RESEARCH PROJECT REPORT(MBA - 043)

ON

“A study of sales promotion and its effectiveness- a case study of Vishal megamart”

Submitted in Partial Fulfillment of Master of Business Administration (MBA)

Programme : 2009 -11of

GautamBudhha Technical University, Lucknow

Under the Supervision of SUBMITTED BY(Mr. Arbind Kumar Sinha) ANUP SINGHMBA Department ROLL NO:0901470008S.R.M.S.C.E.T., Bareilly

Faculty of Management ScienceShri Ram MurtiSmarak College of Engineering & Technology, Bareilly

(College Code – 014)

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Shri Ram MurtiSmarak College of Engineering & Technology, Bareilly (U.P.)

Faculty of Management Science

Certificate

This is to certify that Mr.ANUP SINGH, a student of MBA IV Semester has completed his

Research Project Report titled “A study of sales promotion and its effectiveness- a case study

of Vishal Mega Mart” assigned by MBA Department and under my supervision.

It is further certified that He has personally prepared this report that is the result of his personal

survey/observation. It is of the standard expected to MBA student and hence recommended for

evaluation.

Supervisor

(A.K. Sinha)

Above statement is endorsed.(Anant Kumar Srivastava)

DECLARATION

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I, Rakesh Kumar hereby declare that I have carried out project report on Topic “A study

of sales promotion & its effectiveness-a case study of Vishal Mega Mart”in Bareilly.

I further declare that project work is my original work and no part of this report has been

published or submitted to anybody or university for award of any other degree or

Diploma.

ANUP SINGH

MBA 4thsem.

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TABLE OF CONTENT

PAGE NO.

CHAPTER-1 Introduction of the topic 1-14

1.1 Introduction 1

1.2 Company Profile: 2

1.2.1 Introduction 2

1.2.2: vision & mision 5

1 .2.3: Sales promotion technique adopted by Vishal Mega Mart 6

1.3: Details about the topic 9-12

1.3.1 Definition of Sales promotion 9

1.3.2 Sales promotion strategies 9

1.3.3 Types of sales promotion 10

1.3.4 Importance of sales promotion 11

1.3.5 Sales promotion techniques 11

1.4 Research Question 13

1.5 Objectives of research 14

CHAPTER-2 Literature Review 15-17

CHAPTER-3 Research Design 18-19

3.1 Research methodology 18

3.2 Research design 18

3.3 Method of data collection 18

4

CHAPTER-4 Data Analysis and Interpretation 20-33

CHAPTER-5 34-36

5.1 findings 34

5.2 Suggestions 35

5.3 Limitation 36

5.4 Conclusion 37

Bibliography 38

Annexture 39

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LIST OF TABLE

PAGE NO.

Table No. 1: Data showing uses of promotional techniques by

vishal mega mart. 20

Table No 2: Data showing which type of sales promotional techniques

is used by vishal mega mart. 21

Table No 3: Data showing that which techniques is most attractive to

the customer. 22

Table No 4: Data showing that employee really rely on these techniques or not. 23

Table No 5: Data showing that for how long one techniques is used by

vishal mega mart. 24

Table No 6: Data showing that these techniques really increases sales of

vishal mega mart or not. 25

Table No 7: Data showing that sales promotional techniques really help in

introducing a new product or not. 26

Table No 8:Data showing that from how many days customer is visiting in

vishal mega mart. 27

Table No 9:Data showing the satisfaction level of customer for the product

and customer handling offered by vishal mega mart. 28

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Table No 10: Data showing the satisfaction level of customer with the

discount provided by vishal mega mart. 29

Table No 11: Data showing the satisfaction level of customer with the

sales promotion activity by vishal mega mart. 30

Table No 12: Data showing the offer which are most preferred by the customer. 32

Table No 13: Data showing the customer loyalty that they will continue visiting to

vishal mega mart in future or not. 33

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LIST OF FIGURE

Figure No.1:Data showing that from how many days customer is visiting in

vishal mega mart. 20

Figure No 2: Data showing which type of sales promotional techniques

is used by vishal mega mart. 21

Figure No. 3: Data showing that which techniques is most attractivee to the

customer. 22

Figure No. 4: Data showing that employee really rely on these techniques or not. 23

Figure No.5: Data showing that for how long one techniques is used by

vishal mega mart. 24

Figure No.6: Data showing that these techniques really increases sales of

vishal mega mart or not. 25

Figure No.7: Data showing that sales promotional techniques really help in

introducing a new product or not. 26

Figure No.8:Data showing that from how many days customer is

visiting in vishal mega mart 27

FigureNo.9:Data showing the satisfaction level of customer for the

product and customer handling offered by vishal mega mart. 28

Figure No. 10: Data showing the satisfaction level of customer with

the discount provided by vishal mega mart. 29

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Figure No. 11: Data showing the satisfaction level of customer

with the sales promotion activity by vishal mega mart. 31

Figure No. 12: Data showing the offer which are most preferred by the customer. 32

Figure No.13: Data showing the customer loyalty that they will

continue visiting to vishal mega mart in future or not. 33

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Chapter-1

Introduction of the topic

1.1 Introduction

This research project is related to the Retail Sector and is conducted to know the

promotional strategies of the companies for the Retail Sector products. Vishal Mega Mart

is one of the most prominent names of this industry. It is well known that this company

has largest shares in the market.

In this research report Section 1 is related to the Introduction of the topic in this

sections there are various subsection. These subsections also contain the more described

forms of the introduction. In other subsections as in 1.3, 1.4, 1.5, and further details of the

RETAIL SECTOR sectors and details of the VISHAL MEGAMART are given. In the

next section 2.1 Summary of the Literature review has been done after that in section 3.1

details of the research methodology has been given. In Section 4.1 Analysis of the survey

and its interpretation has been given. In the last section Findings Limitations and

Conclusion of the research has been given.

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1.2: Profile of Vishal mega mart.

1.2.1 Introduction

About the Organization

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all

price ranges. The showrooms have over 7000 products range which fulfills most of the

household needs, and can be catered to under one roof. It is covering about 1282000 sq.

ft. in 18 states across India. Each store gives international quality goods and prices hard

to match. The cost benefits that derived from the large central purchase of goods and

services are passed on to the consumer

VISHAL HISTORY AND ACHIEVEMENTS

What started as a humble one store enterprise in 1986 in Kolkata(Erstwhile, Calcutta)

is today a conglomerate encompassing 51 showrooms in 39 cities. India’s first hyper-

market was also opened for the Indian consumer by Vishal. Situated in the national

capital Delhi this store boasts of the single largest collection of goods and commodities

sold less than one roof in India. The group had a turnover of Rs. 1463.12 million for

fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Agarwal . The

group had turnover of 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal

2007.

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The group’s prime focus is on retailing. The Vishal stores offer affordable family

fashion at prices to suit every pocket. The group’s philosophy is integration and towards

this end has initiated backward integration in the field of high fashion by setting up a

state of the art manufacturing facility to support its retail endeavors.

CORPORATE PROFILE

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700

imported machines that have a capacity to manufacturer 150000 pieces a month. The

factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives

employment to more than a 1000 people. These people work in

Ancillaries that supply finished goods to the company.

Vishal’s 10 ware houses cater to 51 showrooms in 39 cities. It is covering

about

1282000 sq. ft. in 18 states across India. Our loyalty programmes gives the Indian

consumer of being rewarded every time he/she makes a purchase at any of its

stores anywhere in the country. Consumers can make purchases at any store and

accumulate points at a central level. These points are redeemable at any of our stores.

One can accumulate points even when a purchase is made while traveling and can redeem

points at any store. So no matter where you are in India you can partake the our

loyalty programme.

Some of the key features of retailing include:

1. Selling directly to customers without having any intermediaries

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2. Selling in smaller units / quantities, breaking the bulk

3. Present in neighborhood or in the location which is quite convenient to the customers.

4. Very high in numbers

5. Recognized by their service levels

6. Fitting any size and or location

It is assumed that due to the entry of a number of retail outlets in the urban and semi

urban areas, the mindset of the existing customers have undergone drastic changes.

Besides it is also reported that the traditional retailing such an age old Grocery shops face

direct competition with the organized retailing sector. In some parts of the country, it is

reported that the traditional retails are resisting the entry of organized shopping malls. For

instance the traditional retails of Bhubaneswar with the active support of the consumers

at large didn’t allow reliance Fresh to start outlet initially.

Recent Trends

1. Retailing in India is witnessing a huge revamping exercise as can be seen in the

graph

2. India is rated the fifth most attractive emerging retail market: a potential goldmine.

3. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)

makes up 3 percent or US$ 6.4 billion

4. As per a report by KPMG the annual growth of department stores is estimated at 24%

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5. Ranked second in a Global Retail Development Index of 30 developing countries

drawn up by AT Kearney.

1.2.2: MISSION STATEMENT

We shall deliver everything, everywhere, every time for every Indian Consumer in the most profitable manner.

VISION STATEMANT:

We share the vision and belief that our customers and stakeholders shall be served only

by creating and executing future scenarios in the consumption space leading to economic

development.

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1.2.3: Sales promotion technique adopted by Vishal Mega Mart

1. Price-off offer:

Under this offer, products are sold at a price lower than the original price. This type of

scheme is designed to boost up sales in off-season and sometimes while introducing a

new product in the market.

Example:

· Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/T shirt).

· Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/T-shirt).

· Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/T-shirt).

· Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP:

Rs. 299/T-shirt).

· Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/T-shirt).

· Buy 1 woman top and get Rs. 100/- off on the bottoms.

2. Discounts:

Under this, the products are sold at a discounted price with percentage discounts on the

original price. This type of scheme is designed to boost up sales in off-season.

Example:

· 30% off on all the men formal shirts and trousers.

· 30 % off on all the women formals and casual outfits.

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3. End of season sale:

End of Season sale or stock Clearance sale is been conducted at vishal mega mart Factory

Outlets. They are offering surprising discounts as if you buy 2 any items of garments and

you will get 3 more with your choice absolutely free. These offers are given as

celebration of New Year.

4. Seasonal offers:

Vishal mega mart provides the customers with various discounts and price-off offers at

the stores and factory outlets on the seasons like winter and monsoon. This type of

scheme is designed to boost up sales in these seasons.

5. Festival offers:

Vishal mega mart have come up with festive offer during Diwali and Christmas by giving

away gifts for purchases that are made at the store for cheaper price. If you shop for Rs.

4500 you get a Strolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs. 2400

and above you get a lemon set, which is said to be imported, worth Rs. 649 for Rs. 99

only.

6. New Year offers:

Vishal mega mart offers gifts for purchases that are make at the store during the New

Year for cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set

for Rs. 249 only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package

for a couple on an International cruise.

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7. Discount Coupons:

Vishal mega mart offers 25% discount on its large range of apparels. The coupon is valid

for limited period. This coupon is valid for 25% off on any product purchased from

www.vishalmegamart.com

8. Gift Vouchers:

Vishal mega mart Fresh Fashion offers many vouchers ranging different denominations

like Rs100, Rs.250, Rs.1000 and Rs.2000. These vouchers are exchangeable with the

products by the customers at all the vishal mega mart Showrooms in India. The vouchers

are a better option rather than gifts for the employees and customers as they are not

bound for a particular thing to accept. They are given free choice for choosing better gifts

for themselves by using vouchers. Vishal mega mart vouchers offer a wide range of

products and services for shopping. It has got coverage in 15 cities including 22 outlets. It

thus offers good gift vouchers to its customers, clients and sales force also to keep good

relationships amongst each other. The most famous Gift Vouchers by Pantaloons Fresh

Fashion are Trendsetters and Connoisseurs Choice.

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1.3: Details about the topic

1.3.1 Definition of Sales promotion

Sales promotions are short-term incentives to encourage the purchase or sale of a product

or service. Sales promotion includes several communications activities that attempt to

provided value or incentives to consumers, wholesalers, retailers, or other organizational

customers to stimulate immediate sales. These efforts can attempt to stimulate product

interest, trial, or purchase. Examples of devices used in sales promotion include coupons,

samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes

1.3.2 Sales Promotion Strategies

Sales promotion is a process of increasing sales volume of a defined product in a defined

territory in a defined time period to meet short term sales objective. Sales promotion

plays a vital role in marketing campaigns, it consists of a collection of incentives, tools

mostly short term, designed to stimulate quicker or greater purchase of particular

products or services by consumers or trade.

Sales promotion tools offer three distinctive benefits:

(a) Communication: They gain attention and may lead the consumer to the product.

(b) Incentives : They incorporate some concessions, inducement, or contribution

that gives value to the consumers.

(c) Invitation : They include a distinct invitation to engage in the transaction

now or as quickly as possible.

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1.3.3 TYPES OF SALES PROMOTION

PUSH PULL

A push strategy involves convincing trade intermediary channel members to "push" the

product through the distribution channels to the ultimate consumer via promotions and

personal selling efforts. The company promotes the product through a reseller who in turn

promotes it to yet another reseller or the final consumer. Trade-promotion objectives are

to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a

brand in advertising, and/or push a brand to final consumers. Typical tactics employed in

push strategy are: allowances, buy-back guarantees, free trials, contests, specialty

advertising items, discounts, displays, and premiums.

A pull strategy attempts to get consumers to "pull" the product from the manufacturer

through the marketing channel. The company focuses its marketing communications

efforts on consumers in the hope that it stimulates interest and demand for the product at

the end-user level. This strategy is often employed if distributors are reluctant to carry a

product because it gets as many consumers as possible to go to retail out lets and request

the product, thus pulling it through the channel. Consumer-promotion objectives are to

entice consumers to try a new product, attract customers away from competitors’

products, get consumers to "load up" on a mature product, hold &reward loyal customers,

and build consumer relationships. Typical tactics employed in pull strategy are: samples,

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coupons, cash refunds and rebates, premiums, advertising specialties, loyalty

programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)

displays.

1.3.4 Reasons for Sales Promotions

· This could be a way of monitoring the performance of product management. Since sales

promotion can possibly provide immediate impact on consumer sales, it is not unusual to

use these strategies to attain their sales objectives.· Companies have to cope with pressure

on sales margins which they can achieve through paying closer attention to cost-effective

sales volume. Since the results of using sales promotional techniques can be determined

accurately, sales volumes can be easily predicted.

· More importantly, sales promotions are not only effective in attaining short term sales;

they are also more cost-effective compared to other integrated marketing communications

tools such as advertising. The progressive fragmentation of audiences and the increase in

media costs have tipped the balance in favour of sales promotion techniques which are

more likely to deliver demonstrable results.

1.3.5 Popularity of Sales Promotions

The reason sales promotions are gaining popularity is due to the fact that product and

sales management are very confident in their ability to handle the techniques of sales

promotion. Other forms of integrated marketing communication tools need to go through

a lot of thought and internal debates before funds are allocated or decisions are arrived at.

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Product managers also are more in control of the determination and implementation of

sales promotional activities. They have a freehand when it comes to what sales strategies

to use.

The importance of sales promotions as an integrated marketing communications tool

could be attributed to the increase in number of specialist sales promotions agencies

operating in certain places. In the past, sales promotion was viewed as part of other

marketing communications techniques. Today, it is one of the stand-alone effective

marketing tools.

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1.4: Research Question: As the research question for my dissertation report is as

following:

To know about sales promotional techniques and its effectiveness of Vishal Mega

Mart.

The study will be carried out in the city of Bareilly and will enable vishal mega mart to

understand which consumer and sales promotion scheme are beneficial and like by

customer so as to retain customer for longer period.

This research is helpful to know type of sales promotional scheme used by retail

store and to motivate the consumer for buying the products.

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1.5: Objective of Research

1) To access the current sales promotion scheme in Vishal Megamart

2) To find out the nature and types of the sales promotion scheme offered by Vishal

mega mart to customer

3) Find out consumer perception toward sales promotion scheme

4) To find out the how much effective sales promotion for vishal mega mart

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Chapter 2:

Literature Review

Several studies on apparel retail sector and usage of promotions are reported in the

context of developed markets. A brief overview is presented below:

Indian organized retail industry is poised for growth. Apparel sector in particular has a

great opportunity with alignment of Indian economy to globalised markets. With the

widespread use of sales promotions- short term activities which provide material

inducements to consumers and trade it becomes imperative for managers to understand

such practices and understand challenges.

India as an Apparel Retail sector has grown to accommodate and use sales promotion as

an important tool to push sales and more importantly create brand loyal customers.

Retailers like Lifestyle, for instance, has a loyalty programme called `The Inner Circle',

while Pantaloons offers a `Green Card' Rewards programmes, Westside has `Club

West' to woo the customers.

Marketers use price oriented promotions such as coupons, rebates and price deals to

increase sales and market share, to entice trial, and to encourage brand switching. Gupta

(198 8) suggests that 84% of the sales increases due to promotion come from brand

switching.

Loyalty or continuity programs such as frequent user programs and shoppers' cards,

which reward consumers' repeat purchasing of a particular brand or at a particular outlet,

have their greatest value encouraging consumers with divided loyalty to purchase a given

brand (Shimp 2000).

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The Indian retail industry is undergoing major revolutions. Retailing in India is gradually

becoming the next boom industry. The consumer buying patterns and behavior are

changing steadily. The growth of India's retail sector not only limited to urban areas but

also growing in rural areas. In the next five years, it is expected that, India's retail

industry will expand more than 80%. (Supriya Pal, 2008)

With the advent of modern format retailers and the growth of plastic cards, affluent urban

Indian women are shopping like never before. They spend mornings browsing in stores

looking for deals or latest styles. It’s here the role of sales promotion becomes prominent.

Indian shoppers are deal hungry and rely heavily on price deals, off the shelf discounts

and gift vouchers. In the large urban centers, apparel retailers, like Shoppers Stop,

Westside and Pantaloon have popularized loyalty cards, gift vouchers and price deals.

This sales promotion can be categorized as the new form of promotional activity which

the Indian Apparel industry is offering and making the best out of it. Shoppers stop for

instance has over 60% of its revenues from its “First citizen” card holders who are

entitled for various discounts and loyalty points.

This highlights the importance of sales promotions and Apparel retailer needs to

understand critical role of sales promotions. Attractive promotions induces purchase

acceleration, stock piling and brand switching on the part of a consumer which

substantially reduces retailers financial and inventory risk and consumer’s psychological

risk.

Many studies have been done in the past to analyze sales promotions and relative

consumer buying behavior

1. Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied Buyer–

seller relationships for promotional support in the apparel sector which is critical

for success.

The purpose of the study was to define promotional support categories offered to

apparel retailers by manufacturers, to identify the retailer's perceptions of the

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offering frequency and importance of the promotional support

2. Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs on

Consumer Purchase Behavior and Loyalty. The study found out that consumers

who were heavy buyers at the beginning of a loyalty program were most likely to

claim their qualified rewards

3. An Investigation of Consumer Response to Sales Promotions in Developing

Markets: A Three-Country Analysis. Journal of Advertising Research | May 01,

1998 | L., Lenard C.; Alden Huff Dana studied consumers' attitudes towards the

use of coupons (a price-oriented promotion) and sweepstakes (a non-price

promotion). The models were designed specifically for developing or newly

industrialized countries with collectivist cultures and were tested with consumer

samples from Taiwan, Thailand, and Malaysia. The study suggested that

Marketing managers use price-oriented promotions such as coupons, rebates, and

price discounts to increase sales and market share, entice trial, and encourage

brand switching. Also the use of Non-price promotions such as sweepstakes,

frequent user dubs, and premiums add excitement and value to brands and

encourage brand loyalty

In view of above research studies, the emergence of sales promotions in Indian retail

segment needs to be identified. This research will look into the aspect of sales

promotional activities in Indian Apparel Retail segment. Also this study will

encompass the promotional strategies of major retail brands like Westside, Lifestyle

and Shopper Stop among others. The effectiveness of these sales promotion activities

will be studied w.r.t increasing sales/revenues as well as creating and building brand

loyal customers.

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Chapter 3: Research Design

3.1 Research methodology

When we talk about research methodology, we do not talk only of research

method but also consider the logic behind the method that be used in context research

study. We also evaluate why we are using a particular method and the used technique

should be such that the research is capable of being evaluated by the researcher and as by

others.

3.2 Research Design

Descriptive research is one, which involves describing the state of affairs, as they exist.

This type of research was used in the study of marketing strategies for the sale of

company’s product also while studying about the parameters, which affect

competitiveness of the product.

3.3 Method of data collection

Type of Research: - This research is Descriptive Research in nature because in this we

are conducting a customer based survey to know the opinion of customers about the

promotional strategy of the Vishal Megamart.

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Types of Data:- There are two types of data has been used in this research. Primary and

Secondary.

Primary Data:-Survey by Questionnaire from concerned authorities & questionnaire for

the customers.

Secondary Data:-Previous Report and websites of the organization. For Literature

review few researches has been used..

Research Instrument:-For this purpose Questionnaire & Observation has been used as tool.

Contact Method: -Direct survey of the employees and questionnaire for the customers.

Sampling Size: - 10 employees

20 customers

Sampling Area:-Vishal mega mart, Bareilly.

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Chapter 4: Data Analysis and Interpretation

Analysis of Questionnaire for the employees -

Q.1-Do you adopt the sales promotion techniques-

Table 1: Data showing uses of promotional techniques by vishal mega mart.

  YES NOSAMPLE SIZE

  10 0 10% 100% 0% 100%       

100%

%

YES 10NO 0

Fig 1: Data showing uses of promotional techniques by vishal mega mart.

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Interpretation – As this question is design to know that vishal mega mart uses sales

promotion techniques or not. When I asked from ten employees of vishal mega mart they

all reply that they use sales promotional techniques.

Q.2-Which type of sales promotion techniques you adopt-

Table 2: Data showing which type of sales promotional techniques is used by vishal mega mart.

 Discount

Coupons

Free gifts

Buy one Get one others

SAMPLE SIZE

  6 1 1 2 0 10% 60% 10% 10% 20% 0% 100%             

60%

10%

10%

20%

Sales

discountcouponsfree giftsbuy one get one freeothers

Fig 2: Data showing which type of sales promotional techniques is used by vishal mega mart.

21

Interpretation: As this question is design to know that which types of sales promotion

techniques is used by vishal mega mart. When I asked from ten employees of vishal mega

mart. Through this figure we can easily know that 60% of employee told that discount

techniques is used and 20% told that coupon technique is used and 10% told that buy one

get one free technique is used and rest of 10% told that others technique are used by

vishal mega mart.

Q.3-Which techniques is most attractive to the customer?

Table 3: Data showing that which techniques are most attractive to the customer?

Discount Coupons Free Gifts Buy one get one free

Others Sample Size

5 1 1 2 1 10% 50% 10% 10% 20% 10% 100%

50%

10%

10%

20%

10%

%

DiscountCouponsFree GiftsBuy one Get one FreeOthers

Fig 3: Data showing that which techniques is most attractive to the customer.

22

Interpretation: Through the analysis we can easily know that discount technique

attract 50% of the customer of vishal mega mart , 20% customer of vishal mega mart

are attracted by coupons technique , 20% customer of vishal mega mart are attracted

by buy one get one free technique and rest of 10% customer are attracted by other

techniques.

Q.4-Do you strongly rely on these techniques?

Table 4: Data showing that employee really rely on these techniques or not.

           

  YESGENERALLY

SOMETIMES NO SAMPLE SIZE

  4 3 3 0 10% 40% 30% 30% 0% 100%           

40%

30%

30%

%

YES 4GENERALLY 3SOMETIMES 3NO 0

Fig 4: Data showing that employee really rely on these techniques or not.

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Interpretation: Through the analysis we can easily know that 40% of employees really

believe on these sales promotional techniques , generally 30% employee believe that it

should be there and rest of 30% believe that it should be used some time.

Q.5- For how long you stick to particular techniques-

Table 5: Data showing that for how long one techniques is used by vishal mega mart.

         

 ONE WEEK

10-15 DAYS

More than one month

Sample

size

  7 2 1 10% 70% 20% 10% 100%

70%

20%

10%

Sales

one week10-15 daysmore than one month

Fig 5: Data showing that for how long one techniques is used by vishal mega mart.

Interpretation: Through the analysis we can easily know that 70% employees told that

the duration of using one technique is 0ne week , and 20% told that the duration of using

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one technique is ten to fifteen days and remaining 10% told that technique is used for

more than one month.

Q.6- Do really these techniques increases sales?

Table 6: Data showing that these techniques really increases sales of vishal mega mart or not.           

 ALWAYS

SOMETIMES RARELY

NO THEY DON`T SAMPLE SIZE

  5 5 0 0 10% 50% 50% 0% 0% 100%           

50%50%

%

ALWAYS 5SOMETIMES 5RARELY 0NO THEY DON`T 0

Fig 6: Data showing that these techniques really increases sales of vishal mega mart or not.

Interpretation: Through this analysis we can easily know that 50% employees really

believe that by using sales promotional technique the sales of vishal mega mart always

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increases and 50% think that it is helpful for increasing the sales of vishal mega mart for

some times.

Q.7- Does it helps to introduce a new product?

Table 7: Data showing that sales promotional techniques really help in introducing a new product or not.

           YES NO CAN`T SAY SAMPLE SIZE  6 1 3 10% 60% 10% 30% 100%

Fig 7: Data showing that sales promotional techniques really help in introducing a new product or not.

Interpretation: Through the analysis of this question we can easily know that 60%

employee believe that sales promotional technique helps in introducing a new product

and 10% don’t believe and remaining 30% says that they don’t know.

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60%

10%

30%

%

YES 6NO 1CAN`T SAY 3

Analysis of customer question:

Q1. Since how many days you are visiting the Vishal Mega mart?

Table 1: Data showing that from how many days customer is visiting in vishal

mega mart.

% >1 year 1 -2 year 2-4 year <4 Sample size

4 6 7 3 20

20% 30% 35% 15% 100%

Fig 1:

Data showing that from how many days customer is visiting in vishal mega mart.

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20%

30%35%

15%

Days

>1 year1-2 year2-4 year<4 year

Interpretation: Through the analysis of this question we can easily know that 20% of the customer are coming to vishal mega mart from past one year, and 30% are coming to vishal mega mart from past two years, 35% customer are coming to vishal mega mart from past four years and remaining 15% are coming to vishal mega mart from more than four year.

Q.2 Are you satisfied with its products and customer handling?

Table 2: Data showing the satisfaction level of customer for the product and customer handling offered by vishal mega mart.

% Yes No Sample Size

12 8 20

60% 40% 100%

Fig 2: Data showing the satisfaction level of customer for the product and customer handling offered by vishal mega mart.

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60%

40%

Satisfaction Level

Yes

No

Interpretation: Through the analysis of this question we can easily know that 60% of customers are satisfy with the product and customer handling being provided by vishal mega mart and remaining 40% are not satisfied.

Q.3) Do you enjoy the discounts being provided here?

Table 3: Data showing the satisfaction level of customer with the discount provided by vishal mega mart.

% Yes No Cannot say Sample size

17 3 0 20

85% 15% 0 100%

Fig

3:

Data showing the satisfaction level of customer with the discount provided by vishal

mega mart.

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85%

15%

Satisfaction Level

Yes

No

Interpretation: Through the analysis of this question we can easily know that 85% of the

customers are satisfied with the discount provided by vishal mega mart and the remaining

15% are not satisfied by the discount provided by the vishal mega mart.

Q4. Are you satisfied with sales promotion activity of the Vishal Megamart?

Table 4: Data showing the satisfaction level of customer with the sales promotion activity by vishal mega mart.

% Yes No Sample Size

17 3 20

85% 15% 100%

Fig 4: Data

30

85%

15%

Satisfaction Level

Yes

No

showing the satisfaction level of customer with the sales promotion activity by vishal mega mart.

Interpretation: Through the analysis of this question we can easily know that 85% of the

customers are satisfied with the sales promotional activity provided by vishal mega mart

and the remaining 15% are not satisfied by the sales promotional activity provided by the

vishal mega mart.

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Q. 5 Which offer do you like the most?

Table 5: Data showing the offer which are most preferred by the customer.

  Discounts Free GiftsBuy one get one free If any other Sample size

  10 4 5 1 20

% 50% 20% 25% 5% 100%

Fi:g 5:

Data showing the offer which are most preferred by the customer.

Interpretation: Through the analysis of this question we can easily know that 50% of the

customer are satisfied with the discount provided at vishal mega mart , 20% customer are

satisfied with the free gifts , 25% customer are satisfied with the buy one get one free

technique and remaining 5% are satisfied with the other promotional activity.

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50%

20%

25%

5%

DiscountFree GiftsBuy one get one freeIf any other

Q6. Do you think you will keep visiting the Vishal Megamart?

Table 6: Data showing the customer loyalty that they will continue visiting to vishal

mega mart in future or not.

  Yes No Can not say Sample size

16 0 4 20

% 80% 0 20% 100%

Fig 6: Data showing the customer loyalty that they will continue visiting to vishal mega

mart

in

future or not.

Interpretation: Through the analysis of this question we can easily know that 80% of the

customer will continue to buy in future and the remaining 20% are not sure that whether

they will come or not.

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80%

20%

YesNoCan not say

CHAPTER - 5

5.1 Findings

As there were two types of respondents with different type of questions so the

findings of the questionnaire are as following:

Vishal mega mart uses promotional tool at wider range.

They mostly use discount offers as a promotional tool for increasing sales.

They use promotional tool mostly for a week

Promotional tools are very much important for Vishal Mega Mart, in

increasing sales and also in introducing new products.

Customers are also satisfied with the promotional tools of Vishal Mega Mart;

mostly they are satisfied with the discount offers.

Customers are satisfied with the products of Vishal Mega Mart and also with

the behavior of the employees.

Vishal mega mart maintains good customer relationship that’s why most of the

customers said that they will visit Vishal Mega Mart frequently.

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5.2 Limitation:-

This research is conducted on a very small sample size, so it might be possible that the

information given by such respondents may not match with the replay of total customer

available in the store at that time.

There was a time constraint while conducting the report.

It might be possible that the answers given by the respondents are full of biasness.

As there are two types of respondents so there is difference between the responses

towards the sales promotion tools avail by both of them which become a constraint

towards the research project.

5.3 Suggestions.

35

They need to focus on other promotional tools as they only rely on discount offers.

They should also focus on quality of product.

They should also focus on customer handling services and they should take new

steps in reducing the waiting time of customer during making payments as there is

a long queue.

They should also use promotional tool for more than a week so that every

customer is benefited.

5.4 Conclusion

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In the research we found that Indian retail industry is very complicated in nature

because the taste and preferences of the customers vary a lot in nature. The customers are

very choosy in nature; they are not ready to compromise with their requirements. The

customers have lots of option related to the choices. There are many competitors in the

retail industry. So the sales and promotion activity of the company is the only tool to

attract the customers.

In the study we found that Vshal Megamart is one of the most successful retail

stores in India. They apply various methods of sales and promotion. They apply most of

the tools on weekly basis. They also keep on changing the methods regularly. They do so

because they know that if they have to sustain in the market will need to give their

customers always something new.

Bibliography

37

www.vishalmegamart.com

www.wikipedia.com

www.scrib.com

Books-

Philip Kottler

Annexure.QUESTIONNAIRE

38

Questionnaire for the Customers

Name-

Occupation-

Adress-

1. Since how many days you are visiting the Vishal Megamart?

a) >1 year

b) 1-2 year

c) 2-4 years

d) 4< years

2. Are you satisfied with its products and customer handling?

a) Yes

b) No

3. Do you enjoy the discounts being provided here?

a) Yes

b) No

c) Not Really

4. Are you satisfied with sales and promotion activity of the Vishal

Megamart?

a) Yes

b) No

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5. Which offer do you like the most?

a) Discounts

b) Free Gifts

c) Buy one Get one free

d) Other if any.

6. Do you think you will keep visiting the Vishal Megamart?

a) Yes

b) May be

c) No

Questionnaire for Employees

40

Name :- ___________________________

7. Do you adopt the Sales Promotion techniques?

a) Yes b) No

8. Which type of sales promotion techniques you adopt -

A. Discount [] B. Coupons [ ] C. Buy one and get free [] D. Free gifts []

E. If other, specify …………………………

9. Which techniques is most attractive to the customer?

A. Discount [ ] B. Coupons [ ] C. Buy one and get free [ ] D. Free gifts [] E. If other, specify …………………………

10. Do you strongly rely on these techniques -

a) Yes b) No c)Sometimes d)Generally

11. For how long you stick to particular techniques?

a) 1 month b)10-15 days c)one week d) depends on the need

Q6) Do really these techniques increases sales?

a) Every time b)Sometimes c) Generally d) No they don`t

7. Does it help to introduce a new product?

a) Yes b) No c) can`t say

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