gp on fmcg

8/13/2019 GP ON FMCG

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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 ofMBA Degree

PROJECT GUIDE:

PROF. K.C. MAHESH

SUBMITTED BY:

PARTH MODY (15)

HIMANSHU REDDIAR (25)

SUBMITTED TO:

SOM LALIT INSTITUTE OF BUSINESS

MANAGEMENT


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Role of sales promotions in FMCG sector

AHMEDABAD

Som alit Instit!te Of B!siness Mana"ement

#Mar$etin"% &


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T'is is to certif( t'at Mr. Par! M"#$ an) Mr.H%&a'! R*##%art'e st!)ents of

MB* &n) (ear of Som alit Instit!te of B!siness Mana"ement+ *'me)a,a) 'a-e

complete) t'eir Gran) Pro.ect R"+* ", a+* -r"&"%"' %' FMCGin t'e (ear &//01

&/22 in partial f!lfillment of G!.arat Tec'nolo"ical Uni-ersit( re3!irements for t'e

a4ar) of t'e )e"ree of Master of B!siness *)ministration5

D%r*"r Gra'# Pr"/* G%#*

Prof5 Dr5 Ja")is' Jos'ip!ra Prof5 Ma'es' 65C

Da*0 1342311


#Mar$etin"% 7


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PREFACE

In t'is a"e of "lo,ali8ation '(per competition 'as ,ecome a re"!lar feat!re5 To)a( t'e

mar$ets are no less t'en ,attle"ro!n)s an) one 'as to stri-e -er( 'ar) for s!r-i-al an)

"ro4t'5

D!e to -er( rapi) in)!striali8ation all o-er t'e 4orl) t'e )eman) for t'e mana"erial

personnel an) t'e a)ministrati-e personnel 'as increase)5 T'e perfect st!)( of

Mana"ement in-ol-es ,ot' t'e t'eoretical as 4ell as practical aspects5 To s!r-i-e in t'is

'i"'l( competiti-e mar$et 9Practical 6no4le)"e is as rele-ant as t'e T'eoretical5

T'e si"nificance of MB* De"ree is t'at t'e T'eoretical aspects+ 4'ic' a st!)ent learnst'ro!"'o!t t'e (ear in t'e class sessions+ can ,e practicall( applie) t'ro!"' )ifferent

pro.ects+ 4'ic' one !n)erta$es5 6eepin" in t!ne 4it' t'is )octrine+ 4e 'a-e trie) to

appl( t'eoretical aspects t'ro!"' o!t t'e pro.ect+ 4'ic' 4e learne) !n)er t'e co!rse of

mana"ement5

In t'is pro.ect more emp'asi8e "i-en to t'e -ario!s tools of sales promotion an) its

impact on cons!mers ,!(in" )ecisions5 *ct!all( in recent tren) to some e;tent t'is

tec'ni3!e also ,ecome -ictim of cl!tter+ e-en t'o!"' it can ,e eliminate) ,( "eneratin"

inno-ati-e an) more attracti-e tools to l!re t'e c!stomers5


5/79


ACKNOLEDGEMENT

E-er( st!)( re3!ires a "!i)ance of someone 4'o is 4or$in" in t'at fiel)5 Firstl(

4e 4o!l) li$e to t'an$ Director Dr5 6a7#%! 6"!%-ra for pro-i)in" an

opport!nit( of preparin" a Gran) Pro.ect Report an) allo4in" !s to !se t'e

reso!rces of t'e instit!tion )!rin" t'is pro.ect5

>e are e;tremel( t'an$f!l to o!r Pro.ect G!i)e+Pr",. Ma!*! K.C of SIBM for

t'eir precio!s "!i)ance re"ar)in" t'e preparation of t'e Pro.ect Report5 T'eir

"!i)ance 'as pro-e) to ,e !sef!l an) 4it'o!t t'em+ t'e preparation of t'is report

mi"'t not 'a-e ,een possi,le5

>e are also t'an$f!l to t'e ot'er fac!lt( mem,ers of SIBM for e;ten)in" t'eir

-al!a,le s!pport for t'is pro.ect5

>e also e;ten) o!r sincere t'an$s to t'e Respon)ents+ 4'o 'elpe) !s )!rin" t'e

co!rse of o!r pro.ect an) for t'eir "racio!s attit!)e5

>e 4o!l) li$e to ta$e t'is opport!nit( to e;ten) o!r 4arm t'o!"'ts to t'ose 4'o

'elpe) me in ma$in" t'is pro.ect a 4on)erf!l e;perience5

ast ,!t not t'e least? 4e 4o!l) also li$e to t'an$ o!r famil( for t'eir s!pport an)

enco!ra"ement5


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E8*%9* S&&ar$

*s a part of o!r st!)( c!rric!l!m it is necessar( to con)!ct a "ran) pro.ect5 It pro-i)es

!s an opport!nit( to !n)erstan) t'e partic!lar topic in )ept' an) 4'ic' lea)s to t'ro!"'

to t'at topic5 O!r topic for t'e "ran) pro.ect is title) as 9St!)( of cons!mer oriente)

sales promotion in FMCG sector in 4'ic' emp'asis "i-en to t'e effect of sales

promotion on ,!(in" 'a,its of cons!mers5

To start 4it' 4e 4ill "i-e ,rief information re"ar)in" FMCG sector t'en mo-in" to t'e

main topic 4e 4ill e;plain 4'at is topic is all a,o!t5 Promotion is one of t'e pillars of

mar$etin" mi; an) same 4a( sales promotion is also one of t'e elements of promotion5

>it' respect to cons!mer oriente) sales promotion t'ere are certain t'eories narrate) as

operant con)itionin" an) pro.ecti-e t'eor(5 Base) on secon)ar( so!rce certain

t'eoretical aspects are also incl!)e) as a part of st!)( an) after concentration is "i-en to

t'e primar( researc'5 It incl!)es t'e anal(sis an) res!lts of s!r-e( 4'ic' foc!ses on

cons!merAs ,e'a-ior to4ar)s sales promotion campai"n5 T'e s!r-e( 4as con)!cte)

4it' t'e 'elp of str!ct!re) 3!estionnaire5

*t last concl!sion of report+ fin)in"s an) s!""estions 4ere "i-en+ ,ase) on st!)( of

secon)ar( so!rce as 4ell as primar( researc'5


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INDE:

Sr.

N".

TOPICS Pa7*

N".

1. R**ar! M*!"#"+"7$ ", !* #$

2. I'r"#%"'

;. I'r"#%"' " !* "-% 2/

4. Sa+* -r"&"%"' ra*7%* &=

5. SOT A'a+$% &0


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RESEARCH METHODOLOGY

R**ar! O?/*%9*0

25 To st!)( cons!mer preferences 4it' respect to sales promotion in FMCG sector5

&5 To e;amine tra)eoffs+ relati-e importance of )ifferent attri,!tes 4'ile

respon)in" to a sales promotion offer5

75 To st!)( t'e effect of sales promotions in FMCG sector esp5 in soaps an)

)eter"ent in)!str(5

=5 To st!)( cons!mer ,e'a-ior in p!rc'ase of soaps an) )eter"ent

Pr"# a*7"r%* '#*r #$

DETERGENTS: >as'in" Po4)er for Clot'es

TOILETERIES Soaps

R**ar! D*%7'

Researc' )esi"n selecte) for t'is pro.ect is Descripti-e5

Daa "++*%"' M*!"#0

(a) Pr%&ar$ Daa C"++*%"' M*!"#0

S!r-e( met'o) 4as !se) for primar( )ata collection5

>e !se) 3!estionnaire as an instr!ment for s!r-e( met'o)5

Str!ct!re) 3!estionnaire5

T(pe of 3!estionnaire: Open en)e) an) close) en)e)5

(?) S*"'#ar$ Daa C"++*%"' &*!"#0

Reference ,oo$s5

Internet5


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Sa&-+%'7 D*a%+

25 Tar"et pop!lation: T'e pop!lation for t'is researc' st!)( consists of t'e

resi)ence of *'me)a,a)5

&5 Samplin" !nit: In t'is st!)( t'e samplin" !nit is in)i-i)!al cons!mer5

75 Sample si8e: 2// cons!mers an) 2// retailers5

75 Samplin" met'o): T'e sample is selecte) ,( !sin" con-enience1samplin" met'o)5


#Mar$etin"% 0


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I'r"#%"'

FMCG C"'*- a'# D*,%'%%"'0

T'e term FMCG #fast mo-in" cons!mer "oo)s%+ alt'o!"' pop!lar an) fre3!entl( !se)

)oes not 'a-e a stan)ar) )efinition an) is "enerall( !se) in In)ia to refer to pro)!cts of

e-er()a( !se5 Concept!all(+ 'o4e-er+ t'e term refers to relati-el( fast mo-in" items t'at

are !se) )irectl( ,( t'e cons!mer5 T'!s+ a si"nificant "ap e;ists ,et4een t'e "eneral !se

an) t'e concept!al meanin" of t'e term FMCG5

F!rt'er+ )iffic!lties crop !p 4'en attempts to )e-ise a )efinition for FMCG5 T'e

pro,lem arises ,eca!se t'e concept 'as a retail orientation an) )istin"!is'es ,et4een

cons!mer pro)!cts on t'e ,asis of 'o4 3!ic$l( t'e( mo-e at t'e retailerAs s'el-es5 T'e

moot 3!estion t'erefore+ is 4'at in)!str( t!rnaro!n) t'res'ol) s'o!l) ,e for t'e item to

3!alif( as an FMCG5 S'o!l) t'e t!rnaro!n) 'appen )ail(+ 4ee$l(+ or mont'l(

One of t'e factors on 4'ic' t'e t!rnaro!n) )epen)s is t'e p!rc'ase c(cle5 o4e-er+ t'e

p!rc'ase c(cle for t'e same pro)!ct ten) to -ar( across pop!lation se"ments5 Man(

lo41income 'o!se'ol)s are force) to ,!( certain pro)!cts more fre3!entl( ,eca!se of

lac$ of li3!i)it( an) stora"e space 4'ile relati-el( 'i"'1income 'o!se'ol)s ,!( t'e

same pro)!cts more infre3!entl(5 Similarl(+ t'e p!rc'ase c(cle also ten)s to -ar(

,eca!se of c!lt!ral factors5 Most In)ians+ t(picall(+ prefer fres' foo) articles an)

t'erefore to ,!( relati-el( small 3!antities more fre3!entl(5 T'is is in s'arp contrast

4it' 4'at 'appens in most 4estern co!ntries+ 4'ere t'e practice of ,!(in" an) soc$in"

foo)s for relati-el( lon"er perio) is more pre-alent5 T'!s+ s'o!l) t'e in-entor(

t!rnaro!n) t'res'ol) ,e !ni-ersal+ or s'o!l) it allo4 for income+ c!lt!ral an) ,e'a-ioral

n!ances


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C!ara*r%% ", FMCG Pr"#0

In)i-i)!al items are of small -al!e5 B!t all FMCG pro)!cts p!t to"et'er acco!nt

for a si"nificant part of t'e cons!mers ,!)"et5

T'e cons!mer $eeps limite) in-entor( of t'ese pro)!cts an) prefers to p!rc'ase

t'em fre3!entl(+ as an) 4'en re3!ire)5 Man( of t'ese pro)!cts are peris'a,le5

T'e cons!mer spen)s little time on t'e p!rc'ase )ecision5 Rarel( )oes 'eHs'e

loo$ for tec'nical specifications #in contrast to in)!strial "oo)s%5 Bran)

lo(alties or recommen)ations of relia,le retailerH)ealer )ri-e p!rc'ase

)ecisions5

Trial of a ne4 pro)!ct i5e5 ,ran) s4itc'in" is often in)!ce) ,( 'ea-(

a)-ertisement+ recommen)ation of t'e retailer or nei"',orsHfrien)s5

T'ese pro)!cts cater to necessities+ comforts as 4ell as l!;!ries5 T'e( meet t'e

)eman)s of t'e entire cross section of pop!lation5 Price an) income elasticit(

of )eman) -aries across pro)!cts an) cons!mers5


#Mar$etin"% 22


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I'r"#%"'

T'e importance of cons!mer sales promotion in t'e mar$etin" mi; of t'e fast mo-in"cons!mer "oo)s #FMCG% cate"or( t'ro!"'o!t t'e 4orl) 'as increase)5 Companies

spen) consi)era,le time in plannin" s!c' acti-ities5 o4e-er+ in or)er to en'ance t'e

effecti-eness of t'ese acti-ities+ man!fact!rers s'o!l) !n)erstan) cons!mer an) retailer

interpretations of t'eir promotional acti-ities5 T'e st!)( 'ere pertains to cons!merAs

perceptions re"ar)in" sales promotion5 Some past researc'es 'a-e s!""este) t'at

promotion itself 'as an effect on t'e percei-e) -al!e of t'e ,ran)5 T'is is ,eca!se

promotions pro-i)e !tilitarian ,enefits s!c' as monetar( sa-in"s+ a))e) -al!e+ increase)

3!alit( an) con-enience as 4ell as 'e)onic ,enefits s!c' as entertainment+ e;ploration

an) self1e;pression5

Broa)l( spea$in" most of t'e companies !sin" Mar$etin" Mi; 4'ic' incl!)es

Price

Place #C'annel of Distri,!tion%

Pro)!ct

Pr"&"%"'

T'ese are t'e fo!r ,asic pillar of mar$etin" mi;5 Most of t'e mar$etin" strate"ies are

,!ilt on t'e ,asis of t'ese criteria5

Promotion is one of t'e important elements of mar$etin" mi;5 T'ere are so man(

elements of promotion s!c' as

*)-ertisin"

Direct Mar$etin"

P!,lic Relations


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Sa+* Pr"&"%"'

Tra)itionall(+ sales Promotions 'a-e ,een !se) ,( mar$eter to increase sales in t'e s'ort

term5 o4e-er+ in t'e last fe4 )eca)es t'is comm!nication tool 'as e-ol-e) an) no4 is

consi)ere) from a strate"ic point of -ie45 For t'is reason+ it is necessar( to reali8e ne4

st!)ies in t'is area an) st!)( 'o4 cons!mers e-al!ate sales promotions5 Sales

promotions 'a-e "ro4n in ,ot' importance an) fre3!enc( o-er t'e past fe4 )eca)es5

*lt'o!"' an acc!rate estimate for total sales promotions e;pen)it!res )oes not e;ist+ 4e

can ,e s!re t'at t'e tren) is !p5

Sales promotion ser-es t'ree essential roles: It informs+ pers!a)es an) remin)s

prospecti-e c!stomers a,o!t a compan( an) its pro)!cts5 E-en t'e most !sef!l pro)!ct

or ,ran) 4ill ,e a fail!re if no one $no4s t'at it is a-aila,le5 *s 4e $no4+ c'annels of

)istri,!tion ta$e more time in creatin" a4areness ,eca!se a pro)!ct 'as to pass t'ro!"'

man( 'an)s ,et4een a pro)!cer an) cons!mers5

T'erefore+ a pro)!cer 'as to inform c'annel mem,ers as 4ell as !ltimate cons!mers

a,o!t t'e attri,!tes an) a-aila,ilit( of 'is pro)!cts5 T'e secon) p!rpose of promotion is

pers!asion5 T'e c!t t'roat competition amon" )ifferent pro)!cts p!ts tremen)o!spress!re on t'eir man!fact!rers an) t'e( are compelle) to !n)erta$e sales promotion

acti-ities5 T'e t'ir) p!rpose of promotion is remin)in" cons!mers a,o!t pro)!cts

a-aila,ilit( an) its potential to satisf( t'eir nee)s5

From t'ese elements Sales Promotion is t'e element 4'ic' is in t'e foc!s of t'is pro.ect5

F!rt'er Sales Promotion is 3!ite ,roa) term it incl!)es

C"'&*r Or%*'*# Sa+* Pr"&"%"'

Tra#* Or%*'*# Sa+* Pr"&"%"'


#Mar$etin"% 27


14/79


C"'&*r Or%*'*# Sa+* Pr"&"%"'

Cons!mer Oriente) Sales Promotion is t'e main topic of t'is pro.ect5 ere emp'asi8e is

"i-en to moti-ate cons!mer to increase sales5 Cons!mer Oriente) Sales Promotion

incl!)es Samplin"+ Co!ponin"+ Premi!ms+ Contest+ Ref!n)s+ Re,ates+ Bon!s Pac$As+

Price1off+ E-ent mar$etin" etc5

D*,%'%%"'0

For t'e p!rpose of t'is st!)(+ follo4in" )efinitions of sales promotion 4ere $ept in

min)5

6otler )efines sales promotion as: 9Sales promotion consists of a )i-erse collection of

incenti-e tools+ mostl( s'ort1term )esi"ne) to stim!late 3!ic$er an)Hor "reater p!rc'ase

of partic!lar pro)!ctsHser-ices ,( cons!mers or t'e tra)e5 Ro"er Stran"'as "i-en a

more simplistic )efinition i5e5 9sales promotions are s'ort1term incenti-es to enco!ra"e

p!rc'ase or sales of a pro)!ct or ser-ice5

ence+ an( forms of incenti-es #price c!t or -al!e a))e) nat!re% offere) for s'ort perio)

eit'er to tra)e or cons!mers are consi)ere) as sales promotion acti-ities5

Mar**r * "'&*r "r%*'*# a+* -r"&"%"' ""+ ,"r !* ,"++"%'7 r*a"'0

To increase s'ort term sales To in)!ce trial

To re)!ce in-entor(

To esta,lis' a ,ran) name

To ma$e cross sellin"


#Mar$etin"% 2=


15/79


To cope !p 4it' competition

To a-oi) a)-ertisin" cl!tter

T""+ ", C"'&*r Or%*'*# Sa+* Pr"&"%"'0

T'ere are so man( tools or tec'ni3!e a-aila,le to t'e mar$eters for ac'ie-in" o,.ecti-e

of sales promotion5 T'ese tools s'o!l) ,e !se) consi)erin" all ot'er factors affectin"

s!c' as cost+ time+ competitors+ a-aila,ilit( of "oo)s etc5 T'ese tools are as !n)er

25 Co!pons&5 Price1Off

75 Free,ies

=5 Scratc' Car)s

@5 !c$( Dra4s

5 B!n)lin" Offer

5 E;tra !antit(

etAs 'a-e loo$ at eac' tool

1. C"-"'0

Co!pon is t'e ol)est an) most 4i)el( !se) 4a( of sales promotion5 Co!pons 'a-e ,een

!se) since 20@5 It is mostl( !se) ,( pac$a"e) "oo)s5 It is 4ort'4'ile to !se co!pon as

a promotion tool ,eca!se )ata s'o4s t'at mar$et for pac$a"e) "oo)s increase) from 2

,illion in 20 to 72/ ,illion in 200=5 To ,oost !p t'e sales not onl( man!fact!rer ,!t

retailers personall( can also !se)5 * co!pon lea)s to price re)!ctions so as to enco!ra"e

price sensiti-e c!stomers5


16/79


* price1off is simpl( a re)!ction in t'e price of t'e pro)!ct to increase sales an) is -er(

often !se) 4'en intro)!ction a ne4 pro)!ct5 * re)!ction in price al4a(s increases sales

,!t t'e !se of t'is tec'ni3!e s'o!l) ,e caref!ll( consi)ere) in t'e c!rrent mar$et

sit!ation5

Price1off is t'e most preferre) sales promotion tec'ni3!e ,eca!se cons!mers response

-er( positi-el( to t'is sc'eme5


17/79


5. B'#+%'7 O,,*r

Pro)!ct ,!n)lin" is a mar$etin"strate"( t'at in-ol-es offerin" se-eralpro)!ctsfor sale

as one com,ine) pro)!ct5 T'is strate"( is -er( common in t'e soft4are,!siness #for

e;ample: ,!n)le a 4or) processor+a sprea)s'eet+an) a )ata,ase into a sin"le office

s!ite%+ in t'e ca,le tele-ision in)!str( #for e;ample+ ,asic ca,le in t'e Unite) States

"enerall( offers man( c'annels at one price%+ an) in t'e fast foo) in)!str( in 4'ic'

m!ltiple items are com,ine) into a complete meal5* ,!n)le of pro)!cts is sometimes

referre) to as a pac$a"e )eal or a compilation or an ant'olo"(5

Fa"r I',+*'%'7 C"'&*r Or%*'*# a+* -r"&"%"'0

Mainl( fo!r factors s'o!l) ,e ta$en into acco!nt 4'ile )eterminin" t'e sales promotion

pro"ram5

L Tar"et mar$et

L 'ile )oin" sales promotion+ mar$eter m!st $no4 4'o t'eir tar"et mar$et is? ot'er4ise

t'ere is no !se of all effort ,eca!se it lea)s to no 4'ere5 * tar"et mar$et can ,e in an( of

t'e sta"es of ,!(in" 'ierarc'( i5e5 a4areness+ $no4le)"e+ li$in"+ preferences+ con-iction

an) p!rc'ase5 Eac' sta"e )efines a possi,le "oal of promotion5


#Mar$etin"% 2
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Word_processorhttp://en.wikipedia.org/wiki/Word_processorhttp://en.wikipedia.org/wiki/Spreadsheethttp://en.wikipedia.org/wiki/Spreadsheethttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Office_suitehttp://en.wikipedia.org/wiki/Office_suitehttp://en.wikipedia.org/wiki/Cable_televisionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Value_mealhttp://en.wikipedia.org/wiki/Value_mealhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Word_processorhttp://en.wikipedia.org/wiki/Spreadsheethttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Office_suitehttp://en.wikipedia.org/wiki/Office_suitehttp://en.wikipedia.org/wiki/Cable_televisionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Value_meal


18/79


2. Nar* ", !* -r"#0

T'ere are -ario!s pro)!ct attri,!tes 4'ic' infl!ence sales promotional strate"(5 >'en

t'e !nit price is lo4 t'e man!fact!rer as 4ell as t'e c!stomer 'as lo4 ris$ ,!t 'e can "et

t'e ,enefit of mass mar$etin"5 T'erefore+ mass mar$etin" re3!ires mass sales promotion

sc'emes5 Sales promotion sc'eme )iffer for pro)!cts li$e its )!ra,ilit(+ peris'a,le "oo)s

etc5

;. Sa7* ", -r"# L%,* C$+*0

Sales promotion strate"ies are infl!ence) ,( t'e life c(cle of a pro)!ct5 >'en a ne4

pro)!ct intro)!ce)+ prospecti-e ,!(ers m!st ,e informe) a,o!t its e;istence an) its

,enefits an) mi))lemen m!st ,e con-ince) to stoc$ it5 ater+ if a pro)!ct ,ecomes

s!ccessf!l+ competition intensifies an) more emp'asis is place) on sales promotion to

increase its sales5

4. B#7* A9a%+a?+* ,"r Pr"&"%"'0

T'e f!n)s a-aila,le for promotion are t'e !ltimate )eterminant of t'e promotional

pro"ramme5 * ,!siness 4it' ample f!n)s can ma$e more effecti-e !se of salespromotion pro"ramme t'an a firm 4it' limite) financial reso!rces5 T'e ,!)"et for sales

promotion can ,e prepare) ,( t'e follo4in" met'o)s

Percenta"e of Sales

Fi;e) f!n)s a-aila,le for sales promotion

Follo4in" t'e competition+ an)

B!)"etin" ,( o,.ecti-e5


#Mar$etin"% 2


19/79


Sa+* Pr"&"%"' ,r"& !* C"'&*r -"%' ", 9%*

%++%'7'* " ?$ "' a+* -r"&"%"' ",,*r

Si;t( per cent of t'e sample )i) not s'o4 4illin"ness to ,!( a ,ran) )!e to promotion

4'ile 7/K s'o4e) 4illin"ness an) 2/K 4ere not s!re5 T'is in)icates t'at 4'en 7/K

s'o4e) 4illin"ness an) 2/K cons!mers 4'o 4ere not s!re+ t'ese "ro!ps mi"'t ,e l!re)

t'ro!"' inno-ati-e an) l!crati-e sales promotion offer5

A?%+%$ " %'#* r%a+

Fort( per cent of t'e respon)ents 'a) sai) t'at sales promotion 'a) t'e a,ilit( to in)!ce

trial 4'ic' reinforces t'e a,o-e inference5

L"'7*r& %&-a

In or)er to !n)erstan) a,ilit( of t'e promotions to increase lon"1term sales+ respon)ents

4ere as$e) a,o!t contin!it( of p!rc'ase of a ,ran) after t'e 4it')ra4al of promotion5

Ei"'t( per cent of t'e respon)ents in)icate) t'at t'e( 4o!l) not contin!e5 B!t &/K sai)

t'e( 4o!l)5 T'!s+ it co!l) ,e inferre) t'at promotions in t'is cate"or( #lo4 in-ol-ement

pro)!cts% mi"'t enco!ra"e trial an) ,ran) s4itc'in" ,!t not lon" term lo(alt(5

Pr*,*r*'* ", S!*&*:

Price off 4as t'e most preferre) t(pe of sc'eme5 Ma;im!m c!stomersA ran$e) price1offs

as n!m,er one or t4o5

P*r*%9*# @a+%$:


#Mar$etin"% 20


20/79


Ma.orit( of respon)ents 'a) a perception t'at t'e 3!alit( of t'e promote) ,ran)s

remaine) t'e same )!rin" promotion+ 4'ile some of t'em felt t'at it 4as inferior t'an

,efore5 It can ,e inferre) t'at promotions 4ere not lea)in" to ne"ati-e ,ran) 3!alit(

perceptions5 It is fo!n) t'at some c!stomer stron"l( preferre) to ,!( t'eir re"!lar ,ran)

an) sai) t'at sales promotion 4o!l) not 4ea$en t'eir lo(alt( to4ar)s t'e ,ran)5

P*r*-%"' r*7ar#%'7 '#*r+$%'7 "&-a'$ &"%9a%"'

On tappin" perceptionsA re"ar)in" !n)erl(in" compan( moti-ations for sales promotion+

9to increase sales 4as ran$e) 'i"'est follo4e) ,( 9to attract s4itc'ers an) 9to sell

e;cess stoc$s5 >'ile pro-i)in" -al!e to c!stomers an)

9To reinforce compan( ima"e 4ere ran$e) lo4est5 T'is in)icates t'at cons!mers

,elie-e) t'at companies 4ere !n)erta$in" s!c' acti-ities onl( for t'eir o4n ,enefit an)

not for t'e ,enefit of cons!mers5

Fin)in"s from retailer an) cons!mer perception st!)ies+ it is e-i)ent t'at t'ere 4as a

matc'in" of perceptions re"ar)in" nat!re of sc'eme #price offs as most preferre) t(pe of

sc'eme mentione) ,( cons!mers an) retailersA perceptions a,o!t cons!merpreferences%5 Since retailers o,ser-e cons!mers in store ,e'a-ior 4ere fre3!entl( an)

)irectl(+ t'eir perceptions re"ar)in" pro-i)in" cons!mer ,e'a-ior are li$el( to ,e

acc!rate5 S!c' inp!ts from t'e retailers 4o!l) ,e !sef!l to companies5

T'e retailers 'a) t'e perception t'at t'ose sc'emes 4'ic' 4ere anno!nce) t'ro!"' mass

me)ia 'a) ,etter response5 T'is 4as reinforce) ,( t'e cons!mer s!r-e( 4'ic' s'o4e)

t'at recall in case of 'ea-il( promote) sc'emes on T 4as fo!n) to ,e -er( 'i"'5

RetailersA pre)iction of companiesA moti-ation for offerin" sales promotion 4ere

matc'in" 4it' t'e cons!mer perception re"ar)in" t'e same5 T'!s ,ot' -ie4e) t'at

companies 4ere !sin" sales promotion acti-ities mainl( to increase s'ort term sales or

enco!ra"e s4itc'in" or sellin" e;cess stoc$ an) not reall( to "i-e -al!e ,enefit or

en'anceHreinforce ,ran)Hcompan( ima"e5


#Mar$etin"% &/


21/79


Tra#* Or%*'*# Sa+* Pr"&"%"'

Tra)e Oriente) Sales Promotion aime) to moti-ate c'annel mem,er of t'e compan( an)

to enco!ra"e t'em to p!s' compan(As pro)!ct5 Tra)e Oriente) Sales Promotion incl!)es

)ealer contest an) incenti-es+ tra)e allo4ances5 Point1of1p!rc'ase )ispla(s+ sales

trainin" pro"rams+ tra)e s'o4s+ cooperati-e a)-ertisin"+ an) ot'er pro"rams )esi"ne) to

moti-ate )istri,!tors an) retailers to carr( a pro)!ct an) ma$e an e;tra effort to p!s' it

to t'eir c!stomers

Sa+* -r"&"%"' ,r"& !* r*a%+*r -"%' ", 9%*0

P*r*-%"' "' S!*&* Pr*,*r*'*

It 4as fo!n) t'at retailer percei-e) price offs as a ,etter form of sales promotion

acti-it(5 Price offs in t'eir opinion 'a) relati-el( a "reater impact compare) to an( ot'er

form of sales promotion acti-it( li$e Bon!s pac$s+ Premi!m+ Contests etc5 Retailers

preferre) price offs t'e most+ t'en ,on!s pac$+ premi!m+ contests+ in or)er of

importance5

P*r*-%"' a?" B$%'7 R"+*

Retailers -ie4e) t'at t'e person 4'o came to t'e s'op #4'o ma( ,e a mai)+ son+

)a!"'ter+ )a!"'ter1in1la4 an) c'il)% 4as t'e )eci)er of a toilet soap ,ran) an) not t'e

Income pro-i)er #e5"5 'ea) of t'e famil(%5 It co!l) ,e inferre) t'at -isi,ilit( of

information a,o!t t'e sales promotion acti-it( at t'e point of p!rc'ase co!l) res!lt into

t'e p!rc'ase of a promote) ,ran)5

P*r*-%"' a?" !*%r r"+* %' #*%%"'&a%'7


#Mar$etin"% &2


22/79


Retailer 'a) relati-el( -er( lo4 infl!ence in affectin" c'oice5 It co!l) ,e inferre) t'at

-isi,ilit( an) a4areness a,o!t t'e sc'eme 4ere t'e critical s!ccess factors so t'at p!ll

co!l) ,e create)5

P*r*-%"' a?" R*-"'* " Sa+* Pr"&"%"' O,,*r

T'e( ,elie-e) t'at (o!n"er a"e1"ro!ps 4ere more e;perimental in nat!re+ amena,le to

tr(in" ne4 ,ran)s+ an) so!"'tHloo$e) for or as$e) 4'et'er t'ere 4ere an(% sales

promotion sc'emes r!nnin" on an( toilet soap at t'e time of p!rc'ase5

P*r*-%"' a?" C"&&'%a%"' ", Sa+* Pr"&"%"' S!*&*

Retailers percei-e) t'at role of 4or) of mo!t' an) tele-ision a)-ertisin" pla(e) an

important part in pro-i)in" information inp!ts to cons!mers re"ar)in" sales promotion

acti-ities5

ar%a%"' %' I',"r&a%"' F+"

Smaller #non1s!permar$et+ small format store% retailers recei-e) relati-el( less s!pport

compare) to s!permar$ets in terms of ser-icin"+ mar"ins+ information a,o!t salespromotion acti-ities from t'e )ealers5 Man( a times small retailers 4ere onl( informe)

-er,all( a,o!t sales promotion sc'emes ,( t'e )ealer salesmen )!rin" t'e sc'e)!le)

4ee$l( -isits5

D*a+*rR*a%+*r D$'a&%

*t t'e time of sales promotion acti-ities+ )ealers 'a) ten)enc( to p!s' !n4ante) stoc$s

onto t'e smaller retailers5 In fact t'ese retailers preferre) to stoc$ -ariet( of ,ran)s an)

4ante) pa(ment for s'elf an) 4in)o4 )ispla( to increase traffic into t'eir store5

o4e-er+ s!permar$ets an) ,i" retailers 4ere pampere) an) "i-en special ser-ices an)

"i-en ,etter mar"ins an) ,etter allo4ances5


#Mar$etin"% &&


23/79


Mar7%'

It 4as fo!n) t'at in sales promotion sc'emes mar"ins -arie) from to2@K )epen)in" of

t'e si8e of t'e retail o!tlet+ ,ar"ainin" po4er of a retailer+ 3!antit( or)ere) ,( 'im etc5

Mostl( mar"ins 4ere lin$e) to si8e of t'e -ol!mes t'at 4ere or)ere)5

P*r*-%"' a?" *r& a'# "'#%%"'

Retailers 4ere not fo!n) to ,e 'app( 4it' sales promotion sc'emes 4'ere t'eir mar"ins

4ere c!t on t'e prete;t of .!st fast mo-ement of in-entor( of t'e ,ran) ,ein" promote)5

*lso if a))itional incenti-e 4as offere) it 4as s!,.ect to minim!m performance

re3!irement5

Nar* ", POP

Retailers in)icate) t'at most of t'e POP #Point of P!rc'ase% materials 4ere meant for

,ran) a)-ertisement an) not for "i-in" information re"ar)in" t'e sc'emes5 T'!s it co!l)

,e inferre) t'at compan(As follo4 !p 4as not a)e3!ate5

S*r9%%'7 #r%'7 #ra%"' ", S!*&*

In stoc$1o!t sit!ation )!rin" t'e r!nnin" of t'e sales promotion sc'emes+ smaller

retailers 'a) to 4ait for replenis'ment of stoc$s till t'e ne;t sc'e)!le) 4ee$l( -isit ,(

t'e )ealer salesman ,!t ,i" retailers 4ere ser-ice) on telep'onic re3!est for

replenis'ment of stoc$s5 T'is clearl( in)icate) t'e )isparit( in treatment5

Pr"?+*& ", +*,"9*r

* lefto-er stoc$ at t'e en) of an( sc'eme 4as re3!ire) to ,e sol) ,( t'e retailers ,efore

t'e( or)ere) fres' stoc$s5 In case of ,on!s pac$s sc'eme+ lefto-er stoc$ 4as often

)ismantle) #c!t open ,!( one "et one free% an) sol) t'em in)i-i)!all( as a re"!lar soap5


#Mar$etin"% &7


24/79


T'is approac' of t'e compan( lea)s to misappropriation 4'ic' in t!rn co!l) res!lt in

a)-erse ,ran) ima"e5

G%, ,"r R*a%+*r &"%9a%"'

Companies at times 4ere re4ar)in" retailers ,( "i-in" free "ifts li$e t'ermos flas$s or

cloc$s if t'e( sol) more t'an certain 3!antit( in a "i-en perio)5 Companies 4ere ma$in"

a 'alf1'earte) effort to moti-ate retailers5

P*r*-%"' a?" &a &*#%a a''"'*&*'

Retailers -ie4e) t'at 4'ene-er sales promotion sc'eme 4as anno!nce) on T+ it

create) p!ll an) t'e( 4ere more t'an 4illin" to stoc$ s!c' ,ran)s5 For e;ample

Me)imi; an) Dettol contest 4as not a)-ertise) on T+ 'ence t'ere 4as -er( little

a4areness lea)in" to !nsol) stoc$ till mont's5 >'ile !; Gol) Star 4'ic' 4as 'ea-il(

promote) on T55 is recalle) e-en to)a(5

P" Pr"&"%"' B*!a9%"r

Retailers o,ser-e) t'at in most cases sales promotion sc'eme on a ,ran) mi"'t

enco!ra"e a ,!(er to s4itc' a ,ran) temporaril( ,!t 'e 4o!l) re-ert ,ac$ to ori"inal

,ran) after promotion5

Ha'#+%'7 Pr"?+*&

Man( a timeAs retailers 'a) to 'an)le -ario!s sales promotion offers sim!ltaneo!sl( in a

cate"or( an) also across cate"ories an) t'ere 4as no formal comm!nication plannin"

eit'er from t'e )ealer or t'e compan(5 Remem,erin" eac' offer an) 'an)lin" 4as a

pro,lem especiall( for a small retailer 4'ic' 4as often an as one1man s'o45


#Mar$etin"% &=


25/79



#Mar$etin"% &@


26/79


!$ #" Sa+* -r"&"%"' !*&* a,,* a+*

T'ere are t'ree mec'anisms ,e'in) t'ese facts5 It is P!rc'ase 3!antit(+ Bran) s4itc'in"

an) Cate"or( e;pansion5

1)Cons!mer can increase t'e 3!antit( t'e( ,!( .!st ,eca!se t'e pro)!ct is on sale5

2)Cons!mers are in)!cin" to p!rc'ase anot'er ,ran) )ifferent from t'e one t'e( 4o!l)

'a-e p!rc'ase) 4'en t'ere is no promotional incenti-e5

;)Cons!merAs total cons!mption of t'e pro)!ct cate"or( is increase) ,( t'e promotion5

o4e-er+ in t'e lon" term t'is positi-e effect ma( ,e )il!te) ,eca!se a promotional

campai"n 'as no permanent effect in t'e sales of t'e firm


#Mar$etin"% &


27/79


Sa+* Pr"&"%"' Sra*7$

Sales are t'e life,loo) of a ,!siness+ 4it'o!t sales t'ere 4o!l) ,e no ,!siness in t'e first

place? t'erefore it is -er( important t'at if a ,!siness 4ants to s!ccee)+ it s'o!l) 'a-e a

sales promotion strate"( in min)5 T'e primar( o,.ecti-e of a sales promotion is to

impro-e a compan(As sales ,( pre)ictin" an) mo)if(in" (o!r tar"et c!stomerAs

p!rc'asin" ,e'a-ior an) patterns5 Sales promotion is -er( important as it not onl( 'elps

to ,oost sales ,!t it also 'elps a ,!siness to )ra4 ne4 c!stomers 4'ile at t'e same time

retainin" ol)er ones5 T'ere are a -ariet( of sales promotional strate"ies t'at a ,!siness

can !se to increase t'eir sales+ 'o4e-er it is important t'at 4e first !n)erstan) 4'at asales promotion strate"( act!all( is an) 4'( it is so important5

* sales promotion strate"( is an acti-it( t'at is )esi"ne) to 'elp ,oost t'e sales of a

pro)!ct or ser-ice5 T'is can ,e )one t'ro!"' an a)-ertisin" campai"n+ p!,lic relation

acti-ities+ a free samplin" campai"n+ a free "ift campai"n+ a tra)in" stamps campai"n+

t'ro!"' )emonstrations an) e;'i,itions+ t'ro!"' pri8e "i-in" competitions+ t'ro!"'

temporar( price c!ts+ an) t'ro!"' )oor1to1)oor sales+ telemar$etin"+ personal sales

letters+ an) emails5

T'e importance of a sales promotion strate"( cannot ,e !n)erestimate)5 T'is is ,eca!se

a sales promotion strate"( is important to a ,!siness ,oostin" its sales5

>'en )e-elopin" a sales promotion strate"( for (o!r ,!siness+ it is important t'at (o!

$eep t'e follo4in" points in min)5

Cons!mer attit!)es an) ,!(in" patterns

Yo!r ,ran) strate"( Yo!r competiti-e strate"(

Yo!r a)-ertisin" strate"(

Ot'er e;ternal factors t'at can infl!ence pro)!cts a-aila,ilit( an) pricin"5


#Mar$etin"% &


28/79


T!*r* ar* !r** $-* ", a+* -r"&"%"' ra*7%*0

* p!s' strate"(

* p!ll strate"( or

* com,ination of t'e t4o

A P! Sra*7$0

* Np!s'A sales promotion strate"( in-ol-es Np!s'in"A )istri,!tors an) retailers to sell

(o!r pro)!cts an) ser-ices to t'e cons!mer ,( offerin" -ario!s $in)s of promotions an)

personal sellin" efforts5 >'at 'appens 'ere is t'at a compan( promotes t'eir

pro)!ctHser-ices to a reseller 4'o in t!rn promotes it to anot'er reseller or to t'e

cons!mer5 T'e ,asic o,.ecti-e of t'is strate"( is to pers!a)e retailers+ 4'olesalers an)

)istri,!tors to carr( (o!r ,ran)+ "i-e it s'elf space+ promote it ,( a)-ertisin"+ an)

!ltimatel( Np!s'A it for4ar) to t'e cons!mer5 T(pical p!s' sales promotion strate"ies

incl!)e? ,!(1,ac$ "!arantees+ free trials+ contests+ )isco!nts+ an) specialt( a)-ertisin"

items5

A P++ Sra*7$0

* Np!llA sales promotion strate"( foc!ses more on t'e cons!mer instea) of t'e reseller or

)istri,!tor5 T'is strate"( in-ol-es "ettin" t'e cons!mer to Np!llA or p!rc'ase t'e

pro)!ctHser-ices )irectl( from t'e compan( itself5 T'is strate"( tar"ets its mar$etin"

efforts )irectl( on t'e cons!mers 4it' t'e 'ope t'at it 4ill stim!late interest an) )eman)

for t'e pro)!ct5 T'is p!ll strate"( is often !se) 4'en )istri,!tors are rel!ctant to carr( or

)istri,!te a pro)!ct5 T(pical p!ll sales promotion strate"ies incl!)e? samples+ co!pons+

cas' ref!n)s or re,ates+ lo(alt( pro"rams an) re4ar)s+ contests+ s4eepsta$es+ "ames+

an) point1of1p!rc'ase )ispla(s5


#Mar$etin"% &


29/79


A C"&?%'a%"' ", T" Sra*7%*0

* Ncom,inationA sales promotion strate"( is .!st t'at? it is a com,ination of a p!s' an) a

p!ll strate"(5 It foc!ses ,ot' on t'e )istri,!tor as 4ell as t'e cons!mers+ tar"etin" ,ot'

parties )irectl(5 It offers cons!mer incenti-es si)e ,( si)e 4it' )ealer )isco!nts5

T!* S!"r *r& I&-a ", Pr"&"%"'0

etAs 'a-e loo$ at t'e impact of promotions on p!rc'ase ,e'a-ior )!rin" t'e

promotional perio) i5e5 t'e 4ee$ or t'e mont' 4'en t'e promotion 4as ,ein" r!n5 T'e

ma.orit( of t'e empirical st!)ies 'a-e foc!se) on t'e impact of promotions in t'e s'ort

term5 T'e $e( fin)in"s across t'e st!)ies are )isc!sse) ,elo45

T*&-"rar$ -r%* r*#%"' (-r%* ",,) ?a'%a++$ %'r*a* a+*0

T'ere is ample e-i)ence to s'o4 t'at promotions lea) to )ramatic increases in sales of

promote) ,ran) in t'e s'ort term5 St!)ies 'a-e consistentl( reporte) 'i"' sales effects

an) 'i"' price elasticit( of ,ran)s 4'ic' are on promotion5 T'e economic rationale for

t'e promotional response is clear temporar( price c!ts increase t'e -al!e of t'e

pro)!ct to t'e cons!mer an) it lea)s to imme)iate action5 Sales ,oost can ,e 3!antifie)

on t'e ,asis of ,ran) s4itc'in"+ primar( )eman) e;pansion an) cons!mer stoc$pilin")!rin" a promotion5

Sa+* Pr"&"%"' +*a# " ?ra'# ?%%"' %! !* -r"# a*7"r$0


#Mar$etin"% &0


30/79


T'e sales N,!mpA )!rin" t'e promotional perio) into sales )!e to ,ran) s4itc'in"+

p!rc'ase time acceleration an) stoc$pilin"5 St!)ies on ,ran) s4itc'in" 'a-e s'o4n t'at

,ran) s4itc'in" effects 4it'in a cate"or( are as(mmetric s!c' t'at promotions on 'i"'er

3!alit( ,ran)s impacts 4ea$er ,ran)s )isproportionatel(5 D!rin" a promotion+ 'i"'er

3!alit( ,ran)s in)!ce a lar"e n!m,er of cons!mers to s4itc' to t'em as compare) to

lo4er 3!alit( ,ran)s5

Sa+* Pr"&"%"' +*a# " -r!a* a*+*ra%"'"-%+%'7 *,,*0

In response to a promotion+ cons!mers ma( ,!( more 3!antit( of t'e pro)!ct cate"or(

or ,!( at an earlier time t'an !s!al #p!rc'ase acceleration effect%5 If cons!mers ,!(

e;tra 3!antit( )!rin" a promotion or earlier t'an normal+ t'en t'e( are not in t'e mar$et

to ,!( pro)!cts once t'e promotion is o-er5 * len"t'enin" of inter p!rc'ase times after a

promotion5 P!rc'ase acceleration 4as more li$el( to ,e e;'i,ite) in increase) p!rc'ase

3!antit( t'an in s'ortene) inter p!rc'ase times5 Res!lts s'o4e) t'at cons!mers mostl(

ma)e !p for t'e lar"e 3!antit( p!rc'ase) ,( 4aitin" lon"er !ntil p!rc'asin" a"ain5

Res!lts in)icate) t'at 'ea-( !sers ten)e) to accelerate p!rc'ases more t'an li"'t !sers5

T'ere 4as ne"li"i,le )ifference in t'e acceleration propensities of 'i"' -ers!s lo4income "ro!ps5

Sa+* Pr"&"%"' +*a# " -r%&ar$ #*&a'# *8-a'%"' ,"r a a*7"r$0

>'ile it 4as tra)itionall( ass!me) t'at cons!mption rates remain fi;e) )!rin" an) after

a promotion+ ,!t from t'is pro.ect I came to $no4 t'at promotions also 'a-e a primar(

)eman) e;pansion effect5 >'en a primar( )eman) e;pansion occ!rs+ promotion

in)!ce) increase in p!rc'ase 3!antities )oes not si"nificantl( e;ten) t'e time till t'e

ne;t p!rc'ase in t'e cate"or( occ!rs+ t'!s in)icatin" t'at t'ere 'as ,een an increase in

cons!mption promotions in)!ce) cons!mers to ,!( more an) cons!me faster5 It is fo!n)

t'at promotion in)!ce) in-entor( temporaril( increase) cons!mption rates 4it'in t'e

cate"or( e5"5 in cate"ories s!c' as ,acon+ salte) snac$s+ soft )rin$s an) (o"!rt e;'i,ite)


#Mar$etin"% 7/


31/79


primar( )eman) e;pansions as a res!lt of promotion 4'ile ,at'room tiss!e+ coffee+

)eter"ent an) paper to4els e;'i,ite) stoc$pilin" onl(5

Sa+* Pr"&"%"' a,,* a+* %' "&-+*&*'ar$ a'# "&-*%%9* a*7"r%*0

From t'is pro.ect it is fo!n) t'at promotion not onl( increases sales of main pro)!ct ,!t

it also lea) to increase in sales of complementar( cate"ories5 Fo!n) stron" cross

relations'ips ,et4een pro)!cts of t'e promote) pro)!ct cate"or( in)icatin" ,ran)

s!,stit!tion ,e'a-ior5


#Mar$etin"% 72


32/79


T!* L"'7 *r& I&-a ", Pr"&"%"'0

Strate"ies are ,!il)s to reap t'e ,enefits for lon"er perio) of time? same is tr!e in sales

promotion strate"ies5 et !s see impact of promotions effort an) st!)( t'e impact o-er a

lon"er time perio) e5"5 =1 mont's or e-en a fe4 (ears after a sales promotion

campai"n5

T'e res!lt s'o4e) t'at cons!mer promotions for lea)in" ,ran)s of esta,lis'e) pac$a"e)

pro)!cts 'a) no after1effects on t'e ,ran)As sales or repeat ,!(in" lo(alt(5 T'e e;tra

sales of a ,ran) 4'ile promote) came -irt!all( all from t'e ,ran)As e;istin" lon"1term

c!stomer ,ase for 4'ic' t'e e;perience of ,!(in" t'e promote) ,ran) 4as not'in" ne45

It is fo!n) t'at alt'o!"' t'e s'ort term effects of promotions are stron"? t'ese

promotions rarel( e;'i,it lon" term effects5 It is o,ser-e) t'at eac' sales component

"enerall( lac$e) a permanent effect an) t'e effect of promotion 4as s'ort li-e) an)

increase in promotions affecte) cons!mersA stoc$pilin" )ecisions in t'e lon" r!n5 T'e(

fo!n) t'at t'e com,ine) s'ort an) lon"1term elasticit( of promotions 4as 8ero5 T'e

stoc$pilin" in)!ce) ,( a promotion 4as essentiall( offset ,( re)!ce) )eman) in t'e

lon" term5 T'!s increase) sales 4ere more a res!lt of sales ,orro4e) from t'e f!t!re

t'an increase) cons!mption


#Mar$etin"% 7&


33/79


SOT A'a+$% ", FMCG S*"r

Strengths:

>ell1esta,lis'e) )istri,!tion net4or$ e;ten)in" to r!ral areas5

Stron" ,ran)s in t'e FMCG sector5

o4 cost operations5

Weaknesses:

o4 e;port le-els5

Small1scale sector reser-ations limit a,ilit( to in-est in tec'nolo"( an) ac'ie-e

economies of scale5

Se-eral me1tooAA pro)!cts5

Opportunities:

ar"e )omestic mar$et5

E;port potential5

Increasin" income le-els 4ill res!lt in faster re-en!e "ro4t'55

Threats:

Imports5

Ta; an) re"!lator( str!ct!re5

Slo4)o4n in r!ral )eman)5


#Mar$etin"% 77


34/79


D*T* *


35/79


@1. !%! ?ra'# ", S"a- D**r7*' #" $" *

Ba!%'7 "a- R*-"'#*'

!; =2

amm 7ife,!o( 2=


36/79


D**r7*' -"#*r R*-"'#*'

'eel 2=S!rf 7@

*riel 2

Ot'ers 2=

I'*r-r*a%"'0

Form t'e a,o-e res!lt it is clear t'at o!t of 2// c!stomers 7@ are p!rc'asin" t'e same

,ran) of )eter"ent+ 4'ereas all ot'ers are on same le-el5


#Mar$etin"% 7

D**r7*' P"#*r

0

5

10

15

20

2530

35

40

Respondents 19 14 35 18 14

Nirma sup hee! "urf #rie! Othres


37/79


@2. D" $" a+a$ ?$ !* a&* ?ra'# ", S"a- D**r7*'

Par%+ar R*-"'#*'

Yes @


38/79


@;. !%! ,a"r #" $" '"r&a++$ "'%#*r !%+* -r!a%'7 a

-ar%+ar ?ra'# ", S"a- D**r7*'

Fa"r

Ba!%'7

"a- D*.-"#*r

Fra"rance 20 2

!alit( 77 7

Compan( ima"e 2 27

Price &7 20

Pac$a"in" 22

Ot'ers 7 7

I'*r-r*a%"'0

T'e o,.ecti-e ,e'in) t'is 3!estion is to $no4 t'e effect of infl!encin" factors in t'e

p!rc'ase )ecision of t'e soaps an) )eter"ent po4)ers5 It mainl( contains t'e factors

li$e+ 3!alit( 4'ic' pla(ers an important role in t'e p!rc'ase )ecision of t'e soaps an)

)eter"ents ,ot'5 If 4e loo$ at t'e "rap' of t'e soaps an) )eter"ent it s'o4s 3!alit( as t'e


#Mar$etin"% 7

Fa"r a,,*%'7 -r!a* ?*!a9%"r

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


39/79


most infl!encin" factors in t'e p!rc'ase )ecision 4'ile price is also an important for

p!rc'ase )ecision5

@4. D" $" "'%#*r -r"&"%"'a+ !*&* !%+* -r!a%'7 a

-ar%+ar ?ra'# ", S"a- D**r7*'

/: Gen)er is in)epen)ent of promotional sc'eme

2: Gen)er is )epen)ent of promotional sc'eme

>e 4ill !se C'i1S3!are test to test t'e a,o-e '(pot'esis5

T'e o,ser-e) fre3!encies are

Daa0 C"'%'7*'$ Ta?+*0

Respon)ent Male Female Total

Yes &7 2/ 77


40/79


*ss!min" Q /5/@+ 4e 'a-e from c'i1s3!are ta,le+ C=57%/@5/#&

2 = 5 Since t'eo,ser-e) -al!e of c'i1s3!are /5/= is less t'an t'e critical -al!e of c'i s3!are 75= t'e

n!ll '(pot'esis is not re.ecte)5 Concl!sion55

@5. !%! ", !* ,"++"%'7 -r"&"%"'a+ !*&* $" !a9* "&* ar"

" ,ar

Pr"&"%"'a+ !*&* R*-"'#*'

Co!pons 2

price off =

Free,ies &=

scratc' car)s 2&

l!c$( )ra4 0

B!n)lin" 72

e;tra 3t(5 ==

I'*r-r*a%"'0

T'e a,o-e state) 3!estion clearl( states t'e a4areness of promotional sc'emes offere)

in t'e mar$et ,( t'e mar$eters to attract more an) more cons!mers5 T'e res!lts s'o4

t'at price off an) e;tra 3!antit( is t'e t4o main offersHsc'emes 4'ic' cons!mers 'a-e


#Mar$etin"% =/

Fa&%+%ar%$ ", -r"&"%"'a+ 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)


41/79


came across at t'e time of p!rc'ase5 It 4ill 'elp t'e man!fact!rers an) mar$eters too

'o4 too la!nc' t'eir ne4 pro)!cts in t'e mar$et 4it' 4'ic' sc'emes5

@


42/79


t'e -ie4er s'ip5 On t'e secon) place it s'o4s ne4s papers as t'e me)ia to promote t'e

pro)!ct in t'e mar$et5

@=. I !*r* a'$ *8%%'7 !*&* "' !* S"a- D**r7*' $" ar*

rr*'+$ %'7

Par%+ar R*-"'#*'

Yes @


43/79


sc'emes 4'ic' contin!e in t'e mar$et it ma( ,e ,eca!se of t'e present stoc$ of t'e

pro)!ct at t'eir place5

@. I, $* -+*a* -*%,$

Par%+ar R*-"'#*'

72HOt'erFree 7

Disco!nt &&


44/79


4'ic' are more )eman)e) in t'e mar$et5 T'e res!lt s'o4s t'at 22 or &2 or ot'er free

sc'emes are more )eman)e) an) more a4are sc'emes in t'e mar$et5 So man!fact!rers

ma( "o for t'e same at t'e time of la!nc'in" t'eir pro)!ct5

@>. I, $" 7* a' ara%9* -r"&"%"'a+ ",,*r %' !* -r"# "!*r !*'

", $"r !"%* %++ $" %! "9*r

Par%+ar R*-"'#*'

Yes 7


45/79


It s'o4s t'e le-el of ,ran) lo(alt( amon" t'e cons!mers5 T'e res!lt clearl( s'o4s t'at

o!t of 2//+ 7 people are rea)( to s4itc' o-er to anot'er ,ran) if t'e( fin) ,etter

promotional sc'emes 4'ic' s!its t'eir ,!)"et means more 3(t less cost 3!alit(5

Com,ination of all t'ese sc'emes 4ill r!n ,etter in t'e mar$et5

@13. G%9* r*a"' ,"r !* a&*

Par%+ar R*-"'#*'

Cost3t( 2

!alit( 2

Satisfaction &

Bran) lo(al @

More ,enefitH,!)"et &&

Season c'an"e &


46/79


I'*r-r*a%"'0

*,o-e 3!estion it "i-es specific reasons for s4itc'in" too ot'er pro)!cts5 It s'o4s t'at

e;tra 3!antit( 4it' less or same price+ more satisfaction+ 3!alit( an) ot'er factors

infl!ence cons!mers to s4itc' o-er too ot'er ,ran)s5

@11. G%9* 77*%"' a?" ,r%% -r"&"%"'a+ !*&*

T'is s'o4 t'e cons!mersA f!t!re e;pectations from t'e 4'et'er compan( to come 4it'

ne4 sc'emes or contin!e 4it' present one5 It s'o4s cons!mers )eman) 4'ic' t'e

man!fact!rers 'a-e to meet5


#Mar$etin"% =

R*a"'

0

10

20

30

40

Respondents 1$ 1 2 5 22 2 3$

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

&enefit6bud

"eason

,han'eNo ans*er


47/79



#Mar$etin"% =


48/79


D*T* *


49/79


@1. S%'* !" +"'7 ar* $" %' !% ?%'*

Par%+ar R*-"'#*'

21@ Years &=

@12/ Years &

More t'an 2/ (ears =0

0

10

20

30

40

50

$0

"eries1 24 2 49

185 %ears 5810 %ears 7ore than 10 years

I'*r-r*a%"'0

T'is 3!estion "i-es i)ea a,o!t t'e ,enefit to t'e retailers 4'o are on t'e mar$et from

lon" perio) of time an) t'e ,enefits t'e( are "ettin" more as compare to ot'ers5 It also

s'o4s t'eir e;perience in t'e fiel) an) t'e ser-ices t'e( are pro-i)in" too t'eir ne4 an)

re"!lar c!stomers5 It also "i-es i)ea a,o!t t'e ,enefits t'e( are "ainin" for 4'olesalers

an) )irect from t'e compan(5


#Mar$etin"% =0


50/79


@2. Na&* !* S"a- D**r7*' (C"&-a'$) $" " ,"r.

C"&-a'%* R*-"'#*'


51/79


@;. Ra' !* ,"++"%'7 ,a"r !a "&*r +"" ,"r %' !* -r!a*

", S"a- D**r7*'. (Ra' ,r"& 1 "


52/79


an) price oriente)5 On t'e ot'er 'an) people are also conscio!s a,o!t t'e compan(

ima"e5 Beca!se sometimes t'e cons!mer remem,er t'at name of t'e pro)!ct ,( t'e

compan(

name an) also from t'e past performance of t'at compan(5 Fra"rance an) pac$a"in" are

not infl!encin" factor as per t'e respon)ents5

Fa"r 1 2 3 4 5 6

Fra7ra'* 22 1 41 21 3

@a+%$ =7 34 1$ $ 1 0

C"&-a'$I&a7* 27 2 & & 22

Pr%* & 28 14 9 $ 1$

Paa7%'7 5 2 33 43 11

O!*r / 0 0 5 32 $3


#Mar$etin"% @&

D**r7*'

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 $


53/79


I'*r-r*a%"' 0

It "i-es an i)ea a,o!t t'e priorit( t'e infl!encin" factors too t'e cons!mers an) also t'e

4ei"'t a"e of t'at factor o-er ot'er factors5 In t'e a,o-e res!lt people are more 3!alit(

an) price oriente)5 On t'e ot'er 'an) people are also conscio!s a,o!t t'e compan(ima"e5

Beca!se sometimes t'e cons!mer remem,ers t'at name of t'e pro)!ct ,( t'e compan(

name an) also from t'e past performance of t'at compan(5 Fra"rance an) pac$a"in" are

also pla( important role for p!rc'asin" )eter"ent po4)er5

@4. D" $" 77* "&*r " -r!a* a *ra%' ?ra'#

Par%+ar R*-"'#*'

Yes 77


54/79


T'is co!l) ,e a -er( 'elp 3!estion to !n)erstan) t'e role of retailers in t'e p!rc'ase

)ecision5 In a,o-e "rap' K of retailer are not s!""est to p!rc'ase partic!lar ,ran)

,eca!se of personal relation or t'at c!stomer are ,ran) lo(al 4'ile 77K of t'e retailer

are s!""estin" t'e cons!mers to ,!( partic!lar ,ran)5 T'ere co!l) ,e man( reasons li$e+

e;tra mar"in+ relations 4it' cons!mers an) 3!alit( of t'e pro)!cts 4'ic' retailer ma(

"et t'e ,enefit of t'e same5

@5. I, Y* !$

Par%+ar R*-"'#*'

i"' mar"in 0

!alit( 2Relations'ip


55/79


,(e partic!lar ,ran)5 For t'e compan( it ma( ,e 'elpf!l to tar"et s!c' retailers to sell

t'eir pro)!ct in t'e mar$et easil(5

@


56/79


@=. I, $* !%! !*&*

Pr"&"%"'a+

S!*&*

R*-"'#*'

Co!pons 22

Price Off &

Free,ies 7@

Scratc' Car)s &

!c$( Dra4s 20

B!n)lin" Offer @

E;tra !antit( 0

I'*r-r*a%"'0


#Mar$etin"% @

!%! !*&*

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


57/79


T'e a,o-e state) res!lts s'o4 t'e )eman) of -ario!s t(pes of promotional sc'emes in

t'e mar$et ,( t'e cons!mers5 *lmost all t(pes of sc'emes are ,ein" )eman)e) ,( t'e

cons!mers in t'e mar$et ,!t t'ere are t'ree ma.or sc'emes 4'ic' cons!mers "enerall(

loo$ at t'e time of p!rc'ase or ,efore t'at5 Price off+ pro)!ct ,!n)lin" an) e;tra 3!antit(

are more )eman)e) ,( t'e cons!mers o-er ot'ers sc'emes5

@. !%! Tra#* Pr"&"%"' #" 9ar%" "&-a'%* ",,*r

NIRMAPr"&"%"' R*-"'#*'

E;tra Mar"in =E;tra Units 7=

cre)it facilit( @@

Gifts &=

Promo5 E;p5

I'*r-r*a%"'0


#Mar$etin"% @

Tra#* Pr"&"%"' ?$ N%r&a

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)


58/79


From t'e a,o-e "rap' s'o4s t'e tra)e promotions offere) ,( t'e


59/79


HULPr"&"%"' R*-"'#*'

E;tra Mar"in =

E;tra Units 7=

Cre)it facilit( @

Gifts &@Promo5 E;p5 &&

I'*r-r*a%"'0

T'e a)-anta"e of o-er xtra nits .redit fa,i!ity ;ifts /romo) >xp)


60/79


P GPr"&"%"' R*-"'#*'

E;tra Mar"in =/

E;tra Units 77

Cre)it facilit( @@Gifts &/

Promo5 E;p5 2&

I'*r-r*a%"'0

PG is also a ,i" pla(er in t'e FMCG mar$et5 It is also pro-i)in" all t'e facilities 4'ic'

ot'ers are pro-i)in" to retailers5


#Mar$etin"% /

Tra#* Pr"&"%"' ?$ PG

0

10

20

30

40

50

$0

"eries1 40 33 55 20 12

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


61/79


GODRE6Pr"&"%"' R*-"'#*'

E;tra Mar"in =

E;tra Units 7&

Cre)it facilit( @

Gifts 20

Promo5 E;p5 2

I'*r-r*a%"'0

Go)re. is a ,i" pla(er in t'e FMCG mar$et5 It is also pro-i)in" all t'e facilities 4'ic'

ot'ers are pro-i)in" to retailers5 B!t it is lac$in" in ,earin" e;penses 4'ic' U is

pro-i)in" to ma;im!m n!m,er of retailers5


#Mar$etin"% 2

Tra#* Pr"&"%"' ?$ G"#r*/

0

10

20

30

40

50

$0

"eries1 4$ 32 5 19 18



62/79


OTHERSPr"&"%"' R*-"'#*'

E;tra Mar"in 7/

E;tra Units 2

Cre)it facilit( 7

Gifts 2@

Promo5 E;p5

I'*r-r*a%"'0

Ot'ers incl!)e local pla(ers+ as 4ell as 4e esta,lis'e) pla(ers li$e+ 4ipro ,!t t'eir

pro)!cts are not in )eman) li$e ot'er pla(ers ,!t still t'e( are pro-i)in" all t'e facilities

to retailers to attract to4ar)s stoc$in" t'eir pro)!cts5


#Mar$etin"% &

Tra#* Pr"&"%"' ?$ O!*r

0

5

10

15

20

25

30

35

40

"eries1 30 18 38 15



63/79


H$-"!*% *%'7

/: Effect of tra)e promotions for all fo!r ,ran)s is similar5

2: Effect of tra)e promotions for all fo!r ,ran)s is not similar5

GODREJ allis test+ 1&5&02%7#nn

T

2%n#n

2&6

=

2. .

&

. =+

+=

=5For Q /5/@ an)

)f Q =12Q7+ t'e critical -al!e Q 52= #from ta,le%5

C"'+%"'0

ere 6 Q 1&5&0 is less t'an t'e critical -al!e of c'i1s3!are Q 52=+ so 4e )o not re.ectt'e n!ll '(pot'esis5 Concl!sion


#Mar$etin"% 7


64/79


@> G%9* r*a"' ,"r '" "%'7 a -ar%+ar ?ra'#.

Retailer stoc$s all t(pes of soap an) )eter"ent ,eca!se of competition5

@13 A'$ S77*%"'.

Retailer s!""este) t'at pac$a"in" s'o!l) ,e f!rt'er impro-e) an) !se) as promotional

tool+ to enco!ra"e sales )!rin" certain perio)s t'e compan( s'o!l) pro-i)e price off or

e;tra 3!antit( ,eca!se t'at infl!ences )irectl( to t'e cons!mer5


#Mar$etin"% =


65/79


F%'#%'7 ", !* r*-"r0

Sales Promotion+ a s'ort1term in)!cement+ offere) to a cons!mer or tra)e 'as "aine)moment!m as a promotional tool 4orl) o-er5 It represents nearl( t'ree fo!rt' of t'e

mar$etin" ,!)"et at most cons!mer pro)!ct companies5 Sales promotions can en'ance

cons!mersA self1perception of ,ein" 9smart or a 9"oo) s'opper

FMCG are s!c' a mar$et 4'ere t'e le-el of lo(alt( remains lo4 an) t'is is

,eca!se of man( reasons5

!alit( as t'e most infl!encin" factors in t'e p!rc'ase )ecision 4'ile price is

also an important for p!rc'ase )ecision5

Sc'emes al4a(s attract more an) more cons!mers to4ar)s partic!lar ,ran)5

Sim!ltaneo!sl( it "i-es i)ea a,o!t t'e factors 4'ic' cons!mers loo$ most in t'e

pro)!ct ,efore t'e( ma$e final )ecision

Price off an) e;tra 3!antit( is t'e t4o main offersHsc'emes 4'ic' cons!mers

'a-e came across at t'e time of p!rc'ase

T as t'e ,est me)ia to mar$et t'e pro)!ct 4'ic' 4ill co-er ma.orit( of t'e

-ie4er s'ip5 On t'e secon) place it s'o4s ne4s papers as t'e me)ia to promote

t'e pro)!ct in t'e mar$et

People are not m!c' a4are of t'e sc'emes 4'ic' contin!e in t'e mar$et it ma(

,e ,eca!se of t'e present stoc$ of t'e pro)!ct at t'eir place5

22 or &2 or ot'er free sc'emes are more )eman)e) an) more a4are sc'emes

in t'e mar$et5

People are rea)( to s4itc' o-er to anot'er ,ran) if t'e( fin) ,etter promotional

sc'emes 4'ic' s!its t'eir ,!)"et means more 3!antit( less cost 3!alit(5

E;tra 3!antit( 4it' less or same price+ more satisfaction+ 3!alit( an) ot'er

factors infl!ence cons!mers to s4itc' o-er too ot'er ,ran)s5

Retailer stoc$s all t(pes of soap an) )eter"ent ,eca!se of competition5

People are more 3!alit( an) price oriente)5


#Mar$etin"% @


66/79


Cons!mer remem,er t'at name of t'e pro)!ct ,( t'e compan( name an) also

from t'e past performance of t'at compan(

Cons!mer remem,ers t'at name of t'e pro)!ct ,( t'e compan( name an) also

from t'e past performance of t'at compan(

Retailers are not s!""est to p!rc'ase partic!lar ,ran) ,eca!se of personal

relation or t'at c!stomer are ,ran) lo(al

Mar"in an) of ,etter relations 4it' cons!mers an) too pro-i)e 3!alit( pro)!ct to

cons!mers t'e( s!""est cons!mers too ,(e partic!lar ,ran)5

C!stomers are loo$in" for an( t(pe of t'e promotions on t'e pro)!ct ,efore t'em

"oin" to p!rc'ase5

Price off+ pro)!ct ,!n)lin" an) e;tra 3!antit( are more )eman)e) ,( t'e

cons!mers o-er ot'ers sc'emes5


67/79


R*"&&*'#a%"'0

T'e fin)in"s of t'e empirical st!)( in)icate t'at !nless t'e ,ran) to ,e promote) is in

t'e consi)eration set of t'e cons!mer+ sales promotion ,( itself is !nli$el( to 'a-e an(

ma.or impact5 Clearl( t'is s'o4s t'at mana"ers nee) to in-est into ,ran) ,!il)in"

e;ercise so t'at 'isH'er ,ran) appears in t'e consi)eration set of t'e tar"et cons!mers5

Onl( after t'is s'o!l) 'e spen) time+ mone( an) ener"( on sales promotion acti-ities5

Sales promotion s'o!l) not ,e !se) in isolation ,!t nee) to ,e inte"rate) 4it' ot'er

tools an) in line 4it' t'e o-erall positionin" of t'e ,ran)5 *lso t'e importance of t'e

role of mass me)ia came o!t clearl( in t'e st!)(5

Companies nee) to create s!fficient a4areness a,o!t sales promotion sc'emes t'ro!"'

mass me)ia in or)er to create a4areness5 FMCG pro)!cts are lo4 in-ol-ement pro)!cts

c'aracteri8e) ,( s4itc'in" ,e'a-ior5 *lso t'e person "oin" to t'e s'op for t'e p!rc'ase

of soap is t'e final )ecision ma$er of t'e ,ran)5 ence it is essential t'at companies

nee) to )esi"n attracti-e+ stri$in"+ -isi,le POPs for sc'eme anno!ncements5

>it' respect to nat!re of sc'eme+ t'e fin)in" s!""este) t'at premi!m #free "ift% 4as

pop!lar 4it' companies5 >'ile ,ot' retailers an) cons!mers preferre) price offs5 So it is

necessar( t'at t'e percei-e) -al!e of a free "ift 'as to ,e appealin" an) 'i"' for t'e

tar"et cons!mers5 Repetiti-e !se of t'e same premi!m for a prolon"e) perio) ma( 'a-e

ne"ati-e effect on t'e lo(al c!stomers5 >'en t'e compan( is "i-in" its o4n pro)!ct free

as premi!m+ it nee)s to ens!re t'e 3!alit( of t'e pro)!ct from it as it is li$el( to

.eopar)i8e t'e ima"e of ,ot' its pro)!cts5

T'e fin)in"s e;'i,ite) t'at ,ot' t'e retailers an) cons!mers percei-e) t'at salespromotion acti-ities carrie) o!t ,( t'e companies for increasin" sales in s'ort term an)

clearin" e;cess stoc$s5 >'at it implies is t'at companies nee) to !se sales promotion


#Mar$etin"%


68/79


s(ner"isticall( an) comm!nicate so t'at t'e( pro-i)e -al!e to t'e tar"et a!)ience an)

en'ance ,ran) 3!alit(Hima"e perceptions5

Companies nee) to s(stemati8e information flo4 re"ar)in" sales promotion acti-ities

partic!larl( at )ealer an) retailer le-el5 Ens!rin" proper information flo4 an) )e-isin"

c'ec$s an) meas!res to re)!ce misappropriations an) implementation flo4s s'o!l) ,e

consi)ere) critical aspects for t'e s!ccess of sales promotion acti-ities ,( t'e

companies5 *s retailin" is fra"mente)+ )irect reac' ,( companies is ne;t to impossi,le5

T'ro!"' )ealers an) proper fee),ac$ mec'anism+ companies $eep in to!c' 4it' t'e

mar$et5

From t'e st!)( it 4as fo!n) t'at smaller retailers felt ne"lecte) an) not ent'!se) to

implement t'e sc'emes+ partic!larl( 4'en a))itional 'an)lin"+ stoc$in"+ acco!ntin" 4as

re3!ire) on t'e part of a retailer 4it'o!t compensator( mar"ins5 It can ,e seen t'at t'e

retailer an) cons!mer perceptions matc'e) 4it' respect to preferences of sc'emes+

!n)erl(in" moti-ations an) role of mass me)ia5 T'is implies t'at t'e retailer 4o!l) ,e a

ric' so!rce of information a,o!t t'e cons!mer an) t'e li$el( response to sales

promotion acti-ities5

De-elopin" a s(stem to tap s!c' responses from time to time ,ot' at retailer an)

cons!mer le-el 4o!l) ,e 'elpf!l for plannin" f!t!re sales promotion acti-ities5 In or)er

to ,!il) tr!st an) commitment companies s'o!l) tap preferences+ perceptions of retailers

as 4ell as cons!mers5


#Mar$etin"%


69/79


L%&%a%"' ", !* #$

>e consi)ere) *'me)a,a) re"ion onl( ,eca!se of limite) time )!ration5

D!e to t'is+ o!r sample si8e is onl( 2//+ 4'ic' is not -er( lar"e5

*ll t'e respon)ents co!l) not fill t'eir 3!estionnaire on t'eir o4n )!e to

lan"!a"e pro,lem an) also pro,lem of time an) lac$ of positi-e ,e'a-ior5

Respon)ent ma( "i-e ,iase) ans4er )!e to some lac$ of information a,o!t ot'er

,ran)s5

Fin)in"s of t'e st!)( are ,ase) on t'e ass!mption t'at t'e respon)ents 'a-e

"i-en correct information5


#Mar$etin"% 0


70/79


E&*r7%'7 Tr*'#

So far asFMCG mar$et is concern t'ere is ne4 tren) is emer"in" $no4n as.oint sales

promotion5 *ct!all( it is ol) concept ,!t it 4as more pre-ailin" in )!ra,le pro)!cts no4

it is comin" intro non )!ra,le "oo)s also5 >'en an( sales promotion sc'eme eit'er fortra)e or cons!mer is anno!nce) ,( more t'an one compan( an) Hor more t'an one ,ran)

of t'e same compan(+ it is referre) as .oint sales promotion or 'ori8ontal co1operati-e

sales promotion or cross promotion or !m,rella sales promotion5

C+a%,%a%"' ", /"%' a+* -r"&"%"'0

Use complementaril( )!e to nat!ral !se


71/79


C"'+%"' ", !* Sr9*$

T'e st!)( reflects t'at t'e !se of sales promotion !n)enia,l( 'as increase) o-er t'e

(ears in In)ia5 F!t!re 'ol)s lot of promise for s!c' sc'emes across 4i)er ran"e of

pro)!ct1mar$ets5 Sales Promotion 'as cease) to ,e ma.or )ifferentiator at least in t'e

metros+ 4it' almost all companies offerin" similar free,ies an) "ifts5 *s a res!lt no4

mar$eters 'a-e to fin) o!t some inno-ati-e 4a(s of sales promotion to )ifferentiate

from competitors5 C!rrentl( Price off an) B(e one "et one free offers are -er( effecti-e

to attract t'e cons!mers to4ar)s t'e pro)!cts5

>e 'a-e note) t'at t'ese $in) of promotional tools are !sef!l for s'ort term increase in

sales an) to in)!ce first trial5 T'ese t(pes of promotional sc'emes s'o!l) ,e consistent

an) c'an"e) from time to time )epen)in" !pon season an) competitorAs sc'emes5 >it'

t'e Increasin" n!m,er of s!permar$et+ t'e ,ran)e) pac$a"e) "oo)s 4or$ as silent sales

person5 So in s!c' stores+ sales promotion pla(s a more effecti-e role in stim!latin"

cons!mersA )eman)s5

One of t'e -er( important facts 4e came to $no4 from t'is pro.ect is t'at sale of "oo)s

4'ic' contain lar"e 3!antit( an) 'a-in" ,i" pac$a"in" e5"5 )eter"ent are sta"natin"

,eca!se cons!mer prefer to ,!( small pac$ "oo)s+ t'e reasons are: small pac$ "oo)s

re)!ce ris$ of ,a) 3!alit(+ It 'a) lo4 cost or sa( price+ an) last ,!t important factor i5e5

mentalit( to p!rc'ase .!st to tr( first5 Sales of small pac$ "oo)s are 3!ite 'i"'+ ,!t from

t'e compan(As point of -ie4 small pac$ "oo)s is less profita,le compare to lar"e pac$

"oo)s5


#Mar$etin"% 2


72/79


So 'ere mar$eter tries to increase sales of lar"e pac$ "oo)s ,( !sin" sales promotion

tactics li$e price off an) percenta"e e;tra5

B%?+%"7ra-!$

P'ilip 6otler+ #%9Mar$etin" Mana"ement+ 22t'e)ition+ Pearson e)!cation *sia

P!,lication5

C5R56ot'ari+ #%9Researc' Met'o)olo"( met'o)s Tec'ni3!es+


73/79


A''*8r*


#Mar$etin"% 7


74/79


@*%"''a%r*

C"&*r

>e are st!)ents of MB* st!)(in" in SIBM *MED*B*D an) carr(in" o!t a s!r-e( for o!r

aca)emic pro.ect to9Role of sales promotions in FMCG5 So please fill t'is 3!estionnaire5

25 >'ic' ,ran) of Soap H Deter"ent )o (o! !se

&5 Do (o! al4a(s ,!( t'e same ,ran) of Soap H Deter"ent

Partic!lars Respon)ent

Yes

'ic' factors )o (o! normall( consi)er 4'ile p!rc'asin" a partic!lar ,ran) of Soap

H Deter"ents

Factors

Bat'in"

soap Det5po4)er

Fra"rance

!alit(

Compan( ima"e

Price

Pac$a"in"

Ot'ers

=5 Do (o! consi)er promotional sc'emes 4'ile p!rc'asin" a partic!lar ,ran) of Soap H

Deter"ent Partic!lars Respon)ent

Yes

'ic' of t'e follo4in" promotional sc'emes (o! 'a-e come across so far

Promotional

sc'emes Respon)ent


#Mar$etin"% =

Deter"ent po4)er Respon)ent

'eel

S!rf

*riel

Ot'ers

Bat'in" soaps Respon)ent

!;

amam

ife,!o(


75/79


Co!pons

price off

Free,ies

scratc' car)s

l!c$( )ra4

B!n)lin"

e;tra 3t(5

5 >'ic' me)i!m )o (o! feel is s!ita,le to promote t'e -ario!s promotional sc'emes

So!rce Respon)ent

Ra)io

T


76/79


!alit(

Satisfaction

Bran) lo(al

More

,enefitH,!)"et

Season c'an"e


77/79


Retailers

>e are st!)ents of MB* st!)(in" in SIBM *MED*B*D an) carr(in" o!t a s!r-e( for o!r

aca)emic pro.ect9Role of sales promotions in FMCG5 So please fill t'is 3!estionnaire5 Yo!ri)entit( 4o!l) not ,e re-eale) an) information 4ill onl( ,e !se) for aca)emic p!rpose5

25 Since 'o4 lon" are (o! in t'is ,!siness

Partic!lars Respon)ent

21@ Years

@12/ Years

More t'an 2/ (ears

&5


78/79


5 Do c!stomers loo$ for -ario!s sc'emes in t'e pro)!ct

Partic!la

r

Respon)ent

Yes


79/79


OTERS

Promotions Respon)ent

E;tra Mar"in

E;tra Units

Cre)it facilit(

Gifts

Promo5 E;p5

0 Gi-e reasons for not stoc$in" a partic!lar ,ran)5

2/ *n( S!""estions5

gp on fmcg

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