SUMMER TRAINING REPORT

ON
CHERRY PICKING OF FMCG PRODUCTS AT BIG BAZAAR
Dissertation subitte! In Partia" #u"#i""ent #or t$e
Post Gra!uate Di%"oa in Business Mana&eent
B'()
Un!er t$e &ui!an*e o#(
CONTENTS
Acknowledgement
Preface
Executive Summary
Literature Review
Introduction to the industry
Interpretition
Management ierarchy
!omparison with other "usiness
#ovt$ policies related to "usiness
A"out the topic %Market Potential&
'indings And Analysis
Limitation
Summary(conclusion
Suggestions(Recommendations
)i"liography
ACKNO+,EDGEMENT
A work is never a work of an individual$ *e owe a sense of gratitude to the intelligence and
co+operation of those people who had "een so easy to let us understand what we needed from
time to time for completion of this exclusive pro,ect$
*e want to express our gratitude towards Mr$ #irish Pandey- IEM- Lucknow for giving us an
opportunity to do this pro,ect$
Last "ut not the least- we would like to forward our gratitude to our friends . other faculty
mem"ers who always endured us and stood "y us and without whom we could not have
envisaged the completion of our pro,ect$
Ra-eet
BBA)IIn! 'ear
Ro"" No. /0120
PREFACE
MARKETING is designed in such a way that student can grasp maximum
knowledge and can get practical exposure to the corporate world in minimum possi"le time$
)usiness schools of today reali/e the importance of practical knowledge over the theoretical
"ase$
0he research report is necessary as it provides an opportunity to the researcher in
understanding the industry with special emphasis on the development of skills in analy/ing
and interpreting practical pro"lems through the application of management theories and
techni1ues$ It is a new platform of learning through practical experience$
E3ECUTI4E SUMMARY
0he phenomenon of organi/ed retailing- in spite of its tremendous growth in the last 2+3 years
in India has ,ust seen the tip of the ice"erg$ As giants like Reliance- )harti+*almart and
others enter the fray- the scenario is going to "ecome more competitive and attractive$ 4nder
this "ackdrop- the fruits and vegeta"le sector %'.5& sector has a tremendous potential to take
advantage of this development$ Right now- with less than 67 of the produce "eing marketed
in an organi/ed way and an inefficient supply chain plaguing the system with losses and
wastages- there is a need to evolve a frame+work or a model of retailing that configures an
efficient supply chain to "enefit the retailers- farmers and the customers alike$
8emographics continue to show a positive report to spur retailing growth$ !onsumers aged 29+:;
years is emerging as the fastest growing consumer group and the mean age of Indians is now
pegged at 2<- a mean age that reinforces spending across all the retailing channels of grocery-
non+grocery and non+store$
0he government stance of protecting local retailers and prohi"iting 6997 foreign direct
investment in retailing continued in 299;- restraining international retailers= entry$ owever- there
was gradual economic reform- giving way to easier and faster franchising agreements as well as
the loosening of /onal regulations on retail expansion- thus stimulating retailing$
>on+store retailing is expected to continue its fast+paced growth from a miniscule "ase$ Across
all channels- growth in retailing is expected to "e "oosted heightened competition during the
period 299?+2966 due to the growing$
,ITERATURE RE4IE+
Mar5etin&
Marketing is a societal process "y which individuals and groups o"tain what they need and
want through creating- offering and freely exchanging products and services of value with
others or other wise it is the process of planning and executing the conception- pricing-
promotion and distri"ution of ideas- goods- services to create exchanges that satisfy
individual and organi/ational goals$
Mar5etin& Strate&'
Marketing strategy is a set of o",ectives- policies and rules that leads the company=s
marketing efforts$ It is the marketing approach to accomplish the "read o",ective of the
marketing approach to accomplish the "read o",ective of the marketing plan$ 0he various
process of marketing strategy are given "elow$
6$ Selecting largest markets segmentation
2$ Positioning
3$ Product
:$ Price
;$ Place
@$ Promotion
<$ Research and development
A$ Marketing research
Mar5et se&entation an! se"e*tin& tar&et ar5et
It is an effort to increase a company=s precision marketing$ 0he starting point of any
segmentation discussion is mass marketing$ In mass marketing- the seller engaged in the mass
production- mass distri"ution and mass promotion of one product for all "uyers$ Market
segment consists of a large identifia"le group within a market with similar wants- purchasing
power geographical location- "uying attitudes or "uying ha"ita$ It is an approach midway
"etween mass marketing and individual marketing$ 0hrough this the choice of distri"ution
channels- and communicaton channels "ecome much easier$ 0he researchers try to form
segments "y looking at consumer characteristicsB geographic- demographic- and
psychographic$ After segmenting the market then target market selected$
6. Positionin&() 0he positioning is a creative exercise donw with an existing product$ the
well known products generally hold a distinctive position in consumer=s minds$ 0he
positioning re1uires that every tangi"le aspect of product- price- place and promotion must
support the chosen positioning strategy$ !ompany should develop a uni1ue selling
proposition %4SP& for each "rand and stick to it- PPL consistently promotes its 8AP fertili/er
"y igher yield at lower cost$ As companies increase the num"er of claims for their "rand-
they risk dis"elief and a loss of clear positioning$ In general a company must avoid four
ma,or positioning errors$ 0hose are under positioning over positioning- confused positioning
and dou"tful positioning$
/. Pro!u*t() A product is any offering that can satisfy a need or want$ 0he ma,or types of
"asic offerings are goods- services- experiences- events- places- properties- organi/ations-
information and ideas$ 0he company gives more importance in 1uality- packaging- services
etc$ to satisfy the customers$ 0he products has it=s life cycle$ 0he product strategies are
modified in different stages of product life cycle$
7. Pri*e() It is the most important aspect in company=s point of view$ Price of the product will
"e decided "y the company according to the competitor=s price$
8. P"a*e() 0his plays a ma,or role in the entire marketing system$ the company emphasis on
it=s distri"ution network$ Proper distri"ution network gives proper availa"ility of the product$
2. Prootion() Promotion is the one of the ma,or aspects in marketing strategies$ )y
adopting various promotional activities the company create strong "rand image$ It also helps
in increasing the "rand awareness$ It includes advertising- sales promotioins and pu"lic
relations etc$
9. Resear*$ an! De:e"o%ent() after testing- the new product manager must develop a
preliminary marketing strategy plan for introducing the new product in to the market$ 0he
plan consists of three parts$ 0he first part descri"es the target market=s si/e- structure and
"ehavior$ 0he second part out lines the planned price- distri"ution strategy and marketing
"udget for the first year$ 0he third part of the development descri"es the long run sales and
profit goals and marketing mix strategy over time$
MARKETING MI3
Tar&et Mar5et
Pro!u*t Pri*e Prootion P"a*e
Product variety List price Sales promotion !hannels
Cuality 8iscounts Advertising !overage
8esign Allowances Sales forces Assortments
'eatures Payment period Pu"lic relation Locations
)rand name !redit terms 8irect marketing Inventory
Packaging 0ransport
Si/es
Services
*arranties
Returns
INTRODUCTION TO THE INDUSTRY
Products which have a 1uick turnover- and relatively low cost are known as 'ast Moving
!onsumer #oods %'M!#&$ 'M!# products are those that get replaced within a year$
Examples of 'M!# generally include a wide range of fre1uently purchased consumer
products such as toiletries- soap- cosmetics- tooth cleaning products- shaving products and
detergents- as well as other non+dura"les such as glassware- "ul"s- "atteries- paper products-
and plastic goods$ 'M!# may also include pharmaceuticals- consumer electronics- packaged
food products- soft drinks- tissue paper- and chocolate "ars$
India s 'M!# sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream activities$ Its principal constituents are
ousehold !are- Personal !are and 'ood . )everages$
0he total 'M!# market is in excess of Rs$ A;-999 !rores$ It iscurrently growing at dou"le
digit growth rate and is expected to maintain a high growth rate$ 'M!# Industry is
characteri/ed "y a well esta"lished distri"ution network- low penetration levels- low
operating cost- lower per capita consumption and intense competition "etween the organi/ed
and unorgani/ed segments$
0he Rs A;-999+crore Indian 'M!# industry is expected to register a healthy growth in the
third 1uarter of 299A+9? despite the economic downturn$ 0he industry is expected to register
a 6;7 growth in C3 299A+9? as compared to the corresponding period last year$ 4nlike other
sectors- the 'M!# industry did not slow down since C2 299A$ the industry is doing pretty
well- "ucking the trend$ As it is meeting the every+day demands of consumers- it will
continue to grow$
Market share movements indicate that companies such as Marico Ltd and >estle India Ltd-
with domination in their key categories- have improved their market shares and outperformed
peers in the 'M!# sector$ 0his has "een also aided "y the lack of competition in the
respective categories$ Single product leaders such as !olgate Palmolive India Ltd and
)ritannia Industries Ltd have also witnessed strength in their respective categories- aided
"yinnovations and strong distri"ution$ !onsumer Products Ltd in soaps and 8a"ur $
In!ustr' Cate&or' an! Pro!u*ts
Household Care
Persona" +as$()
0he market si/e of personal wash is estimated to "e around Rs$ A-399 !r$ 0he personal wash
can "e segregated into three segmentsD Premium- Economy and Popular$ 0he penetration
level of soaps is E?2 per cent$ It is availa"le in ; million retail stores- out of which- <; per
cent are in the rural areas$ 4L is the leader with market share of E;3 per centB #odre,
occupies second position with market share of E69 per cent$ *ith increase in disposa"le
incomes- growth in rural demand is expected to increase "ecause consumers are moving up
towards premium products$ owever- in the recent past there has not "een much change in
the volume of premium soaps in proportion to economy soaps- "ecause increase in prices has
led some consumers to look for cheaper su"stitutes$
Deter&ents()
0he si/e of the detergent market is estimated to "e Rs$ 62-999 !r$ ousehold care segment is
characteri/ed "y high degree of competition and high level of penetration$ *ith rapid
ur"ani/ation- emergence of small pack si/e and sachets- the demand for the household care
products is flourishing$ 0he demand for detergents has "een growing "ut the regional and
small unorgani/ed players account for a ma,or share of the total volume of the detergent
market$ In washing powder 4L is the leader with E3A per cent of market share$ Fther ma,or
players are >irma- enkel and Proctor . #am"le$
Personal Care
S5in Care()
0he total skin care market is estimated to "e around Rs$ 3-:99 !r$ 0he skin care market is at a
primary stage in India$ 0he penetration level of this segment in India is around 29 per cent$
*ith changing life styles- increase in disposa"le incomes- greater product choice and
availa"ility- people are "ecoming aware a"out personal grooming$ 0he ma,or players in this
segment are industan 4nilever with a market share of E;: per cent- fol+lowed "y !avinGare
with a market share of E62 per cent and #odre, with a market share of E3 per cent$
Hair Care()
0he hair care market in India is estimated at around Rs$ 3-A99 !r$ 0he hair care market can "e
segmented into hair oils- shampoos- hair colorants . conditioners- and hair gels$ Marico is
the leader in air Fil segment with market share of E 33 per centB 8a"ur occu+pies second
position at E6< per cent$
S$a%oos()
0he Indian shampoo market is estimated to "e around Rs$ 2-<99 !r$ It has the penetration
level of only 63 per cent in India$ Sachet makes up to :9 per cent of the total shampoo sale$ It
has low penetration level even in metros$ Again the market is dominated "y 4L with around
E:< per cent market shareB P.# occupies second position with market share of around E23
per cent$ Antidandruff segment constitutes around 6; per cent of the total shampoo market$
0he market is further expected to increase due to increased marketing "y players and
availa"ility of shampoos in afforda"le sachets$
Ora" Care()
0he oral care market can "e segmented into toothpaste + @9 per centB toothpowder + 23 per
centB tooth"rushes + 6< per cent$ 0he total toothpaste market is estimated to "e around Rs$
3-;99 !r$ 0he penetration level of toothpowder(toothpaste in ur"an areas is three times that of
rural areas$ 0his segment is dominated "y !olgate+Palmolive with market share of E:? per
cent- while 4L occupies second position with market share of E39 per cent$ In
toothpowders market- !olgate and 8a"ur are the ma,or players$ 0he oral care market- es+
pecially toothpastes- remains under penetrated in India with penetration level E;9 per cent$
Food & Beverages
Foo! Se&ent ()
0he foods category in 'M!# is gaining popularity with a swing of launches "y 4L- I0!-
#odre,- and others$ 0his category has 6A ma,or "rands aggregating Rs$ :-@99 !r$ >estle and
Amul slug it out in the powders segment$ 0he food category has also seen innovations like
softies in ice creams- ready to eat rice "y 4L and pi//as "y "oth #!MM' and #odre,
Pills"ury$
Tea ()
0he ma,or share of tea market is dominated "y unorgani/ed players$ More than ;9 per cent of
the market share is capture "y unorgani/ed players$ Leading "randed tea players are 4L and
0ata 0ea$
Co##ee ()
0he Indian "everage industry faces over supply in segments like coffee and tea$ owever-
more than ;9 per cent of the market share is in unpacked or loose form$ 0he ma,or players in
this segment are >estlH- 4L and 0ata 0ea$
Gro;t$ Pros%e*t
,ar&e Mar5et
India has a population of more than 6$6;9 )illions which is ,ust "ehind !hina$ According to
the estimates- "y 2939 India population will "e around 6$:;9 )illion and will surpass !hina
to "ecome the *orld largest in terms of population$ 'M!# Industry which is directly related
to the population is expected to maintain a ro"ust growth rate$
S%en!in& Pattern
An increase is spending pattern has "een witnessed in Indian 'M!# market$ 0here is an
upward trend in ur"an as well as rural market and also an increase in spending in organ+i/ed
retail sector$ An increase in disposa"le income- of household mainly "ecause of in+crease in
nuclear family where "oth the hus"and and wife are earning- has leads to growth rate in
'M!# goods$
C$an&in& Pro#i"e an! Min! Set o# Consuer
People are "ecoming conscious a"out health and hygienic$ 0here is a change in the mind set
of the !onsumer and now looking at IMoney for 5alueJ rather than I5alue for MoneyJ$ *e
have seen willingness in consumers to move to evolved products( "rands- "ecause of
changing lifestyles- rising disposa"le income etc$ !onsumers are switching from economy to
premium product even we have witnessed a sharp increase in the sales of packaged water and
water purifier$ 'indings according to a recent survey "y A$ !$ >ielsen shows a"out <6 per
cent of Indian take notice of packaged goods la"els containing nutritional information
compared to two years ago which was only ;? per cent$
SourcesD >aukri u"- I)E'- !hennai Fnline
SourcesD Statistical Futline of India %2996+92&- >!AER
Mar5et O%%ortunities
4ast Rura" Mar5et
Rural India accounts for more than <99 Million consumers- or E<9 per cent of the Indian
population and accounts for E;9 per cent of the total 'M!# market$ 0he working rural
population is approximately :99 Millions$ And an average citi/en in rural India has less then
half of the purchasing power as compare to his ur"an counterpart$ Still there is an untapped
market and most of the 'M!# !ompanies are taking different steps to capture rural market
share$ 0he market for 'M!# products in rural India is esti+mated E ;2 per cent and is
pro,ected to touch E @9 per cent within a year$ industan 4nilever Ltd is the largest player in
the industry and has the widest market coverage$
E<%ort ) =,e:era&in& t$e Cost A!:anta&e>
!heap la"or and 1uality product . services have helped India to represent as a cost ad+
vantage over other !ountries$ Even the #overnment has offered /ero import duty on capital
goods and raw material for 6997 export oriented units$ Multi >ational !ompanies out+source
its product re1uirements from its Indian company to have a cost advantage$ India is the
largest producer of livestock- milk- sugarcane- coconut- spices and cashew apart from "eing
the second largest producer of rice- wheat- fruits . vegeta"les$ It adds a cost advantage as
well as easily availa"le raw materials$
Se*tora" O%%ortunities
Ma,or Gey Sectoral opportunities for Indian 'M!# Sector are mentioned "elowD
Dairy Based Products
India is the largest milk producer in the world- yet only around 6; per cent of the milk is
processed$ 0he organi/ed li1uid milk "usiness is in its infancy and also has large long+term
growth potential$ Even investment opportunities exist in value+added products like desserts-
puddings etc$
Packaged Food
Fnly a"out 69+62 per cent of output is processed and consumed in packaged form- thus
highlighting the huge potential for expansion of this industry$
Oral Care
0he oral care industry- especially toothpastes- remains under penetrated in India with
penetration rates around ;9 per cent$ *ith rise in per capita incomes and awareness of oral
hygiene- the growth potential is huge$ Lower price and smaller packs are also likely to drive
potential up trading$
Beverages
Indian tea market is dominated "y unorgani/ed players$ More than ;97 of the market share is
capture "y unorgani/ed players highlighting high potential for organi/ed players$
0he Indian 'M!# sector is the fourth largest sector in the economy with a total market si/e
in excess of 4SK 63$6 "illion$ It has a strong M>! presence and is characterised "y a
wellesta"lished distri"ution network- intense competition "etween the organised and
unorganised segments and low operational cost$ Availa"ility of key raw materials- cheaper
la"our costs and presence across the entire value chain gives India a competitive advantage$
0he 'M!# market is set to tre"le from 4SK 66$@ "illion in 2993 to 4SK 33$: "illion in 296;$
Penetration level as well as per capita consumption in most product categories like ,ams-
toothpaste- skin care- hair wash etc in India is low indicating the untapped market
potential$ )urgeoning Indian population- particularly the middle class and the rural segments-
presents an opportunity to makers of "randed products to convert consumers to "randed
products$
#rowth is also likely to come from consumer =upgrading= in the matured product categories$
*ith 299 million people expected to shift to processed and packaged food "y 2969- India
needs around 4SK 2A "illion of investment in the food+processing industry$
Large domestic market
India is one of the largest emerging markets- with a population of over one "illion$ India is
one of the largest economies in the world in terms of purchasing power and has a strong
middle class "ase of 399 million$
Rural and ur"an potential
Rural+ur"an profile
Population 2996+92 %mn household& ;3 63;
Population 299?+69 %mn household& @? 6;3
7 8istri"ution %2996+92& 2A <2
Market %0owns(5illages& 3-<@A @-2<-999
4niverse of Futlets %mn& 6 3$3
SourceD Statistical Futline of India %2996+92&- >!AER
Around <9 per cent of the total households in India %6AA million& resides in the rural areas$
0he total num"er of rural households are expected to rise from 63; million in 2996+92 to 6;3
million in 299?+69$ 0his presents the largest potential market in the world$ 0he annual si/e of
the rural 'M!# market was estimated at around 4SK 69$; "illion in 2996+92$ *ith growing
incomes at "oth the rural and the ur"an level- the market potential is expected to expand
further$
India + a large consumer goods spender
An average Indian spends around :9 per cent of his income on grocery and A per cent on
personal care products$ 0he large share of fast moving consumer goods %'M!#& in total
individual spending along with the large population "ase is another factor that makes
India one of the largest 'M!# markets$
!onsumption pieD
SourceD GSA 0echnopak !onsumer Futlook 299:$
SourceD Euro monitor$
!hange in the Indian consumer profileD
SourceD Statistical Futline of India %2992+93&$
Rapid ur"anisation- increased literacy and rising per capita income- have all caused rapid
growth and change in demand patterns- leading to an explosion of new opportunities$ Around
:; per cent of the population in India is "elow 29 years of age and the young population is set
to rise further$ Aspiration levels in this age group have "een fuelled "y greater media
exposure- unleashing a latent demand with more money and a new mindset$
8emand+supply gap
!urrently- only a small percentage of the raw materials in India are processed into value
added products even as the demand for processed and convenience food is on the rise$ 0his
demand supply gap indicates an untapped opportunity in areas such as packaged form-
convenience food and drinks- milk products etc$ In the personal care segment- the low
penetration rate in "oth the rural and ur"an areas indicates a market potential$
INDIA COMPETITI4ENESS AND COMPARISON +ITH THE +OR,D MARKETS
Materials availa"ility
India has a diverse agro+climatic condition due to which there exists a wide+ranging and large
raw material "ase suita"le for food processing industries$ India is the largest producer of
livestock- milk- sugarcane- coconut- spices and cashew and is the second largest producer of
rice- wheat and fruits . vegeta"les$ India also has an ample supply of caustic soda and soda
ash- the raw materials in the production of soaps and detergents L India produced 6$@ million
tonnes of caustic soda in 2993+9:$ 0ata !hemicals- one of the largest producers of synthetic
soda ash in the world is located in India$ 0he availa"ility of these raw materials gives
India the locational advantage$
SourceD 8IPP$
Apart from the advantage in terms of ample raw material availa"ility- existence of low+cost
la"our force also works in favour of India$ La"our cost in India is amongst the lowest in
Asian countries$ Easy raw material availa"ility and low la"our costs have resulted in a lower
cost of production$ Many multi+nationals have set up large low cost production "ases in India
to outsource for domestic as well as export markets$
Penetration and per capita consumption
Rural + ur"an penetration %2992&
SourceD LL- Indian Readership Survey$
Penetration level in most product categories like ,ams- tooth paste- skin care- hair wash etc in
India is low$ 0he contrast is particularly striking "etween the rural and ur"an segments + the
average consumption "y rural households is much lower than their ur"an counterparts$ Low
penetration indicates the existence of unsaturated markets- which are likely to expand as the
income levels rise$ 0his provides an excellent opportunity for the industry players
in the form of a vastly untapped market$
Moreover- per capita consumption in most of the 'M!# categories %including the high
penetration categories& in India is low as compared to "oth the developed markets and other
emerging economies$ A rise in per capita consumption- with improvement in incomes and
afforda"ility and change in tastes and preferences- is further expected to "oost 'M!#
demand$ #rowth is also likely to come from consumer MupgradingM- especially in the matured
product categories$
ousehold income distri"ution L 2993
ousehold income distri"ution L 296;
8emand for 'M!# products is set to "oom "y almost @9 per cent "y 299< and more than 699
per cent "y 296;$ 0his will "e driven "y the rise in share of middle class %defined as the
clim"ers and consuming class& from @< per cent in 2993 to AA per cent in 296;$ 0he "oom in
various consumer categories- further- indicates a latent demand for various product segments$
'or example- the upper end of very rich and a part of the consuming class indicate a small "ut
rapidly growing segment for "randed products$ 0he middle segment- on the other hand-
indicates a large market for the mass end products$
0he )RI!s report indicates that India=s per capita disposa"le income- currently at 4SK ;;@
per annum- will rise to 4SK 66;9 "y 296; + another 'M!# demand driver$ Spurt in the
industrial and services sector growth is also likely to "oost the ur"an consumption
demand$
Rise in Indian disposa"le income %4SK(annum&
MARGE0 FPPFR04>I0IES 'FR I>5ES0ME>0
SourceD Panel data
According to estimates "ased on !hina=s current per capitaconsumption- the Indian 'M!#
market is set to tre"le from4SK 66$@ "illion in 2993 to 4SK 33$: "illion in 296;$ 0he
dominanceof Indian markets "y un"randed products- change in eating ha"its and the
increased afforda"ility of the growing Indian population presents an opportunity to makers of
"randed products- who can convert consumers to "randed products$
CONSUMER SA,ES PROMOTINA, ACTI4ITIES
0he importance of consumer sales promotion in the marketing mix of the fast moving
consumer goods %'M!#& category throughout the world has increased$ !ompanies spend
considera"le time in planning such activities$ owever- in order to enhance the effectiveness
of these activities- manufacturers should understand consumer and retailer interpretations of
their promotional activities$ 0he study here pertains to consumerNs perceptions regarding
sales promotion$ Some past researches have suggested that promotion itself has an effect on
the perceived value of the "rand$ 0his is "ecause promotions provide utilitarian "enefits such
as monetary savings- added value- increased 1uality and convenience as well as hedonic
"enefits such as entertainment- exploration and self+expression$
)roadly speaking most of the companies using Marketing Mix which includesO
Price
Place %!hannel of 8istri"ution&
Product
Prootion
0hese are the four "asic pillar of marketing mix$ Most of the marketing strategies are "uilt on
the "asis of these criteria$
Promotion is one of the important elements of marketing mix$ 0here are so many elements of
promotion such as O
Advertising
8irect Marketing
Pu"lic Relations
Sa"es Prootion
0raditionally- sales Promotions have "een used "y marketer to increase sales in the short
term$ owever- in the last few decades this communication tool has evolved and now is
considered from a strategic point of view$ 'or this reason- it is necessary to reali/e new
studies in this area and study how consumers evaluate sales promotions$
Sales promotions have grown in "oth importance and fre1uency over the past few decades$
Although an accurate estimate for total sales promotions expenditures does not exist- we can
"e sure that the trend is up$
Sales promotion serves three essential rolesD It informs- persuades and reminds prospective
customers a"out a company and its products$ Even the most useful product or "rand will "e a
failure if no one knows that it is availa"le$ As we know- channels of distri"ution take more
time in creating awareness "ecause a product has to pass through many hands "etween a
producer and consumers$
0herefore- a producer has to inform channel mem"ers as well as ultimate consumers a"out
the attri"utes and availa"ility of his products$ 0he second purpose of promotion is persuasion$
0he cut throat competition among different products puts tremendous pressure on their
manufacturers and they are compelled to undertake sales promotion activities$ 0he third
purpose of promotion is reminding consumers a"out products availa"ility and its potential to
satisfy their needs$
'rom these elements Sales Promotion is the element which is in the focus of this pro,ect$
'urther Sales Promotion is 1uite "road term it includes O
Tra!e Oriente! Sa"es Prootion
Consuer Oriente! Sa"es Prootion
Tra!e Oriente! Sa"es Prootion(
0rade Friented Sales Promotion aimed to motivate channel mem"er of the company
and to encourage them to push companyNs product$ 0rade Friented Sales Promotion includes
dealer contest and incentives- trade allowances$ Point+of+purchase displays- sales training
programs- trade shows- cooperative advertising- and other programs designed to motivate
distri"utors and retailers to carry a product and make an extra effort to push it to their
customers
Consuer Oriente! Sa"es Prootion(
!onsumer Friented Sales Promotion is the main topic of this pro,ect$ ere emphasi/e
is given to motivate consumer to increase sales$ !onsumer Friented Sales Promotion includes
Sampling- !ouponing- Premiums- !ontest- Refunds- Re"ates- )onus PackNs- Price+off- Event
marketing etc$
De#inition(
'or the purpose of this study- following definitions of sales promotion were kept in mind$
Gotler defines sales promotion asD ISales promotion consists of a diverse collection of
incentive tools- mostly short+term designed to stimulate 1uicker and(or greater purchase of
particular products(services "y consumers or the trade$J
Roger Strang has given a more simplistic definition i$e$ Isales promotions are short+term
incentives to encourage purchase or sales of a product or service$J
ence- any forms of incentives %price cut or value added nature& offered for short period
either to trade or consumers are considered as sales promotion activities$
Mar5eter?s uses *onsuer oriente! sa"es %rootion too"s #or t$e #o""o;in& reasons(
0o increase short term sales
0o induce trial
0o reduce inventory
0o esta"lish a "rand name
0o make cross selling
0o cope up with competition
0o avoid advertising clutter
Too"s o# Consuer Oriente! Sa"es Prootion(
0here are so many tools or techni1ue availa"le to the marketers for achieving o",ective of
sales promotion$ 0hese tools should "e used considering all other factors affecting such as
cost- time- competitors- availa"ility of goods etc$ 0hese tools are as underO
6$ Sampling
2$ !ouponing
3$ Price+Fff
:$ Premium
;$ !ontest
@$ )onus Pack
LetNs have look at each toolO
@. Sa%"in&(
Sampling is an important and very fre1uently used sales promotion tool$ In sampling
consumers are given some 1uantity of a product for no charge to induce trial$ Sampling is the
most effective way to generate trial- at the same time it is most expensive tools$ Sampling is
also used for esta"lished product$ Marketers of packaged+goods products such as food- health
care items- cosmetics- and toiletries are heavy users of sampling$
Bene#its o# Sa%"in&(
'rom the consumers point of view Sampling is risk free way to try new
product$
*ith the help of sampling scheme consumer can experience directly which is
not possi"le in any kind of advertisement$
Sampling is "est way to induce trial when product feature are very difficult to
descri"e through advertisement$
,iitation o# Sa%"in&(
0he main draw"ack of sampling is of cost$ *hile giving free sample it
re1uires financial soundness "ecause otherwise company canNt afford it$
*hile giving free sample it is necessary that "rand have some uni1ue 1uality$
0here is some product which re1uires long time to show result due to that it is
possi"le that the sampling scheme may not give "enefit as expected$ E$g$ Skin
cream re1uires time to show result in this case it is possi"le that customer
might not respond when there is no such scheme$
Distribution o# Sa%"es(
Door)to)!oor sa%"in&( ere product is directly delivered to the prospects
residence$ 0his distri"ution method is very expensive "ecause of la"our cost$
)ut it can "e cost effective if marketer has exact information of target market$
Sa%"in& t$rou&$ t$e ai"( 0his method can "e used when product is
compara"le small- lightweight- and nonperisha"le$ In this method marketer
has control over where and when the product will "e distri"uted$ 0he main
draw"ack is of postal restrictions and increasing postal rates$
In)store sa%"in&( 0his method re1uires great support from retailers$ 0his
method is more used in product like food- perfume- etc$ ere ta"le or "ooth
set+up in the store$ In this method consumer can directly taste and than can
purchase$
On)%a*5a&e sa%"in&( In this method free sample is attached to another
product$ 0his is cost effective method "ut it is also not free from draw"ack as
it is distri"uted only to consumers who purchase the item to which it is
attached the sample will not reach nonusers of the carrier "rand$
Ot$er Met$o!s( 0o distri"ute free sample- methods like newspaper-
maga/ine are used$ Send sample to those who call tall free num"er$ 0horough
internet free sample can "e distri"uted like film clip$
6. Cou%onin&(
!ouponing is the oldest and most widely used way of sales promotion$ !oupons have "een
used since 6A?;$ It is mostly used "y packaged goods$ It is worthwhile to use coupon as a
promotion tool "ecause data shows that market for packaged goods increased from 6@ "illion
in 6?@A to 369 "illion in 6??:$ 0o "oost up the sales not only manufacturer "ut retailers
personally can also used$
Bene#its o# Cou%onin&(
!ouponing leads to price reductions so as to encourage price sensitive
customers$
>on users can try a product which may leads to regular sales$
Reduction in price reduces the consumerNs perceived risk associated with new
product such as financial risk- social risk- psychological risk etc$
!oupons can "e used not only for newly launched product "ut it can also use
for already esta"lished "rand$
,iitations o# Cou%onin&(
It is very difficult to estimate num"er of "uyers$
!ost of coupon and reduction given as per scheme leads to reduction in
over all profit of the firm$
It may to target towards actual "uyers- some other may got "enefit of it
who are actually not interested$
It can "e manipulated "y retailers and company may not get the result
expected$
Distribution o# *ou%ons(
0he use of newspaper and maga/ine as a vehicle for distri"uting coupon was
used 1uite freely$ >ewspaper and maga/ine gives advantage of market
selectivity- shorter lead time and cost efficiency$ )ut now a day these media is
not so much effective$
5ery widely used method for distri"uting coupon is placing coupons either
inside or on the outside of the package$
8istri"ution through newspaper Pfreestanding insertsN is "y far the most
popular method for delivering coupons to consumers$
/. Pri*e)o##(
A price+off is simply a reduction in the price of the product to increase sales and is very often
used when introduction a new product$ A reduction in price always increases sales "ut the use
of this techni1ue should "e carefully considered in the current market situation$
Price+off is the most preferred sales promotion techni1ue "ecause consumers response very
positively to this scheme$ >ot only that "ut it also cause large increase in sales volume$ Price+
off reductions are typically offered tight on the package through specially marked price
packs$ E$g$ Grack Qack offers 397 Price+off$
#enerally Price+offs given from 69 to ;9 percent of the regular price$ ere reduction is
coming out from manufacturerNs profit margin- and not the retailerNs$
Bene#its o# Pri*e)o##(
Since marketers "are the pro"a"le reduction in price at cost of his own profit
so he can control over the price+off scheme$
Price+off can "e a strong influence at the point of purchase when price
comparisons are "eing made$
Price+off promotion can also encourage consumers to purchase larger
1uantities$
,iitation o# Pri*e)o##(
Retailers may create pricing and inventory pro"lems "ecause retailers will not
accept packages with a specific price shown$
0o the company it is very expensive tool of sales promotion
7. Preiu(
Premium is an offer of an item either free or at a low price $*ith consumer spending more-
companies will look to incentive programs as a way to maintain customer loyalty and capture
a greater share of the market$ !reative and will+constructed premium promotions are known
delivering "rand enhancing and sales "uilding results$
!urrently marketers ask themselves how to select a premium$ 0here are some guidelines for
choosing a premiumD Fffer a "rand that enhances your "rand- and capitali/e on the e1uity of
the "rands logo "y incorporating it into the premium item$
T;o basi* t'%e o# %reiu(
@. Free Preiu( 'ree premiums are small gifts included in the product
package or sent to consumers who mail in a re1uest along with a proof or
purchase$ 'ree Premium includes toys- "alls- trading card or other items$ 'ree
premium have high impulse value and can provide an extra incentive to "uy
the product$ Even though it is also facing some pro"lems like cost factor-
which results from the premium itself as well as from extra packaging that
may "e needed$ Again retailers can manipulate with customer and with the
free premium scheme$
6. Se"#),iAui!atin& Preius( In Self+Li1uidating Premiums consumers are
re1uires to pay some or all of the cost of the premium plus handling and
mailing costs$ 0his tool is more useful to the retailers to gain extra profit as he
can purchase from manufacturer and than can sale it to final user at lower cost$
ere the aim is not to make profit on the premium item "ut rather ,ust to cover
costs and offer a value to the consumer$ Fffering values to consumers through
the premium products can create interest in the "rand and goodwill that
enhances the "rands image$
Self+Li1uidating Premiums also has some limitation$ It has very low
redemption rate$ !onsumers are not always responds to this type of sales
promotion scheme$
8. Contest(
A contest is a promotion where consumers compete for pri/es or money on the "asis of skills
or a"ility$ 0o the customers contest is more attractive "ecause they have mentality that they
can win "ig pri/es "eing offered$ !ontest usually provide
a purchase incentive "y re1uiring a proof of purchase to enter or an entry form that is
availa"le from a dealer or advertisementB some contest re1uire consumers to read an ad or
package or visit a store display to gather information needed to enter$ Marketers must "e
careful not to make their contests too difficult to enter- as doing so might discourage
participation among key prospects in the targets audience$
0here is another term called =S;ee%sta5es> which is promotion where winners are
determined purely "y chanceB it does not re1uire a proof of purchase as condition for entry$
Entrants need only su"mit their names for the pri/e drawing$ It is easier to enter thatNs why
sweepstakes more customers than contest$
Bene#its o# Contest(
!ontest and sweepstakes can get the customers involved with a "rand "y
making the promotion product relevant$
Marketers can use contests and sweepstakes to "uild "rand e1uity "y
connecting the pri/es to the lifestyle- needs or interests of the target audience$
!onsumers can know more a"out the product as well as a"out company as
direct involvement increases$
,iitation o# Contest(
In contest and sweepstakes winners are given pri/es randomly so customers
reluctant to pay more attention towards it$
Marketers have cut "ack the uses of these promotional tools due to its lower
effectiveness and fears that consumers might "ecome dependent on them$
A ma,or pro"lem in contest and sweepstakes is that of participation "y
professionals or ho""yists who su"mit many entries "ut have no intention of
purchasing the product$
'urther- for marketers it increases so many other activities like managing all
the entries and selecting winner from them and delivering pri/e to them which
also re1uires so many time and it also increase cost$
2. Bonus Pa*5(
)onus packs offer the consumer an extra amount of a product at the regular price "y
providing larger containers or extra units$ )onus is also fre1uently used sales promotion tool
"ecause consumer response towards "onus pack is very positive$ 0he additional value of a
"onus pack is generally o"vious to the consumer and can have a strong impact on the
purchase decision at the time of purchase$
Bene#its #ro Bonus Pa*5(
It gives a direct way to provide extra value without having to get involved
with complicated coupons or refund offers$
)onus can "e a good answer to competitorNs promotion or introduction of a
new "rand$
)onus packs result in larger purchase orders and favora"le display space in the
store if the relationships with retailers are good$
,iitation o# Bonus Pa*5(
It re1uires additional space so retailers or distri"utors may create pro"lem if
the relation with distri"utors are not good as it does not give any extra "enefit
to them$
Another pro"lem is that "onus packs may appeal primarily to current users
who pro"a"ly would have purchase the "rand anyway or to promotion
sensitive consumers who may not "ecome loyal to the "rand$
A common limitation is of cost$ As marketers giving extra 1uantity it makes
cost to the company$
0hese are the main consumer oriented sales promotion tools Marketers use any of them or
more then one at a time depending on the sales promotion strategy$ 0here are some other
sales promotion tools like Refunds and Re"ates- 're1uency Programs- Event Marketing etc to
name a few- "ut these tools are used very less compared to earlier noted main tools$
0he evaluation of sales promotion tools is measured in terms of their a"ility to accomplish
specific o",ectives and consider whether the impact of the promotion will "e immediate or
delayed$
Fa*tors In#"uen*in& Consuer Oriente! sa"es %rootion(
Mainly four factors should "e taken into account while determining the sales promotion
programme$
R 0arget market
R >ature of product
R Stage of product life cycle
R )udget availa"le for promotion
@. Tar&et Mar5et(
*hile doing sales promotion- marketer must know who their target market is-
otherwise there is no use of all effort "ecause it leads to no where$ A target market can "e in
any of the stages of "uying hierarchy i$e$ awareness- knowledge- liking- preferences-
conviction and purchase$ Each stage defines a possi"le goal of promotion$
6. Nature o# t$e %ro!u*t(
0here are various product attri"utes which influence sales promotional strategy$ *hen
the unit price is low the manufacturer as well as the customer has low risk "ut he can get the
"enefit of mass marketing$ 0herefore- mass marketing re1uires mass sales promotion
schemes$ Sales promotion scheme differ for products like its dura"ility- perisha"le goods etc$
/. Sta&e o# %ro!u*t ,i#e C'*"e(
Sales promotion strategies are influenced "y the life cycle of a product$ *hen a new
product introduced- prospective "uyers must "e informed a"out its existence and its "enefits
and middlemen must "e convinced to stock it$ Later- if a product "ecomes successful-
competition intensifies and more emphasis is placed on sales promotion to increase its sales$
7. Bu!&et A:ai"ab"e #or Prootion(
0he funds availa"le for promotion are the ultimate determinant of the promotional
programme$ A "usiness with ample funds can make more effective use of sales promotion
programme than a firm with limited financial resources$ 0he "udget for sales promotion can
"e prepared "y the following methodsO
Percentage of Sales
'ixed funds availa"le for sales promotion
'ollowing the competition- and
)udgeting "y o",ective$
+$' !o Sa"es %rootion s*$ees a##e*t sa"esB
0here are three mechanisms "ehind these facts$ It is Purchase 1uantity- )rand switching and
!ategory expansion$
'irst- consumer can increase the 1uantity they "uy ,ust "ecause the product is on sale$
Second- consumers are inducing to purchase another "rand different from the one they would
have purchased when there is no promotional incentive$
'inally- consumerNs total consumption of the product category is increased "y the promotion$
owever- in the long term this positive effect may "e diluted "ecause a promotional
campaign has no permanent effect in the sales of the firm
Sa"es Prootion Strate&'(
Sales are the life"lood of a "usiness- without sales there would "e no "usiness in the first
placeB therefore it is very important that if a "usiness wants to succeed- it should have a sales
promotion strategy in mind$ 0he primary o",ective of a sales promotion is to improve a
companyNs sales "y predicting and modifying your target customerNs purchasing "ehavior and
patterns$
Sales promotion is very important as it not only helps to "oost sales "ut it also helps a
"usiness to draw new customers while at the same time retaining older ones$ 0here are a
variety of sales promotional strategies that a "usiness can use to increase their sales- however
it is important that we first understand what a sales promotion strategy actually is and why it
is so important$
A sales promotion strategy is an activity that is designed to help "oost the sales of a product
or service$ 0his can "e done through an advertising campaign- pu"lic relation activities- a free
sampling campaign- a free gift campaign- a trading stamps campaign- through demonstrations
and exhi"itions- through pri/e giving competitions- through temporary price cuts- and through
door+to+door sales- telemarketing- personal sales letters- and emails$
0he importance of a sales promotion strategy cannot "e underestimated$ 0his is "ecause a
sales promotion strategy is important to a "usiness "oosting its sales$
*hen developing a sales promotion strategy for your "usiness- it is important that you keep
the following points in mind$
!onsumer attitudes and "uying patterns
Sour "rand strategy
Sour competitive strategy
Sour advertising strategy
Fther external factors that can influence products availa"ility and pricing$
T$ere are t$ree t'%es o# sa"es %rootion strate&ies(
A push strategy
A pull strategy or
A com"ination of the two
A Pus$ Strate&'(
A PpushN sales promotion strategy involves PpushingN distri"utors and retailers to sell your
products and services to the consumer "y offering various kinds of promotions and personal
selling efforts$ *hat happens here is that a company promotes their product(services to a
reseller who in turn promotes it to another reseller or to the consumer$ 0he "asic o",ective of
this strategy is to persuade retailers- wholesalers and distri"utors to carry your "rand- give it
shelf space- promote it "y advertising- and ultimately PpushN it forward to the consumer$
0ypical push sales promotion strategies includeB "uy+"ack guarantees- free trials- contests-
discounts- and specialty advertising items$
A Pu"" Strate&'(
A PpullN sales promotion strategy focuses more on the consumer instead of the reseller or
distri"utor$ 0his strategy involves getting the consumer to PpullN or purchase the
product(services directly from the company itself$ 0his strategy targets its marketing efforts
directly on the consumers with the hope that it will stimulate interest and demand for the
product$ 0his pull strategy is often used when distri"utors are reluctant to carry or distri"ute a
product$ 0ypical pull sales promotion strategies includeB samples- coupons- cash refunds or
re"ates- loyalty programs and rewards- contests- sweepstakes- games- and point+of+purchase
displays$
A Cobination o# T;o Strate&ies(
A Pcom"inationN sales promotion strategy is ,ust thatB it is a com"ination of a push and a pull
strategy$ It focuses "oth on the distri"utor as well as the consumers- targeting "oth parties
directly$ It offers consumer incentives side "y side with dealer discounts$
Sa"es Prootion an! !i##erent t$eories(
0here are certain theories which can "e considered "y the marketers while deciding sales
promotion strategies$ It should "e noted that these theories are not final conclusion "ut it
helps in making "etter decisions$ ere I will try to ela"orate on two theory i$e$ theory of
attitude and theory of prospects$
Sa"es Prootion an! t$eor' o# Attitu!e(
Multi attri"ute models of attitude %'ish"ein and A,/en- 6?<;& depict the consumerNs decision
to perform a specific "ehavior as the logical conse1uence of "eliefs- attitudes and intentions
with regard to the "ehavior$ As per this model- a consumerNs intention to "uy a "rand may "e
"ased on positive(negative attitudes towards a promotion$
Attitu!e Mo!e"(
Be$a:ior C Re;ar! or C Pur*$ase
Punis$ent C Not Pur*$ase
It is found that the impact of three attitudinal dimensions L price consciousness- time value
and satisfaction(pride L on consumersN decision to use coupons$ Results of their study showed
that there was a positive relationship "etween coupon usage and consumer price
consciousness$ 0here was a significant
negative relationship "etween coupon usage and perceived value of time indicating that the
more a consumer valued his or her time- the lesser was the tendency to use coupons$ 0he
authors found that coupon usage increased when the consumer perceived higher satisfaction
and pride with the use of coupons$
Some marketers applied the theory of reasoned action to understand consumerNs decision to
use coupons$ As per the model- "ehavior towards coupons would "e influenced "y consumer
intentions to use coupons$ !onsumersN intention to use coupons would "e determined "y their
attitudes and su",ective norms$ !onsumersN attitudes would "e formed through their "eliefs in
the rewards and costs of using coupons while su",ective norms would "e formed through
consumersN perception of whether important others think they should expend the effort to
clip- save and use coupons$ It is found that "eliefs in the rewards of using coupons had high
positive correlation with attitude while inconveniences and encum"rances had weak negative
correlation with attitude
Although attitude models provide important insights into the consumer decision+making
process- researchers have found discrepancies "etween stated attitudes and actual "ehavior$ in
several studies %Perry and #illespie- 6?<@B Geesling and Gaynama- 2993&$ Studies in different
contexts have shown that attitudes are actually poor predictors of "ehavior$ 0his possi"ly
accounts for the limited application of attitude models to examine consumer response to sales
promotions$
Sa"es Prootion an! Pros%e*t T$eor'(
0his theory proposes that people perceive outcomes of a choice as perceived PlossesN and
P#ainsN relative to a su",ective reference point(price$
As per this theory of sales promotions it is stated that consumerNs perception of promotion as
a PlossN or PgainN is a function of the type of the promotion$ 0hey proposed that non price
promotions such as premium offers which segregate the
promotional gain from the purchase price will "e viewed as gains$ Fn the other hand- price
promotions such as price off- which integrate the promotional gain with the purchase price
will "e viewed as reduced losses$
0he impact of price versus non price promotions on a consumerNs reference price reasoned
that price promotions would "e integrated with the purchase price of the product and lead to a
reduction of internal reference price$ *hile non price promotions would "e segregated from
the purchase price of a product and not lead to a reduction of internal reference price$ Results
showed that price promotions led to a lower internal reference price while non price
promotions did not affect internal reference price$
As per prospect theory to predict that price promotions would "e viewed as reduced losses
and chosen less often than non price promotion which would "e viewed as gains$ owever it
is shown that an almost e1ual num"er of su",ects chose the non price promotion %a premium
offer& as compared to the price promotion %a price discount&$ 0he reasoning that price
promotions would "e viewed as reduced losses and preferred less as compared to non price
promotions which would "e viewed as gains was not supported "y the results of the study$
Prospect theory "ased prediction that consumers will perceive non+price promotions as
PgainsN and price promotions as Preduced lossesN is not "ased on a precise application of the
theory$ !ontrary predictions can "e derived from the theory$ It can "e argued that consumers
will perceive a price promotion as a gain as the price reduction offered reduces the PlossN
experienced "y the purchase price$
Sa"es %rootion #ro t$e retai"er?s %oint o# :ie;(
Per*e%tions on S*$ee Pre#eren*e
It was found that retailer perceived price offs as a "etter form of sales promotion
activity$ Price offs in their opinion had relatively a greater impact compared to any other form
of sales promotion activity like )onus packs- Premium- !ontests etc$ Retailers preferred price
offs the most- then "onus pack- premium- contests- in order of importance$
Per*e%tions about Bu'in& Ro"es
Retailers viewed that the person who came to the shop %who may "e a maid- son-
daughter- daughter+in+law and child& was the decider of a toilet soap "rand and not the
Income provider %e$g$ head of the family&$ It could "e inferred that visi"ility of information
a"out the sales promotion activity at the point of purchase could result into the purchase of a
promoted "rand$
Per*e%tions about t$eir ro"e in !e*ision)a5in&
Retailer had relatively very low influence in affecting choice$ It could "e inferred that
visi"ility and awareness a"out the scheme were the critical success factors so that pull could
"e created$
Per*e%tions about Res%onse to Sa"es Prootion O##ers
0hey "elieved that younger age+groups were more experimental in nature- amena"le
to trying new "rands- and sought(looked for or asked whether there were any& sales
promotion schemes running on any toilet soap at the time of purchase$
Per*e%tions about Couni*ations o# Sa"es Prootion S*$ees
Retailers perceived that role of word of mouth and television advertising played an
important part in providing information inputs to consumers regarding sales promotion
activities$
4ariations in In#oration F"o;
Smaller %non+supermarket- small format store& retailers received relatively less
support compared to supermarkets in terms of servicing- margins- information a"out sales
promotion activities from the dealers$ Many a times small retailers were only informed
ver"ally a"out sales promotion schemes "y the dealer salesmen during the scheduled weekly
visits$
Dea"er)Retai"er D'nai*s
At the time of sales promotion activities- dealers had tendency to push unwanted
stocks onto the smaller retailers$ In fact these retailers preferred to stock variety of "rands and
wanted payment for shelf and window display to increase traffic into their store$ owever-
supermarkets and "ig retailers were pampered and given special services and given "etter
margins and "etter allowances$
Mar&ins
It was found that in sales promotion schemes margins varied from @ to6;7 depending
of the si/e of the retail outlet- "argaining power of a retailer- 1uantity ordered "y him etc$
Mostly margins were linked to si/e of the volumes that were ordered$
Per*e%tions about ters an! *on!itions
Retailers were not found to "e happy with sales promotion schemes where their
margins were cut on the pretext of ,ust fast movement of inventory of the "rand "eing
promoted$ Also if additional incentive was offered it was su",ect to minimum performance
re1uirement$
Nature o# POP
Retailers indicated that most of the PFP %Point of Purchase& materials were meant for
"rand advertisement and not for giving information regarding the schemes$ 0hus it could "e
inferred that companyNs follow up was not ade1uate$
Ser:i*in& !urin& !uration o# S*$ee
In stock+out situation during the running of the sales promotion schemes- smaller
retailers had to wait for replenishment of stocks till the next scheduled weekly visit "y the
dealer salesman "ut "ig retailers were serviced on telephonic re1uest for replenishment of
stocks$ 0his clearly indicated the disparity in treatment$
Prob"e o# "e#t)o:er
A leftover stock at the end of any scheme was re1uired to "e sold "y the retailers
"efore they ordered fresh stocks$ In case of "onus packs scheme- leftover stock was often
dismantled %cut open "uy one get one free& and sold them individually as a regular soap$ 0his
approach of the company leads to misappropriation which in turn could result in adverse
"rand image$
Gi#ts #or Retai"er oti:ation
!ompanies at times were rewarding retailers "y giving free gifts like thermos flasks
or clocks if they sold more than certain 1uantity in a given period$ !ompanies were making a
half+hearted effort to motivate retailers$
Per*e%tions about ass e!ia announ*eents
Retailers viewed that whenever sales promotion scheme was announced on 05- it
created pull and they were more than willing to stock such "rands$ 'or example Medimix and
8ettol contest was not advertised on 05- hence there was very little awareness leading to
unsold stock till @ months$ *hile Lux #old Star which was heavily promoted on 0$5$ is
recalled even today$
Post Prootion Be$a:iour
Retailers o"served that in most cases sales promotion scheme on a "rand might
encourage a "uyer to switch a "rand temporarily "ut he would revert "ack to original "rand
after promotion$
Han!"in& Prob"es
Many a timeNs retailers had to handle various sales promotion offers simultaneously in
a category and also across categories and there was no formal communication planning either
from the dealer or the company$ Remem"ering each offer and handling was a pro"lem
especially for a small retailer which was often an as one+man show$
Sa"es Prootion #ro t$e Consuers %oint o# :ie;(
+i""in&ness to bu' on sa"es %rootion o##er
Sixty per cent of the sample did not show willingness to "uy a "rand due to promotion
while 397 showed willingness and 697 were not sure$ 0his indicates that when 397 showed
willingness and 697 consumers who were not sure- these groups might "e lured through
innovative and lucrative sales promotion offer$
Abi"it' to in!u*e tria"
'orty per cent of the respondents had said that sales promotion had the a"ility to
induce trial which reinforces the a"ove inference$
,on&)ter i%a*t
In order to understand a"ility of the promotions to increase long+term sales-
respondents were asked a"out continuity of purchase of a "rand after the withdrawal of
promotion$ Eighty per cent of the respondents indicated that they would not continue$ )ut
297 said they would$ 0hus- it could "e inferred that promotions in this category %low
involvement products& might encourage trial and "rand switching "ut not long term loyalty$
Pre#eren*e o# S*$eesD
Price off was the most preferred type of scheme$ Maximum customersN ranked price+
offs as num"er one or two$
Per*ei:e! Dua"it'D
Ma,ority of respondents had a perception that the 1uality of the promoted "rands
remained the same during promotion- while some of them felt that it was inferior than "efore$
It can "e inferred that promotions were not leading to negative "rand 1uality perceptions$ It is
found that some customer strongly preferred to "uy their regular "rand and said that sales
promotion would not weaken their loyalty towards the "rand$
Per*e%tions re&ar!in& un!er"'in& *o%an' oti:ations
Fn tapping perceptionsN regarding underlying company motivations for sales
promotion- Ito increase salesJ was ranked highest followed "y Ito attract switchersJ and Ito
sell excess stocksJ$ *hile providing value to customersJ and
Ito reinforce company imageJ were ranked lowest$ 0his indicates that consumers "elieved
that companies were undertaking such activities only for their own "enefit and not for the
"enefit of consumers$
'indings from retailer and consumer perception studies- it is evident that there was a
matching of perceptions regarding nature of scheme %price offs as most preferred type of
scheme mentioned "y consumers and retailersN perceptions a"out consumer preferences&$
Since retailers o"serve consumers in store "ehaviour were fre1uently and directly- their
perceptions regarding providing consumer "ehaviour are likely to "e accurate$ Such inputs
from the retailers would "e useful to companies$
0he retailers had the perception that those schemes which were announced through mass
media had "etter response$ 0his was reinforced "y the consumer survey which showed that
recall in case of heavily promoted schemes on 05 was found to "e very high$
RetailersN prediction of companiesN motivation for offering sales promotion were matching
with the consumer perception regarding the same$ 0hus "oth viewed that companies were
using sales promotion activities mainly to increase short term sales or encourage switching or
selling excess stock and not really to give value "enefit or enhance(reinforce "rand(company
image$
C$err' Pi*5in&
Merriam+*e"ster 8ictionary defines cherry picking as Iselecting the "est or most desira"leJ
or to descri"e one idiom with another Itaking the pick of the litter$J 0he term cherry picking
is used to descri"e the "ehavior of "oth sellers and "uyers in a variety of settings$ Sometimes
the phrase is used to descri"e a seller who is selective a"out which customers they wish to
serve$
'or example- Southwest Airlines cherry picks price sensitive travelers who place little
premium on standard airline perks and 8ell !omputer cherry picks customers who are
capa"le of "uying over the Internet and are savvy enough to make the necessary
customi/ation choices without much hand holding$ )oth of these firms choose not to serve
other customers with a higher willingness to pay "ecause it would re1uire significant changes
to efficient operating models$
0he !am"ridge International 8ictionary of Idioms defines cherry picking as choosing Ionly
the "est people or things in a way that is not fairJ- as when financial institutions and
insurance companies are vilified "ecause they refuse to serve high+risk populations$ 0he term
also descri"es "ehavior of "uyers who are selective a"out which products or services they
purchase at what locations and prices$ In "oth the seller and "uyer contexts- the essential
meaning of cherry picking is the sameT take the "est and leave the rest$
IInstead of going to the same outlet each week- every week- to complete their grocery
shopping- %ri*e)*ons*ious *onsuers o#ten :isit ore t$an one store in sear*$ o# s%e*ia"
%ri*es E a bar&ain)$untin& %ra*ti*e 5no;n in t$e in!ustr' as F*$err')%i*5in&.?J
%Mogelonsky 6??:&
Consumer Reports recommends that smart shoppers Is*rutiniGe t$e #oo!)!a' a!s an!
F*$err' %i*5? t$e s%e*ia"s-J noting that 297 of its readers show little loyalty among
supermarkets %!onsumer Reports 6?AA&
)4SER SI8E !ERRS PI!GI>#
*I0I> S0FRE
Levy and *it/ %299:& define cherry pickers who visit the store and only "uy
merchandise sold at "ig discounts$
)E0*EE> S0FRES
0he typical shopper visits the supermarkets 2$2 times per week "ut shops 3+: different
chains on a regular "asis- creating plenty of opportunities to cherry pick$
!ERRS PI!GI># S0RA0E#IES
S*I0! S0FRES A!RFSS *EEGS
8ominickNs one week ,ewel the next
S*I0! S0FRES *I0I> A 8AS FR *EEG
8ominickNs and ,ewel the same day or week
F4R FPERA0IF>ALIUA0IF>
5isit two or more stores on the same shopping day
Reduces the likelihood of confusing true cherry picking with fill in trips
C"assi#i*ation o# S$o%%er T'%es
RE'D Research paper on cherry picking "y Edward !ox and Stephen och
KEY FINDINGS
Q.1 Do you purchase the same brand every time?
Statistics
SOAP TOOTHPASTE
PACKED
MASALA PICKLE
MOSQUITO
REPELLENT
HOUSE
CLEANING
PRODUCTS
N Valid 80 60 45 35 30 65
Missin !! 4! 5" 6" "! 3"
Frequency Table
SOAP
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s !0 ./06 !500 !500
n1 60 5808 "500 .0000
T1*al 80 "804 .0000
Missin 000 !0 ./06
S)s*%, ! !00
T1*al !! !.06
T1*al .0! .0000
TOOTHPASTE
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s 35 3403 5803 5803
n1 !5 !405 4.0" .0000
T1*al 60 5808 .0000
Missin 000 40 3/0!
S)s*%, ! !00
T1*al 4! 4.0!
T1*al .0! .0000
PACKED MASALA
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s !0 ./06 4404 4404
n1 !5 !405 5506 .0000
T1*al 45 440. .0000
Missin 000 55 530/
S)s*%, ! !00
T1*al 5" 550/
T1*al .0! .0000
PICKLE
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s !0 !000 5"0. 5"0.
n1 .5 .500 4!0/ .0000
T1*al 35 3500 .0000
Missin 000 65 6500
T1*al .00 .0000
MOSQUITO EPELLENT
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s !5 !405 8303 8303
n1 5 40/ .60" .0000
T1*al 30 !/04 .0000
Missin 000 "0 6806
S)s*%, ! !00
T1*al "! "006
T1*al .0! .0000
HOUSE CLEANIN! PODUCTS
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s 30 !/04 460! 460!
n1 35 3403 5308 .0000
T1*al 65 630" .0000
Missin 000 35 3403
S)s*%, ! !00
T1*al 3" 3603
T1*al .0! .0000

INTERPRETATION:
SoapD <;7 of the respondents said that they do not purchase the same "rand every time while
2; 7 said that they do purchase the same "rand every time$
0oothpasteD :6$<7 of the respondents said that they do not purchase the same "rand every
time while ;A$3 7 said that they do purchase the same "rand every time$
Packed MasalaD ;;$67 of the respondents said that they do not purchase the same "rand
every time while ::$? 7 said that they do purchase the same "rand every time$
PickleD :2$?7 of the respondents said that they do not purchase the same "rand every time
while ;<$6 7 said that they do purchase the same "rand every time$
Mos1uito RepellentD 6@$<7 of the respondents said that they do not purchase the same "rand
every time while A3$3 7 said that they do purchase the same "rand every time$
ouse !leaning ProductsD ;3$A7 of the respondents said that they do not purchase the same
"rand every time while :@$2 7 said that they do purchase the same "rand every time$
FverallD ;27 of the respondents said that they do not purchase the same "rand every time
while :A 7 said that they do purchase the same "rand every time$
0he consumer "ehaviour related to "rand switching varies a lot across different products with
<; 7 of consumers in the soap category agreeing that they switch "rands regularly while only
6@$<7 of consumers in the mos1uito repellent category agreed that they switch "rands
regularly$ Fverall- to get a fair idea an average of these responses show that ;27 of the
consumers switch "rands for one or the other reasons while :A7 of the consumers stick to the
same "rand$
Q.2 Why do you change your brand?
Case Pr"cessin# Su$$ary
Cas%s
Valid Missin T1*al
N P%$(%n* N P%$(%n* N P%$(%n*
23) (3an% s1a4 5 in(1,% "5 "3056 !5 !6056 .00 .00006
23) (3an% *11*34as*% 5
in(1,%
60 58086 40 4.0!6 .00 .00006
23) (3an% 4a(7%d ,asala 5
in(1,%
46 450.6 54 540/6 .00 .00006
23) (3an% 4i(7l% 5 in(1,% 35 34036 65 650"6 .00 .00006
23) (3an% ,1s&'i*1 $%4%ll%n*
5 in(1,%
30 !/046 "0 "0066 .00 .00006
23) (3an% (l%anin 4$1d'(*s 5
in(1,%
65 630"6 35 36036 .00 .00006
%&y c&an#e s"a' ( inc"$e Cr"ss tabulati"n
C1'n*
in(1,%
T1*al l%ss *3an !5000 !6000850000 5.0008"5000 ,1$% *3an "5000
23) (3an% s1a4 s(3%,%s .0 .0 4 5 !/
*$ial 0 0 0 0 5
9%**%$ &'ali*) .0 .5 .. .0 4.
T1*al !0 !5 .5 .5 "5
%&y c&an#e t""t&'aste ( inc"$e Cr"ss tabulati"n
in(1,%
T1*al l%ss *3an !5000 !6000850000 5.0008"5000
,1$% *3an
"5000
:3)(3an%*11*34as*% s(3%,%s 6 .8 . 0 !5
*$ial 0 3 3 0 6
9%**%$
&'ali*)
4 4 .. .0 !/
T1*al .0 !5 .5 .0 60
PACKED MASALA ( inc"$e Cr"ss tabulati"n
C1'n*
in(1,%
T1*al l%ss *3an !5000 !6000850000 5.0008"5000 ,1$% *3an "5000
PACKED MASALA s(3%,%s .. 3 4 0 .8
*$ial " 0 0 5 .!
9%**%$ &'ali*) ! 3 6 5 .6
T1*al !0 6 .0 .0 46
PICKLE ( inc"$e Cr"sstabulati"n
C1'n*
in(1,%
T1*al l%ss *3an !5000 !6000850000 5.0008"5000 ,1$% *3an "5000
PICKLE s(3%,%s .0 5 . 0 .6
*$ial 3 0 0 0 3
9%**%$ &'ali*) ! 5 4 5 .6
T1*al .5 .0 5 5 35
%&y c&an#e $"squit" re'ellent ( inc"$e Cr"ss tabulati"n
C1'n*
in(1,%
T1*al l%ss *3an !5000 !6000850000 5.0008"5000
:3)(3an%,1s&'i*1 *$ial 5 0 0 5
9%**%$ &'ali*) .0 .0 5 !5
T1*al .5 .0 5 30
%&y c&an#e cleanin# ( inc"$e Cr"ss tabulati"n
C1'n*
in(1,%
T1*al l%ss *3an !5000 !6000850000 5.0008"5000 ,1$% *3an "5000
:3)(3an%(l%anin s(3%,%s .0 5 .5 0 30
*$ial .0 0 0 5 .5
9%**%$ &'ali*) 5 5 0 .0 !0
T1*al !5 .0 .5 .5 65
INTERPRETATION:
Soap: The cross tabulation of the reason of changing a brand ith the
income of the respondent in the soap category shos that there is a
change in the reason ith increasing income of the respondent. ! out of
1" respondents of income less than 2#$""" say the they change brand
due to the promotional schemes hile only # out of 1# respondents of
more than %#$""" category claim so.
Toothpaste: The cross tabulation of the reason of changing a brand ith
the income of the respondent in the toothpaste category shos that there
is a change in the reason ith increasing income of the respondent. ! out
of 1" respondents of income less than 2#$""" say the they change brand
due to the promotional schemes hile only " out of 1" respondents of
more than %#$""" category claim so.
&ac'ed (asala: The cross tabulation of the reason of changing a brand
ith the income of the respondent in the pac'ed masala category shos
that there is a change in the reason ith increasing income of the
respondent. 11 out of 2" respondents of income less than 2#$""" say the
they change brand due to the promotional schemes hile only " out of 1"
respondents of more than %#$""" category claim so.
&ic'le: The cross tabulation of the reason of changing a brand ith the
income of the respondent in the pic'le category shos that there is a
change in the reason ith increasing income of the respondent. 1" out of
1# respondents of income less than 2#$""" say the they change brand
due to the promotional schemes hile only " out of # respondents of more
than %#$""" category claim so.
(os)uito *epellent: The cross tabulation of the reason of changing a
brand ith the income of the respondent in the mos)uito repellent
category shos that there is a change in the reason ith increasing
income of the respondent. 1" out of 1# respondents of income less than
2#$""" say the they change brand due to the better )uality hile all #
respondents of more than %#$""" category claim so.
+ouse ,leaning &roducts: The cross tabulation of the reason of changing
a brand ith the income of the respondent in the house cleaning products
category shos that there is a change in the reason ith increasing
income of the respondent. 1" out of 2# respondents of income less than
2#$""" say the they change brand due to the promotional schemes hile
only " out of 1# respondents of more than %#$""" category claim so.
+ence$ a gradual shift toards better )uality rather than
promotional schemes as a reason for changing a brand is seen as the
income slab increases. Though the shift varies from product to product but
a general trend toards better )uality is seen as income increases.
Q.- Was there any promotional scheme ith this brand?
Frequencies
Statistics
SOAP TOOTHPASTE
PACKED
MASALA PICKLE
MOSQUITO
REPELLENT
HOUSE
CLEANING
PRODUCTS
N Valid 80 60 45 35 30 65
Missin !! 4! 5" 6" "! 3"
Frequency Table
SOAP
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s 60 5808 "500 "500
n1 !0 ./06 !500 .0000
T1*al 80 "804 .0000
Missin 000 !0 ./06
S)s*%, ! !00
T1*al !! !.06
T1*al .0! .0000
TOOTHPASTE
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s 60 5808 .0000 .0000
Missin 000 40 3/0!
S)s*%, ! !00
T1*al 4! 4.0!
T1*al .0! .0000
PACKED MASALA
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s 30 !/04 660" 660"
n1 .5 .40" 3303 .0000
T1*al 45 440. .0000
Missin 000 55 530/
S)s*%, ! !00
T1*al 5" 550/
T1*al .0! .0000
PICKLE
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s !0 ./06 5"0. 5"0.
n1 .5 .40" 4!0/ .0000
T1*al 35 3403 .0000
Missin 000 65 630"
S)s*%, ! !00
T1*al 6" 650"
T1*al .0! .0000
MOSQUITO EPELLENT
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s .5 .40" 5000 5000
n1 .5 .40" 5000 .0000
T1*al 30 !/04 .0000
Missin 000 "0 6806
S)s*%, ! !00
T1*al "! "006
T1*al .0! .0000
HOUSE CLEANIN! PODUCTS
#$%&'%n() P%$(%n* Valid P%$(%n*
C','la*i-%
P%$(%n*
Valid )%s 60 5808 /!03 /!03
n1 5 40/ "0" .0000
T1*al 65 630" .0000
Missin 000 35 3403
S)s*%, ! !00
T1*al 3" 3603
T1*al .0! .0000

Research Methodology
F)QE!0I5ES F' 0E S048S
6$ 0o profile the cherry pickers$
2$ 0o study the cherry picking sales pattern$
3$ 0o find out whether !herry pickers increases the "asket si/e$
:$ 0o find out whether cherry pickers increase the retail turnover$
RESEAR! C4ES0IF>S
V *ho are the cherry pickersW
V ow do these customers cherry pick productsW
*hat are the implications on the total spending of these customersW
8o such consumers increase the retail turnover "y "uying more 1uantity for availing
the promotional schemesW
SPF0ESIS
Ho( 0he amount spent more to avail the scheme is not dependent on the income of the "uyer$
H@( 0he amount spent more to avail the scheme is dependent on the income of the "uyer$
0SPE F' RESEAR! 8ESI#>
8escriptive research was used for the pro,ect$
C4A>0I0A0I5E RESEAR!
A survey of customers leaving )ig )a/aar was done so that all details of the shopping trip
were fresh in their minds and hence accurate price data could "e collected$ 0he survey was
done "y 1uestionnaire which comprised of closed ended 1uestions$
SF4R!ES F' 8A0A
Primary data was collected through survey of customers at )ig )a/aar$
Secondary data was collected from previous research "y various authors on this topic- retail
"i/ maga/ine and articles and reports on the internet$
ME0F8FLF#S
0he method used for survey was structured 1uestionnaire$
RESEAR! 0FFL
Cuestionnaire
C4ES0IF>>AIRE 8ESI#>
0he 1uestionnaire comprised of *"ose! en!e! Auestions$
SAMPLE 8ESI#>
SAMPLE SIUED 699 samples
SAMPLI># 0E!>IC4ED !onvenience sampling$
PILF0 S048S
A pilot survey of ; customers at )ig )a/aar had "een done to ensure that the 1uestionnaire is
correct and relevant of research o",ectives$
S4R5ES
Fnce pilot study is over- actual survey will "e conducted$
8A0A A>ALSSIS
0he researcher has used inferential statistics %through SPSS& in order to draw a conclusion$
Result of the study has "een put in ta"les and graphs for easy understanding of the findings of
the research$
EXPE!0E8 !F>0RI)40IF> F' 0E S048S
0his pro,ect will help in giving a fresh insight on this topic on which research has "een done
very rarely in India$ It will help to understand the overall pattern of this activity and its
impact on the marketing strategies of various 'M!# products$ Also the profiling of this set of
consumers can help in framing the strategies accordingly$
REASF> 'FR 0AGI># 4P 0E PRFQE!0
0he researcher has done his )!A and currently pursuing his M)A$ 0his topic has not "een
researched upon extensively in India and hence promises uni1ue exposure and experience to
the researcher and hence this pro,ect has "een undertaken$
CONC,USIONS
More than half of the population of consumers switch "rands of 'M!# products due to some
reason or the other$ %;27 of the consumers agreed that they switch "rands regularly$&
0he percentage of consumers switching "rands varies across different 'M!#
products$ %<;7 of respondents under soap category agreed that they switch "rands
regularly while only 6@$<7 of respondents under mos1uito repellent category agreed
to it$&
0he reason of switching "rands varies with the income of the "uyer$ 0he reason of
switching "rand tends towards "etter 1uality as the income of the individual increases$
0he reason with lower income groups "eing schemes and with higher income groups
"eing "etter 1uality of the product$ 0hough the shift varies from product to product
"ut a general trend towards "etter 1uality is seen as income increases$
Schemes giving instant cash "enefit are preferred "y the consumers$ Most of the
"uyers purchase products with price promotion schemes with ?: 7 of the "uyers
"ought products with price promotion$
0he "uyers save "ig amounts "y availing the scheme$ ;@7 of the "uyers save more
than Rs$ 29 on a single product during a single shopping trip- 2A7 saved Rs$69+6; on
a single product while 627 save Rs$6;+29 on a single product$
0he "uyers in return have to "uy more 1uantity of the product to avail the scheme and
save the a"ove mentioned amounts$ 3: 7 of the respondents said that they had to "uy
more than intended to avail the scheme$
Again the 1uantity need to "ought more to avail the scheme varies across products
and the scheme offered "y the "rand$6997 of respondents under soap category agreed
that they had to "uy more than intended to avail the scheme "ut only <7 of the
respondents under house cleaning products agreed to it$
So it can "e concluded that the "uyer increase the "asket si/e in the process to avail
the promotional schemes and get value for money$
As the "uyer needs to "uy more to avail the scheme it directly affects the total amount
they spent to "uy the product$ AA7 of the "uyers agreed that they had to spend more
than Rs$29 to avail the scheme$
0he most preferred promotional activity "y the consumers is price promotion
followed "y loyalty incentive- free gifts- coupons and refunds "eing the least preferred
promotional activity$
0he amount spent more to avail the scheme has association with the income of the
"uyer$ *e can conclude from this that the "uyer spends more in accordance to his
income rather than attractiveness of the scheme$
ence the amount spent more to avail the scheme is dependent on the income of the
"uyer$

RECOMMENDATIONS
0he "rands should come up with promotional activities which give instant cash
"enefit to the consumers as such promotions are preferred "y them$
0he consumers do not mind "uying more 1uantity to avail the offers hence the "rands
can come up with schemes wherein the consumers need to "uy more 1uantity to avail
the schemes offered$
0he amount spent more to avail schemes with 'M!# has association with the income
of the "uyer and hence the target set of consumers should "e studied "efore coming
up with the promotions$
0he reason of switching "rands does tend towards "etter 1uality "ut even higher
income groups indulge into cherry picking and hence the scope should not "e limited
to lower income groups$
0he retailers can come up with their own promotion schemes if not offered "y "rands$
Such schemes will increase foot falls at the store and hence the retailerNs sales$

ANNE3URE

PERSF>AL!A
RE PA!GE8 'FF8
F4SEFL8
PRF84!0S
C4ES0IF>S
PAR0I!4L
ARS SFAP
0FF0

PAS0E
PA!GE
8
MASAL
A
PI!GL
E
MFSC4
I0F
REPELL
E>0
F4SE
!LEA>I>#
PRF84!0S

*hich of these products
did you "uy todayW +

*hich "rand did you "uy
todayW


8o you purchase the
same "rand every timeW SES

>F



*hy do you change your
"randW S!EMES
0RIAL

)E00ER
C4ALI0S

LF*ER
PRI!E

*as there any
promotional scheme with
this "randW SES
>F

If - yes which one W
Price
Promotion
!oupons
'ree #ifts
Refunds
Loyalty

Incentive
ow much did you save
"y availing this scheme W
9+; Rs$
% I> RS$& ;+69 Rs$
69+6; Rs$
6;+29 Rs$
MFRE 0A>
29

8id you have to "uy more
1ty than intended to avail
the schemeW
SES
>F
8id you spend more than
intended to avail the
schemeW
SES
>F

If yes how much W 9+; Rs$
%I> RS$& ;+69 Rs$
69+6; Rs$
6;+29 Rs$
MFRE 0A>
29


*hich promotional
activities
Price
Promotion

do you prefer W
%Rank the top : preferred
activities +
!oupons
Rank 6 for the most
preferred and : for least
preferred&
'ree #ifts
Refunds
Loyalty
Incentive
PERSF>AL I>'FRMA0IF>D
F!!4PA0IF> D ouse *ife Employed Self Employed Retired
>o$ of mem"ers in the familyD OOOOOOOOOOOOO
MF>0LS I>!FMED Y 2;-999 2@-999+;9-999 ;6-999+<;-999 R <;-999
Shopping 8ays D MF> 04E *E8 04 'RI SA0 S4>
BIB,IOGRAPHY
httpD((www$in"ics$co$kr(english(reference('inalZReports(I>)I!SZ'M!#ZReport$pdf
httpD((www$assocham$org(ar"(afp(299?(A'PZFct299?ZProspectsZinZtheZ'M!#Zsect
or$pdf
httpD((www$indiain"usiness$nic$in("usiness+news(news+"ulletin(oct63+6?729Z9?$pdf
httpD((www$moneycontrol$com(newsZhtmlZfiles(newsZattachment(299A('M!#
729Sector729Report6$pdf
httpD((www$fddiindia$com(pu"lications(newsletter(299?(99<(Quly('88I>LZ26;Z6<$9<
$299?$pdf