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Final GP On FMCG For Print
Final GP On FMCG For Print
PROJECT GUIDE:
PROF. SHARIF MEMON PROF. BHARGAV MODI
SUBMITTED BY:
VISHAL PATEL (08077) JITENDRA RAJAI (08080) SUBMITTED TO:
This is to certify that M%. V("+#l P#' l and M%. J(' ),%# R#-#( the students of MB !nd year of "#R# Institute of Business Mana$e%ent& h%eda'ad ha(e co%)*eted their Grand Pro+ect Rol o! "#l " $%o&o'(o)" () FMCG in the year !,,-.!,/, in )artia* fu*fi**%ent of Gu+arat Uni(ersity re0uire%ents for the a1ard of the de$ree of Master of Business d%inistration#
G%#), P%o- *' G.(, Prof Sharif Me%on Prof Bhar$a( Modi
D#' /
PREFACE
In this a$e of $*o'a*i7ation hy)er co%)etition has 'eco%e a re$u*ar feature# Today the %ar5ets are no *ess then 'att*e$rounds and one has to stri(e (ery hard for sur(i(a* and $ro1th# Due to (ery ra)id industria*i7ation a** o(er the 1or*d the de%and for the %ana$eria* )ersonne* and the ad%inistrati(e )ersonne* has increased# The )erfect study of Mana$e%ent in(o*(es 'oth the theoretica* as 1e** as )ractica* as)ects# To sur(i(e in this hi$h*y co%)etiti(e %ar5et 8Practica* 9no1*ed$e: is as re*e(ant as the Theoretica*# The si$nificance of MB De$ree is that the Theoretica* as)ects& 1hich a student *earns throu$hout the year in the c*ass sessions& can 'e )ractica**y a))*ied throu$h different )ro+ects& 1hich one underta5es# 9ee)in$ in tune 1ith this doctrine& 1e ha(e tried to a))*y theoretica* as)ects throu$h out the )ro+ect& 1hich 1e *earned under the course of %ana$e%ent# In this )ro+ect %ore e%)hasi7e $i(en to the (arious too*s of sa*es )ro%otion and its i%)act on consu%ers 'uyin$ decisions# ctua**y in recent trend to so%e e;tent this techni0ue a*so 'eco%e (icti% of c*utter& e(en thou$h it can 'e e*i%inated 'y $eneratin$ inno(ati(e and %ore attracti(e too*s to *ure the custo%ers# "o1 a day %ost of the <MCG co%)anies considerin$ sa*es )ro%otion as an i%)ortant )art of their %ar5etin$ strate$y# <ro% the ana*ysis of sur(ey it 'eco%es c*ear that consu%ers do res)onse to the sa*es )ro%otion ca%)ai$n& 'ut there are custo%ers 1ho stron$*y )refer to stic5 to 'rand na%e#
AC0NO1LEDGEMENT
E(ery study re0uires a $uidance of so%eone 1ho is 1or5in$ in that fie*d# <irst*y 1e 1ou*d *i5e to than5 Director Sir Dr# D% H(' "+ R.$#% l for )ro(idin$ an o))ortunity of )re)arin$ a Grand Pro+ect Re)ort and a**o1in$ us to use the resources of the institution durin$ this )ro+ect# >e are e;tre%e*y than5fu* to our Pro+ect Guide& P%o! S+#%(! M &o) #),
P%o! B+#%2#3 Mo,( of "RIBM for their )recious $uidance re$ardin$ the
)re)aration of the Pro+ect Re)ort# Their $uidance has )ro(ed to 'e usefu* and 1ithout the%& the )re)aration of this re)ort %i$ht not ha(e 'een )ossi'*e# >e are a*so than5fu* to the other facu*ty %e%'ers of "RIBM for e;tendin$ their (a*ua'*e su))ort for this )ro+ect# >e a*so e;tend our sincere than5s to the Res)ondents& 1ho he*)ed us durin$ the course of our )ro+ect and for their $racious attitude# >e 1ou*d *i5e to ta5e this o))ortunity to e;tend our 1ar% thou$hts to those 1ho he*)ed %e in %a5in$ this )ro+ect a 1onderfu* e;)erience# 3ast 'ut not the *east? 1e 1ou*d a*so *i5e to than5 our fa%i*y for their su))ort and encoura$e%ent#
E4 *.'(3 S.&&#%5
s a )art of our study curricu*u% it is necessary to conduct a $rand )ro+ect# It )ro(ides us an o))ortunity to understand the )articu*ar to)ic in de)th and 1hich *eads to throu$h to that to)ic# My to)ic for the $rand )ro+ect is tit*ed as 8Study of consu%er oriented sa*es )ro%otion in <MCG sector: in 1hich e%)hasis $i(en to the effect of sa*es )ro%otion on 'uyin$ ha'its of consu%ers# To start 1ith 1e 1i** $i(e 'rief infor%ation re$ardin$ <MCG sector then %o(in$ to the %ain to)ic 1e 1i** e;)*ain 1hat is to)ic is a** a'out# Pro%otion is one of the )i**ars of %ar5etin$ %i; and sa%e 1ay sa*es )ro%otion is a*so one of the e*e%ents of )ro%otion# >ith res)ect to consu%er oriented sa*es )ro%otion there are certain theories narrated as o)erant conditionin$ and )ro+ecti(e theory# Based on secondary source certain theoretica* as)ects are a*so inc*uded as a )art of study# Then after concentration is $i(en to the )ri%ary research# It inc*udes the ana*ysis and resu*ts of sur(ey 1hich 1as focuses on consu%erAs 'eha(ior to1ards sa*es )ro%otion ca%)ai$n# The sur(ey 1as conducted 1ith the he*) of structured 0uestionnaire# t *ast conc*usion of re)ort& findin$s and su$$estions 1as $i(en 'ased on study of secondary source as 1e** as )ri%ary research#
INDE6
S%. No. 7. 8. 9. :. ;. <. 7. 8. =. 70. 77. 78. 79. TOPICS R " #%*+ M '+o,olo25 o! '+ "'.,5 I)'%o,.*'(o) I)'%o,.*'(o) 'o '+ 'o$(* S#l " $%o&o'(o) "'%#' 2( " S1OT A)#l5"(" D#'# A)#l5"(" o! '+ ".%3 5 F(),()2" o! '+ % $o%' R *o&& ),#'(o)" L(&('#'(o)" E& %2()2 T% )," Co)*l."(o) B(>l(o2%#$+5 A)) 4.% / ?. "'(o))#(% P#2 No. C /, !@ !D 6, C/ C6 CB CC CE CCD
RESEARCH METHODOLOG@
R " #%*+ O>- *'(3 "/ /# To study consu%er )references 1ith res)ect to sa*es )ro%otion in <MCG sector# !# To e;a%ine tradeoffs& re*ati(e i%)ortance of different attri'utes 1hi*e res)ondin$ to a sa*es )ro%otion offer# 6# To study the effect of sa*es )ro%otions in <MCG sector es)# in soa)s and deter$ent industry# @# To study consu%er 'eha(ior in )urchase of soa)s and deter$ent P%o,.*' *#' 2o%( " .), % "'.,5 DETERGENTS: TOILETERIES >ashin$ Po1der for C*othes Soa)s
S#&$l()2 D '#(l
/# Tar$et )o)u*ation: The )o)u*ation for this research study consists of the residence of h%eda'ad# !# Sa%)*in$ unit: 6# Sa%)*e si7e: In this study the sa%)*in$ unit is indi(idua* consu%er# 700 consu%ers 700 retai*ers#
@# Sa%)*in$ %ethod: The sa%)*e is se*ected 'y usin$ con(enience. sa%)*in$ %ethod#
I)'%o,.*'(o)
FMCG Co)* $' #), D !()('(o)/
The ter% <MCG Ffast %o(in$ consu%er $oodsG& a*thou$h )o)u*ar and fre0uent*y used does not ha(e a standard definition and is $enera**y used in India to refer to )roducts of e(eryday use# Conce)tua**y& ho1e(er& the ter% refers to re*ati(e*y fast %o(in$ ite%s that are used direct*y 'y the consu%er# Thus& a si$nificant $a) e;ists 'et1een the $enera* use and the conce)tua* %eanin$ of the ter% <MCG#
<urther& difficu*ties cro) u) 1hen atte%)ts to de(ise a definition for <MCG# The )ro'*e% arises 'ecause the conce)t has a retai* orientation and distin$uishes 'et1een consu%er )roducts on the 'asis of ho1 0uic5*y they %o(e at the retai*erAs she*(es# The %oot 0uestion therefore& is 1hat industry turnaround thresho*d shou*d 'e for the ite% to 0ua*ify as an <MCG# Shou*d the turnaround ha))en dai*y& 1ee5*y& or %onth*yH One of the factors on 1hich the turnaround de)ends is the )urchase cyc*e# 2o1e(er& the )urchase cyc*e for the sa%e )roduct tend to (ary across )o)u*ation se$%ents# Many *o1.inco%e househo*ds are forced to 'uy certain )roducts %ore fre0uent*y 'ecause of *ac5 of *i0uidity and stora$e s)ace 1hi*e re*ati(e*y hi$h.inco%e househo*ds 'uy the sa%e )roducts %ore infre0uent*y# Si%i*ar*y& the )urchase cyc*e a*so tends to (ary 'ecause of cu*tura* factors# Most Indians& ty)ica**y& )refer fresh food artic*es and therefore to 'uy re*ati(e*y s%a** 0uantities %ore fre0uent*y# This is in shar) contrast 1ith 1hat ha))ens in %ost 1estern countries& 1here the )ractice of 'uyin$ and soc5in$ foods for re*ati(e*y *on$er )eriod is %ore )re(a*ent# Thus& shou*d the in(entory turnaround thresho*d 'e uni(ersa*& or shou*d it a**o1 for inco%e& cu*tura* and 'eha(iora* nuancesH
Traditiona**y& sa*es Pro%otions ha(e 'een used 'y %ar5eter to increase sa*es in the short ter%# 2o1e(er& in the *ast fe1 decades this co%%unication too* has e(o*(ed and no1 is considered fro% a strate$ic )oint of (ie1# <or this reason& it is necessary to rea*i7e ne1 studies in this area and study ho1 consu%ers e(a*uate sa*es )ro%otions# Sa*es )ro%otions ha(e $ro1n in 'oth i%)ortance and fre0uency o(er the )ast fe1 decades# *thou$h an accurate esti%ate for tota* sa*es )ro%otions e;)enditures does not e;ist& 1e can 'e sure that the trend is u)# Sa*es )ro%otion ser(es three essentia* ro*es: It infor%s& )ersuades and re%inds )ros)ecti(e custo%ers a'out a co%)any and its )roducts# E(en the %ost usefu* )roduct or 'rand 1i** 'e a fai*ure if no one 5no1s that it is a(ai*a'*e# %any hands 'et1een a )roducer and consu%ers# Therefore& a )roducer has to infor% channe* %e%'ers as 1e** as u*ti%ate consu%ers a'out the attri'utes and a(ai*a'i*ity of his )roducts# The second )ur)ose of )ro%otion is )ersuasion# The cut throat co%)etition a%on$ different )roducts )uts tre%endous )ressure on their %anufacturers and they are co%)e**ed to underta5e sa*es )ro%otion acti(ities# The third )ur)ose of )ro%otion is re%indin$ consu%ers a'out )roducts a(ai*a'i*ity and its )otentia* to satisfy their needs# <ro% these e*e%ents Sa*es Pro%otion is the e*e%ent 1hich is in the focus of this )ro+ect# <urther Sa*es Pro%otion is 0uite 'road ter% it inc*udes J Co)".& % O%( )' , S#l " P%o&o'(o) T%#, O%( )' , S#l " P%o&o'(o) s 1e 5no1& channe*s of distri'ution ta5e %ore ti%e in creatin$ a1areness 'ecause a )roduct has to )ass throu$h
M#%A ' %B" ." " *o)".& % o%( )' , "#l " $%o&o'(o) 'ool" !o% '+ !olloC()2 % #"o)"/ To increase short ter% sa*es To induce tria* To reduce in(entory To esta'*ish a 'rand na%e To %a5e cross se**in$ To co)e u) 1ith co%)etition
7. Co.$o)"/
Cou)on is the o*dest and %ost 1ide*y used 1ay of sa*es )ro%otion# Cou)ons ha(e 'een used since /-DB# It is %ost*y used 'y )ac5a$ed $oods# It is 1orth1hi*e to use cou)on as a )ro%otion too* 'ecause data sho1s that %ar5et for )ac5a$ed $oods increased fro% /C 'i**ion in /DC- to 6/, 'i**ion in /DD@# To 'oost u) the sa*es not on*y %anufacturer 'ut retai*ers )ersona**y can a*so used# *eads to re$u*ar sa*es# cou)on *eads to )rice reductions so as to encoura$e )rice sensiti(e custo%ers# "on users can try a )roduct 1hich %ay
8. P%(* Do!!/
)rice.off is si%)*y a reduction in the )rice of the )roduct to increase sa*es and is (ery often used 1hen introduction a ne1 )roduct# %ar5et situation# Price.off is the %ost )referred sa*es )ro%otion techni0ue 'ecause consu%ers res)onse (ery )ositi(e*y to this sche%e# "ot on*y that 'ut it a*so cause *ar$e increase in sa*es (o*u%e# Price.off reductions are ty)ica**y offered ti$ht on the )ac5a$e throu$h s)ecia**y %ar5ed )rice )ac5s# E#$# 9rac5 Jac5 offers 6,L Price.off# reduction in )rice a*1ays increases sa*es 'ut the use of this techni0ue shou*d 'e carefu**y considered in the current
9. F% >( "
<ree'ies are a )o)u*ar for% of %odern %ar5etin$ and are so%e of the 'est thin$s a'out the internet# The definition of free'ies is )roducts or ser(ices $i(en a1ay for free at no cost to the consu%er# >e** thatAs the definition 1e ca%e u) 1ith# I a% a 'ar$ain free'ie sho))er& )retty %uch $oin$ for any free )roduct and infor%in$ e(eryone a'out it# t different ti%es& 'i$ and s%a** co%)anies often $i(e a1ay )ri7es and %oney 1hich is too $ood to 'e true# Often itAs in the )ursuit of %ore custo%ers or a *ar$er fan 'ase and it often 1or5s#
:. S*%#'*+ C#%,"
scratch card Fa*so ca**ed a scratch off& scratch tic5et& scratcher& scratchie& scratch.it& scratch $a%e& scratch.and.1in or instant $a%eG is a s%a** to5en& usua**y %ade of card'oard& 1here one or %ore areas contain concea*ed infor%ation: they are co(ered 'y a su'stance that cannot 'e seen throu$h& 'ut can 'e scratched off#
Product 'und*in$ is a %ar5etin$ strate$y that in(o*(es offerin$ se(era* )roducts for sa*e as one co%'ined )roduct# This strate$y is (ery co%%on in the soft1are 'usiness Ffor e;a%)*e: 'und*e a 1ord )rocessor& a s)readsheet& and a data'ase into a sin$*e office suiteG& in the ca'*e te*e(ision industry Ffor e;a%)*e& 'asic ca'*e in the United States $enera**y offers %any channe*s at one )riceG& and in the fast food industry in 1hich %u*ti)*e ite%s are co%'ined into a co%)*ete %ea*# 'und*e of )roducts is so%eti%es referred to as a )ac5a$e dea* or a co%)i*ation or an antho*o$y#
7. T#%2 ' M#%A '/ >hi*e doin$ sa*es )ro%otion& %ar5eter %ust 5no1 1ho their tar$et %ar5et is? other1ise there is no use of a** effort 'ecause it *eads to no 1here# tar$et %ar5et can 'e in any of the sta$es of 'uyin$ hierarchy i#e# a1areness& 5no1*ed$e& *i5in$& )references& con(iction and )urchase# Each sta$e defines a )ossi'*e $oa* of )ro%otion# 8. N#'.% o! '+ $%o,.*'/ There are (arious )roduct attri'utes 1hich inf*uence sa*es )ro%otiona* strate$y# >hen the unit )rice is *o1 the %anufacturer as 1e** as the custo%er has *o1 ris5 'ut he can $et the 'enefit of %ass %ar5etin$# Therefore& %ass %ar5etin$ re0uires %ass sa*es G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, /E
)ro%otion sche%es# Sa*es )ro%otion sche%e differ for )roducts *i5e its dura'i*ity& )erisha'*e $oods etc# 9. S'#2 o! $%o,.*' L(! C5*l / Sa*es )ro%otion strate$ies are inf*uenced 'y the *ife cyc*e of a )roduct# >hen a ne1 )roduct introduced& )ros)ecti(e 'uyers %ust 'e infor%ed a'out its e;istence and its 'enefits and %idd*e%en %ust 'e con(inced to stoc5 it# 3ater& if a )roduct 'eco%es successfu*& co%)etition intensifies and %ore e%)hasis is )*aced on sa*es )ro%otion to increase its sa*es# :. B.,2 ' A3#(l#>l !o% P%o&o'(o)/ The funds a(ai*a'*e for )ro%otion are the u*ti%ate deter%inant of the )ro%otiona* )ro$ra%%e# 'usiness 1ith a%)*e funds can %a5e %ore effecti(e use of sa*es )ro%otion )ro$ra%%e than a fir% 1ith *i%ited financia* resources# The 'ud$et for sa*es )ro%otion can 'e )re)ared 'y the fo**o1in$ %ethodsJ Percenta$e of Sa*es <i;ed funds a(ai*a'*e for sa*es )ro%otion <o**o1in$ the co%)etition& and Bud$etin$ 'y o'+ecti(e#
)erce)tions# It is found that so%e custo%er stron$*y )referred to 'uy their re$u*ar 'rand and said that sa*es )ro%otion 1ou*d not 1ea5en their *oya*ty to1ards the 'rand# P %* $'(o)" % 2#%,()2 .), %l5()2 *o&$#)5 &o'(3#'(o)" On ta))in$ )erce)tionsA re$ardin$ under*yin$ co%)any %oti(ations for sa*es )ro%otion& 8to increase sa*es: 1as ran5ed hi$hest fo**o1ed 'y 8to attract s1itchers: and 8to se** e;cess stoc5s:# >hi*e )ro(idin$ (a*ue to custo%ers: and 8To reinforce co%)any i%a$e: 1ere ran5ed *o1est# This indicates that consu%ers 'e*ie(ed that co%)anies 1ere underta5in$ such acti(ities on*y for their o1n 'enefit and not for the 'enefit of consu%ers# <indin$s fro% retai*er and consu%er )erce)tion studies& it is e(ident that there 1as a %atchin$ of )erce)tions re$ardin$ nature of sche%e F)rice offs as %ost )referred ty)e of sche%e %entioned 'y consu%ers and retai*ersA )erce)tions a'out consu%er )referencesG# Since retai*ers o'ser(e consu%ers in store 'eha(ior 1ere fre0uent*y and direct*y& their )erce)tions re$ardin$ )ro(idin$ consu%er 'eha(ior are *i5e*y to 'e accurate# Such in)uts fro% the retai*ers 1ou*d 'e usefu* to co%)anies# The retai*ers had the )erce)tion that those sche%es 1hich 1ere announced throu$h %ass %edia had 'etter res)onse# This 1as reinforced 'y the consu%er sur(ey 1hich sho1ed that reca** in case of hea(i*y )ro%oted sche%es on T= 1as found to 'e (ery hi$h# Retai*ersA )rediction of co%)aniesA %oti(ation for offerin$ sa*es )ro%otion 1ere %atchin$ 1ith the consu%er )erce)tion re$ardin$ the sa%e# Thus 'oth (ie1ed that co%)anies 1ere usin$ sa*es )ro%otion acti(ities %ain*y to increase short ter% sa*es or encoura$e s1itchin$ or se**in$ e;cess stoc5 and not rea**y to $i(e (a*ue 'enefit or enhance4reinforce 'rand4co%)any i%a$e#
Retai*er had re*ati(e*y (ery *o1 inf*uence in affectin$ choice# It cou*d 'e inferred that (isi'i*ity and a1areness a'out the sche%e 1ere the critica* success factors so that )u** cou*d 'e created#
P %* $'(o)" #>o.' R "$o)" 'o S#l " P%o&o'(o) O!! %" They 'e*ie(ed that youn$er a$e.$rou)s 1ere %ore e;)eri%enta* in nature& a%ena'*e to tryin$ ne1 'rands& and sou$ht4*oo5ed for or as5ed 1hether there 1ere anyG sa*es )ro%otion sche%es runnin$ on any toi*et soa) at the ti%e of )urchase# P %* $'(o)" #>o.' Co&&.)(*#'(o)" o! S#l " P%o&o'(o) S*+ & " Retai*ers )ercei(ed that ro*e of 1ord of %outh and te*e(ision ad(ertisin$ )*ayed an i%)ortant )art in )ro(idin$ infor%ation in)uts to consu%ers re$ardin$ sa*es )ro%otion acti(ities# V#%(#'(o)" () I)!o%&#'(o) FloC S%a**er Fnon.su)er%ar5et& s%a** for%at storeG retai*ers recei(ed re*ati(e*y *ess su))ort co%)ared to su)er%ar5ets in ter%s of ser(icin$& %ar$ins& infor%ation a'out sa*es )ro%otion acti(ities fro% the dea*ers# Many a ti%es s%a** retai*ers 1ere on*y infor%ed (er'a**y a'out sa*es )ro%otion sche%es 'y the dea*er sa*es%en durin$ the schedu*ed 1ee5*y (isits# D #l %DR '#(l % D5)#&(*" t the ti%e of sa*es )ro%otion acti(ities& dea*ers had tendency to )ush un1anted stoc5s onto the s%a**er retai*ers# In fact these retai*ers )referred to stoc5 (ariety of 'rands and 1anted )ay%ent for she*f and 1indo1 dis)*ay to increase traffic into their G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !!
store# 2o1e(er& su)er%ar5ets and 'i$ retai*ers 1ere )a%)ered and $i(en s)ecia* ser(ices and $i(en 'etter %ar$ins and 'etter a**o1ances#
M#%2()" It 1as found that in sa*es )ro%otion sche%es %ar$ins (aried fro% C to/BL de)endin$ of the si7e of the retai* out*et& 'ar$ainin$ )o1er of a retai*er& 0uantity ordered 'y hi% etc# Most*y %ar$ins 1ere *in5ed to si7e of the (o*u%es that 1ere ordered# P %* $'(o)" #>o.' ' %&" #), *o),('(o)" Retai*ers 1ere not found to 'e ha))y 1ith sa*es )ro%otion sche%es 1here their %ar$ins 1ere cut on the )rete;t of +ust fast %o(e%ent of in(entory of the 'rand 'ein$ )ro%oted# *so if additiona* incenti(e 1as offered it 1as su'+ect to %ini%u% )erfor%ance re0uire%ent# N#'.% o! POP Retai*ers indicated that %ost of the POP FPoint of PurchaseG %ateria*s 1ere %eant for 'rand ad(ertise%ent and not for $i(in$ infor%ation re$ardin$ the sche%es# Thus it cou*d 'e inferred that co%)anyAs fo**o1 u) 1as not ade0uate# S %3(*()2 ,.%()2 ,.%#'(o) o! S*+ & In stoc5.out situation durin$ the runnin$ of the sa*es )ro%otion sche%es& s%a**er retai*ers had to 1ait for re)*enish%ent of stoc5s ti** the ne;t schedu*ed 1ee5*y (isit 'y the dea*er sa*es%an 'ut 'i$ retai*ers 1ere ser(iced on te*e)honic re0uest for re)*enish%ent of stoc5s# This c*ear*y indicated the dis)arity in treat%ent# P%o>l & o! l !'Do3 % *efto(er stoc5 at the end of any sche%e 1as re0uired to 'e so*d 'y the retai*ers 'efore they ordered fresh stoc5s# In case of 'onus )ac5s sche%e& *efto(er stoc5 1as often dis%ant*ed Fcut o)en 'uy one $et one freeG and so*d the% indi(idua**y as a re$u*ar G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !@
soa)# This a))roach of the co%)any *eads to %isa))ro)riation 1hich in turn cou*d resu*t in ad(erse 'rand i%a$e# G(!'" !o% R '#(l % &o'(3#'(o) Co%)anies at ti%es 1ere re1ardin$ retai*ers 'y $i(in$ free $ifts *i5e ther%os f*as5s or c*oc5s if they so*d %ore than certain 0uantity in a $i(en )eriod# Co%)anies 1ere %a5in$ a ha*f.hearted effort to %oti(ate retai*ers# P %* $'(o)" #>o.' &#"" & ,(# #))o.)* & )'" Retai*ers (ie1ed that 1hene(er sa*es )ro%otion sche%e 1as announced on T=& it created )u** and they 1ere %ore than 1i**in$ to stoc5 such 'rands# <or e;a%)*e Medi%i; and Detto* contest 1as not ad(ertised on T=& hence there 1as (ery *itt*e a1areness *eadin$ to unso*d stoc5 ti** C %onths# >hi*e 3u; Go*d Star 1hich 1as hea(i*y )ro%oted on T#=# is reca**ed e(en today# Po"' P%o&o'(o) B +#3(o% Retai*ers o'ser(ed that in %ost cases sa*es )ro%otion sche%e on a 'rand %i$ht encoura$e a 'uyer to s1itch a 'rand te%)orari*y 'ut he 1ou*d re(ert 'ac5 to ori$ina* 'rand after )ro%otion# H#),l()2 P%o>l &" Many a ti%eAs retai*ers had to hand*e (arious sa*es )ro%otion offers si%u*taneous*y in a cate$ory and a*so across cate$ories and there 1as no for%a* co%%unication )*annin$ either fro% the dea*er or the co%)any# Re%e%'erin$ each offer and hand*in$ 1as a )ro'*e% es)ecia**y for a s%a** retai*er 1hich 1as often an as one.%an sho1#
1+5 ,o S#l " $%o&o'(o) "*+ & " #!! *' "#l "E
There are three %echanis%s 'ehind these facts# It is Purchase 0uantity& Brand s1itchin$ and Cate$ory e;)ansion# F(%"'F consu%er can increase the 0uantity they 'uy +ust 'ecause the )roduct is on sa*e# S *o),F consu%ers are inducin$ to )urchase another 'rand different fro% the one they 1ou*d ha(e )urchased 1hen there is no )ro%otiona* incenti(e# F()#ll5F consu%erAs tota* consu%)tion of the )roduct cate$ory is increased 'y the )ro%otion# 2o1e(er& in the *on$ ter% this )ositi(e effect %ay 'e di*uted 'ecause a )ro%otiona* ca%)ai$n has no )er%anent effect in the sa*es of the fir%
Consu%er attitudes and 'uyin$ )atterns Your 'rand strate$y Your co%)etiti(e strate$y Your ad(ertisin$ strate$y Other e;terna* factors that can inf*uence )roducts a(ai*a'i*ity and )ricin$# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !E
T+ % #% '+%
Nco%'inationA sa*es )ro%otion strate$y is +ust that? it is a co%'ination of a )ush and a )u** strate$y# It focuses 'oth on the distri'utor as 1e** as the consu%ers& tar$etin$ 'oth )arties direct*y# It offers consu%er incenti(es side 'y side 1ith dea*er discounts#
S#l " P%o&o'(o) l #," 'o $.%*+#" #** l %#'(o)G"'o*A$(l()2 !! *'"/ In res)onse to a )ro%otion& consu%ers %ay 'uy %ore 0uantity of the )roduct cate$ory or 'uy at an ear*ier ti%e than usua* F)urchase acce*eration effectG# If consu%ers 'uy e;tra 0uantity durin$ a )ro%otion or ear*ier than nor%a*& then they are not in the %ar5et to 'uy )roducts once the )ro%otion is o(er# Thus )urchase acce*eration is de%onstrated throu$h *en$thenin$ of inter )urchase ti%es after a )ro%otion# Purchase acce*eration 1as %ore *i5e*y to 'e e;hi'ited in increased )urchase 0uantity than in shortened inter )urchase ti%es# Resu*ts sho1ed that consu%ers %ost*y %ade u) for the *ar$e 0uantity )urchased 'y 1aitin$ *on$er unti* )urchasin$ a$ain# Resu*ts indicated that hea(y users tended to acce*erate )urchases %ore than *i$ht users# There 1as ne$*i$i'*e difference in the acce*eration )ro)ensities of hi$h (ersus *o1 inco%e $rou)s# S#l " P%o&o'(o) l #," 'o $%(&#%5 , &#), 4$#)"(o) !o% # *#' 2o%5/ >hi*e it 1as traditiona**y assu%ed that consu%)tion rates re%ain fi;ed durin$ and after a )ro%otion& 'ut fro% this )ro+ect I ca%e to 5no1 that )ro%otions a*so ha(e a )ri%ary de%and e;)ansion effect# >hen a )ri%ary de%and e;)ansion occurs& )ro%otion induced increase in )urchase 0uantities does not si$nificant*y e;tend the ti%e ti** the ne;t )urchase in the cate$ory occurs& thus indicatin$ that there has 'een an increase in consu%)tion )ro%otions induced consu%ers to 'uy %ore and consu%e faster# It is found that )ro%otion induced in(entory te%)orari*y increased consu%)tion rates 1ithin the cate$ory e#$# in cate$ories such as 'acon& sa*ted snac5s& soft drin5s and yo$urt e;hi'ited )ri%ary de%and e;)ansions as a resu*t of )ro%otion 1hi*e 'athroo% tissue& coffee& deter$ent and )a)er to1e*s e;hi'ited stoc5)i*in$ on*y# S#l " P%o&o'(o)" #!! *' "#l " () *o&$l & )'#%5 #), *o&$ '('(3 *#' 2o%( "/ <ro% this )ro+ect it is found that )ro%otion not on*y increases sa*es of %ain )roduct 'ut it a*so *ead to increase in sa*es of co%)*e%entary cate$ories# <ound stron$ cross re*ationshi)s 'et1een )roducts of the )ro%oted )roduct cate$ory indicatin$ 'rand su'stitution 'eha(ior# They stated that retai* )rice )ro%otions 1or5 as a for% of i%)*icit )rice 'und*in$ 1here'y the consu%er sur)*us is transferred fro% the )ro%oted ite% to non )ro%oted ite%s# *so found that retai* )rice )ro%otions create si$nificant co%)*e%entary and su'stitution effects 1ithin the store# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6/
>e**.esta'*ished distri'ution net1or5 e;tendin$ to rura* areas# Stron$ 'rands in the <MCG sector# 3o1 cost o)erations#
Weaknesses:
3o1 e;)ort *e(e*s# S%a**.sca*e sector reser(ations *i%it a'i*ity to in(est in techno*o$y and achie(e econo%ies of sca*e# Se(era* P%e.tooAA )roducts#
Opportunities:
3ar$e do%estic %ar5et# E;)ort )otentia*# Increasin$ inco%e *e(e*s 1i** resu*t in faster re(enue $ro1th##
Threats:
D T
" 3YSIS
Co)".& %"
B#'+()2 "o#$"
50 40 30 20 10 0 Respondents Lux 41 Hamam 3 Lifebuoy 14 Nima 8 Others 34
Rol o! "#l " $%o&o'(o)" () FMCG " *'o% D ' %2 )' $oC, % "ir%a su)er >hee* Surf rie* Others R "$o), )'" /D /@ 6B //@
?8. Do 5o. #lC#5" >.5 '+ "#& >%#), o! So#$ G D ' %2 )'E
P#%'(*.l#%" Yes "o R "$o), )'" BC @@
B%#), lo5#l
$0 50 40 30 20 10 0 Respondents %es 5$ No 44
I)' %$% '#'(o)/ The o'+ecti(e 'ehind the for%ation of this 0uestion is to 5no1 the *e(e* of 'rand *oya*ty of the consu%ers to1ards the 'rands of soa)s a(ai*a'*e in the %ar5et# The a'o(e fi$ure sho1s that on BCL of the res)ondents are *oya* to their 'rands of deter$ent4soa)# <MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is 'ecause of %any reasons#
?9. 1+(*+ !#*'o%" ,o 5o. )o%&#ll5 *o)"(, % C+(l $#%'(*.l#% >%#), o! So#$ G D ' %2 )'"E
F#*'o%" <ra$rance Kua*ity Co%)any i%a$e Price Pac5a$in$ Others B#'+()2 "o#$ /D 66 /C !6 C 6 D '.$oC, % /6C /6 /D // 6
$.%*+#"()2 #
/ri,e 23 19
/a,0a'in' $ 11
Others 3 3
?:. Do 5o. *o)"(, % $%o&o'(o)#l "*+ & " C+(l $#%'(*.l#% >%#), o! So#$ G D ' %2 )'E
P#%'(*.l#%" Yes "o R "$o), )'" E!!
$.%*+#"()2 #
H0/ P%o&o'(o)#l "*+ & " +#3 # "(2)(!(*#)' !! *' o) '+ $.%*+#" o! >%#),. H7/ P%o&o'(o)#l "*+ & " ,o )o' +#3 #) !! *' o) '+ $.%*+#" o! >%#),.
?;. 1+(*+ o! '+ !olloC()2 $%o&o'(o)#l "*+ & " 5o. +#3 *o& #*%o"" "o !#%E
P%o&o'(o)#l "*+ & " Cou)ons )rice off <ree'ies scratch cards *uc5y dra1 Bund*in$ e;tra 0ty# R "$o), )'" /, !/! D /6 !,
!u,0y dra*
&und!in'
extra 2ty) 20
/,
/!
/6
?<. 1+(*+ & ,(.& ,o 5o. ! l (" ".('#>l 'o $%o&o' '+ 3#%(o." $%o&o'(o)#l "*+ & "E
So.%* Radio T= "e1s)a)er 2oardin$ Others R "$o), )'" // @6 /D /B /!
Radio 11
34 43
Ne*s)ppr 19
Hoardin' 15
Others 12
?7. I" '+ % #)5 4("'()2 "*+ & o) '+ So#$ G D ' %2 )' 5o. #% *.%% )'l5 ."()2E
P#%'(*.l#%" Yes "o R "$o), )'" B@!
I)' %$% '#'(o)/ The ans1er of the res)ondents $i(e idea a'out the a1areness of the )ro%otiona* sche%es offered in the %ar5et on their e;istin$ soa)s and deter$ents# In this situation %ore then @,L of the )eo)*e are not a1are or ha(in$ (a$ue idea a'out the )ro%otiona* sche%es runnin$ into the %ar5et# It sho1s that )eo)*e are not %uch a1are of the sche%es 1hich continue in the %ar5et it %ay 'e 'ecause of the )resent stoc5 of the )roduct at their )*ace# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @@
The resu*t sho1s that /Q/ or !Q/ or other free sche%es are %ore de%anded and %ore a1are sche%es in the %ar5et# So %anufacturers %ay $o for the sa%e at the ti%e of *aunchin$ their )roduct#
?=. I! 5o. 2 ' #) #''%#*'(3 $%o&o'(o)#l o!! % () '+ $%o,.*' o'+ % '+ ) o! 5o.% *+o(* C(ll 5o. "C('*+ o3 %E
P#%'(*.l#%" Yes "o R "$o), )'" E6 !E
'etter )ro%otiona* sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q 0ua*ity# Co%'ination of a** these sche%es 1i** run 'etter in the %ar5et#
R #"o)
40 30 20 10 0 .ost52ty Respondents 1$ -ua!ity 11 Satisfaction &rand !oya! 2 5
7ore &enefit6bud 22
"eason ,han'e 2
No ans*er 3$
'o(e 0uestion it $i(es s)ecific reasons for s1itchin$ too other )roducts# It sho1s that e;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other factors inf*uence consu%ers to s1itch o(er too other 'rands#
?77. G(3 ".22 "'(o)" #>o.' !.'.%("'(* $%o&o'(o)#l "*+ & "E
This sho1 the consu%ersA future e;)ectations fro% the 1hether co%)any to co%e 1ith ne1 sche%es or continue 1ith )resent one# It sho1s consu%ers de%and 1hich the %anufacturers ha(e to %eet#
R '#(l %"
?8. N#& '+ So#$ G D ' %2 )' (Co&$#)5) 5o. "'o*A !o%.
Co&$#)( " "ir%a 2U3 PRG Godre+ Others R "$o), )'" DC /,, D, D@ C-
?9. R#)A '+ !olloC()2 !#*'o%" '+#' *."'o& %" looA !o% () '+ $.%*+#" o! So#$ G D ' %2 )'. (R#)A !%o& 7 'o <)
<actors <ra$rance Kua*ity Co%)any I%a$e Price Pac5a$in$ Others / 6 CC D /E @ / ! !@ !6 /!B ! 6 66 E 6@ !@ ! , @ !! 6 !@ /C !E B /, / // C 66@ C , @ D !@ BB
B#'+()2 So#$
10 $0 50 40 30 20 10 0 +ra'ran,e -ua!ity .ompany =ma'e /ri,e /a,0a'in' Others 1 3 $$ 9 11 4 1 2 24 23 18 28 5 2 3 33 1 34 24 2 0 4 22 3 24 1$ 21 8 5 10 1 11 $ 38 34 $ 8 0 4 9 24 55
I)' %$% '#'(o)/ It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and a*so the 1ei$ht a$e of that factor o(er other factors# In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand )eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B@
re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are not inf*uencin$ factor as )er the res)ondents#
F#*'o%"
F%#2%#)* ?.#l('5 Co&$#)5 I P%(* P#*A#2()2 O'+ %"
7
// @6 /6 !E C ,
2 11 34 /C 28 5 0
3 41 1$ !E 14 2 0
4 21 $ !C 9 33 5
5 1 1 // $ 43 32
6 3 0 E 1$ 11 $3
D ' %2 )'
10 $0 50 40 30 20 10 0 +ra'ran,e -ua!ity .ompany =ma'e /ri,e /a,0a'in' Others 1 11 43 13 21 $ 0 2 11 34 1$ 28 5 0 3 41 1$ 21 14 2 0 4 21 $ 2$ 9 33 5 5 1 1 11 $ 43 32 $ 3 0 1 1$ 11 $3
In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand )eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are a*so )*ay i%)ortant ro*e for )urchasin$ deter$ent )o1der#
?:. Do 5o. ".22 "' *."'o& %" 'o $.%*+#" # * %'#() >%#),E
P#%'(*.l#% Yes "o R "$o), )'" 66 CE
S.22 "'(o)
80 10 $0 50 40 30 20 10 0 "eries1 %es 33 No $1
I! 5 "
80 10 $0 50 40 30 20 10 0 Respondents Hi'h mar'in 9 -ua!ity 11 Re!ationship 1 No reason $1
?<. Do *."'o& %" looA !o% 3#%(o." "*+ & " () '+ $%o,.*'E
P#%'(*.l#% Yes "o R "$o), )'" D! -
// -! 6B ! /D CB ED
The a'o(e stated resu*ts sho1 the de%and of (arious ty)es of )ro%otiona* sche%es in the %ar5et 'y the consu%ers# *%ost a** ty)es of sche%es are 'ein$ de%anded 'y the consu%ers in the %ar5et 'ut there are three %a+or sche%es 1hich consu%ers $enera**y *oo5 at the ti%e of )urchase or 'efore that# Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the consu%ers o(er others sche%es#
H0/ E!! *' o! '%#, $%o&o'(o)" !o% #ll !o.% >%#)," (" "(&(l#%. H7/ E!! *' o! '%#, $%o&o'(o)" !o% #ll !o.% >%#)," (" )o' "(&(l#%.
<ro% the a'o(e $ra)h sho1s the trade )ro%otions offered 'y the "IRM 3td to the retai*ers to attract the% to1ards stoc5in$ their $oods and a*so sto) the% s1itchin$ the% too other %a+or )*ayers in the %ar5et# "IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it %ay differ in the ti%e *i%it of the credit# It is a*so )ro(idin$ e;tra %ar$in& and units 1ith occasiona* $ift 1ith their sche%es#
HUL
P%o&o'(o)" E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R "$o), )'" @E 6@ B!B !!
PIG
P%o&o'(o)" E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R "$o), )'" @, 66 BB !, /!
I)' %$% '#'(o)/ PRG is a*so a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the faci*ities 1hich others are )ro(idin$ to retai*ers#
GODREJ
P%o&o'(o)" E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R "$o), )'" @C 6! BE /D /-
T%#, P%o&o'(o)" >5 Go,% $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 4$ >xtra 9nits 32 .redit fa,i!ity 51 ;ifts 19 /romo) >xp) 18
OTHERS
P%o&o'(o)" E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R "$o), )'" 6, /6/B E
GODREJ Extra Margin Extra Units Credit facility Gifts Pr ! " Ex#" 46 32 57 19 18 34.4
NIRMA 46 34 55 24 8 33.4
HUL 47 34 58 25 22 37.2
P&G 40 33 55 20 12 32
Anova: Single a!"o# SUMMAR$ Grou)s Co*u%n / Co*u%n ! Co*u%n 6 Co*u%n @ ANOVA Source =ariation Bet1een Grou)s >ithin Grou)s Tota* of SS E!#BB @BE6#! @C@B#E B
** the 'i$ )*ayers )ro(ide )ro%otion to the retai*ers due to cut throat co%)etition? Inter)retation: fro% the one factor ano(a ana*ysis& it is c*ear*y seen that there is a effect of trade )ro%otion on (arious 'rands and are si%i*ar too# s )M ,#,B& it is the e(idence that the nu** hy)othesis is acce)ted
Count B B B B
df 6 /C /D
MS !@#/-66 6 !-B#-!B
< ,#,-@C, D
P.(a*ue ,#DCE@B E
?= G(3 % #"o)" !o% )o' "'o*A()2 # $#%'(*.l#% >%#),. Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition#
?70 A)5 S.22 "'(o)". Retai*er su$$ested that )ac5a$in$ shou*d 'e further i%)ro(ed and used as )ro%otiona* too*& to encoura$e sa*es durin$ certain )eriods the co%)any shou*d )ro(ide )riceoff or e;tra 0uantity 'ecause that inf*uences direct*y to the consu%er#
Consu%er re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any Retai*ers are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona* re*ation or that custo%er are 'rand *oya* Mar$in and of 'etter re*ations 1ith consu%ers and too )ro(ide 0ua*ity )roduct to consu%ers they su$$est consu%ers too 'ye )articu*ar 'rand# Custo%ers are *oo5in$ for any ty)e of the )ro%otions on the )roduct 'efore the% $oin$ to )urchase# Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the consu%ers o(er others sche%es# "IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it %ay differ in the ti%e *i%it of the credit# 2U3 attracts %ore consu%ers throu$h such )ro%otions& such as dis)*ay of the )roduct& 'anners etc#
R *o&& ),#'(o)/
The findin$s of the e%)irica* study indicate that un*ess the 'rand to 'e )ro%oted is in the consideration set of the consu%er& sa*es )ro%otion 'y itse*f is un*i5e*y to ha(e any %a+or i%)act# C*ear*y this sho1s that %ana$ers need to in(est into 'rand 'ui*din$ e;ercise so that his4her 'rand a))ears in the consideration set of the tar$et consu%ers# On*y after this shou*d he s)end ti%e& %oney and ener$y on sa*es )ro%otion acti(ities# Sa*es )ro%otion shou*d not 'e used in iso*ation 'ut need to 'e inte$rated 1ith other too*s and in *ine 1ith the o(era** )ositionin$ of the 'rand# the ro*e of %ass %edia ca%e out c*ear*y in the study# Co%)anies need to create sufficient a1areness a'out sa*es )ro%otion sche%es throu$h %ass %edia in order to create a1areness# <MCG )roducts are *o1 in(o*(e%ent )roducts characteri7ed 'y s1itchin$ 'eha(ior# *so the )erson $oin$ to the sho) for the )urchase of soa) is the fina* decision %a5er of the 'rand# 2ence it is essentia* that co%)anies need to desi$n attracti(e& stri5in$& (isi'*e POPs for sche%e announce%ents# >ith res)ect to nature of sche%e& the findin$ su$$ested that )re%iu% Ffree $iftG 1as )o)u*ar 1ith co%)anies# >hi*e 'oth retai*ers and consu%ers )referred )rice offs# So it is necessary that the )ercei(ed (a*ue of a free $ift has to 'e a))ea*in$ and hi$h for the tar$et consu%ers# Re)etiti(e use of the sa%e )re%iu% for a )ro*on$ed )eriod %ay ha(e ne$ati(e effect on the *oya* custo%ers# >hen the co%)any is $i(in$ its o1n )roduct free as )re%iu%& it needs to ensure the 0ua*ity of the )roduct fro% it as it is *i5e*y to +eo)ardi7e the i%a$e of 'oth its )roducts# The findin$s e;hi'ited that 'oth the retai*ers and consu%ers )ercei(ed that sa*es )ro%otion acti(ities carried out 'y the co%)anies for increasin$ sa*es in short ter% and c*earin$ e;cess stoc5s# >hat it i%)*ies is that co%)anies need to use sa*es )ro%otion G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, E/ *so the i%)ortance of
syner$istica**y and co%%unicate so that they )ro(ide (a*ue to the tar$et audience and enhance 'rand 0ua*ity4i%a$e )erce)tions# Co%)anies need to syste%ati7e infor%ation f*o1 re$ardin$ sa*es )ro%otion acti(ities )articu*ar*y at dea*er and retai*er *e(e*# Ensurin$ )ro)er infor%ation f*o1 and de(isin$ chec5s and %easures to reduce %isa))ro)riations and i%)*e%entation f*o1s shou*d 'e considered critica* as)ects for the success of sa*es )ro%otion acti(ities 'y the co%)anies# %ar5et# <ro% the study it 1as found that s%a**er retai*ers fe*t ne$*ected and not enthused to i%)*e%ent the sche%es& )articu*ar*y 1hen additiona* hand*in$& stoc5in$& accountin$ 1as re0uired on the )art of a retai*er 1ithout co%)ensatory %ar$ins# It can 'e seen that the retai*er and consu%er )erce)tions %atched 1ith res)ect to )references of sche%es& under*yin$ %oti(ations and ro*e of %ass %edia# This i%)*ies that the retai*er 1ou*d 'e a rich source of infor%ation a'out the consu%er and the *i5e*y res)onse to sa*es )ro%otion acti(ities# De(e*o)in$ a syste% to ta) such res)onses fro% ti%e to ti%e 'oth at retai*er and consu%er *e(e* 1ou*d 'e he*)fu* for )*annin$ future sa*es )ro%otion acti(ities# In order to 'ui*d trust and co%%it%ent co%)anies shou*d ta) )references& )erce)tions of retai*ers as 1e** as consu%ers# s retai*in$ is fra$%ented& direct reach 'y co%)anies is ne;t to i%)ossi'*e# Throu$h dea*ers and )ro)er feed'ac5 %echanis%& co%)anies 5ee) in touch 1ith the
Due to this& our sa%)*e si7e is on*y /,,& 1hich is not (ery *ar$e#
** the res)ondents cou*d not fi** their 0uestionnaire on their o1n due to *an$ua$e )ro'*e% and a*so )ro'*e% of ti%e and *ac5 of )ositi(e 'eha(ior#
Res)ondent %ay $i(e 'iased ans1er due to so%e *ac5 of infor%ation a'out other 'rands#
<indin$s of the study are 'ased on the assu%)tion that the res)ondents ha(e $i(en correct infor%ation#
The study ref*ects that the use of sa*es )ro%otion undenia'*y has increased o(er the years in India# <uture ho*ds *ot of )ro%ise for such sche%es across 1ider ran$e of )roduct.%ar5ets# Sa*es Pro%otion has ceased to 'e %a+or differentiator at *east in the %etros& 1ith a*%ost a** co%)anies offerin$ si%i*ar free'ies and $ifts# s a resu*t no1 %ar5eters ha(e to find out so%e inno(ati(e 1ays of sa*es )ro%otion to differentiate fro% co%)etitors# Current*y Price off and Bye one $et one free offers are (ery effecti(e to attract the consu%ers to1ards the )roducts# >e ha(e noted that these 5ind of )ro%otiona* too*s are usefu* for short ter% increase in sa*es and to induce first tria*# These ty)es of )ro%otiona* sche%es shou*d 'e consistent and chan$ed fro% ti%e to ti%e de)endin$ u)on season and co%)etitorAs sche%es# >ith the Increasin$ nu%'er of su)er%ar5et& the 'randed )ac5a$ed $oods 1or5 as si*ent sa*es )erson# So in such stores& sa*es )ro%otion )*ays a %ore effecti(e ro*e in sti%u*atin$ consu%ersA de%ands# One of the (ery i%)ortant facts 1e ca%e to 5no1 fro% this )ro+ect is that sa*e of $oods 1hich contain *ar$e 0uantity and ha(in$ 'i$ )ac5a$in$ e#$# deter$ent are sta$natin$ 'ecause consu%er )refer to 'uy s%a** )ac5 $oods& the reasons are: s%a** )ac5 $oods reduce ris5 of 'ad 0ua*ity& It had *o1 cost or say )rice& and *ast 'ut i%)ortant factor i#e# %enta*ity to )urchase +ust to try first# Sa*es of s%a** )ac5 $oods are 0uite hi$h& G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, EB
'ut fro% the co%)anyAs )oint of (ie1 s%a** )ac5 $oods is *ess )rofita'*e co%)are to *ar$e )ac5 $oods# So here %ar5eter tries to increase sa*es of *ar$e )ac5 $oods 'y usin$ sa*es )ro%otion tactics *i5e )rice off and )ercenta$e e;tra#
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Phi*i) 9ot*er& 8Mar5etin$ Mana$e%ent:& //th edition& Pearson education sia Pu'*ication# C#R#9othari& 8Research Methodo*o$y %ethods R techni0ues:&"e1 $e Internationa*F)G*td#)u'*ishers&!nd edition#
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A)) 4.%
K/# >hich 'rand of Soa) 4 Deter$ent do you useH Bathin$ Osoa)s Res)ondent Deter$ent )o1der 3u; "ir%a su))er 2a%a% >hee* 3ife'uoy Surf "ir%a rie* Others Others
Res)ondent
K!# Do you a*1ays 'uy the sa%e 'rand of Soa) 4 Deter$entH Particu*ars Res)ondent Yes "o K6# >hich factors do you nor%a**y consider 1hi*e )urchasin$ a )articu*ar 'rand of Soa) 4 Deter$entsH Bathin$ <actors soa) Det#)o1der <ra$rance Kua*ity Co%)any i%a$e Price Pac5a$in$ Others K@# Do you consider )ro%otiona* sche%es 1hi*e )urchasin$ a )articu*ar 'rand of Soa) 4 Deter$entH Particu*ars Res)ondent Yes "o KB# >hich of the fo**o1in$ )ro%otiona* sche%es you ha(e co%e across so farH G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, E-
Pro%otiona* sche%es Res)ondent Cou)ons )rice off <ree'ies scratch cards *uc5y dra1 Bund*in$ e;tra 0ty# KC# >hich %ediu% do you fee* is suita'*e to )ro%ote the (arious )ro%otiona* sche%esH Source Radio T= "e1s)a)er 2oardin$ Others Res)ondent
KE# Is there any e;istin$ sche%e on the Soa) 4 Deter$ent you are current*y usin$H Particu*ars Yes "o K-# If yes& )*ease s)ecifyH Particu*ars 6Q/4Other <ree Discount "o idea "o ans1er Res)ondent Res)ondent
KD# If you $et an attracti(e )ro%otiona* offer in the )roduct other than of your choice 1i** you s1itch o(erH Particu*ars Yes "o K/,# Gi(e reason for the sa%eH Particu*ars Res)ondent CostQ0ty G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, ED Res)ondent
Kua*ity Satisfaction Brand *oya* More 'enefit4'ud$et Season chan$e "o ans1er K//# Gi(e su$$estions a'out futuristic )ro%otiona* sche%es#
Retai*ers
>e are students of MB studyin$ in G3S "RIBM 2MED B D and carryin$ out a sur(ey for our acade%ic )ro+ect 8Ro*e of sa*es )ro%otions in <MCG:# So )*ease fi** this 0uestionnaire# Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for acade%ic )ur)ose#
K/# Since ho1 *on$ are you in this 'usinessH Particu*ars /.B Years B./, Years More than /, years
Res)ondent
K!# "a%e the Soa) 4 Deter$ent FCo%)anyG you stoc5 for# Co%)anies Res)ondent "ir%a 2U3 PRG Godre+ Others K6# Ran5 the fo**o1in$ factors that custo%ers *oo5 for in the )urchase of Soa) 4 Deter$ent# FRan5 fro% / to CG <actors / ! 6 @ B C <ra$rance Kua*ity Co%)any I%a$e Price Pac5a$in$ Others K@# Do you su$$est custo%ers to )urchase a certain 'randH Particu*a Res)ondent r Yes "o KB# If Yes 1hyH Particu*ar 2i$h %ar$in Kua*ity Re*ationshi) "o reason G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, -/ Res)ondent
KC# Do custo%ers *oo5 for (arious sche%es in the )roductH Particu*a r Yes "o KE# If yes 1hich sche%esH Pro%otiona* Sche%es Cou)ons Price Off <ree'ies Scratch Cards 3uc5y Dra1s Bund*in$ Offer E;tra Kuantity Res)ondent Res)ondent
K-# >hich Trade Pro%otions do (arious co%)anies offerH 2U3 Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)#
PRG Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)#
GODREJ Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)#
OT2ERS Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# KD Gi(e reasons for not stoc5in$ a )articu*ar 'rand# K/, ny Su$$estions#
The Indian <MCG sector is the fourth *ar$est sector in the econo%y 1ith a tota* %ar5et si7e in e;cess of UST /6#/ 'i**ion# It has a stron$ M"C )resence and is characteri7ed 'y a 1e**.esta'*ished distri'ution net1or5& intense co%)etition 'et1een the or$ani7ed and unor$ani7ed se$%ents and *o1 o)erationa* cost# (ai*a'i*ity of 5ey ra1 %ateria*s& chea)er *a'our costs and )resence across the entire (a*ue chain $i(es India a co%)etiti(e ad(anta$e# The <MCG %ar5et is set to tre'*e fro% UST //#C 'i**ion in !,,6 to UST 66#@ 'i**ion in !,/B# Penetration *e(e* as 1e** as )er ca)ita consu%)tion in %ost )roduct cate$ories *i5e +a%s& tooth)aste& s5in care& hair 1ash etc in India is *o1 indicatin$ the unta))ed %ar5et )otentia*# Bur$eonin$ Indian )o)u*ation& )articu*ar*y the %idd*e c*ass and the rura* se$%ents& )resents an o))ortunity to %a5ers of 'randed )roducts to con(ert consu%ers to 'randed )roducts# Gro1th is a*so *i5e*y to co%e fro% consu%er Iu)$radin$I in the %atured )roduct cate$ories# >ith !,, %i**ion )eo)*e e;)ected to shift to )rocessed and )ac5a$ed food 'y !,/,& India needs around UST !- 'i**ion of in(est%ent in the food.)rocessin$ industry