ROLE OF SALES PROMOTION ON FMCG

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

Degree
PROJECT GUIDE:
DR .ANWAR
SUBMITTED BY:
HIBU
HUSSU
SUBMITTED TO:
SMS K
Date:
PREFACE
In this age of globaliation h!"e# $o%"etition has be$o%e a #eg&la# feat&#e' To(a! the %a#)ets
a#e no less then battleg#o&n(s an( one has to st#i*e *e#! ha#( fo# s&#*i*al an( g#o+th'
D&e to *e#! #a"i( in(&st#ialiation all o*e# the +o#l( the (e%an( fo# the %anage#ial "e#sonnel
an( the a(%inist#ati*e "e#sonnel has in$#ease(' The "e#fe$t st&(! of Manage%ent in*ol*es both the
theo#eti$al as +ell as "#a$ti$al as"e$ts' To s&#*i*e in this highl! $o%"etiti*e %a#)et P#a$ti$al
Kno+le(ge, is as #ele*ant as the Theo#eti$al'
The signifi$an$e of MB- Deg#ee is that the Theo#eti$al as"e$ts. +hi$h a st&(ent lea#ns
th#o&gho&t the !ea# in the $lass sessions. $an be "#a$ti$all! a""lie( th#o&gh (iffe#ent "#o/e$ts. +hi$h
one &n(e#ta)es' Kee"ing in t&ne +ith this (o$t#ine. +e ha*e t#ie( to a""l! theo#eti$al as"e$ts th#o&gh
o&t the "#o/e$t. +hi$h +e lea#ne( &n(e# the $o&#se of %anage%ent'
In this "#o/e$t %o#e e%"hasie gi*en to the *a#io&s tools of sales "#o%otion an( its i%"a$t on
$ons&%e#s b&!ing (e$isions' -$t&all! in #e$ent t#en( to so%e e0tent this te$hni1&e also be$o%e *i$ti%
of $l&tte#. e*en tho&gh it $an be eli%inate( b! gene#ating inno*ati*e an( %o#e att#a$ti*e tools to l&#e
the $&sto%e#s'
2o+ a (a! %ost of the 3MCG $o%"anies $onsi(e#ing sales "#o%otion as an i%"o#tant "a#t of thei#
%a#)eting st#ateg!' 3#o% the anal!sis of s&#*e! it be$o%es $lea# that $ons&%e#s (o #es"onse to the
sales "#o%otion $a%"aign. b&t the#e a#e $&sto%e#s +ho st#ongl! "#efe# to sti$) to b#an( na%e'
'
ACKNOWLEDGEMENT
Executie Su!!a"#
-s a "a#t of o&# st&(! $&##i$&l&% it is ne$essa#! to $on(&$t a g#an( "#o/e$t' It "#o*i(es &s an
o""o#t&nit! to &n(e#stan( the "a#ti$&la# to"i$ in (e"th an( +hi$h lea(s to th#o&gh to that to"i$' M!
to"i$ fo# the g#an( "#o/e$t is title( as St&(! of $ons&%e# o#iente( sales "#o%otion in 3MCG se$to#, in
+hi$h e%"hasis gi*en to the effe$t of sales "#o%otion on b&!ing habits of $ons&%e#s'
To sta#t +ith +e +ill gi*e b#ief info#%ation #ega#(ing 3MCG se$to# then %o*ing to the %ain
to"i$ +e +ill e0"lain +hat is to"i$ is all abo&t' P#o%otion is one of the "illa#s of %a#)eting %i0 an(
sa%e +a! sales "#o%otion is also one of the ele%ents of "#o%otion'
4ith #es"e$t to $ons&%e# o#iente( sales "#o%otion the#e a#e $e#tain theo#ies na##ate( as o"e#ant
$on(itioning an( "#o/e$ti*e theo#!' Base( on se$on(a#! so&#$e $e#tain theo#eti$al as"e$ts a#e also
in$l&(e( as a "a#t of st&(!'
Then afte# $on$ent#ation is gi*en to the "#i%a#! #esea#$h' It in$l&(es the anal!sis an( #es&lts of
s&#*e! +hi$h +as fo$&ses on $ons&%e#5s beha*io# to+a#(s sales "#o%otion $a%"aign' The s&#*e! +as
$on(&$te( +ith the hel" of st#&$t&#e( 1&estionnai#e'
-t last $on$l&sion of #e"o#t. fin(ings an( s&ggestions +as gi*en base( on st&(! of se$on(a#!
so&#$e as +ell as "#i%a#! #esea#$h'
INDE$
S".N%. TOPICS Pa&e
N%.
'. Re(ea"c) Met)%*%+%&# %, t)e (tu*# 6
-. I.t"%*ucti%. 7
/. I.t"%*ucti%. t% t)e t%0ic 89
1. Sa+e( 0"%!%ti%. (t"ate&ie( :;
2. SWOT A.a+#(i( :<
3. Data A.a+#(i( %, t)e (u"e# =9
4. Fi.*i.&( %, t)e "e0%"t 68
5. Rec%!!e.*ati%.( 6=
6. Li!itati%.( 6>
'7. E!e"&i.& T"e.*( 66
''. C%.c+u(i%. 6?
'-. Bi8+i%&"a0)# 67
'/. A..exu"e: 9ue(ti%..ai"e 6<
RESEARCH METHODOLOG:
Re(ea"c) O8;ectie(:
8' To st&(! $ons&%e# "#efe#en$es +ith #es"e$t to sales "#o%otion in 3MCG se$to#'
:' To e0a%ine t#a(eoffs. #elati*e i%"o#tan$e of (iffe#ent att#ib&tes +hile #es"on(ing to a sales
"#o%otion offe#'
=' To st&(! the effe$t of sales "#o%otions in 3MCG se$to# es"' in soa"s an( (ete#gent in(&st#!'
;' To st&(! $ons&%e# beha*io# in "&#$hase of soa"s an( (ete#gent
P"%*uct cate&%"ie( u.*e" (tu*#
DETERGENTS: 4ashing Po+(e# fo# Clothes
TOILETERIES Soa"s
Re(ea"c) De(i&.
Resea#$h (esign sele$te( fo# this "#o/e$t is Des$#i"ti*e'
Data c%++ecti%. Met)%*:
'. P"i!a"# Data C%++ecti%. Met)%*:
S&#*e! %etho( +as &se( fo# "#i%a#! (ata $olle$tion'
4e &se( 1&estionnai#e as an inst#&%ent fo# s&#*e! %etho('
St#&$t&#e( 1&estionnai#e'
T!"e of 1&estionnai#e: O"en en(e( an( $lose( en(e('
-. Sec%.*a"# Data C%++ecti%. !et)%*:
Refe#en$e boo)s'
Inte#net'
Sa!0+i.& Detai+
8' Ta#get "o"&lation: The "o"&lation fo# this #esea#$h st&(! $onsists of the #esi(en$e of
-h%e(aba('
:' Sa%"ling &nit: In this st&(! the sa%"ling &nit is in(i*i(&al $ons&%e#'
=' Sa%"le sie: '77 $ons&%e#s '77 #etaile#s'
;' Sa%"ling %etho(: The sa%"le is sele$te( b! &sing $on*enien$e@sa%"ling %etho('
I.t"%*ucti%.
FMCG C%.ce0t a.* De,i.iti%.:
The te#% 3MCG Afast %o*ing $ons&%e# goo(sB. altho&gh "o"&la# an( f#e1&entl! &se( (oes not ha*e a
stan(a#( (efinition an( is gene#all! &se( in In(ia to #efe# to "#o(&$ts of e*e#!(a! &se' Con$e"t&all!.
ho+e*e#. the te#% #efe#s to #elati*el! fast %o*ing ite%s that a#e &se( (i#e$tl! b! the $ons&%e#' Th&s. a
signifi$ant ga" e0ists bet+een the gene#al &se an( the $on$e"t&al %eaning of the te#% 3MCG'
3&#the#. (iffi$&lties $#o" &" +hen atte%"ts to (e*ise a (efinition fo# 3MCG' The "#oble% a#ises
be$a&se the $on$e"t has a #etail o#ientation an( (isting&ishes bet+een $ons&%e# "#o(&$ts on the basis
of ho+ 1&i$)l! the! %o*e at the #etaile#5s shel*es' The %oot 1&estion the#efo#e. is +hat in(&st#!
t&#na#o&n( th#eshol( sho&l( be fo# the ite% to 1&alif! as an 3MCG' Sho&l( the t&#na#o&n( ha""en
(ail!. +ee)l!. o# %onthl!C
One of the fa$to#s on +hi$h the t&#na#o&n( (e"en(s is the "&#$hase $!$le' Do+e*e#. the "&#$hase $!$le
fo# the sa%e "#o(&$t ten( to *a#! a$#oss "o"&lation seg%ents' Man! lo+@in$o%e ho&sehol(s a#e fo#$e(
to b&! $e#tain "#o(&$ts %o#e f#e1&entl! be$a&se of la$) of li1&i(it! an( sto#age s"a$e +hile #elati*el!
high@in$o%e ho&sehol(s b&! the sa%e "#o(&$ts %o#e inf#e1&entl!' Si%ila#l!. the "&#$hase $!$le also
ten(s to *a#! be$a&se of $&lt&#al fa$to#s' Most In(ians. t!"i$all!. "#efe# f#esh foo( a#ti$les an( the#efo#e
to b&! #elati*el! s%all 1&antities %o#e f#e1&entl!' This is in sha#" $ont#ast +ith +hat ha""ens in %ost
+este#n $o&nt#ies. +he#e the "#a$ti$e of b&!ing an( so$)ing foo(s fo# #elati*el! longe# "e#io( is %o#e
"#e*alent' Th&s. sho&l( the in*ento#! t&#na#o&n( th#eshol( be &ni*e#sal. o# sho&l( it allo+ fo# in$o%e.
$&lt&#al an( beha*io#al n&an$esC
C)a"acte"i(tic( %, FMCG P"%*uct(:
In(i*i(&al ite%s a#e of s%all *al&e' B&t all 3MCG "#o(&$ts "&t togethe# a$$o&nt fo# a
signifi$ant "a#t of the $ons&%e#Es b&(get'
The $ons&%e# )ee"s li%ite( in*ento#! of these "#o(&$ts an( "#efe#s to "&#$hase the%
f#e1&entl!. as an( +hen #e1&i#e(' Man! of these "#o(&$ts a#e "e#ishable'
The $ons&%e# s"en(s little ti%e on the "&#$hase (e$ision' Ra#el! (oes heFshe loo) fo#
te$hni$al s"e$ifi$ations Ain $ont#ast to in(&st#ial goo(sB' B#an( lo!alties o# #e$o%%en(ations
of #eliable #etaile#F(eale# (#i*e "&#$hase (e$isions'
T#ial of a ne+ "#o(&$t i'e' b#an( s+it$hing is often in(&$e( b! hea*! a(*e#tise%ent.
#e$o%%en(ation of the #etaile# o# neighbo#sFf#ien(s'
These "#o(&$ts $ate# to ne$essities. $o%fo#ts as +ell as l&0&#ies' The! %eet the (e%an(s of
the enti#e $#oss se$tion of "o"&lation' P#i$e an( in$o%e elasti$it! of (e%an( *a#ies a$#oss
"#o(&$ts an( $ons&%e#s'
I.t"%*ucti%. t% t)e t%0ic
I.t"%*ucti%.:
The i%"o#tan$e of $ons&%e# sales "#o%otion in the %a#)eting %i0 of the fast %o*ing $ons&%e# goo(s
A3MCGB $atego#! th#o&gho&t the +o#l( has in$#ease(' Co%"anies s"en( $onsi(e#able ti%e in "lanning
s&$h a$ti*ities' Do+e*e#. in o#(e# to enhan$e the effe$ti*eness of these a$ti*ities. %an&fa$t&#e#s sho&l(
&n(e#stan( $ons&%e# an( #etaile# inte#"#etations of thei# "#o%otional a$ti*ities' The st&(! he#e "e#tains
to $ons&%e#5s "e#$e"tions #ega#(ing sales "#o%otion' So%e "ast #esea#$hes ha*e s&ggeste( that
"#o%otion itself has an effe$t on the "e#$ei*e( *al&e of the b#an(' This is be$a&se "#o%otions "#o*i(e
&tilita#ian benefits s&$h as %oneta#! sa*ings. a((e( *al&e. in$#ease( 1&alit! an( $on*enien$e as +ell as
he(oni$ benefits s&$h as ente#tain%ent. e0"lo#ation an( self@e0"#ession'
B#oa(l! s"ea)ing %ost of the $o%"anies &sing Ma#)eting Mi0 +hi$h in$l&(esG
P#i$e
Pla$e AChannel of Dist#ib&tionB
P#o(&$t
P"%!%ti%.
These a#e the fo&# basi$ "illa# of %a#)eting %i0' Most of the %a#)eting st#ategies a#e b&ilt on the basis
of these $#ite#ia'
P#o%otion is one of the i%"o#tant ele%ents of %a#)eting %i0' The#e a#e so %an! ele%ents of
"#o%otion s&$h as G
-(*e#tising
Di#e$t Ma#)eting
P&bli$ Relations
Sa+e( P"%!%ti%.
T#a(itionall!. sales P#o%otions ha*e been &se( b! %a#)ete# to in$#ease sales in the sho#t te#%'
Do+e*e#. in the last fe+ (e$a(es this $o%%&ni$ation tool has e*ol*e( an( no+ is $onsi(e#e( f#o% a
st#ategi$ "oint of *ie+' 3o# this #eason. it is ne$essa#! to #ealie ne+ st&(ies in this a#ea an( st&(! ho+
$ons&%e#s e*al&ate sales "#o%otions'
Sales "#o%otions ha*e g#o+n in both i%"o#tan$e an( f#e1&en$! o*e# the "ast fe+ (e$a(es' -ltho&gh an
a$$&#ate esti%ate fo# total sales "#o%otions e0"en(it&#es (oes not e0ist. +e $an be s&#e that the t#en( is
&"'
Sales "#o%otion se#*es th#ee essential #oles: It info#%s. "e#s&a(es an( #e%in(s "#os"e$ti*e $&sto%e#s
abo&t a $o%"an! an( its "#o(&$ts' E*en the %ost &sef&l "#o(&$t o# b#an( +ill be a fail&#e if no one
)no+s that it is a*ailable' -s +e )no+. $hannels of (ist#ib&tion ta)e %o#e ti%e in $#eating a+a#eness
be$a&se a "#o(&$t has to "ass th#o&gh %an! han(s bet+een a "#o(&$e# an( $ons&%e#s'
The#efo#e. a "#o(&$e# has to info#% $hannel %e%be#s as +ell as &lti%ate $ons&%e#s abo&t the
att#ib&tes an( a*ailabilit! of his "#o(&$ts' The se$on( "&#"ose of "#o%otion is "e#s&asion' The $&t
th#oat $o%"etition a%ong (iffe#ent "#o(&$ts "&ts t#e%en(o&s "#ess&#e on thei# %an&fa$t&#e#s an( the!
a#e $o%"elle( to &n(e#ta)e sales "#o%otion a$ti*ities' The thi#( "&#"ose of "#o%otion is #e%in(ing
$ons&%e#s abo&t "#o(&$ts a*ailabilit! an( its "otential to satisf! thei# nee(s'
3#o% these ele%ents Sales P#o%otion is the ele%ent +hi$h is in the fo$&s of this "#o/e$t' 3&#the# Sales
P#o%otion is 1&ite b#oa( te#% it in$l&(es G
C%.(u!e" O"ie.te* Sa+e( P"%!%ti%.
T"a*e O"ie.te* Sa+e( P"%!%ti%.
C%.(u!e" O"ie.te* Sa+e( P"%!%ti%.
Cons&%e# O#iente( Sales P#o%otion is the %ain to"i$ of this "#o/e$t' De#e e%"hasie is gi*en to
%oti*ate $ons&%e# to in$#ease sales' Cons&%e# O#iente( Sales P#o%otion in$l&(es Sa%"ling.
Co&"oning. P#e%i&%s. Contest. Ref&n(s. Rebates. Bon&s Pa$)5s. P#i$e@off. E*ent %a#)eting et$'
De,i.iti%.:
3o# the "&#"ose of this st&(!. follo+ing (efinitions of sales "#o%otion +e#e )e"t in %in('
Kotle# (efines sales "#o%otion as: Sales "#o%otion $onsists of a (i*e#se $olle$tion of in$enti*e tools.
%ostl! sho#t@te#% (esigne( to sti%&late 1&i$)e# an(Fo# g#eate# "&#$hase of "a#ti$&la# "#o(&$tsFse#*i$es
b! $ons&%e#s o# the t#a(e',
Roge# St#ang has gi*en a %o#e si%"listi$ (efinition i'e' sales "#o%otions a#e sho#t@te#% in$enti*es to
en$o&#age "&#$hase o# sales of a "#o(&$t o# se#*i$e',
Den$e. an! fo#%s of in$enti*es A"#i$e $&t o# *al&e a((e( nat&#eB offe#e( fo# sho#t "e#io( eithe# to t#a(e
o# $ons&%e#s a#e $onsi(e#e( as sales "#o%otion a$ti*ities'
Ma"<ete"=( u(e( c%.(u!e" %"ie.te* (a+e( 0"%!%ti%. t%%+( ,%" t)e ,%++%>i.& "ea(%.(:
To in$#ease sho#t te#% sales
To in(&$e t#ial
To #e(&$e in*ento#!
To establish a b#an( na%e
To %a)e $#oss selling
To $o"e &" +ith $o%"etition
To a*oi( a(*e#tising $l&tte#
T%%+( %, C%.(u!e" O"ie.te* Sa+e( P"%!%ti%.:
The#e a#e so %an! tools o# te$hni1&e a*ailable to the %a#)ete#s fo# a$hie*ing ob/e$ti*e of sales
"#o%otion' These tools sho&l( be &se( $onsi(e#ing all othe# fa$to#s affe$ting s&$h as $ost. ti%e.
$o%"etito#s. a*ailabilit! of goo(s et$' These tools a#e as &n(e#G
8' Co&"ons
:' P#i$e@Off
=' 3#eebies
;' S$#at$h Ca#(s
>' H&$)! D#a+s
6' B&n(ling Offe#
?' E0t#a I&antit!
Het5s ha*e loo) at ea$h toolG
'. C%u0%.(:
Co&"on is the ol(est an( %ost +i(el! &se( +a! of sales "#o%otion' Co&"ons ha*e been &se( sin$e
87<>' It is %ostl! &se( b! "a$)age( goo(s' It is +o#th+hile to &se $o&"on as a "#o%otion tool be$a&se
(ata sho+s that %a#)et fo# "a$)age( goo(s in$#ease( f#o% 86 billion in 8<67 to =89 billion in 8<<;' To
boost &" the sales not onl! %an&fa$t&#e# b&t #etaile#s "e#sonall! $an also &se(' - $o&"on lea(s to "#i$e
#e(&$tions so as to en$o&#age "#i$e sensiti*e $&sto%e#s' 2on &se#s $an t#! a "#o(&$t +hi$h %a! lea(s
to #eg&la# sales'
-. P"ice?%,,:
- "#i$e@off is si%"l! a #e(&$tion in the "#i$e of the "#o(&$t to in$#ease sales an( is *e#! often &se(
+hen int#o(&$tion a ne+ "#o(&$t' - #e(&$tion in "#i$e al+a!s in$#eases sales b&t the &se of this
te$hni1&e sho&l( be $a#ef&ll! $onsi(e#e( in the $&##ent %a#)et sit&ation'
P#i$e@off is the %ost "#efe##e( sales "#o%otion te$hni1&e be$a&se $ons&%e#s #es"onse *e#! "ositi*el!
to this s$he%e' 2ot onl! that b&t it also $a&se la#ge in$#ease in sales *ol&%e' P#i$e@off #e(&$tions a#e
t!"i$all! offe#e( tight on the "a$)age th#o&gh s"e$iall! %a#)e( "#i$e "a$)s' E'g' K#a$) Ja$) offe#s
=9J P#i$e@off'
/. F"ee8ie(
3#eebies a#e a "o"&la# fo#% of %o(e#n %a#)eting an( a#e so%e of the best things abo&t the inte#net'
The (efinition of f#eebies is "#o(&$ts o# se#*i$es gi*en a+a! fo# f#ee at no $ost to the $ons&%e#' 4ell
that5s the (efinition +e $a%e &" +ith' I a% a ba#gain f#eebie sho""e#. "#ett! %&$h going fo# an! f#ee
"#o(&$t an( info#%ing e*e#!one abo&t it'
-t (iffe#ent ti%es. big an( s%all $o%"anies often gi*e a+a! "#ies an( %one! +hi$h is too goo( to be
t#&e' Often it5s in the "&#s&it of %o#e $&sto%e#s o# a la#ge# fan base an( it often +o#)s'
1. Sc"atc) Ca"*(
- s$#at$h $a#( Aalso $alle( a s$#at$h off. s$#at$h ti$)et. s$#at$he#. s$#at$hie. s$#at$h@it. s$#at$h ga%e.
s$#at$h@an(@+in o# instant ga%eB is a s%all to)en. &s&all! %a(e of $a#(boa#(. +he#e one o# %o#e a#eas
$ontain $on$eale( info#%ation: the! a#e $o*e#e( b! a s&bstan$e that $annot be seen th#o&gh. b&t $an be
s$#at$he( off'
2. Bu.*+i.& O,,e"(
P#o(&$t b&n(ling is a %a#)eting st#ateg! that in*ol*es offe#ing se*e#al "#o(&$ts fo# sale as one
$o%bine( "#o(&$t' This st#ateg! is *e#! $o%%on in the soft+a#e b&siness Afo# e0a%"le: b&n(le a +o#(
"#o$esso#. a s"#ea(sheet. an( a (atabase into a single offi$e s&iteB. in the $able tele*ision in(&st#! Afo#
e0a%"le. basi$ $able in the Unite( States gene#all! offe#s %an! $hannels at one "#i$eB. an( in the fast
foo( in(&st#! in +hi$h %&lti"le ite%s a#e $o%bine( into a $o%"lete %eal' - b&n(le of "#o(&$ts is
so%eti%es #efe##e( to as a "a$)age (eal o# a $o%"ilation o# an antholog!'
Fact%"( I.,+ue.ci.& C%.(u!e" O"ie.te* (a+e( 0"%!%ti%.:
Mainl! fo&# fa$to#s sho&l( be ta)en into a$$o&nt +hile (ete#%ining the sales "#o%otion "#og#a%'
K Ta#get %a#)et
K 2at&#e of "#o(&$t
K Stage of "#o(&$t life $!$le
K B&(get a*ailable fo# "#o%otion
a
'. Ta"&et Ma"<et:
4hile (oing sales "#o%otion. %a#)ete# %&st )no+ +ho thei# ta#get %a#)et isL othe#+ise the#e is no &se
of all effo#t be$a&se it lea(s to no +he#e' - ta#get %a#)et $an be in an! of the stages of b&!ing
hie#a#$h! i'e' a+a#eness. )no+le(ge. li)ing. "#efe#en$es. $on*i$tion an( "&#$hase' Ea$h stage (efines a
"ossible goal of "#o%otion'
-. Natu"e %, t)e 0"%*uct:
The#e a#e *a#io&s "#o(&$t att#ib&tes +hi$h infl&en$e sales "#o%otional st#ateg!' 4hen the &nit "#i$e is
lo+ the %an&fa$t&#e# as +ell as the $&sto%e# has lo+ #is) b&t he $an get the benefit of %ass %a#)eting'
The#efo#e. %ass %a#)eting #e1&i#es %ass sales "#o%otion s$he%es' Sales "#o%otion s$he%e (iffe# fo#
"#o(&$ts li)e its (&#abilit!. "e#ishable goo(s et$'
/. Sta&e %, 0"%*uct Li,e C#c+e:
Sales "#o%otion st#ategies a#e infl&en$e( b! the life $!$le of a "#o(&$t' 4hen a ne+ "#o(&$t
int#o(&$e(. "#os"e$ti*e b&!e#s %&st be info#%e( abo&t its e0isten$e an( its benefits an( %i((le%en
%&st be $on*in$e( to sto$) it' Hate#. if a "#o(&$t be$o%es s&$$essf&l. $o%"etition intensifies an( %o#e
e%"hasis is "la$e( on sales "#o%otion to in$#ease its sales'
1. Bu*&et Aai+a8+e ,%" P"%!%ti%.:
The f&n(s a*ailable fo# "#o%otion a#e the &lti%ate (ete#%inant of the "#o%otional "#og#a%%e' -
b&siness +ith a%"le f&n(s $an %a)e %o#e effe$ti*e &se of sales "#o%otion "#og#a%%e than a fi#% +ith
li%ite( finan$ial #eso&#$es' The b&(get fo# sales "#o%otion $an be "#e"a#e( b! the follo+ing
%etho(sG
Pe#$entage of Sales
3i0e( f&n(s a*ailable fo# sales "#o%otion
3ollo+ing the $o%"etition. an(
B&(geting b! ob/e$ti*e'
Sa+e( P"%!%ti%. ,"%! t)e C%.(u!e"( 0%i.t %, ie>
Wi++i.&.e(( t% 8u# %. (a+e( 0"%!%ti%. %,,e"
Si0t! "e# $ent of the sa%"le (i( not sho+ +illingness to b&! a b#an( (&e to "#o%otion +hile
=9J sho+e( +illingness an( 89J +e#e not s&#e' This in(i$ates that +hen =9J sho+e( +illingness an(
89J $ons&%e#s +ho +e#e not s&#e. these g#o&"s %ight be l&#e( th#o&gh inno*ati*e an( l&$#ati*e sales
"#o%otion offe#'
A8i+it# t% i.*uce t"ia+
3o#t! "e# $ent of the #es"on(ents ha( sai( that sales "#o%otion ha( the abilit! to in(&$e t#ial
+hi$h #einfo#$es the abo*e infe#en$e'
L%.&?te"! i!0act
In o#(e# to &n(e#stan( abilit! of the "#o%otions to in$#ease long@te#% sales. #es"on(ents +e#e
as)e( abo&t $ontin&it! of "&#$hase of a b#an( afte# the +ith(#a+al of "#o%otion' Eight! "e# $ent of the
#es"on(ents in(i$ate( that the! +o&l( not $ontin&e' B&t :9J sai( the! +o&l(' Th&s. it $o&l( be
infe##e( that "#o%otions in this $atego#! Alo+ in*ol*e%ent "#o(&$tsB %ight en$o&#age t#ial an( b#an(
s+it$hing b&t not long te#% lo!alt!'
P"e,e"e.ce %, Sc)e!e(:
P#i$e off +as the %ost "#efe##e( t!"e of s$he%e' Ma0i%&% $&sto%e#s5 #an)e( "#i$e@offs as
n&%be# one o# t+o'
Pe"ceie* 9ua+it#:
Ma/o#it! of #es"on(ents ha( a "e#$e"tion that the 1&alit! of the "#o%ote( b#an(s #e%aine( the
sa%e (&#ing "#o%otion. +hile so%e of the% felt that it +as infe#io# than befo#e' It $an be infe##e( that
"#o%otions +e#e not lea(ing to negati*e b#an( 1&alit! "e#$e"tions' It is fo&n( that so%e $&sto%e#
st#ongl! "#efe##e( to b&! thei# #eg&la# b#an( an( sai( that sales "#o%otion +o&l( not +ea)en thei#
lo!alt! to+a#(s the b#an('
Pe"ce0ti%.( "e&a"*i.& u.*e"+#i.& c%!0a.# !%tiati%.(
On ta""ing "e#$e"tions5 #ega#(ing &n(e#l!ing $o%"an! %oti*ations fo# sales "#o%otion. to
in$#ease sales, +as #an)e( highest follo+e( b! to att#a$t s+it$he#s, an( to sell e0$ess sto$)s,' 4hile
"#o*i(ing *al&e to $&sto%e#s, an(
To #einfo#$e $o%"an! i%age, +e#e #an)e( lo+est' This in(i$ates that $ons&%e#s belie*e( that
$o%"anies +e#e &n(e#ta)ing s&$h a$ti*ities onl! fo# thei# o+n benefit an( not fo# the benefit of
$ons&%e#s'
3in(ings f#o% #etaile# an( $ons&%e# "e#$e"tion st&(ies. it is e*i(ent that the#e +as a %at$hing of
"e#$e"tions #ega#(ing nat&#e of s$he%e A"#i$e offs as %ost "#efe##e( t!"e of s$he%e %entione( b!
$ons&%e#s an( #etaile#s5 "e#$e"tions abo&t $ons&%e# "#efe#en$esB' Sin$e #etaile#s obse#*e $ons&%e#s in
sto#e beha*io# +e#e f#e1&entl! an( (i#e$tl!. thei# "e#$e"tions #ega#(ing "#o*i(ing $ons&%e# beha*io#
a#e li)el! to be a$$&#ate' S&$h in"&ts f#o% the #etaile#s +o&l( be &sef&l to $o%"anies'
The #etaile#s ha( the "e#$e"tion that those s$he%es +hi$h +e#e anno&n$e( th#o&gh %ass %e(ia ha(
bette# #es"onse' This +as #einfo#$e( b! the $ons&%e# s&#*e! +hi$h sho+e( that #e$all in $ase of
hea*il! "#o%ote( s$he%es on TM +as fo&n( to be *e#! high'
Retaile#s5 "#e(i$tion of $o%"anies5 %oti*ation fo# offe#ing sales "#o%otion +e#e %at$hing +ith the
$ons&%e# "e#$e"tion #ega#(ing the sa%e' Th&s both *ie+e( that $o%"anies +e#e &sing sales "#o%otion
a$ti*ities %ainl! to in$#ease sho#t te#% sales o# en$o&#age s+it$hing o# selling e0$ess sto$) an( not
#eall! to gi*e *al&e benefit o# enhan$eF#einfo#$e b#an(F$o%"an! i%age'
T"a*e O"ie.te* Sa+e( P"%!%ti%.
T#a(e O#iente( Sales P#o%otion ai%e( to %oti*ate $hannel %e%be# of the $o%"an! an( to en$o&#age
the% to "&sh $o%"an!5s "#o(&$t' T#a(e O#iente( Sales P#o%otion in$l&(es (eale# $ontest an(
in$enti*es. t#a(e allo+an$es' Point@of@"&#$hase (is"la!s. sales t#aining "#og#a%s. t#a(e sho+s.
$oo"e#ati*e a(*e#tising. an( othe# "#og#a%s (esigne( to %oti*ate (ist#ib&to#s an( #etaile#s to $a##! a
"#o(&$t an( %a)e an e0t#a effo#t to "&sh it to thei# $&sto%e#s
Sa+e( 0"%!%ti%. ,"%! t)e "etai+e"=( 0%i.t %, ie>:
Pe"ce0ti%.( %. Sc)e!e P"e,e"e.ce
It +as fo&n( that #etaile# "e#$ei*e( "#i$e offs as a bette# fo#% of sales "#o%otion a$ti*it!' P#i$e
offs in thei# o"inion ha( #elati*el! a g#eate# i%"a$t $o%"a#e( to an! othe# fo#% of sales "#o%otion
a$ti*it! li)e Bon&s "a$)s. P#e%i&%. Contests et$' Retaile#s "#efe##e( "#i$e offs the %ost. then bon&s
"a$). "#e%i&%. $ontests. in o#(e# of i%"o#tan$e'
Pe"ce0ti%.( a8%ut Bu#i.& R%+e(
Retaile#s *ie+e( that the "e#son +ho $a%e to the sho" A+ho %a! be a %ai(. son. (a&ghte#.
(a&ghte#@in@la+ an( $hil(B +as the (e$i(e# of a toilet soa" b#an( an( not the In$o%e "#o*i(e# Ae'g' hea(
of the fa%il!B' It $o&l( be infe##e( that *isibilit! of info#%ation abo&t the sales "#o%otion a$ti*it! at the
"oint of "&#$hase $o&l( #es&lt into the "&#$hase of a "#o%ote( b#an('
Pe"ce0ti%.( a8%ut t)ei" "%+e i. *eci(i%.?!a<i.&
Retaile# ha( #elati*el! *e#! lo+ infl&en$e in affe$ting $hoi$e' It $o&l( be infe##e( that *isibilit!
an( a+a#eness abo&t the s$he%e +e#e the $#iti$al s&$$ess fa$to#s so that "&ll $o&l( be $#eate('
Pe"ce0ti%.( a8%ut Re(0%.(e t% Sa+e( P"%!%ti%. O,,e"(
The! belie*e( that !o&nge# age@g#o&"s +e#e %o#e e0"e#i%ental in nat&#e. a%enable to t#!ing
ne+ b#an(s. an( so&ghtFloo)e( fo# o# as)e( +hethe# the#e +e#e an!B sales "#o%otion s$he%es #&nning
on an! toilet soa" at the ti%e of "&#$hase'
Pe"ce0ti%.( a8%ut C%!!u.icati%.( %, Sa+e( P"%!%ti%. Sc)e!e(
Retaile#s "e#$ei*e( that #ole of +o#( of %o&th an( tele*ision a(*e#tising "la!e( an i%"o#tant
"a#t in "#o*i(ing info#%ation in"&ts to $ons&%e#s #ega#(ing sales "#o%otion a$ti*ities'
@a"iati%.( i. I.,%"!ati%. F+%>
S%alle# Anon@s&"e#%a#)et. s%all fo#%at sto#eB #etaile#s #e$ei*e( #elati*el! less s&""o#t
$o%"a#e( to s&"e#%a#)ets in te#%s of se#*i$ing. %a#gins. info#%ation abo&t sales "#o%otion a$ti*ities
f#o% the (eale#s' Man! a ti%es s%all #etaile#s +e#e onl! info#%e( *e#ball! abo&t sales "#o%otion
s$he%es b! the (eale# sales%en (&#ing the s$he(&le( +ee)l! *isits'
Dea+e"?Retai+e" D#.a!ic(
-t the ti%e of sales "#o%otion a$ti*ities. (eale#s ha( ten(en$! to "&sh &n+ante( sto$)s onto the
s%alle# #etaile#s' In fa$t these #etaile#s "#efe##e( to sto$) *a#iet! of b#an(s an( +ante( "a!%ent fo#
shelf an( +in(o+ (is"la! to in$#ease t#affi$ into thei# sto#e' Do+e*e#. s&"e#%a#)ets an( big #etaile#s
+e#e "a%"e#e( an( gi*en s"e$ial se#*i$es an( gi*en bette# %a#gins an( bette# allo+an$es'
Ma"&i.(
It +as fo&n( that in sales "#o%otion s$he%es %a#gins *a#ie( f#o% 6 to8>J (e"en(ing of the
sie of the #etail o&tlet. ba#gaining "o+e# of a #etaile#. 1&antit! o#(e#e( b! hi% et$' Mostl! %a#gins
+e#e lin)e( to sie of the *ol&%es that +e#e o#(e#e('
Pe"ce0ti%.( a8%ut te"!( a.* c%.*iti%.(
Retaile#s +e#e not fo&n( to be ha""! +ith sales "#o%otion s$he%es +he#e thei# %a#gins +e#e
$&t on the "#ete0t of /&st fast %o*e%ent of in*ento#! of the b#an( being "#o%ote(' -lso if a((itional
in$enti*e +as offe#e( it +as s&b/e$t to %ini%&% "e#fo#%an$e #e1&i#e%ent'
Natu"e %, POP
Retaile#s in(i$ate( that %ost of the POP APoint of P&#$haseB %ate#ials +e#e %eant fo# b#an(
a(*e#tise%ent an( not fo# gi*ing info#%ation #ega#(ing the s$he%es' Th&s it $o&l( be infe##e( that
$o%"an!5s follo+ &" +as not a(e1&ate'
Se"ici.& *u"i.& *u"ati%. %, Sc)e!e
In sto$)@o&t sit&ation (&#ing the #&nning of the sales "#o%otion s$he%es. s%alle# #etaile#s ha(
to +ait fo# #e"lenish%ent of sto$)s till the ne0t s$he(&le( +ee)l! *isit b! the (eale# sales%an b&t big
#etaile#s +e#e se#*i$e( on tele"honi$ #e1&est fo# #e"lenish%ent of sto$)s' This $lea#l! in(i$ate( the
(is"a#it! in t#eat%ent'
P"%8+e! %, +e,t?%e"
- lefto*e# sto$) at the en( of an! s$he%e +as #e1&i#e( to be sol( b! the #etaile#s befo#e the!
o#(e#e( f#esh sto$)s' In $ase of bon&s "a$)s s$he%e. lefto*e# sto$) +as often (is%antle( A$&t o"en b&!
one get one f#eeB an( sol( the% in(i*i(&all! as a #eg&la# soa"' This a""#oa$h of the $o%"an! lea(s to
%isa""#o"#iation +hi$h in t&#n $o&l( #es&lt in a(*e#se b#an( i%age'
Gi,t( ,%" Retai+e" !%tiati%.
Co%"anies at ti%es +e#e #e+a#(ing #etaile#s b! gi*ing f#ee gifts li)e the#%os flas)s o# $lo$)s if
the! sol( %o#e than $e#tain 1&antit! in a gi*en "e#io(' Co%"anies +e#e %a)ing a half@hea#te( effo#t to
%oti*ate #etaile#s'
Pe"ce0ti%.( a8%ut !a(( !e*ia a..%u.ce!e.t(
Retaile#s *ie+e( that +hene*e# sales "#o%otion s$he%e +as anno&n$e( on TM. it $#eate( "&ll
an( the! +e#e %o#e than +illing to sto$) s&$h b#an(s' 3o# e0a%"le Me(i%i0 an( Dettol $ontest +as
not a(*e#tise( on TM. hen$e the#e +as *e#! little a+a#eness lea(ing to &nsol( sto$) till 6 %onths' 4hile
H&0 Gol( Sta# +hi$h +as hea*il! "#o%ote( on T'M' is #e$alle( e*en to(a!'
P%(t P"%!%ti%. Be)ai%"
Retaile#s obse#*e( that in %ost $ases sales "#o%otion s$he%e on a b#an( %ight en$o&#age a
b&!e# to s+it$h a b#an( te%"o#a#il! b&t he +o&l( #e*e#t ba$) to o#iginal b#an( afte# "#o%otion'
Ha.*+i.& P"%8+e!(
Man! a ti%e5s #etaile#s ha( to han(le *a#io&s sales "#o%otion offe#s si%&ltaneo&sl! in a $atego#! an(
also a$#oss $atego#ies an( the#e +as no fo#%al $o%%&ni$ation "lanning eithe# f#o% the (eale# o# the
$o%"an!' Re%e%be#ing ea$h offe# an( han(ling +as a "#oble% es"e$iall! fo# a s%all #etaile# +hi$h
+as often an as one@%an sho+'
W)# *% Sa+e( 0"%!%ti%. (c)e!e( a,,ect (a+e(A
The#e a#e th#ee %e$hanis%s behin( these fa$ts' It is P&#$hase 1&antit!. B#an( s+it$hing an( Catego#!
e0"ansion'
Fi"(tB $ons&%e# $an in$#ease the 1&antit! the! b&! /&st be$a&se the "#o(&$t is on sale'
Sec%.*B $ons&%e#s a#e in(&$ing to "&#$hase anothe# b#an( (iffe#ent f#o% the one the! +o&l( ha*e
"&#$hase( +hen the#e is no "#o%otional in$enti*e'
Fi.a++#B $ons&%e#5s total $ons&%"tion of the "#o(&$t $atego#! is in$#ease( b! the "#o%otion' Do+e*e#.
in the long te#% this "ositi*e effe$t %a! be (il&te( be$a&se a "#o%otional $a%"aign has no "e#%anent
effe$t in the sales of the fi#%
Sa+e( P"%!%ti%. St"ate&#
Sales a#e the lifebloo( of a b&siness. +itho&t sales the#e +o&l( be no b&siness in the fi#st "la$eL
the#efo#e it is *e#! i%"o#tant that if a b&siness +ants to s&$$ee(. it sho&l( ha*e a sales "#o%otion
st#ateg! in %in(' The "#i%a#! ob/e$ti*e of a sales "#o%otion is to i%"#o*e a $o%"an!5s sales b!
"#e(i$ting an( %o(if!ing !o&# ta#get $&sto%e#5s "&#$hasing beha*io# an( "atte#ns'
Sales "#o%otion is *e#! i%"o#tant as it not onl! hel"s to boost sales b&t it also hel"s a b&siness to (#a+
ne+ $&sto%e#s +hile at the sa%e ti%e #etaining ol(e# ones' The#e a#e a *a#iet! of sales "#o%otional
st#ategies that a b&siness $an &se to in$#ease thei# sales. ho+e*e# it is i%"o#tant that +e fi#st &n(e#stan(
+hat a sales "#o%otion st#ateg! a$t&all! is an( +h! it is so i%"o#tant'
- sales "#o%otion st#ateg! is an a$ti*it! that is (esigne( to hel" boost the sales of a "#o(&$t o# se#*i$e'
This $an be (one th#o&gh an a(*e#tising $a%"aign. "&bli$ #elation a$ti*ities. a f#ee sa%"ling $a%"aign.
a f#ee gift $a%"aign. a t#a(ing sta%"s $a%"aign. th#o&gh (e%onst#ations an( e0hibitions. th#o&gh "#ie
gi*ing $o%"etitions. th#o&gh te%"o#a#! "#i$e $&ts. an( th#o&gh (oo#@to@(oo# sales. tele%a#)eting.
"e#sonal sales lette#s. an( e%ails'
The i%"o#tan$e of a sales "#o%otion st#ateg! $annot be &n(e#esti%ate(' This is be$a&se a sales
"#o%otion st#ateg! is i%"o#tant to a b&siness boosting its sales'
4hen (e*elo"ing a sales "#o%otion st#ateg! fo# !o&# b&siness. it is i%"o#tant that !o& )ee" the
follo+ing "oints in %in('
Cons&%e# attit&(es an( b&!ing "atte#ns
Yo&# b#an( st#ateg!
Yo&# $o%"etiti*e st#ateg!
Yo&# a(*e#tising st#ateg!
Othe# e0te#nal fa$to#s that $an infl&en$e "#o(&$ts a*ailabilit! an( "#i$ing'
T)e"e a"e t)"ee t#0e( %, (a+e( 0"%!%ti%. (t"ate&ie(:
- "&sh st#ateg!
- "&ll st#ateg! o#
- $o%bination of the t+o
A Pu() St"ate&#:
- N"&sh5 sales "#o%otion st#ateg! in*ol*es N"&shing5 (ist#ib&to#s an( #etaile#s to sell !o&# "#o(&$ts an(
se#*i$es to the $ons&%e# b! offe#ing *a#io&s )in(s of "#o%otions an( "e#sonal selling effo#ts' 4hat
ha""ens he#e is that a $o%"an! "#o%otes thei# "#o(&$tFse#*i$es to a #eselle# +ho in t&#n "#o%otes it to
anothe# #eselle# o# to the $ons&%e#' The basi$ ob/e$ti*e of this st#ateg! is to "e#s&a(e #etaile#s.
+holesale#s an( (ist#ib&to#s to $a##! !o&# b#an(. gi*e it shelf s"a$e. "#o%ote it b! a(*e#tising. an(
&lti%atel! N"&sh5 it fo#+a#( to the $ons&%e#' T!"i$al "&sh sales "#o%otion st#ategies in$l&(eL b&!@ba$)
g&a#antees. f#ee t#ials. $ontests. (is$o&nts. an( s"e$ialt! a(*e#tising ite%s'
A Pu++ St"ate&#:
- N"&ll5 sales "#o%otion st#ateg! fo$&ses %o#e on the $ons&%e# instea( of the #eselle# o# (ist#ib&to#'
This st#ateg! in*ol*es getting the $ons&%e# to N"&ll5 o# "&#$hase the "#o(&$tFse#*i$es (i#e$tl! f#o% the
$o%"an! itself' This st#ateg! ta#gets its %a#)eting effo#ts (i#e$tl! on the $ons&%e#s +ith the ho"e that
it +ill sti%&late inte#est an( (e%an( fo# the "#o(&$t' This "&ll st#ateg! is often &se( +hen (ist#ib&to#s
a#e #el&$tant to $a##! o# (ist#ib&te a "#o(&$t' T!"i$al "&ll sales "#o%otion st#ategies in$l&(eL sa%"les.
$o&"ons. $ash #ef&n(s o# #ebates. lo!alt! "#og#a%s an( #e+a#(s. $ontests. s+ee"sta)es. ga%es. an(
"oint@of@"&#$hase (is"la!s'
A C%!8i.ati%. %, T>% St"ate&ie(:
- N$o%bination5 sales "#o%otion st#ateg! is /&st thatL it is a $o%bination of a "&sh an( a "&ll st#ateg!' It
fo$&ses both on the (ist#ib&to# as +ell as the $ons&%e#s. ta#geting both "a#ties (i#e$tl!' It offe#s
$ons&%e# in$enti*es si(e b! si(e +ith (eale# (is$o&nts'
T)e S)%"t te"! I!0act %, P"%!%ti%.(:
Het5s ha*e loo) at the i%"a$t of "#o%otions on "&#$hase beha*io# (&#ing the "#o%otional "e#io( i'e' the
+ee) o# the %onth +hen the "#o%otion +as being #&n' The %a/o#it! of the e%"i#i$al st&(ies ha*e
fo$&se( on the i%"a$t of "#o%otions in the sho#t te#%' The )e! fin(ings a$#oss the st&(ies a#e
(is$&sse( belo+'
Te!0%"a"# 0"ice "e*ucti%.( C0"ice %,,D (u8(ta.tia++# i.c"ea(e (a+e(:
The#e is a%"le e*i(en$e to sho+ that "#o%otions lea( to (#a%ati$ in$#eases in sales of "#o%ote( b#an(
in the sho#t te#%' St&(ies ha*e $onsistentl! #e"o#te( high sales effe$ts an( high "#i$e elasti$it! of
b#an(s +hi$h a#e on "#o%otion' The e$ono%i$ #ationale fo# the "#o%otional #es"onse is $lea# O
te%"o#a#! "#i$e $&ts in$#ease the *al&e of the "#o(&$t to the $ons&%e# an( it lea(s to i%%e(iate a$tion'
Sales boost $an be 1&antifie( on the basis of b#an( s+it$hing. "#i%a#! (e%an( e0"ansion an(
$ons&%e# sto$)"iling (&#ing a "#o%otion'
Sa+e( P"%!%ti%. +ea*( t% 8"a.* (u8(tituti%. >it) t)e 0"%*uct cate&%"#:
The sales Nb&%"5 (&#ing the "#o%otional "e#io( into sales (&e to b#an( s+it$hing. "&#$hase ti%e
a$$ele#ation an( sto$)"iling' St&(ies on b#an( s+it$hing ha*e sho+n that b#an( s+it$hing effe$ts
+ithin a $atego#! a#e as!%%et#i$ s&$h that "#o%otions on highe# 1&alit! b#an(s i%"a$ts +ea)e# b#an(s
(is"#o"o#tionatel!' D&#ing a "#o%otion. highe# 1&alit! b#an(s in(&$e a la#ge n&%be# of $ons&%e#s to
s+it$h to the% as $o%"a#e( to lo+e# 1&alit! b#an(s' One e0"lanation a(*an$e( fo# this fin(ing b!
#esea#$he#s is that la#ge sha#e b#an(s ha*e highe# b#an( e1&it! an( att#a$t s+it$he#s %o#e than lo+
sha#e b#an(s'
Sa+e( P"%!%ti%. +ea*( t% 0u"c)a(e acce+e"ati%.E(t%c<0i+i.& e,,ect(:
In #es"onse to a "#o%otion. $ons&%e#s %a! b&! %o#e 1&antit! of the "#o(&$t $atego#! o# b&! at
an ea#lie# ti%e than &s&al A"&#$hase a$$ele#ation effe$tB' If $ons&%e#s b&! e0t#a 1&antit! (&#ing a
"#o%otion o# ea#lie# than no#%al. then the! a#e not in the %a#)et to b&! "#o(&$ts on$e the "#o%otion is
o*e#' Th&s "&#$hase a$$ele#ation is (e%onst#ate( th#o&gh
- lengthening of inte# "&#$hase ti%es afte# a "#o%otion' P&#$hase a$$ele#ation +as %o#e li)el! to be
e0hibite( in in$#ease( "&#$hase 1&antit! than in sho#tene( inte# "&#$hase ti%es' Res&lts sho+e( that
$ons&%e#s %ostl! %a(e &" fo# the la#ge 1&antit! "&#$hase( b! +aiting longe# &ntil "&#$hasing again'
Res&lts in(i$ate( that hea*! &se#s ten(e( to a$$ele#ate "&#$hases %o#e than light &se#s' The#e +as
negligible (iffe#en$e in the a$$ele#ation "#o"ensities of high *e#s&s lo+ in$o%e g#o&"s'
Sa+e( P"%!%ti%. +ea*( t% 0"i!a"# *e!a.* ex0a.(i%. ,%" a cate&%"#:
4hile it +as t#a(itionall! ass&%e( that $ons&%"tion #ates #e%ain fi0e( (&#ing an( afte# a
"#o%otion. b&t f#o% this "#o/e$t I $a%e to )no+ that "#o%otions also ha*e a "#i%a#! (e%an(
e0"ansion effe$t' 4hen a "#i%a#! (e%an( e0"ansion o$$&#s. "#o%otion in(&$e( in$#ease in "&#$hase
1&antities (oes not signifi$antl! e0ten( the ti%e till the ne0t "&#$hase in the $atego#! o$$&#s. th&s
in(i$ating that the#e has been an in$#ease in $ons&%"tion "#o%otions in(&$e( $ons&%e#s to b&! %o#e
an( $ons&%e faste#' It is fo&n( that "#o%otion in(&$e( in*ento#! te%"o#a#il! in$#ease( $ons&%"tion
#ates +ithin the $atego#! e'g' in $atego#ies s&$h as ba$on. salte( sna$)s. soft (#in)s an( !og&#t
e0hibite( "#i%a#! (e%an( e0"ansions as a #es&lt of "#o%otion +hile bath#oo% tiss&e. $offee. (ete#gent
an( "a"e# to+els e0hibite( sto$)"iling onl!'
Sa+e( P"%!%ti%.( a,,ect (a+e( i. c%!0+e!e.ta"# a.* c%!0etitie cate&%"ie(:
3#o% this "#o/e$t it is fo&n( that "#o%otion not onl! in$#eases sales of %ain "#o(&$t b&t it also
lea( to in$#ease in sales of $o%"le%enta#! $atego#ies' 3o&n( st#ong $#oss #elationshi"s bet+een
"#o(&$ts of the "#o%ote( "#o(&$t $atego#! in(i$ating b#an( s&bstit&tion beha*io#' The! state( that
#etail "#i$e "#o%otions +o#) as a fo#% of i%"li$it "#i$e b&n(ling +he#eb! the $ons&%e# s&#"l&s is
t#ansfe##e( f#o% the "#o%ote( ite% to non "#o%ote( ite%s' -lso fo&n( that #etail "#i$e "#o%otions
$#eate signifi$ant $o%"le%enta#! an( s&bstit&tion effe$ts +ithin the sto#e'
T)e L%.& te"! I!0act %, P"%!%ti%.(:
St#ategies a#e b&il(s to #ea" the benefits fo# longe# "e#io( of ti%eL sa%e is t#&e in sales "#o%otion
st#ategies' Het &s see i%"a$t of "#o%otions effo#t an( st&(! the i%"a$t o*e# a longe# ti%e "e#io( e'g' ;@
6 %onths o# e*en a fe+ !ea#s afte# a sales "#o%otion $a%"aign'
The #es&lt sho+e( that $ons&%e# "#o%otions fo# lea(ing b#an(s of establishe( "a$)age( "#o(&$ts ha(
no afte#@effe$ts on the b#an(5s sales o# #e"eat b&!ing lo!alt!' The e0t#a sales of a b#an( +hile "#o%ote(
$a%e *i#t&all! all f#o% the b#an(5s e0isting long@te#% $&sto%e# base fo# +hi$h the e0"e#ien$e of
b&!ing the "#o%ote( b#an( +as nothing ne+'
It is fo&n( that altho&gh the sho#t te#% effe$ts of "#o%otions a#e st#ongL these "#o%otions #a#el! e0hibit
long te#% effe$ts' It is obse#*e( that ea$h sales $o%"onent gene#all! la$)e( a "e#%anent effe$t an( the
effe$t of "#o%otion +as sho#t li*e( an( in$#ease in "#o%otions affe$te( $ons&%e#s5 sto$)"iling
(e$isions in the long #&n' The! fo&n( that the $o%bine( sho#t an( long@te#% elasti$it! of "#o%otions
+as e#o' The sto$)"iling in(&$e( b! a "#o%otion +as essentiall! offset b! #e(&$e( (e%an( in the long
te#%' Th&s in$#ease( sales +e#e %o#e a #es&lt of sales bo##o+e( f#o% the f&t&#e than in$#ease(
$ons&%"tion
SWOT A.a+#(i( %, FMCG Sect%"
Strengths:
4ell@establishe( (ist#ib&tion net+o#) e0ten(ing to #&#al a#eas'
St#ong b#an(s in the 3MCG se$to#'
Ho+ $ost o"e#ations'
Weaknesses:
Ho+ e0"o#t le*els'
S%all@s$ale se$to# #ese#*ations li%it abilit! to in*est in te$hnolog! an( a$hie*e e$ono%ies of
s$ale'
Se*e#al P%e@too55 "#o(&$ts'
Opportunities:
Ha#ge (o%esti$ %a#)et'
E0"o#t "otential'
In$#easing in$o%e le*els +ill #es&lt in faste# #e*en&e g#o+th''
Threats:
I%"o#ts'
Ta0 an( #eg&lato#! st#&$t&#e'
Slo+(o+n in #&#al (e%an('
D-T- -2-HYSIS
C%.(u!e"(
9'. W)ic) 8"a.* %, S%a0 E Dete"&e.t *% #%u u(eA
Bat)i.& F(%a0( Re(0%.*e.t(
H&0 ;8
Da%% =
Hifeb&o! 8;
2i%a 7
Othe#s =;
I.te"0"etati%.:
The abo*e 1&estion has been fo#%e( to )no+ the soa"s an( (ete#gents at the to" of the %in( of the
$&sto%e#s' It sho+s those $ons&%e#s5 "&#$hase an( &se of that "a#ti$&la# b#an(' It +ill hel" to the
$o%"an! to )no+ the %a#)et s$ena#io an( the %a/o# b#an(s in the %a#)et'
3o#% the abo*e #es&lt it is $lea# that o&t of 899 $&sto%e#s %o#e than ;9 a#e $ons&%e#s a#e ha*ing the
sa%e b#an( as the i%age in thei# %in(. +he#eas othe#s $atego#! is also sho+ing the highe# g#a"h than
these = %a/o# "la!e#sADa%a%. Hifeb&o!. 2i%aB'
Dete"&e.t 0%>*e" Re(0%.*e.t(
2i#%a s&""e# 8<
4heel 8;
S&#f =>
-#iel 87
Othe#s 8;
I.te"0"etati%.:
3o#% the abo*e #es&lt it is $lea# that o&t of 899 $&sto%e#s => a#e "&#$hasing the sa%e b#an( of
(ete#gent. +he#eas all othe#s a#e on sa%e le*el'
9-. D% #%u a+>a#( 8u# t)e (a!e 8"a.* %, S%a0 E Dete"&e.tA
Pa"ticu+a"( Re(0%.*e.t(
Yes >6
2o ;;
I.te"0"etati%.:
The ob/e$ti*e behin( the fo#%ation of this 1&estion is to )no+ the le*el of b#an( lo!alt! of the
$ons&%e#s to+a#(s the b#an(s of soa"s a*ailable in the %a#)et' The abo*e fig&#e sho+s that on >6J of
the #es"on(ents a#e lo!al to thei# b#an(s of (ete#gentFsoa"' 3MCG a#e s&$h a %a#)et +he#e the le*el of
lo!alt! #e%ains lo+ an( this is be$a&se of %an! #easons'
9/. W)ic) ,act%"( *% #%u .%"!a++# c%.(i*e" >)i+e 0u"c)a(i.& a 0a"ticu+a" 8"a.*
%, S%a0 E Dete"&e.t(A
Fact%"(
Bat)i.&
(%a0 Det.0%>*e"
3#ag#an$e 8< 87
I&alit! == =6
Co%"an! i%age 86 8=
P#i$e := 8<
Pa$)aging 6 88
Othe#s = =
I.te"0"etati%.:
The ob/e$ti*e behin( this 1&estion is to )no+ the effe$t of infl&en$ing fa$to#s in the "&#$hase (e$ision
of the soa"s an( (ete#gent "o+(e#s' It %ainl! $ontains the fa$to#s li)e. 1&alit! +hi$h "la!e#s an
i%"o#tant #ole in the "&#$hase (e$ision of the soa"s an( (ete#gents both'
If +e loo) at the g#a"h of the soa"s an( (ete#gent it sho+s 1&alit! as the %ost infl&en$ing fa$to#s in the
"&#$hase (e$ision +hile "#i$e is also an i%"o#tant fo# "&#$hase (e$ision'
91. D% #%u c%.(i*e" 0"%!%ti%.a+ (c)e!e( >)i+e 0u"c)a(i.& a 0a"ticu+a" 8"a.* %,
S%a0 E Dete"&e.tA
Pa"ticu+a"( Re(0%.*e.t(
Yes ?7
2o ::
H7: P"%!%ti%.a+ (c)e!e( )ae a (i&.i,ica.t e,,ect %. t)e 0u"c)a(e %, 8"a.*.
H': P"%!%ti%.a+ (c)e!e( *% .%t )ae a. e,,ect %. t)e 0u"c)a(e %, 8"a.*.
I.te"0"etati%.:
-ns+e# of this 1&estion +ill gi*e i(ea abo&t the effe$t of "#o%otional s$he%es in the "&#$hase
(e$isions' S&$h t!"es of s$he%es al+a!s att#a$t %o#e an( %o#e $ons&%e#s to+a#(s "a#ti$&la# b#an('
Si%&ltaneo&sl! it gi*es i(ea abo&t the fa$to#s +hi$h $ons&%e#s loo) %ost in the "#o(&$t befo#e the!
%a)e final (e$ision'
De#e H7 is a$$e"te( as the g#a"h sho+s that ?7 o&t of 899 $ons&%e#s a#e loo)ing fo# s&$h s$he%es
befo#e the! %a)e "&#$hase'
92. W)ic) %, t)e ,%++%>i.& 0"%!%ti%.a+ (c)e!e( #%u )ae c%!e ac"%(( (% ,a"A
P"%!%ti%.a+ (c)e!e( Re(0%.*e.t(
Co&"ons 86
"#i$e off 7;
3#eebies :;
s$#at$h $a#(s 8:
l&$)! (#a+ <
B&n(ling =8
e0t#a 1t!' ;;
I.te"0"etati%.:
The abo*e state( 1&estion $lea#l! states the a+a#eness of "#o%otional s$he%es offe#e( in the %a#)et b!
the %a#)ete#s to att#a$t %o#e an( %o#e $ons&%e#s'
The #es&lts sho+ that "#i$e off an( e0t#a 1&antit! is the t+o %ain offe#sFs$he%es +hi$h $ons&%e#s
ha*e $a%e a$#oss at the ti%e of "&#$hase' It +ill hel" the %an&fa$t&#e#s an( %a#)ete#s too ho+ too
la&n$h thei# ne+ "#o(&$ts in the %a#)et +ith +hi$h s$he%es'
93. W)ic) !e*iu! *% #%u ,ee+ i( (uita8+e t% 0"%!%te t)e a"i%u( 0"%!%ti%.a+
(c)e!e(A
S%u"ce Re(0%.*e.t(
Ra(io 88
TM 6<
2e+s"a"e# ;=
Doa#(ing 8>
Othe#s 8:
I.te"0"etati%.:
This 1&estion gi*es st#ess on the %e(ia habit of the "eo"le an( th#o&gh +hi$h the "#o(&$t sho&l( be
la&n$h o# the! thin) it +o&l( be bette# than othe# Me(ias'
The abo*e #es&lt sho+s TM as the best %e(ia to %a#)et the "#o(&$t +hi$h +ill $o*e# %a/o#it! of the
*ie+e# shi"' On the se$on( "la$e it sho+s ne+s "a"e#s as the %e(ia to "#o%ote the "#o(&$t in the
%a#)et'
94. I( t)e"e a.# exi(ti.& (c)e!e %. t)e S%a0 E Dete"&e.t #%u a"e cu""e.t+# u(i.&A
Pa"ticu+a"( Re(0%.*e.t(
Yes >7
2o ;:
I.te"0"etati%.:
The ans+e# of the #es"on(ents gi*e i(ea abo&t the a+a#eness of the "#o%otional s$he%es offe#e( in the
%a#)et on thei# e0isting soa"s an( (ete#gents'
In this sit&ation %o#e then ;9J of the "eo"le a#e not a+a#e o# ha*ing *ag&e i(ea abo&t the "#o%otional
s$he%es #&nning into the %a#)et'
It sho+s that "eo"le a#e not %&$h a+a#e of the s$he%es +hi$h $ontin&e in the %a#)et it %a! be
be$a&se of the "#esent sto$) of the "#o(&$t at thei# "la$e'
95. I, #e(B 0+ea(e (0eci,#A
Pa"ticu+a"( Re(0%.*e.t(
=Q8FOthe#
3#ee =6
Dis$o&nt ::
2o i(ea 6
2o ans+e# =6
I.te"0"etati%.:
This 1&estion s&""o#ts the abo*e 1&estion' It enlists the ans+e#s of those $&sto%e#s +ho a#e a+a#e of
the "#esent s$he%es offe#e( in the %a#)et an( also those s$he%es +hi$h a#e %o#e (e%an(e( in the
%a#)et'
The #es&lt sho+s that 8Q8 o# :Q8 o# othe# f#ee s$he%es a#e %o#e (e%an(e( an( %o#e a+a#e s$he%es in
the %a#)et'
So %an&fa$t&#e#s %a! go fo# the sa%e at the ti%e of la&n$hing thei# "#o(&$t'
96. I, #%u &et a. att"actie 0"%!%ti%.a+ %,,e" i. t)e 0"%*uct %t)e" t)e. %, #%u"
c)%ice >i++ #%u (>itc) %e"A
Pa"ticu+a"( Re(0%.*e.t(
Yes ?=
2o :?
I.te"0"etati%.:
It sho+s the le*el of b#an( lo!alt! a%ong the $ons&%e#s' The #es&lt $lea#l! sho+s that o&t of 899. ?=
"eo"le a#e #ea(! to s+it$h o*e# to anothe# b#an( if the! fin( bette# "#o%otional s$he%es +hi$h s&its
thei# b&(get %eans %o#e 1!t Q less $ost Q 1&alit!'
Co%bination of all these s$he%es +ill #&n bette# in the %a#)et'
9'7. Gie "ea(%. ,%" t)e (a!eA
Pa"ticu+a"( Re(0%.*e.t(
CostQ1t! 86
I&alit! 8?
Satisfa$tion :
B#an( lo!al >
Mo#e benefitFb&(get ::
Season $hange :
2o ans+e# =6
I.te"0"etati%.:
-bo*e 1&estion it gi*es s"e$ifi$ #easons fo# s+it$hing too othe# "#o(&$ts' It sho+s that e0t#a 1&antit!
+ith less o# sa%e "#i$e. %o#e satisfa$tion. 1&alit! an( othe# fa$to#s infl&en$e $ons&%e#s to s+it$h o*e#
too othe# b#an(s'
9''. Gie (u&&e(ti%.( a8%ut ,utu"i(tic 0"%!%ti%.a+ (c)e!e(A
This sho+ the $ons&%e#s5 f&t&#e e0"e$tations f#o% the +hethe# $o%"an! to $o%e +ith ne+ s$he%es o#
$ontin&e +ith "#esent one' It sho+s $ons&%e#s (e%an( +hi$h the %an&fa$t&#e#s ha*e to %eet'
Retai+e"(
9'. Si.ce )%> +%.& a"e #%u i. t)i( 8u(i.e((A
Pa"ticu+a"( Re(0%.*e.t(
8@> Yea#s :;
>@89 Yea#s :?
Mo#e than 89 !ea#s ;<
I.te"0"etati%.:
This 1&estion gi*es i(ea abo&t the benefit to the #etaile#s +ho a#e on the %a#)et f#o% long "e#io( of
ti%e an( the benefits the! a#e getting %o#e as $o%"a#e to othe#s' It also sho+s thei# e0"e#ien$e in the
fiel( an( the se#*i$es the! a#e "#o*i(ing too thei# ne+ an( #eg&la# $&sto%e#s' It also gi*es i(ea abo&t
the benefits the! a#e gaining fo# +holesale#s an( (i#e$t f#o% the $o%"an!'
9-. Na!e t)e S%a0 E Dete"&e.t CC%!0a.#D #%u (t%c< ,%".
C%!0a.ie( Re(0%.*e.t(
2i#%a <6
DUH 899
PRG <9
Go(#e/ <;
Othe#s 67
I.te"0"etati%.:
It gi*es i(ea abo&t the $a"a$it! of the #etaile#s to sto$) the goo(s an( also the *a#iet! of the "#o(&$ts
the! a#e sto$)ing' It +ill also %a)e $lea# the (e%an( of the goo(s in thei# sto#es an( the selling of the
"#o(&$t in %a#)et' Most of the #etaile# sto$)s all t!"es of soa" an( (ete#gent'
9/. Ra.< t)e ,%++%>i.& ,act%"( t)at cu(t%!e"( +%%< ,%" i. t)e 0u"c)a(e %, S%a0 E
Dete"&e.t. CRa.< ,"%! ' t% 3D
3a$to#s 8 : = ; > 6
3#ag#an$e = :; == :: 89 7
I&alit! 66 := ? = 8 9
Co%"an! I%age < 87 =; :; 88 ;
P#i$e 8? :7 :; 86 6 <
Pa$)aging ; > : :? =7 :;
Othe#s 8 : 9 7 =; >>
I.te"0"etati%.:
It gi*es an i(ea abo&t the "#io#it! the infl&en$ing fa$to#s too the $ons&%e#s an( also the +eight age of
that fa$to# o*e# othe# fa$to#s'
In the abo*e #es&lt "eo"le a#e %o#e 1&alit! an( "#i$e o#iente(' On the othe# han( "eo"le a#e also
$ons$io&s abo&t the $o%"an! i%age' Be$a&se so%eti%es the $ons&%e# #e%e%be# that na%e of the
"#o(&$t b! the $o%"an! na%e an( also f#o% the "ast "e#fo#%an$e of that $o%"an!' 3#ag#an$e an(
"a$)aging a#e not infl&en$ing fa$to# as "e# the #es"on(ents'
Fact%"( '
2 3 4 5 6
F"a&"a.ce 88 17 41 21 7 3
9ua+it# ;= 34 16 6 1 0
C%!0a.#
I!a&e
8= 86 :? :6 88 ?
P"ice :? 28 14 9 6 16
Pac<a&i.& 6 5 2 33 43 11
Ot)e"( 9 0 0 5 32 63
I.te"0"etati%. :
It gi*es an i(ea abo&t the "#io#it! the infl&en$ing fa$to#s too the $ons&%e#s an( also the +eight age of
that fa$to# o*e# othe# fa$to#s'
In the abo*e #es&lt "eo"le a#e %o#e 1&alit! an( "#i$e o#iente(' On the othe# han( "eo"le a#e also
$ons$io&s abo&t the $o%"an! i%age' Be$a&se so%eti%es the $ons&%e# #e%e%be#s that na%e of the
"#o(&$t b! the $o%"an! na%e an( also f#o% the "ast "e#fo#%an$e of that $o%"an!' 3#ag#an$e an(
"a$)aging a#e also "la! i%"o#tant #ole fo# "&#$hasing (ete#gent "o+(e#'
91. D% #%u (u&&e(t cu(t%!e"( t% 0u"c)a(e a ce"tai. 8"a.*A
Pa"ticu+a" Re(0%.*e.t(
Yes ==
2o 6?
I.te"0"etati%.:
This $o&l( be a *e#! hel" 1&estion to &n(e#stan( the #ole of #etaile#s in the "&#$hase (e$ision'
In abo*e g#a"h 6?J of #etaile# a#e not s&ggest to "&#$hase "a#ti$&la# b#an( be$a&se of "e#sonal #elation
o# that $&sto%e# a#e b#an( lo!al' 4hile ==J of the #etaile# a#e s&ggesting the $ons&%e#s to b&!
"a#ti$&la# b#an(' The#e $o&l( be %an! #easons li)e. e0t#a %a#gin. #elations +ith $ons&%e#s an( 1&alit!
of the "#o(&$ts +hi$h #etaile# %a! get the benefit of the sa%e'
92. I, :e( >)#A
Pa"ticu+a" Re(0%.*e.t(
Digh %a#gin <
I&alit! 8?
Relationshi" ?
2o #eason 6?
I.te"0"etati%.:
it gi*es i(ea abo&t the #easons +h! #etaile#s s&ggest the $ons&%e#s to b&! "a#ti$&la# b#an('
In abo*e g#a"h an( table it is $lea# that fo# %a#gin an( of bette# #elations +ith $ons&%e#s an( too
"#o*i(e 1&alit! "#o(&$t to $ons&%e#s the! s&ggest $ons&%e#s too b!e "a#ti$&la# b#an(' 3o# the
$o%"an! it %a! be hel"f&l to ta#get s&$h #etaile#s to sell thei# "#o(&$t in the %a#)et easil!'
93. D% cu(t%!e"( +%%< ,%" a"i%u( (c)e!e( i. t)e 0"%*uctA
Pa"ticu+a" Re(0%.*e.t(
Yes <:
2o 7
I.te"0"etati%.:
This gi*es a #eal hel"f&l (ata fo# $he$)ing the effe$t of sales "#o%otions in the %a#)et an( ho+
se#io&sl! $ons&%e#s follo+ the "#o%otions befo#e the! go fo# "&#$hase "a#ti$&la# b#an('
The abo*e #es&lt sho+s that onl! 7 o&t 9f 899 (i(n5t go fo# the "#o%otion othe#+ise all a#e loo)ing fo#
an! t!"e of the "#o%otions on the "#o(&$t'
94. I, #e( >)ic) (c)e!e(A
P"%!%ti%.a+
Sc)e!e(
Re(0%.*e.t(
Co&"ons 88
P#i$e Off 7:
3#eebies =>
S$#at$h Ca#(s :
H&$)! D#a+s 8<
B&n(ling Offe# 6>
E0t#a I&antit! ?<
I.te"0"etati%.:
The abo*e state( #es&lts sho+ the (e%an( of *a#io&s t!"es of "#o%otional s$he%es in the %a#)et b!
the $ons&%e#s' -l%ost all t!"es of s$he%es a#e being (e%an(e( b! the $ons&%e#s in the %a#)et b&t
the#e a#e th#ee %a/o# s$he%es +hi$h $ons&%e#s gene#all! loo) at the ti%e of "&#$hase o# befo#e that'
P#i$e off. "#o(&$t b&n(ling an( e0t#a 1&antit! a#e %o#e (e%an(e( b! the $ons&%e#s o*e# othe#s
s$he%es'
95. W)ic) T"a*e P"%!%ti%.( *% a"i%u( c%!0a.ie( %,,e"A
NIRMA
P"%!%ti%.( Re(0%.*e.t(
E0t#a Ma#gin ;6
E0t#a Units =;
$#e(it fa$ilit! >>
Gifts :;
"#o%o' E0"' 7
H7: E,,ect %, t"a*e 0"%!%ti%.( ,%" a++ ,%u" 8"a.*( i( (i!i+a".
H': E,,ect %, t"a*e 0"%!%ti%.( ,%" a++ ,%u" 8"a.*( i( .%t (i!i+a".
I.te"0"etati%.:
3#o% the abo*e g#a"h sho+s the t#a(e "#o%otions offe#e( b! the 2IRM- Ht( to the #etaile#s to att#a$t
the% to+a#(s sto$)ing thei# goo(s an( also sto" the% s+it$hing the% too othe# %a/o# "la!e#s in the
%a#)et'
2IRM- is %ainl! offe#ing $#e(it fa$ilit! +hi$h is offe#e( b! all %a/o# "la!e#s it %a! (iffe# in the ti%e
li%it of the $#e(it' It is also "#o*i(ing e0t#a %a#gin. an( &nits +ith o$$asional gift +ith thei# s$he%es'
HUL
P"%!%ti%.( Re(0%.*e.t(
E0t#a Ma#gin ;?
E0t#a Units =;
C#e(it fa$ilit! >7
Gifts :>
P#o%o' E0"' ::
I.te"0"etati%.:
The a(*antage of DHH o*e# 2IRM- is that it ba#e "#o%otional e0"enses +hi$h 2IRM- is not (oing' It
att#a$ts %o#e $ons&%e#s th#o&gh s&$h "#o%otions. s&$h as (is"la! of the "#o(&$t. banne#s et$'
So this %a! hel" it to att#a$t %o#e #etaile#s' It %a! be$a&se of its less $ost of "#o(&$tion in othe#
seg%ents in +hi$h ni#%a is not o"e#ating'
P G G
P"%!%ti%.( Re(0%.*e.t(
E0t#a Ma#gin ;9
E0t#a Units ==
C#e(it fa$ilit! >>
Gifts :9
P#o%o' E0"' 8:
I.te"0"etati%.:
PRG is also a big "la!e# in the 3MCG %a#)et' It is also "#o*i(ing all the fa$ilities +hi$h othe#s a#e
"#o*i(ing to #etaile#s'
GODREH
P"%!%ti%.( Re(0%.*e.t(
E0t#a Ma#gin ;6
E0t#a Units =:
C#e(it fa$ilit! >?
Gifts 8<
P#o%o' E0"' 87
I.te"0"etati%.:
Go(#e/ is a big "la!e# in the 3MCG %a#)et' It is also "#o*i(ing all the fa$ilities +hi$h othe#s a#e
"#o*i(ing to #etaile#s' B&t it is la$)ing in bea#ing e0"enses +hi$h DUH is "#o*i(ing to %a0i%&%
n&%be# of #etaile#s'
OTHERS
P"%!%ti%.( Re(0%.*e.t(
E0t#a Ma#gin =9
E0t#a Units 87
C#e(it fa$ilit! =7
Gifts 8>
P#o%o' E0"' ?
I.te"0"etati%.:
Othe#s in$l&(e lo$al "la!e#s. as +ell as +e establishe( "la!e#s li)e. +i"#o b&t thei# "#o(&$ts a#e not in
(e%an( li)e othe# "la!e#s b&t still the! a#e "#o*i(ing all the fa$ilities to #etaile#s to att#a$t to+a#(s
sto$)ing thei# "#o(&$ts'
GODREJ NIRMA HUL P&G
Extra
Margin 46 46 47 40
Extra Units 32 34 34 33
Credit
facility 57 55 58 55
Gifts 19 24 25 20
Pr!"
Ex#" 18 8 22 12
34.4 33.4 37.2 32
Anova: Single a!"o#
SUMMAR$
G#o&"s Co&nt S&% -*e#age Ma#ian$e
Col&%n 8 > 8?: =;'; :7<'=
Col&%n : > 86? =='; ==<'7
Col&%n = > 876 =?': ::<'?
Col&%n ; > 869 =: :7;'>
ANO@A
So&#$e of
Ma#iation
SS (f MS 3 P@*al&e 3 $#it
Bet+een
G#o&"s
?:'>> = :;'87=== 9'97;69< 9'<6?;>? =':=77?:
4ithin G#o&"s ;>?=': 86 :7>'7:>
Total ;6;>'?> 8<
-ll the big "la!e#s "#o*i(e "#o%otion to the #etaile#s (&e to $&t th#oat $o%"etitionL Inte#"#etation: f#o%
the one fa$to# ano*a anal!sis. it is $lea#l! seen that the#e is a effe$t of t#a(e "#o%otion on *a#io&s
b#an(s an( a#e si%ila# too' -s "K 9'9>. it is the e*i(en$e that the n&ll h!"othesis is a$$e"te(
96 Gie "ea(%.( ,%" .%t (t%c<i.& a 0a"ticu+a" 8"a.*.
Retaile# sto$)s all t!"es of soa" an( (ete#gent be$a&se of $o%"etition'
9'7 A.# Su&&e(ti%.(.
Retaile# s&ggeste( that "a$)aging sho&l( be f&#the# i%"#o*e( an( &se( as "#o%otional tool. to
en$o&#age sales (&#ing $e#tain "e#io(s the $o%"an! sho&l( "#o*i(e "#i$eoff o# e0t#a 1&antit! be$a&se
that infl&en$es (i#e$tl! to the $ons&%e#'
Fi.*i.&( %, t)e "e0%"t:
Sales P#o%otion. a sho#t@te#% in(&$e%ent. offe#e( to a $ons&%e# o# t#a(e has gaine( %o%ent&% as a
"#o%otional tool +o#l( o*e#' It #e"#esents nea#l! th#ee fo&#th of the %a#)eting b&(get at %ost $ons&%e#
"#o(&$t $o%"anies' Sales "#o%otions $an enhan$e $ons&%e#s5 self@"e#$e"tion of being s%a#t, o# a
goo(, sho""e#
3MCG a#e s&$h a %a#)et +he#e the le*el of lo!alt! #e%ains lo+ an( this is be$a&se of %an!
#easons'
I&alit! as the %ost infl&en$ing fa$to#s in the "&#$hase (e$ision +hile "#i$e is also an i%"o#tant
fo# "&#$hase (e$ision'
S$he%es al+a!s att#a$t %o#e an( %o#e $ons&%e#s to+a#(s "a#ti$&la# b#an(' Si%&ltaneo&sl! it
gi*es i(ea abo&t the fa$to#s +hi$h $ons&%e#s loo) %ost in the "#o(&$t befo#e the! %a)e final
(e$ision
P#i$e off an( e0t#a 1&antit! is the t+o %ain offe#sFs$he%es +hi$h $ons&%e#s ha*e $a%e a$#oss
at the ti%e of "&#$hase
TM as the best %e(ia to %a#)et the "#o(&$t +hi$h +ill $o*e# %a/o#it! of the *ie+e# shi"' On the
se$on( "la$e it sho+s ne+s "a"e#s as the %e(ia to "#o%ote the "#o(&$t in the %a#)et
Peo"le a#e not %&$h a+a#e of the s$he%es +hi$h $ontin&e in the %a#)et it %a! be be$a&se of
the "#esent sto$) of the "#o(&$t at thei# "la$e'
8Q8 o# :Q8 o# othe# f#ee s$he%es a#e %o#e (e%an(e( an( %o#e a+a#e s$he%es in the %a#)et'
Peo"le a#e #ea(! to s+it$h o*e# to anothe# b#an( if the! fin( bette# "#o%otional s$he%es +hi$h
s&its thei# b&(get %eans %o#e 1!t Q less $ost Q 1&alit!'
E0t#a 1&antit! +ith less o# sa%e "#i$e. %o#e satisfa$tion. 1&alit! an( othe# fa$to#s infl&en$e
$ons&%e#s to s+it$h o*e# too othe# b#an(s'
Retaile# sto$)s all t!"es of soa" an( (ete#gent be$a&se of $o%"etition'
Peo"le a#e %o#e 1&alit! an( "#i$e o#iente('
Cons&%e# #e%e%be# that na%e of the "#o(&$t b! the $o%"an! na%e an( also f#o% the "ast
"e#fo#%an$e of that $o%"an!
Cons&%e# #e%e%be#s that na%e of the "#o(&$t b! the $o%"an! na%e an( also f#o% the "ast
"e#fo#%an$e of that $o%"an!
Retaile#s a#e not s&ggest to "&#$hase "a#ti$&la# b#an( be$a&se of "e#sonal #elation o# that
$&sto%e# a#e b#an( lo!al
Ma#gin an( of bette# #elations +ith $ons&%e#s an( too "#o*i(e 1&alit! "#o(&$t to $ons&%e#s
the! s&ggest $ons&%e#s too b!e "a#ti$&la# b#an('
C&sto%e#s a#e loo)ing fo# an! t!"e of the "#o%otions on the "#o(&$t befo#e the% going to
"&#$hase'
P#i$e off. "#o(&$t b&n(ling an( e0t#a 1&antit! a#e %o#e (e%an(e( b! the $ons&%e#s o*e# othe#s
s$he%es'
2IRM- is %ainl! offe#ing $#e(it fa$ilit! +hi$h is offe#e( b! all %a/o# "la!e#s it %a! (iffe# in
the ti%e li%it of the $#e(it'
DUH att#a$ts %o#e $ons&%e#s th#o&gh s&$h "#o%otions. s&$h as (is"la! of the "#o(&$t. banne#s
et$'
Rec%!!e.*ati%.:
The fin(ings of the e%"i#i$al st&(! in(i$ate that &nless the b#an( to be "#o%ote( is in the $onsi(e#ation
set of the $ons&%e#. sales "#o%otion b! itself is &nli)el! to ha*e an! %a/o# i%"a$t' Clea#l! this sho+s
that %anage#s nee( to in*est into b#an( b&il(ing e0e#$ise so that hisFhe# b#an( a""ea#s in the
$onsi(e#ation set of the ta#get $ons&%e#s' Onl! afte# this sho&l( he s"en( ti%e. %one! an( ene#g! on
sales "#o%otion a$ti*ities'
Sales "#o%otion sho&l( not be &se( in isolation b&t nee( to be integ#ate( +ith othe# tools an( in line
+ith the o*e#all "ositioning of the b#an(' -lso the i%"o#tan$e of the #ole of %ass %e(ia $a%e o&t
$lea#l! in the st&(!'
Co%"anies nee( to $#eate s&ffi$ient a+a#eness abo&t sales "#o%otion s$he%es th#o&gh %ass %e(ia in
o#(e# to $#eate a+a#eness' 3MCG "#o(&$ts a#e lo+ in*ol*e%ent "#o(&$ts $ha#a$te#ie( b! s+it$hing
beha*io#' -lso the "e#son going to the sho" fo# the "&#$hase of soa" is the final (e$ision %a)e# of the
b#an(' Den$e it is essential that $o%"anies nee( to (esign att#a$ti*e. st#i)ing. *isible POPs fo# s$he%e
anno&n$e%ents'
4ith #es"e$t to nat&#e of s$he%e. the fin(ing s&ggeste( that "#e%i&% Af#ee giftB +as "o"&la# +ith
$o%"anies' 4hile both #etaile#s an( $ons&%e#s "#efe##e( "#i$e offs' So it is ne$essa#! that the
"e#$ei*e( *al&e of a f#ee gift has to be a""ealing an( high fo# the ta#get $ons&%e#s'
Re"etiti*e &se of the sa%e "#e%i&% fo# a "#olonge( "e#io( %a! ha*e negati*e effe$t on the lo!al
$&sto%e#s' 4hen the $o%"an! is gi*ing its o+n "#o(&$t f#ee as "#e%i&%. it nee(s to ens&#e the 1&alit!
of the "#o(&$t f#o% it as it is li)el! to /eo"a#(ie the i%age of both its "#o(&$ts'
The fin(ings e0hibite( that both the #etaile#s an( $ons&%e#s "e#$ei*e( that sales "#o%otion a$ti*ities
$a##ie( o&t b! the $o%"anies fo# in$#easing sales in sho#t te#% an( $lea#ing e0$ess sto$)s' 4hat it
i%"lies is that $o%"anies nee( to &se sales "#o%otion s!ne#gisti$all! an( $o%%&ni$ate so that the!
"#o*i(e *al&e to the ta#get a&(ien$e an( enhan$e b#an( 1&alit!Fi%age "e#$e"tions'
Co%"anies nee( to s!ste%atie info#%ation flo+ #ega#(ing sales "#o%otion a$ti*ities "a#ti$&la#l! at
(eale# an( #etaile# le*el' Ens&#ing "#o"e# info#%ation flo+ an( (e*ising $he$)s an( %eas&#es to #e(&$e
%isa""#o"#iations an( i%"le%entation flo+s sho&l( be $onsi(e#e( $#iti$al as"e$ts fo# the s&$$ess of
sales "#o%otion a$ti*ities b! the $o%"anies' -s #etailing is f#ag%ente(. (i#e$t #ea$h b! $o%"anies is
ne0t to i%"ossible' Th#o&gh (eale#s an( "#o"e# fee(ba$) %e$hanis%. $o%"anies )ee" in to&$h +ith the
%a#)et'
3#o% the st&(! it +as fo&n( that s%alle# #etaile#s felt negle$te( an( not enth&se( to i%"le%ent the
s$he%es. "a#ti$&la#l! +hen a((itional han(ling. sto$)ing. a$$o&nting +as #e1&i#e( on the "a#t of a
#etaile# +itho&t $o%"ensato#! %a#gins' It $an be seen that the #etaile# an( $ons&%e# "e#$e"tions
%at$he( +ith #es"e$t to "#efe#en$es of s$he%es. &n(e#l!ing %oti*ations an( #ole of %ass %e(ia' This
i%"lies that the #etaile# +o&l( be a #i$h so&#$e of info#%ation abo&t the $ons&%e# an( the li)el!
#es"onse to sales "#o%otion a$ti*ities'
De*elo"ing a s!ste% to ta" s&$h #es"onses f#o% ti%e to ti%e both at #etaile# an( $ons&%e# le*el +o&l(
be hel"f&l fo# "lanning f&t&#e sales "#o%otion a$ti*ities' In o#(e# to b&il( t#&st an( $o%%it%ent
$o%"anies sho&l( ta" "#efe#en$es. "e#$e"tions of #etaile#s as +ell as $ons&%e#s'
Li!itati%.( %, t)e (tu*#
4e $onsi(e#e( -h%e(aba( #egion onl! be$a&se of li%ite( ti%e (&#ation'
D&e to this. o&# sa%"le sie is onl! 899. +hi$h is not *e#! la#ge'
Y-ll the #es"on(ents $o&l( not fill thei# 1&estionnai#e on thei# o+n (&e to lang&age "#oble%
an( also "#oble% of ti%e an( la$) of "ositi*e beha*io#'
Res"on(ent %a! gi*e biase( ans+e# (&e to so%e la$) of info#%ation abo&t othe# b#an(s'
3in(ings of the st&(! a#e base( on the ass&%"tion that the #es"on(ents ha*e gi*en $o##e$t
info#%ation'
E!e"&i.& T"e.*(
So fa# as 3MCG %a#)et is $on$e#n the#e is ne+ t#en( is e%e#ging )no+n as H%i.t (a+e( 0"%!%ti%.'
-$t&all! it is ol( $on$e"t b&t it +as %o#e "#e*ailing in (&#able "#o(&$ts no+ it is $o%ing int#o non
(&#able goo(s also' 4hen an! sales "#o%otion s$he%e eithe# fo# t#a(e o# $ons&%e# is anno&n$e( b!
%o#e than one $o%"an! an( Fo# %o#e than one b#an( of the sa%e $o%"an!. it is #efe##e( as /oint sales
"#o%otion o# ho#iontal $o@o"e#ati*e sales "#o%otion o# $#oss "#o%otion o# &%b#ella sales "#o%otion'
C+a((i,icati%. %, ;%i.t (a+e( 0"%!%ti%.:
Use $o%"le%enta#il! (&e to nat&#al &se
2e+ &se $ate#ing $o%"le%enta#! #elationshi"s
Co%%onalit! of nee( (&e to &se ti%e
Tie@&" of a ne+ Fslo+ %o*ing b#an( +ith an establishe( b#an(
Ta#get %a#)et $o%%onalit!
Seasonal (e%an(
Dist#ib&tion $o%%onalit!
Ta#geting ne+ seg%ent
De#i*e( (e%an(
Co&nte#ing $o%"etiti*e /oint sales "#o%otions
C%.c+u(i%. %, t)e Su"e#
The st&(! #efle$ts that the &se of sales "#o%otion &n(eniabl! has in$#ease( o*e# the !ea#s in In(ia'
3&t&#e hol(s lot of "#o%ise fo# s&$h s$he%es a$#oss +i(e# #ange of "#o(&$t@%a#)ets'
Sales P#o%otion has $ease( to be %a/o# (iffe#entiato# at least in the %et#os. +ith al%ost all $o%"anies
offe#ing si%ila# f#eebies an( gifts' -s a #es&lt no+ %a#)ete#s ha*e to fin( o&t so%e inno*ati*e +a!s of
sales "#o%otion to (iffe#entiate f#o% $o%"etito#s' C&##entl! P#i$e off an( B!e one get one f#ee offe#s
a#e *e#! effe$ti*e to att#a$t the $ons&%e#s to+a#(s the "#o(&$ts'
4e ha*e note( that these )in( of "#o%otional tools a#e &sef&l fo# sho#t te#% in$#ease in sales an( to
in(&$e fi#st t#ial' These t!"es of "#o%otional s$he%es sho&l( be $onsistent an( $hange( f#o% ti%e to
ti%e (e"en(ing &"on season an( $o%"etito#5s s$he%es'
4ith the In$#easing n&%be# of s&"e#%a#)et. the b#an(e( "a$)age( goo(s +o#) as silent sales "e#son'
So in s&$h sto#es. sales "#o%otion "la!s a %o#e effe$ti*e #ole in sti%&lating $ons&%e#s5 (e%an(s'
One of the *e#! i%"o#tant fa$ts +e $a%e to )no+ f#o% this "#o/e$t is that sale of goo(s +hi$h $ontain
la#ge 1&antit! an( ha*ing big "a$)aging e'g' (ete#gent a#e stagnating be$a&se $ons&%e# "#efe# to b&!
s%all "a$) goo(s. the #easons a#e: s%all "a$) goo(s #e(&$e #is) of ba( 1&alit!. It ha( lo+ $ost o# sa!
"#i$e. an( last b&t i%"o#tant fa$to# i'e' %entalit! to "&#$hase /&st to t#! fi#st' Sales of s%all "a$) goo(s
a#e 1&ite high. b&t f#o% the $o%"an!5s "oint of *ie+ s%all "a$) goo(s is less "#ofitable $o%"a#e to
la#ge "a$) goo(s'
So he#e %a#)ete# t#ies to in$#ease sales of la#ge "a$) goo(s b! &sing sales "#o%otion ta$ti$s li)e "#i$e
off an( "e#$entage e0t#a'
Bi8+i%&"a0)#
BOOKS
Phili" Kotle#. Ma#)eting Manage%ent,. 88
th
e(ition. Pea#son e(&$ation -sia P&bli$ation'
C'R'Kotha#i. Resea#$h Metho(olog! %etho(s R te$hni1&es,.2e+ -ge
Inte#nationalA"Blt('"&blishe#s.:
n(
e(ition'
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A..exu"e
9ue(ti%..ai"e
Cu(t%!e"(
4e a#e st&(ents of MB- st&(!ing in GHS 2RIBM -DMED-B-D an( $a##!ing o&t a s&#*e! fo# o&# a$a(e%i$ "#o/e$t
toRole of sales "#o%otions in 3MCG,' So "lease fill this 1&estionnai#e' Yo&# i(entit! +o&l( not be #e*eale( an(
info#%ation +ill onl! be &se( fo# a$a(e%i$ "&#"ose'
I8' 4hi$h b#an( of Soa" F Dete#gent (o !o& &seC
I:' Do !o& al+a!s
b&! the sa%e b#an( of
Soa" F Dete#gentC
Pa#ti$&la#s Res"on(ent
Yes
2o
I=' 4hi$h fa$to#s (o !o& no#%all! $onsi(e# +hile "&#$hasing a "a#ti$&la# b#an( of Soa" F Dete#gentsC
3a$to#s
Bathing
soa" Det'"o+(e#
3#ag#an$e
I&alit!
Co%"an! i%age
P#i$e
Pa$)aging
Othe#s
I;' Do !o& $onsi(e# "#o%otional s$he%es +hile "&#$hasing a "a#ti$&la# b#an( of Soa" F Dete#gentC
Pa#ti$&la#s Res"on(ent
Dete#gent "o+(e# Res"on(ent
2i#%a s&""e#
4heel
S&#f
-#iel
Othe#s
Bathing Osoa"s Res"on(ent
H&0
Da%a%
Hifeb&o!
2i#%a
Othe#s
Yes
2o
I>' 4hi$h of the follo+ing "#o%otional s$he%es !o& ha*e $o%e a$#oss so fa#C
P#o%otional
s$he%es Res"on(ent
Co&"ons
"#i$e off
3#eebies
s$#at$h $a#(s
l&$)! (#a+
B&n(ling
e0t#a 1t!'
I6' 4hi$h %e(i&% (o !o& feel is s&itable to "#o%ote the *a#io&s "#o%otional s$he%esC
So&#$e Res"on(ent
Ra(io
TM
2e+s"a"e#
Doa#(ing
Othe#s
I?' Is the#e an! e0isting s$he%e on the Soa" F Dete#gent !o& a#e $&##entl! &singC
Pa#ti$&la#s Res"on(ent
Yes
2o
I7' If !es. "lease s"e$if!C
Pa#ti$&la#s Res"on(ent
=Q8FOthe#
3#ee
Dis$o&nt
2o i(ea
2o ans+e#
I<' If !o& get an att#a$ti*e "#o%otional offe# in the "#o(&$t othe# than of !o&# $hoi$e +ill !o& s+it$h
o*e#C
Pa#ti$&la#s Res"on(ent
Yes
2o
I89' Gi*e #eason fo# the sa%eC
Pa#ti$&la#s Res"on(ent
CostQ1t!
I&alit!
Satisfa$tion
B#an( lo!al
Mo#e
benefitFb&(get
Season $hange
2o ans+e#
I88' Gi*e s&ggestions abo&t f&t&#isti$ "#o%otional s$he%es'
Retaile#s
4e a#e st&(ents of MB- st&(!ing in GHS 2RIBM -DMED-B-D an( $a##!ing o&t a s&#*e! fo# o&# a$a(e%i$ "#o/e$t
Role of sales "#o%otions in 3MCG,' So "lease fill this 1&estionnai#e' Yo&# i(entit! +o&l( not be #e*eale( an( info#%ation
+ill onl! be &se( fo# a$a(e%i$ "&#"ose'
I8' Sin$e ho+ long a#e !o& in this b&sinessC
Pa#ti$&la#s Res"on(ent
8@> Yea#s
>@89 Yea#s
Mo#e than 89 !ea#s
I:' 2a%e the Soa" F Dete#gent ACo%"an!B !o& sto$) fo#'
Co%"anies Res"on(ent
2i#%a
DUH
PRG
Go(#e/
Othe#s
I=' Ran) the follo+ing fa$to#s that $&sto%e#s loo) fo# in the "&#$hase of Soa" F Dete#gent' ARan) f#o%
8 to 6B
3a$to#s 8 : = ; > 6
3#ag#an$e
I&alit!
Co%"an!
I%age
P#i$e
Pa$)aging
Othe#s
I;' Do !o& s&ggest $&sto%e#s to "&#$hase a $e#tain b#an(C
Pa#ti$&la# Res"on(ent
Yes
2o
I>' If Yes +h!C
Pa#ti$&la# Res"on(ent
Digh %a#gin
I&alit!
Relationshi"
2o #eason
I6' Do $&sto%e#s loo) fo# *a#io&s s$he%es in the "#o(&$tC
Pa#ti$&la# Res"on(ent
Yes
2o
I?' If !es +hi$h s$he%esC
P#o%otional
S$he%es
Res"on(ent
Co&"ons
P#i$e Off
3#eebies
S$#at$h Ca#(s
H&$)! D#a+s
B&n(ling Offe#
E0t#a I&antit!
I7' 4hi$h T#a(e P#o%otions (o *a#io&s $o%"anies offe#C
2IRM-
P#o%otions Res"on(ent
E0t#a Ma#gin
E0t#a Units
$#e(it fa$ilit!
Gifts
"#o%o' E0"'
DUH
P#o%otions Res"on(ent
E0t#a Ma#gin
E0t#a Units
C#e(it fa$ilit!
Gifts
P#o%o' E0"'
P R G
P#o%otions Res"on(ent
E0t#a Ma#gin
E0t#a Units
C#e(it fa$ilit!
Gifts
P#o%o' E0"'
GODREJ
P#o%otions Res"on(ent
E0t#a Ma#gin
E0t#a Units
C#e(it fa$ilit!
Gifts
P#o%o' E0"'
OTDERS
P#o%otions Res"on(ent
E0t#a Ma#gin
E0t#a Units
C#e(it fa$ilit!
Gifts
P#o%o' E0"'
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