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Sales Promotion of Television Industry
Sales Promotion of Television Industry
TELEVISION INDUSTRY
RESEARCH EXTRACT
Introduction: Sales promotion consists of a variety of companies. Sponsored promotional activities that supplement both advertising and personal set up. These activities are impersonal and can be directed at industrial buyers, intermediaries or consumers. Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade. Sales promotion tools vary in their specific objectives. Incentive type promotions are used to attract new buyers, to reward loyal customers and to increase the repurchase rates of the occasional users. Sales promotion often attracts the branch switchers, because users of other brands and categories do not always notice or act on a promotion. In using the sales promotion a company must establish its objectives, select the tools develop the program, a pretest the program, implement and control it and evaluate the results. Objective:
To understand and analyze various factors influencing sales promotion program in home appliances (TELEVISION) industry.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
To know the factors which influence the purchase decision? To measure the sales promotion effectiveness in home appliances ( TELEVISION) Industry. It attracts the brand switchers and increases the sales volume.
Scope of study The scope of the study gives an idea to develop the sales promotion activities in home appliances (Television) industry. It involves the evaluation of the present promotional activities. With the help of the study we can give suggestion regarding sale promotion and services offered by the home appliances (Television) industry. The study brings an awareness of the sales promotional activities by advertising in an accepted media. Research methodology Research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures. The research design used for this study is Descriptive Research. It focuses on the accurate description of the variables in the problem model. Any source of information can be used in a descriptive study, although most studies of this nature rely on secondary data source of survey research. The sampling design followed in the survey is simple random probability sampling in which each population element has a known and equal chance of selection.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
Sample unit: Generally customers as a source of primary data collection have been surveyed for the purpose of obtaining information. Sample size For this research work due to time constraint the sample size taken is 250. Sampling procudure: Consumers have been surveyed through the questionnaire in personnel. Contribution of the study The main purpose of the study is to know the effectiveness of the promotional activities in the home appliances (TELEVISION) industry. From the study we expect to know to what extent the promotional activity benefited to the industry and what the things are that customer expects to do from the industry to improve sales. The effectiveness of promotional activities helps the company to increase the sales and encourage the repeat purchase. We also try to know the awareness of the sales promotional activities as advertising plays an important role in sales promotion.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
INTRODUCTION
Sales promotion consists of a variety of companies. Sponsored promotional activities that supplement both advertising and personal set up. These activities are impersonal and can be directed at industrial buyers, intermediaries or consumers. Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade. Sales promotion tools vary in their specific objectives. Incentive type promotion is used to attract new tiers, to reward loyal customers and to increase the repurchase rates of the occasional users. Sales promotion often attracts the branch switchers, because users of other brands and categories do not always notice or act on a promotion. In using the sales promotion a company must establish its objectives, select the tools develop the program, a pretest the program, implement and control it and evaluate the results.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
Where advertisement offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion (samples,coupons,cash refund, price off,premiums,prizes,patronage rewards, free trials,warranties,tie-in-offers cross promotion, point of purchase displays and demonstration);trade promotion(price off, advertising and display allowances and free goods);and business and sales force promotion(trade shows and conventions, contests for sales reps and specialty advertising)
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
Accessing the product promotion strategy of home appliances (Television) companies, the study is applied descriptive in nature. It also tends to find impact of different communication channels and advertisement on consumers. At the same time it was intended to find out the fastest moving Television brand in the market, it also intended to find out the customer satisfaction level of different brands of Television users.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
The scope of the study gives an idea to develop the sales promotion activities in home appliances (Television) industry. It involves the evaluation of the present promotional activities. With the help of the study we can give suggestion regarding sale promotion and services offered by the home appliances (Television) industry. The study brings an awareness of the sales promotional activities by advertising in an accepted media.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
To understand and analyze various factors influencing sales promotion program in home appliances (Television) industry.
To know the factors which influence the purchase decision. To measure the sales promotion effectiveness in home appliances (Television) Industry.
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
METHODOLOGY
The review of literature session analyzes the significant research studies. The secondary data may be used as a sole for a research study. Since in many research situations one cannot conduce primary research because of physical, legal or cost influences. The researcher procured and compiled the data in its normal operations within its premises. The researcher has collected the company profile and the sample profile from the various internal reports by the company. The external secondary data recourses has been obtained by researcher from the Central library, Government sources, Commercial sources and Industrial sources as well as from the internet. In the present scenario, the Internet facilitate the researcher in such way that where the researcher can collect everything. Perhaps, it includes the profile of the company, library sources as well as historically significant research studies.
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SALES PROMOTION
TELEVISION INDUSTRY
CONCLUSION
The review of literature has facilitated the researcher to have a familiarity with the research problem undertaken and also is indicates the deficiencies as well as informational gap. In result of this the researcher can make the primary data collection more specific and more relevant research study. It has helped the researcher to explore the research problem in an improved way. It has change the earlier idea of the research. The review of literature are an integral part of a large a research study or of a report to justify having bypassed the cost and benefits of doing primary research. Primarily the research is depending on primary data through the literature review helped the researcher to understand more inside to the research problem by analyzing relevant research studies. For any research problem, when secondary data is too exhaustive, the researcher could depend on secondary sources. With the short span of time the literature review has helped the researcher to have a strong background of the study.
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SALES PROMOTION
TELEVISION INDUSTRY
Sampling Technique:
Sampling is simply the process of learning about the population on the basis of a sample. Thus in a sampling technique instead of every unit of the universe only a part of the universe is studied and conclusions are drawn on the basis for the entire universe. A sample is a subset of the population units. The researcher has adopted Random Sampling because population is known.
Sample size:
The researchers main concentration is to reduce the cost substantially. Now if the researcher surveyed to a relatively smaller number of units would mean relatively high cost per interview. Hence, the sample size consists of 250 for this research.
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SALES PROMOTION
TELEVISION INDUSTRY
Sample Description:
The study was conducted with in the limits of Bangalore City. It covers various places like J P nagar, Indhira nagar , Koramangala and B T M layout.
Instrumental Techniques:
The researcher has done the communication method by having a structured non-disguised questionnaire. A structured non-disguised questionnaire is the one where the listing of questions is in a prearranged order where the objective of the enquiry is reveled to the respondents. Most market studies use this type of questionnaire. It may be mentioned that in large majority of cases it has been felt that the respondents should be taken in to confidence and clearly told why the survey is being undertaken so that the respondents would realize its relevance and give desired information accurately. The structured non-disguised questionnaire consists of dichotomous questions, multiple choice questions, ranking scales, and close-ended questions. The researcher has used structured non-disguised questionnaire.
The researcher has collected the actual data through personal survey with the help of a structured non-disguised questionnaire.
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SALES PROMOTION
TELEVISION INDUSTRY
The researcher has to exercise great care in choosing the method on the basis of a couple of criteria or considerations which he thinks are important in the survey so the given short span of time, if the researcher would go ahead with mail survey or email survey or personal observation never be cost effective, so in order to overcome from all these difficulties the researcher has done the actual field work by personal survey. In this process the researcher has submitted a well-structured questionnaire to the respondents by meeting them personally.
In attempting to arrive at decisions about the population, on the basis of sample information it is necessary to make assumptions or guesses about the population parameter involved. Such an assumption is called statistical hypothesis, which may or may not be true. The procedure, which enables the researcher to design on the basis, is sample regards whether a hypothesis is true or not is called test of hypothesis or test of significance. The null hypothesis asserts that there is no significant difference between the statistics and the population parameters and what ever is observed difference is there, is merely due to fluctuations in sampling from the same population. Null hypothesis is thereby denoted by the symbol H0. Any hypothesis, which contradicts the H0, is called an alternate hypothesis and is denoted by the symbol H1. The researcher has used chi-square analysis.
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SALES PROMOTION
TELEVISION INDUSTRY
CHI-SQUARE TEST The 2 is one of the simplest and most widely used non-parametric test in statistical work. It makes no assumptions about the population being sampled. The quantity 2 describes the magnitude of discrepancy between theory and observation i.e. with the help of 2 test we can know whether a given discrepancy between theory and observation can be attributed to chance or whether it results from the inadequacy of the theory to fit the observed facts. If 2 is zero, it means that the observed and expected frequencies completely coincide. The greater the value of 2, the greater will be the discrepancy between observed and expected frequencies. The formula for computing chi-square is 2 = (O-E) 2/E Where, O=Observed frequency E=Expected or theoretical frequency
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SALES PROMOTION
TELEVISION INDUSTRY
HYPOTHESIS
Table Number 1. Table shows the relation between the various sales promotion tools and the opinion of the respondents. Chi-Square Analysis.
Agree 70 63 80 85 78 376
Neutral 40 32 28 43 70 213
Disagree 33 35 25 32 20 145
Ho: There is no significant association between the sales promotion tools and the opinion of the respondents about sales promotion tools.
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CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
H1: There is a significant association between the sales promotion tools and the opinion of the respondents about sales promotion tools. Degree of freedom =16 Level of significance =5% Calculated value= 47.791 Table value = 21 Inference Since the table value is less than the calculated value. So Hypothesis is rejected. Hence there is a significant association between the sales promotion tools and the opinion of the respondents about sales promotion tools.
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SALES PROMOTION
TELEVISION INDUSTRY
No of respondents 107 55 53 35
Percentage 43 22 21 14
INTERPRETATION: 43% of them say LG, 22% of them say samsumg and 21% of them say its BPL while 14% of them say its others.
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TELEVISION INDUSTRY
GRAPH 1:
21%
22%
L.G
Source: Table no 2
SAMSUNG
BPL
OTHERS
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TELEVISION INDUSTRY
TABLE 3:
Table showing which company does live demonstration.
No of respondents 75 53 72 50
Percentage 30 21 29 20
INTERPRETATION: 30% say its LG, 29% say BPL and 21% of them say its SAMSUNG while 20% of them say other companies live demonstration is good.
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SALES PROMOTION
TELEVISION INDUSTRY
GRAPH 2:
Graph showing which company does live demonstration
BPL SA MSUNG
L.G
Source: Table no 3
SAMSU NG
BPL
OTHERS
TABLE 4:
DEPARTMENT OF MANAGEMENT STUDIES 21 CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
No of respondents 73 77 65 35
Percentage 29 31 26 14
INTERPRETATION: 31% of the customers say SAMSUNG, 29% of them say LG, 26% of the customers say its BPL while 14% of them say its others.
GRAPH 3:
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SALES PROMOTION
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C U S T O M E R E D U C AT IO N
14 % 29%
26% 31 %
L .G
Source: Table no 4
S AMS U N G
BPL
O TH E R S
TABLE 5:
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TELEVISION INDUSTRY
No of respondents 25 180 7 38
Percentage 10 72 3 15
INTERPRETATION:
72% of the customers say its television, 15% say outdoor, 10% say magazines while 3% say its FM Radio.
GRAPH 4:
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72%
Source: Table no 5
TABLE 6:
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Particulars Yes, always Depend on the brand name No, will go for the own brand
SOURCE: primary data
No of respondents 75 115 60
Percentage 30 46 24
INTERPRETATION:
46% of the customers say it depends on the brand name and 30% of them say yes, always, while 24% of them say no, will go for the own brand.
GRAPH 5:
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46%
Ye s ,a lw a ys D e p e n d o n th e b ra n d n a m e N o , w ill g o fo r th e o w n b ra n d
Source: Table no 6
TABLE 7:
Table showing sales promotion tools.
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SALES PROMOTION
TELEVISION INDUSTRY
Strongly agree 80 90 95 70 65
Agree 70 63 80 85 78
Neutral 40 32 28 43 70
Disagree 33 35 25 32 20
Strongly disagree 27 30 22 30 17
INTERPRETATION:
23% of the customer say discount offer, 18% of them also say its warranties, 20% of them say exchange offer, 23% of them say prizes while 16% of them say its Tie-in-offers.
GRAPH 6:
Graph showing sales promotion tools.
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SALES PROMOTION
TELEVISION INDUSTRY
Discount offer
Prizes
Warrenties
Tie-in offers
TABLE 8:
Table showing point of purchase display.
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CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
No of respondents 73 77 65 35
Percentage 29 31 26 14
INTERPRETATION:
31% of the customers say its SAMSUNG, 29% of them say LG, 26% of them say BPL, while 14% say others.
GRAPH 7:
Graph showing point of purchase display.
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14%
L.G
SA MSUNG
OTHERS
Source: Table no 8
TABLE 9:
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TELEVISION INDUSTRY
No of respondents 43 115 52 40
Percentage 29 31 26 14
INTERPRETATION: 31% of the customers say its SAMSUNG, 29% of the customers say LG, 26% of them say BPL while 14% of them say its others.
GRAPH 8:
Graph showing demand of companies trade shows and fairs
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21% 46%
L .G
S AMS U N G B P L
OTH E R S
Source: Table no 9
TABLE 10:
Table showing demand of companies cross promotion activities.
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CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
No of respondents 40 102 83 25
Percentage 16 41 33 10
INTERPRETATION: 41% of the customers say its SAMSUNG, 33% of them say its BPL, 16% of them say LG while 10% of them say its others.
GRAPH 9:
Graph showing demand of companies cross promotion activities.
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TELEVISION INDUSTRY
33% 41%
L .G
SAMS U N G B PL
O TH ER S
Source: Table no 10
TABLE 11:
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TELEVISION INDUSTRY
Particulars Yes No
SOURCE: primary data
No of respondents 180 70
Percentage 72 28
INTERPRETATION: 72% of them say yes while 28% of them say no.
GRAPH 10:
Graph showing level of satisfaction
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TELEVISION INDUSTRY
Level of satisfaction
28%
72%
Yes
No
Source: Table no 11
TABLE 12:
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Particulars Prices are cheap & quality is good Durable Friendly sales team Brand image is demanding
SOURCE: primary data
No of respondents 53 60 45 92
Percentage 21 24 18 37
INTERPRETATION:
37% of the customers say brand image is demanding, 24% of them say durable, 21% of them say prices are cheap and quality is good while 18% of them say friendly sales team.
GRAPH 11:
Graph showing reason for satisfaction
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24% 18%
Source: Table no 12
CONCLUSION OF ANALYSIS
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TELEVISION INDUSTRY
Majority of the customers say they own L G television followed by that is Samsung with 22%. Majority of the customers live demonstrations of L G is more effective compared to other television company. Majority of the customers say that Samsung is providing better customer education more than any other company Majority of the customers say that advertisement through television is more effective. If any gifts are offered with the brand majority of the customer say that it depend on the brand name which is provided followed by that is yes , always
Majority of the customers say that Samsung trade shows and fairs are on demand but some says that its cross promotion activities are in demand. Majority of the customers are satisfied with the brand and the reason for that is brand image is demanding and its durable.
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CITY COLLEGE
SALES PROMOTION
TELEVISION INDUSTRY
Sales promotion is a most important aspect in any company, the study was conducted in the home appliances industry regarding sales promotion. The researcher was helpful to gain some knowledge about the organization and also about sales promotion conducted in the organization. The company is getting the feedback from the respondents who are using the television. Based on the study made the researcher has given few findings and suggestions regarding the sales promotions of the industry.
IMPLICATION
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TELEVISION INDUSTRY
All the three companies that are LG, SAMSUMG, and B P L companies will be able to face the steep competition from the local manufacturers who are also quite competent with the Television manufacturing technology. Since price is the main factor for most buyers, companies will be able to stay in the market with competitive price and may be with a lower profit margin, which can be compensated through flat screen. This technology is not readily available with the local manufacturers. Companies will be able to convince the customers in a dignified manner rather than buying their minds through gift schemes.
SUGGESTIONS:
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TELEVISION INDUSTRY
Since majority of the customers is in favor of live demonstration of LG. they should prioritize more in rest of the sales promotional tools to attract more customers.
In case of Samsung it provides better customer education and fabulous trade shows but it has to focus more on live demonstration exchange offers, discount offer, prices warranties and so on.
In the sales promotional tools BPL is highly lacking behind compared to LG and Samsung. Therefore, they should do something to uplift these tools in order to attract the customers.
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CITY COLLEGE