeed today business owners and managers must be innovative,
creative and think outside of the box, both in the way your operate
your business, promote yourself, display and merchandise your
products and services, and care for your customers.
The times they are-a-changing, and that applies to retailing too!
Competition today is fierce, margins are growing slimmer and
customer’s lifestyles and buying habits are changing. It is no longer
73
enough to keep up with the competition, today you must outpace your
competition and think FOR your customers to continue to be a
profitable and financially healthy organization.
.
SWOT ANALYSIS
STRENGTH
� Limited competition.
� Good reputation of the company (T. Choithram & Sons.)
� Quality of service.
� Highly cooperative and efficient staff & crew members.
� Exclusive products
� Use of modern technology like credit card billing & loyalty
program .
� Wide range of products to suit all customer segments.
� Maximum number of branches (Approx.27)
74
WEAKNESS
� Target customer base very small.
� No presence in semi urban sector.
� Promotional campaigns are nearly absent.
� Less advertising efforts.
� Some times products are out of stock.
� Promotions are not up to the mark
� Lack Mordern Visual merchandising practises
OPPORTUNITIES
� Customer education will improve the customer base.
� Festive promotions will drive more customers.
� By making some good promotional efforts TCS can gain more number of customers who will be loyal.
� No of competitor’s is increasing very fast, especially In Dubai.
� Promotions can bring spike in the sales.
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THREATS
� Competition with big giants like Lulu, Spinneys, Al Madina Super market Etc.
� Challenges posed by other retailers in the market.
� Customer may shift to other supermarket.
� Lower customer base may hinder prompt service.
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BIBLIOGRAPHY
77
Bibliography
� TCS Brochures & Flyers.
Web Search Engine
78
ANNEXURE
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Questionnaire
1. Which has been your best promotion, regarding any commodity, in the
past few years? Could you explain it in detail?
2. What are the in- stores customer communication techniques you use.
(Signs - product information – graphics –sound – textures)
3. How do you blend ambient conditions –temperature- noise - music-
odor for promotional activities
4. How do you influence impulse buying, by promotional activities?
5 What activities do you adopt to attract customers? (Decorations-