A STUDY TO EVALUATE THE EFFECTS OF SALES PROMOTION ON CONSUMER PERCEPTION BIGBAZAAR (Retail Chain) AS CASE September-2009

Supervised by:

Mrs. June Dennis

Written by:

Dipin Kuzhikkattumeethal 77014141

Submitted in partial fulfilment of the requirement for the Degree Msc Purchasing & Logistics Faculty of Business
1

Acknowledgement
I begin my acknowledgement by thanking almighty who was with me all through the way I express my whole hearted thanks to Mr.Noor Alam Ansari, Store Manager, Big Bazaar who gave me an opportunity to undertake this project in this esteemed organization I am extremely grateful to Mr. Vivekananda, Marketing Manager, Big Bazaar for his stimulating support and guidance through out the study in spite of his busy schedule I deeply express my thanks to Mr.Uma Nath who helped and supported me in the course of study I extend my sincere gratitude to my project guide Mrs June Dennis, Reader for the guidance given to me during the course of this dissertation. I express my sincere thanks to all the staff of Big Bazaar and all those who have directly or indirectly helped me during the course of study. I am greatly indebted to my parents, friends, relatives for their constant support and encouragement throughout this program.
2

C NE T O TNS
Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Chapter-1 Introduction 1.1) Research Problem 1.2) Scope and Significance of the study 1.3) Objective of the study Chapter-2 Research methods 2.1)Introduction 2.2)Purpose of research 2.3) Research design 2.4) The research approach 2.5) The research strategy 2.6) Types of research 2.7) Survey strategy 2.8) Secondary research 2.9) primary data 2.10) sampling 2.11) Data Collection methods 2.12) Data analysis 2.13) Ethical issues 2.14) Limitations 2.15) Conclusions. Chapter-3 Literature Review Introduction 3.1)Consumer behavior Title Page No. 7 9 9 10 11 11 11 12 13 14 14 15 15 16 17 19 20 20 20 21 22 22 22

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

Fundamentals of consumer behavior Factors influencing consumer behavior motivation Human need Factors influencing the buying decision Role of Marketing activities and functions in consumer behavior Role of marketing activities in retail industry 3.2)Promotion and perception Introduction promotion Sales promotion Objectives of sales promotion Importance of sales promotion Disadvantages of sales promotion Sales promotion in retail industry. 3.3) Perception Introduction Importance of consumer perception Stages of perception Importance of under standing perception 3.4) Promotion and perception the core element of marketing Introduction Various factors influencing promotion and perception Elements of promotion mix Importance of communication in sales promotion Importance of price and loyalty in sales promotion 3.5) sales promotion and perception from retailers point of view introduction Types of retail ales promotion 3.6) Industry profile, retailing A view over retailing Indian retailing 4

23 23 24 25 26 27 28 29 29 29 30 31 31 32 33 35 35 36 36 36 38 38 39 40 42 43 45 45 45 50 50 50

56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74

Organized formats of retailing in india 3.7) Company profile Big bazaar Business description of Bigbazaar Insight to Bigbazaar Goals Mission Business strategies of Bigbazaar The merchandising mix of Bigbazaar 3.8) Theoretical frame work, retailing Nature and scope of retailing Types of retailers Retail marketing decisions Chapter-4 Analysis and interpretation Chapter-5 Findings, summery, suggestions and recommendations Chapter-6 Conclusion Chapter-7 Bibliography appendix 1 : appendix 2 : appendix 3 : statement of originality and authenticity self reflective learning statement questionnaire

50 51 52 53 53 53 54 56 57 57 57 59 61 75 79 81 84 85 89

ABSTRACT

The main aim of this research is to understand effects of sales promotion on consumers perception. Here in this research the major benefits of sales promotion, various types of sales promotion and how influential these promotions are in the process of making buying decision are clearly analysed and explained. This research also tries to find out the effectiveness of various sales promotional methods with respect to Bigbazaar , Banglore. For the purpose of carrying out the evaluation literature review, research methodology, presentation, assimilation has been done in this study. The literature review part has helped the researcher to gain through knowledge and to establish a strong foundation and back ground for the subject. The researcher has also analysed various research methodology and selected the most appropriate one suitable to study was selected to collect the primary data. And the suitability and acceptability of various sales promotion programs and related factors were analysed in detail. Questionnaires were used to collect the first hand information from the consumers. And in conclusion the researcher has explained the benefits of sales promotion and its effects on sales when introduced and operated wisely.

CHAPTER-1
INTRODUCTION In saying, marketing involves the conception, pricing, promotion and distribution of ideas, goods and services. The fundamental objective of marketing is to exchanges of goods and services (Frances Brassington and Stephen Pettitt, 2005) By designing products setting sensible, acceptable and justifiable prices, creating awareness and preferences, and ensuring availability and service, the marketer can influence the volume of exchange therefore marketing can be considered as a demand management activity on the part of the selling company. Promotion is an important component of marketing mix which has got a very significant impact on the demand managing activity of marketing. The key components of promotion includes personal selling, direct marketing, advertising, sales promotion, and public relations. Sales promotion is a range of marketing techniques designed with in a strategic marketing frame work to add extra value to a particular product or services, developing a promotion strategy involve deciding on the objectives of marketing communication. Promotion objectives are so vital that these objectives are the key in determining the role of each components of the promotion mix in the marketing objectives of the organisation. The role of promotion mix components depends on the type of organization, nature of products, etc. Promotion is a part of integrated marketing communication which recognizes the advantages of having a complete plan to find better ways of understanding and connecting with consumers. Organizations are forced to test various strategies to find a better one suitable for them in increasing their sales and market share. Sales promotion is one of the important promotion strategies followed by the retailers. Sales promotion refers to communication strategies designed to act as a direct inducement, an added value, or incentive for the

product to customers. In retail industry sales promotion efforts are designed in such a way that it always assists all other promotional activities undertaken by a retail store. Sales promotion always tends to encompass all the external factors such as advertising, publicity and direct marketing although these might be used to deliver sales promotions. Since the sales promotion is all about communicating we could see in this study that how an effective sales promotion strategy executed or implemented sales. The Pantaloon Retail India Ltd. (Big Bazar) leave no stone unturned to woo the consumer in various festive seasons. The Drivers of various festive Bonanza re of two types one is to cash in on increased festive season spending and the other one is more of a bottom-line driven, with loss making stores looking to wipe out losses. Retails stores utilises the festive seasons to liquidate all stocks and inventories to avoid loss on account of excess inventory and low turn over. The promotion programmes relate to consumer purchase decision and what the strategies adopted by the retail group. Most observers feel that dealing activity do not build long term consumer loyalty. The different services offered by the retail chains or hypermarkets may be perceived positively by certain set of consumers due to the opportunity it provides them to look at the products leisure. Retailers often develop and design the retail marketing mix to ensure patronizing the retail store or format by the target segment or to attract new customers. The attractive sales promotion offers may or may not be effective concerning the customers. The study based on the sales promotion of Big Bazar and its impact to the consumers is relocated in this research. through a better communication results in positive perception in consumers there by resulting increased

RESEARCH PROBLEM

Big Bazar, being a unit which stays in a highly competitive marketing environment, often tests and introduces various promotional schemes on a regular basis. The organization pays better attention to know how appreciable such schemes, clarify draw backs, and spot out the better schemes which may be developed and introduced in the future promotional activities. Due the dynamic marketing and market trends organization like Big Bazaar should be prepared enough to meet the dynamic trend. Hence developing and designing schemes with innovative concepts which are better results oriented than the previous one are highly significant. In this study the researcher is trying to assimilate and explain how effective are the sales promotional activities and how much it can influence the consumer while making the buying decision.

SCOPE AND SIGNIFICANCE OF THE STUDY The scope of this particular research is based on the evaluation of the sales promotional activities operated in a single BigBazar Retail unit which is limited to the area of Koramangala. Banglore. The study helps to understand the effects of sales promotion in the consumers perception and how much the sales promotion activities can influence the customer in their buying decision. It helps us in gaining independent knowledge about consumer perception toward sales promotion It helps in evaluating the effects of sales promotional activities. It can provide prospective information to potential customers.

OBJECTIVE OF THE STUDY Primary Objective The main purpose of this research is to gain the effects of promotional programme on consumers perception with special reference to the promotional programmes of BIG BAZAR. And to assimilate how it affects on consumers buying decision. This research also helps to understand how successfully they could carry out certain schemes and how far it could gain the consumers attention. Secondary Objective Following are some of the secondary objectives for which the research is carried out. To study about consumers attitude towards sales promotion of BIG BAZAR To evaluate the effectiveness of sales promotion schemes. To study about the suitability of offers in each departments To find the customer loyalty to the sales promotion programmes of BIG BAZAR. To find out the best communication channel for promotion. To find out the effects of sales promotion on consumer perception To find out the awareness level of the consumers with concern to various sales promotions of BIG BAZAR. To find out the effects of sales promotion on buying decision.

This above chapter explains the primary and secondary objectives of the study .These study provides a vital solution to number issues that are prevailing in the area of sales promotion also also provides some solutions to the promotional activities of Big Bazar. At the end of this research one could be able to frame a better sales promotion scheme that deliver better results by taking in to consideration all the elements of marketing mix

10

and how it can be perception.

implemented in such a way that

to gain optimum consumer

Chapter-2
RESEARCH METHODS Introduction This chapter explains various methods that are used to collect informations. It is so significant that improper research methodology might results in inefficient and unreliable results. Hence it is highly significant that planned structured and systematic approach is so vital. Therefore the over all approaches and strategies are explained in the beginning with rationale where appropriate. The primary and secondary usage, various datas that are used for the study are presented such as qualitative and quantitative information.

Research is a key to both business and academic activities and it is carried out in all sorts of fields to find out better solutions and scope. People undertake research in order to find things in a systematic way, there by increasing the knowledge (Jancowicz, 1995). Research is considered as systematic because the research is always based on logical relation ships and not just beliefs.(Ghauri,1995). As a part of this your research will involve an explanation of the methods used to collect the data, will argue why the results obtained are meaning full and will explain any limitations that are associated with them. Finding out, suggests a multiplicity of possible purposes for your research. These may include describing, explaining, understanding, criticising and analysing (Hhauri,1995) Definition Research is defined as a process of enquiry and investigation (Jill Collis and Roger Hussey, business research,2nd ed,2003,pp1) Purpose of research

11

Carrying out research allows you to apply theory to and or analyse a real problem or to explore and analyse more general issues. It also enables you to apply research procedures in order to illuminate the problem or to generate solutions. The purpose of research is as follows. 1. To review and synthesise existing knowledge 2. to investigate some existing situation or problem 3. to provide solution to a problem 4. to explore and analyse more general issues 5. to construct or create a new procedure or system 6. to explain a new phenomenon 7. to generate new knowledge Source (Jill Collis & Roger Hussey,2003) Research design Saunders , Lewis, and Thornhill (2003) suggest that the researchers can design their methodologies by identifying layer by Layers of the research process Onion.

Saunders , Lewis, and Thornhill (2003) source (http://www.thesisexpress.com/images/fig3.jpg)

12

The process Onion consists of five layers such as research philosophy, research approaches, research strategies, and time horizons and data collection methods. Research philosophy:- In the process onion the first layer is research philosophy . Saunders , Lewis, and Thornhill (2003) defined that there are three types of research philosophy like positivism, interpretivism, and realism. The philosophy chosen by the researcher will rule what role the researcher takes while he/she observes or analyses matter of the research. The perspective of the researcher will affect what research strategy and method should be used in the research. (Saunders , Lewis, and Thornhill (2003). According to Bryman and bell (2007) Positivisam is a study of knowledge that valid and value knowledge that is value free. Interpretivism philosophy is that which believes every situation is complex and unique.Jankowicz(2005). And realism philosophy believes that there is a reality (exists for a condition or phenomena) that is separate from our description of it Ryman and Bell (2007). In this research the researcher is going to use interpretivism philosophy. The researcher has selected this philosophy mainly because of the complexity of certain issues and the difficulty involved in explaining such matters such as dynamic marketing and sales promotional trends and the current factors influencing the consumer behaviour. The research approch. Here it explains various theories that are used in connection with drawing conclusions and this process are further divided in to two types that are deductive approach and Inductive approach.(Saunders , Lewis, and Thornhill 2003) In deductive approach literature is used to set theories or hypotheses and that are tested with empirical observation, conclusions are drawn through logical reasoning deduced from hypothesis set (Colllis and Hussey,2003) on the other hand inductive research approach theories are developed from general conclusions of empirical observation. (ibid).

13

As per deductive approach, the conclusions drawn might not be true in the real situation to eliminate invalid findings it is important to put emphasis on the development of hypothesis and how to design appropriate research strategy to test that hypothesis. (Saunders , Lewis, and Thornhill ,2003). Both these approaches are the part of research process. Here the researcher is making use of Inductive approach because this study deals with behaviour and perception these two facts are highly dynamic in nature hence more flexible structure can adopt changes as the research progresses. In this study the main objective of the researcher is to investigate consumers and

perception towards the sales promotional activities of Bigbazaar from a normal market. The research strategy The research strategy is the general plan of the researcher about how he/she is going to answer the research question Yin (2003).According to (Saunders , Lewis, and Thornhill , 2003). There are various types of research strategies available. Types of research. The research can be classified in to various types on the basis of its purpose. If we are classifying research on the basis of its purpose, we can describe as being descriptive, analytical or predictive. Following are the various types of research. (Jill Collis & Roger Hussey,1997) 1. Exploratory research:- This is conducted in to research problem were there are very few or no earlier studies, the main aim of this type of research is to look for patterns or hypotheses rather than testing or confirming a hypotheses. 2. Descriptive research:- here it describes the phenomenon as they exist. It is used to identify and obtain information on the characteristics of a particular problem or issue. The data collected is often quantitative and statistical tools are used to summarise the information. 3. Analytical or explanatory research:happening. Here the researcher goes further more from the descriptive research to analysing and explaining why or how it is

14

4. Predictive research:- Here the researcher goes even further more than explanatory research. The latter establishes the explanation for what is happening in particular situation. It aims to generalise from the analysis by predicting certain phenomena on the basis of hypothesised, general relation ships. These are the major type of researches. In order to conduct the current research the researcher is making use of exploratory approach because it is valuable means of finding our what is happening, to see the new insights, to ask questions and to analyse phenomena in a new light (Saunders , Lewis, and Thornhill ,2003). It also helps the researcher to clarify and understand the research problem.

Survay strategy This is most common method used for data collection. By filling a questionnaires or structured interview using two or more variables will be processed to conclude a certain pattern of association (Bryman & Bell,2007). In this research the qualitative information is collected by using questionnaire. Secondary research. In this research the secondary data include both qualitative and quantitative data. (Saunders , Lewis, and Thornhill ,2003). The secondary data was collected and analysed and presented in the literature review chapter to develop an understating of the surrounding concepts and theories of consumer behaviour, sales promotion and perception with regard to Bigbazaar . Importance of secondary data. The secondary data is collected through a process of secondary research. This data has got a very important role in answering the research questions and achieving the primary objective of the research. There are several other advantages with this data it can be collected with out spending much money and expenses, and it saves valuable time, The secondary data received through secondary research helps to make comparsions of the 15

current research with past, similar and complementary research. Saunders,Lewis & Thornhill(2003).

Conducting secondary research. The proposed secondary data has to be in relation with the consumer behaviour, perception and sales promotion in Indian retail market. In order make this data available for the research analysis the researcher has followed journals, from Emerald, Mintel and other magazines and publications. By going through these reports the researcher has learned enough about the issues prevailing in the current retail market, sales promotion and consumer perception.The researcher also has gained assistance and guidance from the supervisor and the availability of various infrastructural facilities provided by the Leeds Metro Politen Univercity, the researcher could read sufficient books, Journals, Magazines, Articles related to the particular topic. This has helped the researcher tremendously in developing the theoretical knowledge. Various theories are applied to the topic as selected by the researcher. Saunders,Lewis & Thornhill(2003) Limitations of secondary research. The secondary research alone cannot afford to full fill the entire objectives of the research. And this limitation of the secondary data actually affects the research finding and analysis, most of the key data requires monetary cost. Secondary data is not completely reliable and it contains some bias. Saunders,Lewis & Thornhill(2003)

primary data Primary data are the new data collected specifically for a particular research purpose. Saunders,Lewis & Thornhill(2003) .These are the most up to date and first hand information to the main objectives of the research. The primary data are collected through in-depth interviews and questionnaires. 16

In depth Interviews:- In-depth interviews are informal unstructured and non standardized. Here the interviewee is given the opportunity to talk freely about events, behaviour and beliefs in relation to the topic area Saunders, Lewis & Thornhill(2003). It is use full to find out what is happening and to seek new insights. Here the researcher has not used this tool to collect any information. Questionaire:- In this study the researcher has used the questionnaire in terms of interviewer administered and the sampling method used here is convenient sampling. This method is selected based on the ease of access in the process of data collection Reasons for using this method. 1. The respondents were the customers of big bazaar most of them were busy with shopping and other activities in the huge Salarpuria Tower where the Koramangala, Banglore Bigbazaar located. 2. Since the respondents are seen very busy and this method ensure better participation. Purpose The main purpose of questionnaire was to collect quantitative data about the sales promotional activities of big bazaar.

Sample size For this study the researcher has used a sample size 100, completed questionnaires were used to study including both male and female respondents. Convenient sampling. Here the researcher has used convenient sampling. Here the samples are selected randomly. And the sample selection process is continued until you reach the required sample size. The samples represent the total population the easiest way to obtain the sample by interviewing persons randomly based on the researchers convenience. Saunders , Lewis, and Thornhill ,(2003). 17

Following are some of the reasons for selecting the convenient sampling for this research. 1. Convenient sampling is considered to be the easiest way to collect data. 2. The collected samples represents the whole population 3. It is less time consuming. Questionnaire Design Here the researcher has used fourteen different categories of questions to collect the both attribute and behaviour data. Piloting The researcher had conducted a pilot test to make sure the content validity, before making the final questionnaire. Here the researcher has asked the supervisor to comment on the suitability of the questions and the structure of the questions. Saunders , Lewis, and Thornhill ,(2003). As per the suggestions and recommendations of the supervisor certain changes were made in the questionnaire. Time horizons Here it explains about the time limit to finish the research. This can be divided in to two types on the basis of the time stipulation which are cross-sectional longitudinal. The first one deals with quantitative and qualitative collection of data and analysis in a given time and the second one investigates the changes over a period of time Saunders , Lewis, and Thornhill ,(2003) And in this research the researcher has followed cross sectional time horizons to complete the work at a specific point of time. Sampling method: This is the process of choosing the different samples for the purposes of conducting the research, there two main types of sampling methods available.

18

Probability sampling:- This is basically a survey based research, here the researcher needs to collect a sample from a population to answer the research question as how the consumers choos their products or brands with respect to advertisement and sales promotional activity. And collecting data through questionnaire probability sampling can draw direct conclusions. Jankowicz(2005) Non-Probability sampling:- Here the researcher is interested in individual positions, roles and back ground experiences and it involves identifying and questioning respondents. Here in this research the researcher uses the convenient sampling it simply means selecting samples randomly. And the sample selection process is continued until the required sample size is achieved. The easiest way to attain the sample size is by interviewing persons randomly based on the researchers convenience. Saunders , Lewis, and Thornhill ,(2003) Data collection method Her the researcher collects all the required data through various methods and the collected data can be classified in to types called primary and secondary data. Primary data is the new first hand data collected by the researcher and this data can be collected from observation, questionnaires and by interviews and secondary data are those data which are already in existence it can be found from any sources. Saunders , Lewis, and Thornhill ,(2003) Observation:- this is a way collecting data by observing and nothing or recording the research objects behaviour Saunders , Lewis, and Thornhill ,2003. Questionnaire:- is the other method used to collect data by requesting the respondents to fill the questions in predetermined manner Saunders , Lewis, and Thornhill ,2003. Interview:- This method can be described as the purposeful discussion between two or more people Saunders , Lewis, and Thornhill ,(2003). There are mainly three types of interviews such as structured, semi-structured, unstructured interviews. In structured 19

format interview is conducted on the basis of predetermined questions. Here the interviewer will use questions on the basis of situation. The last one is conducted informally and loosely with multiple objectives and with our predetermined questions. Mark Saunders, Philip Lewis, Adrian Thornhill (2000) Here in this research the researcher uses the structured interview format to collect the data based on the response from the local consumers of Bigbazaar. The secondary data is collected from various sources to know about various sales promotional activities prevailing in the retail industry in India and the end customer response to such activities. Data analysis The collected data through questionnaires were analysed and interpreted. The researcher has made use of all available tools like computer to make the research more effective and accurate and also to reduce the time factor. In this research the collected data are presented and explained by using various bar charts and other diagrams to make the data more simple understandable. (Bell, 1999) while explaining the collected data the research questions were at high priority consideration and the important informations were noted and interpreted and the researcher tried his best to avoid bias. Ethical issues Through out this research the researcher has kept in his mind all the ethical issues. Since it does not have any volatile issues the researcher has taken advice and permission from his supervisor before started collecting the data. And as per the supervisors advice, in this study only information is collected for the purpose of data analysis which does not mention the name of the respondents. limitations. This particular academic research is to be done in three months time, because of this time constraints limited resources were investigated. And the limited knowledge of the researcher in the field of presenting and analysing data also affects the over all outcome.

20

Other limitations. results. This study contain all the limitations of convenience sampling There exists probability of bias with regards to collection of data. Duration of the study was very less Majority of the respondents have less knowledge about the past offers. Since the study was conducted in a limited area there are chances of incorrect

Conclusion This chapter has clearly explained and covered all the aspects of effective methodology. In this research in order to answer the research question the researcher has made use of primary data which was collected through questionnaires, and secondary research is conducted through various other literatures of the past. The researcher with various limitations tries his best to answer the research question wisely and meaningfully.

21

CHAPTER-3
LITERATURE REVIEW Introduction This chapter explains certain literature facts and theories about Consumer behaviour, the characteristics of consumer behaviour. Why understanding consumer behaviour is so significant that it gives the marketer an insight into the consumers purchasing decisions, what they buy, why they buy, how they buy. It also helps to find out how individuals act in certain consumption related ways; the eternal and external factors impel them to make certain decisions. Robert east(1997) CONSUMER BEHAVIOUR Consumer behaviour covers a tremendously wide range of topics from the consumers first internal recognition of a need through the external influences of people, information, products, to the ultimate decision of purchase. Martin Evans, Ahmad Jamal & Gordon Foxall (2006) Definition,

Consumer behaviour is the study of the process by which consumers make decisions. More specifically, it is concerned with how consumers acquire, organize, and use information to make consumption choices. (Consumer behaviour an information processing perspective, Brian Sternthal,C.Samuel Craig,1982,pp-6)

22

Consumer behaviour is the activities people undertake when obtaining, consuming and disposing of products and services (Blackwell, Miniard and Engel,2001,p-6) Fundamentals of Consumer behaviour Consumer behaviour is a process of problem solving and Decision making and the result is often determined by the buyers goal directed processing of information. The cognitive consumer is credited with the ability to handle huge number of informations, engage actively in the comparative evaluation of alternative products and brands and to select rationally among them . Foxall (1992a).

It is generally accepted by marketing and consumer researchers that individuals consume products and brands for their symbolic properties as much as for functional benefits (Levy;1959;Elliott,1999). Individuals use products and brands as materials with which to cultivate and preserve identities. Consumer goods are capable of serving consumers in this way because of the symbolic meaning that is embedded in them (Belk,1988;Solomon, 1983;Leigh and Gabel,1992) Factors Influencing Consumer Behaviour There are both internal and external factors that affect the ways in which consumers act. The internal factors are interest, attitude, opinion, outlook etc. The external factors are society, culture peer, family (wells,1975). Individuals use certain goods and practices in a number of ways firstly they use the goods as materials with which to create foster and develop their identity (Elliot and Wattanasuwan, 1998). Here the symbolic meaning of goods is used as an outward expression of their self concept and connection to society. Certain recent research found that consumers develop a sense of who they are over time, through a long, continues process of self examination and observation. The study of consumer behaviour includes a broad range of topics and activities, it is concerned with understanding of individuals purchase and consumption activities and

23

how individual consumers are acquiring information and the way they process the information into a purchasing decision. Solomon and Stuart (2000) explains the consumer buying behaviour as the process individuals or groups go through to select, purchase, or use goods, services, ideas, or experience to satisfy their needs and desires also emphasised by Kotler and Amstrong (2000). The consumer decision making process can be explained in the following diagram. These are some of the highly significant factors that affects and influence the consumer in making a buying decision.

source:( http://iml.jou.ufl.edu/projects/Spring01/Ko/5process.gif)

Here the researcher trying to explain in detail the motivational factors on perception of a brand, package or a promotional activity makes the consumer aware of the availability of a product. Consumers buying decision is often motivated by something more than awareness, Belk (2003) it depend mainly on his needs and drives. Consumer motivation is the driving force which makes the buying decision. Motivation Motivation can be considered as one of the basic concept of human behaviour. It is the driving force that forces individuals that make them to do a particular action.

24

Definition Motivation can be described as the driving force with in the individuals that moves them to take a particular action (MARTIN EVANS ,AHMAD JAMAL AND GORDON FOXALL;2006,pp,4) Motivation always supported and influenced by the basic factor that is Human need, Human need is considered as the fundamental element that determines the purchase decision. Abraham Maslow(1943) . Human need It is widely accepted that the consumer behaviour and purchasing decision is based upon the needs of individuals, groups and organizations. If marketing is all about satisfying needs it is so vital to understand the relevance of human needs. Maslow (1943) has set up a hierarchy of human needs as follows.

(Abraham Maslow,1943) (Source,http://www.learningandteaching.info/learning/graphics/maslow.gif) 25

When we look at Abraham Maslows hierarchy of needs the hierarchy is triangular in shape this is because as people move towards the upper side only very few people satisfy the higher levels of needs. Physiological needs:- food, air, water and all the basic necessities that are required for survival purposes are need to be satisfied first. Security needs:- At this level of safety and security one gives importance to have a place to live and protect him self from all possible threats. Social needs:- At this level of social needs one gives importance to satisfy the social and belongingness needs like join social groups, marry ,friends etc. Esteem needs:- Very few people satisfy the top two levels called esteem and selfactualisation needs. The esteem need can be defined as things that you achieve which make you recognised and gives a personnel satisfaction. And the self actualisation need is actually satisfied by very few people. Here a person is one among a small number to do some thing exceptional.

Factors influencing the buying decision There are several factors that affect the consumer behaviour in their buying decisions. A mix of cultural, social, psychological and personal factors is the main factors that influence the consumer. Following diagram shows several factors and the process by which it influences the consumer in making their buying decision.

26

(http://jcmc.indiana.edu/vol9/issue2/giaglisfigure1.gif)

In this study researcher is

going to concentrate and explain how the Marketing

activity,Promotion(the researcher also uses the marketing activity of Bigbazaar as a case to explain) the external factor influences the internal factor (Perception) in the process of making a buying decision by a consumer. Role of marketing activities and functions in consumer behaviour Introduction This chapter explains about various marketing activities that are very commonly operated by various firms in the field of marketing.In this research the researcher is trying to prove how strongly are these factors linked with each of the other factors like communication, promotion, perception. Marketing management includes a number of highly significant and sensitive functions and activities which determines the fate of the organization. These functions are always been used in the form of a process and are inter-related and linked with each other (Philip Kotler). The functions and activities of marketing are incorporated to the new and dynamic organisational structures and methods of achieving objectives. In the customer led organisation, marketing acts as a pivot to integrate the activities of other departments. (Susan Norgan,1994)

27

Definition:Marketing is the management process responsible for identifying anticipation and satisfying customer requirements profitably (CIM) The Cyprus Institute of Marketing (UK). Following are the major functions and activities of marketing management. But for our research we are taking into consideration the promotion function of marketing only.

Sourec:http://schools.nashua.edu/myclas s/mcquestenl/Seven%20Functions/functions-of-marketing.jpg Role of marketing activities in retail industry Gaining consumer attention is the main factor that determines at the point of purchase. Hence the main objective of marketing in retail industry is optimum utilisation of available resources to attract and increase the sales and in-store footfalls. Marketing activities are so significant and an important determinant of purchase behaviour. An important, part of purchase decisions is still being made at the point-of-sale (Inman and Winer, 1999). Therefore effective and impressive marketing activity in the form of sales promotion can play a major role in attracting and attaining the positive perception of consumers.

28

Manufactures along with retailers are still very keen in undertaking short term sales promotional activities, more than 75% of their marketing communication budget is allocated to these short term activities (Tenser,1996).

PROMOTION AND PERCEPTION In this research researcher is going to explain in detail on one marketing activity which is Promotion (sales) (the external factor influencing the buying decision) and how does it influence the internal factor Perception while making a buying decision. It is widely accepted that the Consumer behaviour and buying decision is always preceded by a decision process. Various researchers have also proved that it is highly influential. Consumer perception of price, quality, and value of the products are found to be the basic determinants of buying behaviour (Bishop 1984; Doyle 1984; Jacoby and Olson 1985; Sawyer and Dickson 1984; Schlechter 1984). Effective use of sales promotional tools can influence the consumers buying behaviour in favour of a particular brand or product. For example when using price as a tool for promotion the perceived price is the actual price that a consumer places on a product that which the retailer offers, and through effective sales promotion tools one can offer some thing more which the consumer think that it is worth enough, but which cost a little and there by driving the consumer into buying. PRICE is one the indicators used by the consumers to asses the quality of a particular product (Gabor,1977;1988). Stoetzel (1954) suggested that consumers always have an acceptable price range with upper and lower limits. When the price is beyond the upper limit the product is seen as too expensive and when its too low the buyer may suspects the quality of the good and avoids it.

PROMOTION

29

Introduction Promotion is an important component of the marketing mix, the other components being price, product, and place. The key components of promotion include personal selling, direct marketing, advertising, sales promotion, and public relations. Developing a promotion strategy involves deciding on the objectives of marketing communication, deciding the role of each of the components of the promotion mix, budgeting, and strategy development for the promotion mix components. (John C. Totten, Martin P. Block,1994) Promotion objectives determine the role of each of the components of the promotion mix in the marketing objectives of the organization. The role of the promotion mix components depends on the type of organization, nature of products, and so on. Budgeting for promotion makes use of various approaches like the top-down approach (percentage of sales, affordable method, arbitrary allocation, and competitive parity) and bottom-up approach (pay out planning, objective task method, and mathematical models). Integrated Marketing Communication is a concept which recognizes the advantages of having a complete plan to find better ways of understanding and connecting with consumers Sales promotion is one of the important promotion strategies followed by retailers. Sales promotion refers to communication strategies designed to act as a direct inducement, an added value, or incentive for the product to customers. Sales promotion efforts are designed to assist the other promotional activities undertaken by a store. (Peter Mc Goldrick,2002).It tends to encompass every thing that falls outside advertising, publicity, and direct marketing, although these might be used to deliver sales promotions. Modern marketers have recognised that effective sales promotion tools only can move the products off store and shelves. The market environment provides the Companies with many opportunities to play on consumers senses to further generate and maintain the customer-brand relationships (Fulberg,2003;Jackson and Fulberg ,2003). Modern companies use sales promotion tools at each and every level example Consumers, Distributors, Wholesalers, Retailers,

Sales Promotion

30

Definition Sales Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion to all goods and services or promote an idea. (Advertising and promotion;4th edition;pp13;george E .Belch,Michael A.Belch) Sales promotion can be defined as diverse collection of incentive tools, mostly, short term designed to stimulate quicker and /or greater purchase of particular product or service by consumers (Kotler, 1998). Sales promotion is an action-focused marketing event whose purpose is to have direct impact on the behaviour of firms consumers (Kotler,1998; Webster,1981; Davis,1981) The term sales promotion refers to many kinds of selling incentives and techniques intended to produce immediate or short- term sales effects (John C. Totten, Martin P. Block,Anlysing sales promotion,1994,2nd Ed,pp) Objectives of sales promotion The following are the most widely accepted objectives of sales promotion these objectives are often used to justify the use of sales promotion. 1. Obtaining product trial:- Making consumer try a particular product or services is so significant to marketing strategies, it can be an introduction of new product or reaching new customers . 2. Encouraging repeat usage:-Once a customer tried the product it is necessary to retain the customer to buy the product again and again hence it is necessary to give additional incentives to keep the competitors from winning the consumers back after the successful trial. Importance of sales promotion The global market today is highly competitive, in order to sustain in this tough atmosphere companies are making use of all possible efforts to increase the sales. Certain incentive is being offered to customers to generate sale of a particular product lets see the merits and demerits of sales promotion from the producers and consumers and point of view. 31

Manufacturers point of view. 1. It helps to increase sales and profits in the competitive market 2. It helps to introduce new products and to get the attention of potential buyers. 3. It enables quick disposal of existing stocks. 4. It helps in maintaining the sales of seasonal products 5. To challenge competition. Consumers point of view 1. goods are available for cheaper rate 2. economical benefits to buyers 3. creates awareness about new brands 4. stabilises the sales volume 5. raise the standard of living (http://www.nos.org/Secbuscour/24.pdf) The above are some of the importances of sales promotion form the manufactures and consumers point of view. Disadvantages of sales promotion. Following are some the disadvantages of sales promotion 1. Sales promotion is effective only for short term purposes. 2. Hidden costs. 3. Adverse effects on the brand loyalty of the products when offered huge price discounts. 4. Some of the sales promotion strategies are highly expensive to implement 5. Difficulty in managing and monitoring Source (Kenneth e.Clowe &Donald Baak,2004)

32

Sales promotion in retail industry. Introduction This chapter deals with the sales promotion in the retail industry. Promotion programmes related to consumer purchase decision and what the strategies adopted by the retail chains. Most observers feel that dealing activities do not build long term consumer loyalty. The indifference service offered by the retail chains or hyper market may be perceived positively by a certain set of consumers due to the opportunity it provides them to look at the products at leisure. Retailers design the retail marketing mix to ensure patronizing the retail store or format by the target segment or to attract new customers. (Mc Goldrick,2002) It is found that the top 25 retailers accounted for over half of all UK advertising (Mintel,1999)The attractive sales promotion offers may or may not be effective concerning the customers The main objective of retail sales promotion is to pull the crowd and to increase the number of foot falls in to a particular store. (Mc Goldrick,2002) Therefore the retail advertising tends to emphasise some significant motives such as the price, the hours of operation, the store atmosphere, Various value added services, the retailers are very much concerned about building the store traffic so their promotional activities are of direct and immediate action such as advertisement published to produce immediate store traffic and sales. (Kotler,1998; Blattberg and Neslin1998) In India the use of sales promotional tools has been increasing significantly over the years. The sales promotional activities has got a very high impact on the behaviour of consumers towards the price perceptions, choice of brand, brand equity, brand 33

perception, brand switching behaviour so on. The main objective of consumer promotion is to draw out a direct impact on the purchase behaviour of the firms customers. (Kotler,1998; Blattberg and Neslin1998) Sales promotions normally give positive sales results for short term period. (Priya 2004) Where as price promotions consistently reported to have high sales effects and high price elasticity for brands in the promotion campaign(Blattberg, Briesch and Fox, 1995). Various studies proved that price promotion often facilitates brand substitution with the product category (Dodson et al,1978).Price promotion often affects cumulative sales (Gupta,1998), and also affects stock piling and purchase acceleration (Blattberg, Eppen and Lieberman, 1981, Nelson Henderson, and Quelch, 1985). Various studies proved that among the various elements of marketing mix sales promotional activities have long term influence on the brand equity (Yoo et al, 200). (Martineau (1958) quoted that the success or failure of nstores could often be attributed to under tested and underemphasized elements of their brand image (retail marketing,Perter Mc Goldrick,2002pp-181). The above chapter explains various facts regarding the sales promotional activities in the retail industry. It is found that almost all the retailers are doing some sorts of sales promotion at any level. And most of the retail sales promotions are supported by the manufacturer. The important features of retail sales promotion is that the success is depended totally on the co-operation of both manufacturer and the retailer.

34

PERCEPTION Introduction Consumer perception has been found to be significant determinants of consumer behaviour. The purchasing decision is always been influenced by the perceived image of the product or service as determined by he consumers present state of mind. The advertisers manipulation about various attributes of the product always ensures better attention paid by the consumer. Importance of consumer perception Perception is considered as one of the important psychological factors which influence the consumer behaviour. In simple words perception can be described as how we see things around us. Every individual every now and then are receiving messages and information through our five sensing organs these different informations and messages are called stimuli. .(Terrell G Williams,1982) Perception varies from individual to individual each individual selects, recognise, organise, interprets these stimuli in his own way based on his values and expectations so the perception varies from person to person. (Terrell G Williams,1982) Hence perception is highly significant factor in consumer behaviour and buying decisions. In order to get better response to a product or service it is so vital to find a combination of particular stimulus which generates the most favourable perception in the maximum amount of customers. (Henry Assael,1995), In marketing perception is concerned with understanding how the consumer views a product or services.(Kenneth E.Clow & Donald Baack,2004) The five sensors of a person 35

help him in this process. The marketer uses various tools to encourage the consumer, which is through the use of colours sound and touch, taste or smell to absorb the product. ICMR (international centre for management resources) http;// www.icmrindia.org/

Definition According to John C.Mowen, Michael S.Minor Perception is the process through which individuals are exposed to information, attend to the information, and comprehend the information Perception is a process where by an individual receives stimuli, selects, organizes and interprets the message Stages of perception Exposure stage: through their senses. Attention stage: Here consumers allocate the processing capacity to a stimulus. Comprehension stage: here the consumers organize and interpret the information to obtain meaning from it. All marketing and sales promotional activities may not do so in the way the marketers would like them to do but this facts reinforces the value of exploring the psychology of perception. This is the base at which the shared ways of interpretation can be encouraged. Source: (Terrel G Williams , Consumer behaviour,1982) Importance of understanding perception here initially the consumers receive the information (Harrell, 1986).

36

Consumer perception of price, quality and value are always considered the basic determinants of shopping behaviour and product choice (Bishop 1984;Doyle 1984;Jacoby and Olson 1985;Sawyer and Dickson 1984;Schlechter 1984) Olson (1978) pointed out that the consumers may use informational cues to develop beliefs about products and that task response. Hence understanding consumer behaviour is highly significant in planning the marketing strategies of an organisation marketing strategies should always influence the consumer and should be always influenced by them. Twenty first century it is the consumers who hold the power and it is the buyers market rather than sellers (Shaw New holme and Dickson,2006). Consumer behaviour is actually to analyse how a person interacts with marketing mix of a particular product or services. According to Cohen (1991), the marketing mix inputs and the four Ps price, place, promotion and product are designed and aimed at the consumer. The individual consumer considers each product in terms of their learned culture, attitude, previous learning and individual perception. Then the consumer decides whether to go for a particular product and when and where to purchase the brand and other choices. Krugman (1965) has come with the concept of involvement according to him when people had low involvement in a product, advertising could still affect their behaviour by strengthening the recognition and brand recall stimuli. Engel, Blackwell and Miniard (1995) also found that involvement as one of the a very strong influence in the cognitive activity. Impulse Buying is another attitude where by consumers experience a sudden but powerful and persistent urge to buy a product offering immediately, with diminished regard to the consequences of buying the offering (Rook,1987) and it is considered to be an unplanned decision which may happen in less than a second and is a very common feature in market place. According to Rook Impulse buying is relatively extra ordinary and exiting, emotional rather than rational and is likely to be perceived as bad rather than good. The demographys of the consumers are so vital for the marketers. By this consumers can be aimed sharply by using variables such as age, gender and Y occupation (social grade) because consumer behaviour differs with demographic variables. Adults define themselves by their job where as youths define themselves by their consumption patterns. Brands and products are therefore of a critical importance to teenagers (Gillespie,2003). 37

Information processing style of male female work differently. (Kitchen and SpicekettJones (2003) Males tend to be selective processors of information and use heuristic cues where as females tend to be comprehensive processors of information paying attention to the entire information (Darley and Smith,1995;Meyers-Levy and Maheswaran,1991).

PROMOTION AND PERCEPTION THE CORE ELEMENT OF MARKETING Introduction

Promotion and Perception are deeply linked together by an important element of marketing mix called communication. Perception is always an after effect of promotional communication. (Foxall,1980) The effects of sales promotion can be evaluated by observing the Consumers response or perception towards the marketing activity. Consumers response to marketing activity is a stage wise process like Exposure, attention, perception; learning, attitude, action and post purchase these sequences cannot be necessarily followed by all consumers in all situations, it varies depending on the situations. AIDA (attention-interest-desire-action) this is another sequential model ( Tosdal,1925:St Elmo Lewis, Circa 1900). Hierarchy of effects model. This model includes the following stages: awareness, knowledge, liking, preference, conviction, and purchase, there are also stages starts from awareness to adoption (Robertson,1971). It is widely accepted fact that consumers exposure to marketing activity is selective, when an advertising message comes in to contact with consumers senses we say that consumer is being exposed to the message, and this message has the chance of being noticed by the consumer. We do notice much more than we consciously remember and 38

it has got a very significant influence on our behaviour at the point of sale (Chandon,Hutchinson and Young,2001) consumers normally do not buy what they do not see therefore product display layouts, image, product design are so vital in contributing to success or failure of a product. After being exposed to the message and after paying attention to it, consumer makes sense of the message and this stage is called perception, here the consumer recognizes, selects, organizes and interprets the message (Harrel, 1986). Better consumer attention is gained by ensuring the following aspects of promotion. 1. Proper product placement in the shelves 2. Effective utilisation of entry points and hotspots of the shelves 3. Area covered in the shelves 4. Selection of neighbouring product categories 5. Colour combination, size and shape of packing 6. Promotions 7. Prize displays and other promotions Following are some of the commonly used marketing actions to gain better attention of consumers. 1. 2. 3. 4. 5. Branding packaging point of sale materials in-store displays Websites, sales promotional offers.

All the above aspects of sales promotion is resulted in gaining better perception and there by increasing the sales as the over all out come of sales promotion. Hence it is highly significant that the sales promotion can push the sales up tremendously. Various factors influencing Promotion and perception Communication is the Basic tools used to gain consumer attention through promotions .The organisations main communication objectives are commonly known as 39

Promotional Mix. An ideal promotional strategy consists of Advertising, sales promotion, personal selling, public relations in order to communicate with their present and potential consumers (Kotler, 1994). Promotion also can be defined in the following manner. Promotion is the communication methods used to achieve a firms promotional objectives From promotion point of view communication can be classified in to two 1. Non controllable communication 2. Controllable communication

The importance of communication can be seen in detail when we analyse the promotion mix. The main objective of promotion tool is to move the demand curve upward and to the right by utilising some or all of the element of promotion mix (Ward and Hill, 1991) Following are the elements of promotion mix. from the following diagram we could see the all the elements of promotion mix are situated around the main core aspect which is communication. Elements of Promotion Mix

40

http://www.davedolak.com/graphix/promix.gif Advertising:Advertising is defined as any paid form of non personal communication about an organisation, product, service or idea by an identified sponsor (Advertising and promotion; 4th edition;pp14;george E .Belch,Michael A.Belch) The main means of advertising are TV, Radio, magazines, and news papers. This is a very significant promotional tool used by various companies to reach the mass consumer markets. Direct marketing:- is a tool by which companies communicate directly to their target consumers Eg; using direct sales force. Sales promotion:-Which is generally defined and those marketing activities that provide additional value or incentive to the sales force. There are two types of sales promotions. Consumer oriented such as coupons, rebates, contests etc. Trade oriented where the sales intermediaries are targeted such as wholesalers, distributors and retailers Publicity:- This refers to the non personal communication of an organisation paid for or run under a sponsor ships such as news story, announcements, editorial article etc. Pubic Relations:- Public relation is defined as the management function which evaluates the public attitudes , identifies the policies and procedures of public interest and executing an action to gain public understanding or acceptance 41

Personal selling:- \this is basically person to person communication in which a person try to assist or persuade a prospective buyer to buy a particular product or services or to act on a particular idea. When we analyse the marketing mix of Bigbazar we can see that it has paid better attention to gain all positive perception of all its customers to get better results. Here the link between all the aspects of the factors which influence the consumers buying decision are well linked and co-ordinated and this is the reasons for Bigbazaars success. Following are the different elements of retail marketing mix of Big bazaar. 1. Merchandising assortment 2. location 3. price 4. visual merchandising 5. store atmosphere 6. customer service 7. advertising 8. promotion selling some of the innovative sales promotion programmes of Bigbazaar 1. Low prices on Wednesday 2. Concept of big day 3. promotional offer like Believe it or not source(http://www.scribd.com/doc/904659/Big-Bazaar)

source(http://saleraja.com/wp-content/uploads/2008/12/big-bazaar.png)

42

Importance of Communication in sales promotion Promotion is all about companies communicating with customers A business total communication programme is called the Promotion Mix. (http://tutor2u.net/business/marketing/promotion_mix.asp) Importance of communication can be proved by using Brand Image as a case. Brand image in retailing can be defined as the way in which the store is defined in the shoppers mind, partly by its functional qualities and partly by an aura of psychological attributes. (Martineau (1958)(retail marketing,Perter Mc Goldrick,2002pp-183) When a customer make the buying decision there are number of ideas and concepts been processed in his/her mind. As stated earlier that this process is highly influenced by number of internal and external factors. These factors are the outcome of Promotion through Communication and by the end process called perception the consumer makes the final brand choice for purchase. Process of brand choice is explained in following diagram.

Process of brand choice

(http://www.emeraldinsight.com/Insight/viewPDF.jsp? contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/007 0390104.pdf)

43

With effective promotional activity executed through better communication channel can develop better attention and can results in positive perception and thus results in developing the brand image. When the brand image is developed it always facilitates brand equity and sales. When we look at the marketing strategies of Bigbazar we can see that Value Branding is the key to their success.

Importance of Price and Loyalty in sales promotion Sales promotion is a significant tool used universally by all marketing concerns to gain better perception from its consumers. Therefore manufactures and retailers are so keen in identifying the effects of marketing variables like price, loyalty and promotions on to their sales and market share. The first such variable is price. The price that is observed at the moment of purchase is a fundamental variable (Winer 1985, Lattin and Bucklin 1989, Kalwani and Yim 1992, Mayhew and Winer 1992, Mazumdar and Paptla 2000) says that price is an essential element. Price is closely associated with reference price. Reference price is a subjective price with which consumer compare the observed price and determines whether the prescribed price is acceptable or not. Various authors have stated that the reference prices are formed on the previous occasion or estimates based on past experience (Mayhew and Winer, 1992; Rajendran and Tellis ,1994; Bell and Bucklin,1999; Erdem, 2001) As a result of this comparison at the time of purchase the gains and losses emerge. When the reference price is high consumer perceives gain and when the reference price is less the consumer perceives loss. When a consumer perceives gain he or she shall be more inclined to purchase, if the consumer perceives loss the interest to purchase will diminish.9(Winer, 1986; Kalwani and Yim,1992; Briesch,1996;Mazundar and Paptla,200) And some authors also suggested that the effects of losses will be greater than that of gains (Kalyanaraman and Little,1994; where as some authors says that consumers will react more strongly to gains (Green leaf,1992,1995) Depending on the consumers response to gains and losses we come across two types of consumers Loyal and Non Loyal consumers. Loyal consumers respond similarly to gains and losses where as non loyal consumers will respond with much better interest to gains.

44

There fore the success of any sales promotional activity is closely associated with price, reference price, gains and losses and loyalty.

SALES PROMOTION AND PERCEPTION from retailers point of view. Introduction Sales promotion techniques are commonly used by retailers to have a direct impact on the customers buying behaviour. In order to get better output sales promotional activities should be properly planned, organised and integrated in to the organisations marketing plan. Basically there are two types of sales promotion objectives, Short-term and Longterm. The first one is aimed at responding to competitors activity or to sell off and get rid of the stock, the second one is aimed at increasing the market share building up brand image etc. John C.Totten& Martin P. Block (1994) Generally promotion provokes two quick reactions in people 1. Increased consumption ; more quantity of the product is acquired 2. Storage of the product for the future (Chandon and Wansink,1999) However the effects will vary depending on the attractiveness of the sales promotional tool employed. Effective sales promotion can make a consumer attracted to buy a particular brand which he or she normally doesnt buy (Gupta,1993) 45

The effects of retail sales promotion on consumer also depends on his or her behaviour and attitude. Based on this we can divide the consumers in to three segments. 1. Consumers who find the actions attractive and likely to buy. 2. Those who find neither attractive nor necessary 3. Those who find and remain indifferent are not affected by these actions in their final decisions. Types of retail sales promotion Introduction Sales promotions are mainly divided in to types Price based and Non Price based (Campbell and Diamond, 1992; Blattberg and Neslin, 1990) Price Promotions are promotions such as Coupons, Cent Off, Rebates and Refunds that temporarily reduces the values of goods and services (Cooke, 1983) Where as Non Price Promotions is promotions such as giveaways (freebees) or contest in which value is temporarily added to the product at full price. When implementing a sales promotion campaign the main objective of management is to stimulate immediate sales and consumer attention towards a particular brand. The success or failure of a promotional campaign depends on how far it could affect the consumers choice. In a highly competitive retailing environment, the retail managers are prone to test number of strategies and techniques that would gain either a short or long term competitive edge.(International Journal of Retail & distribution management,D.C Gilbert and N.Jakaria,2002,Vol.30,No.6,pp-315-322) When we look in to a firms communication strategy the one major factor which would give both long term strategic benefits as well as short term tactical flexibility is sales promotion. Strategically, in a highly price sensitive environment Some supermarkets tend to depend heavily on price related promotional activities and there by adjusting the extent of promotion to match the daily or weekly promotion of their competitors. Some other supermarkets refuses to modify prices on a daily basis and are interested in paying better attention to product quality, assortments and more conservative price promotions to attract the other markets. It is assumed by the retailer is 46

that some deals are more effective than others in getting the attraction of consumers. . (International Journal of Retail & distribution management,D.C Gilbert and N.Jakaria,2002,Vol.30,No.6,pp-315-322). Following are two main categories of sale promotion.( John C. Totten and Martin P. Block,1994) Price promotion Interest promotion Price Promotional technique:- This tool can be used in different ways as an effective promotional tool, from price off to refund offers. This sales promotion also includes various short term tactical tools, and is proved that it is an effective tool to increase sales. Price promotions can generate only short term increase in the sales (Smith and sinha,200;Banks and Moorthy,1999;Koppalle and Mela,1999;Diamond,1992; Gupta and Cooper,1992;Bava and Shoemaker,1987). Studies prove that customers who take advantage of price promotion benefit normally returned to their favourite brands (Ehren berg et al,1994;Brand week ,1994) This tool can be segmented in to the following categories as the way the special price is offered and communicated to the consumer. 1. Price-off :- Here a retailer or the manufacturer simply mark down the price on the price label and shelf label. 2. Coupons :- In this method retailers actually maintain the original price of the product and only the coupon holders are privileged to have price discounts. Following are the varieties of coupons. Coupons are proved to be the powerful inducement for consumers to switch brands (Lichtenstein,1990) Cents-off here certain amount off is offered on actual price Free- a free product given Buy one, Get one free-With the purchase of one product at a regular price, a second one is given free Time release- Cents off coupons are introduced with different time expiration dates. Multiple purchase-Coupon offer for more than one unit purchased.

47

 Self destruct-More than two, coupons printed over each other and only one can be used, and the consumer must choose one. Personalized-Localised coupon based on geographic location or store. Cross-Ruff- A coupon for one product is gained with the purchase of another unrelated product Related sale- A coupon received on the purchase of one product applies to another product, related in some manner to the purchased one. Sweepstakes Entry- Redeemed coupon becomes an entry into sweepstakes. Source: (John C.otten,Martin P.Block ,1994,Analysing sales Promotion,2nd Edition,1994)

Coupons: Coupons and discounts are the most widely used sales promotional tool (Krishana and Zhang,1999; Huff and alden,1998; Leone and Srinivasan, 1998; Blattberg and Neslin,1990) In this method retailers actually maintain the original price of the product and only the coupon holders are privileged to have discounts. Coupon promotions are fully successful only if the consumers are used to keep a track of the coupons and are used in utilising it (Huff and Alden,1998). And if the customer is more price conscious then his/her attitude towards the coupon will be more positive. Bonus packs:By using this tool consumer is offered a special price is to increase the amount of the product given for the same price. The main advantage is that it encourages the consumer to buy more quantity. Continuity plans:This technique requires the saving of some device related to buying. Example is frequentflyer plans in various airline companies. The main benefit gained from this tool is that the requirement for high purchase frequency. Refund offers. Here when a purchaser sends a proof of purchase, a refund or discount is given. The main advantage is that not every one who purchases the product request refund. Trade promotion:

48

Trade promotion generally can be trade allowance or A trade coupon, this is also a form of price promotion where discount is offered on the basis of sales volume. Interest promotion techniques These are some promotion tools which generate interest rather than price, these tools are primarily been used to generate short term sales. Certain techniques fit with in this general category are as follows. Sampling:- Giving customer a free sample is the most effective means to introduce a new product demonstrating the improvement in an existing one. The major problem in this method is the distributing of free samples and the cost. Contests and sweepstakes.:- In contests it require that consumer purchase a product to enter and sweepstakes are only a ballot entry that is drawn at random to win. It is widely used to generate interest in advertising or to increase the store traffic and the main advantage is that they build store traffic. Free premiums:-There are several types of free premiums such as in-or on-pack premiums, such as toy, reusable container, offer to buy another product for a cheaper price. It increases the products perceived value and the main advantage is that they gain display, differentiate the product and facilitate the use of self liquidating premiums. Mail in premiums:- These are gifts that are send with proof of purchase. The promoter bears the entire costs. The main advantages are it requires multiple purchases and attracts attention. Source: John C.Totten, Martin P. Block (994).

49

INDUSTRY PROFILE A view over retailing Retail industry is the second largest industry in the United States with the number of employees and establishments and it is also one of the largest industrial sectors in the world. Retail industry employees 23 million Americans and generates more than $3 trillion through retail sales annually (www.playground.us-anlytics.com). In every country whole sale and retail business make up a large portion of nations employment and business establishments. Wal-mart the worlds largest player in the retail sector is associated with 1.3 million employments and a per capita sale of $11.993 and this particular industry is predicted to add 2.1 million jobs between 2002 and 2012 and an increase of 14%.

50

Another important feature of retail industry is that it can offer substantial employment opportunities because pastime and temporary work is plentiful in a wide variety of formats in all forms of retailing. indian retailing Introduction In India retail industry is the largest industry, with an employment of 7% and contributing to over 10% of the countrys GDP. Presently the India retail industry employs 21 million people which is 7% of the total employment (Surabhi Shukla,Vidya school of business Meerut). The Indian retail sector was predominantly controlled and driven by the traditional and unorganised format of retailing. The Indian retail industry is expected to rise 25% yearly being driven by the tremendous rise in income, changing trends in life styles and favourable demographic patterns. Organised Formats of retailing in India. Indian retail industry started changing its face from 1980s. The last decade has witnessed a tremendous dynamism and various organised retailing has become the centre of attraction in all the urban areas, we could also see that these retail giant were gaining the momentum going in their favour. The success of these modern retailing were mainly because of the increased purchasing power and, credit facilities, rise in income, changes in life style, increased consumer awareness etc. But the over all share of organised retailing is still 3% of the total retail in 2004 and it is expected to grow up to 9% in 2010 (Surabhi Shukla,Vidya school of business Meerut). Some key facts about Indian retailing Retail industry is the largest industrial sector in India over 10% of the countrys GDP and around 8% of employment. Organised retail will form 10% of the total retailing by the end 0f 2010 and is expected to grow $70 billion. The market size of Indian retail is about $312 million. Arrival of multinational will further enhance the growth.

51

The Indian retail industry has witnessed a tremendous growth over last five years (20012006). The organised form of retailing has come in to existence from the shadows of unorganised and traditional Indian retailing. Ever since it was emerged it started contributing significantly to the over all growth of Indian retail sector. (http://www.bharatbook.com/detail.asp?id=20208).

Company profile bigbazaar Pantaloon Retail (India) Ltd. The current Market share of Pantaloon India Ltd must be one of the greatest success retail stories in Indian retailing sector. Pantaloon was founded in the year 1987 at Mumbai by Kishore Biyani. Manufacturing and selling its first formal trouser brand called Pantaloon Trouser. Initially the company was distributing its garments through various multi brand retail units through out the country and later they opened Pantaloon Shoppe most of them were franchised. In 1997 the company opened its first department store in Kolkata. Thus the company took its current name Pantaloon Retail India Limited and is now the leading retailer that operates multiple retail formats in both the value and life style segment of the Indian consumer market. The company is headquartered in Mumbai and operates over 5 million square feet of retail space with over 450 outlets in 40 main cities in India and provide employment for over 20000 people. The companys major forms of business includes Pantaloonss a chain of fashion an exclusive menswear store in 1995 later there were 70 such stores across the country and

garment outlets, BIG BAZAR, The Indian hyper market chain, Food bazaar a supermarket chain, some of the other formats of business includes Depot, Shoe Factory, Brand factory, Blue sky, Fashion Station all, Top 10, mBazaar, star and Sitara. The online portal operated by this group is called future bazaar.com. Recently the Panataloon Retail India Ltd was awarded the International retailer of the year 2007 by a US based National Retail Federation (NRF) and also awarded the 52

Emerging Market Retailer of the year 2007 by the world Retail congress held in Barcelona. BIG BAZAR. Big Bazar, the hypermarket format of Pantaloon Retail India Ltd has changed the entire out look of Indian retailing as a whole. It has rewritten the rules of Indian retailing with innovation. The 120000 square foot area in a six storied seamless mall and it houses over 300 brands in all categories of goods such as apparel, footwear, accessories, music, books, furniture, home appliances etc. It also has a coffee shop, a food court, a food bazaar, a fine dining restaurant, a pub and a discotheque attached to it. Business description of bigbazaar. The principle business activity of pantaloon retail India is operating chain retail stores in the name of BIG BAZAAR. Big bazaar is a hypermarket which offers huge discounts and a wide range of products under one roof. Since the organised retailing in India is growing at a very fast rate the sector has become highly competitive with the entry of several other players such as Reliance Industries, Adity Birla Group, Bharathi Group etc. Big Bazar is pulling out all the available tools to win the consumers by offering services like tailoring, laundry, cleaning homes, repairing electronic appliances etc. insight to big bazaar. Big bazaar out lets in India operates on the same economic model a Wal-Mart. It has gained a very high reputation and market share in many Indian cities and small towns. Right now Bigbazaar stores are located only in India and are considered as the biggest and fastest growing chain of department stores. By 2010 Bigbazaar is planning to launch 350 outlets in India.

53

Source(http://images.google.co.uk/imgres?imgurl=http) Goals Vision- Future Group's vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. One of the core values at Future Group is, Indianness' and its corporate credo is Rewrite Rules. Retain Values. Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development Source (http://www.pantaloon.com/corporate_state.asp)

We always will be the trend setters in evolving delivery formats creating retail reality, and ensuring the consumption affordable to all Indian customer segments for classes for masses.

Business Strtegies of Bigbazaar

54

Bigbazaar belives in offers, we can see often see various offers of Bigbazaar in news papers, Their business strategy is like the main head office decides the promotional schemes and the outlets run these schemes. The company is making every effort reach and every individual considering all sorts of available media resources such as digital signage, audio video Bluetooth technology etc. Source (http://retailjunction.goelji.com/retail-promotions/promotional-offers-run-by-bigbazaar.html) Following picture shows some of the sales promotion offers of Bigbazaar.

55

source(http://www.saleraja.com/wp-content/uploads/2008/03/adishwars1.png) Following are some of the key business strategies that resulted in the success of Bigbazaar. Bigbazaar has realised the fact the saving is the key to Indian middle class consumers. The concept of Bazaar, as the store that offers large number of product mix at a discounted price

Price was considered as the basic value proposition at Bigbazaar. The Bigbazaar outlets sold a wide variety of product at a discounted price which were 5 to 60% less than the market value.

Source(http://www.scribd.com/doc/15808215/BIG-BAZAAR)

The merchandising Mix of Bigbazaar. Bigbazaar could offer large product mix, this was the main attraction. Bigbazaar offered around 130000 products over 20 product categories. The buying process for most of the categories were price driven. Bigbazaar can cater every possible retail need of a consumer. Attracts huge customers per day.

Source(http://www.scribd.com/doc/15808215/BIG-BAZAAR)

The above are some of the facts and figures of Bigbazaar .The giant retail company in India with the acceptability of this Bigbazaar the researcher could say that Indian Retail Market may well see an onset of a revolutionary phase and tremendous growth can be forecasted in the near future.

56

THEORATICAL FRAME WORK (Retailing) Introduction This Chapter briefly explains various theories related to the concept of retailing and the entire retail management such as retailing strategies, retail marketing decisions, various classifications in retailing and a brief note about Indian retail industry, current trends in the retail industry etc are explained in detail in this chapter.

RETAILING Nature and Scope of Retailing: Retailing includes all the activities involved in selling of goods or services directly to final consumers for their personal, non business use. Any organization that does the selling- whether a manufacturer, wholesaler, or retailer- is doing retailing (Chethan Bajaj, Rajnish Tuli, Nidhi Srivstava,(2005) Types of Retailers 1. Store Retailers: Consumer can shop for goods and services in a wide variety of stores. Here is a brief description of the more important store types a. Specialty Store: A specialty store carries a narrow product line with a deep assortment with in that line. Example of specialty retailers is apparel stores, sporting goods, furniture stores, florists and bookstores.

57

b.

Department stores: A department store carries several product lines, typically clothing, home furnishing, and household goods. Where each line is operated as a separate department.

c.

Supermarket: A supermarket is a relatively large, low cost, low margin, high volume, self service operation designed to serve the consumers total need for food, laundry and household maintenance products. Many supermarkets are moving into prescription, appliances, records, hardware, garden supplies and even cameras, hoping to find high margin lines to improve profitability.

d.

Convenience stores: convenience food stores are relatively small stores that are located near residential areas, are open long hours and seven days a week, and carry limited line of high-turnover convenience products.

e.

Discount store: A discount store sells standardized merchandise at lower prices and selling higher volumes. It offers national brands and not inferior goods. In Japan discount stores are the rage as Japanese consumers become more price conscious.

f.

Off price retailers: A new wave of Off Price Retailers moved up in to fill the low price, high volume gap. There are three main types of Off-price retailers- factory outlets, independents, and warehouse clubs. Factory outlet are owned and operated by the manufacturers. Independents are owned and run by entrepreneur or division of larger retail corporation. Warehouse club sell a limited selection of brand name grocery items, appliances, clothing and a hodgepodge of other good of deep discounts to members who pay annual membership fee.

g.

Catalog showroom: A catalogue showroom sells a broad selection of high mark-up, fast moving, brand name goods at discount prices.

h.

Superstore, combination and Hypermarket: superstore average 3300 square metres of selling space and aims at meeting the consumers total need for routinely purchases food and non food items. Combination store represent a diversification of the supermarket store into the growing drug and prescription field. Hypermarket is even larger, ranging between 7400 and 20,400 square metres. The hyper market combines supermarket, discount and ware house retailing. Its product assortment goes beyond routinely purchased good and includes furniture, large and small appliances, clothing, and many other items 58

2. Non-store Retailing: This is the second type of retailer. Although many goods and services are sold through stores, there is non-store retailing that can potentially take a large chunk of sales from store retailing channels. For example; direct selling, direct marketing, automatic vending, buying services etc. Source(Chethan Bajaj, Rajnish Tuli, Nidhi Srivstava,2005) Retail marketing decisions: Retailers today are anxious to find new marketing strategies to attract and hold customers. They are rethinking their marketing strategy. The marketing decisions faced by the retailers are Target market decisions: Too many retailers have not clarified there target market or are trying to satisfy too many markets. Retailers should conduct periodic marketing research to ensure that they are reaching and satisfying their target customers.* Product assortment and procurement decision: The retailer product assortment must match the shopping expectation of the target market. The retailers have to decide on product assortment breadth and depth. Service and store atmosphere decision: The retailers must also decide on the service mix to offer customers Pre-purchase services, post-purchase services, ancillary services are some major services that fullservice retailers can offer. The service mix is one of the key tools for differentiating one store from another. Price decisions: The retailers price is the key position factor and must be decided in relation to the target market, the product and service assortment mix and competition. Retailers have to decide whether to use a promotional pricing strategy or an everyday-low prices strategy. Promotion decision: The retailers must use promotion tools that support and reinforce its image positioning. Place decision:

59

The three keys factors of retailers to success are location, location, location. Department store chains, oil companies and fast food franchisers must exercise great care in selecting location.

Sales Promotion Sales promotion consists of a diverse collection of intensive tools, mostly short term, designed to stimulate quicker and greater purchase of particular products/services by consumers or the trade. Source: (Chethan Bajaj, Rajnish Tuli, Nidhi Srivstava,(2005) Retail Management, Oxford University Press, New Delhi).

The above chapter explains briefly about the certain facts regarding the retailing and retail management and marketing methods and profile of this particular sector. This is necessary to describe some facts about retailing as a whole mainly because in coming chapters the researcher is trying link all the aspects of promotion, perception with respect to retailing.

60

Chapter-4
DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF CONSUMER SURVEY FOR SALES PROMOTION Introduction: This chapter deals with the analysis and interpretation of the collected primary data. The research is conducted to evaluate the consumer perception of various sales promotion offers with respect to m/s Big Bazaar, Bangalore with special reference to various promotion offers operated and introduced by them. Here the researcher has collected the data through questionnaire from 100 respondents chosen by the method of convenience sampling is analyzed here.

Profile of the Respondents: The personal detail of 100 respondents such as gender classification, age wise classification, location wise, income wise classification, their mother tongue, family size, occupation are shown below: Gender: Out of 100 respondents there were 68 males and 32 female respondents. Age The age profile of the respondents are tabulated in table number 5.1

61

Profile related with age Age Under -18 18 -30 30-40 Above 40 no of respondents 11 44 27 18 % level 11 62 27 18

Chart showing the age profile of respondents

n o re p n e ts o f s odn 5 0 4 0 3 0 2 0 1 0 0 U d rne 1 8 1 -3 8 0 3 -4 0 0 A oe bv 4 0

n o re p n e ts o f s odn

(source primary data) Income The income profile of the consumer are tabulated in the following table Profile related with income Income per month Below 10000 10001-20000 20001-30000 30001-50000 Above 50000 Total Source: primary data No. of respondents 9 32 25 28 6 100 % Level 9 32 25 28 6 100

62

Chart showing the income profile of the respondents

N .o r s o d n o f e p n e ts 4 0 3 0 2 0 1 0 0 B lo e w 100 00 201 00300 00 A oe bv 500 00 N .o r s o d n o f e p n e ts

Interpretation:From the above chart we can find that most of the respondents belongs to the middle class section of the society and in India this section is considered to be huge in numbers. Hence the business strategies of big bazaar could attract the middle class section of the Indian society that itself is great success.as per researchers opinion.

Occupation The occupation wise classifications of the respondents are given in the following table

Profile Related with Occupation Occupation Self employed Private employed Govt employee Professional Student No of Respondents 8 35 23 12 16 63 % Level 8 35 23 12 16

Others total Source: Primary data

6 100

6 100%

Chart showing the occupation profile of the respondents No of Respondents

Self employed Private employed Govt employee Professional Student Others

Frequency of Customer visit: The customers are asked about the frequency of their visit to Big Bazaar and the suggested responses were once in a week, once in a month, once in six month, once in a year and the tabulated response are shown in the table followed by a pictorial representation in chart .

Table showing frequency of visits No of times Once in a week Once in 2 weeks Once in a month Once in 2 months No of respondents 28 42 18 12 64 % Level 28 42 18 12

total Source: Primary data

100

100%

Chart showing the frequency of visits by the respondents

Once in 2 months Once in a month Series1 Once in 2 weeks Once in a week 0 10 20 30 40 50

Interpretation: The above table shows that about 28% of customer visit Big Bazaar once in a week, 42% of the respondents visit once in 2weeks, 18% of the customers visit once in a month, and 12%. of the customer visit once in 2months. Nearly half of the respondents visit Bigbazaar once in 2 weeks and there is a high chance for repeat purchase and better footfalls in the store. Why people shot at Bigbazaar: When the customers were asked why they prefer to shop at Bigabazaar? And the suggested responses were because of offers, convenience, quality, price and other factors. Why people shop at Bigbazaar 65

No of Respondents Offers Convenient Quality Price Others Total Source: Primary data 67 6 8 17 6 100

% Level 67 6 8 17 12 100%

Chart showing the Reason why people buy from Bigbazaar

80 70 60 50 40 30 20 10 0
en t rs y on ve ni O th er s Q ua lit O f fe P ric e

Series1

Source :Primary data Interpretation:- From the above table it is found that more 67% of the respondents shop at big bazaar just because of offers followed by 17% of them are shopping because of the price factor which is also a part of various offers . Hence one could say that customers have perceived positive perception towards the sales promotional activities of Bigbazaar and sales promotion is still the driving force behind majority of the consumers who are shopping at Bigbazaar. Consumers awareness level about offers The data regarding s awareness level about various offers of Bigbazaar. Table 5.8 Consumers Awareness level about offers

66

No of Respondents Yes No Total Source: Primary Data 98 2 100

% Level 98 2

No of Respondents 100 80 60 40 20 0 Yes No No of Respondents

Interpretation: The table indicates that about 98% of the respondents know about the offers and only 2% dont know about offers. From the above figures we can also trace out that almost all the visitors to Bigbazaar are aware of the availability of various offers and only 2% are not aware, it indicates that most of the customers are impressed by the promotional activities and are being driven to pay visits.

Source of information The customers were asked for the media through which they came to know about Believe it or not. The data is shown in the table 5.9 followed by a pictorial representation in figure 5.3 Source of Information Media News papers Pamphlets No of Respondents 42 22 % Level 42 22

67

Tele vision Radio Hoardings Total Source: Primary Data

16 15 5 100

16 15 5 100

Chart showing the sources of information to the consumers No of Respondents

News papers Pamphlets Tele vision Radio Hoardings

Interpretation: The information about the offers through News Papers has been effective which ranges up to 42%, Pamphlets rated 22%, Television with 16%, Radio has a low coverage with 15% and hoardings with 5% response. Whether customers are attracted by offers:- When asked the respondents whether they are attracted by offers and are influenced by it or not? Whether customers are attracted by offers No of Respondents Yes No Total Source: Primary Data 87 13 100 % Level 87 13 100

68

Chart showing the attraction level of consumers to offers

100 80 60 40 20 0 Y es No Series1

Interpretation: The table indicates that majority of them are attracted by various offers and about 87% of the respondents are attracted and impressed by various offers.

Does an offer makes consumers buy more:- The respondents were asked whether they buy more if certain offers are available to them.

Does an offer make consumers buy more? No of Respondents Yes No Total Source: Primary Data 76 24 100 % Level 76 24 100

69

80 60 40 20 0 Y es No S1 Series1

Interpretation:- when asked the above question majority of the respondents were so confidently responded with YES they will buy more and out 76% of the respondents are happy to receive various offers to buy more and 24% respondents said they will not buy more.

What products consumers often buy at Bigbazaar:-The respondents were asked what are the products they often buy from Bigbazaar and the suggested answers were grocery, Clothing & footwear, electronics, furniture, food, others.

What products consumers often buy at Bigbazaar. No of times Grocery Clothing & footwear electronics furniture Food bazaar others total Source: Primary data No of respondents 33 22 11 6 20 8 100 % Level 33 22 11 6 20 8 100%

70

Chart showing various products often shopped by consumer

Clothing & footwear

electronics

furniture

Grocery

Interpretation:- It is found from the above table that customers are of with different needs and different intentions. But still we could find that Grocerys are the goods often been brought by nearly half of the respondents when they visit big bazaar. To be exact 33% of the respondents does the same. Clothing and food is the next priority ones with 22% and 20% respectively followed by electronics 11%, Other goods 8%, Furniture 6%. How often consumers buy their preferred products:-The respondents were asked to report how often they buy their preferred products from Bigbazaar and suggested answers were once in week, once in two weeks, once in a month, once in 2 months, only when there is special offers available. How often consumers buy their preferred products No of times Once in a week Once in 2 weeks Once in a month Once in 2 months Only when offers available total Source: Primary data No of respondents 22 46 16 10 6 100 % Level 22 46 16 10 6 100

71

Food bazaar

others

35 30 25 20 15 10 5 0

Series1

Chart showing how often consumers buy at bigbazaar

Once in a week Once in 2 weeks Once in a month Once in 2 months Only when offers available

Interpretation:- From the above chart we can find that nearly half of the total respondents, exactly 46% of them buy their preferred products from Bigbazaar once in 2 weeks, followed by 22% on every week, followed by 16% only on every month, 10% buy their products once in 2 month and 6% buy their preferred products only on special offers.

Most effective offers as per consumers opinion:- The respondents were asked to suggest the most effective offer operated Bigbazaar and the suggested answers were the some of the successful offers like get more for less, Get Big for small, Buy one get many, Special offers, Discount offers. Most effective offers offers Get more for less Get big for small Buy one get many Special offers Discount offers Total Source: Primary Data No of Respondents 12 5 34 21 28 100 % Level 12 5 34 21 28 100

72

Chart showing the most effective offers suggested by respondents

40 30 20 10 0 Get more for less Get big for small Buy one get many Special offers Discount offers Series1

Interpretation:- When analyzed the above data we could find that Buy one get many was the most successful offer suggested and appreciated by majority of the respondents 34% of them supported this particular offer. It proves that every customer is looking to get more out his or her spending. Discount offers are the next priority offers suggested by 28% of the respondents followed by special offers with 21% and get big for small with 5% of the respondents respectively. With respect to Bigbazaar they always operate this buy one get many offer in regular intervals mainly in the clothing and garment department.

Suitability of offers for various departments form consumers point of view.

The customers were asked to select the best department for certain offers followed by various departments, is explained in the form of a graph shown in chart 5.20

73

Offers

Get more for less Get big for small Buy one get many Special offers Total Source: Primary data

33 8 37 22 100

23 15 28 34 100

20 20 17 43 100

25 17 30 28 100

27 20 18 35 100

45 14 16 25 100

120 100 80 60 40 20 0
ea El r ec tro ni cs G ro ce Fu ry rn itu Fo re od ba za ar lo th i ot w ng

Get more for less Get big for small Buy one get many Special offers Total

Interpretation: The rated advantage for offers like buy one gets many and special offers has a high level of suitability for the departments. The best suitability of offers are given below About 37% of consumers opined buy one get many offers to Clothing 34% of consumers opined special offers are suitable for Foot wear 43% of consumers opined special offers are suitable for Electronics 35% of Special offers for furniture 45% of Get more for less for Food bazaar is suitable for the departments.

Fo

74

Foodbazaar

Electronics

Footwear

Furniture

Clothing

Grocery

Summary of Findings based on consumer survey regarding perception towards sales promotion, Bigbazaar as a case.

Sales promotion increases the sales Sales promotion is one of the important marketing activities that has got a very significant role in the making a product success or failure. As a tool of sales promotion Bonus packs, many companies have reported success with bonus pack sales promotion Sales promotion is a proven tool to increase sales in all format of the trade. All the above mentioned sales promotion techniques are widely used in all the retailers to boost up their sales. The effects of sales promotion also can be viewed from the weekly sales graph of Bigbazaar. Bigbazaar is operating a sales promotion campaign called the Concept of big day on every Wednesday, on this day special discounts and offers are given in huge scale, this has changed and increased the weekdays sales turn over. Hence when we look at the sales graph we can see a W shape diagram instead of U shape diagram. The following figure shows the weekly sales turn over of Bigbasar.

sale 12 10 8 6 4 2 0 sun m on tue w ed thu fri sat sale

Source (Sales report Big bazaar Koramangala,Banglore) Hence it is worth saying that through better sales promotional activity co-ordinated with well defined and objective oriented communication system can develop and generate better awareness among the consumers. Here the manufacturer can gain a positive

75

perception from the respondents and can drive this particular perception in favour of a particular brand or product. Hence we conclude this chapter by saying that Promotion through precise communication can generate positive perception and there by driving the perception as desired is the key to success in the modern highly competitive global environment. Some of the other findings are as follows.

1.

The pricing and offers are found to be the main attraction for its popularity and success, the price ranges and the various products offered are very much impressed by the consumers.

2. offers. 3. group. 4. 5.

It is found that the majority of consumers is attracted and is interested in various

Another fact behind bigbazzars success is that it could attract the middle class Indian crowd, which seems to be huge in numbers when compared to all other income

It is found that Bigbazaar can cater all needs of Indian consumer Promotional mix with well defined communication channel can influence and increase the sales

6.

Bigbazaar has had a very high impact on the middle class section of India, with the price, quality, and sales strategies of bigbazaar could gain better attention from the consumers.

7. offers. 8. . 9.

When we analyze The percentage level of information to the consumer through news paper is the effective one which brought certain level of coverage about various

Among various offers, especially discount offers have been effective on the whole

The majority of the consumers are satisfied with the sales promotion activities of bigbazaar.

76

10. offers. 11.

Clothing, garments and kids wear have made a better image over the special

The majority of consumers dont know about the past offers. This is one of the basic draw backs of big bazaar.

12.

It has been found that the consumers who dont know about any offer in big bazaar are very few

13.

The most preferred offers rated by consumers were buy one get many, special offers and discount offers.

Suggestions and recommendation 1. Since sales figures showing noticeable growth on special offers, consumers should be made aware about the various available offers on a regular basis through better coverage. 2. The offers given should be of quality products and conditions should be under profit to consumer. 3. 4. The offers should be for the whole day. More details should be included in the advertisements about the sales promotion of big bazaar. 5. Discount offer can be allocated for a single piece rather than using the offers like buy one get one. 6. 7. 8. 9. The availability of the branded product should be heterogeneous. The offer should be available to all the products in Big Bazaar. The offers should be frequent. Offers should be at the level of middle class people.

77

10.

Since the special offer has made a great impact over the departments they can adopt this strategy in the future concepts.

11. 12.

Consideration should be given to discount offers. As the customer gives more weight age to the quality, it can be taken as a main promotional feature for the products.

13.

The coverage should be well extended since it has been the major issue related to sales promotion activities

14. clear.

Signages can be positioned is those area (entry and exit) as such the customers can easily come to know about the offers for the different products and it should be more

Above are some of the finding with regard to the research here we could see that the sales promotional activities are widely used y various firms because its worth operating it at any level of marketing and it guarantees better sales. That The success of Bigbazaar alone is enough to emphasise the fact that promotion always helps increase the sale.

78

Chapter-6

Conclusion

This chapter will present the over all conclusion and it try to assimilate the actual objectives of the research whether they are achieved or not. The main objective of the research was to find out the effectiveness of sales promotion programmes and to measure how much it can influence the perception of consumers. The first objective was the research to analyse various theories and literature reviews regarding the topic, were discussed and analysed this also has helped the researcher to make a strong foundation to the scope and depth of the subject. The second objective was to find out the perception level of consumers for this first hand information is required, here the researcher has collected the primary data from 100 respondents. and their views suggestions and opinions are taken in to consideration to know the requirements of an ideal sales promotion programs. and the various elements that are to be considered for designing optimum sales promotional mix. For this study the researcher has taken the Bigbazaar retail Unit as a case. The third objective of this research was to identify how much the sales promotion affects the sales by influencing the perception of consumers. In the literature review part the researcher has also discussed in detail the various sales promotional aspects of Bigbazaar and in the latter stage the researcher has started

79

concentrating on the importance of sales promotion with respect to consumer perception to the subject and its over all scope and significance. The process of managing and marketing functions in Big Bazaar in relation to the sales promotion for the consumers has been found the most effective one and is considered to be the driving force behind every visit and every purchase at Bigbazaar. It is learned from the research that If a promotion program has specific objectives, precise targeted segments and a well defined communication channel, undoubtedly we can say that that promotion effort will deliver positive results. Here the promotion mix of big bazaar is such that it has all the above attributes well attached to it and it is the back born for its success in gaining consumer attraction. It is this attracted segment of the market is found to be causing the tremendous growth. The attracted the consumers in increasing the sales of big bazaar. The Big Bazaar impact over customer response. All The process for the Big Bazaar in relation to the sales promotion for the consumer has been most effective concerning the sales turn over and increased footfalls. The promotion has attracted most of the consumers in increasing the sales of big bazaar. The Big Bazaar made use of such activities to enhance its sales turnover in a profitable way. The study mainly focused on the promotional offers of Big Bazaar and the trend that are prevailing in Indian retail industry as a whole. Also analyses the various promotional offers and and its effect over the consumer. The study throws a light on the various aspects of the consumers attitude towards the sales promotion of the Big Bazaar. The preference for this study gave an actual data of the offers which are more reliable for the organization. The Believe it or not offers which included buy one get many, special and discount has shown a great impact over customer response. Hence the researcher can strongly say that the sales promotion programmes increases the sale by influencing positive perception in consumers.

80

Chapter-7
References Clow, Kenneth E, Baack Donald,(2004),Integrated advertising Promotion, and Marketing Communications,2nd Edition,Pearson education Ltd. Mc Goldrick,Peter,(2002), Retail Marketing,2nd Edition, McGraw-Hill Education,pp36181 Gilbert.D.C,Jakaria.N,(2002),International Journal of Retail & distribution management, Vol.30,No.6,pp315-322. Kassarjian,Harold H and Robertson,Thomas S, (1998),Persectives In Consumer Behaviour, 4th Edition,Prentice-hall international Inc,pp.27-34,89-94,130-212. Evans, Martin;jamal, Ahmed and Foxall, Gordon,(2006) Consumer Behaviour, John Wiley & Sons, Ltd.PP29;86-87;97-102;119-126;109-110;152-156;38; East, Robert, (1997), Consumer Behaviour, Prentice Hall,pp.91-99,251-275. Belch, George E and Belch, Michael a, Advertising and Promotion, 4th Edition, PP.13-18 Totten, John C and Block, Martin P,(1994), Analysing Sales Promotion, 2nd Edition,The Dartner Corporation, pp6-13. Norgan, Susan, (1994) Marketing Maanagement, Addison Welsley Publishing Co. Blois, Keith, (2000), Marketing, Oxford University Press, Pp.189-191. Kotler, Philipleong; Seiwmeng, and swee hoon, tan chin tiong,(1996) marketing management, 8th edition, prentice hall of india, pvt ltd. kothari, c.r, research methodology, (1990) 2nd edition, by new age international (p) ltd.

81

Bajaj, chetan; tuli, rajnish; srivastava, nidhi v;(2005) retail management, oxford university press, new delhi. Williams. Terell G (1982), Consumer behaviour, fundamentals and strategies, West publishing company. Foxall, Gordon R, (1988), Consumer Behaviour, New Fetter Lane London, Pp.30-34,4552,63-65. Mac Innis, Hoyer,(2001), Consumer Behaviour, Haughton Mifflin Co. Pp 7-17. International journal of retail and distribution management, Volume, 30, Ed.6,2002, pp 315-322. Brassington, Francis and Stephen, Essentials Of Marketing,Pearson education Ltd,Pp.4279. http;// www.icmrindia.org,( 8/7/09) http://www.consumerpsychologist.com/cb_Perception.html,(8/7/09) http://www.marketingteacher.com/Lessons/lesson_consumer_buying_behaviour.htm, ((8/10/09) http://www.consumerbehavior.net/powerpoint_presentations.htm.(1/8/09) http://www.consumerbehavior.net/default.htm (3/8/09) http://crm4insurance.blogspot.com/search/label/Perception/(13/07/09 @7.pm) http://www.davedolak.com/graphix/promix.gif(/20/07/209 @ 10.30 pm) http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=79709&Tab=A/20/ (07/2009 @ 11.30 pm) http://dspace.iimk.ac.in/bitstream/2259/354/1/325-329.pdf(21/07/2009 @11pm) http://www.tut-fashion.com/manager/form/dissertation/file/20080909234507.PDF (20/07/2009/@ 11.30 pm) http://www.emeraldinsight.com/Insight/viewPDF.jsp? contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/089 0280204.pdf (234/07/09 @8 pm) http://www.emeraldinsight.com/Insight/viewPDF.jsp? contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/007 0390104.pdf

82

http://www.learningandteaching.info/learning/graphics/maslow.gif (12/08.09@9.30am) http://www.thefreelibrary.com/Consumer+behaviour.%28CONTINUING+EDUCATION %29-a0148138197(9/08/09 @10.00pm) http://books.google.com/books? id=hY1aZXoG5WMC&pg=PT25&source=gbs_toc_r&cad=5#v=onepage&q=&f=false (12/7/09@9am) http://books.google.com/books? id=c67z2i8cFEkC&pg=PT215&dq=FACTORS+INFLUENCING+CONSUMER+BEHA VIOUR#v=onepage&q=FACTORS%20INFLUENCING%20CONSUMER %20BEHAVIOUR&f=false (11/08/09@2pm) http://jcmc.indiana.edu/vol9/issue2/giaglisfigure1.gif( 12/07/09 @11.pm) http://www.utalkmarketing.com/Pages/Article.aspx? ArticleID=37&Title=How_to_get_the_best_from_Sales_Promotion (12/07/09 @ 8am) http://emeraldinsight.com/0959-0552.htm(29/7/09) http://www.emeraldinsight.com/Insight/viewContentItem.do? contentId=853114&contentType=Article(12/6/09) http://www.cima.ac.cy/index.php?link=definition.php (7/07/09 @ 2 pm) http://www.nos.org/Secbuscour/24.pdf.(16/6/09) http://www.businessstudiesonline.co.uk/AsA2BusinessStudies/TheoryNotes/2874/PDF %20Non%20Print/07%20The%20Marketing%20Mix%20-%20Promotion.pdf(3/7/09) http://www.csgstrategies.com/retail-industry-facts-and-figures.asp(25/7/09) http://www.economywatch.com/business-and-economy/indian-retailindustry.html(28/7/09) http://www.indianmba.com/Faculty_Column/FC1050/fc1050.html(8/9/09) http://www.bharatbook.com/detail.asp?id=20208(21/7/09) http://www.pantaloon.com/companyinfo.asp(24/7/09) http://www.linkedin.com/companies/pantaloon-retail-india-ltd (4/07/09) http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename =html/Output/Published/EmeraldFullTextArticle/Pdf/0070390104.pdf(14/7/09) http://www.slideshare.net/sikanderkush/big-bazaar-1867884(5/7/09) http://www.thesisexpress.com/images/fig3.jpg (8/8/2009) http://iml.jou.ufl.edu/projects/Spring01/Ko/5process.gif (11/7/2009) www.imagesretail.com/profile.htm(11/08/09)

83

http://www.emeraldinsight.com/Insight/viewPDF.jsp? contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/089 0280204.pdf (12/8/2009) http://www.pantaloon.com/corporate_state.asp(15/8/09) http://retailjunction.goelji.com/retail-promotions/promotional-offers-run-by-bigbazaar.html.17/8/09 http://www.scribd.com/doc/15808215/BIG-BAZAAR (18/8/09) http://saleraja.com/wp-content/uploads/2008/12/big-bazaar.png(12/9/09) http://images.google.co.uk/imgres?imgurl=http (12/9/09) http://www.saleraja.com/wp-content/uploads/2008/03/adishwars1.png(13/9/09)

DE C L A R A T I ON

I, Dipin Kuzhikkattumeethal bonafide student of 'Department of Business

and Law' like to declare that the report on "A Study to Evaluate the Consumer Perception towards the Sales Promotion, Big Bazaar as case" is a
bonafide work of the project submitted by me, towards the partial fulfilment for the completion of the course of Msc, Purchasing and logistics, Leeds Metropoliten University.Leeds.

84

Dipin Kuzhikkattumeethal

SELF REFLECTIVE LEARNING STATEMENT

Learning can be described a process by which we all gain some understanding. Every individual is under going various learning process each and every day, a fact or a concept can be learned from each and happenings. Learning is not exclusively to the education system. But Learning begins much before the schooling days and continues to remain much more after school days. Learning happens every day with wide number of various ways. The main objective of learning statement here is to discuss the areas of learning extrapolated by the developments of this research. It provides the evidence of dissertation learning experience. I have learned a lot from doing this research. In order to carry out this research I was forced to read and collect as many materials as possible with special guidance from the supervisor every now and then when I met my supervisor she could tell me something which is really a new learning experience as far as I am concerned. After my schooling I had developed an aim of getting a Master degree from a reputed institution in India (M.B.A) Marketing , after being accomplished that need desire I started aiming more an international Masters Degree which would give me better reputation in the family and society and would also make me competitive enough. So I took up the decision to do my second masters in UK. I selected the course as

85

Msc.Purchasing and Logistics. Which I thought for sure that it

will be an added

advantage to my career. I took this course mainly because I was working for a company called Alembic Ltd. As an Area Sales Manager where my Job profile was Channel sales, where I was managing the Distribution network of nearly 14 distributors, both primary and secondary sales. The territory sizes more than half of the entire UK, the southern most and a small sate called Kerala. Since I have been working in the field of marketing and my exact job profile is 100% sales, While handling the channel sales (supply of goods from company and pushing it through the channel to the retailer) there exists an aspect of supply chain when look at things from the distributors point of view and primary sales. My job was to mange distributors and to make sales for the company therefore I thought better knowledge in the field of logistics can enhance my career along with my experience and qualification .hence I selected Leeds Metropolitan University and joined for Msc Purchasing and Logistics course. Which contains modules like supply chain management, logistics application, corporate strategy, Managing people and organization etc. When I was about to leave India to UK for my Masters there was lots of confusions, doubts, anxieties in my mind regarding my life in UK the culture, attitude of the people, food accommodation etc. But things were much interesting and favourable to me people were so friendly and the helping mentality of the people of UK should be highly appreciated. I could feel these aspects as soon as I landed in Manchester air port airport staffs were so helpful in guiding me for my further journey to Leeds. Things were even better interesting, appreciable when I attended my first class I could see lots of Indian students various parts of India and international students from all over the world. The mixed cultural experience I felt in the campus was unique and fabulous Unlike the what I have learnt in India I have developed a lot with my presentation skills, communication, Managerial skills, Listening, more over the team work I mean the group work which was a stunning experience and was much appreciable and I would even feel like to request the Indian institutions to adopt some of these. Apart from my studies I have gained more aspects I felt that my career has had a great turning point when I joined here and my approach towards life look like bit more realistic, and the great international exposure.

86

Among the various modules Corporate strategy was my favourite module because I have been operating and observing varies strategies in the filed of marketing and sales as per the directions from my company while I was working back home. Certain issues like monitoring competitors activities etc. taught in the class were actually done by me in my job in the filed of sales. After completion of that module I felt that I am in much better position to handle more complicated issues in the field of marketing and sales. During the period of research one problem I have faced is that I was supposed to go to India for doing the survey to collect the primary data from 100 respondents. And my passport was with the UK Border agency, for visa extension and the passport was delayed and I could manage a visit to India in a hurry and came back with in 20 days time. This topic was also approved and sanctioned my company back home, so I did not want to change it. With gods help I could manage to do the study in a good manner, and to complete my masters and to be a qualified person in my company and proud man in front of my colleagues. Dissertation is considered to be the core element of the course and it develops the skills of the student as a researcher and it also enables the student to critically evaluate all complexities of problems and issues in the field business.

I selected this course because of the scope and to enhance my current career and job. This course has given me some better practical knowledge that I can implement and can gain better results in my current job once I go back to my country. The scope of this subject is very wide even with the job market due to globalisation and India being one the fastest growing economy in the world. All the eyes are on India now with the free trade facilities and one of the largest consumer market in the world India is being targeted by all major players of the world therefore the need for logistic service peoples and professionals are of having very good demand in the job market. Hence I feel that having studying for an international masters degree in purchasing and logistics was one of the wisest decisions I have ever made. But in this research I have concentrated on the sales promotion. It is considered as one of the corporate strategies related to marketing and sales. Here in this researcher is trying to 87

understand the strategic benefits of sales promotion and how it affects the over all sales turn over, as a researcher I could understand the fact that sales promotion is an effective tool that can generate sales. From this study the researcher also could understand various factors that are affecting the perception. It is found that every consumers buying decision is followed by a process of decision making as learned in consumer behaviour so these buying decision id highly influential. The researcher also learned about the major influencing factors that influences the buying decision. Hence by carrying out this research as a researcher, researcher could develop a sales promotion strategy by taking into consideration and satisfying all the influencing factors and can design as well as evaluate a promotion strategy. I selected the Indian firm mainly because of the suggestion from my current company, the researcher by being an Indian. And this work enabled me to gain huge knowledge in the field of promotion. Such as the importance of sales promotion, demerits of promotion, the relation between promotion and communication, how promotion through better communication can increase sales. Etc. The researcher could learn the significant scope of sales promotion. The success or failure of any organisation can be the sales promotion. Here the researcher has proved with examples that the sales promotion is a significant tool that controls the sales turn over of any firm. Different approaches of sales promotion in different areas and how it affects the sales. From the above research it is learnt that sales promotion offers with regard to price is the most effective form of sale promotion to any business. Here the researcher could learn that in India the Middle class section of the society that determines most of the sale in any retail firm because it is this section of the society that prevailing a lot in India. The researcher found that this is the main factor that resulted in the success of big bazaar. Because Big bazaar could manage to attract majority of the middle class consumers in all the towns and this resulted in increased sales turn over increased footfalls. The researcher has also gained some important of business ethics in the business. The importance of time the time constraint, time limit since it is core element of the course 88

better attention and efforts are paid. And it has resulted in developing the talents, skills and strength of the student and provide a better exposure to world of business. Since dissertation is an independent work with the combination of qualitative and competitive information are combined and analysed researcher as a student develops special skills for reasoning evaluating different entities. Critical thinking, time management, self control is the few things that I have learned by doing this research and I feel that these are so vital in this current challenging dynamic world. These aspects make one more competitive enough in the days to come.

Q estio n u n aire (Please put a tick mark () against your answers to the statement) 1. How often do you visit Big Bazaar? once a week once in a months 2. once in 2 weeks once in 2 months

Why do you shop at Big Bazar? offers quality convenient price others..(specify)

3.

Do you know about offers? yes No

4.

How did you know about the _________ offers? News papers Radio Pamphlets Hoardings T.V

any other (please specify) . 5. Have you ever attracted by an offer to make a visit to BigBazar? yes 6. No

Do you buy more if there is a special offer?

89

 yes 7.

No

What product do you buy at Big Bazar? Grocery Electronics Food bazaar cloting&footwear Furniture others..(specify)

8.

How often do you buy these items? once in a week once a month onece in 2 weeks once in 2 months

only when there is a special offer 9. What was the last product you brought on special offer? .(specify) 10. Which was the last big offer you remember? ..(specify) 11. According to your opinion which offer is the most effective one? get more for less special offers get big for small discount offers buy one get many

12. According to you which offer will be best for each department (you can select more than one attribute). Foot Electronics wear Food bazaar

Clothing Get more for less Get big for small Buy one get many Special

Grocery

Furniture

90

offers 13. Kindly give your suggestion for improvement of offers _________________________________ 14. Personal details Name: Gender: Age Income:

male female under 18 18 to 30 30 to 40 40 above below Rs10000

Rs10001-20000pm

b/w Rs20001-30000 50001 above

b/w Rs30001-50000

Occupation: self employed govt. employee student any other(please specify)___________________

private employee professional

91