By, Abhishek Singh PGDM Vth Disha School Of Management

Contents
What is Sales Promotion?

Objectives, Benefits and types of Sales Promotion

Difference between SP and Advertisement, Personal selling.

Retail Sector: Introduction

Big Bazaar: Introduction History, Key Persons, Growth

Sales Promotion in Retail

Sales promotion in Big Bazaar Conclusion
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Sales Promotion
Introduction

Sales promotion consists of a diverse collection of

incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade.
Sales Promotion is an important method of promotion

which supplements personal selling and advertising effects.

Cont
Definition

According to AMA: "Sales promotion includes marketing activities, other than personal selling, advertising such as displays, shows and expositions, demonstrations and various non-recurring selling efforts not in the ordinary routine.
Whereas advertising gives a reason to buy, SP gives an incentive to buy.
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Objectives of Sales Promotion

1. Introduction of new products to the market through
2. 3. 4. 5.

educating people Attracting new customers by offering attractive gifts. Increase Sales through slack season Create goodwill among the present as well as prospective customers. create good public image of the product and the firm.

Importance
From the point of view of manufacturers it helps to increase sales in a competitive market and thus, increases profits; it helps to introduce new products in the market by drawing the attention of potential customers; Existing stocks can be quickly disposed off;

Cont
From the point of view of consumers the consumer gets the product at a cheaper rate; it gives financial benefit to the customers the consumer gets all information about the quality, features and uses of different products; certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; it helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market.
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Types of sales promotion

Customer Based

Trade Based
Price-Off Allowance Free Goods: Store administration

Samples Coupons Discount or price off Cash Refund offers (Rebates) Price Packs Premiums or Gift Offer Prizes (Contests, Sweepstakes, Games) Exchange offer Fair Exhibition/Events

Trade Shows

Trade Incentives
Contests

Difference
Advertisement
By using a variety of persuasive appeals, it offers reasons to buy a product or service. e.g. Good Network, Promises and Delivers. Appeals are emotional or functional in nature. e.g. endorsed by Madhvan & Vidya Balan, Shreyas Talpade, new ad of Shahrukh.

(e.g. Airtel)

Sales Promotion
Besides giving reasons in the form of different appeals, they offer incentive to the consumers to buy the product or service now. e.g. Extra balance, tariff, Free calling.

Appeals are rational It justifies whatever it says. Time frame is short term. To get sales quickly or to induce trial. Direct in approach to induce consumers to buy a product or service

Time-frame is long term. The primary objective is to create an enduring brand image. Indirect and subtle approach towards persuading customers to buy a product or service.

Indian Retail scnerio

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Introduction

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Retail In India
The Indian retail industry accounts for 10% of GDP and

8% of employment.
India is being touted as the next big retail destination

with an average three year compounded annual growth rate of 46.64%.

The Indian economy is poised to take the third position in

the world in terms of Purchasing Power Parity by the year 2010

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ua

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Introduction
About Big Bazaar
Outlet

Hypermarket Chain of Departmental Stores

100 outlets in India Located in 70 Cities

Parent group Owner

Pantaloon Retail Group (PRIL) Subsidiary of Future Group Kishore Biyani

Founded
Headquarter Industry Website Tag Line

2001
Jogeshwari, Mumbai Retail www.bigbazar.com is se sasta aur achha kahin nahi
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Brief History

The hypermarket chain was introduced in India in 2001 by

Pantaloon Retail(India) Limited The first store in Kolkata Pantaloon retail India Ltd was incorporated as Manz Wear private Ltd in the year 1987. It became a public limited company in 1991 and was renamed Pantaloon Fashion Limited and then Pantaloon retail Ltd in 1999 The management was aware that in retail size mattered . The targeted large Indian middle class market waiting to tapped.
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 Big Bazaar the discount

store was launched in the year 2001, to meet the aspirations of the middle class. In the span of two years, it has added a Food Bazaar and Gold Bazaar to its range of offering

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HIERARCHY
FUTURE GROUP

CAPITAL

BRANDS

SPACE

RETAILS

MEDIA

LOGISTICS

LIFE STYLES RETAILING

VALUE RETAILING VENTURE

FASHION STATION

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Sales promotions
The main idea behind every effort is to make a bulk purchase Saal ke sabse saste 3 din

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 Hafte ka sabse sasta din Wednesday bazaar

For generating sale apart from weekends.

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 Exchange Offers Junk swap offer

Its a unique offer which only few companies adopt.

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Junk swap offer

The customer can bring anything old, such as newspaper, and

get coupons issued in exchange of the junk. The customer can redeem the coupons before the due date on the condition that he/she shops four times the value of the coupon. The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others (Rs 20 per kg). "This offer will help the housewife clean out the junk while getting a good value for it," says Mr. Sanjeev Agarwal, President (Marketing), Pantaloon Retail (India) Ltd.
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 Latest Promotion technique in Diwali is Gift Idea 2009

It comes under Premium or gift offers, Seasonal offers to

attract more customers

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Price packs (BUNDLING)

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 Price packs are among the most essential sales

promotional tool of Big Bazaar.

FUTURE CARD (Discount Up to 3%) SHAKTI CARD for the regular customers, to give them

extra wait age for their loyalty towards Big Bazaar.

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Conclusion
In the present era of competition Sales promotion is the

vital part of promotional mix it helps advertisement and personnel selling efforts as well as it helps at point of purchase. Almost all the techniques are used in retail sector and it supports new product and existing product to survive in the market. Big Bazaar; as it is a hypermarket, to change Indian customers perception it uses traditional as well as innovative types of SP like Junk Swap Offer.

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