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CUSTOMER AWARENESS IN SALES PROMOTION
INTRODUCTION
The importance of consumer sales promotion in the marketing mix of the fast moving consumer
goods (FMCG) category throughout the world has increased. Companies spend considerable
time in planning such activities. However, in order to enhance the effectiveness of these
activities, manufacturers should understand consumer and retailer interpretations of their
promotional activities. The study here pertains to consumers perceptions regarding sales
promotion. Some past researches have suggested that promotion itself has an effect on the
perceived value of the brand. This is because promotions provide utilitarian benefits such as
monetary savings, added value, increased quality and convenience as well as hedonic benefits
such as entertainment, exploration and self-expression
In saying, marketing involves the conception, pricing, promotion and distribution of ideas, goods
and services. The fundamental objective of marketing is to exchanges of goods and services
(Frances Brassington and Stephen Pettitt, 2005) By designing products setting sensible,
acceptable and justifiable prices, creating awareness and preferences, and ensuring availability
and service, the marketer can influence the volume of exchange therefore marketing can be
considered as a demand management activity on the part of the selling company.
Promotion is an important component of marketing mix which has got a very significant impact
on the demand managing activity of marketing. The key components of promotion includes
personal selling, direct marketing, advertising, sales promotion, and public relations. Sales
promotion is a range of marketing techniques designed with in a strategic marketing frame work
to add extra value to a particular product or services, developing a promotion strategy involve
deciding on the objectives of marketing communication. Promotion objectives are so vital that
these objectives are the key in determining the role of each components of the promotion mix in
the marketing objectives of the organisation. The role of promotion mix components depends on
the type of organization, nature of products, etc. Promotion is a part of integrated marketing
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communication which recognizes the advantages of having a complete plan to find better ways
of understanding and connecting with consumers.
Organizations are forced to test various strategies to find a better one suitable for them in
increasing their sales and market share. Sales promotion is one of the important promotion
strategies followed by the retailers. Sales promotion refers to communication strategies designed
to act as a direct inducement, an added value, or incentive for the product to customers. In retail
industry sales promotion efforts are designed in such a way that it always assists all other
promotional activities undertaken by a retail store. Sales promotion always tends to encompass
all the external factors such as advertising, publicity and direct marketing although these might
be used to deliver sales promotions. Since the sales promotion is all about communicating we
could see in this study that how an effective sales promotion strategy executed or implemented
through a better communication results in positive perception in consumers there by resulting
increased sales.
The leave no stone unturned to woo the consumer in various festive seasons. The Drivers of
various festive Bonanza re of two types one is to cash in on increased festive season spending
and the other one is more of a bottom-line driven, with loss making stores looking to wipe out
losses. Retails stores utilises the festive seasons to liquidate all stocks and inventories to avoid
loss on account of excess inventory and low turn over.
The promotion programmes relate to consumer purchase decision and what the strategies
adopted by the retail group. Most observers feel that dealing activity do not build long term
consumer loyalty. The different services offered by the retail chains or hypermarkets may be
perceived positively by certain set of consumers due to the opportunity it provides them to lookat the products leisure. Retailers often develop and design the retail marketing mix to ensure
patronizing the retail store or format by the target segment or to attract new customers. The
attractive sales promotion offers may or may not be effective
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INDUSTRIAL PROFILE
After achieving the leadership position in Software solutions, the group entered into the state of
Gujarat- non IT technologies, where local players are formidable. The group launched its
organization, Deccan solutions in Ahmadabad in June 2003 is a Case Study with IIM-A for its
first day net paid sale of 4, 52,000 lakh copies. In 2004 Deccan solutions further launched its
edition in Surat &Baroda and Rajkot in early 2005. In Sep. 2004, Deccan solutions group had
taken over another Gujarati newspaper Saurashtra Samachar in Bhavnagar- the leading
newspaper in Saurashtra region. In just two years Deccan solutions has become the no.1 in
Ahmadabad, Baroda & Surat in terms of leadership. Also launched its North America edition
from New York in May 2004.
After setting many new trends in Hindi & Gujarati market, Deccan solutions group, in
association with Zee, launched its English newspaper DNA (Daily News & Analysis). In July
2005 with a circulation of 3 lakh + copies per day.
In sep. 2004, the group has also launched a monthly complete Hindi magazine Aha Zindagi for
positive & good life. Today the magazine enjoys circulation of 1.35 lakh copies with 5.95 lakh
readers.
Over a period, the group has diversified its business into Textile, Solvent Extraction, Job
Printing, FMCG, and IT & Family entertainment. As of today Deccan solutions group is a 400
crore company.
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Milestones:
2009
Inauguration of Deccan solutions Print Planet at Changodar, Ahmadabad by Narendra
Modi, chief minister, Gujarat, on November 13, 2009
Installation of KBA printing machines imported from Germany at Jaipur and Ahmadabad
facilities
Launch of DB Star Jodhpur editions on Aug15, 2009
2008
Deccan solutions completes fifty glorious years as a leading Hindi publication
Business Deccan solutions, a Hindi financial newspaper, was launched in Bhopal, Indore,
Raipur, New Delhi, Panipath, Jalandhar and Ludhiana with separate editions for each of
these cities
Launch of Deccan solutions editions in Pali, Nagaur, Bhilai, Ratlam and Shimla
Launch of DNA in Jaipur as a franchise by DB Corp Ltd Launch of editions of DB Star in Bhopal and Indore
MY FM consolidates its network with 17 radio stations in 7 states, across India
2007
Launch of DB Goldthe first compact newspaper in Gujarati from Surat
Launch of DNA in Ahmadabad and Surat as a franchise by DB Corp Ltd
Launch of Young Deccan solutions Magazine for children and Lakshya, a careermagazine
MY FM enhances its reach to 14 cities across India
Launch of Deccan solutions Ludhiana edition on Dec 15
Launch of Deccan solutions Bhuj edition on July 30, making it the only Gujarati
newspaper with seven editions in Gujarat
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Launch of Deccan solutions Rajkot edition on Nov 01
2006
Entry in Punjab with launch of Amritsar and Jalandhar edition on Oct 08
2005
Inception of DB Corp Ltd, pursuant to the demerger of publishing business of Writers
and Publishers Limited (WPL)
The Deccan solutions group won license from Ministry of Information and Broadcasting
for launch of radio business, through their subsidiary, Synergy Media Entertainment Ltd
(SMEL), in seventeen stations, in the name of MY FM AHA! Zindagi magazine launched in Gujarati language
IMCL, a new web media company was formed as a subsidiary of DB Corp
2004
Launch of new Hindi magazine, AHA! Zindagi, the first of its kind on lifestyle and
positive thinking
In their first merger and acquisition, the Deccan solutions group acquired SaurashtraSamachar the sixty years old, largest circulated daily newspaper of Saurashtra
Launch of Deccan solutions Baroda edition on Sept 12
Initiated presence in Maharashtra with the launch of Deccan solutions Mumbai edition in
July
Launch of Deccan solutions Surat edition on March 28
2003
Launch of Deccan solutions from Ahmedabad on June 22. This was the biggest launch of
any new edition, across languages, across territories in India where the daily was
launched with 4,52,000 copies on day first and became the leading publication in
Ahmadabad city
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2001
Deccan solutions Group further consolidated its position by launching Faridabad edition,
in Haryana state, after two editions from Panipat and Hisar
2000
Deccan solutions group expands presence to Haryana state on June 04, by launching
Panipat and Hisar editions
Launch of Deccan solutions Chandigarh edition on May 07
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COMPANY PROFILE
Established in the year 2000, we, Deccan Energy Solutions Pvt Ltd., are eminent
organization engaged in supplying and system integrating a wide range of quality-assured SolarHome & Street Lights, Lanterns, Water Heaters and Panels . Offered array of products ismanufactured by expert professionals using excellent quality raw material and cutting-edgetechnology. These solar products are traded by our professionals in adherence with theinternational quality standards. Widely used in domestic and commercial purposes, these solarproducts are highly appreciated among the clients for its remarkable features such as longerfunctional life, efficient performance, low maintenance and user & environmental friendliness.
Backed up by a top-class infrastructure facility, we are trading a qualitative & qualitative range ofsolar products. Our sophisticated infrastructure is well-equipped with the latest machines, toolsand advance technology to ensure the uninterrupted flow of work. Further, to handle all the
business process, we have appointed a team of deft professionals. These professionals are well-versed with the entire process and help us in meeting the expectation of our clients. Also, owingto their hard work and sincere efforts, we have been successful in gaining an immense success inthis domain. Moreover, with their help, we have been successful in developing a vast clientle allacross the IndianSubcontinent.
Under the valuable guidance of our mentor, 'Mr. K. Duraisamy', we have been able to create aunique niche in the domestic market. His brilliant management skills, vast experience and in-depth knowledge have helped us in staying ahead of our counterparts.
Company Profile
Basic Information
Business Type
Importer
Supplier
Trader
Ownership & Capital
Year of Establishment 2000
Ownership Type Private Limited Company
Trade & Market
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Major Markets
Indian Subcontinent
Annual Turnover Rs. 2 - 5 Crore ( or US$ 400 K - 1 Mn Approx.)
Team & Staff
Total Number of Employees 11 to 25 People
Company USP
Primary Competitive Advantage
Experienced R & D Department Good Financial Position &
Large Product Line Large Production Capacity
Quality Measures/Testing Facilities Yes
Packaging/Payment and Shipment Details
Customized Packaging Yes
Payment Mode
Cash Cheque
Credit Card DD
LC Pay Order
Wire Transfer
Shipment Mode By Air By Road
By Sea
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Our Team
Our organization is firmly supported by a team of deft professionals, who work relentlessly to accomplish the pre-defined
organizational goals. Our competent professions supports us as a backbone and enables us to offer a qualitative range
ofSolar Home & Street Lights, Lanterns, Water Heaters and Panels news papers . These professionals possess an
impeccable knowledge and experience of this domain that helps us in carrying out all business process in more efficient
manner. Further, to ensure the streamline flow of work, all team members work in a cordial manner.
Below mentioned are the members, our team comprises:
Engineers
Production managers
Quality controllers
Research experts
Sales and marketing executives
Administrative personnel
Skilled and semi-skilled worker
Our Quality Assurance
Owing to excellent quality of offered solar products, we have gained an immense success in this domain. To maintain the
same, we ensure to quality check the offered array ofSolar Home & Street Lights, Lanterns, Water Heaters and
Panels using premium quality raw material and components. Also, our engineers check the entire range of solar products
keeping international quality standards in mind. Further,to dispatch only defect-free range of products, we have appointed ateam of efficient quality controllers. These quality controllers also test the entire range on various per-defined parameters to
ensure its flawlessness.
Client Satisfaction
In order to trade and offer a qualitative range of solar products, we have developed a safe & sound infrastructure. Our
sophisticated infrastructure facility enables us to carry out all the business processes without any hassle. Further, to ensure
the smooth execution of all the processes, we have divided our premises into various divisions. Holding their specific
responsibilities and duties, these departments are system integrating, quality controlling, administrative, logistic, packaging
and warehousing. Also, we have installed latest machines, tools and advance technology at our infrastructure.
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SCOPE OF THE STUDY
This study helps in identifying the key and strategic influencing factors which has an influence in
the performance level of the sales and provides way and means through which better results i.e,
higher sales promotion can be achieved it is high important to study the sales promotion in the
present dynamic and complex world of intense competition in order to satisfy the organization
expectation an d need better than competitor
The present study is limited to Deccan Solution limited located at Kanchanbag, Hyderabad. The
scope of the present study has confined to above objectives.
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Need For the Study
Every organization big or small, productive or non productive economic or social, old or newly
established should provide training to all employees irrespective of their qualification, skill,
suitability for the job etc., Marketing plays a very important function of any personal
administration
In order to find out the effectiveness of marketing, of Deccan Solutions wants Find out there
employees opinion and their satisfaction level. So that this study was conducted to collect data
and from the observation and findings, suggestions as to be submitted to the personal Department.
It are hoped that the personal Department will look in to suggestions and try to implement them.
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OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
The main purpose of this research is to gain the effects of promotional programme on consumers
perception with special reference to the promotional programmes of _____. And to assimilate
how it affects on consumers buying decision. This research also helps to understand how
successfully they could carry out certain schemes and how far it could gain the consumers
attention.
SECONDARY OBJECTIVE
Following are some of the secondary objectives for which the research is carried out.
To study about consumers attitude towards sales promotion
To evaluate the effectiveness of sales promotion schemes.
To study about the suitability of offers in each departments
To find the customer loyalty to the sales promotion programmes
To find out the best communication channel for promotion.
To find out the effects of sales promotion on consumer perception
To find out the awareness level of the consumers with concern to various sales promotions
To find out the effects of sales promotion on buying decision.
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Limitations Of The Study
Any Research study does have limitations no matter how much care is taken by researcher to
avoid them. These limitations may be build in the system or may have erupted in to the study due
to the following factors.
The Researcher has to face more difficulties in administering the questionnaire, As the
respondents were not responded during there working hours.
Some employees did not disclose much of information for fear of the superior.
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RESEARCH METHODOLOGY
CONSUMER ORIENTED SALES PROMOTION
Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize is given to
motivate consumer to increase sales. Consumer Oriented Sales Promotion includes Sampling,
Couponing, Premiums, Contest, Refunds, Rebates, Bonus Packs, Price-off, Event marketing etc.
DEFINITION:
For the purpose of this study, following definitions of sales promotion were kept in mind. Kotler
defines sales promotion as: Sales promotion consists of a diverse collection of incentive tools,
mostly short-term designed to stimulate quicker and/or greater purchase of particular
products/services by consumers or the trade.
Roger Strang has given a more simplistic definition i.e. sales promotions are short-term
incentives to encourage purchase or sales of a product or service.
Hence, any forms of incentives (price cut or value added nature) offered for short period either to
trade or consumers are considered as sales promotion activities.
MARKETERS USES CONSUMER ORIENTED SALES PROMOTION
TOOLS FOR THE FOLLOWING REASONS:
To increase short term sales
To induce trial
To reduce inventory
To establish a brand name
To make cross selling
To cope up with competition
To avoid advertising clutter
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TOOLS OF CONSUMER ORIENTED SALES PROMOTION:
There are so many tools or technique available to the marketers for achieving objective of sales
promotion. These tools should be used considering all other factors affecting such as cost, time,
competitors, availability of goods etc. These tools are as under
1. Coupons
2. Price-Off
3. Freebies
4. Scratch Cards
5. Lucky Draws
6. Bundling Offer
7. Extra Quantity
Lets have look at each tool
1. COUPONS:
Coupon is the oldest and most widely used way of sales promotion. Coupons have been used
since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a promotion
tool because data shows that market for packaged goods increased from 16 billion in 1968 to 310
billion in 1994. To boost up the sales not only manufacturer but retailers personally can also used.
A coupon leads to price reductions so as to encourage price sensitive customers. Non users can trya product which may leads to regular sales.
2. PRICE-OFF:
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A price-off is simply a reduction in the price of the product to increase sales and is very often
used when introduction a new product. A reduction in price always increases sales but the use of
this technique should be carefully considered in the current market situation.
Price-off is the most preferred sales promotion technique because consumers response very
positively to this scheme. Not only that but it also cause large increase in sales volume. Price-off
reductions are typically offered tight on the package through specially marked price packs. E.g.
Krack Jack offers 30% Price-off.
3. FREEBIES
Freebies are a popular form of modern marketing and are some of the best things about the
internet. The definition of freebies is products or services given away for free at no cost to the
consumer. Well thats the definition we came up with. I am a bargain freebie shopper, pretty
much going for any free product and informing everyone about it.
At different times, big and small companies often give away prizes and money which is too good
to be true. Often its in the pursuit of more customers or a larger fan base and it often works.
4. SCRATCH CARDS
A scratch card (also called a scratch off, scratch ticket, scratcher, scratchie, scratch-it, scratch
game, scratch-and-win or instant game) is a small token, usually made of cardboard, where one or
more areas contain concealed information: they are covered by a substance that cannot be seen
through, but can be scratched off.
5. BUNDLING OFFERS
Product bundling is amarketingstrategy that involves offering severalproductsfor sale as one
combined product. This strategy is very common in thesoftwarebusiness (for example: bundle
aword processor, aspreadsheet, and adatabaseinto a singleoffice suite), in thecable
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televisionindustry (for example, basic cable in theUnited Statesgenerally offers many channels
at one price), and in thefast foodindustry in which multiple items are combined into a complete
meal. A bundle of products is sometimes referred to as a package deal or a compilation or an
anthology.
FACTORS INFLUENCING CONSUMER ORIENTED SALES PROMOTION:
Mainly four factors should be taken into account while determining the sales promotion program.
> Target market
> Nature of product
> Stage of product life cycle
> Budget available for promotion
a
1. TARGET MARKET:
While doing sales promotion, marketer must know who their target market is; otherwise there is
no use of all effort because it leads to no where. A target market can be in any of the stages of
buying hierarchy i.e. awareness, knowledge, liking, preferences, conviction and purchase. Each
stage defines a possible goal of promotion.
2. NATURE OF THE PRODUCT:
There are various product attributes which influence sales promotional strategy. When the unit
price is low the manufacturer as well as the customer has low risk but he can get the benefit of
mass marketing. Therefore, mass marketing requires mass sales promotion schemes. Salespromotion scheme differ for products like its durability, perishable goods etc.
3. STAGE OF PRODUCT LIFE CYCLE:
Sales promotion strategies are influenced by the life cycle of a product. When a new product
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introduced, prospective buyers must be informed about its existence and its benefits and
middlemen must be convinced to stock it. Later, if a product becomes successful, competition
intensifies and more emphasis is placed on sales promotion to increase its sales.
4. Budget Available for Promotion:
The funds available for promotion are the ultimate determinant of the promotional programme. A
business with ample funds can make more effective use of sales promotion programme than a
firm with limited financial resources. The budget for sales promotion can be prepared by the
following methods
Percentage of Sales
Fixed funds available for sales promotion
Following the competition, and
Budgeting by objective.
SALES PROMOTION FROM THE CONSUMERS POINT OF VIEW
Willingness to buy on sales promotion offer
Sixty per cent of the sample did not show willingness to buy a brand due to promotion
while 30% showed willingness and 10% were not sure. This indicates that when 30% showed
willingness and 10% consumers who were not sure, these groups might be lured through
innovative and lucrative sales promotion offer.
Ability To Induce Trial
Forty per cent of the respondents had said that sales promotion had the ability to induce
trial which reinforces the above inference.
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Long-Term Impact
In order to understand ability of the promotions to increase long-term sales, respondents
were asked about continuity of purchase of a brand after the withdrawal of promotion. Eighty per
cent of the respondents indicated that they would not continue. But 20% said they would. Thus, it
could be inferred that promotions in this category (low involvement products) might encourage
trial and brand switching but not long term loyalty.
PREFERENCE OF SCHEMES:
Price off was the most preferred type of scheme. Maximum customers ranked price-offs
as number one or two.
PERCEIVED QUALITY:
Majority of respondents had a perception that the quality of the promoted brands remained
the same during promotion, while some of them felt that it was inferior than before. It can be
inferred that promotions were not leading to negative brand quality perceptions. It is found that
some customer strongly preferred to buy their regular brand and said that sales promotion would
not weaken their loyalty towards the brand.
PERCEPTIONS REGARDING UNDERLYING COMPANY MOTIVATIONS
On tapping perceptions regarding underlying company motivations for sales promotion,
to increase sales was ranked highest followed by to attract switchers and to sell excess
stocks. While providing value to customers and
To reinforce company image were ranked lowest. This indicates that consumers believed that
companies were undertaking such activities only for their own benefit and not for the benefit of
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consumers.
Findings from retailer and consumer perception studies, it is evident that there was a matching of
perceptions regarding nature of scheme (price offs as most preferred type of scheme mentioned by
consumers and retailers perceptions about consumer preferences). Since retailers observe
consumers in store behavior were frequently and directly, their perceptions regarding providing
consumer behavior are likely to be accurate. Such inputs from the retailers would be useful to
companies.
The retailers had the perception that those schemes which were announced through mass media
had better response. This was reinforced by the consumer survey which showed that recall in case
of heavily promoted schemes on TV was found to be very high.
Retailers prediction of companies motivation for offering sales promotion were matching with
the consumer perception regarding the same. Thus both viewed that companies were using sales
promotion activities mainly to increase short term sales or encourage switching or selling excess
stock and not really to give value benefit or enhance/reinforce brand/company image.
TRADE ORIENTED SALES PROMOTION
Trade Oriented Sales Promotion aimed to motivate channel member of the company and to
encourage them to push companys product. Trade Oriented Sales Promotion includes dealer
contest and incentives, trade allowances. Point-of-purchase displays, sales training programs,
trade shows, cooperative advertising, and other programs designed to motivate distributors and
retailers to carry a product and make an extra effort to push it to their customers
SALES PROMOTION FROM THE RETAILERS POINT OF VIEW:
Perceptions on Scheme Preference
It was found that retailer perceived price offs as a better form of sales promotion activity.
Price offs in their opinion had relatively a greater impact compared to any other form of sales
promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred price offs the
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most, then bonus pack, premium, contests, in order of importance.
Perceptions about Buying Roles
Retailers viewed that the person who came to the shop (who may be a maid, son, daughter,
daughter-in-law and child) was the decider of a toilet soap brand and not the Income provider
(e.g. head of the family). It could be inferred that visibility of information about the sales
promotion activity at the point of purchase could result into the purchase of a promoted brand.
Perceptions about their role in decision-making
Retailer had relatively very low influence in affecting choice. It could be inferred that
visibility and awareness about the scheme were the critical success factors so that pull could be
created.
Perceptions about Response to Sales Promotion Offers
They believed that younger age-groups were more experimental in nature, amenable to
trying new brands, and sought/looked for or asked whether there were any) sales promotion
schemes running on any toilet soap at the time of purchase.
Perceptions about Communications of Sales Promotion Schemes
Retailers perceived that role of word of mouth and television advertising played an
important part in providing information inputs to consumers regarding sales promotion activities.
Variations in Information Flow
Smaller (non-supermarket, small format store) retailers received relatively less support
compared to supermarkets in terms of servicing, margins, information about sales promotion
activities from the dealers. Many a times small retailers were only informed verbally about sales
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promotion schemes by the dealer salesmen during the scheduled weekly visits.
Dealer-Retailer Dynamics
At the time of sales promotion activities, dealers had tendency to push unwanted stocks
onto the smaller retailers. In fact these retailers preferred to stock variety of brands and wanted
payment for shelf and window display to increase traffic into their store. However, supermarkets
and big retailers were pampered and given special services and given better margins and better
allowances.
Margins
It was found that in sales promotion schemes margins varied from 6 to15% depending of
the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc. Mostly
margins were linked to size of the volumes that were ordered.
Perceptions about terms and conditions
Retailers were not found to be happy with sales promotion schemes where their margins
were cut on the pretext of just fast movement of inventory of the brand being promoted. Also if
additional incentive was offered it was subject to minimum performance requirement.
Nature of POP
Retailers indicated that most of the POP (Point of Purchase) materials were meant for
brand advertisement and not for giving information regarding the schemes. Thus it could be
inferred that companys follow up was not adequate.
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Servicing during duration of Scheme
In stock-out situation during the running of the sales promotion schemes, smaller retailers
had to wait for replenishment of stocks till the next scheduled weekly visit by the dealer salesman
but big retailers were serviced on telephonic request for replenishment of stocks. This clearly
indicated the disparity in treatment.
Problem of left-over
A leftover stock at the end of any scheme was required to be sold by the retailers before
they ordered fresh stocks. In case of bonus packs scheme, leftover stock was often dismantled (cut
open buy one get one free) and sold them individually as a regular soap. This approach of the
company leads to misappropriation which in turn could result in adverse brand image.
Gifts for Retailer motivation
Companies at times were rewarding retailers by giving free gifts like thermos flasks or
clocks if they sold more than certain quantity in a given period. Companies were making a half-
hearted effort to motivate retailers.
Perceptions about mass media announcements
Retailers viewed that whenever sales promotion scheme was announced on TV, it created
pull and they were more than willing to stock such brands. For example Medimix and Dettol
contest was not advertised on TV, hence there was very little awareness leading to unsold stock
till 6 months. While Lux Gold Star which was heavily promoted on T.V. is recalled even today.
Post Promotion Behavior
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Retailers observed that in most cases sales promotion scheme on a brand might encourage
a buyer to switch a brand temporarily but he would revert back to original brand after promotion.
Handling Problems
Many a times retailers had to handle various sales promotion offers simultaneously in a category
and also across categories and there was no formal communication planning either from the dealer
or the company. Remembering each offer and handling was a problem especially for a small
retailer which was often an as one-man show.
WHY DO SALES PROMOTION SCHEMES AFFECT SALES?
There are three mechanisms behind these facts. It is Purchase quantity, Brand switching and
Category expansion.
First, consumer can increase the quantity they buy just because the product is on sale.
Second, consumers are inducing to purchase another brand different from the one they would
have purchased when there is no promotional incentive.
Finally,consumers total consumption of the product category is increased by the promotion.
However, in the long term this positive effect may be diluted because a promotional campaign has
no permanent effect in the sales of the firm
FACTORS INFLUENCING CONSUMER BEHAVIOR
There are both internal and external factors that affect the ways in which consumers act. The
internal factors are interest, attitude, opinion, outlook etc. The external factors are society, culture
peer, family (wells,1975). Individuals use certain goods and practices in a number of ways firstly
they use the goods as materials with which to create foster and develop their identity (Elliot and
Wattanasuwan, 1998).
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Here the symbolic meaning of goods is used as an outward expression of their self concept and
connection to society. Certain recent research found that consumers develop a sense of who they
are over time, through a long, continues process of self examination and observation.
The study of consumer behaviour includes a broad range of topics and activities, it is concerned
with understanding of individuals purchase and consumption activities and how individual
consumers are acquiring information and the way they process the information into a purchasing
decision. Solomon and Stuart (2000) explains the consumer buying behaviour as the process
individuals or groups go through to select, purchase, or use goods, services, ideas, or experience
to satisfy their needs and desires also emphasised by Kotler and Amstrong (2000).
The consumer decision making process can be explained in the following diagram. These are
some of the highly significant factors that affects and influence the consumer in making a buying
decision.
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Here the researcher trying to explain in detail the motivational factors on perception of a brand,
package or a promotional activity makes the consumer aware of the availability of a product.
Consumers buying decision is often motivated by something more than awareness, Belk (2003) it
depend mainly on his needs and drives. Consumer motivation is the driving force which makes
the buying decision.
SAMPLING DESIGN
1)POPULATION: The population consists of both managerial staff and non-
managerial staff of Deccan Solution, Hyderabad.
2)SAMPLE UNIT: Sample unit will be the employees in Deccan Solutions
,Hyderabad
3)TYPE OF SAMPLING : Simple random sampling is used as the sampling
technique.
4)SAMPLE SIZE: The research has collected information form 100
employees of Deccan Solution, Hyderabad with the structured questionnaire.
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DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF CONSUMER SURVEY FOR SALES PROMOTION
INTRODUCTION:
This chapter deals with the analysis and interpretation of the collected primary data. The research is
conducted to evaluate the consumer perception of various sales promotion offers with respect to m/s Big
Bazaar, Bangalore with special reference to various promotion offers operated and introduced by them.
Here the researcher has collected the data through questionnaire from 100 respondents chosen by the
method of convenience sampling is analyzed here.
The personal detail of 100 respondents such as gender classification, age wise classification, location wise,
income wise classification, their mother tongue, family size, occupation are shown below:
Gender:
Out of 100 respondents there were 68 males and 32 female respondents.
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Q1. Which brand of Soap / Detergent do you use?
Bathingsoaps Respondents
Lux 41
Hamm 3
Lifebuoy 14
Nima 8
Others 34
Interpretation:The above question has been formed to know the soaps and detergents at the top of the mind of
the customers. It shows those consumers purchase and use of that particular brand. It will help to
the company to know the market scenario and the major brands in the market.
Form the above result it is clear that out of 100 customers more than 40 are consumers are having
the same brand as the image in their mind, whereas others category is also showing the higher
graph than these 3 major players(Hamam, Lifebuoy, Nima).
0
5
10
15
20
25
30
35
40
Nirma supper Wheel Surf Ariel Others
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Detergent powder Respondents
Nirma supper 19
Wheel 14
Surf 35
Ariel 18
Others 14
Interpretation:
Form the above result it is clear that out of 100 customers 35 are purchasing the same brand of
detergent, whereas all others are on same level.
0
5
10
15
20
25
30
35
40
Nirma supper Wheel Surf Ariel Others
Column2
Column1
Series 1
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Q2. Do you always buy the same brand of Soap / Detergent?
Particulars Respondents
Yes 56
No 44
INTERPRETATION:
The objective behind the formation of this question is to know the level of brand loyalty of the
consumers towards the brands of soaps available in the market. The above figure shows that on
56% of the respondents are loyal to their brands of detergent/soap. FMCG are such a market
where the level of loyalty remains low and this is because of many reasons.
0%
10%
20%
30%
40%
50%
60%
70%80%
90%
100%
YES NO
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Q3. Which factors do you normally consider while purchasing aparticular brand of Soap / Detergents?
FactorsBathing
soap Det.powder
Fragrance 19 18
Quality 33 36
Company image 16 13
Price 23 19
Packaging 6 11
Others 3 3
Interpretation:
The objective behind this question is to know the effect of influencing factors in the purchasedecision of the soaps and detergent powders. It mainly contains the factors like, quality whichplayers an important role in the purchase decision of the soaps and detergents both. If we look atthe graph of the soaps and detergent it shows quality as the most influencing factors in thepurchase decision while price is also an important for purchase decision.
0
5
10
15
20
25
30
35
40
Fragrance Quality Company
image
Price Packaging Others
Series 1
Series 2
Column1
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Q4. Do you consider promotional schemes while purchasing a particularbrand of Soap / Detergent?
Particulars Respondents
Yes 78
No 22
H0: Promotional schemes have a significant effect on the purchase of brand.
H1: Promotional schemes do not have an effect on the purchase of brand.
Interpretation:Answer of this question will give idea about the effect of promotional schemes in the purchasedecisions. Such types of schemes always attract more and more consumers towards particularbrand. Simultaneously it gives idea about the factors which consumers look most in the productbefore they make final decision.
Here H0 is accepted as the graph shows that 78 out of 100 consumers are looking for suchschemes before they make purchase.
YES
NO
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Q5. Which of the following promotional schemes you have come acrossso far?
Promotional schemes Respondents
Coupons 16
price off 84
Freebies 24
scratch cards 12
lucky draw 9
Bundling 31
extra qty. 44
Interpretation:
The above stated question clearly states the awareness of promotional schemes offered in the
market by the marketers to attract more and more consumers.
The results show that price off and extra quantity is the two main offers/schemes which
consumers have came across at the time of purchase. It will help the manufacturers and marketers
too how too launch their new products in the market with which schemes.
Coupons
Price off
Freebies
Scratch Cards
Lucky draw
Bundlings
Extra qty
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Q6. Which medium do you feel is suitable to promote the variouspromotional schemes?
Source Respondents
Radio 11
TV 69
Newspaper 43
Hoarding 15
Others 12
Interpretation:
This question gives stress on the media habit of the people and through which the product should
be launch or they think it would be better than other Medias.
The above result shows TV as the best media to market the product which will cover majority of
the viewer ship. On the second place it shows news papers as the media to promote the product in
the market.
0
10
20
30
40
50
60
70
80
Radio Tv Newspaper Hoaring Others
Series 1
Column1
Column2
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Q7. Is there any existing scheme on the Soap / Detergent you arecurrently using?
Particulars Respondents
Yes 58
No 42
Interpretation:
The answer of the respondents give idea about the awareness of the promotional schemes offered
in the market on their existing soaps and detergents.
In this situation more then 40% of the people are not aware or having vague idea about the
promotional schemes running into the market.
It shows that people are not much aware of the schemes which continue in the market it may be
because of the present stock of the product at their place.
0 10 20 30 40 50 60
YES
NO
Series 1
Column1
Column2
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Q8. If yes, please specify?
Particulars Respondents
3+1/Other
Free 36Discount 22
No idea 6
No answer 36
Interpretation:
This question supports the above question. It enlists the answers of those customers who areaware of the present schemes offered in the market and also those schemes which are more
demanded in the market.
The result shows that 1+1 or 2+1 or other free schemes are more demanded and more aware
schemes in the market. So manufacturers may go for the same at the time of launching their
product.
0
5
10
15
20
25
30
35
40
3+1/other FreeDiscount
No IdeaNoAnswer
Series 1
Series 2
Series 3
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Q9. If you get an attractive promotional offer in the product other then ofyour choice will you switch over?
Particulars Respondents
Yes 73
No 27
Interpretation:
It shows the level of brand loyalty among the consumers. The result clearly shows that out of 100,
73 people are ready to switch over to another brand if they find better promotional schemes which
suits their budget means more qyt + less cost + quality.
Combination of all these schemes will run better in the market.
YES
NO
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Q10. Give reason for the same?
Particulars Respondents
Cost+qty 16
Quality 17
Satisfaction 2
Brand loyal 5
More benefit/budget 22
Season change 2
No answer 36
Interpretation:
Above question it gives specific reasons for switching too other products. It shows that extra
quantity with less or same price, more satisfaction, quality and other factors influence consumers
to switch over too other brands.
0
5
10
15
20
25
30
35
40
Column2
Column1
Series 1
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Q11. Since how long are you in this business?
Particulars Respondents
1-5 Years 24
5-10 Years 27
More than 10 years 49
Interpretation:
This question gives idea about the benefit to the retailers who are on the market from long period of time and the
benefits they are getting more as compare to others. It also shows their experience in the field and the services they
are providing too their new and regular customers. It also gives idea about the benefits they are gaining for
wholesalers and direct from the company.
0
5
10
15
20
25
30
35
40
45
50
1-5years 5-10years More than 10years
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Q12. Name the Soap / Detergent (Company) you stock for.
Companies Respondents
Nirma 96
HUL 100
P&G 90
Godrej 94
Others 68
Interpretation:
It gives idea about the capacity of the retailers to stock the goods and also the variety of the products they are
stocking. It will also make clear the demand of the goods in their stores and the selling of the product in market. Most
of the retailer stocks all types of soap and detergent.
0
10
20
30
40
50
60
70
80
90
100
Nirma Hul P&G Godrej Others
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Q13. Rank the following factors that customers look for in the purchaseof Soap / Detergent. (Rank from 1 to 6)
Factors 1 2 3 4 5 6
Fragrance 3 24 33 22 10 8
Quality 66 23 7 3 1 0
Company Image 9 18 34 24 11 4
Price 17 28 24 16 6 9
Packaging 4 5 2 27 38 24
Others 1 2 0 8 34 55
Interpretation:
It gives an idea about the priority the influencing factors too the consumers and also the weight age of that factor over
other factors.
In the above result people are more quality and price oriented. On the other hand people are also conscious about the
company image. Because sometimes the consumer remember that name of the product by the company name and
also from the past performance of that company. Fragrance and packaging are not influencing factor as per the
respondents.
0
10
20
30
40
50
60
70
Factors Fragrance Quality Company
Image
Price Packaging
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Factors 1 2 3 4 5 6
Fragrance 11 17 41 21 7 3
Quality 43 34 16 6 1 0
CompanyImage 13 16 27 26 11 7
Price 27 28 14 9 6 16
Packaging 6 5 2 33 43 11
Others 0 0 0 5 32 63
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Factors Fragrance Quality Company
Image
Price Packaging Others
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Interpretation :
It gives an idea about the priority the influencing factors too the consumers and also the weight age of that factor over
other factors.
In the above result people are more quality and price oriented. On the other hand people are also conscious about thecompany image. Because sometimes the consumer remembers that name of the product by the company name and
also from the past performance of that company. Fragrance and packaging are also play important role for purchasing
detergent powder.
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Q14. Do you suggest customers to purchase a certain brand?
Particular Respondents
Yes 33
No 67
Interpretation:
This could be a very help question to understand the role of retailers in the purchase decision.
In above graph 67% of retailer are not suggest to purchase particular brand because of personal relation or that
customer are brand loyal. While 33% of the retailer are suggesting the consumers to buy particular brand. There could
be many reasons like, extra margin, relations with consumers and quality of the products which retailer may get the
benefit of the same.
0
10
20
30
40
50
60
70
80
YES NO
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Q15. If Yes why?
Particular Respondents
High margin 9
Quality 17
Relationship 7
No reason 67
Interpretation:
it gives idea about the reasons why retailers suggest the consumers to buy particular brand.
In above graph and table it is clear that for margin and of better relations with consumers and too provide quality
product to consumers they suggest consumers too bye particular brand. For the company it may be helpful to target
such retailers to sell their product in the market easily.
High Margin
Quality
Relationship
No Reason
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Q16. Do customers look for various schemes in the product?
Particular Respondents
Yes 92
No 8
Interpretation:
This gives a real helpful data for checking the effect of sales promotions in the market and how seriously consumers
follow the promotions before they go for purchase particular brand.
The above result shows that only 8 out 0f 100 didnt go for the promotion otherwise all are looking forany type of the
promotions on the product.
0 20 40 60 80 100
YES
NO
Series 1
Column1
Column2
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Q17. If yes which schemes?
Promotional
SchemesRespondents
Coupons 11
Price Off 82
Freebies 35
Scratch Cards 2
Lucky Draws 19
Bundling Offer 65
Extra Quantity 79
Interpretation:
The above stated results show the demand of various types of promotional schemes in the market by the consumers.
Almost all types of schemes are being demanded by the consumers in the market but there are three major schemes
which consumers generally look at the time of purchase or before that.
Price off, product bundling and extra quantity are more demanded by the consumers over others schemes.
0
0.2
0.4
0.6
0.8
1
1.2
0
10
20
30
40
50
60
70
80
90
Coupons Price O ff Freebies Scratch
Cards
Lucky
Drawa
Bundlings
offer
Extra
Quantity
Column1
Column2
Column3
Column4
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Q18. Which Trade Promotions do various companies offer?
NIRMA
Promotions Respondents
ExtraMargin 46
Extra Units 34
creditfacility 55
Gifts 24
promo. Exp. 8
H0: Effect of trade promotions for all four brands is similar.
H1: Effect of trade promotions for all four brands is not similar.
Interpretation:
From the above graph shows the trade promotions offered by the NIRMA Ltd to the retailers to attract them towards
stocking their goods and also stop them switching them too other major players in the market.
NIRMA is mainly offering credit facility which is offered by all major players it may differ in the time limit of the credit. It
0
10
20
30
40
50
60
Extra MarginExtra Units
Credit FacilityGifts
Promo.Exp
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is also providing extra margin, and units with occasional gift with their schemes.
HUL
Promotions Respondents
Extra Margin 47
Extra Units 34
Creditfacility 58
Gifts 25
Promo. Exp. 22
Interpretation:
The advantage of HLL over NIRMA is that it bare promotional expenses which NIRMA is not doing. It attracts more
consumers through such promotions, such as display of the product, banners etc.
So this may help it to attract more retailers. It may because of its less cost of production in other segments in which
nirma is not operating.
Extra Margin
Extra Units
Credit facility
Gifts
Promo.Exp
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P & G
Promotions Respondents
Extra Margin 40
Extra Units 33
Creditfacility 55
Gifts 20
Promo. Exp. 12
Interpretation:
P&G is also a big player in the FMCG market. It is also providing all the facilities which others are providing to retailers.
0% 20% 40% 60% 80% 100%
Extra Margins
Extra Units
Credits Facility
Gifts
Promo.Exp
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GODREJ
Promotions Respondents
Extra Margin 46
Extra Units 32
Credit facility 57
Gifts 19
Promo. Exp. 18
Interpretation:
Godrej is a big player in the FMCG market. It is also providing all the facilities which others are providing to retailers.
But it is lacking in bearing expenses which HUL is providing to maximum number of retailers.
0
10
20
30
40
50
60
Extra Margins Extra Units Credit Facility Gifts Promo.Exp
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OTHERS
Promotions Respondents
ExtraMargin 30
Extra Units 18
Creditfacility 38
Gifts 15
Promo. Exp. 7
Interpretation:
Others include local players, as well as we established players like, wipro but their products are not in demand likeother players but still they are providing all the facilities to retailers to attract towards stocking their products.
Extra Margin
Extra Units
Credit Facility
Gifts
Promo.Exp
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Q19. Give suggestions about futuristic promotional schemes?
This show the consumers future expectations from the whether company to come with new
schemes or continue with present one. It shows consumers demand which the manufacturers have
to meet.
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FINDINGS OF THE REPORT:
Sales Promotion, a short-term inducement, offered to a consumer or trade has gained
momentum as a promotional tool world over. It represents nearly three fourth of the
marketing budget at most consumer product companies. Sales promotions can enhance
consumers self-perception of being smart or a good shopper
Quality as the most influencing factors in the purchase decision while price is also an
important for purchase decision. Schemes always attract more and more consumers
towards particular brand. Simultaneously it gives idea about the factors which consumers
look most in the product before they make final decision
Price off and extra quantity is the two main offers/schemes which consumers have came
across at the time of purchase
TV as the best media to market the product which will cover majority of the viewer ship.
On the second place it shows news papers as the media to promote the product in the
market
People are not much aware of the schemes which continue in the market it may be because
of the present stock of the product at their place.
1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the
market. People are ready to switch over to another brand if they find better promotional
schemes which suits their budget means more qyt + less cost + quality.Extra quantity withless or same price, more satisfaction, quality and other factors influence consumers to
switch over too other brands.
Retailer stocks all types of soap and detergent because of competition.People are more
quality and price oriented. Consumer remember that name of the product by the company
name and also from the past performance of that company.
Consumer remembers that name of the product by the company name and also from the
past performance of that company. Retailers are not suggest to purchase particular brand
because of personal relation or that customer are brand loyal
Margin and of better relations with consumers and too provide quality product to
consumers they suggest consumers too bye particular brand. Customers are looking for
any type of the promotions on the product before them going to purchase.
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Price off, product bundling and extra quantity are more demanded by the consumers over
others schemes.
NIRMA is mainly offering credit facility which is offered by all major players it may
differ in the time limit of the credit. HUL attracts more consumers through such
promotions, such as display of the product, banners etc.
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SUGGESTIONS
1. Since sales figures showing noticeable growth on special offers, consumers should be
made aware about the various available offers on a regular basis through better coverage.
2. The offers given should be of quality products and conditions should be under profit to
consumer.
3. The offers should be for the whole day.
4. More details should be included in the advertisements about the sales promotion of
Deccan Solutions
5. Discount offer can be allocated for a single piece rather than using the offers like buy one
get one.
6. The availability of the branded product should be heterogeneous.
7. The offer should be available to all the products in Deccan Solutions.
8. The offers should be frequent.
9. Offers should be at the level of middle class people.
10. Since the special offer has made a great impact over the departments they can adopt this
strategy in the future concepts.
11. Consideration should be given to discount offers.
12. As the customer gives more weight age to the quality, it can be taken as a main
promotional feature for the products.
13. The coverage should be well extended since it has been the major issue related to salespromotion activities
14. Signages can be positioned is those area (entry and exit) as such the customers can easily
come to know about the offers for the different products and it should be more clear.
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CONCLUSION
The study reflects that the use of sales promotion undeniably has increased over the years in
India. Future holds lot of promise for such schemes across wider range of product-markets.
Sales Promotion has ceased to be major differentiator at least in the metros, with almost all
companies offering similar freebies and gifts. As a result now marketers have to find out some
innovative ways of sales promotion to differentiate from competitors. Currently Price off and Bye
one get one free offers are very effective to attract the consumers towards the products.
We have noted that these kind of promotional tools are useful for short term increase in sales and
to induce first trial. These types of promotional schemes should be consistent and changed from
time to time depending upon season and competitors schemes.
With the Increasing number of supermarket, the branded packaged goods work as silent sales
person. So in such stores, sales promotion plays a more effective role in stimulating consumers
demands.
One of the very important facts we came to know from this project is that sale of goods which
contain large quantity and having big packaging e.g. detergent are stagnating because consumer
prefer to buy small pack goods, the reasons are: small pack goods reduce risk of bad quality, It
had low cost or say price, and last but important factor i.e. mentality to purchase just to try first.
Sales of small pack goods are quite high, but from the companys point of view small pack goodsis less profitable compare to large pack goods.
So here marketer tries to increase sales of large pack goods by using sales promotion tactics like
price off and percentage extra
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APPENDICES:-
Q1. Which brand of Soap / Detergent do you use?
Q2. Do you always buy the same brand of Soap / Detergent?
Particulars Respondent
Yes
No
Q3. Which factors do you normally consider while purchasing a particular brand of Soap /Detergents?
FactorsBathingsoap Det.powder
Fragrance
Quality
Company image
Price
Detergent powder Respondent
Nirma supper
Wheel
Surf
Ariel
Others
Bathingsoaps Respondent
Lux
Hamam
Lifebuoy
Nirma
Others
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Packaging
Others
Q4. Do you consider promotional schemes while purchasing a particular brand of Soap /Detergent?
Particulars Respondent
Yes
No
Q5. Which of the following promotional schemes you have come across so far?
Promotionalschemes Respondent
Coupons
price off
Freebies
scratch cards
lucky draw
Bundling
extra qty.Q6. Which medium do you feel is suitable to promote the various promotional schemes?
Source Respondent
Radio
TV
Newspaper
Hoarding
Others
Q7. Is there any existing scheme on the Soap / Detergent you are currently using?
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Particulars Respondent
Yes
No
Q8. If yes, please specify?
Particulars Respondent
3+1/OtherFree
Discount
No idea
No answer
Q9. If you get an attractive promotional offer in the product other than of your choice willyou switch over?
Particulars Respondent
Yes
No
Q10. Give reason for the same?
Particulars Respondent
Cost+qty
Quality
Satisfaction
Brand loyal
Morebenefit/budget
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Season change
No answer
Q11. Since how long are you in this business?
Particulars Respondents
1-5 Years 24
5-10 Years 27
More than 10 years 49
Q12. Name the Soap / Detergent (Company) you stock for.
Companies Respondents
Nirma 96
HUL 100
P&G 90
Godrej 94
Others 68
Q13. Rank the following factors that customers look for in the purchase ofSoap / Detergent. (Rank from 1 to 6)
Factors 1 2 3 4 5 6
Fragrance 3 24 33 22 10 8
Quality 66 23 7 3 1 0
Company Image 9 18 34 24 11 4
Price 17 28 24 16 6 9
Packaging 4 5 2 27 38 24
Others 1 2 0 8 34 55
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Factors 1 2 3 4 5 6
Fragrance 11 17 41 21 7 3
Quality 43 34 16 6 1 0
CompanyImage 13 16 27 26 11 7
Price 27 28 14 9 6 16
Packaging 6 5 2 33 43 11
Others 0 0 0 5 32 63
Q14. Do you suggest customers to purchase a certain brand?
Particular Respondents
Yes 33
No 67
Q15. If Yes why?
Particular Respondents
High margin 9
Quality 17
Relationship 7
No reason 67
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Q16. Do customers look for various schemes in the product?
Particular Respondents
Yes 92
No 8
Q17. If yes which schemes?
Promotional
SchemesRespondents
Coupons 11
Price Off 82
Freebies 35
Scratch Cards 2
Lucky Draws 19
Bundling Offer 65
Extra Quantity 79
Q18. Which Trade Promotions do various companies offer?
NIRMA
Promotions Respondents
ExtraMargin 46
Extra Units 34
credit
facility 55
Gifts 24
promo. Exp. 8
H0: Effect of trade promotions for all four brands is similar.
H1: Effect of trade promotions for all four brands is not similar.
7/29/2019 Customer Sales Promotionjjgjgf
64/65
64
Q19. Give suggestions about futuristic promotional scheme
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65/65
BIBLIOGRAPHY
BOOKS
Philip Kotler, Marketing Management, 11th edition, Pearson education Asia
Publication.C.R.Kothari, Research Methodology methods & techniques, New AgeInternational(p)ltd.publishers,2ndedition.
WEBSITES
http://www.nirma.co.in_fileshttp://www.hul.co.in_fileshttp://www.pg-india_fileshttp://www.godrej_files