Sales Promotion Strategy Fmcg for Print

8/12/2019 Sales Promotion Strategy Fmcg for Print

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A

GRAND PROJECT REPORT

ON

“ROLE OF SALES PROMOTION ON FMCG”

A grand Project report submitted in Partial Fulfillment of award of MBA Degree

PROJECT GUIDE:PROF. SHARIF MEMON

PROF. BHARGAV MODI

SUBMITTED BY:VISHAL PATEL (08077)

JITENDRA RAJAI (08080)

SUBMITTED TO:

N.R.INSTITUTE OF BUSINESS MANAGEMENT

AHMEDABAD



Rol o! "#l" $%o&o'o" FMCG "*'o%

This is to certify that M%. V"+#l P#'l and M%. J',%# R#-# the students of MB

!nd year of "#R# Institute of Business Mana$e%ent& h%eda'ad ha(e co%)*eted their

Grand Pro+ect “Rol o! "#l" $%o&o'o" FMCG” in the year !,,-.!,/, in )artia*

fu*fi**%ent of Gu+arat Uni(ersity re0uire%ents for the a1ard of the de$ree of Master of

Business d%inistration#

D%*'o% G%#, P%o-*' G,

Prof# Dr# 2itesh Ru)are* Prof Sharif Me%on

Prof Bhar$a( Modi

D#'/

G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,

!




PREFACE

In this a$e of $*o'a*i7ation hy)er co%)etition has 'eco%e a re$u*ar feature#

Today the %ar5ets are no *ess then 'att*e$rounds and one has to stri(e (ery hard for

sur(i(a* and $ro1th#

Due to (ery ra)id industria*i7ation a** o(er the 1or*d the de%and for the

%ana$eria* )ersonne* and the ad%inistrati(e )ersonne* has increased# The )erfect study

of Mana$e%ent in(o*(es 'oth the theoretica* as 1e** as )ractica* as)ects# To sur(i(e in

this hi$h*y co%)etiti(e %ar5et 8Practica* 9no1*ed$e is as re*e(ant as the Theoretica*#

The si$nificance of MB De$ree is that the Theoretica* as)ects& 1hich a student

*earns throu$hout the year in the c*ass sessions& can 'e )ractica**y a))*ied throu$hdifferent )ro+ects& 1hich one underta5es# 9ee)in$ in tune 1ith this doctrine& 1e ha(e

tried to a))*y theoretica* as)ects throu$h out the )ro+ect& 1hich 1e *earned under the

course of %ana$e%ent#

In this )ro+ect %ore e%)hasi7e $i(en to the (arious too*s of sa*es )ro%otion and

its i%)act on consu%ers 'uyin$ decisions# ctua**y in recent trend to so%e e;tent this

techni0ue a*so 'eco%e (icti% of c*utter& e(en thou$h it can 'e e*i%inated 'y $eneratin$

inno(ati(e and %ore attracti(e too*s to *ure the custo%ers#

"o1 a day %ost of the <MCG co%)anies considerin$ sa*es )ro%otion as an

i%)ortant )art of their %ar5etin$ strate$y# <ro% the ana*ysis of sur(ey it 'eco%es c*ear

that consu%ers do res)onse to the sa*es )ro%otion ca%)ai$n& 'ut there are custo%ers

1ho stron$*y )refer to stic5 to 'rand na%e#

G3S "RIBM Jitendra Ra+ai

Gu+arat Uni(ersity =isha* Pate*

h%eda'ad


6




#

ACNO1LEDGEMENT

E(ery study re0uires a $uidance of so%eone 1ho is 1or5in$ in that fie*d#

<irst*y 1e 1ou*d *i5e to than5 Director Sir Dr# D% H'"+ R$#%l for )ro(idin$

an o))ortunity of )re)arin$ a Grand Pro+ect Re)ort and a**o1in$ us to use the

resources of the institution durin$ this )ro+ect#

>e are e;tre%e*y than5fu* to our Pro+ect Guide& P%o! S+#%! M&o #,

P%o! B+#%2#3 Mo, of "RIBM for their )recious $uidance re$ardin$ the

)re)aration of the Pro+ect Re)ort# Their $uidance has )ro(ed to 'e usefu* and

1ithout the%& the )re)aration of this re)ort %i$ht not ha(e 'een )ossi'*e#

>e are a*so than5fu* to the other facu*ty %e%'ers of "RIBM for

e;tendin$ their (a*ua'*e su))ort for this )ro+ect#

>e a*so e;tend our sincere than5s to the Res)ondents& 1ho he*)ed us

durin$ the course of our )ro+ect and for their $racious attitude#

>e 1ou*d *i5e to ta5e this o))ortunity to e;tend our 1ar% thou$hts to

those 1ho he*)ed %e in %a5in$ this )ro+ect a 1onderfu* e;)erience#

3ast 'ut not the *east? 1e 1ou*d a*so *i5e to than5 our fa%i*y for their

su))ort and encoura$e%ent#


@




E4*'3 S&&#%5

s a )art of our study curricu*u% it is necessary to conduct a $rand )ro+ect# It

)ro(ides us an o))ortunity to understand the )articu*ar to)ic in de)th and 1hich *eads to

throu$h to that to)ic# My to)ic for the $rand )ro+ect is tit*ed as 8Study of consu%er

oriented sa*es )ro%otion in <MCG sector in 1hich e%)hasis $i(en to the effect of sa*es

)ro%otion on 'uyin$ ha'its of consu%ers#

To start 1ith 1e 1i** $i(e 'rief infor%ation re$ardin$ <MCG sector then %o(in$

to the %ain to)ic 1e 1i** e;)*ain 1hat is to)ic is a** a'out# Pro%otion is one of the

)i**ars of %ar5etin$ %i; and sa%e 1ay sa*es )ro%otion is a*so one of the e*e%ents of

)ro%otion#

>ith res)ect to consu%er oriented sa*es )ro%otion there are certain theories

narrated as o)erant conditionin$ and )ro+ecti(e theory# Based on secondary source

certain theoretica* as)ects are a*so inc*uded as a )art of study#

Then after concentration is $i(en to the )ri%ary research# It inc*udes the ana*ysis

and resu*ts of sur(ey 1hich 1as focuses on consu%erAs 'eha(ior to1ards sa*es

)ro%otion ca%)ai$n# The sur(ey 1as conducted 1ith the he*) of structured

0uestionnaire#

t *ast conc*usion of re)ort& findin$s and su$$estions 1as $i(en 'ased on study

of secondary source as 1e** as )ri%ary research#





INDE6

S%.

No.

TOPICS P#2

No.

. R"#%*+ M'+o,olo25 o! '+ "',5

. I'%o,*'o -

9. I'%o,*'o 'o '+ 'o$* /,

:. S#l" $%o&o'o "'%#'2" !@

;. S1OT A#l5"" !

<. D#'# A#l5"" o! '+ "%35 6,

7. F,2" o! '+ %$o%' /

8. R*o&&,#'o" 6

=. L&'#'o"

0. E&%22 T%," . Co*l"o

. B>lo2%#$+5 -

9. A4%/ ?"'o#%





RESEARCH METHODOLOG@

R"#%*+ O>-*'3"/

/# To study consu%er )references 1ith res)ect to sa*es )ro%otion in <MCG sector#

!# To e;a%ine tradeoffs& re*ati(e i%)ortance of different attri'utes 1hi*eres)ondin$ to a sa*es )ro%otion offer#

6# To study the effect of sa*es )ro%otions in <MCG sector es)# in soa)s anddeter$ent industry#

@# To study consu%er 'eha(ior in )urchase of soa)s and deter$ent

P%o,*' *#'2o%" ,% "',5

DETERGENTS: >ashin$ Po1der for C*othes

TOILETERIES Soa)s

R"#%*+ D"2

Research desi$n se*ected for this )ro+ect is Descri)ti(e#

D#'# *oll*'o M'+o,/

(#) P%&#%5 D#'# Coll*'o M'+o,/

Sur(ey %ethod 1as used for )ri%ary data co**ection#

>e used 0uestionnaire as an instru%ent for sur(ey %ethod#

Structured 0uestionnaire#

Ty)e of 0uestionnaire: O)en ended and c*osed ended#

(>) S*o,#%5 D#'# Coll*'o &'+o,/

Reference 'oo5s#

Internet#





S#&$l2 D'#l

/# Tar$et )o)u*ation: The )o)u*ation for this research study consists of the

residence of h%eda'ad#

!# Sa%)*in$ unit: In this study the sa%)*in$ unit is indi(idua* consu%er#

6# Sa%)*e si7e: 00 consu%ers 00 retai*ers#

@# Sa%)*in$ %ethod: The sa%)*e is se*ected 'y usin$ con(enience.

sa%)*in$ %ethod#


-




I'%o,*'o

FMCG Co*$' #, D!'o/

The ter% <MCG Ffast %o(in$ consu%er $oods& a*thou$h )o)u*ar and fre0uent*y

used does not ha(e a standard definition and is $enera**y used in India to refer to

)roducts of e(eryday use# Conce)tua**y& ho1e(er& the ter% refers to re*ati(e*y fast

%o(in$ ite%s that are used direct*y 'y the consu%er# Thus& a si$nificant $a) e;ists

'et1een the $enera* use and the conce)tua* %eanin$ of the ter% <MCG#

<urther& difficu*ties cro) u) 1hen atte%)ts to de(ise a definition for <MCG# The

)ro'*e% arises 'ecause the conce)t has a retai* orientation and distin$uishes 'et1een

consu%er )roducts on the 'asis of ho1 0uic5*y they %o(e at the retai*erAs she*(es# The

%oot 0uestion therefore& is 1hat industry turnaround thresho*d shou*d 'e for the ite% to

0ua*ify as an <MCG# Shou*d the turnaround ha))en dai*y& 1ee5*y& or %onth*yH

One of the factors on 1hich the turnaround de)ends is the )urchase cyc*e#

2o1e(er& the )urchase cyc*e for the sa%e )roduct tend to (ary across )o)u*ation

se$%ents# Many *o1.inco%e househo*ds are forced to 'uy certain )roducts %ore

fre0uent*y 'ecause of *ac5 of *i0uidity and stora$e s)ace 1hi*e re*ati(e*y hi$h.inco%e

househo*ds 'uy the sa%e )roducts %ore infre0uent*y# Si%i*ar*y& the )urchase cyc*e a*so

tends to (ary 'ecause of cu*tura* factors# Most Indians& ty)ica**y& )refer fresh food

artic*es and therefore to 'uy re*ati(e*y s%a** 0uantities %ore fre0uent*y# This is in shar)

contrast 1ith 1hat ha))ens in %ost 1estern countries& 1here the )ractice of 'uyin$ and

soc5in$ foods for re*ati(e*y *on$er )eriod is %ore )re(a*ent# Thus& shou*d the in(entory

turnaround thresho*d 'e uni(ersa*& or shou*d it a**o1 for inco%e& cu*tura* and 'eha(iora*nuancesH





C+#%#*'%"'*" o! FMCG P%o,*'"/

•

Indi(idua* ite%s are of s%a** (a*ue# But a** <MCG )roducts )ut to$ether accountfor a si$nificant )art of the consu%ers 'ud$et#

• The consu%er 5ee)s *i%ited in(entory of these )roducts and )refers to )urchase

the% fre0uent*y& as and 1hen re0uired# Many of these )roducts are )erisha'*e#

• The consu%er s)ends *itt*e ti%e on the )urchase decision# Rare*y does he4she

*oo5 for technica* s)ecifications Fin contrast to industria* $oods# Brand

*oya*ties or reco%%endations of re*ia'*e retai*er4dea*er dri(e )urchase

decisions#

• Tria* of a ne1 )roduct i#e# 'rand s1itchin$ is often induced 'y hea(y

ad(ertise%ent& reco%%endation of the retai*er or nei$h'ors4friends#

• These )roducts cater to necessities& co%forts as 1e** as *u;uries# They %eet the

de%ands of the entire cross section of )o)u*ation# Price and inco%e e*asticity

of de%and (aries across )roducts and consu%ers#


/,




I'%o,*'o 'o '+ 'o$*

I'%o,*'o/

The i%)ortance of consu%er sa*es )ro%otion in the %ar5etin$ %i; of the fast

%o(in$ consu%er $oods F<MCG cate$ory throu$hout the 1or*d has increased#

Co%)anies s)end considera'*e ti%e in )*annin$ such acti(ities# 2o1e(er& in order to

enhance the effecti(eness of these acti(ities& %anufacturers shou*d understand consu%er

and retai*er inter)retations of their )ro%otiona* acti(ities# The study here )ertains to

consu%erAs )erce)tions re$ardin$ sa*es )ro%otion# So%e )ast researches ha(e su$$ested

that )ro%otion itse*f has an effect on the )ercei(ed (a*ue of the 'rand# This is 'ecause

)ro%otions )ro(ide uti*itarian 'enefits such as %onetary sa(in$s& added (a*ue& increased

0ua*ity and con(enience as 1e** as hedonic 'enefits such as entertain%ent& e;)*oration

and se*f.e;)ression#

Broad*y s)ea5in$ %ost of the co%)anies usin$ Mar5etin$ Mi; 1hich inc*udes

Price

P*ace FChanne* of Distri'ution

Product

P%o&o'o

These are the four 'asic )i**ar of %ar5etin$ %i;# Most of the %ar5etin$ strate$ies

are 'ui*t on the 'asis of these criteria#

Pro%otion is one of the i%)ortant e*e%ents of %ar5etin$ %i;# There are so %any

e*e%ents of )ro%otion such as

d(ertisin$

Direct Mar5etin$

Pu'*ic Re*ations

S#l" P%o&o'o


//




Traditiona**y& sa*es Pro%otions ha(e 'een used 'y %ar5eter to increase sa*es in

the short ter%# 2o1e(er& in the *ast fe1 decades this co%%unication too* has e(o*(ed

and no1 is considered fro% a strate$ic )oint of (ie1# <or this reason& it is necessary to

rea*i7e ne1 studies in this area and study ho1 consu%ers e(a*uate sa*es )ro%otions#

Sa*es )ro%otions ha(e $ro1n in 'oth i%)ortance and fre0uency o(er the )ast

fe1 decades# *thou$h an accurate esti%ate for tota* sa*es )ro%otions e;)enditures does

not e;ist& 1e can 'e sure that the trend is u)#

Sa*es )ro%otion ser(es three essentia* ro*es: It infor%s& )ersuades and re%inds

)ros)ecti(e custo%ers a'out a co%)any and its )roducts# E(en the %ost usefu* )roduct

or 'rand 1i** 'e a fai*ure if no one 5no1s that it is a(ai*a'*e# s 1e 5no1& channe*s of

distri'ution ta5e %ore ti%e in creatin$ a1areness 'ecause a )roduct has to )ass throu$h

%any hands 'et1een a )roducer and consu%ers#

Therefore& a )roducer has to infor% channe* %e%'ers as 1e** as u*ti%ate

consu%ers a'out the attri'utes and a(ai*a'i*ity of his )roducts# The second )ur)ose of

)ro%otion is )ersuasion# The cut throat co%)etition a%on$ different )roducts )uts

tre%endous )ressure on their %anufacturers and they are co%)e**ed to underta5e sa*es

)ro%otion acti(ities# The third )ur)ose of )ro%otion is re%indin$ consu%ers a'out

)roducts a(ai*a'i*ity and its )otentia* to satisfy their needs#

<ro% these e*e%ents Sa*es Pro%otion is the e*e%ent 1hich is in the focus of this

)ro+ect# <urther Sa*es Pro%otion is 0uite 'road ter% it inc*udes

Co"&% O%', S#l" P%o&o'o

T%#, O%', S#l" P%o&o'o


/!





/6




Co"&% O%', S#l" P%o&o'o

Consu%er Oriented Sa*es Pro%otion is the %ain to)ic of this )ro+ect# 2ere

e%)hasi7e is $i(en to %oti(ate consu%er to increase sa*es# Consu%er Oriented Sa*es

Pro%otion inc*udes Sa%)*in$& Cou)onin$& Pre%iu%s& Contest& Refunds& Re'ates& BonusPac5As& Price.off& E(ent %ar5etin$ etc#

D!'o/

<or the )ur)ose of this study& fo**o1in$ definitions of sa*es )ro%otion 1ere 5e)t in

%ind#

9ot*er defines sa*es )ro%otion as: 8Sa*es )ro%otion consists of a di(erse co**ection of

incenti(e too*s& %ost*y short.ter% desi$ned to sti%u*ate 0uic5er and4or $reater )urchase

of )articu*ar )roducts4ser(ices 'y consu%ers or the trade#

Ro$er Stran$ has $i(en a %ore si%)*istic definition i#e# 8sa*es )ro%otions are short.ter%

incenti(es to encoura$e )urchase or sa*es of a )roduct or ser(ice#

2ence& any for%s of incenti(es F)rice cut or (a*ue added nature offered for short )eriod

either to trade or consu%ers are considered as sa*es )ro%otion acti(ities#

M#%'%" "" *o"&% o%', "#l" $%o&o'o 'ool" !o% '+ !ollo2 %#"o"/

• To increase short ter% sa*es

• To induce tria*

•To reduce in(entory

• To esta'*ish a 'rand na%e

• To %a5e cross se**in$

• To co)e u) 1ith co%)etition

• To a(oid ad(ertisin$ c*utter


/@




Tool" o! Co"&% O%', S#l" P%o&o'o/

There are so %any too*s or techni0ue a(ai*a'*e to the %ar5eters for achie(in$ o'+ecti(e

of sa*es )ro%otion# These too*s shou*d 'e used considerin$ a** other factors affectin$

such as cost& ti%e& co%)etitors& a(ai*a'i*ity of $oods etc# These too*s are as under

/# Cou)ons

!# Price.Off

6# <ree'ies

@# Scratch Cards

# 3uc5y Dra1s

# Bund*in$ Offer

# E;tra Kuantity

3etAs ha(e *oo5 at each too*

. Co$o"/

Cou)on is the o*dest and %ost 1ide*y used 1ay of sa*es )ro%otion# Cou)ons

ha(e 'een used since /-# It is %ost*y used 'y )ac5a$ed $oods# It is 1orth1hi*e to use

cou)on as a )ro%otion too* 'ecause data sho1s that %ar5et for )ac5a$ed $oods

increased fro% / 'i**ion in /- to 6/, 'i**ion in /@# To 'oost u) the sa*es not on*y

%anufacturer 'ut retai*ers )ersona**y can a*so used# cou)on *eads to )rice reductions

so as to encoura$e )rice sensiti(e custo%ers# "on users can try a )roduct 1hich %ay*eads to re$u*ar sa*es#

. P%*o!!/


/




)rice.off is si%)*y a reduction in the )rice of the )roduct to increase sa*es and

is (ery often used 1hen introduction a ne1 )roduct# reduction in )rice a*1ays

increases sa*es 'ut the use of this techni0ue shou*d 'e carefu**y considered in the current

%ar5et situation#

Price.off is the %ost )referred sa*es )ro%otion techni0ue 'ecause consu%ers

res)onse (ery )ositi(e*y to this sche%e# "ot on*y that 'ut it a*so cause *ar$e increase in

sa*es (o*u%e# Price.off reductions are ty)ica**y offered ti$ht on the )ac5a$e throu$h

s)ecia**y %ar5ed )rice )ac5s# E#$# 9rac5 Jac5 offers 6,L Price.off#

9. F%>"

<ree'ies are a )o)u*ar for% of %odern %ar5etin$ and are so%e of the 'est thin$s

a'out the internet# The definition of free'ies is )roducts or ser(ices $i(en a1ay for free

at no cost to the consu%er# >e** thatAs the definition 1e ca%e u) 1ith# I a% a 'ar$ain

free'ie sho))er& )retty %uch $oin$ for any free )roduct and infor%in$ e(eryone a'out

it#

t different ti%es& 'i$ and s%a** co%)anies often $i(e a1ay )ri7es and %oney

1hich is too $ood to 'e true# Often itAs in the )ursuit of %ore custo%ers or a *ar$er fan 'ase and it often 1or5s#

:. S*%#'*+ C#%,"

scratch card Fa*so ca**ed a scratch off& scratch tic5et& scratcher& scratchie&

scratch.it& scratch $a%e& scratch.and.1in or instant $a%e is a s%a** to5en& usua**y %ade

of card'oard& 1here one or %ore areas contain concea*ed infor%ation: they are co(ered

'y a su'stance that cannot 'e seen throu$h& 'ut can 'e scratched off#

;. B,l2 O!!%"


/




Product 'und*in$ is a %ar5etin$ strate$y that in(o*(es offerin$ se(era* )roducts

for sa*e as one co%'ined )roduct# This strate$y is (ery co%%on in the soft1are 'usiness

Ffor e;a%)*e: 'und*e a 1ord )rocessor & a s)readsheet& and a data'ase into a sin$*e office

suite& in the ca'*e te*e(ision industry Ffor e;a%)*e& 'asic ca'*e in the United States

$enera**y offers %any channe*s at one )rice& and in the fast food industry in 1hich

%u*ti)*e ite%s are co%'ined into a co%)*ete %ea*# 'und*e of )roducts is so%eti%es

referred to as a )ac5a$e dea* or a co%)i*ation or an antho*o$y#

F#*'o%" I!l*2 Co"&% O%', "#l" $%o&o'o/

Main*y four factors shou*d 'e ta5en into account 1hi*e deter%inin$ the sa*es

)ro%otion )ro$ra%#

Tar$et %ar5et

"ature of )roduct

Sta$e of )roduct *ife cyc*e

Bud$et a(ai*a'*e for )ro%otion

. T#%2' M#%'/

>hi*e doin$ sa*es )ro%otion& %ar5eter %ust 5no1 1ho their tar$et %ar5et is?

other1ise there is no use of a** effort 'ecause it *eads to no 1here# tar$et %ar5et can

'e in any of the sta$es of 'uyin$ hierarchy i#e# a1areness& 5no1*ed$e& *i5in$&

)references& con(iction and )urchase# Each sta$e defines a )ossi'*e $oa* of )ro%otion#

. N#'% o! '+ $%o,*'/

There are (arious )roduct attri'utes 1hich inf*uence sa*es )ro%otiona* strate$y#

>hen the unit )rice is *o1 the %anufacturer as 1e** as the custo%er has *o1 ris5 'ut he

can $et the 'enefit of %ass %ar5etin$# Therefore& %ass %ar5etin$ re0uires %ass sa*es


/

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Word_processor

http://en.wikipedia.org/wiki/Spreadsheet

http://en.wikipedia.org/wiki/Database


http://en.wikipedia.org/wiki/Office_suite


http://en.wikipedia.org/wiki/Cable_television

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Fast_food

http://en.wikipedia.org/wiki/Value_meal


http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Software

http://en.wikipedia.org/wiki/Word_processor

http://en.wikipedia.org/wiki/Spreadsheet




http://en.wikipedia.org/wiki/Cable_television

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Fast_food





)ro%otion sche%es# Sa*es )ro%otion sche%e differ for )roducts *i5e its dura'i*ity&

)erisha'*e $oods etc#

9. S'#2 o! $%o,*' L! C5*l/

Sa*es )ro%otion strate$ies are inf*uenced 'y the *ife cyc*e of a )roduct# >hen a

ne1 )roduct introduced& )ros)ecti(e 'uyers %ust 'e infor%ed a'out its e;istence and its

'enefits and %idd*e%en %ust 'e con(inced to stoc5 it# 3ater& if a )roduct 'eco%es

successfu*& co%)etition intensifies and %ore e%)hasis is )*aced on sa*es )ro%otion to

increase its sa*es#

:. B,2' A3#l#>l !o% P%o&o'o/

The funds a(ai*a'*e for )ro%otion are the u*ti%ate deter%inant of the

)ro%otiona* )ro$ra%%e# 'usiness 1ith a%)*e funds can %a5e %ore effecti(e use of

sa*es )ro%otion )ro$ra%%e than a fir% 1ith *i%ited financia* resources# The 'ud$et for

sa*es )ro%otion can 'e )re)ared 'y the fo**o1in$ %ethods

Percenta$e of Sa*es

<i;ed funds a(ai*a'*e for sa*es )ro%otion

<o**o1in$ the co%)etition& and

Bud$etin$ 'y o'+ecti(e#


/-




S#l" P%o&o'o !%o& '+ Co"&%" $o' o! 3

1ll2"" 'o >5 o "#l" $%o&o'o o!!%

Si;ty )er cent of the sa%)*e did not sho1 1i**in$ness to 'uy a 'rand due to )ro%otion 1hi*e 6,L sho1ed 1i**in$ness and /,L 1ere not sure# This indicates that

1hen 6,L sho1ed 1i**in$ness and /,L consu%ers 1ho 1ere not sure& these $rou)s

%i$ht 'e *ured throu$h inno(ati(e and *ucrati(e sa*es )ro%otion offer#

A>l'5 'o ,* '%#l

<orty )er cent of the res)ondents had said that sa*es )ro%otion had the a'i*ity to

induce tria* 1hich reinforces the a'o(e inference#

Lo2'%& &$#*'

In order to understand a'i*ity of the )ro%otions to increase *on$.ter% sa*es&

res)ondents 1ere as5ed a'out continuity of )urchase of a 'rand after the 1ithdra1a* of

)ro%otion# Ei$hty )er cent of the res)ondents indicated that they 1ou*d not continue#

But !,L said they 1ou*d# Thus& it cou*d 'e inferred that )ro%otions in this cate$ory

F*o1 in(o*(e%ent )roducts %i$ht encoura$e tria* and 'rand s1itchin$ 'ut not *on$ ter%

*oya*ty#

P%!%* o! S*+&":

Price off 1as the %ost )referred ty)e of sche%e# Ma;i%u% custo%ersA ran5ed

)rice.offs as nu%'er one or t1o#

P%*3, ?#l'5:

Ma+ority of res)ondents had a )erce)tion that the 0ua*ity of the )ro%oted 'rands

re%ained the sa%e durin$ )ro%otion& 1hi*e so%e of the% fe*t that it 1as inferior than

'efore# It can 'e inferred that )ro%otions 1ere not *eadin$ to ne$ati(e 'rand 0ua*ity


/




)erce)tions# It is found that so%e custo%er stron$*y )referred to 'uy their re$u*ar 'rand

and said that sa*es )ro%otion 1ou*d not 1ea5en their *oya*ty to1ards the 'rand#

P%*$'o" %2#%,2 ,%l52 *o&$#5 &o'3#'o"

On ta))in$ )erce)tionsA re$ardin$ under*yin$ co%)any %oti(ations for sa*es

)ro%otion& 8to increase sa*es 1as ran5ed hi$hest fo**o1ed 'y 8to attract s1itchers and

8to se** e;cess stoc5s# >hi*e )ro(idin$ (a*ue to custo%ers and

8To reinforce co%)any i%a$e 1ere ran5ed *o1est# This indicates that consu%ers

'e*ie(ed that co%)anies 1ere underta5in$ such acti(ities on*y for their o1n 'enefit and

not for the 'enefit of consu%ers#

<indin$s fro% retai*er and consu%er )erce)tion studies& it is e(ident that there

1as a %atchin$ of )erce)tions re$ardin$ nature of sche%e F)rice offs as %ost )referred

ty)e of sche%e %entioned 'y consu%ers and retai*ersA )erce)tions a'out consu%er

)references# Since retai*ers o'ser(e consu%ers in store 'eha(ior 1ere fre0uent*y and

direct*y& their )erce)tions re$ardin$ )ro(idin$ consu%er 'eha(ior are *i5e*y to 'e

accurate# Such in)uts fro% the retai*ers 1ou*d 'e usefu* to co%)anies#

The retai*ers had the )erce)tion that those sche%es 1hich 1ere announced throu$h %ass

%edia had 'etter res)onse# This 1as reinforced 'y the consu%er sur(ey 1hich sho1ed

that reca** in case of hea(i*y )ro%oted sche%es on T= 1as found to 'e (ery hi$h#

Retai*ersA )rediction of co%)aniesA %oti(ation for offerin$ sa*es )ro%otion 1ere

%atchin$ 1ith the consu%er )erce)tion re$ardin$ the sa%e# Thus 'oth (ie1ed that

co%)anies 1ere usin$ sa*es )ro%otion acti(ities %ain*y to increase short ter% sa*es or

encoura$e s1itchin$ or se**in$ e;cess stoc5 and not rea**y to $i(e (a*ue 'enefit or

enhance4reinforce 'rand4co%)any i%a$e#


!,




T%#, O%', S#l" P%o&o'o

Trade Oriented Sa*es Pro%otion ai%ed to %oti(ate channe* %e%'er of the

co%)any and to encoura$e the% to )ush co%)anyAs )roduct# Trade Oriented Sa*es

Pro%otion inc*udes dea*er contest and incenti(es& trade a**o1ances# Point.of.)urchasedis)*ays& sa*es trainin$ )ro$ra%s& trade sho1s& coo)erati(e ad(ertisin$& and other

)ro$ra%s desi$ned to %oti(ate distri'utors and retai*ers to carry a )roduct and %a5e an

e;tra effort to )ush it to their custo%ers

S#l" $%o&o'o !%o& '+ %'#l%" $o' o! 3/

P%*$'o" o S*+& P%!%*

It 1as found that retai*er )ercei(ed )rice offs as a 'etter for% of sa*es )ro%otion

acti(ity# Price offs in their o)inion had re*ati(e*y a $reater i%)act co%)ared to any other

for% of sa*es )ro%otion acti(ity *i5e Bonus )ac5s& Pre%iu%& Contests etc# Retai*ers

)referred )rice offs the %ost& then 'onus )ac5& )re%iu%& contests& in order of

i%)ortance#

P%*$'o" #>o' B52 Rol"

Retai*ers (ie1ed that the )erson 1ho ca%e to the sho) F1ho %ay 'e a %aid& son&

dau$hter& dau$hter.in.*a1 and chi*d 1as the decider of a toi*et soa) 'rand and not the

Inco%e )ro(ider Fe#$# head of the fa%i*y# It cou*d 'e inferred that (isi'i*ity of

infor%ation a'out the sa*es )ro%otion acti(ity at the )oint of )urchase cou*d resu*t into

the )urchase of a )ro%oted 'rand#

P%*$'o" #>o' '+% %ol ,*"o&#2


!/




Retai*er had re*ati(e*y (ery *o1 inf*uence in affectin$ choice# It cou*d 'e inferred

that (isi'i*ity and a1areness a'out the sche%e 1ere the critica* success factors so that

)u** cou*d 'e created#

P%*$'o" #>o' R"$o" 'o S#l" P%o&o'o O!!%"

They 'e*ie(ed that youn$er a$e.$rou)s 1ere %ore e;)eri%enta* in nature&

a%ena'*e to tryin$ ne1 'rands& and sou$ht4*oo5ed for or as5ed 1hether there 1ere any

sa*es )ro%otion sche%es runnin$ on any toi*et soa) at the ti%e of )urchase#

P%*$'o" #>o' Co&&*#'o" o! S#l" P%o&o'o S*+&"

Retai*ers )ercei(ed that ro*e of 1ord of %outh and te*e(ision ad(ertisin$ )*ayed

an i%)ortant )art in )ro(idin$ infor%ation in)uts to consu%ers re$ardin$ sa*es

)ro%otion acti(ities#

V#%#'o" I!o%&#'o Flo

S%a**er Fnon.su)er%ar5et& s%a** for%at store retai*ers recei(ed re*ati(e*y *ess

su))ort co%)ared to su)er%ar5ets in ter%s of ser(icin$& %ar$ins& infor%ation a'out

sa*es )ro%otion acti(ities fro% the dea*ers# Many a ti%es s%a** retai*ers 1ere on*y

infor%ed (er'a**y a'out sa*es )ro%otion sche%es 'y the dea*er sa*es%en durin$ the

schedu*ed 1ee5*y (isits#

D#l%R'#l% D5#&*"

t the ti%e of sa*es )ro%otion acti(ities& dea*ers had tendency to )ush un1anted

stoc5s onto the s%a**er retai*ers# In fact these retai*ers )referred to stoc5 (ariety of

'rands and 1anted )ay%ent for she*f and 1indo1 dis)*ay to increase traffic into their


!!




store# 2o1e(er& su)er%ar5ets and 'i$ retai*ers 1ere )a%)ered and $i(en s)ecia*

ser(ices and $i(en 'etter %ar$ins and 'etter a**o1ances#


!6




M#%2"

It 1as found that in sa*es )ro%otion sche%es %ar$ins (aried fro% to/L

de)endin$ of the si7e of the retai* out*et& 'ar$ainin$ )o1er of a retai*er& 0uantity ordered

'y hi% etc# Most*y %ar$ins 1ere *in5ed to si7e of the (o*u%es that 1ere ordered#

P%*$'o" #>o' '%&" #, *o,'o"

Retai*ers 1ere not found to 'e ha))y 1ith sa*es )ro%otion sche%es 1here their

%ar$ins 1ere cut on the )rete;t of +ust fast %o(e%ent of in(entory of the 'rand 'ein$

)ro%oted# *so if additiona* incenti(e 1as offered it 1as su'+ect to %ini%u%

)erfor%ance re0uire%ent#

N#'% o! POP

Retai*ers indicated that %ost of the POP FPoint of Purchase %ateria*s 1ere

%eant for 'rand ad(ertise%ent and not for $i(in$ infor%ation re$ardin$ the sche%es#

Thus it cou*d 'e inferred that co%)anyAs fo**o1 u) 1as not ade0uate#

S%3*2 ,%2 ,%#'o o! S*+&

In stoc5.out situation durin$ the runnin$ of the sa*es )ro%otion sche%es& s%a**er

retai*ers had to 1ait for re)*enish%ent of stoc5s ti** the ne;t schedu*ed 1ee5*y (isit 'y

the dea*er sa*es%an 'ut 'i$ retai*ers 1ere ser(iced on te*e)honic re0uest for

re)*enish%ent of stoc5s# This c*ear*y indicated the dis)arity in treat%ent#

P%o>l& o! l!'o3%

*efto(er stoc5 at the end of any sche%e 1as re0uired to 'e so*d 'y the retai*ers

'efore they ordered fresh stoc5s# In case of 'onus )ac5s sche%e& *efto(er stoc5 1as

often dis%ant*ed Fcut o)en 'uy one $et one free and so*d the% indi(idua**y as a re$u*ar


!@




soa)# This a))roach of the co%)any *eads to %isa))ro)riation 1hich in turn cou*d resu*t

in ad(erse 'rand i%a$e#

G!'" !o% R'#l% &o'3#'o

Co%)anies at ti%es 1ere re1ardin$ retai*ers 'y $i(in$ free $ifts *i5e ther%os

f*as5s or c*oc5s if they so*d %ore than certain 0uantity in a $i(en )eriod# Co%)anies

1ere %a5in$ a ha*f.hearted effort to %oti(ate retai*ers#

P%*$'o" #>o' &#"" &,# #o*&'"

Retai*ers (ie1ed that 1hene(er sa*es )ro%otion sche%e 1as announced on T=&

it created )u** and they 1ere %ore than 1i**in$ to stoc5 such 'rands# <or e;a%)*e

Medi%i; and Detto* contest 1as not ad(ertised on T=& hence there 1as (ery *itt*e

a1areness *eadin$ to unso*d stoc5 ti** %onths# >hi*e 3u; Go*d Star 1hich 1as hea(i*y

)ro%oted on T#=# is reca**ed e(en today#

Po"' P%o&o'o B+#3o%

Retai*ers o'ser(ed that in %ost cases sa*es )ro%otion sche%e on a 'rand %i$ht

encoura$e a 'uyer to s1itch a 'rand te%)orari*y 'ut he 1ou*d re(ert 'ac5 to ori$ina*

'rand after )ro%otion#

H#,l2 P%o>l&"

Many a ti%eAs retai*ers had to hand*e (arious sa*es )ro%otion offers si%u*taneous*y in a

cate$ory and a*so across cate$ories and there 1as no for%a* co%%unication )*annin$

either fro% the dea*er or the co%)any# Re%e%'erin$ each offer and hand*in$ 1as a

)ro'*e% es)ecia**y for a s%a** retai*er 1hich 1as often an as one.%an sho1#


!




1+5 ,o S#l" $%o&o'o "*+&" #!!*' "#l"

There are three %echanis%s 'ehind these facts# It is Purchase 0uantity& Brand

s1itchin$ and Cate$ory e;)ansion#

F%"' consu%er can increase the 0uantity they 'uy +ust 'ecause the )roduct is on sa*e#

S*o, consu%ers are inducin$ to )urchase another 'rand different fro% the one they

1ou*d ha(e )urchased 1hen there is no )ro%otiona* incenti(e#

F#ll5 consu%erAs tota* consu%)tion of the )roduct cate$ory is increased 'y the

)ro%otion# 2o1e(er& in the *on$ ter% this )ositi(e effect %ay 'e di*uted 'ecause a

)ro%otiona* ca%)ai$n has no )er%anent effect in the sa*es of the fir%


!




S#l" P%o&o'o S'%#'25

Sa*es are the *ife'*ood of a 'usiness& 1ithout sa*es there 1ou*d 'e no 'usiness in

the first )*ace? therefore it is (ery i%)ortant that if a 'usiness 1ants to succeed& it shou*d

ha(e a sa*es )ro%otion strate$y in %ind# The )ri%ary o'+ecti(e of a sa*es )ro%otion is

to i%)ro(e a co%)anyAs sa*es 'y )redictin$ and %odifyin$ your tar$et custo%erAs

)urchasin$ 'eha(ior and )atterns#

Sa*es )ro%otion is (ery i%)ortant as it not on*y he*)s to 'oost sa*es 'ut it a*so

he*)s a 'usiness to dra1 ne1 custo%ers 1hi*e at the sa%e ti%e retainin$ o*der ones#

There are a (ariety of sa*es )ro%otiona* strate$ies that a 'usiness can use to increase

their sa*es& ho1e(er it is i%)ortant that 1e first understand 1hat a sa*es )ro%otion

strate$y actua**y is and 1hy it is so i%)ortant#

sa*es )ro%otion strate$y is an acti(ity that is desi$ned to he*) 'oost the sa*es

of a )roduct or ser(ice# This can 'e done throu$h an ad(ertisin$ ca%)ai$n& )u'*ic

re*ation acti(ities& a free sa%)*in$ ca%)ai$n& a free $ift ca%)ai$n& a tradin$ sta%)s

ca%)ai$n& throu$h de%onstrations and e;hi'itions& throu$h )ri7e $i(in$ co%)etitions&

throu$h te%)orary )rice cuts& and throu$h door.to.door sa*es& te*e%ar5etin$& )ersona*

sa*es *etters& and e%ai*s#

The i%)ortance of a sa*es )ro%otion strate$y cannot 'e underesti%ated# This is

'ecause a sa*es )ro%otion strate$y is i%)ortant to a 'usiness 'oostin$ its sa*es#

>hen de(e*o)in$ a sa*es )ro%otion strate$y for your 'usiness& it is i%)ortant

that you 5ee) the fo**o1in$ )oints in %ind#

• Consu%er attitudes and 'uyin$ )atterns

• Your 'rand strate$y

• Your co%)etiti(e strate$y

• Your ad(ertisin$ strate$y

• Other e;terna* factors that can inf*uence )roducts a(ai*a'i*ity and )ricin$#


!




T+% #% '+% '5$" o! "#l" $%o&o'o "'%#'2"/

• )ush strate$y

• )u** strate$y or

• co%'ination of the t1o

A P"+ S'%#'25/

N)ushA sa*es )ro%otion strate$y in(o*(es N)ushin$A distri'utors and retai*ers to

se** your )roducts and ser(ices to the consu%er 'y offerin$ (arious 5inds of )ro%otions

and )ersona* se**in$ efforts# >hat ha))ens here is that a co%)any )ro%otes their

)roduct4ser(ices to a rese**er 1ho in turn )ro%otes it to another rese**er or to the

consu%er# The 'asic o'+ecti(e of this strate$y is to )ersuade retai*ers& 1ho*esa*ers and

distri'utors to carry your 'rand& $i(e it she*f s)ace& )ro%ote it 'y ad(ertisin$& and

u*ti%ate*y N)ushA it for1ard to the consu%er# Ty)ica* )ush sa*es )ro%otion strate$ies

inc*ude? 'uy.'ac5 $uarantees& free tria*s& contests& discounts& and s)ecia*ty ad(ertisin$

ite%s#

A Pll S'%#'25/

N)u**A sa*es )ro%otion strate$y focuses %ore on the consu%er instead of the

rese**er or distri'utor# This strate$y in(o*(es $ettin$ the consu%er to N)u**A or )urchase

the )roduct4ser(ices direct*y fro% the co%)any itse*f# This strate$y tar$ets its %ar5etin$

efforts direct*y on the consu%ers 1ith the ho)e that it 1i** sti%u*ate interest and de%and

for the )roduct# This )u** strate$y is often used 1hen distri'utors are re*uctant to carry or

distri'ute a )roduct# Ty)ica* )u** sa*es )ro%otion strate$ies inc*ude? sa%)*es& cou)ons&

cash refunds or re'ates& *oya*ty )ro$ra%s and re1ards& contests& s1ee)sta5es& $a%es&

and )oint.of.)urchase dis)*ays#

A Co&>#'o o! To S'%#'2"/


!-




Nco%'inationA sa*es )ro%otion strate$y is +ust that? it is a co%'ination of a

)ush and a )u** strate$y# It focuses 'oth on the distri'utor as 1e** as the consu%ers&

tar$etin$ 'oth )arties direct*y# It offers consu%er incenti(es side 'y side 1ith dea*er

discounts#

T+ S+o%' '%& I&$#*' o! P%o&o'o"/

3etAs ha(e *oo5 at the i%)act of )ro%otions on )urchase 'eha(ior durin$ the

)ro%otiona* )eriod i#e# the 1ee5 or the %onth 1hen the )ro%otion 1as 'ein$ run# The

%a+ority of the e%)irica* studies ha(e focused on the i%)act of )ro%otions in the short

ter%# The 5ey findin$s across the studies are discussed 'e*o1#

T&$o%#%5 $%* %,*'o" ($%* o!!) ">"'#'#ll5 *%#" "#l"/

There is a%)*e e(idence to sho1 that )ro%otions *ead to dra%atic increases in sa*es of

)ro%oted 'rand in the short ter%# Studies ha(e consistent*y re)orted hi$h sa*es effects

and hi$h )rice e*asticity of 'rands 1hich are on )ro%otion# The econo%ic rationa*e for

the )ro%otiona* res)onse is c*ear te%)orary )rice cuts increase the (a*ue of the

)roduct to the consu%er and it *eads to i%%ediate action# Sa*es 'oost can 'e 0uantified

on the 'asis of 'rand s1itchin$& )ri%ary de%and e;)ansion and consu%er stoc5)i*in$

durin$ a )ro%otion#

S#l" P%o&o'o l#," 'o >%#, ">"'''o '+ '+ $%o,*' *#'2o%5/

The sa*es N'u%)A durin$ the )ro%otiona* )eriod into sa*es due to 'rand s1itchin$&

)urchase ti%e acce*eration and stoc5)i*in$# Studies on 'rand s1itchin$ ha(e sho1n that

'rand s1itchin$ effects 1ithin a cate$ory are asy%%etric such that )ro%otions on hi$her

0ua*ity 'rands i%)acts 1ea5er 'rands dis)ro)ortionate*y# Durin$ a )ro%otion& hi$her

0ua*ity 'rands induce a *ar$e nu%'er of consu%ers to s1itch to the% as co%)ared to

*o1er 0ua*ity 'rands# One e;)*anation ad(anced for this findin$ 'y researchers is that

*ar$e share 'rands ha(e hi$her 'rand e0uity and attract s1itchers %ore than *o1 share

'rands#


!





6,




S#l" P%o&o'o l#," 'o $%*+#" #**l%#'o"'o*$l2 !!*'"/

In res)onse to a )ro%otion& consu%ers %ay 'uy %ore 0uantity of the )roduct

cate$ory or 'uy at an ear*ier ti%e than usua* F)urchase acce*eration effect# If consu%ers

'uy e;tra 0uantity durin$ a )ro%otion or ear*ier than nor%a*& then they are not in the

%ar5et to 'uy )roducts once the )ro%otion is o(er# Thus )urchase acce*eration is

de%onstrated throu$h

*en$thenin$ of inter )urchase ti%es after a )ro%otion# Purchase acce*eration 1as %ore

*i5e*y to 'e e;hi'ited in increased )urchase 0uantity than in shortened inter )urchase

ti%es# Resu*ts sho1ed that consu%ers %ost*y %ade u) for the *ar$e 0uantity )urchased

'y 1aitin$ *on$er unti* )urchasin$ a$ain# Resu*ts indicated that hea(y users tended to

acce*erate )urchases %ore than *i$ht users# There 1as ne$*i$i'*e difference in the

acce*eration )ro)ensities of hi$h (ersus *o1 inco%e $rou)s#

S#l" P%o&o'o l#," 'o $%&#%5 ,&#, 4$#"o !o% # *#'2o%5/

>hi*e it 1as traditiona**y assu%ed that consu%)tion rates re%ain fi;ed durin$

and after a )ro%otion& 'ut fro% this )ro+ect I ca%e to 5no1 that )ro%otions a*so ha(e a

)ri%ary de%and e;)ansion effect# >hen a )ri%ary de%and e;)ansion occurs&

)ro%otion induced increase in )urchase 0uantities does not si$nificant*y e;tend the ti%e

ti** the ne;t )urchase in the cate$ory occurs& thus indicatin$ that there has 'een an

increase in consu%)tion )ro%otions induced consu%ers to 'uy %ore and consu%e

faster# It is found that )ro%otion induced in(entory te%)orari*y increased consu%)tion

rates 1ithin the cate$ory e#$# in cate$ories such as 'acon& sa*ted snac5s& soft drin5s and

yo$urt e;hi'ited )ri%ary de%and e;)ansions as a resu*t of )ro%otion 1hi*e 'athroo%

tissue& coffee& deter$ent and )a)er to1e*s e;hi'ited stoc5)i*in$ on*y#

S#l" P%o&o'o" #!!*' "#l" *o&$l&'#%5 #, *o&$''3 *#'2o%"/

<ro% this )ro+ect it is found that )ro%otion not on*y increases sa*es of %ain

)roduct 'ut it a*so *ead to increase in sa*es of co%)*e%entary cate$ories# <ound stron$

cross re*ationshi)s 'et1een )roducts of the )ro%oted )roduct cate$ory indicatin$ 'rand

su'stitution 'eha(ior# They stated that retai* )rice )ro%otions 1or5 as a for% of i%)*icit

)rice 'und*in$ 1here'y the consu%er sur)*us is transferred fro% the )ro%oted ite% to

non )ro%oted ite%s# *so found that retai* )rice )ro%otions create si$nificant

co%)*e%entary and su'stitution effects 1ithin the store#


6/




T+ Lo2 '%& I&$#*' o! P%o&o'o"/

Strate$ies are 'ui*ds to rea) the 'enefits for *on$er )eriod of ti%e? sa%e is true in sa*es

)ro%otion strate$ies# 3et us see i%)act of )ro%otions effort and study the i%)act o(er a

*on$er ti%e )eriod e#$# @. %onths or e(en a fe1 years after a sa*es )ro%otionca%)ai$n#

The resu*t sho1ed that consu%er )ro%otions for *eadin$ 'rands of esta'*ished )ac5a$ed

)roducts had no after.effects on the 'randAs sa*es or re)eat 'uyin$ *oya*ty# The e;tra

sa*es of a 'rand 1hi*e )ro%oted ca%e (irtua**y a** fro% the 'randAs e;istin$ *on$.ter%

custo%er 'ase for 1hich the e;)erience of 'uyin$ the )ro%oted 'rand 1as nothin$ ne1#

It is found that a*thou$h the short ter% effects of )ro%otions are stron$? these

)ro%otions rare*y e;hi'it *on$ ter% effects# It is o'ser(ed that each sa*es co%)onent

$enera**y *ac5ed a )er%anent effect and the effect of )ro%otion 1as short *i(ed and

increase in )ro%otions affected consu%ersA stoc5)i*in$ decisions in the *on$ run# They

found that the co%'ined short and *on$.ter% e*asticity of )ro%otions 1as 7ero# The

stoc5)i*in$ induced 'y a )ro%otion 1as essentia**y offset 'y reduced de%and in the

*on$ ter%# Thus increased sa*es 1ere %ore a resu*t of sa*es 'orro1ed fro% the future

than increased consu%)tion


6!




S1OT A#l5"" o! FMCG S*'o%

Strengths:

•

>e**.esta'*ished distri'ution net1or5 e;tendin$ to rura* areas#• Stron$ 'rands in the <MCG sector#

• 3o1 cost o)erations#

Weaknesses:

• 3o1 e;)ort *e(e*s#

• S%a**.sca*e sector reser(ations *i%it a'i*ity to in(est in techno*o$y and achie(e

econo%ies of sca*e#

• Se(era* %e.tooAA )roducts#

Opportunities:

• 3ar$e do%estic %ar5et#

• E;)ort )otentia*#

• Increasin$ inco%e *e(e*s 1i** resu*t in faster re(enue $ro1th##

Threats:

• I%)orts#

• Ta; and re$u*atory structure#

• S*o1do1n in rura* de%and#


66




DT "3YSIS


6@




Co"&%"


6




?. 1+*+ >%#, o! So#$ D'%2' ,o 5o "

B#'+2 "o#$" R"$o,'"

3u; @/

2a%% 6

3ife'uoy /@

"i%a -

Others 6@

I'%$%'#'o/

The a'o(e 0uestion has 'een for%ed to 5no1 the soa)s and deter$ents at the to)

of the %ind of the custo%ers# It sho1s those consu%ersA )urchase and use of that

)articu*ar 'rand# It 1i** he*) to the co%)any to 5no1 the %ar5et scenario and the %a+or

'rands in the %ar5et#

<or% the a'o(e resu*t it is c*ear that out of /,, custo%ers %ore than @, are consu%ers

are ha(in$ the sa%e 'rand as the i%a$e in their %ind& 1hereas others cate$ory is a*so

sho1in$ the hi$her $ra)h than these 6 %a+or )*ayersF2a%a%& 3ife'uoy& "i%a#


6

B#'+2 "o#$"

0

10

20

30

40

50

Respondents 41 3 14 8 34

Lux Hamam Lifebuoy Nima Others





6




D'%2' $o,% R"$o,'"

"ir%a su))er /

>hee* /@

Surf 6

rie* /-

Others /@

I'%$%'#'o/

<or% the a'o(e resu*t it is c*ear that out of /,, custo%ers 6 are )urchasin$ the

sa%e 'rand of deter$ent& 1hereas a** others are on sa%e *e(e*#


6-

D'%2' Po,%

0

5

10

15

20

25

30

35

40

Respondents 19 14 35 18 14

Nirma sup hee! "urf #rie! Othres




?. Do 5o #l#5" >5 '+ "#& >%#, o! So#$ D'%2'

P#%'*l#%" R"$o,'"

Yes

"o @@

I'%$%'#'o/

The o'+ecti(e 'ehind the for%ation of this 0uestion is to 5no1 the *e(e* of 'rand

*oya*ty of the consu%ers to1ards the 'rands of soa)s a(ai*a'*e in the %ar5et# The a'o(e

fi$ure sho1s that on L of the res)ondents are *oya* to their 'rands of deter$ent4soa)#

<MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is 'ecause of

%any reasons#


6

B%#, lo5#l

0

10

20

30

40

50

$0

Respondents 5$ 44

%es No




?9. 1+*+ !#*'o%" ,o 5o o%&#ll5 *o",% +l $%*+#"2 #

$#%'*l#% >%#, o! So#$ D'%2'"

F#*'o%"

B#'+2

"o#$ D'.$o,%<ra$rance / /-

Kua*ity 66 6

Co%)any i%a$e / /6

Price !6 /

Pac5a$in$ //

Others 6 6

I'%$%'#'o/

The o'+ecti(e 'ehind this 0uestion is to 5no1 the effect of inf*uencin$ factors in

the )urchase decision of the soa)s and deter$ent )o1ders# It %ain*y contains the factors

*i5e& 0ua*ity 1hich )*ayers an i%)ortant ro*e in the )urchase decision of the soa)s anddeter$ents 'oth#

If 1e *oo5 at the $ra)h of the soa)s and deter$ent it sho1s 0ua*ity as the %ost

inf*uencin$ factors in the )urchase decision 1hi*e )rice is a*so an i%)ortant for )urchase

decision#


@,

F#*'o%" #!!*'2 $%*+#" >+#3o%

0

10

20

30

40

&athin' soap 19 33 1$ 23 $ 3

(et)po*der 18 3$ 13 19 11 3

+ra'ran,e -ua!ity.ompany

ima'e/ri,e /a,a'in' Others




?:. Do 5o *o",% $%o&o'o#l "*+&" +l $%*+#"2 #

$#%'*l#% >%#, o! So#$ D'%2'

P#%'*l#%" R"$o,'"

Yes -

"o !!

H0/ P%o&o'o#l "*+&" +#3 # "2!*#' !!*' o '+ $%*+#" o! >%#,.

H/ P%o&o'o#l "*+&" ,o o' +#3 # !!*' o '+ $%*+#" o! >%#,.

I'%$%'#'o/

ns1er of this 0uestion 1i** $i(e idea a'out the effect of )ro%otiona* sche%es in

the )urchase decisions# Such ty)es of sche%es a*1ays attract %ore and %ore consu%ers

to1ards )articu*ar 'rand# Si%u*taneous*y it $i(es idea a'out the factors 1hich

consu%ers *oo5 %ost in the )roduct 'efore they %a5e fina* decision#2ere H0 is acce)ted as the $ra)h sho1s that - out of /,, consu%ers are

*oo5in$ for such sche%es 'efore they %a5e )urchase#


@/

E!!*' o! "*+&" $%*+#" >+#3o%

0

20

40

$0

80

100

Respondents 8 22

%es No




?;. 1+*+ o! '+ !ollo2 $%o&o'o#l "*+&" 5o +#3 *o& #*%o""

"o !#%

P%o&o'o#l "*+&" R"$o,'"

Cou)ons /

)rice off -@

<ree'ies !@

scratch cards /!

*uc5y dra1

Bund*in$ 6/

e;tra 0ty# @@

I'%$%'#'o/

The a'o(e stated 0uestion c*ear*y states the a1areness of )ro%otiona* sche%es

offered in the %ar5et 'y the %ar5eters to attract %ore and %ore consu%ers#

The resu*ts sho1 that )rice off and e;tra 0uantity is the t1o %ain offers4sche%es

1hich consu%ers ha(e ca%e across at the ti%e of )urchase# It 1i** he*) the

%anufacturers and %ar5eters too ho1 too *aunch their ne1 )roducts in the %ar5et 1ith

1hich sche%es#


@!

F#&l#%'5 o! $%o&o'o#l S*+&"

0

20

40

$0

80

100

Respondents 1$ 84 24 12 9 31 44

.oupons pri,e off +reebies s,rat,h

,ards !u,y dra* &und!in' extra ty)




?<. 1+*+ &,& ,o 5o !l " "'#>l 'o $%o&o' '+ 3#%o"

$%o&o'o#l "*+&"

So%* R"$o,'"

Radio //

T=

"e1s)a)er @6

2oardin$ /

Others /!

I'%$%'#'o:

This 0uestion $i(es stress on the %edia ha'it of the )eo)*e and throu$h 1hich the )roduct shou*d 'e *aunch or they thin5 it 1ou*d 'e 'etter than other Medias#

The a'o(e resu*t sho1s T= as the 'est %edia to %ar5et the )roduct 1hich 1i**

co(er %a+ority of the (ie1er shi)# On the second )*ace it sho1s ne1s )a)ers as the

%edia to )ro%ote the )roduct in the %ar5et#


@6

M,&" 'o $%o&o' '+ $%o&o'o#l "*+&"

0

20

40

$0

80

Respondents 11 $9 43 15 12

Radio Ne*s)ppr Hoardin' Others




?7. I" '+% #5 4"'2 "*+& o '+ So#$ D'%2' 5o #%

*%%'l5 "2

P#%'*l#%" R"$o,'"

Yes -

"o @!

I'%$%'#'o/

The ans1er of the res)ondents $i(e idea a'out the a1areness of the )ro%otiona*

sche%es offered in the %ar5et on their e;istin$ soa)s and deter$ents#

In this situation %ore then @,L of the )eo)*e are not a1are or ha(in$ (a$ue idea

a'out the )ro%otiona* sche%es runnin$ into the %ar5et#

It sho1s that )eo)*e are not %uch a1are of the sche%es 1hich continue in the

%ar5et it %ay 'e 'ecause of the )resent stoc5 of the )roduct at their )*ace#


@@

E4"'2 "*+& o '+ So#$ D'%2'

0

10

20

30

40

50

$0

0

Respondents 58 42

%es No




?8. I! 5" $l#" "$*!5

P#%'*l#%" R"$o,'"

6Q/4Other

<ree 6

Discount !!

"o idea

"o ans1er 6

0

5

10

15

20

25

30

35

40

"eries1 3$ 22 $ 3$

316Other +ree (is,ount No idea No ans*er

I'%$%'#'o/

This 0uestion su))orts the a'o(e 0uestion# It en*ists the ans1ers of those

custo%ers 1ho are a1are of the )resent sche%es offered in the %ar5et and a*so those

sche%es 1hich are %ore de%anded in the %ar5et#


@




The resu*t sho1s that /Q/ or !Q/ or other free sche%es are %ore de%anded and

%ore a1are sche%es in the %ar5et#

So %anufacturers %ay $o for the sa%e at the ti%e of *aunchin$ their )roduct#

?=. I! 5o 2' # #''%#*'3 $%o&o'o#l o!!% '+ $%o,*' o'+% '+

o! 5o% *+o* ll 5o "'*+ o3%

P#%'*l#%" R"$o,'"Yes 6

"o !

I'%$%'#'o/

It sho1s the *e(e* of 'rand *oya*ty a%on$ the consu%ers# The resu*t c*ear*y

sho1s that out of /,,& 6 )eo)*e are ready to s1itch o(er to another 'rand if they find


@

S'*+2 >+#3o%

0

10

20

30

4050

$0

0

80

Respondents 3 2

%es No




'etter )ro%otiona* sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q

0ua*ity#

Co%'ination of a** these sche%es 1i** run 'etter in the %ar5et#

?0. G3 %#"o !o% '+ "#&

P#%'*l#%" R"$o,'"

CostQ0ty /

Kua*ity /

Satisfaction !

Brand *oya*

More 'enefit4'ud$et !!

Season chan$e !

"o ans1er 6

I'%$%'#'o/


@

R#"o

0

10

20

30

40

Respondents 1$ 1 2 5 22 2 3$

.ostty -ua!ity Satisfaction &rand !oya! 7ore

&enefit6bud

"eason

,han'e No ans*er




'o(e 0uestion it $i(es s)ecific reasons for s1itchin$ too other )roducts# It

sho1s that e;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other

factors inf*uence consu%ers to s1itch o(er too other 'rands#


@-




?. G3 "22"'o" #>o' !'%"'* $%o&o'o#l "*+&"

This sho1 the consu%ersA future e;)ectations fro% the 1hether co%)any to

co%e 1ith ne1 sche%es or continue 1ith )resent one# It sho1s consu%ers de%and

1hich the %anufacturers ha(e to %eet#


@




R'#l%"


,




?. S* +o lo2 #% 5o '+" >"""

P#%'*l#%" R"$o,'"

/. Years !@

./, Years !

More than /, years @

0

10

20

30

40

50

$0

"eries1 24 2 49

185 %ears 5810 %ears 7ore than 10 years

I'%$%'#'o/

This 0uestion $i(es idea a'out the 'enefit to the retai*ers 1ho are on the %ar5etfro% *on$ )eriod of ti%e and the 'enefits they are $ettin$ %ore as co%)are to others# It

a*so sho1s their e;)erience in the fie*d and the ser(ices they are )ro(idin$ too their ne1

and re$u*ar custo%ers# It a*so $i(es idea a'out the 'enefits they are $ainin$ for

1ho*esa*ers and direct fro% the co%)any#


/





!




?. N#& '+ So#$ D'%2' (Co&$#5) 5o "'o* !o%.

Co&$#" R"$o,'"

"ir%a

2U3 /,,

PG ,

Godre+ @

Others -

I'%$%'#'o/

It $i(es idea a'out the ca)acity of the retai*ers to stoc5 the $oods and a*so the

(ariety of the )roducts they are stoc5in$# It 1i** a*so %a5e c*ear the de%and of the $oods

in their stores and the se**in$ of the )roduct in %ar5et# Most of the retai*er stoc5s a**

ty)es of soa) and deter$ent#


6

So#$ D'%2' "'o*

0

20

40

$0

80

100

120

"eries1 9$ 100 90 94 $8

Nirma HL /:; ;odre< Others




?9. R# '+ !ollo2 !#*'o%" '+#' *"'o&%" loo !o% '+ $%*+#"

o! So#$ D'%2'. (R# !%o& 'o <)

<actors / ! 6 @

<ra$rance 6 !@ 66 !! /, -

Kua*ity !6 6 / ,

Co%)any I%a$e /- 6@ !@ // @

Price / !- !@ /

Pac5a$in$ @ ! ! 6- !@

Others / ! , - 6@

I'%$%'#'o/

It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and

a*so the 1ei$ht a$e of that factor o(er other factors#

In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand

)eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er


@

B#'+2 So#$

0

10

20

30

40

50

$0

0

+ra'ran,e 3 24 33 22 10 8

-ua!ity $$ 23 3 1 0

.ompany =ma'e 9 18 34 24 11 4

/ri,e 1 28 24 1$ $ 9

/a,a'in' 4 5 2 2 38 24

Others 1 2 0 8 34 55

1 2 3 4 5 $




re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast

)erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are not inf*uencin$ factor as )er

the res)ondents#

F#*'o%" 2 3 4 5 6

F%#2%#* // 1 41 21 3

?#l'5 @6 34 1$ $ 1 0

Co&$#5

I&#2 /6 / ! ! //

P%* ! 28 14 9 $ 1$

P#*#22 5 2 33 43 11

O'+%" , 0 0 5 32 $3

I'%$%'#'o /

It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and

a*so the 1ei$ht a$e of that factor o(er other factors#


D'%2'

0

10

20

30

40

50

$0

0

+ra'ran,e 11 1 41 21 3

-ua!ity 43 34 1$ $ 1 0

.ompany =ma'e 13 1$ 2 2$ 11

/ri,e 2 28 14 9 $ 1$

/a,a'in' $ 5 2 33 43 11

Others 0 0 0 5 32 $3

1 2 3 4 5 $




In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand

)eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er

re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast

)erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are a*so )*ay i%)ortant ro*e for

)urchasin$ deter$ent )o1der#

?:. Do 5o "22"' *"'o&%" 'o $%*+#" # *%'# >%#,

P#%'*l#% R"$o,'"

Yes 66

"o

I'%$%'#'o/

This cou*d 'e a (ery he*) 0uestion to understand the ro*e of retai*ers in the

)urchase decision#

In a'o(e $ra)h L of retai*er are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona* re*ation or that custo%er are 'rand *oya*# >hi*e 66L of the retai*er

are su$$estin$ the consu%ers to 'uy )articu*ar 'rand# There cou*d 'e %any reasons *i5e&

e;tra %ar$in& re*ations 1ith consu%ers and 0ua*ity of the )roducts 1hich retai*er %ay

$et the 'enefit of the sa%e#


S22"'o

0

10

20

30

40

50

$0

0

80

"eries1 33 $

%es No




?;. I! @" +5

P#%'*l#% R"$o,'"

2i$h %ar$in

Kua*ity /

Re*ationshi)

"o reason

I'%$%'#'o/

it $i(es idea a'out the reasons 1hy retai*ers su$$est the consu%ers to 'uy

)articu*ar 'rand#In a'o(e $ra)h and ta'*e it is c*ear that for %ar$in and of 'etter re*ations 1ith

consu%ers and too )ro(ide 0ua*ity )roduct to consu%ers they su$$est consu%ers too

'ye )articu*ar 'rand# <or the co%)any it %ay 'e he*)fu* to tar$et such retai*ers to se**

their )roduct in the %ar5et easi*y#


I! 5"

0

10

20

30

40

50

$0

0

80

Respondents 9 1 $

Hi'h mar'in -ua!ity Re!ationship No reason




?<. Do *"'o&%" loo !o% 3#%o" "*+&" '+ $%o,*'

P#%'*l#% R"$o,'"

Yes !

"o -

I'%$%'#'o/

This $i(es a rea* he*)fu* data for chec5in$ the effect of sa*es )ro%otions in the

%ar5et and ho1 serious*y consu%ers fo**o1 the )ro%otions 'efore they $o for )urchase

)articu*ar 'rand#

The a'o(e resu*t sho1s that on*y - out ,f /,, didnAt $o for the )ro%otion

other1ise a** are *oo5in$ for any ty)e of the )ro%otions on the )roduct#


-

C"'o&%" loo !o% 3#%o" "*+&"

0

20

40

$0

80

100

Respondents 92 8

%es No




?7. I! 5" +*+ "*+&"

P%o&o'o#l

S*+&"

R"$o,'"

Cou)ons //

Price Off -!

<ree'ies 6

Scratch Cards !

3uc5y Dra1s /

Bund*in$ Offer

E;tra Kuantity

I'%$%'#'o/


1+*+ "*+&"

0

20

40

$0

80

100

Respondents 11 82 35 2 19 $5 9

.oupons /ri,e Off +reebies ",rat,h

.ards

Lu,y

(ra*s

&und!in'

Offer

>xtra

-uantity




The a'o(e stated resu*ts sho1 the de%and of (arious ty)es of )ro%otiona*

sche%es in the %ar5et 'y the consu%ers# *%ost a** ty)es of sche%es are 'ein$

de%anded 'y the consu%ers in the %ar5et 'ut there are three %a+or sche%es 1hich

consu%ers $enera**y *oo5 at the ti%e of )urchase or 'efore that#

Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the

consu%ers o(er others sche%es#

?8. 1+*+ T%#, P%o&o'o" ,o 3#%o" *o&$#" o!!%

NIRMAP%o&o'o" R"$o,'"

E;tra Mar$in @E;tra Units 6@

credit faci*ity

Gifts !@

)ro%o# E;)# -

H0/ E!!*' o! '%#, $%o&o'o" !o% #ll !o% >%#," " "&l#%.

H/ E!!*' o! '%#, $%o&o'o" !o% #ll !o% >%#," " o' "&l#%.

I'%$%'#'o/


,

T%#, P%o&o'o" >5 N%&#

0

10

20

30

40

50

$0

"eries1 4$ 34 55 24 8

>xtra 7ar'in >xtra nits ,redit fa,i!ity 'ifts promo) >xp)




<ro% the a'o(e $ra)h sho1s the trade )ro%otions offered 'y the "IRM 3td to

the retai*ers to attract the% to1ards stoc5in$ their $oods and a*so sto) the% s1itchin$

the% too other %a+or )*ayers in the %ar5et#

"IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it

%ay differ in the ti%e *i%it of the credit# It is a*so )ro(idin$ e;tra %ar$in& and units 1ith

occasiona* $ift 1ith their sche%es#


/




HULP%o&o'o" R"$o,'"

E;tra Mar$in @

E;tra Units 6@

Credit faci*ity -

Gifts !Pro%o# E;)# !!

I'%$%'#'o/

The ad(anta$e of 233 o(er "IRM is that it 'are )ro%otiona* e;)enses 1hich

"IRM is not doin$# It attracts %ore consu%ers throu$h such )ro%otions& such as

dis)*ay of the )roduct& 'anners etc#

So this %ay he*) it to attract %ore retai*ers# It %ay 'ecause of its *ess cost of

)roduction in other se$%ents in 1hich nir%a is not o)eratin$#


!

T%#, P%o&o'o" >5 HUL

0

10

20

30

40

50

$0

0

"eries1 4 34 58 25 22

>xtra 7ar'in >xtra nits .redit fa,i!ity ;ifts /romo) >xp)




P GP%o&o'o" R"$o,'"

E;tra Mar$in @,

E;tra Units 66Credit faci*ity

Gifts !,

Pro%o# E;)# /!

I'%$%'#'o/

PG is a*so a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the

faci*ities 1hich others are )ro(idin$ to retai*ers#


6

T%#, P%o&o'o" >5 PG

0

10

20

30

40

50

$0

"eries1 40 33 55 20 12





GODREJP%o&o'o" R"$o,'"

E;tra Mar$in @

E;tra Units 6!

Credit faci*ity

Gifts /

Pro%o# E;)# /-

I'%$%'#'o/

Godre+ is a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the faci*ities

1hich others are )ro(idin$ to retai*ers# But it is *ac5in$ in 'earin$ e;)enses 1hich 2U3

is )ro(idin$ to %a;i%u% nu%'er of retai*ers#


@

T%#, P%o&o'o" >5 Go,%-

0

10

20

30

40

50

$0

"eries1 4$ 32 5 19 18





OTHERSP%o&o'o" R"$o,'"

E;tra Mar$in 6,

E;tra Units /-

Credit faci*ity 6-

Gifts /

Pro%o# E;)#

I'%$%'#'o/

Others inc*ude *oca* )*ayers& as 1e** as 1e esta'*ished )*ayers *i5e& 1i)ro 'ut

their )roducts are not in de%and *i5e other )*ayers 'ut sti** they are )ro(idin$ a** the

faci*ities to retai*ers to attract to1ards stoc5in$ their )roducts#


T%#, P%o&o'o" >5 O'+%"

0

5

10

15

20

25

30

35

40

"eries1 30 18 38 15





GODREJ NIRMA HUL P&G

ExtraMargin 46 46 47 40

Extra Units 32 34 34 33

Creditfacility 57 55 58 55

Gifts 19 24 25 20

Pr!"Ex#" 18 8 22 12

34.4 33.4 37.2 32

Anova: Single a!"o#

SUMMAR$

Grou)s Count Su% (era$e =arianceCo*u%n / /! 6@#@ !-#6

Co*u%n ! / 66#@ 66#-

Co*u%n 6 /- 6#! !!#

Co*u%n @ /, 6! !-@#

ANOVA

Source of

=ariation

SS df MS < P.(a*ue < crit

Bet1een

Grou)s

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** the 'i$ )*ayers )ro(ide )ro%otion to the retai*ers due to cut throat co%)etition?Inter)retation: fro% the one factor ano(a ana*ysis& it is c*ear*y seen that there is a effect

of trade )ro%otion on (arious 'rands and are si%i*ar too# s ) ,#,& it is the e(idence

that the nu** hy)othesis is acce)ted





?= G3 %#"o" !o% o' "'o*2 # $#%'*l#% >%#,.

Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition#





?0 A5 S22"'o".

Retai*er su$$ested that )ac5a$in$ shou*d 'e further i%)ro(ed and used as

)ro%otiona* too*& to encoura$e sa*es durin$ certain )eriods the co%)any shou*d )ro(ide

)riceoff or e;tra 0uantity 'ecause that inf*uences direct*y to the consu%er#


-




F,2" o! '+ %$o%'/

Sa*es Pro%otion& a short.ter% induce%ent& offered to a consu%er or trade has

$ained %o%entu% as a )ro%otiona* too* 1or*d o(er# It re)resents near*y three fourth of

the %ar5etin$ 'ud$et at %ost consu%er )roduct co%)anies# Sa*es )ro%otions canenhance consu%ersA se*f.)erce)tion of 'ein$ 8s%art or a 8$ood sho))er

• <MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is

'ecause of %any reasons#

• Kua*ity as the %ost inf*uencin$ factors in the )urchase decision 1hi*e )rice is

a*so an i%)ortant for )urchase decision#

• Sche%es a*1ays attract %ore and %ore consu%ers to1ards )articu*ar 'rand#

Si%u*taneous*y it $i(es idea a'out the factors 1hich consu%ers *oo5 %ost in the )roduct 'efore they %a5e fina* decision

• Price off and e;tra 0uantity is the t1o %ain offers4sche%es 1hich consu%ers

ha(e ca%e across at the ti%e of )urchase

• T= as the 'est %edia to %ar5et the )roduct 1hich 1i** co(er %a+ority of the

(ie1er shi)# On the second )*ace it sho1s ne1s )a)ers as the %edia to )ro%otethe )roduct in the %ar5et

• Peo)*e are not %uch a1are of the sche%es 1hich continue in the %ar5et it %ay

'e 'ecause of the )resent stoc5 of the )roduct at their )*ace#

• /Q/ or !Q/ or other free sche%es are %ore de%anded and %ore a1are sche%es

in the %ar5et#

• Peo)*e are ready to s1itch o(er to another 'rand if they find 'etter )ro%otiona*

sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q 0ua*ity#

• E;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other

factors inf*uence consu%ers to s1itch o(er too other 'rands#

• Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition#

• Peo)*e are %ore 0ua*ity and )rice oriented#

• Consu%er re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so

fro% the )ast )erfor%ance of that co%)any





• Consu%er re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so

fro% the )ast )erfor%ance of that co%)any

• Retai*ers are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona*

re*ation or that custo%er are 'rand *oya*

• Mar$in and of 'etter re*ations 1ith consu%ers and too )ro(ide 0ua*ity )roduct to

consu%ers they su$$est consu%ers too 'ye )articu*ar 'rand#

• Custo%ers are *oo5in$ for any ty)e of the )ro%otions on the )roduct 'efore the%

$oin$ to )urchase#

• Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the

consu%ers o(er others sche%es#

• "IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it

%ay differ in the ti%e *i%it of the credit#

• 2U3 attracts %ore consu%ers throu$h such )ro%otions& such as dis)*ay of the

)roduct& 'anners etc#


,




R*o&&,#'o/

The findin$s of the e%)irica* study indicate that un*ess the 'rand to 'e )ro%oted

is in the consideration set of the consu%er& sa*es )ro%otion 'y itse*f is un*i5e*y to ha(e

any %a+or i%)act# C*ear*y this sho1s that %ana$ers need to in(est into 'rand 'ui*din$e;ercise so that his4her 'rand a))ears in the consideration set of the tar$et consu%ers#

On*y after this shou*d he s)end ti%e& %oney and ener$y on sa*es )ro%otion acti(ities#

Sa*es )ro%otion shou*d not 'e used in iso*ation 'ut need to 'e inte$rated 1ith

other too*s and in *ine 1ith the o(era** )ositionin$ of the 'rand# *so the i%)ortance of

the ro*e of %ass %edia ca%e out c*ear*y in the study#

Co%)anies need to create sufficient a1areness a'out sa*es )ro%otion sche%es

throu$h %ass %edia in order to create a1areness# <MCG )roducts are *o1 in(o*(e%ent

)roducts characteri7ed 'y s1itchin$ 'eha(ior# *so the )erson $oin$ to the sho) for the

)urchase of soa) is the fina* decision %a5er of the 'rand# 2ence it is essentia* that

co%)anies need to desi$n attracti(e& stri5in$& (isi'*e POPs for sche%e announce%ents#

>ith res)ect to nature of sche%e& the findin$ su$$ested that )re%iu% Ffree $ift

1as )o)u*ar 1ith co%)anies# >hi*e 'oth retai*ers and consu%ers )referred )rice offs# So

it is necessary that the )ercei(ed (a*ue of a free $ift has to 'e a))ea*in$ and hi$h for the

tar$et consu%ers#

Re)etiti(e use of the sa%e )re%iu% for a )ro*on$ed )eriod %ay ha(e ne$ati(e

effect on the *oya* custo%ers# >hen the co%)any is $i(in$ its o1n )roduct free as

)re%iu%& it needs to ensure the 0ua*ity of the )roduct fro% it as it is *i5e*y to +eo)ardi7e

the i%a$e of 'oth its )roducts#

The findin$s e;hi'ited that 'oth the retai*ers and consu%ers )ercei(ed that sa*es

)ro%otion acti(ities carried out 'y the co%)anies for increasin$ sa*es in short ter% and

c*earin$ e;cess stoc5s# >hat it i%)*ies is that co%)anies need to use sa*es )ro%otion


/




syner$istica**y and co%%unicate so that they )ro(ide (a*ue to the tar$et audience and

enhance 'rand 0ua*ity4i%a$e )erce)tions#

Co%)anies need to syste%ati7e infor%ation f*o1 re$ardin$ sa*es )ro%otion acti(ities

)articu*ar*y at dea*er and retai*er *e(e*# Ensurin$ )ro)er infor%ation f*o1 and de(isin$

chec5s and %easures to reduce %isa))ro)riations and i%)*e%entation f*o1s shou*d 'e

considered critica* as)ects for the success of sa*es )ro%otion acti(ities 'y the

co%)anies# s retai*in$ is fra$%ented& direct reach 'y co%)anies is ne;t to i%)ossi'*e#

Throu$h dea*ers and )ro)er feed'ac5 %echanis%& co%)anies 5ee) in touch 1ith the

%ar5et#

<ro% the study it 1as found that s%a**er retai*ers fe*t ne$*ected and not enthused to

i%)*e%ent the sche%es& )articu*ar*y 1hen additiona* hand*in$& stoc5in$& accountin$ 1as

re0uired on the )art of a retai*er 1ithout co%)ensatory %ar$ins# It can 'e seen that the

retai*er and consu%er )erce)tions %atched 1ith res)ect to )references of sche%es&

under*yin$ %oti(ations and ro*e of %ass %edia# This i%)*ies that the retai*er 1ou*d 'e a

rich source of infor%ation a'out the consu%er and the *i5e*y res)onse to sa*es

)ro%otion acti(ities#

De(e*o)in$ a syste% to ta) such res)onses fro% ti%e to ti%e 'oth at retai*er and

consu%er *e(e* 1ou*d 'e he*)fu* for )*annin$ future sa*es )ro%otion acti(ities# In order

to 'ui*d trust and co%%it%ent co%)anies shou*d ta) )references& )erce)tions of retai*ers

as 1e** as consu%ers#


!




L&'#'o" o! '+ "',5

• >e considered h%eda'ad re$ion on*y 'ecause of *i%ited ti%e duration#

• Due to this& our sa%)*e si7e is on*y /,,& 1hich is not (ery *ar$e#

• ** the res)ondents cou*d not fi** their 0uestionnaire on their o1n due to

*an$ua$e )ro'*e% and a*so )ro'*e% of ti%e and *ac5 of )ositi(e 'eha(ior#

• Res)ondent %ay $i(e 'iased ans1er due to so%e *ac5 of infor%ation a'out other

'rands#

• <indin$s of the study are 'ased on the assu%)tion that the res)ondents ha(e

$i(en correct infor%ation#


6




E&%22 T%,"

So far as <MCG %ar5et is concern there is ne1 trend is e%er$in$ 5no1n as Jo' "#l"

$%o&o'o# ctua**y it is o*d conce)t 'ut it 1as %ore )re(ai*in$ in dura'*e )roducts

no1 it is co%in$ intro non dura'*e $oods a*so# >hen any sa*es )ro%otion sche%e either

for trade or consu%er is announced 'y %ore than one co%)any and 4or %ore than one

'rand of the sa%e co%)any& it is referred as +oint sa*es )ro%otion or hori7onta* co.

o)erati(e sa*es )ro%otion or cross )ro%otion or u%'re**a sa*es )ro%otion#

Cl#""!*#'o o! -o' "#l" $%o&o'o/

• Use co%)*e%entari*y due to natura* use

• "e1 use caterin$ co%)*e%entary re*ationshi)s

• Co%%ona*ity of need due to use ti%e

• Tie.u) of a ne1 4s*o1 %o(in$ 'rand 1ith an esta'*ished 'rand

• Tar$et %ar5et co%%ona*ity

• Seasona* de%and

• Distri'ution co%%ona*ity

• Tar$etin$ ne1 se$%ent

• Deri(ed de%and

• Counterin$ co%)etiti(e +oint sa*es )ro%otions


@




Co*l"o o! '+ S%35

The study ref*ects that the use of sa*es )ro%otion undenia'*y has increased o(er

the years in India# <uture ho*ds *ot of )ro%ise for such sche%es across 1ider ran$e of

)roduct.%ar5ets#

Sa*es Pro%otion has ceased to 'e %a+or differentiator at *east in the %etros& 1ith

a*%ost a** co%)anies offerin$ si%i*ar free'ies and $ifts# s a resu*t no1 %ar5eters ha(e

to find out so%e inno(ati(e 1ays of sa*es )ro%otion to differentiate fro% co%)etitors#

Current*y Price off and Bye one $et one free offers are (ery effecti(e to attract the

consu%ers to1ards the )roducts#

>e ha(e noted that these 5ind of )ro%otiona* too*s are usefu* for short ter%

increase in sa*es and to induce first tria*# These ty)es of )ro%otiona* sche%es shou*d 'e

consistent and chan$ed fro% ti%e to ti%e de)endin$ u)on season and co%)etitorAs

sche%es#

>ith the Increasin$ nu%'er of su)er%ar5et& the 'randed )ac5a$ed $oods 1or5

as si*ent sa*es )erson# So in such stores& sa*es )ro%otion )*ays a %ore effecti(e ro*e in

sti%u*atin$ consu%ersA de%ands#

One of the (ery i%)ortant facts 1e ca%e to 5no1 fro% this )ro+ect is that sa*e of

$oods 1hich contain *ar$e 0uantity and ha(in$ 'i$ )ac5a$in$ e#$# deter$ent are

sta$natin$ 'ecause consu%er )refer to 'uy s%a** )ac5 $oods& the reasons are: s%a** )ac5

$oods reduce ris5 of 'ad 0ua*ity& It had *o1 cost or say )rice& and *ast 'ut i%)ortant

factor i#e# %enta*ity to )urchase +ust to try first# Sa*es of s%a** )ac5 $oods are 0uite hi$h&





'ut fro% the co%)anyAs )oint of (ie1 s%a** )ac5 $oods is *ess )rofita'*e co%)are to

*ar$e )ac5 $oods#

So here %ar5eter tries to increase sa*es of *ar$e )ac5 $oods 'y usin$ sa*es

)ro%otion tactics *i5e )rice off and )ercenta$e e;tra#

B>lo2%#$+5

BOOS

Phi*i) 9ot*er& 8Mar5etin$ Mana$e%ent& //

th

edition& Pearson education siaPu'*ication#

C#R#9othari& 8Research Methodo*o$y %ethods techni0ues&"e1 $e

Internationa*F)*td#)u'*ishers&!nd edition#

1EBSITES

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A4%





?"'o#%

C"'o&%"

>e are students of MB studyin$ in G3S "RIBM 2MEDBD and carryin$ out a sur(ey

for our acade%ic )ro+ect to8Ro*e of sa*es )ro%otions in <MCG# So )*ease fi** this

0uestionnaire# Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for

acade%ic )ur)ose#

K/# >hich 'rand of Soa) 4 Deter$ent do you useH

K!# Do you a*1ays 'uy the sa%e 'rand of Soa) 4 Deter$entH

Particu*ars Res )ondent

Yes

"oK6# >hich factors do you nor%a**y consider 1hi*e )urchasin$ a )articu*ar 'rand of Soa)

4 Deter$entsH

<actors

Bathin$

soa) Det#)o1der

<ra$rance

Kua*ity

Co%)any i%a$e

Price

Pac5a$in$

Others

K@# Do you consider )ro%otiona* sche%es 1hi*e )urchasin$ a )articu*ar 'rand of Soa) 4

Deter$entH

Particu*ars Res)ondent

Yes

"o

K# >hich of the fo**o1in$ )ro%otiona* sche%es you ha(e co%e across so farH


-

Deter$ent )o1der Res)ondent

"ir%a su))er

>hee*

Surf

rie*

Others

Bathin$ soa)s Res)ondent

3u;

2a%a%

3ife'uoy

"ir%a

Others




Pro%otiona*

sche%es Res)ondent

Cou)ons

)rice off

<ree'ies

scratch cards

*uc5y dra1

Bund*in$

e;tra 0ty#

K# >hich %ediu% do you fee* is suita'*e to )ro%ote the (arious )ro%otiona* sche%esH

Source Res)ondent

Radio

T=

"e1s)a)er

2oardin$

Others

K# Is there any e;istin$ sche%e on the Soa) 4 Deter$ent you are current*y usin$H


Yes

"o

K-# If yes& )*ease s)ecifyH


6Q/4Other<ree

Discount

"o idea

"o ans1er

K# If you $et an attracti(e )ro%otiona* offer in the )roduct other than of your choice

1i** you s1itch o(erH


Yes

"o

K/,# Gi(e reason for the sa%eH


CostQ0ty





Kua*ity

Satisfaction

Brand *oya*

More

'enefit4'ud$et

Season chan$e

"o ans1er

K//# Gi(e su$$estions a'out futuristic )ro%otiona* sche%es#


-,




Retai*ers

>e are students of MB studyin$ in G3S "RIBM 2MEDBD and carryin$ out a sur(ey

for our acade%ic )ro+ect 8Ro*e of sa*es )ro%otions in <MCG# So )*ease fi** this 0uestionnaire#

Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for acade%ic )ur)ose#

K/# Since ho1 *on$ are you in this 'usinessHParticu*ars Res)ondent

/. Years

./, Years

More than /, years

K!# "a%e the Soa) 4 Deter$ent FCo%)any you stoc5 for#

Co%)anies Res)ondent

"ir%a

2U3

PG

Godre+

Others

K6# Ran5 the fo**o1in$ factors that custo%ers *oo5 for in the )urchase of Soa) 4

Deter$ent# FRan5 fro% / to

<actors / ! 6 @

<ra$rance

Kua*ity

Co%)any

I%a$e

PricePac5a$in$

Others

K@# Do you su$$est custo%ers to )urchase a certain 'randH

Particu*a

r

Res)ondent

Yes

"o

K# If Yes 1hyH

Particu*ar Res)ondent

2i$h %ar$in

Kua*ity

Re*ationshi)

"o reason


-/




K# Do custo%ers *oo5 for (arious sche%es in the )roductH

Particu*a

r

Res)ondent

Yes

"oK# If yes 1hich sche%esH

Pro%otiona*

Sche%es

Res)ondent

Cou)ons

Price Off

<ree'ies

Scratch Cards

3uc5y Dra1s

Bund*in$ Offer

E;tra Kuantity

K-# >hich Trade Pro%otions do (arious co%)anies offerH


-!

"IRM

Pro%otions Res)ondent

E;tra Mar$in

E;tra Units

credit faci*ity

Gifts

)ro%o# E;)#

2U3


E;tra Mar$in

E;tra Units

Credit faci*ity

Gifts

Pro%o# E;)#

P G


E;tra Mar$in

E;tra Units

Credit faci*ity

Gifts

Pro%o# E;)#

GODREJ


E;tra Mar$in

E;tra Units

Credit faci*ity

Gifts

Pro%o# E;)#




OT2ERS


E;tra Mar$in

E;tra Units

Credit faci*ity

GiftsPro%o# E;)#

K Gi(e reasons for not stoc5in$ a )articu*ar 'rand#

K/, ny Su$$estions#

Sales Promotion Strategy Fmcg for Print

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