AKNOWKEDGEMENT:

Project on the Impact of Sales Promotion on

Product Competitiveness of Fast Moving
Consumer Goods products in organized
retail:
Introduction:
Definition of 4P: The marketing mix refers to the set of
actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a
typical marketing mix - Price, Product, Promotion and
Place. However, nowadays, the marketing mix
increasingly includes several other Ps like Packaging,
Positioning, People and even Politics as vital mix
elements
Definition of Sales promotion:
It increases sales in the immediate time frame .It also
helps in introducing new product to the market. It
motivates the salesmen to sell more and sell the full
line out products. It adds excitements to the company’s
merchandise within the store. With the help of sales
promotion one can easily launch new products to the
trade as well as the customers. As already explained in
the earlier slide there are 2 types of sales promotion
used by the firms, 1) Trade promotion 2) consumer
promotion.
Trade Promotion - A few trade promotion objectives
and vehicles are as follows-
Objectives
1.Pushing the products through the
intermediaries 2. Persuading them to carry
more units than the normal level 3. Enthusing
them to participate in company-sponsored
promotion actives Vehicles – 1.Trade
allowances, these are of various kinds :
Merchandise allowances/incentive for shelf
space (Extra allowances for additional shelf
space and merchandising), display allowances.
2.Display contests/prizes. 3.Sales
contests/prizes.
 2. Consumer Promotion – Some of the
very common objectives and vehicles for the
consumer promotion are as follows –
objectives:
1.To engage and induce trail and purchase of a
product 2.Increase rate of the purchase
3.Generate consumer interest, which should
lead to trail
Vehicles – 1.Coupons 2.Gifs 3.Free samples
4.Exchange offers 5.Demonstratons

Objectives for sales promotion

1.Building Product Awareness – Several sales
promotion techniques are highly effective in
exposing customers to products for the first time
and can series as key promotional components in
the early stages of new product introduction
Additionally, as part of the effort to build product
awareness, several sales promotion techniques
possess the added advantage of capturing
customer information at the time of exposure to
the promotion In this way sales promotion can act
as an effective customer information gathering tool
(i.e., sales lead generation), which can then be
used as part of follow-up marketing efforts
2.Creating Interest – Marketers find that sales
promotions are very effective in creating interest in
 a product In fact, creating interest is often
considered the most important use of sales
promotion In the retail industry an appealing sales
promotions can significantly increase customer
traffic to retail outlets Internet marketers can use
similar approaches to bolster the number of
website inexperience Another important way to
create interest is to move customers to experience
a product. Several sales promotion techniques
offer the opportunity for customers
To try products for free or at low cost.
3.Providing Information – Generally sales
promotion techniques are designed to move
customers to some action and are rarely simply
informational in nature However, some sales
promotions do offer customers access to product
information For instance, a promotion may allow
customers to try a fee-based online service for free
for several days This free access may include
receiving product information via email
Reinforcing the Brand – Once customers has
made a purchase sales promotion can be used
to both encourage additional purchasing and
also as a reward for purchase loyalty (see loyalty
programs below)n Many companies, including
airlines and retail stores, reward good or
“preferred” customers with special promotions,
such as email “special deals” and surprise price
reductions at the cash register

Company Profile:
SPENCER:
• About Spencer - Spencer’s Retail Limited,
part of RP
Sanjiv Goenka Group is a multi-format retailer
providing a wide range of quality products across
categories such as food, personal care, fashion,
home essentials, electrical and electronics to its key
consumers. Specialty sections such as Spencer’s
Gourmet, Patisserie, Wine and Liquor, and the
recently launched Epicuisine section are some of the
key differentiators in our hypermarket stores
Spencer’s, being one of the earliest entrants into the
retail space in India, introduced the Indian consumer
to the concept of organized retailing. The first ever
hypermarket in India was launched by Spencer’s in
Hyderabad in 2000. Today, Spencer’s runs 120
stores, including 37 Hyper stores in over 35 cites in
India.
Spencer’s brand positioning – Makes Fine Living
Affordable – embodies its philosophy of delighting
shoppers with the best products and services that
enable a fine living at reasonable prices, while
providing them with a warm, friendly and educational
retail environment.

Heritage:
Since 1863, Spencer’s has been a part of the Indian
retail landscape. At one time, the Spencer’s Empire
stretched from Peshawar to Cochin, from Karachi to
Chittagong, spanning the length and width of
undivided India. Originally owned by a British
gentleman – yes, there was a Mr. Spencer (John
William Spencer, to be precise) – it acquired Indian
ownership in the 1960s, and became part of the
RPG Group in 1989. In 1995, RPG Enterprises, the
flagship company of the RPG Group, launched
'Food world' as a joint venture with Hong-Kong
based Dairy Farm International. The joint venture,
which operated supermarkets under the name 'Food
world' and hypermarkets under the name 'Giant',
was terminated in 2006. RPG retained 48 of the 93
stores it owned. These were re-furbished and their
launch under the brand name, Spencer’s, kicked of
a new phase in both the history of the Spencer’s
brand, and retail in India. Since inception Spencer’s
has been a consumer-centric brand, constantly
innovating, pioneering formats, evolving over time
but always keeping consumer needs and
satisfaction center-stage. Back in 1920, we were the
first grocery chain in India. In 1980, we became the
first supermarket chain, and in 2001, we introduced
India to the joys of hypermarket shopping. What has
remained unchanged for 150 years is the trust that
the Spencer’s brand evokes. To the consumer, it
carries the promise of innovation, quality, and
service; the confidence that they will always be able
to find a Spencer’s store at a convenient location;
that it will have a pleasant ambience; and that it will
offer a wide range of products at affordable prices.

Innovations:
Spencer’s has constantly helped reshape
the retail landscape in India, introducing a
host of innovations to make shopping even
more convenient and enjoyable for the
consumer. It’s a common perception that all
supermarkets and hypermarkets sell the
same things. However, Spencer’s proves
that wrong. While it does stock a lot of what
others stock, it puts in a great deal of effort
to stock a unique range of products as well.
Spencer’s Gourmet Centre: Run by a food
scientist Cordon Bleu Chef, the food
innovation wing researches world cuisines
and develops recipes for a wide range of
popular and trendsetting dishes. These
form the basis for developing its own range
of products, which includes delicious
cookies, sauces, pickles, juices and jams.
Spencer's Patisserie: The goodies from
the patisserie are freshly baked daily in the
live bakeries situated within the
hypermarkets. The offerings include
specialty breads, bakery and confectionary
items, crafted from Indian and International
recipes. The selection includes specialty
breads such as the Italian Boccaccio, the
French Baguette, the Mexican Spicy Salsa
Picante Bread, the Indian Masala Bread,
and the regular white, multigrain, whole
wheat and masala breads.
Fish & Meat: Spencer’s has a dedicated
space to sell fresh non- vegetarian items,
be it the finest pre-packaged cold cuts or
fresh seafood – right from live tanks in-
store.
Epicuisine: Spencer’s recently launched a
new section called Epicuisine, which serves
ready to eat dishes and ready to drink
juices, some from its very own live in-store
kitchen, and some packaged from popular
restaurants and caterers in the geography.
Edutainment Booklets: Want to serve
wine but not sure how? Want a recipe for
preparing cheese fondue? Curious to know
why organic food is supposed to be better
for you? Pick up a booklet and find out.
From the story of olive oil to the origins of
cocktails, the Spencer’s edutainment
booklets tell you about the products on offer
and how to use them.
Live Kitchens: Live Counters with Master
Chefs preparing gourmet delights are
always popular at buffets. Spencer’s
brought the concept to its stores in the form
of the Spencer’s Chef Corner, a first-of-its-
kind in-store experience that involved
customers. From Salads to Sushi, Pastas to
Satays to Cheese, the Spencer’s Chef
Corner gives customers an opportunity to
learn more about their favorite world
cuisines.
Wine & Spirits: Wine ignoramuses or
aficionados, this section caters to both, with
a wide range of wines expertly selected
from as many as 181 countries. Spencer’s
was, in fact, the first Indian retailer to offer a
selection of Wine & Spirits in its stores, and
the first to present an in- store wine and
cheese tasting experience to shoppers.

Differentiators
Spencer’s has chosen to differentiate by
establishing itself as the preferred shopping
destination for young customers looking for
a range of quality products that allows them
to indulge in a global lifestyle, yet at
affordable prices. It’s brand image of -
Makes Fine Living Affordable stands -
testimony to this philosophy. From daily to
weekly to specialty shopping, Spencer’s
strives to fulfill every need and provide
maximum convenience. Specifically, the
following distinguish the Spencer’s brand
and create a memorable all-encompassing
shopping experience for its shoppers:
Products – Spencer’s offers the widest
assortment of food and lifestyle (fashion,
home, entertainment), dealing both, with
brands and private labels. It has different
special sections within its hypermarkets to
delight the customer Quality – Quality is a
major reason why Spencer’s is well-regard
by it’s shoppers. Spencer’s lays a huge
emphasis on all-round quality in products,
stores, service standards, and customer
engagement programs. It’s “Quality since
1863” tagline has stood the test of time.
Heritage – Spencer’s is India’s oldest
retailer tracing its roots back to1863. The
brand has many firsts to its credits.
Innovations/Specialty – In Spencer’s
hypermarkets, the shopper can find
specialty sections such as a live bakery, the
patisserie, a nut’s counter, a dedicated wine
& liquor section, and Epicuisine.
Promotions – Spencer’s seek to offer the
right products at the right time at the right
price, with promotions carefully designed to
suit the needs and wants of the consumers
monthly, weekly and daily shopping basket.
Brand Imagery – Spencer’s stores have
contemporary and international interiors,
and it's extensively trained staff strive to
make customers feel at home while they
shop, with a welcoming and trusted
aptitude.

Analysis and interpretation

We have found that these sales promotion
techniques are being used mostly in
Spencer's –
A) Gift- Companies distribute gifs to
gain direct as well as indirect sales
promotion effect .When they distribute
them to consumer and dealers with a
link to sell it is a case of direct sell
promotion .
B) Coupons- Coupons are certificates
that offers price reductions to consumer
for specified item. Coupons are
distributed through news papers and
magazine advertisement or through the
package of the goods .
C) Free samples- Free sample means
offering a small quantity of a product
free in order to persuade consumer to
try that product .Free samples are
mainly distributed when a new product
is released into the market .
D) Exchange offer- In consumer
durable market exchange offer has
become the common sales promotion
tool. Consumer surrender their old
product (TV, Mobile) for a certain price
and take home a new model of that
product.
E) Demonstrations- Usually companies
resort to product demonstration (Demo)
as a part of sales promotion . When they
 come up with a product that is new to
the market they send out few of those
product as a sample (Demo)
F) Visual merchandising- Visual
merchandising refers to anything that
can be seen by the customer inside and
outside a store, including displays,
decorations, signs and layout of space.
The overall purpose of visual
merchandising is to get customers to
come into the store and spend money
G) Additional margin- Additional
margin is a very efficient way of trade
promotion . Usually a company offers
Bulk purchasing i.e. purchase of much
larger quantities than the usual, for a
unit price that is lower than the usual.

But after conducting through analysis we

have found these following kinds of
promotion influences the consumer of the
most-
TRADE PROMOTION-
VISUAL MERCHANDISING DISPLAY:
visual merchandising has a big role in
sales promotion . proper visual
merchandising /display at store level/point
of purchase promotes sales by promoting
the consumer to switch over to the display
brand ,ignoring existing brand loyalties .It
also persuades consumers to buy now
rather than later . It also makes the
consumer to buy more then the original
intending quality n
CONSUMER PROMOTION-
Discount-Sale promotions often come in
the form of discounts. Discounts impact
the way consumers think and behave
when shopping. The type of savings and
its location can affect the way consumers
view a product and affect their purchase
decision .The two most common
discounts are price discounts (“on sale
items”) and bonus packs (“bulk
items”).Price discounts are the reduction
of an original sale by a certain percentage
while bonus packs are deals in which the
consumer receives more for the original
price.
DEMONSTRATION & SAMPLING-
Demonstrations are usually performed at
large retail locations, such as
supermarkets, department or discount
stores, or in shopping malls. The products
that are promoted at in-store
demonstrations may be food and
beverages, food preparation equipment,
housekeeping products, personal care
items, or occasionally other types of
goods. The samples that are distributed
may either be in readymade packets pre-
assembled for the demonstration, or are
prepared on site by the demonstrator.
Some demonstrations involve the
distribution of prepared food, requiring the
demonstrator to bring equipment such as
a microwave oven or hot plate to the
location.
Conclusion:

As during the last few years Spencer's

have evolved as one of the recognized
and respectable FMCG retail
organization, thus all the big brand
players are also running to take space in
Spencer's to develop not only current
sales but also to target the right customer
for long run success. And this can be
achieved with appropriate kind of
promotion mix in Spencer's, which is done
by Visual Merchandising Many of the
FMCG products are being purchased on
impulse from any of the organized retail,
thus visual merchandising has become an
inevitable part of the retail sector.
Especially usage of Bay-breaker, FSU
and Cash till POPE is very highly
influential. Any signage or shout-out
explaining the offers running on the
product has also been very important to
trade up the sales. Demonstration &
Sampling becomes useful only if the
kiosks are placed in right location, right
time and well versed promoter.