Research Methodology: Objectives of The Study

Research Methodology
OBJECTIVES OF THE STUDY
1. To profile the cherry pickers.

2. To study the cherry picking sales pattern.
3. To find out whether Cherry pickers increases the basket size.
4. To find out whether cherry pickers increase the retail turnover.
RESEARCH QUESTIONS
 Who are the cherry pickers?

 How do these customers cherry pick products?
 What are the implications on the total spending of these customers?
 Do such consumers increase the retail turnover by buying more quantity for availing
the promotional schemes?
HYPOTHESIS
Ho: The amount spent more to avail the scheme is not dependent on the income of
the buyer.
H1: The amount spent more to avail the scheme is dependent on the income of the
buyer.
TYPE OF RESEARCH DESIGN

Descriptive research was used for the project.
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QUANTITATIVE RESEARCH
A survey of customers leaving Big Bazaar was done so that all details of the shopping trip
were fresh in their minds and hence accurate price data could be collected. The survey was
done by questionnaire which comprised of closed ended questions.
SOURCES OF DATA
Primary data was collected through survey of customers at Big Bazaar.
Secondary data was collected from previous research by various authors on this topic, retail
biz magazine and articles and reports on the internet.
METHODOLOGY
The method used for survey was structured questionnaire.
RESEARCH TOOL
Questionnaire
QUESTIONNAIRE DESIGN
The questionnaire comprised of closed ended questions.
SAMPLE DESIGN
SAMPLE SIZE: 100 samples
SAMPLING TECHNIQUE: Convenience sampling.
PILOT STUDY
A pilot survey of 5 customers at Big Bazaar had been done to ensure that the questionnaire is
correct and relevant of research objectives.
SURVEY
Once pilot study is over, actual survey will be conducted.
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DATA ANALYSIS
The researcher has used inferential statistics (through SPSS) in order to draw a conclusion.
Result of the study has been put in tables and graphs for easy understanding of the findings of
the research.
EXPECTED CONTRIBUTION OF THE STUDY

This project will help in giving a fresh insight on this topic on which research has been 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 FMCG products. Also the profiling of this set
of consumers can help in framing the strategies accordingly.
REASON FOR TAKING UP THE PROJECT

The researcher has done his BBA and currently pursuing his MBA. This topic has not been
researched upon extensively in India and hence promises unique exposure and experience to
the researcher and hence this project has been undertaken.
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INTRODUCTION TO THE INDUSTRY
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products, soft drinks, tissue paper, and chocolate bars.
Indiaʹs FMCG 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
Household Care, Personal Care and Food & Beverages.
The total FMCG market is in excess of Rs. 85,000 Crores. It iscurrently growing at double
digit growth rate and is expected to maintain a high growth rate. FMCG Industry is
characterized by a well established distribution network, low penetration levels, low
operating cost, lower per capita consumption and intense competition between the organized
and unorganized segments.
The Rs 85,000-crore Indian FMCG industry is expected to register a healthy growth in the
third quarter of 2008-09 despite the economic downturn. The industry is expected to register
a 15% growth in Q3 2008-09 as compared to the corresponding period last year. Unlike other
sectors, the FMCG industry did not slow down since Q2 2008. the industry is doing pretty
well, bucking the trend. As it is meeting the every-day demands of consumers, it will
continue to grow.
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Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd,
with domination in their key categories, have improved their market shares and outperformed
peers in the FMCG sector. This has been also aided by the lack of competition in the
respective categories. Single product leaders such as Colgate Palmolive India Ltd and
Britannia Industries Ltd have also witnessed strength in their respective categories, aided by
innovations and strong distribution. Strong players in the economy segment like Godrej
Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share
improvement, with revived growth in semi-urban and rural markets.
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Industry Category and Products
Household Care
Personal Wash:-
The market size of personal wash is estimated to be around Rs. 8,300 Cr. The personal wash
can be segregated into three segments: Premium, Economy and Popular. The penetration
level of soaps is ~92 per cent. It is available in 5 million retail stores, out of which, 75 per
cent are in the rural areas. HUL is the leader with market share of ~53 per cent; Godrej
occupies second position with market share of ~10 per cent. With increase in disposable
incomes, growth in rural demand is expected to increase because consumers are moving up
towards premium products. However, in the recent past there has not been much change in
the volume of premium soaps in proportion to economy soaps, because increase in prices has
led some consumers to look for cheaper substitutes.
Detergents:-
The size of the detergent market is estimated to be Rs. 12,000 Cr. Household care segment is
characterized by high degree of competition and high level of penetration. With rapid
urbanization, emergence of small pack size and sachets, the demand for the household care
products is flourishing. The demand for detergents has been growing but the regional and
small unorganized players account for a major share of the total volume of the detergent
market. In washing powder HUL is the leader with ~38 per cent of market share. Other major
players are Nirma, Henkel and Proctor & Gamble.
Personal Care
Skin Care:-
The total skin care market is estimated to be around Rs. 3,400 Cr. The skin care market is at a
primary stage in India. The penetration level of this segment in India is around 20 per cent.
With changing life styles, increase in disposable incomes, greater product choice and
availability, people are becoming aware about personal grooming. The major players in this
segment are Hindustan Unilever with a market share of ~54 per cent, fol-lowed by CavinKare
with a market share of ~12 per cent and Godrej with a market share of ~3 per cent.
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Hair Care:-
The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care market can be
segmented into hair oils, shampoos, hair colorants & conditioners, and hair gels. Marico is
the leader in Hair Oil segment with market share of ~ 33 per cent; Dabur occu-pies second
position at ~17 per cent.
Shampoos:-
The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the penetration
level of only 13 per cent in India. Sachet makes up to 40 per cent of the total shampoo sale. It
has low penetration level even in metros. Again the market is dominated by HUL with around
~47 per cent market share; P&G occupies second position with market share of around ~23
per cent. Antidandruff segment constitutes around 15 per cent of the total shampoo market.
The market is further expected to increase due to increased marketing by players and
availability of shampoos in affordable sachets.
Oral Care:-
The oral care market can be segmented into toothpaste - 60 per cent; toothpowder - 23 per
cent; toothbrushes - 17 per cent. The total toothpaste market is estimated to be around Rs.
3,500 Cr. The penetration level of toothpowder/toothpaste in urban areas is three times that of
rural areas. This segment is dominated by Colgate-Palmolive with market share of ~49 per
cent, while HUL occupies second position with market share of ~30 per cent. In
toothpowders market, Colgate and Dabur are the major players. The oral care market, es-
pecially toothpastes, remains under penetrated in India with penetration level ~50 per cent.
Food & Beverages

Food Segment :-
The foods category in FMCG is gaining popularity with a swing of launches by HUL, ITC,
Godrej, and others. This category has 18 major brands aggregating Rs. 4,600 Cr. Nestle and
Amul slug it out in the powders segment. The food category has also seen innovations like
softies in ice creams, ready to eat rice by HUL and pizzas by both GCMMF and Godrej
Pillsbury.
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Tea :-
The major share of tea market is dominated by unorganized players. More than 50 per cent of
the market share is capture by unorganized players. Leading branded tea players are HUL and
Tata Tea.
Coffee :-
The Indian beverage industry faces over supply in segments like coffee and tea. However,
more than 50 per cent of the market share is in unpacked or loose form. The major players in
this segment are Nestlé, HUL and Tata Tea.
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Growth Prospect
Large Market
India has a population of more than 1.150 Billions which is just behind China. According to
the estimates, by 2030 India population will be around 1.450 Billion and will surpass China
to become the World largest in terms of population. FMCG Industry which is directly related
to the population is expected to maintain a robust growth rate.
Spending Pattern
An increase is spending pattern has been witnessed in Indian FMCG market. There is an
upward trend in urban as well as rural market and also an increase in spending in organ-ized
retail sector. An increase in disposable income, of household mainly because of in-crease in
nuclear family where both the husband and wife are earning, has leads to growth rate in
FMCG goods.
Changing Profile and Mind Set of Consumer

People are becoming conscious about health and hygienic. There is a change in the mind set
of the Consumer and now looking at “Money for Value” rather than “Value for Money”. We
have seen willingness in consumers to move to evolved products/ brands, because of
changing lifestyles, rising disposable income etc. Consumers are switching from economy to
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premium product even we have witnessed a sharp increase in the sales of packaged water and
water purifier. Findings according to a recent survey by A. C. Nielsen shows about 71 per
cent of Indian take notice of packaged goodsʹ labels containing nutritional information
compared to two years ago which was only 59 per cent.
Sources: Naukri Hub, IBEF, Chennai Online
Sources: Statistical Outline of India (2001-02), NCAER
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Advantages To The Sector
Governmental Policy
Indian Government has enacted policies aimed at attaining international competitiveness
through lifting of the quantitative restrictions, reducing excise duties, automatic foreign in-
vestment and food laws resulting in an environment that fosters growth. 100 per cent ex-port
oriented units can be set up by government approval and use of foreign brand names is now
freely permitted.
Central & State Initiatives

Recently Government has announced a cut of 4 per cent in excise duty to fight with the
slowdown of the Economy. This announcement has a positive impact on the industry.
But the benefit from the 4 per cent reduction in excise duty is not likely to be uniform across
FMCG categories or players. The changes in excise duty do not impact cigarettes (ITC,
Godfrey Phillips), biscuits (Britannia Industries, ITC) or ready-to-eat foods, as these prod-
ucts are either subject to specific duty or are exempt from excise. Even players with manu-
facturing facilities located mainly in tax-free zones will also not see material excise duty
savings. Only large FMCG-makers may be the key ones to bet and gain on excise cut.
Foreign Direct Investment (FDI)

Automatic investment approval (including foreign technology agreements within specified
norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate
Bodies (OCBs) investment, is allowed for most of the food processing sector except malted
food, alcoholic beverages and those reserved for small scale industries (SSI). There is a
continuous growth in net FDI Inflow. There is an increase of about 150 per cent in Net Inflow
for Vegetable Oils & Vanaspati for the year 2008.
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As their incomes and standards of living improve, Indian customers’ for FMCGs are shifting
towards higher lifestyle categories like skin care, hair care, deodorants, convenience foods,
health foods etc.
In fact, skin care, hair care, deodorants, convenience foods, and health foods are expected to
experience notably higher growth than others in the near term, spurring various types of
MNC investments to improve their lifestyle products businesses.
• For personal care lifestyle products, consumers are becoming increasingly willing to pay
premium prices for them. This trend has compelled some companies to raise prices and
even create products aimed at the premium segment.
• In fact, deodorants, hair dyes and shampoos alone helped the FMCG industry to grow by
16% in 2007-08 (April-February), and 15% in the same period in 2006-079.
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Market Opportunities
Vast Rural Market

Rural India accounts for more than 700 Million consumers, or ~70 per cent of the Indian
population and accounts for ~50 per cent of the total FMCG market. The working rural
population is approximately 400 Millions. And an average citizen in rural India has less then
half of the purchasing power as compare to his urban counterpart. Still there is an untapped
market and most of the FMCG Companies are taking different steps to capture rural market
share. The market for FMCG products in rural India is esti-mated ~ 52 per cent and is
projected to touch ~ 60 per cent within a year. Hindustan Unilever Ltd is the largest player in
the industry and has the widest market coverage.
Export - “Leveraging the Cost Advantage”

Cheap labor and quality product & services have helped India to represent as a cost ad-
vantage over other Countries. Even the Government has offered zero import duty on capital
goods and raw material for 100% export oriented units. Multi National Companies out-source
its product requirements from its Indian company to have a cost advantage. India is the
largest producer of livestock, milk, sugarcane, coconut, spices and cashew apart from being
the second largest producer of rice, wheat, fruits & vegetables. It adds a cost advantage as
well as easily available raw materials.
Sectoral Opportunities
Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below:
Dairy Based Products

India is the largest milk producer in the world, yet only around 15 per cent of the milk is
processed. The organized liquid milk business is in its infancy and also has large long-term
growth potential. Even investment opportunities exist in value-added products like desserts,
puddings etc.
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Packaged Food
Only about 10-12 per cent of output is processed and consumed in packaged form, thus
highlighting the huge potential for expansion of this industry.
Oral Care
The oral care industry, especially toothpastes, remains under penetrated in India with
penetration rates around 50 per cent. With 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 by unorganized players. More than 50% of the market share is
capture by unorganized players highlighting high potential for organized players.
The Indian FMCG sector is the fourth largest sector in the economy with a total market size
in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a
wellestablished distribution network, intense competition between the organised and
unorganised segments and low operational cost. Availability of key raw materials, cheaper
labour costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.
Penetration level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the untapped market
potential. Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to branded
products.
Growth is also likely to come from consumer 'upgrading' in the matured product categories.
With 200 million people expected to shift to processed and packaged food by 2010, India
needs around US$ 28 billion of investment in the food-processing industry.
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Large domestic market
India is one of the largest emerging markets, with a population of over one billion. India is
one of the largest economies in the world in terms of purchasing power and has a strong
middle class base of 300 million.
Rural and urban potential

Rural-urban profile
Population 2001-02 (mn household) 53 135
Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/Villages) 3,768 6,27,000
Universe of Outlets (mn) 1 3.3
Source: Statistical Outline of India (2001-02), NCAER

Around 70 per cent of the total households in India (188 million) resides in the rural areas.
The total number of rural households are expected to rise from 135 million in 2001-02 to 153
million in 2009-10. This presents the largest potential market in the world. The annual size of
the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing
incomes at both the rural and the urban level, the market potential is expected to expand
further.
India - a large consumer goods spender

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on
personal care products. The large share of fast moving consumer goods (FMCG) in total
individual spending along with the large population base is another factor that makes
India one of the largest FMCG markets.
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Consumption pie:
Source: KSA Technopak Consumer Outlook 2004.
Source: Euro monitor.
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Change in the Indian consumer profile:
Source: Statistical Outline of India (2002-03).
Rapid urbanisation, 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
45 per cent of the population in India is below 20 years of age and the young population is set
to rise further. Aspiration levels in this age group have been fuelled by greater media
exposure, unleashing a latent demand with more money and a new mindset.
Demand-supply gap
Currently, 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. This
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 both the rural and urban areas indicates a market potential.
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INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS
Materials availability
India has a diverse agro-climatic condition due to which there exists a wide-ranging and large
raw material base suitable 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 & vegetables. India also has an ample supply of caustic soda and soda
ash, the raw materials in the production of soaps and detergents – India produced 1.6 million
tonnes of caustic soda in 2003-04. Tata Chemicals, one of the largest producers of synthetic
soda ash in the world is located in India. The availability of these raw materials gives
India the locational advantage.
Source: DIPP.
Apart from the advantage in terms of ample raw material availability, existence of low-cost
labour force also works in favour of India. Labour cost in India is amongst the lowest in
Asian countries. Easy raw material availability and low labour costs have resulted in a lower
cost of production. Many multi-nationals have set up large low cost production bases in India
to outsource for domestic as well as export markets.
Penetration and per capita consumption
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Rural - urban penetration (2002)
Source: HLL, Indian Readership Survey.
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Penetration level in most product categories like jams, tooth paste, skin care, hair wash etc in
India is low. The contrast is particularly striking between the rural and urban segments - the
average consumption by rural households is much lower than their urban counterparts. Low
penetration indicates the existence of unsaturated markets, which are likely to expand as the
income levels rise. This provides an excellent opportunity for the industry players
in the form of a vastly untapped market.
Moreover, per capita consumption in most of the FMCG categories (including the high
penetration categories) in India is low as compared to both the developed markets and other
emerging economies. A rise in per capita consumption, with improvement in incomes and
affordability and change in tastes and preferences, is further expected to boost FMCG
demand. Growth is also likely to come from consumer "upgrading", especially in the matured
product categories.
Household income distribution – 2003
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Household income distribution – 2015
Demand for FMCG products is set to boom by almost 60 per cent by 2007 and more than 100
per cent by 2015. This will be driven by the rise in share of middle class (defined as the
climbers and consuming class) from 67 per cent in 2003 to 88 per cent in 2015. The boom in
various consumer categories, further, indicates a latent demand for various product segments.
For example, the upper end of very rich and a part of the consuming class indicate a small but
rapidly growing segment for branded products. The middle segment, on the other hand,
indicates a large market for the mass end products.
The BRICs report indicates that India's per capita disposable income, currently at US$ 556
per annum, will rise to US$ 1150 by 2015 - another FMCG demand driver. Spurt in the
industrial and services sector growth is also likely to boost the urban consumption
demand.
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Rise in Indian disposable income (US$/annum)
MARKET OPPORTUNITIES FOR INVESTMENT
Source: HH Panel data
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According to estimates based on China's current per capitaconsumption, the Indian FMCG
market is set to treble fromUS$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The
dominanceof Indian markets by unbranded products, change in eating habits and the
increased affordability of the growing Indian population presents an opportunity to makers of
branded products, who can convert consumers to branded products.
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Swot Analysis
Strengths:
• Low operational costs
• Presence of established distribution networks in both urban and rural
areas
• Presence of well-known brands in FMCG sector
Weaknesses:
• Lower scope of investing in technology and achieving economies of
scale, especially in small sectors
• Low exports levels
• "Me-tooʺ products, which illegally mimic the labels of the established
brands. These products narrow the scope of FMCG products in rural
and semi-urban market.
Opportunities:
• Untapped rural market
• Rising income levels, i.e. increase in purchasing power of consumers
• Large domestic market- a population of over one billion.
• Export potential
• High consumer goods spending
Threats:
• Removal of import restrictions resulting in replacing of domestic
brands
• Slowdown in rural demand
• Tax and regulatory structure
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CONSUMER SALES PROMOTINAL ACTIVITIES
The importance of consumer sales promotion in the marketing mix of the fast moving
consumer goods (FMCG) category throughout the world has increased. Companies spend
considerable time in planning such activities. However, in order to enhance the effectiveness
of these activities, manufacturers should understand consumer and retailer interpretations of
their promotional activities. The study here pertains to consumer’s perceptions regarding
sales promotion. Some past researches have suggested that promotion itself has an effect on
the perceived value of the brand. This is because promotions provide utilitarian benefits such
as monetary savings, added value, increased quality and convenience as well as hedonic
benefits such as entertainment, exploration and self-expression.
Broadly speaking most of the companies using Marketing Mix which includes…
Price
Place (Channel of Distribution)
Product
Promotion
These are the four basic pillar of marketing mix. Most of the marketing strategies are built on
the basis of these criteria.
Promotion is one of the important elements of marketing mix. There are so many elements of
promotion such as …
Advertising
Direct Marketing
Public Relations
Sales Promotion
Traditionally, sales Promotions have been used by marketer to increase sales in the short
term. However, in the last few decades this communication tool has evolved and now is
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considered from a strategic point of view. For this reason, it is necessary to realize new
studies in this area and study how consumers evaluate sales promotions.
Sales promotions have grown in both importance and frequency over the past few decades.
Although an accurate estimate for total sales promotions expenditures does not exist, we can
be sure that the trend is up.
Sales promotion serves three essential roles: It informs, persuades and reminds prospective
customers about a company and its products. Even the most useful product or brand will be a
failure if no one knows that it is available. As we know, channels of distribution take more
time in creating awareness because a product has to pass through many hands between a
producer and consumers.
Therefore, a producer has to inform channel members as well as ultimate consumers about
the attributes and availability of his products. The second purpose of promotion is persuasion.
The cut throat competition among different products puts tremendous pressure on their
manufacturers and they are compelled to undertake sales promotion activities. The third
purpose of promotion is reminding consumers about products availability and its potential to
satisfy their needs.
From these elements Sales Promotion is the element which is in the focus of this project.
Further Sales Promotion is quite broad term it includes …
Trade Oriented Sales Promotion

Consumer Oriented Sales Promotion
Trade Oriented Sales Promotion:
Trade Oriented Sales Promotion aimed to motivate channel member of the company
and to encourage them to push company’s product. Trade Oriented 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
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distributors and retailers to carry a product and make an extra effort to push it to their
customers
Consumer Oriented Sales Promotion:
Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize
is given to motivate consumer to increase sales. Consumer Oriented Sales Promotion includes
Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Pack’s, Price-off, Event
marketing etc.
Definition:
For the purpose of this study, following definitions of sales promotion were kept in mind.
Kotler defines sales promotion as: “Sales promotion consists of a diverse collection of
incentive tools, mostly short-term designed to stimulate quicker and/or greater purchase of
particular products/services by consumers or the trade.”
Roger Strang has given a more simplistic definition i.e. “sales promotions are short-term
incentives to encourage purchase or sales of a product or service.”
Hence, 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.
Marketer’s uses consumer oriented sales promotion tools for the following reasons:
 To increase short term sales

 To induce trial
 To reduce inventory
 To establish a brand name
 To make cross selling
 To cope up with competition
 To avoid advertising clutter
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Tools of Consumer Oriented Sales Promotion:
There are so many tools or technique available to the marketers for achieving objective of
sales promotion. These tools should be used considering all other factors affecting such as
cost, time, competitors, availability of goods etc. These tools are as under…
1. Sampling
2. Couponing
3. Price-Off
4. Premium
5. Contest
6. Bonus Pack
Let’s have look at each tool…
1. Sampling:
Sampling is an important and very frequently used sales promotion tool. In sampling
consumers are given some quantity 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 established product. Marketers of packaged-goods products such as food, health
care items, cosmetics, and toiletries are heavy users of sampling.
Benefits of Sampling:
 From the consumers point of view Sampling is risk free way to try new
product.
 With the help of sampling scheme consumer can experience directly which is
not possible in any kind of advertisement.
 Sampling is best way to induce trial when product feature are very difficult to
describe through advertisement.
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Limitation of Sampling:
 The main drawback of sampling is of cost. While giving free sample it

requires financial soundness because otherwise company can’t afford it.
 While giving free sample it is necessary that brand have some unique quality.
 There is some product which requires long time to show result due to that it is
possible that the sampling scheme may not give benefit as expected. E.g. Skin
cream requires time to show result in this case it is possible that customer
might not respond when there is no such scheme.
Distribution of Samples:
 Door-to-door sampling: Here product is directly delivered to the prospects

residence. This distribution method is very expensive because of labour cost.
But it can be cost effective if marketer has exact information of target market.
 Sampling through the mail: This method can be used when product is
comparable small, lightweight, and nonperishable. In this method marketer
has control over where and when the product will be distributed. The main
drawback is of postal restrictions and increasing postal rates.
 In-store sampling: This method requires great support from retailers. This
method is more used in product like food, perfume, etc. Here table or booth
set-up in the store. In this method consumer can directly taste and than can
purchase.
 On-package sampling: In this method free sample is attached to another

product. This is cost effective method but it is also not free from drawback as
it is distributed only to consumers who purchase the item to which it is
attached the sample will not reach nonusers of the carrier brand.
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 Other Methods: To distribute free sample, methods like newspaper,
magazine are used. Send sample to those who call tall free number. Thorough
internet free sample can be distributed like film clip.
2. Couponing:
Couponing is the oldest and most widely used way of sales promotion. Coupons have been
used since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a
promotion tool because data shows that market for packaged goods increased from 16 billion
in 1968 to 310 billion in 1994. To boost up the sales not only manufacturer but retailers
personally can also used.
Benefits of Couponing:
 Couponing leads to price reductions so as to encourage price sensitive

customers.
 Non users can try a product which may leads to regular sales.
 Reduction in price reduces the consumer’s perceived risk associated with new
product such as financial risk, social risk, psychological risk etc.
 Coupons can be used not only for newly launched product but it can also use
for already established brand.
Limitations of Couponing:
 It is very difficult to estimate number of buyers.

 Cost of coupon and reduction given as per scheme leads to reduction in
over all profit of the firm.
 It may to target towards actual buyers, some other may got benefit of it
who are actually not interested.
 It can be manipulated by retailers and company may not get the result
expected.
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Distribution of coupons:
 The use of newspaper and magazine as a vehicle for distributing coupon was
used quite freely. Newspaper and magazine gives advantage of market
selectivity, shorter lead time and cost efficiency. But now a day these media is
not so much effective.
 Very widely used method for distributing coupon is placing coupons either
inside or on the outside of the package.
 Distribution through newspaper ‘freestanding inserts’ is by far the most
popular method for delivering coupons to consumers.
3. Price-off:
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 but the use
of this technique should be carefully considered in the current market situation.
Price-off is the most preferred sales promotion technique because consumers response very
positively to this scheme. Not only that but 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. Krack Jack offers 30% Price-off.
Generally Price-offs given from 10 to 50 percent of the regular price. Here reduction is
coming out from manufacturer’s profit margin, and not the retailer’s.
Benefits of Price-off:
 Since marketers bare the probable reduction in price at cost of his own profit
so he can control over the price-off scheme.
 Price-off can be a strong influence at the point of purchase when price
comparisons are being made.
 Price-off promotion can also encourage consumers to purchase larger
quantities.
Page | 31
Limitation of Price-off:
 Retailers may create pricing and inventory problems because retailers will not
accept packages with a specific price shown.
 To the company it is very expensive tool of sales promotion
4. Premium:
Premium is an offer of an item either free or at a low price .With consumer spending more,
companies will look to incentive programs as a way to maintain customer loyalty and capture
a greater share of the market. Creative and will-constructed premium promotions are known
delivering brand enhancing and sales building results.
Currently marketers ask themselves how to select a premium. There are some guidelines for
choosing a premium: Offer a brand that enhances your brand, and capitalize on the equity of
the brands logo by incorporating it into the premium item.
Two basic type of premium:
1. Free Premium: Free premiums are small gifts included in the product
package or sent to consumers who mail in a request along with a proof or
purchase. Free Premium includes toys, balls, trading card or other items. Free
premium have high impulse value and can provide an extra incentive to buy
the product. Even though it is also facing some problems like cost factor,
which results from the premium itself as well as from extra packaging that
may be needed. Again retailers can manipulate with customer and with the
free premium scheme.
2. Self-Liquidating Premiums: In Self-Liquidating Premiums consumers are

requires to pay some or all of the cost of the premium plus handling and
mailing costs. This tool is more useful to the retailers to gain extra profit as he
Page | 32
can purchase from manufacturer and than can sale it to final user at lower cost.
Here the aim is not to make profit on the premium item but rather just to cover
costs and offer a value to the consumer. Offering values to consumers through
the premium products can create interest in the brand and goodwill that
enhances the brands image.
Self-Liquidating Premiums also has some limitation. It has very low

redemption rate. Consumers are not always responds to this type of sales
promotion scheme.
5. Contest:
A contest is a promotion where consumers compete for prizes or money on the basis of skills
or ability. To the customers contest is more attractive because they have mentality that they
can win big prizes being offered. Contest usually provide
a purchase incentive by requiring a proof of purchase to enter or an entry form that is

available from a dealer or advertisement; some contest require consumers to read an ad or
package or visit a store display to gather information needed to enter. Marketers must be
careful not to make their contests too difficult to enter, as doing so might discourage
participation among key prospects in the targets audience.
There is another term called “Sweepstakes” which is promotion where winners are
determined purely by chance; it does not require a proof of purchase as condition for entry.
Entrants need only submit their names for the prize drawing. It is easier to enter that’s why
sweepstakes more customers than contest.
Benefits of Contest:
 Contest and sweepstakes can get the customers involved with a brand by
making the promotion product relevant.
Page | 33
 Marketers can use contests and sweepstakes to build brand equity by
connecting the prizes to the lifestyle, needs or interests of the target audience.
 Consumers can know more about the product as well as about company as
direct involvement increases.
Limitation of Contest:
 In contest and sweepstakes winners are given prizes randomly so customers

reluctant to pay more attention towards it.
 Marketers have cut back the uses of these promotional tools due to its lower
effectiveness and fears that consumers might become dependent on them.
 A major problem in contest and sweepstakes is that of participation by
professionals or hobbyists who submit many entries but have no intention of
purchasing the product.
 Further, for marketers it increases so many other activities like managing all
the entries and selecting winner from them and delivering prize to them which
also requires so many time and it also increase cost.
6. Bonus Pack:
Bonus packs offer the consumer an extra amount of a product at the regular price by
providing larger containers or extra units. Bonus is also frequently used sales promotion tool
because consumer response towards bonus pack is very positive. The additional value of a
bonus pack is generally obvious to the consumer and can have a strong impact on the
purchase decision at the time of purchase.
Benefits from Bonus Pack:
 It gives a direct way to provide extra value without having to get involved
with complicated coupons or refund offers.
 Bonus can be a good answer to competitor’s promotion or introduction of a
new brand.
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 Bonus packs result in larger purchase orders and favorable display space in the
store if the relationships with retailers are good.
Limitation of Bonus Pack:
 It requires additional space so retailers or distributors may create problem if

the relation with distributors are not good as it does not give any extra benefit
to them.
 Another problem is that bonus packs may appeal primarily to current users
who probably would have purchase the brand anyway or to promotion
sensitive consumers who may not become loyal to the brand.
 A common limitation is of cost. As marketers giving extra quantity it makes
cost to the company.
These 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. There are some other
sales promotion tools like Refunds and Rebates, Frequency Programs, Event Marketing etc to
name a few, but these tools are used very less compared to earlier noted main tools.
The evaluation of sales promotion tools is measured in terms of their ability to accomplish
specific objectives and consider whether the impact of the promotion will be immediate or
delayed.
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Factors Influencing Consumer Oriented sales promotion:
Mainly four factors should be taken into account while determining the sales promotion
programme.
> Target market

> Nature of product
> Stage of product life cycle
> Budget available for promotion
1. Target Market:
While doing sales promotion, marketer must know who their target market is,
otherwise there is no use of all effort because it leads to no where. A target market can be in
any of the stages of buying hierarchy i.e. awareness, knowledge, liking, preferences,
conviction and purchase. Each stage defines a possible goal of promotion.
2. Nature of the product:
There are various product attributes which influence sales promotional strategy. When
the unit price is low the manufacturer as well as the customer has low risk but he can get the
benefit of mass marketing. Therefore, mass marketing requires mass sales promotion
schemes. Sales promotion scheme differ for products like its durability, perishable goods etc.
3. Stage of product Life Cycle:
Sales promotion strategies are influenced by the life cycle of a product. When a new
product introduced, prospective buyers must be informed about its existence and its benefits
and middlemen must be convinced to stock it. Later, if a product becomes successful,
competition intensifies and more emphasis is placed on sales promotion to increase its sales.
4. Budget Available for Promotion:
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The funds available for promotion are the ultimate determinant of the promotional
programme. A business with ample funds can make more effective use of sales promotion
programme than a firm with limited financial resources. The budget for sales promotion can
be prepared by the following methods…
Percentage of Sales
Fixed funds available for sales promotion
Following the competition, and
Budgeting by objective.
Why do Sales promotion schemes affect sales?
There are three mechanisms behind these facts. It is Purchase quantity, Brand switching and
Category expansion.
First, consumer can increase the quantity they buy just because the product is on sale.
Second, consumers are inducing to purchase another brand different from the one they would
have purchased when there is no promotional incentive.
Finally, consumer’s total consumption of the product category is increased by the promotion.
However, in the long term this positive effect may be diluted because a promotional
campaign has no permanent effect in the sales of the firm
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Sales Promotion Strategy:
Sales are the lifeblood of a business, without sales there would be no business in the first
place; therefore it is very important that if a business wants to succeed, it should have a sales
promotion strategy in mind. The primary objective of a sales promotion is to improve a
company’s sales by predicting and modifying your target customer’s purchasing behavior and
patterns.
Sales promotion is very important as it not only helps to boost sales but it also helps a
business to draw new customers while at the same time retaining older ones. There are a
variety of sales promotional strategies that a business 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 boost the sales of a product
or service. This can be done through an advertising campaign, public relation activities, a free
sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations
and exhibitions, through prize giving competitions, through temporary price cuts, and through
door-to-door sales, telemarketing, personal sales letters, and emails.
The importance of a sales promotion strategy cannot be underestimated. This is because a

sales promotion strategy is important to a business boosting its sales.
When developing a sales promotion strategy for your business, it is important that you keep
the following points in mind.
 Consumer attitudes and buying patterns

 Your brand strategy
 Your competitive strategy
 Your advertising strategy
 Other external factors that can influence products availability and pricing.
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There are three types of sales promotion strategies:
 A push strategy
 A pull strategy or
 A combination of the two
A Push Strategy:
A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers to sell your
products and services to the consumer by offering various kinds of promotions and personal
selling efforts. What 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. The basic objective of
this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give it
shelf space, promote it by advertising, and ultimately ‘push’ it forward to the consumer.
Typical push sales promotion strategies include; buy-back guarantees, free trials, contests,
discounts, and specialty advertising items.
A Pull Strategy:
A ‘pull’ sales promotion strategy focuses more on the consumer instead of the reseller or
distributor. This strategy involves getting the consumer to ‘pull’ or purchase the
product/services directly from the company itself. This strategy targets its marketing efforts
directly on the consumers with the hope that it will stimulate interest and demand for the
product. This pull strategy is often used when distributors are reluctant to carry or distribute a
product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or
rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase
displays.
A Combination of Two Strategies:
A ‘combination’ sales promotion strategy is just that; it is a combination of a push and a pull
strategy. It focuses both on the distributor as well as the consumers, targeting both parties
directly. It offers consumer incentives side by side with dealer discounts.
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Sales Promotion and different theories:
There are certain theories which can be considered by the marketers while deciding sales
promotion strategies. It should be noted that these theories are not final conclusion but it
helps in making better decisions. Here I will try to elaborate on two theory i.e. theory of
attitude and theory of prospects.
Sales Promotion and theory of Attitude:
Multi attribute models of attitude (Fishbein and Ajzen, 1975) depict the consumer’s decision
to perform a specific behavior as the logical consequence of beliefs, attitudes and intentions
with regard to the behavior. As per this model, a consumer’s intention to buy a brand may be
based on positive/negative attitudes towards a promotion.
Attitude Model:
Behavior → Reward or → Purchase

Punishment → Not Purchase
It is found that the impact of three attitudinal dimensions – price consciousness, time value
and satisfaction/pride – on consumers’ decision to use coupons. Results of their study showed
that there was a positive relationship between coupon usage and consumer price
consciousness. There was a significant
negative relationship between 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. The
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 consumer’s decision to
use coupons. As per the model, behavior towards coupons would be influenced by consumer
intentions to use coupons. Consumers’ intention to use coupons would be determined by their
attitudes and subjective norms. Consumers’ attitudes would be formed through their beliefs in
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the rewards and costs of using coupons while subjective norms would be formed through
consumers’ perception of whether important others think they should expend the effort to
clip, save and use coupons. It is found that beliefs in the rewards of using coupons had high
positive correlation with attitude while inconveniences and encumbrances had weak negative
correlation with attitude
Although attitude models provide important insights into the consumer decision-making
process, researchers have found discrepancies between stated attitudes and actual behavior. in
several studies (Perry and Gillespie, 1976; Keesling and Kaynama, 2003). Studies in different
contexts have shown that attitudes are actually poor predictors of behavior. This possibly
accounts for the limited application of attitude models to examine consumer response to sales
promotions.
Sales Promotion and Prospect Theory:
This theory proposes that people perceive outcomes of a choice as perceived ‘losses’ and
‘Gains’ relative to a subjective reference point/price.
As per this theory of sales promotions it is stated that consumer’s perception of promotion as
a ‘loss’ or ‘gain’ is a function of the type of the promotion. They proposed that non price
promotions such as premium offers which segregate the
promotional gain from the purchase price will be viewed as gains. On the other hand, price
promotions such as price off, which integrate the promotional gain with the purchase price
will be viewed as reduced losses.
The impact of price versus non price promotions on a consumer’s reference price reasoned
that price promotions would be integrated with the purchase price of the product and lead to a
reduction of internal reference price. While non price promotions would be 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.
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As per prospect theory to predict that price promotions would be viewed as reduced losses
and chosen less often than non price promotion which would be viewed as gains. However it
is shown that an almost equal number of subjects chose the non price promotion (a premium
offer) as compared to the price promotion (a price discount). The reasoning that price
promotions would be viewed as reduced losses and preferred less as compared to non price
promotions which would be viewed as gains was not supported by the results of the study.
Prospect theory based prediction that consumers will perceive non-price promotions as
‘gains’ and price promotions as ‘reduced losses’ is not based on a precise application of the
theory. Contrary predictions can be derived from the theory. It can be argued that consumers
will perceive a price promotion as a gain as the price reduction offered reduces the ‘loss’
experienced by the purchase price.
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Sales promotion from the retailer’s point of view:
Perceptions on Scheme Preference
It was found that retailer perceived price offs as a better 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 Bonus packs, Premium, Contests etc. Retailers preferred price
offs the most, then bonus pack, premium, contests, in order of importance.
Perceptions about Buying Roles
Retailers viewed that the person who came to the shop (who may be a maid, son,
daughter, daughter-in-law and child) was the decider of a toilet soap brand and not the
Income provider (e.g. head of the family). It could be inferred that visibility of information
about the sales promotion activity at the point of purchase could result into the purchase of a
promoted brand.
Perceptions about their role in decision-making
Retailer had relatively very low influence in affecting choice. It could be inferred that
visibility and awareness about the scheme were the critical success factors so that pull could
be created.
Perceptions about Response to Sales Promotion Offers
They believed that younger age-groups were more experimental in nature, amenable
to trying new brands, and sought/looked for or asked whether there were any) sales
promotion schemes running on any toilet soap at the time of purchase.
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Perceptions about Communications of Sales Promotion Schemes
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.
Variations in Information Flow
Smaller (non-supermarket, small format store) retailers received relatively less

support compared to supermarkets in terms of servicing, margins, information about sales
promotion activities from the dealers. Many a times small retailers were only informed
verbally about sales promotion schemes by the dealer salesmen during the scheduled weekly
visits.
Dealer-Retailer Dynamics
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 brands and
wanted payment for shelf and window display to increase traffic into their store. However,
supermarkets and big retailers were pampered and given special services and given better
margins and better allowances.
Margins
It was found that in sales promotion schemes margins varied from 6 to15% depending
of the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc.
Mostly margins were linked to size of the volumes that were ordered.
Perceptions about terms and conditions
Retailers were not found to be happy with sales promotion schemes where their
margins were cut on the pretext of just fast movement of inventory of the brand being
promoted. Also if additional incentive was offered it was subject to minimum performance
requirement.
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Nature of POP
Retailers indicated that most of the POP (Point of Purchase) materials were meant for
brand advertisement and not for giving information regarding the schemes. Thus it could be
inferred that company’s follow up was not adequate.
Servicing during duration of Scheme
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 by the
dealer salesman but big retailers were serviced on telephonic request for replenishment of
stocks. This clearly indicated the disparity in treatment.
Problem of left-over
A leftover stock at the end of any scheme was required to be sold by the retailers
before they ordered fresh stocks. In case of bonus packs scheme, leftover stock was often
dismantled (cut open buy one get one free) and sold them individually as a regular soap. This
approach of the company leads to misappropriation which in turn could result in adverse
brand image.
Gifts for Retailer motivation
Companies at times were rewarding retailers by giving free gifts like thermos flasks
or clocks if they sold more than certain quantity in a given period. Companies were making a
half-hearted effort to motivate retailers.
Perceptions about mass media announcements
Retailers viewed that whenever sales promotion scheme was announced on TV, it
created pull and they were more than willing to stock such brands. For example Medimix and
Dettol contest was not advertised on TV, hence there was very little awareness leading to
unsold stock till 6 months. While Lux Gold Star which was heavily promoted on T.V. is
recalled even today.
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Post Promotion Behaviour
Retailers observed that in most cases sales promotion scheme on a brand might
encourage a buyer to switch a brand temporarily but he would revert back to original brand
after promotion.
Handling Problems
Many a time’s 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. Remembering each offer and handling was a problem
especially for a small retailer which was often an as one-man show.
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Sales Promotion from the Consumers point of view:
Willingness to buy on sales promotion offer
Sixty per cent of the sample did not show willingness to buy a brand due to promotion
while 30% showed willingness and 10% were not sure. This indicates that when 30% showed
willingness and 10% consumers who were not sure, these groups might be lured through
innovative and lucrative sales promotion offer.
Ability to induce trial
Forty per cent of the respondents had said that sales promotion had the ability to
induce trial which reinforces the above inference.
Long-term impact
In order to understand ability of the promotions to increase long-term sales,

respondents were asked about continuity of purchase of a brand after the withdrawal of
promotion. Eighty per cent of the respondents indicated that they would not continue. But
20% said they would. Thus, it could be inferred that promotions in this category (low
involvement products) might encourage trial and brand switching but not long term loyalty.
Preference of Schemes:
Price off was the most preferred type of scheme. Maximum customers’ ranked price-
offs as number one or two.
Perceived Quality:
Majority of respondents had a perception that the quality of the promoted brands
remained the same during promotion, while some of them felt that it was inferior than before.
It can be inferred that promotions were not leading to negative brand quality perceptions. It is
found that some customer strongly preferred to buy their regular brand and said that sales
promotion would not weaken their loyalty towards the brand.
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Perceptions regarding underlying company motivations
On tapping perceptions’ regarding underlying company motivations for sales

promotion, “to increase sales” was ranked highest followed by “to attract switchers” and “to
sell excess stocks”. While providing value to customers” and
“to reinforce company image” were ranked lowest. This indicates that consumers believed
that companies were undertaking such activities only for their own benefit and not for the
benefit of consumers.
Findings 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 by consumers and retailers’ perceptions about consumer preferences).
Since retailers observe consumers in store behaviour were frequently and directly, their
perceptions regarding providing consumer behaviour are likely to be accurate. Such inputs
from the retailers would be useful to companies.
The retailers had the perception that those schemes which were announced through mass
media had better response. This was reinforced by the consumer survey which showed that
recall in case of heavily promoted schemes on TV was found to be very high.
Retailers’ prediction of companies’ motivation for offering sales promotion were matching
with the consumer perception regarding the same. Thus both 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 benefit or enhance/reinforce brand/company
image.
Page | 48
Cherry Picking
Merriam-Webster Dictionary defines cherry picking as “selecting the best or most desirable”
or to describe one idiom with another “taking the pick of the litter.” The term cherry picking
is used to describe the behavior of both sellers and buyers in a variety of settings. Sometimes
the phrase is used to describe a seller who is selective about which customers they wish to
serve.
For example, Southwest Airlines cherry picks price sensitive travelers who place little
premium on standard airline perks and Dell Computer cherry picks customers who are
capable of buying over the Internet and are savvy enough to make the necessary
customization choices without much hand holding. Both of these firms choose not to serve
other customers with a higher willingness to pay because it would require significant changes
to efficient operating models.
The Cambridge International Dictionary of Idioms defines cherry picking as choosing “only
the best people or things in a way that is not fair”, as when financial institutions and
insurance companies are vilified because they refuse to serve high-risk populations. The term
also describes behavior of buyers who are selective about which products or services they
purchase at what locations and prices. In both the seller and buyer contexts, the essential
meaning of cherry picking is the same— take the best and leave the rest.
“Instead of going to the same outlet each week, every week, to complete their grocery
shopping, price-conscious consumers often visit more than one store in search of special
prices – a bargain-hunting practice known in the industry as ‘cherry-picking.’”
(Mogelonsky 1994)
Consumer Reports recommends that smart shoppers “scrutinize the food-day ads and
‘cherry pick’ the specials,” noting that 20% of its readers show little loyalty among
supermarkets (Consumer Reports 1988)
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BUYER SIDE CHERRY PICKING
 WITHIN STORE
 Levy and Witz (2004) define cherry pickers who visit the store and only buy
merchandise sold at big discounts.
 BETWEEN STORES
 The typical shopper visits the supermarkets 2.2 times per week but shops 3-4 different
chains on a regular basis, creating plenty of opportunities to cherry pick.
CHERRY PICKING STRATEGIES
 SWITCH STORES ACROSS WEEKS
 Dominick’s one week jewel the next
 SWITCH STORES WITHIN A DAY OR WEEK
 Dominick’s and jewel the same day or week
 OUR OPERATIONALIZATION
 Visit two or more stores on the same shopping day

 Reduces the likelihood of confusing true cherry picking with fill in trips
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Classification of Shopper Types
REF: Research paper on cherry picking by Edward Cox and Stephen Hoch
Page | 51
KEY FINDINGS
Page | 52
Q.1 Do you purchase the same brand every time?
Statistics
HOUSE
PACKED MOSQUITO CLEANING
SOAP TOOTHPASTE MASALA PICKLE REPELLENT PRODUCTS
N Valid 80 60 45 35 30 65
Missing 22 42 57 67 72 37
Frequency Table
SOAP
Cumulative
Frequency Percent Valid Percent Percent
Valid yes 20 19.6 25.0 25.0
no 60 58.8 75.0 100.0
Total 80 78.4 100.0
Missing .00 20 19.6
System 2 2.0
Total 22 21.6
Total 102 100.0
TOOTHPASTE
Cumulative
Valid yes 35 34.3 58.3 58.3
no 25 24.5 41.7 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
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PACKED MASALA
Cumulative
Valid yes 20 19.6 44.4 44.4
no 25 24.5 55.6 100.0
Total 45 44.1 100.0
Missing .00 55 53.9
System 2 2.0
Total 57 55.9
Total 102 100.0
PICKLE
Cumulative
Valid yes 20 20.0 57.1 57.1
no 15 15.0 42.9 100.0
Total 35 35.0 100.0
Missing .00 65 65.0
Total 100 100.0
MOSQUITO REPELLENT
Cumulative
Valid yes 25 24.5 83.3 83.3
no 5 4.9 16.7 100.0
Total 30 29.4 100.0
Missing .00 70 68.6
System 2 2.0
Total 72 70.6
Total 102 100.0
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HOUSE CLEANING PRODUCTS
Cumulative
Valid yes 30 29.4 46.2 46.2
no 35 34.3 53.8 100.0
Total 65 63.7 100.0
Missing .00 35 34.3
System 2 2.0
Total 37 36.3
Total 102 100.0
DO
DO YOU
YOU PURCHASE
PURCHASE THE
THE SAME
SAME BRAND
BRAND EVERY
EVERY TIME?
TIME?
48% YES
52% NO
INTERPRETATION:
Page | 55
Soap: 75% of the respondents said that they do not purchase the same brand every time while
25 % said that they do purchase the same brand every time.
Toothpaste: 41.7% of the respondents said that they do not purchase the same brand every
time while 58.3 % said that they do purchase the same brand every time.
Packed Masala: 55.1% of the respondents said that they do not purchase the same brand
every time while 44.9 % said that they do purchase the same brand every time.
Pickle: 42.9% of the respondents said that they do not purchase the same brand every time
while 57.1 % said that they do purchase the same brand every time.
Mosquito Repellent: 16.7% of the respondents said that they do not purchase the same brand
every time while 83.3 % said that they do purchase the same brand every time.
House Cleaning Products: 53.8% of the respondents said that they do not purchase the same
brand every time while 46.2 % said that they do purchase the same brand every time.
Overall: 52% of the respondents said that they do not purchase the same brand every time
while 48 % said that they do purchase the same brand every time.
The consumer behaviour related to brand switching varies a lot across different products with
75 % of consumers in the soap category agreeing that they switch brands regularly while only
Page | 56
16.7% of consumers in the mosquito repellent category agreed that they switch brands
regularly. Overall, to get a fair idea an average of these responses show that 52% of the
consumers switch brands for one or the other reasons while 48% of the consumers stick to the
same brand.
Page | 57
Q.2 Why do you change your brand?
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Why change soap * income 75 73.5% 25 26.5% 100 100.0%
Why change toothpaste * 60 58.8% 40 41.2% 100 100.0%

income
Why change packed masala * 46 45.1% 54 54.9% 100 100.0%

income
Why change pickle * income 35 34.3% 65 65.7% 100 100.0%
Why change mosquito repellent 30 29.4% 70 70.6% 100 100.0%

* income
Why change cleaning products * 65 63.7% 35 36.3% 100 100.0%

income
Page | 58
Why change soap * income Cross tabulation
Count
income Total
less than 25000 26000-50000 51000-75000 more than 75000
Why change soap schemes 10 10 4 5 29
trial 0 0 0 0 5
better quality 10 15 11 10 41
Total 20 25 15 15 75
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Why change toothpaste * income Cross tabulation
income Total
more than
less than 25000 26000-50000 51000-75000 75000
whychangetoothpaste schemes 6 18 1 0 25
trial 0 3 3 0 6
better 4 4 11 10 29
quality
Total 10 25 15 10 60
Page | 60
PACKED MASALA * income Cross tabulation
Count
income Total
PACKED MASALA schemes 11 3 4 0 18
trial 7 0 0 5 12
Total 20 6 10 10 46
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PICKLE * income Crosstabulation
Count
income Total
PICKLE schemes 10 5 1 0 16
trial 3 0 0 0 3
Total 15 10 5 5 35
Page | 62
Why change mosquito repellent * income Cross tabulation
Count
income
less than 25000 26000-50000 51000-75000 Total
whychangemosquito trial 5 0 0 5
better quality 10 10 5 25
Total 15 10 5 30
Page | 63
Why change cleaning * income Cross tabulation
Count
income
less than 25000 26000-50000 51000-75000 more than 75000 Total
whychangecleaning schemes 10 5 15 0 30
trial 10 0 0 5 15
Total 25 10 15 15 65
Page | 64
INTERPRETATION:
Soap: The cross tabulation of the reason of changing a brand with the income of the
respondent in the soap category shows that there is a change in the reason with increasing
income of the respondent. 6 out of 10 respondents of income less than 25,000 say the they
change brand due to the promotional schemes while only 5 out of 15 respondents of more
than 75,000 category claim so.
Toothpaste: The cross tabulation of the reason of changing a brand with the income of the
respondent in the toothpaste category shows that there is a change in the reason with
increasing income of the respondent. 6 out of 10 respondents of income less than 25,000
say the they change brand due to the promotional schemes while only 0 out of 10
respondents of more than 75,000 category claim so.
Packed Masala: The cross tabulation of the reason of changing a brand with the income of
the respondent in the packed masala category shows that there is a change in the reason
with increasing income of the respondent. 11 out of 20 respondents of income less than
25,000 say the they change brand due to the promotional schemes while only 0 out of 10
respondents of more than 75,000 category claim so.
Pickle: The cross tabulation of the reason of changing a brand with the income of the
respondent in the pickle category shows that there is a change in the reason with increasing
income of the respondent. 10 out of 15 respondents of income less than 25,000 say the they
Page | 65
change brand due to the promotional schemes while only 0 out of 5 respondents of more
than 75,000 category claim so.
Mosquito Repellent: The cross tabulation of the reason of changing a brand with the
income of the respondent in the mosquito repellent category shows that there is a change
in the reason with increasing income of the respondent. 10 out of 15 respondents of income
less than 25,000 say the they change brand due to the better quality while all 5 respondents
of more than 75,000 category claim so.
House Cleaning Products: The cross tabulation of the reason of changing a brand with the
income of the respondent in the house cleaning products category shows that there is a
change in the reason with increasing income of the respondent. 10 out of 25 respondents of
income less than 25,000 say the they change brand due to the promotional schemes while
only 0 out of 15 respondents of more than 75,000 category claim so.
Hence, a gradual shift towards better quality 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 towards better quality is seen as income
increases.
Page | 66
Q.3 Was there any promotional scheme with this brand?
Frequencies
Statistics
HOUSE
N Valid 80 60 45 35 30 65
Missing 22 42 57 67 72 37
Frequency Table
SOAP
Cumulative
Valid yes 60 58.8 75.0 75.0
no 20 19.6 25.0 100.0
Total 80 78.4 100.0
Missing .00 20 19.6
System 2 2.0
Total 22 21.6
Total 102 100.0
TOOTHPASTE
Cumulative
Valid yes 60 58.8 100.0 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
Page | 67
PACKED MASALA
Cumulative
Valid yes 30 29.4 66.7 66.7
no 15 14.7 33.3 100.0
Total 45 44.1 100.0
Missing .00 55 53.9
System 2 2.0
Total 57 55.9
Total 102 100.0
PICKLE
Cumulative
Valid yes 20 19.6 57.1 57.1
no 15 14.7 42.9 100.0
Total 35 34.3 100.0
Missing .00 65 63.7
System 2 2.0
Total 67 65.7
Total 102 100.0
MOSQUITO REPELLENT
Cumulative
Valid yes 15 14.7 50.0 50.0
no 15 14.7 50.0 100.0
Total 30 29.4 100.0
Missing .00 70 68.6
System 2 2.0
Total 72 70.6
Total 102 100.0
Page | 68
Cumulative
Valid yes 60 58.8 92.3 92.3
no 5 4.9 7.7 100.0
Total 65 63.7 100.0
Missing .00 35 34.3
System 2 2.0
Total 37 36.3
Total 102 100.0
WAS
WAS THERE
THERE A
A PROMOTIONAL
PROMOTIONAL SCHEME?
SCHEME?
22%
YES
NO
78%
Page | 69
INTERPRETATION:
Soap: 75% of the respondents agreed that there was a promotional scheme for the brand they
bought while 25 % of the respondents did not.
Toothpaste: 100% of the respondents agreed that there was a promotional scheme for the
brand they bought.
Packed Masala: 66.7 % of the respondents agreed that there was a promotional scheme for
the brand they bought while 33.3 % of the respondents did not.
Pickle: 57.1% of the respondents agreed that there was a promotional scheme for the brand
they bought while 42.9 % of the respondents did not.
Mosquito Repellent: 50% of the respondents agreed that there was a promotional scheme for
the brand they bought while 50 % of the respondents did not.
House Cleaning Products: 92.3% of the respondents agreed that there was a promotional
scheme for the brand they bought while 7.7 % of the respondents did not.
Overall: 78 % of the respondents agreed that there was a promotional scheme for the brand
they bought while 22 % of the respondents did not.
Page | 70
From this analysis it can be understood that 78 % of the respondents availed some or the
other scheme from the 6 selected products and save some money by cherry picking these
products.
Page | 71
Q.4 If, yes which one?
Frequencies
Statistics
HOUSE
N Valid 60 60 30 20 15 60
Missing 42 42 72 82 87 42
Frequency Table
SOAP
Cumulative
Valid price promotion 60 58.8 100.0 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
TOOTHPASTE
Cumulative
free gifts 20 19.6 33.3 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
Page | 72
PACKED MASALA
Cumulative
Missing .00 70 68.6
System 2 2.0
Total 72 70.6
Total 102 100.0
PICKLE
Cumulative
Missing .00 80 78.4
System 2 2.0
Total 82 80.4
Total 102 100.0
MOSQUITO REPELLENT
Cumulative
Missing .00 85 83.3
System 2 2.0
Total 87 85.3
Total 102 100.0
Page | 73
Cumulative
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
WHICH
WHICH PROMOTIONAL
PROMOTIONAL BRAND
BRAND WAS
WAS OFFERED?
OFFERED?
6%
PRICE PROMOTION
COUPONS
FREE GIFTS
REFUNDS
LOYALTY INCENTIVE
94%
Page | 74
INTERPRETATION:
Soap: 100 % of the respondents bought the brand with which there was a price promotion
scheme.
Toothpaste: 66.7 % of the respondents bought the brand with which there was a price
promotion scheme while 33.3 % of the respondents bought the brand which had free gifts
scheme.
Packed Masala: 100 % of the respondents bought the brand with which there was a price
promotion scheme.
Pickle: 100 % of the respondents bought the brand with which there was a price promotion
scheme.
Mosquito Repellent: 100 % of the respondents bought the brand with which there was a price
promotion scheme.
House Cleaning Products: 100 % of the respondents bought the brand with which there was a
price promotion scheme.
Overall: 94 % of the respondents bought the brand with which there was a price promotion
scheme while 6 % of the respondents bought the brand which had free gifts scheme.
Q.5 How much did you save by availing this scheme?
Page | 75
Frequencies
Statistics
HOUSE
N Valid 60 60 30 20 20 60
Missing 42 42 72 82 82 42
Frequency Table
SOAP
Cumulative
Valid 10-15 10 9.8 16.7 16.7
more than20 50 49.0 83.3 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
TOOTHPASTE
Cumulative
Valid 10-15 50 49.0 83.3 83.3
more than20 10 9.8 16.7 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
Page | 76
PACKED MASALA
Cumulative
Valid 15-20 10 9.8 33.3 33.3
more than20 20 19.6 66.7 100.0
Total 30 29.4 100.0
Missing .00 70 68.6
System 2 2.0
Total 72 70.6
Total 102 100.0
PICKLE
Cumulative
Valid 15-20 10 9.8 50.0 50.0
more than20 10 9.8 50.0 100.0
Total 20 19.6 100.0
Missing .00 80 78.4
System 2 2.0
Total 82 80.4
Total 102 100.0
MOSQUITO REPELLENT
Cumulative
Valid 0-5 5 4.9 25.0 25.0
15-20 5 4.9 25.0 50.0
more than20 10 9.8 50.0 100.0
Total 20 19.6 100.0
Missing .00 80 78.4
System 2 2.0
Total 82 80.4
Total 102 100.0
Page | 77
Cumulative
Valid 5-10 5 4.9 8.3 8.3
10-15 10 9.8 16.7 25.0
15-20 5 4.9 8.3 33.3
more than20 40 39.2 66.7 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
AMOUNTS
AMOUNTS SAVED
SAVED BY
BY AVAILING
AVAILING SCHEMES
SCHEMES
2% 2%
27%
RS 0-5
RS 5-10
RS 10-15
RS 15-20
56%
MORE THAN 20
12%
AMOUNT SAVED (IN NO OF

RS) RESPONSES
RS 0-5 5
RS 5-10 5
RS 10-15 67
RS 15-20 30
MORE THAN 20 138
INTERPRETATION:
Page | 78
Soap: 16.7 % of the respondents said that they saved Rs.10-15 by availing the scheme with
the product while 83.3 % of the respondents said that they save more that Rs.20 by availing
the scheme.
Toothpaste: 83.3 % of the respondents said that they saved Rs.10-15 by availing the scheme
with the product while 16.7 % of the respondents said that they save more that Rs.20 by
availing the scheme.
Packed Masala: 33.3 % of the respondents said that they saved Rs.15-20 by availing the
scheme with the product while 66.7% of the respondents said that they save more that Rs.20
by availing the scheme.
Pickle: 50 % of the respondents said that they saved Rs.15-20 by availing the scheme with
the product while 50 % of the respondents said that they save more that Rs.20 by availing the
scheme.
Mosquito Repellent: 25% of the respondents said that they saved Rs.0-5, 25 % of the
respondents said that they saved Rs.15-20 by availing the scheme with the product while 50
% of the respondents said that they save more that Rs.20 by availing the scheme.
House Cleaning Products: 8.3 % of the respondents said that they saved Rs.5-10, 16.7 % of
the respondents said that they saved Rs.10-15 by availing the scheme with the product while
8.3 % of the respondents said that they save more that Rs.15-20 by availing the scheme.66.7
% of the respondents said that they save more than Rs.20 by availing he scheme.
Page | 79
Overall: 2 % of the respondents said that they saved Rs.0-5, 2 % of the respondents said that
they saved Rs.5-10, 28 % of the respondents said that they saved Rs.10-15 by availing the
scheme with the product while 12 % of the respondents said that they save more that Rs.15-
20 by availing the scheme.56 % of the respondents said that they save more than Rs.20 by
availing he scheme.
Page | 80
Q.6 Did you have to buy more qty than intended to avail the scheme?
Frequencies
Statistics
HOUSE
N Valid 55 65 30 15 15 65
Missing 47 37 72 87 87 37
Frequency Table
SOAP
Cumulative
Valid yes 55 53.9 100.0 100.0
Missing .00 45 44.1
System 2 2.0
Total 47 46.1
Total 102 100.0
TOOTHPASTE
Cumulative
Valid yes 20 19.6 30.8 30.8
no 45 44.1 69.2 100.0
Total 65 63.7 100.0
Missing .00 35 34.3
System 2 2.0
Total 37 36.3
Total 102 100.0
Page | 81
PACKED MASALA
Cumulative
Valid yes 5 4.9 16.7 16.7
no 25 24.5 83.3 100.0
Total 30 29.4 100.0
Missing .00 70 68.6
System 2 2.0
Total 72 70.6
Total 102 100.0
PICKLE
Cumulative
Valid no 15 14.7 100.0 100.0
Missing .00 85 83.3
System 2 2.0
Total 87 85.3
Total 102 100.0
MOSQUITO REPELLENT
Cumulative
Valid no 15 14.7 100.0 100.0
Missing .00 85 83.3
System 2 2.0
Total 87 85.3
Total 102 100.0
Page | 82
Cumulative
Valid yes 5 4.9 7.7 7.7
no 60 58.8 92.3 100.0
Total 65 63.7 100.0
Missing .00 35 34.3
System 2 2.0
Total 37 36.3
Total 102 100.0
HAD
HAD TO
TO BUY
BUY MORE
MORE THAN
THAN INTENDED
INTENDED ??
34%
YES
NO
66%
INTERPRETATION:
Page | 83
Soap: 100 % of the respondents said that they had to buy more than intended to avail the
scheme.
Toothpaste: 30.8 % of the respondents said that they has to buy more than intended to avail
the scheme while 69.2% of the respondents said that they did not have to buy more to avail
the scheme.
Packed Masala: 16.7 % of the respondents said that they has to buy more than intended to
avail the scheme while 83.3% of the respondents said that they did not have to buy more to
avail the scheme.
Pickle: 100 % of the respondents said that they had to buy more than intended to avail the
scheme.
Mosquito Repellent: 100 % of the respondents said that they had to buy more than intended
to avail the scheme.
House Cleaning Products: 7.7 % of the respondents said that they has to buy more than
intended to avail the scheme while 92.3% of the respondents said that they did not have to
buy more to avail the scheme.
Overall: 34 % of the respondents said that they has to buy more than intended to avail the
scheme while 66% of the respondents said that they did not have to buy more to avail the
scheme.
Page | 84
Q.7 Did you spend more than intended to avail the scheme?
Frequencies
Statistics
HOUSE
N Valid 55 60 35 15 15 60
Missing 47 42 67 87 87 42
Frequency Table
SOAP
Cumulative
Valid yes 55 53.9 100.0 100.0
Missing .00 45 44.1
System 2 2.0
Total 47 46.1
Total 102 100.0
TOOTHPASTE
Cumulative
Valid yes 20 19.6 33.3 33.3
no 40 39.2 66.7 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
Page | 85
PACKED MASALA
Cumulative
Valid yes 5 4.9 14.3 14.3
no 30 29.4 85.7 100.0
Total 35 34.3 100.0
Missing .00 65 63.7
System 2 2.0
Total 67 65.7
Total 102 100.0
PICKLE
Cumulative
Valid no 15 14.7 100.0 100.0
Missing .00 85 83.3
System 2 2.0
Total 87 85.3
Total 102 100.0
MOSQUITO REPELLENT
Cumulative
Valid no 15 14.7 100.0 100.0
Missing .00 85 83.3
System 2 2.0
Total 87 85.3
Total 102 100.0
Page | 86
Cumulative
Valid no 60 58.8 100.0 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
HAD
HAD TO
TO SPEND
SPEND MORE
MORE THAN
THAN INTENDED
INTENDED ??
33%
YES
NO
67%
Page | 87
INTERPRETATION:
Soap: 100 % of the respondents said that they had to spend more than intended to avail the
scheme.
Toothpaste: 33.3 % of the respondents said that they had to spend more than intended to
avail the scheme while rest 66.7 % said that they did not have to spend more than intended to
avail the scheme.
Packed Masala: 14.3 % of the respondents said that they had to spend more than intended to
avail the scheme while rest 85.7 % said that they did not have to spend more than intended to
avail the scheme.
Pickle: 100 % of the respondents said that they had to spend more than intended to avail the
scheme.
Mosquito Repellent: 100 % of the respondents said that they had to spend more than intended
to avail the scheme.
House Cleaning Products: 100 % of the respondents said that they had to spend more than
intended to avail the scheme.
Overall: 33 % of the respondents said that they had to spend more than intended to avail the
scheme while rest 67 % said that they did not have to spend more than intended to avail the
scheme.
Page | 88
Q.8 If yes how much?
Frequencies
Statistics
HOUSE
N Valid 60 20 5 0 0 0
Missing 42 82 97 102 102 102
Frequency Table
SOAP
Cumulative
Valid 15-20 10 9.8 16.7 16.7
more than20 50 49.0 83.3 100.0
Total 60 58.8 100.0
Missing .00 40 39.2
System 2 2.0
Total 42 41.2
Total 102 100.0
TOOTHPASTE
Cumulative
Valid more than20 20 19.6 100.0 100.0
Missing .00 80 78.4
System 2 2.0
Total 82 80.4
Total 102 100.0
Page | 89
PACKED MASALA
Cumulative
Valid more than20 5 4.9 100.0 100.0
Missing .00 95 93.1
System 2 2.0
Total 97 95.1
Total 102 100.0
PICKLE
Frequency Percent
Missing .00 100 100.0
Total 100 100.0
MOSQUITO REPELLENT
Frequency Percent
Missing .00 100 100.0
Total 100 100.0
Frequency Percent
Missing .00 100 100.0
Total 100 100.0
Page | 90
AMOUNT
AMOUNT SPENT
SPENT MORE
MORE TO
TO AVAIL
AVAIL SCHEMES
SCHEMES
12%
RS 0-5
RS 5-10
RS 10-15
RS 15-20
MORE THAN 20
88%
AMOUNT SPENT MORE NO OF RESPONSES

RS 0-5 0
RS 5-10 0
RS 10-15 0
RS 15-20 10
MORE THAN 20 73
Page | 91
INTERPRETATION:
Soap: 16.7 % of the respondents said that they had to spend Rs.15-20 to availing the scheme
with the product while 83.3 % of the respondents said that they had to spend Rs.20 more to
Toothpaste: 100% of the respondents said that they had to spend Rs.20 more to availing the
scheme.
Packed Masala: 100% of the respondents said that they had to spend Rs.20 more to availing
the scheme.
Pickle: 100% of the respondents said that they had to spend Rs.0 more to availing the
scheme.
Mosquito Repellent: 100% of the respondents said that they had to spend Rs.0 more to
House Cleaning Products: 100% of the respondents said that they had to spend Rs.0 more to
Overall: 12 % of the respondents said that they had to spend Rs.15-20 to availing the scheme
with the product while 88 % of the respondents said that they had to spend Rs.20 more to
Page | 92
Q.9 which promotional activities do you prefer?
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
pricepromotion 100 1.00 3.00 1.4500 .67232
Valid N (listwise) 100
coupons 90 2.00 4.00 3.3889 .75987
freegifts 100 1.00 33.00 3.5500 6.85694
refunds 95 2.00 4.00 3.0526 .76309
loyaltyincentive 15 3.00 4.00 3.6667 .48795
Page | 93
INTERPRETATION:
HEIRARCHY OF PREFERENCE OF BUYERS
PRICE
LOYALTY PROMOTION
FREE GIFTS INCENTIVE
COUPONS
REFUNDS
Page | 94
HYPOTHESIS
Ho: The amount spent more to avail the scheme is not dependent on the
income of the buyer.
H1: The amount spent more to avail the scheme is dependent on the
income of the buyer.
Crosstabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
SOAP * income 55 55.0% 45 45.0% 100 100.0%
TOOTHPASTE * income 60 60.0% 40 40.0% 100 100.0%
PACKED MASALA * income 35 35.0% 65 65.0% 100 100.0%
PICKLE * income 16 16.0% 84 84.0% 100 100.0%
MOSQUITO REPELLENT * 15 15.0% 85 85.0% 100 100.0%

income
HOUSE CLEANING 61 61.0% 39 39.0% 100 100.0%

PRODUCTS * income
Page | 95
SOAP * income
Crosstab
Count
income
SOAP yes 9 17 12 10 48
no 1 3 3 0 7
Total 10 20 15 10 55
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 2.333a 3 .506
Likelihood Ratio 3.507 3 .320
Linear-by-Linear Association .230 1 .631
N of Valid Cases 55
a. 4 cells (50.0%) have expected count less than 5. The minimum

expected count is 1.27.
Page | 96
TOOTHPASTE * income
Crosstab
Count
income Total
TOOTHPASTE Yes 5 10 5 0 20
no 5 15 10 10 40
Total 10 25 15 10 60
Chi-Square Tests
Asymp. Sig. (2-

Value Df sided)
Linear-by-Linear Association 5.630 1 .018
N of Valid Cases 60

Page | 97
PACKED MASALA * income
Crosstab
Count
income
less than 25000 51000-75000 more than 75000 Total
PACKED MASALA Yes 2 4 5 11
no 13 6 5 24
Total 15 10 10 35
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 35

Page | 98
PICKLE * income
Crosstab
Count
income
less than 25000 26000-50000 51000-75000 Total
PICKLE yes 2 1 4 7
no 4 4 1 9
Total 6 5 5 16
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 16

Page | 99
MOSQUITO REPELLENT * income
Crosstab
Count
income Total
less than 25000 26000-50000 51000-75000
MOSQUITO REPELLENT yes 3 1 3 7
no 2 4 2 8
Total 5 5 5 15
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
Linear-by-Linear Association .000 1 1.000
N of Valid Cases 15

Page | 100
HOUSE CLEANING PRODUCTS * income
Crosstab
Count
Income
HOUSE CLEANING yes 2 2 4 3 11

PRODUCTS
no 23 8 11 8 50
Total 25 10 15 11 61
Chi-Square Tests
Asymp. Sig. (2-

Value Df sided)
N of Valid Cases 61

Page | 101
INTERPRETATION:
Soap: The significance level for the soap category for chi square test when cross tabulated
with the income of the buyer is 0.306. Thus it can be inferred that there is association
between the amounts spent more to avail the scheme and the income of the buyer.
Toothpaste: The significance level for the soap category for chi square test when cross
tabulated with the income of the buyer is 0.80. Thus it can be inferred that there is association
Packed Masala: The significance level for the soap category for chi square test when cross
tabulated with the income of the buyer is 0.121. Thus it can be inferred that there is
association between the amounts spent more to avail the scheme and the income of the buyer.
Pickle: The significance level for the soap category for chi square test when cross tabulated
with the income of the buyer is 0.130. Thus it can be inferred that there is association
Mosquito Repellent: The significance level for the soap category for chi square test when
cross tabulated with the income of the buyer is 0.343. Thus it can be inferred that there is
association between the amounts spent more to avail the scheme and the income of the buyer.
House Cleaning Products: The significance level for the soap category for chi square test
when cross tabulated with the income of the buyer is 0.373. Thus it can be inferred that there
Page | 102
is association between the amounts spent more to avail the scheme and the income of the
buyer.
Overall: Hence it can be inferred that the amount spent more to avail the scheme has
association with the income of the buyer. We can conclude from this that the buyer spends
more in accordance to his income rather than attractiveness of the scheme.
Hence Ho is rejected.
 Hence the amount spent more to avail the scheme is dependent on the income of the
buyer.
Page | 103
CONCLUSIONS
Page | 104
 More than half of the population of consumers switch brands of FMCG products due
to some reason or the other. (52% of the consumers agreed that they switch brands
regularly.)
 The percentage of consumers switching brands varies across different FMCG
products. (75% of respondents under soap category agreed that they switch brands
regularly while only 16.7% of respondents under mosquito repellent category agreed
to it.)
 The reason of switching brands varies with the income of the buyer. The reason of
switching brand tends towards better quality as the income of the individual increases.
The reason with lower income groups being schemes and with higher income groups
being better quality of the product. Though the shift varies from product to product
but a general trend towards better quality is seen as income increases.
 Schemes giving instant cash benefit are preferred by the consumers. Most of the
buyers purchase products with price promotion schemes with 94 % of the buyers
bought products with price promotion.
 The buyers save big amounts by availing the scheme. 56% of the buyers save more
than Rs. 20 on a single product during a single shopping trip, 28% saved Rs.10-15 on
a single product while 12% save Rs.15-20 on a single product.
Page | 105
 The buyers in return have to buy more quantity of the product to avail the scheme and
save the above mentioned amounts. 34 % of the respondents said that they had to buy
more than intended to avail the scheme.
 Again the quantity need to bought more to avail the scheme varies across products
and the scheme offered by the brand.100% of respondents under soap category agreed
that they had to buy more than intended to avail the scheme but only 7% of the
respondents under house cleaning products agreed to it.
 So it can be concluded that the buyer increase the basket size in the process to avail
the promotional schemes and get value for money.
 As the buyer needs to buy more to avail the scheme it directly affects the total amount
they spent to buy the product. 88% of the buyers agreed that they had to spend more
than Rs.20 to avail the scheme.
 The most preferred promotional activity by the consumers is price promotion
followed by loyalty incentive, free gifts, coupons and refunds being the least preferred
promotional activity.
 The amount spent more to avail the scheme has association with the income of the
buyer. We can conclude from this that the buyer spends more in accordance to his
income rather than attractiveness of the scheme.
 Hence the amount spent more to avail the scheme is dependent on the income of the
buyer.
Page | 106
RECOMMENDATIONS
Page | 107
 The brands should come up with promotional activities which give instant cash
benefit to the consumers as such promotions are preferred by them.
 The consumers do not mind buying more quantity to avail the offers hence the brands
can come up with schemes wherein the consumers need to buy more quantity to avail
the schemes offered.
 The amount spent more to avail schemes with FMCG has association with the income
of the buyer and hence the target set of consumers should be studied before coming
up with the promotions.
 The reason of switching brands does tend towards better quality but even higher
income groups indulge into cherry picking and hence the scope should not be limited
to lower income groups.
 The retailers can come up with their own promotion schemes if not offered by brands.
Such schemes will increase foot falls at the store and hence the retailer’s sales.
Page | 108
ANNEXURE
Page | 109
PERSONALCAR HOUSEHOLD
E PACKED FOOD PRODUCTS
HOUSE
TOOTH PACKED MOSQUITO CLEANING
QUESTIONS PARTICULARS SOAP PASTE MASALA PICKLE REPELLENT PRODUCTS

Which of these products

did you buy today? -

Which brand did you buy
today?

Do you purchase the

same brand every time? YES

NO

Why do you change your
brand? SCHEMES
TRIAL
BETTER
QUALITY
LOWER
PRICE

Was there any
promotional scheme with
this brand? YES
NO

Price
Promotio
If , yes which one ? n
Coupons
Free Gifts
Refunds
Loyalty
Incentive
QB
I No. Date D D M M Y Y
No.
Page | 110
Hello Sir/Madam, The student of GLS – NRIBM is doing a Survey. It would be appreciated if you coul
kindly spend few minutes of your valuable time and help us in filling up the questionnaire. The data collecte
through this survey is purely for academic purpose only and will be kept completely confidential and no
divulged to any organization for commercial use.
How much did you save

by availing this scheme ? 0-5 Rs.
( IN RS.) 5-10 Rs.
10-15 Rs.
15-20 Rs.
MORE THAN
20
Did you have to buy more
qty than intended to avail
the scheme? YES
NO
Did you spend more than
intended to avail the
scheme? YES
NO

If yes how much ? 0-5 Rs.
(IN RS.) 5-10 Rs.
10-15 Rs.
15-20 Rs.
MORE THAN
20

Which promotional
activities Price
do you prefer ? Promotion
(Rank the top 4 preferred
activities - Coupons
Rank 1 for the most
preferred and 4 for least
preferred) Free Gifts
Refunds
Loyalty
Incentive
Page | 111
PERSONAL INFORMATION:
OCCUPATION : House Wife Employed Self Employed Retired
No. of members in the family: …………………………………
MONTHLY INCOME: < 25,000 26,000-50,000 51,000-75,000 > 75,000
Shopping Days : MON TUE WED THU FRI SAT SUN
Page | 112
BIBLIOGRAPHY
Page | 113
 http://www.inbics.co.kr/english/reference/Final_Reports/INBICS_FMCG_Report.pdf
 http://www.assocham.org/arb/afp/2009/AFP_Oct2009_Prospects_in_the_FMCG_sect
or.pdf
 http://www.indiainbusiness.nic.in/business-news/news-bulletin/oct13-19%20_09.pdf
 http://www.moneycontrol.com/news_html_files/news_attachment/2008/FMCG
%20Sector%20Report1.pdf
 http://www.fddiindia.com/publications/newsletter/2009/007/July/FDDINL_215_17.0
7.2009.pdf
Page | 114

Research Methodology: Objectives of The Study

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Research Methodology: Objectives of The Study

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Research Methodology

OBJECTIVES OF THE STUDY

1. To profile the cherry pickers.

 Who are the cherry pickers?

TYPE OF RESEARCH DESIGN

EXPECTED CONTRIBUTION OF THE STUDY

REASON FOR TAKING UP THE PROJECT

Food & Beverages

Changing Profile and Mind Set of Consumer

Sources: Naukri Hub, IBEF, Chennai Online

Sources: Statistical Outline of India (2001-02), NCAER

Central & State Initiatives

Foreign Direct Investment (FDI)

Vast Rural Market

Export - “Leveraging the Cost Advantage”

Dairy Based Products

Rural and urban potential

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153

Market (Towns/Villages) 3,768 6,27,000

Universe of Outlets (mn) 1 3.3

Source: Statistical Outline of India (2001-02), NCAER

India - a large consumer goods spender

Source: KSA Technopak Consumer Outlook 2004.

Source: Euro monitor.

Source: Statistical Outline of India (2002-03).

Source: HLL, Indian Readership Survey.

Household income distribution – 2003

MARKET OPPORTUNITIES FOR INVESTMENT

Source: HH Panel data

Trade Oriented Sales Promotion

Trade Oriented Sales Promotion:

Consumer Oriented Sales Promotion:

 To increase short term sales

Let’s have look at each tool…

 The main drawback of sampling is of cost. While giving free sample it

 Door-to-door sampling: Here product is directly delivered to the prospects

 On-package sampling: In this method free sample is attached to another

 Couponing leads to price reductions so as to encourage price sensitive

 It is very difficult to estimate number of buyers.

Two basic type of premium:

2. Self-Liquidating Premiums: In Self-Liquidating Premiums consumers are

Self-Liquidating Premiums also has some limitation. It has very low

a purchase incentive by requiring a proof of purchase to enter or an entry form that is

 In contest and sweepstakes winners are given prizes randomly so customers

Benefits from Bonus Pack:

Limitation of Bonus Pack:

 It requires additional space so retailers or distributors may create problem if

> Target market

2. Nature of the product:

3. Stage of product Life Cycle:

4. Budget Available for Promotion:

Why do Sales promotion schemes affect sales?

The importance of a sales promotion strategy cannot be underestimated. This is because a

 Consumer attitudes and buying patterns

A Combination of Two Strategies:

Sales Promotion and theory of Attitude:

Behavior → Reward or → Purchase

Sales Promotion and Prospect Theory:

Perceptions on Scheme Preference

Perceptions about Buying Roles

Perceptions about their role in decision-making

Perceptions about Response to Sales Promotion Offers