A Synopsis on

A study on sales promotion strategies in logistics services with special

reference to VRL LOGISTICS
Submitted to

BENGALURU CENTRAL UNIVERSITY

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

BHARATH MAHESHAPPA GADDIKERI

(MB183210)

Under The Guidance of

Prof. Tahseen
Assistant Professor

GOVERNMENT RAMNARAYAN CHELLARAM COLLEGE OF

COMMERCE AND MANAGEMENT

Basaveshwara Circle, Palace Road

BENGALURU – 560001

2019-2020
 A study on sales promotion strategies in logistics services with special
reference to VRL LOGISTICS

Title of the study:-

Title of the proposed study is “A study on sales promotion strategies in logistics services with
special reference to VRL LOGISTICS”.

Review of Literature:-
Kotler (2003) claims that while advertising is used as a long term technique for enhancing the brand
value, sales promotions are mostly used in order to create a short term demand for the products,
hence sales promotions are actively and increasingly used by brand managers because of their
effectiveness in some of the cases. Taking this into account, it is worthwhile for every marketer to
review such an important tool as sales promotions.
Diamond and Cambell (1989), together with Lowengart (2002) propose the definition of a sales
promotion, characterizing it as short term stimulations of purchase or sales of a products or service.
To add, Lowengart (2002), after the analysis of many sources suggest more comprehensive
definition, describing it as a number of tactical (but not strategic) tools developed as a part of
strategic marketing framework, with the aim of adding a value to the products of services to attain a
specified marketing objectives. Although varied within different groups and targeted markets, sales
promotions is proved to be an effective tool in increasing the sales, in addition to the relative ease of
measuring this effectiveness (Kwok and Uncles 2005, Brookins 2009, Odunlami and Ogunsiji,
2011). It is also considered as an effective technique while targeting sales promotions to a range of
the particular niches, and also while trying to increase the level of differentiation, in order to
develop more precise campaign with the high chances for success (Diamond and Campbell 1989,
Boulding et. al. 1994, Lichtenstein et. al. 1997, Chandon et. al. 2000). However, Uva (2000) and
Lichtenstein (1997) give notice about the dangers related to the decreased perceived value if the
sales promotions are improperly targeted, Uva also notices that the most effective implementation
of sales promotion can be done providing the superior product quality and value, but which has a
sign of low product awareness, implying the fact that it can be a good tool during the introduction
of a new product. Kotler (2003) notes that sales promotions can be used as an alternative for
increasingly costly advertising campaigns, while Philip Jones (1990) notes that there are the dangers
of the prices promotions related to the dramatic decrease in profits as the result of improperly
developed tactics of sales promotions. To add, Low and Mohr (2000) claims that brands with higher
spending on advertising, comparing to sales promotions, usually have more positive customer
attitudes, higher value of brand and higher market share.
Therefore the appeal of using the sales of promotions related to the increase of the advertising
costs can be disputable in some of the cases, as many academic sources suggest.
According to Srinivasan and Anderson (1998), and also d'Astous and Landreville (2003), there are
several main objectives for implementing sales promotions, which were revealed in their
researches. One of the most evident reasons for sales promotions’ implementation is to increase
the short term sales, but it also used for increasing the awareness of already existing product and
stimulating the sales during the off-peak time, they suggest. To add, employing sales promotions
during the introduction of a new products and even an entire new product line is considered as
very effective way to accept the expansion or switch to a new product, because of the lowered
hesitations in trying a new product or product line, and this is true for both goods and service
companies (Kalish 1985, Pauwels et. al. 2003). Anderson (2009) also notes that the best tools
during the introduction of the sales of a new product or product line are discounted or free
accessories and discounts towards a purchase of the already popular product providing the
customer purchases the new products or disseminating pricing coupons – all of them are evidently
increasing the sales of new products (Kalish 1985, Infosino 1986). Anderson (2009), together with
Taylor et al. (2004), state that implementing sales promotions can help establish the high level of
brand loyalty for the customers mainly oriented on the prices, and also increase the brand loyalty
of the customers who tend not to have any preferences regarding the brand choice. However this
statement is actively challenged and disputed by Mela et. al. (1997) who notices that sales
promotions increase the prices sensitivity of non-loyal and low-loyal customers, deteriorating
brand equity in the long run, while Lichtenstein (1993) also reveals that the price is considered as
indirect measure of the standards of the products’ quality perceived by the customers, thus
decreased costs would mean deteriorated quality. To add, Yoo et. al. (2000) summarizes the
previous researches and concludes that sales promotions and especially prices promotions are
decreasing the value and equity of a brand, despite of the well-defined and known short term
benefits to both consumer and producer. Also, one of the reasons for employing sales promotions
is boosting volumes of sales via motivating supply chain, in spite of the fact that the results can be
unprofitable in some of the cases (Abraham and Lodish 1990). However, this method can lead to
bullwhip effect - extremely volatile demand patterns as the result of improperly managed sales
promotions (Mentzer et al.2001, Disney and Towill 2003).
 The literature review that was done has revealed that sales promotions have an array of reasons
and arguments for their employing. Sales promotions are proved to be a solid support of the
tradition media advertising, however, the certain ratio of the budgets allocated to advertisement on
the one hand, and sales promotions one the other are disputable. But, it is undisputable that it
actively encourages the increase of short term sales, it also gives an additional incentive to
purchase if the customer is not sure about the choice. It also a convenient tool for measuring own
effectiveness. But, it is worthwhile to mentions that the majority of these benefits do not continue
for a long time, especially if the promotional campaign is over. To add, sales promotions often
harm the value of brand and image of a company, as many sources suggest. To conclude, this
literature review was very useful for comprehending the issue of sales promotion. However, the
topic of the research could be more specific in order to make it less descriptive and more engaged
in comparing and contrasting different academic articles and researches.

Need for the study :-

A study on Sales promotions on services provided by VRL logistics,
➢ This study is restricted to the logistics services offered by VRL services & the time period of
the study is between Feb to May.
➢ The study provides the impact of the level of logistics service in the market.
➢ The project determines the trade and logistics management facility.
➢ The project deals with measurement of service, and links with internal performance appraisal
and improvement process of trade industry.

Statement of Problem :-
The Statement of the Problem can be enumerated as follows :- “The study aims at the Customer
Perception of VRL Logistics Ltd, thereby the understand the customers preferences of the
company and to make effective strategy in order to increase the growth of the company.”
Objectives of the study :-
1. To study the customer perception of service provided by VRL Logistics Ltd.
2. To know the service provided by value added services.
3. To study the relationship between the customer and transporter and the factors of perception.
4. To identify the problems if any in the field of customer perception in the logistics sector and
come out with solution for the problem.
5. To give feasible suggestion to the company about the improvement in quality of services.

Scope of the study :-

➢ This study is restricted to the logistics services offered by VRL services and the time period of
the study is between Feb to May.
➢ The study provides the impact of the level of logistics service in the market.
➢ The project determines the trade and logistics management facility.
➢ The project deals with measurement of service, and links with internal performance appraisal
and improvement process of trade industry.

Research Methodology :-
1. Participants Since the required information will be collected mostly from secondary sources
there will be no direct participants from the organization for the study. However, informal
interaction will be carried out with management and managers of various departments to
understand the procedures adapted.
2. Research Design The research is a descriptive research, as it includes of plotting and
information gathering. It involved identification of the workforce capabilities required to perform
the business actions. Once the competencies are identified, plotting is done as per organization
chart. Descriptive research comprises of surveys and fact-finding enquires of various kinds. The
main feature of this design is that the researcher does not have control over the variables. It could
be often done with surveys and it may also be done by observation.
Data Collection Tools
1. Primary Data
The primary data is collected through questionnaires administered to a sample of 100 customers
selected from Bengaluru city, the questionnaire before it was administered. A structured
questionnaire is prepared and being circulated which contains set of statements so that the
respondent will find it easy to give the level of agreement on the given statements. While working
with the company efforts will be made to observe the behaviour of the employees, problems faced
by them, effectiveness / drawbacks of the company’s present HR policies regarding grievance
management and handling system of the employee in the company. A face-to-face interview is
used for interaction between the interviewer and the respondent for information. Responses will be
recorded and complied to gain a better understanding of the research problem. Business,
restricting and distorting to the flow of information during the interview will be avoided.

Data Analysis Tools

Visual format for market data analysis. Analysis tools provides charts, tables, and graphs to
visualize all kind of market data in order to analyse. In a simple screen, users can perceive global
trends, learn market signals and select the best assets for their marketing.

Plan of Analysis
Analysis is a science of scientific research. You can search, clean, edit and modify processes,
make suggestions and make decisions to find useful information. There are many facts and
procedures involving many techniques in data analysis. The data were analysed by a simple
analysis technique. The collected information will be presented in a table to understand and
interpret tables, graphs and information. The information gathered was tabulated. After analysing
the data collected and presented in tables and graphs, the results will be based on the data
collected and the images will be taken. After that, the innovations are tested and set up to create a
break that can be improved with good recommendations.
Limitation of the study :-
➢ The study confined to Bengaluru and may not be relevant to other counter parts.
➢ Since only 100 samples were taken for the study the generalization made for the entire
population may not be true.
➢ Since there are no funds allotted for the research study, all expenses related to travels, printing
of questionnaires and stationary will have to be borne by the student itself.
➢ The study is targeted to the small business and so acceptance of VRL services by corporate and
individuals have covered under the study, because they form major source of revenue for VRL.