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A

GRAND PROJECT REPORT
ON

“ROLE OF SALES PROMOTION ON FMCG”
A grand Project report submitted in Partial Fulfillment of award of MBA Degree

PROJECT GUIDE:
PROF. K.C. MAHESH

SUBMITTED BY:
PARTH MODY (15) HIMANSHU REDDIAR (25) SUBMITTED TO:

SOM LALIT INSTITUTE OF BUSINESS MANAGEMENT

Role of sales promotions in FMCG sector

AHMEDABAD

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &

Role of sales promotions in FMCG sector

T'is is to certif( t'at Mr. Par ! M"#$ an) Mr. H%&a'(!) R*##%ar t'e st!)ents of MB* &n) (ear of Som alit Instit!te of B!siness Mana"ement+ *'me)a,a) 'a-e complete) t'eir Gran) Pro.ect “R"+* ", (a+*( -r"&" %"'( %' FMCG” in t'e (ear &//01 &/22 in partial f!lfillment of G!.arat Tec'nolo"ical Uni-ersit( re3!irements for t'e a4ar) of t'e )e"ree of Master of B!siness *)ministration5

D%r*. "r

Gra'# Pr"/*. G)%#*

Prof5 Dr5 Ja")is' Jos'ip!ra

Prof5 Ma'es' 65C

Da *0 1123422311

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7

a) Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% = .( "eneratin" inno-ati-e an) more attracti-e tools to l!re t'e c!stomers5 <o4 a )a( most of t'e FMCG companies consi)erin" sales promotion as an important part of t'eir mar$etin" strate"(5 From t'e anal(sis of s!r-e( it .tent t'is tec'ni3!e also .ects+ 4'ic' one !n)erta$es5 6eepin" in t!ne 4it' t'is )octrine+ 4e 'a-e trie) to appl( t'eoretical aspects t'ro!"' o!t t'e pro.arat Tec'nolo"ical Uni-ersit( *'me)a.ecome a re"!lar feat!re5 To)a( t'e mar$ets are no less t'en .ot' t'e t'eoretical as 4ell as practical aspects5 To s!r-i-e in t'is 'i"'l( competiti-e mar$et 9Practical 6no4le)"e: is as rele-ant as t'e T'eoretical5 T'e si"nificance of MB* De"ree is t'at t'e T'eoretical aspects+ 4'ic' a st!)ent learns t'ro!"'o!t t'e (ear in t'e class sessions+ can .ali8ation '(per competition 'as .e practicall( applie) t'ro!"' )ifferent pro.ran) name5 S IBM G!.Role of sales promotions in FMCG sector PREFACE In t'is a"e of "lo.ecome -ictim of cl!tter+ e-en t'o!"' it can .ect+ 4'ic' 4e learne) !n)er t'e co!rse of mana"ement5 In t'is pro.e eliminate) .ecomes clear t'at cons!mers )o response to t'e sales promotion campai"n+ .!(in" )ecisions5 *ct!all( in recent tren) to some e.attle"ro!n)s an) one 'as to stri-e -er( 'ar) for s!r-i-al an) "ro4t'5 D!e to -er( rapi) in)!striali8ation all o-er t'e 4orl) t'e )eman) for t'e mana"erial personnel an) t'e a)ministrati-e personnel 'as increase)5 T'e perfect st!)( of Mana"ement in-ol-es .ect more emp'asi8e "i-en to t'e -ario!s tools of sales promotion an) its impact on cons!mers .!t t'ere are c!stomers 4'o stron"l( prefer to stic$ to .

ten)in" t'eir -al!a.ect Report an) allo4in" !s to !se t'e reso!rces of t'e instit!tion )!rin" t'is pro.le5 >e are also t'an$f!l to t'e ot'er fac!lt( mem. Ma!*(! K.ect Report5 T'eir "!i)ance 'as pro-e) to .e !sef!l an) 4it'o!t t'em+ t'e preparation of t'is report mi"'t not 'a-e .le s!pport for t'is pro.een possi.ect G!i)e+ Pr".ect a 4on)erf!l e.ect5 >e also e..tremel( t'an$f!l to o!r Pro.ten) o!r 4arm t'o!"'ts to t'ose 4'o 'elpe) me in ma$in" t'is pro.perience5 ast .ect an) for t'eir "racio!s attit!)e5 >e 4o!l) li$e to ta$e t'is opport!nit( to e.ect5 >e are e.Role of sales promotions in FMCG sector ACKNO5LEDGEMENT E-er( st!)( re3!ires a "!i)ance of someone 4'o is 4or$in" in t'at fiel)5 Firstl( 4e 4o!l) li$e to t'an$ Director Dr5 6a7#%(! 6"(!%-)ra for pro-i)in" an opport!nit( of preparin" a Gran) Pro.ers of S IBM for e.ten) o!r sincere t'an$s to t'e Respon)ents+ 4'o 'elpe) !s )!rin" t'e co!rse of o!r pro.C of S IBM for t'eir precio!s "!i)ance re"ar)in" t'e preparation of t'e Pro.!t not t'e least? 4e 4o!l) also li$e to t'an$ o!r famil( for t'eir s!pport an) enco!ra"ement5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @ .

rief information re"ar)in" FMCG sector t'en mo-in" to t'e main topic 4e 4ill e.) %9* S)&&ar$ *s a part of o!r st!)( c!rric!l!m it is necessar( to con)!ct a "ran) pro.!(in" 'a.ecti-e t'eor(5 Base) on secon)ar( so!rce certain t'eoretical aspects are also incl!)e) as a part of st!)( an) after concentration is "i-en to t'e primar( researc'5 It incl!)es t'e anal(sis an) res!lts of s!r-e( 4'ic' foc!ses on cons!merAs .o!t5 Promotion is one of t'e pillars of mar$etin" mi.ase) on st!)( of secon)ar( so!rce as 4ell as primar( researc'5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B .plain 4'at is topic is all a.e'a-ior to4ar)s sales promotion campai"n5 T'e s!r-e( 4as con)!cte) 4it' t'e 'elp of str!ct!re) 3!estionnaire5 *t last concl!sion of report+ fin)in"s an) s!""estions 4ere "i-en+ .its of cons!mers5 To start 4it' 4e 4ill "i-e . an) same 4a( sales promotion is also one of t'e elements of promotion5 >it' respect to cons!mer oriente) sales promotion t'ere are certain t'eories narrate) as operant con)itionin" an) pro.Role of sales promotions in FMCG sector E8*.ect5 It pro-i)es !s an opport!nit( to !n)erstan) t'e partic!lar topic in )ept' an) 4'ic' lea)s to t'ro!"' to t'at topic5 O!r topic for t'e "ran) pro.ect is title) as 9St!)( of cons!mer oriente) sales promotion in FMCG sector: in 4'ic' emp'asis "i-en to t'e effect of sales promotion on .

1.+)(%"' B%?+%"7ra-!$ A''*8)r*0 @)*( %"''a%r* Pa7* N". 1."&&*'#a %"'( L%&% a %"'( E&*r7%'7 Tr*'#( C"'. <. B C 2/ &= &0 7/ @0 B2 B7 B= B@ BB BC Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D . 11. 13.! M* !"#"+"7$ ". . !* ( )#$ I' r"#).. %"' I' r"#). !* ()r9*$ F%'#%'7( ". TOPICS R*(*ar. 12. 5. %"' " !* "-%.Role of sales promotions in FMCG sector INDE: Sr. 1. N". 2. Sa+*( -r"&" %"' ( ra *7%*( S5OT A'a+$(%( Da a A'a+$(%( ". >. 4.. =. !* r*-"r R*.

! D*(%7' Researc' )esi"n selecte) for t'is pro.Role of sales promotions in FMCG sector RESEARCH METHODOLOGY R*(*ar.ect is Descripti-e5 Da a .amine tra)eoffs+ relati-e importance of )ifferent attri."++*.!tes 4'ile respon)in" to a sales promotion offer5 75 To st!)( t'e effect of sales promotions in FMCG sector esp5 in soaps an) )eter"ent in)!str(5 =5 To st!)( cons!mer ."'#ar$ Da a C"++*.! O?/*. %9*(0 25 To st!)( cons!mer preferences 4it' respect to sales promotion in FMCG sector5 &5 To e. . %"' M* !"#0 (a) Pr%&ar$ Da a C"++*. %"' &* !"#0   Reference .oo$s5 Internet5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% C .e'a-ior in p!rc'ase of soaps an) )eter"ent Pr"#). %"' M* !"#0  S!r-e( met'o) 4as !se) for primar( )ata collection5  >e !se) 3!estionnaire as an instr!ment for s!r-e( met'o)5  Str!ct!re) 3!estionnaire5  T(pe of 3!estionnaire: Open en)e) an) close) en)e)5 (?) S*.a *7"r%*( )'#*r ( )#$ DETERGENTS: TOILETERIES >as'in" Po4)er for Clot'es Soaps R*(*ar.

a)5 &5 Samplin" !nit: 75 Sample si8e: In t'is st!)( t'e samplin" !nit is in)i-i)!al cons!mer5 2// cons!mers an) 2// retailers5 75 Samplin" met'o): T'e sample is selecte) .( !sin" con-enience1 samplin" met'o)5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 0 .Role of sales promotions in FMCG sector Sa&-+%'7 D* a%+ 25 Tar"et pop!lation: T'e pop!lation for t'is researc' st!)( consists of t'e resi)ence of *'me)a.

!( t'e same pro)!cts more infre3!entl(5 Similarl(+ t'e p!rc'ase c(cle also ten)s to -ar( .lem arises .e !ni-ersal+ or s'o!l) it allo4 for income+ c!lt!ral an) .a'# D*.( t'e cons!mer5 T'!s+ a si"nificant "ap e.e'a-ioral n!ancesE Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2/ .ists .eca!se t'e concept 'as a retail orientation an) )istin"!is'es .et4een cons!mer pro)!cts on t'e .!( relati-el( small 3!antities more fre3!entl(5 T'is is in s'arp contrast 4it' 4'at 'appens in most 4estern co!ntries+ 4'ere t'e practice of . %"' FMCG C"'.eca!se of c!lt!ral factors5 Most In)ians+ t(picall(+ prefer fres' foo) articles an) t'erefore to .et4een t'e "eneral !se an) t'e concept!al meanin" of t'e term FMCG5 F!rt'er+ )iffic!lties crop !p 4'en attempts to )e-ise a )efinition for FMCG5 T'e pro.e for t'e item to 3!alif( as an FMCG5 S'o!l) t'e t!rnaro!n) 'appen )ail(+ 4ee$l(+ or mont'l(E One of t'e factors on 4'ic' t'e t!rnaro!n) )epen)s is t'e p!rc'ase c(cle5 Fo4e-er+ t'e p!rc'ase c(cle for t'e same pro)!ct ten) to -ar( across pop!lation se"ments5 Man( lo41income 'o!se'ol)s are force) to .!( certain pro)!cts more fre3!entl( .asis of 'o4 3!ic$l( t'e( mo-e at t'e retailerAs s'el-es5 T'e moot 3!estion t'erefore+ is 4'at in)!str( t!rnaro!n) t'res'ol) s'o!l) .!(in" an) soc$in" foo)s for relati-el( lon"er perio) is more pre-alent5 T'!s+ s'o!l) t'e in-entor( t!rnaro!n) t'res'ol) .*.Role of sales promotions in FMCG sector I' r"#).%'% %"'0 T'e term FMCG #fast mo-in" cons!mer "oo)s%+ alt'o!"' pop!lar an) fre3!entl( !se) )oes not 'a-e a stan)ar) )efinition an) is "enerall( !se) in In)ia to refer to pro)!cts of e-er()a( !se5 Concept!all(+ 'o4e-er+ t'e term refers to relati-el( fast mo-in" items t'at are !se) )irectl( .eca!se of lac$ of li3!i)it( an) stora"e space 4'ile relati-el( 'i"'1income 'o!se'ol)s .

!ries5 T'e( meet t'e )eman)s of t'e entire cross section of pop!lation5 Price an) income elasticit( of )eman) -aries across pro)!cts an) cons!mers5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 22 . *r%( %. FMCG Pr"#).le retailerH)ealer )ri-e p!rc'ase )ecisions5 • Trial of a ne4 pro)!ct i5e5 .!)"et5 • T'e cons!mer $eeps limite) in-entor( of t'ese pro)!cts an) prefers to p!rc'ase t'em fre3!entl(+ as an) 4'en re3!ire)5 Man( of t'ese pro)!cts are peris'a.( ".Role of sales promotions in FMCG sector C!ara.orsHfrien)s5 • T'ese pro)!cts cater to necessities+ comforts as 4ell as l!.( 'ea-( a)-ertisement+ recommen)ation of t'e retailer or nei"'.ran) s4itc'in" is often in)!ce) . (0 • In)i-i)!al items are of small -al!e5 B!t all FMCG pro)!cts p!t to"et'er acco!nt for a si"nificant part of t'e cons!merGs .le5 • T'e cons!mer spen)s little time on t'e p!rc'ase )ecision5 Rarel( )oes 'eHs'e loo$ for tec'nical specifications #in contrast to in)!strial "oo)s%5 Bran) lo(alties or recommen)ations of relia.

5 Most of t'e mar$etin" strate"ies are .le time in plannin" s!c' acti-ities5 Fo4e-er+ in or)er to en'ance t'e effecti-eness of t'ese acti-ities+ man!fact!rers s'o!l) !n)erstan) cons!mer an) retailer interpretations of t'eir promotional acti-ities5 T'e st!)( 'ere pertains to cons!merAs perceptions re"ar)in" sales promotion5 Some past researc'es 'a-e s!""este) t'at promotion itself 'as an effect on t'e percei-e) -al!e of t'e .5 T'ere are so man( elements of promotion s!c' as I *)-ertisin" Direct Mar$etin" P!. 4'ic' incl!)esI Price Place #C'annel of Distri.asis of t'ese criteria5 Promotion is one of t'e important elements of mar$etin" mi.eca!se promotions pro-i)e !tilitarian .!tion% Pro)!ct Pr"&" %"' T'ese are t'e fo!r . %"' T'e importance of cons!mer sales promotion in t'e mar$etin" mi.Role of sales promotions in FMCG sector I' r"#).!ilt on t'e . of t'e fast mo-in" cons!mer "oo)s #FMCG% cate"or( t'ro!"'o!t t'e 4orl) 'as increase)5 Companies spen) consi)era.ploration an) self1e.ran)5 T'is is .lic Relations Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2& .enefits s!c' as monetar( sa-in"s+ a))e) -al!e+ increase) 3!alit( an) con-enience as 4ell as 'e)onic .enefits s!c' as entertainment+ e.asic pillar of mar$etin" mi.pression5 Broa)l( spea$in" most of t'e companies !sin" Mar$etin" Mi.

ilit( an) its potential to satisf( t'eir nee)s5 From t'ese elements Sales Promotion is t'e element 4'ic' is in t'e foc!s of t'is pro.roa) term it incl!)es I C"'()&*r Or%*' *# Sa+*( Pr"&" %"' Tra#* Or%*' *# Sa+*( Pr"&" %"' Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 27 .!tes an) a-aila.o!t pro)!cts a-aila.ran) 4ill .ot' importance an) fre3!enc( o-er t'e past fe4 )eca)es5 *lt'o!"' an acc!rate estimate for total sales promotions e.Role of sales promotions in FMCG sector Sa+*( Pr"&" %"' Tra)itionall(+ sales Promotions 'a-e .ilit( of 'is pro)!cts5 T'e secon) p!rpose of promotion is pers!asion5 T'e c!t t'roat competition amon" )ifferent pro)!cts p!ts tremen)o!s press!re on t'eir man!fact!rers an) t'e( are compelle) to !n)erta$e sales promotion acti-ities5 T'e t'ir) p!rpose of promotion is remin)in" cons!mers a.e a fail!re if no one $no4s t'at it is a-aila.ect5 F!rt'er Sales Promotion is 3!ite .ist+ 4e can .pen)it!res )oes not e.et4een a pro)!cer an) cons!mers5 T'erefore+ a pro)!cer 'as to inform c'annel mem.o!t t'e attri.o!t a compan( an) its pro)!cts5 E-en t'e most !sef!l pro)!ct or .e s!re t'at t'e tren) is !p5 Sales promotion ser-es t'ree essential roles: It informs+ pers!a)es an) remin)s prospecti-e c!stomers a.le5 *s 4e $no4+ c'annels of )istri.( mar$eter to increase sales in t'e s'ort term5 Fo4e-er+ in t'e last fe4 )eca)es t'is comm!nication tool 'as e-ol-e) an) no4 is consi)ere) from a strate"ic point of -ie45 For t'is reason+ it is necessar( to reali8e ne4 st!)ies in t'is area an) st!)( 'o4 cons!mers e-al!ate sales promotions5 Sales promotions 'a-e "ro4n in .!tion ta$e more time in creatin" a4areness .een !se) .ers as 4ell as !ltimate cons!mers a.eca!se a pro)!ct 'as to pass t'ro!"' man( 'an)s .

lis' a .ran) name To ma$e cross sellin" Som alit Instit!te Of B!siness Mana"ement 2= .Role of sales promotions in FMCG sector C"'()&*r Or%*' *# Sa+*( Pr"&" %"' Cons!mer Oriente) Sales Promotion is t'e main topic of t'is pro.ates+ Bon!s Pac$As+ Price1off+ E-ent mar$etin" etc5 D*."'()&*r "r%*' *# (a+*( -r"&" %"' ""+( .ect5 Fere emp'asi8e is "i-en to moti-ate cons!mer to increase sales5 Cons!mer Oriente) Sales Promotion incl!)es Samplin"+ Co!ponin"+ Premi!ms+ Contest+ Ref!n)s+ Re.%'% %"'0 For t'e p!rpose of t'is st!)(+ follo4in" )efinitions of sales promotion 4ere $ept in min)5 6otler )efines sales promotion as: 9Sales promotion consists of a )i-erse collection of incenti-e tools+ mostl( s'ort1term )esi"ne) to stim!late 3!ic$er an)Hor "reater p!rc'ase of partic!lar pro)!ctsHser-ices ."r !* .( cons!mers or t'e tra)e:5 Ro"er Stran" 'as "i-en a more simplistic )efinition i5e5 9sales promotions are s'ort1term incenti-es to enco!ra"e p!rc'ase or sales of a pro)!ct or ser-ice5: Fence+ an( forms of incenti-es #price c!t or -al!e a))e) nat!re% offere) for s'ort perio) eit'er to tra)e or cons!mers are consi)ere) as sales promotion acti-ities5 MarA* *rB( )(*( ."++"C%'7 r*a("'(0 • • • • • #Mar$etin"% To increase s'ort term sales To in)!ce trial To re)!ce in-entor( To esta.

le to t'e mar$eters for ac'ie-in" o. C")-"'(0 Co!pon is t'e ol)est an) most 4i)el( !se) 4a( of sales promotion5 Co!pons 'a-e .tra J!antit( etAs 'a-e loo$ at eac' toolI 1.Role of sales promotions in FMCG sector • To cope !p 4it' competition • To a-oi) a)-ertisin" cl!tter T""+( ".illion in 200=5 To .( pac$a"e) "oo)s5 It is 4ort'4'ile to !se co!pon as a promotion tool ..*D".oost !p t'e sales not onl( man!fact!rer .ies =5 Scratc' Car)s @5 !c$( Dra4s B5 B!n)lin" Offer D5 E.een !se) since 2C0@5 It is mostl( !se) .ecti-e of sales promotion5 T'ese tools s'o!l) .0 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2@ . Pr%.eca!se )ata s'o4s t'at mar$et for pac$a"e) "oo)s increase) from 2B ..!t retailers personall( can also !se)5 * co!pon lea)s to price re)!ctions so as to enco!ra"e price sensiti-e c!stomers5 <on !sers can tr( a pro)!ct 4'ic' ma( lea)s to re"!lar sales5 2.illion in 20BC to 72/ . C"'()&*r Or%*' *# Sa+*( Pr"&" %"'0 T'ere are so man( tools or tec'ni3!e a-aila.e !se) consi)erin" all ot'er factors affectin" s!c' as cost+ time+ competitors+ a-aila.ilit( of "oo)s etc5 T'ese tools are as !n)erI 25 Co!pons &5 Price1Off 75 Free.

o!t t'e internet5 T'e )efinition of free.ies is pro)!cts or ser-ices "i-en a4a( for free at no cost to t'e cons!mer5 >ell t'atAs t'e )efinition 4e came !p 4it'5 I am a .est t'in"s a. S.e tr!e5 Often itAs in t'e p!rs!it of more c!stomers or a lar"er fan .!t it also ca!se lar"e increase in sales -ol!me5 Price1off re)!ctions are t(picall( offere) ti"'t on t'e pac$a"e t'ro!"' speciall( mar$e) price pac$s5 E5"5 6rac$ Jac$ offers 7/K Price1off5 . Fr**?%*( Free.e caref!ll( consi)ere) in t'e c!rrent mar$et sit!ation5 Price1off is t'e most preferre) sales promotion tec'ni3!e .eca!se cons!mers response -er( positi-el( to t'is sc'eme5 <ot onl( t'at .ase an) it often 4or$s5 4.oar)+ 4'ere one or more areas contain conceale) information: t'e( are co-ere) .ie s'opper+ prett( m!c' "oin" for an( free pro)!ct an) informin" e-er(one a.ar"ain free.!t t'e !se of t'is tec'ni3!e s'o!l) .ies are a pop!lar form of mo)ern mar$etin" an) are some of t'e .o!t it5 *t )ifferent times+ .e scratc'e) off5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2B .e seen t'ro!"'+ .!t can .! Car#( * scratc' car) #also calle) a scratc' off+ scratc' tic$et+ scratc'er+ scratc'ie+ scratc'1it+ scratc' "ame+ scratc'1an)14in or instant "ame% is a small to$en+ !s!all( ma)e of car).i" an) small companies often "i-e a4a( pri8es an) mone( 4'ic' is too "oo) to .( a s!..ra .Role of sales promotions in FMCG sector * price1off is simpl( a re)!ction in t'e price of t'e pro)!ct to increase sales an) is -er( often !se) 4'en intro)!ction a ne4 pro)!ct5 * re)!ction in price al4a(s increases sales .stance t'at cannot .

!n)lin" is a mar$etin" strate"( t'at in-ol-es offerin" se-eral pro)!cts for sale as one com. "r( I'.!siness #for e.!n)le a 4or) processor+ a sprea)s'eet+ an) a )ata.le "oal of promotion5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2D . Tar7* MarA* 0 >'ile )oin" sales promotion+ mar$eter m!st $no4 4'o t'eir tar"et mar$et is? ot'er4ise t'ere is no !se of all effort .*r( Pro)!ct .!n)le of pro)!cts is sometimes referre) to as a pac$a"e )eal or a compilation or an ant'olo"(5 Fa..e in an( of t'e sta"es of .+)*'. B)'#+%'7 O.ample+ .ine) pro)!ct5 T'is strate"( is -er( common in t'e soft4are .!(in" 'ierarc'( i5e5 a4areness+ $no4le)"e+ li$in"+ preferences+ con-iction an) p!rc'ase5 Eac' sta"e )efines a possi.e ta$en into acco!nt 4'ile )eterminin" t'e sales promotion pro"ram5 L Tar"et mar$et L <at!re of pro)!ct L Sta"e of pro)!ct life c(cle L B!)"et a-aila.ase into a sin"le office s!ite%+ in t'e ca.asic ca.Role of sales promotions in FMCG sector 5.%'7 C"'()&*r Or%*' *# (a+*( -r"&" %"'0 Mainl( fo!r factors s'o!l) .le tele-ision in)!str( #for e.le for promotion 1.ine) into a complete meal5 * .le in t'e Unite) States "enerall( offers man( c'annels at one price%+ an) in t'e fast foo) in)!str( in 4'ic' m!ltiple items are com.eca!se it lea)s to no 4'ere5 * tar"et mar$et can .ample: .

enefits an) mi))lemen m!st . 0 T'ere are -ario!s pro)!ct attri.( t'e follo4in" met'o)sI Percenta"e of Sales Fi. L%.enefit of mass mar$etin"5 T'erefore+ mass mar$etin" re3!ires mass sales promotion sc'emes5 Sales promotion sc'eme )iffer for pro)!cts li$e its )!ra.* C$..e con-ince) to stoc$ it5 increase its sales5 4.e informe) a..le "oo)s etc5 .Role of sales promotions in FMCG sector 2.+*0 Sales promotion strate"ies are infl!ence) .ecti-e5 ater+ if a pro)!ct .!t 'e can "et t'e .o!t its e.le for sales promotion Follo4in" t'e competition+ an) B!)"etin" .e) f!n)s a-aila.ilit(+ peris'a.e prepare) .!(ers m!st .le for promotion are t'e !ltimate )eterminant of t'e promotional pro"ramme5 * .!siness 4it' ample f!n)s can ma$e more effecti-e !se of sales promotion pro"ramme t'an a firm 4it' limite) financial reso!rces5 T'e .ecomes s!ccessf!l+ competition intensifies an) more emp'asis is place) on sales promotion to Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2C . Na )r* ". S a7* ". -r"#).( t'e life c(cle of a pro)!ct5 >'en a ne4 pro)!ct intro)!ce)+ prospecti-e .!tes 4'ic' infl!ence sales promotional strate"(5 >'en t'e !nit price is lo4 t'e man!fact!rer as 4ell as t'e c!stomer 'as lo4 ris$ ."r Pr"&" %"'0 T'e f!n)s a-aila.( o. !* -r"#).!)"et for sales promotion can . B)#7* A9a%+a?+* .istence an) its .

ilit( of t'e promotions to increase lon"1term sales+ respon)ents 4ere as$e) a.* ".ilit( to in)!ce trial 4'ic' reinforces t'e a.* r%a+ Fort( per cent of t'e respon)ents 'a) sai) t'at sales promotion 'a) t'e a.er one or t4o5 P*r.ran) after t'e 4it')ra4al of promotion5 Ei"'t( per cent of t'e respon)ents in)icate) t'at t'e( 4o!l) not contin!e5 B!t &/K sai) t'e( 4o!l)5 T'!s+ it co!l) .!*&*(: Price off 4as t'e most preferre) t(pe of sc'eme5 Ma.o-e inference5 L"'7D *r& %&-a.o!t contin!it( of p!rc'ase of a .t( per cent of t'e sample )i) not s'o4 4illin"ness to .*r*'. In or)er to !n)erstan) a.im!m c!stomersA ran$e) price1offs as n!m.ran) s4itc'in" .*%9*# @)a+% $: Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 20 .*r Si.!t not lon" term lo(alt(5 Pr*.ran) )!e to promotion 4'ile 7/K s'o4e) 4illin"ness an) 2/K 4ere not s!re5 T'is in)icates t'at 4'en 7/K s'o4e) 4illin"ness an) 2/K cons!mers 4'o 4ere not s!re+ t'ese "ro!ps mi"'t .e inferre) t'at promotions in t'is cate"or( #lo4 in-ol-ement pro)!cts% mi"'t enco!ra"e trial an) .e l!re) t'ro!"' inno-ati-e an) l!crati-e sales promotion offer5 A?%+% $ " %'#).Role of sales promotions in FMCG sector Sa+*( Pr"&" %"' . 9%*C 5%++%'7'*(( " ?)$ "' (a+*( -r"&" %"' ".!( a .r"& !* C"'()&*r( -"%' ".. S.

etter response5 T'is 4as reinforce) .Role of sales promotions in FMCG sector Ma.ot' -ie4e) t'at companies 4ere !sin" sales promotion acti-ities mainl( to increase s'ort term sales or enco!ra"e s4itc'in" or sellin" e.( t'e cons!mer s!r-e( 4'ic' s'o4e) t'at recall in case of 'ea-il( promote) sc'emes on TM 4as fo!n) to .o!t cons!mer preferences%5 Since retailers o.e -er( 'i"'5 RetailersA pre)iction of companiesA moti-ation for offerin" sales promotion 4ere matc'in" 4it' t'e cons!mer perception re"ar)in" t'e same5 T'!s .( cons!mers an) retailersA perceptions a.!( t'eir re"!lar .e'a-ior are li$el( to .ser-e cons!mers in store .( 9to attract s4itc'ers: an) 9to sell e.enefit an) not for t'e .orit( of respon)ents 'a) a perception t'at t'e 3!alit( of t'e promote) .e acc!rate5 S!c' inp!ts from t'e retailers 4o!l) .cess stoc$s:5 >'ile pro-i)in" -al!e to c!stomers: an) 9To reinforce compan( ima"e: 4ere ran$e) lo4est5 T'is in)icates t'at cons!mers .e !sef!l to companies5 T'e retailers 'a) t'e perception t'at t'ose sc'emes 4'ic' 4ere anno!nce) t'ro!"' mass me)ia 'a) .ran)s remaine) t'e same )!rin" promotion+ 4'ile some of t'em felt t'at it 4as inferior t'an .enefit of cons!mers5 Fin)in"s from retailer an) cons!mer perception st!)ies+ it is e-i)ent t'at t'ere 4as a matc'in" of perceptions re"ar)in" nat!re of sc'eme #price offs as most preferre) t(pe of sc'eme mentione) .ran) an) sai) t'at sales promotion 4o!l) not 4ea$en t'eir lo(alt( to4ar)s t'e .ran)5 P*r.e'a-ior 4ere fre3!entl( an) )irectl(+ t'eir perceptions re"ar)in" pro-i)in" cons!mer .elie-e) t'at companies 4ere !n)erta$in" s!c' acti-ities onl( for t'eir o4n .cess stoc$ an) not reall( to "i-e -al!e .efore5 It can .*.ran)Hcompan( ima"e5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &/ .ran) 3!alit( perceptions5 It is fo!n) t'at some c!stomer stron"l( preferre) to .%"'( r*7ar#%'7 )'#*r+$%'7 .enefit or en'anceHreinforce .e inferre) t'at promotions 4ere not lea)in" to ne"ati-e ."&-a'$ &" %9a %"'( On tappin" perceptionsA re"ar)in" !n)erl(in" compan( moti-ations for sales promotion+ 9to increase sales: 4as ran$e) 'i"'est follo4e) .

9%*C0 P*r.%"'( a?") !*%r r"+* %' #*.%"'( "' S.%"'( a?") B)$%'7 R"+*( Retailers -ie4e) t'at t'e person 4'o came to t'e s'op #4'o ma( .*.!*&* Pr*.Role of sales promotions in FMCG sector Tra#* Or%*' *# Sa+*( Pr"&" %"' Tra)e Oriente) Sales Promotion aime) to moti-ate c'annel mem.o!t t'e sales promotion acti-it( at t'e point of p!rc'ase co!l) res!lt into t'e p!rc'ase of a promote) .ran) an) not t'e Income pro-i)er #e5"5 'ea) of t'e famil(%5 It co!l) .e a mai)+ son+ )a!"'ter+ )a!"'ter1in1la4 an) c'il)% 4as t'e )eci)er of a toilet soap .*.on!s pac$+ premi!m+ contests+ in or)er of importance5 P*r.%(%"'D&aA%'7 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &2 .!tors an) retailers to carr( a pro)!ct an) ma$e an e.tra effort to p!s' it to t'eir c!stomers Sa+*( -r"&" %"' .r"& !* r* a%+*rB( -"%' ".ran)5 P*r.er of t'e compan( an) to enco!ra"e t'em to p!s' compan(As pro)!ct5 Tra)e Oriente) Sales Promotion incl!)es )ealer contest an) incenti-es+ tra)e allo4ances5 Point1of1p!rc'ase )ispla(s+ sales trainin" pro"rams+ tra)e s'o4s+ cooperati-e a)-ertisin"+ an) ot'er pro"rams )esi"ne) to moti-ate )istri.e inferre) t'at -isi.*.*r*'.etter form of sales promotion acti-it(5 Price offs in t'eir opinion 'a) relati-el( a "reater impact compare) to an( ot'er form of sales promotion acti-it( li$e Bon!s pac$s+ Premi!m+ Contests etc5 Retailers preferre) price offs t'e most+ t'en .* It 4as fo!n) t'at retailer percei-e) price offs as a .ilit( of information a.

ran)s+ an) so!"'tHloo$e) for or as$e) 4'et'er t'ere 4ere an(% sales promotion sc'emes r!nnin" on an( toilet soap at t'e time of p!rc'ase5 P*r.le to tr(in" ne4 .i" retailers 4ere pampere) an) "i-en special ser-ices an) "i-en .e create)5 P*r..o!t sales promotion sc'emes .o!t sales promotion acti-ities from t'e )ealers5 Man( a times small retailers 4ere onl( informe) -er.( t'e )ealer salesmen )!rin" t'e sc'e)!le) 4ee$l( -isits5 D*a+*rDR* a%+*r D$'a&%.*r( T'e( .etter allo4ances5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% && .e inferre) t'at -isi.elie-e) t'at (o!n"er a"e1"ro!ps 4ere more e.all( a.ran)s an) 4ante) pa(ment for s'elf an) 4in)o4 )ispla( to increase traffic into t'eir store5 Fo4e-er+ s!permar$ets an) .*.*.%"'( a?") C"&&)'%.o!t t'e sc'eme 4ere t'e critical s!ccess factors so t'at p!ll co!l) .ilit( an) a4areness a."r&a %"' F+"C Smaller #non1s!permar$et+ small format store% retailers recei-e) relati-el( less s!pport compare) to s!permar$ets in terms of ser-icin"+ mar"ins+ information a.perimental in nat!re+ amena.%"'( a?") R*(-"'(* " Sa+*( Pr"&" %"' O.!*&*( Retailers percei-e) t'at role of 4or) of mo!t' an) tele-ision a)-ertisin" pla(e) an important part in pro-i)in" information inp!ts to cons!mers re"ar)in" sales promotion acti-ities5 Ear%a %"'( %' I'.etter mar"ins an) . Sa+*( Pr"&" %"' S.Role of sales promotions in FMCG sector Retailer 'a) relati-el( -er( lo4 infl!ence in affectin" c'oice5 It co!l) .a %"'( ".( *t t'e time of sales promotion acti-ities+ )ealers 'a) ten)enc( to p!s' !n4ante) stoc$s onto t'e smaller retailers5 In fact t'ese retailers preferre) to stoc$ -ariet( of .

ran) . POP Retailers in)icate) t'at most of t'e POP #Point of P!rc'ase% materials 4ere meant for .t of .( 'im etc5 Mostl( mar"ins 4ere lin$e) to si8e of t'e -ol!mes t'at 4ere or)ere)5 P*r. D"9*r * lefto-er stoc$ at t'e en) of an( sc'eme 4as re3!ire) to .e sol) ."'#% %"'( Retailers 4ere not fo!n) to .e 'app( 4it' sales promotion sc'emes 4'ere t'eir mar"ins 4ere c!t on t'e prete.( t'e )ealer salesman .t sc'e)!le) 4ee$l( -isit .!*&* In stoc$1o!t sit!ation )!rin" t'e r!nnin" of t'e sales promotion sc'emes+ smaller retailers 'a) to 4ait for replenis'ment of stoc$s till t'e ne.ein" promote)5 *lso if a))itional incenti-e 4as offere) it 4as s!.ar"ainin" po4er of a retailer+ 3!antit( or)ere) .*.on!s pac$s sc'eme+ lefto-er stoc$ 4as often )ismantle) #c!t open .( t'e retailers .Role of sales promotions in FMCG sector Mar7%'( It 4as fo!n) t'at in sales promotion sc'emes mar"ins -arie) from B to2@K )epen)in" of t'e si8e of t'e retail o!tlet+ . S.i" retailers 4ere ser-ice) on telep'onic re3!est for replenis'ment of stoc$s5 T'is clearl( in)icate) t'e )isparit( in treatment5 Pr"?+*& ".!st fast mo-ement of in-entor( of t'e .%"'( a?") *r&( a'# .!( one "et one free% an) sol) t'em in)i-i)!all( as a re"!lar soap5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &7 .efore t'e( or)ere) fres' stoc$s5 In case of .ran) a)-ertisement an) not for "i-in" information re"ar)in" t'e sc'emes5 T'!s it co!l) .%'7 #)r%'7 #)ra %"' ".!t . +*.e inferre) t'at compan(As follo4 !p 4as not a)e3!ate5 S*r9%.ect to minim!m performance re3!irement5 Na )r* "..

erin" eac' offer an) 'an)lin" 4as a pro.( "i-in" free "ifts li$e t'ermos flas$s or cloc$s if t'e( sol) more t'an certain 3!antit( in a "i-en perio)5 Companies 4ere ma$in" a 'alf1'earte) effort to moti-ate retailers5 P*r.ample Me)imi.!t 'e 4o!l) re-ert .ran)s5 For e. Gol) Star 4'ic' 4as 'ea-il( promote) on T5M5 is recalle) e-en to)a(5 P"( Pr"&" %"' B*!a9%"r Retailers o. ( .*.Role of sales promotions in FMCG sector T'is approac' of t'e compan( lea)s to misappropriation 4'ic' in t!rn co!l) res!lt in a)-erse .!(er to s4itc' a ."r R* a%+*r &" %9a %"' Companies at times 4ere re4ar)in" retailers .%"'( a?") &a(( &*#%a a''")'.*&*' ( Retailers -ie4e) t'at 4'ene-er sales promotion sc'eme 4as anno!nce) on TM+ it create) p!ll an) t'e( 4ere more t'an 4illin" to stoc$ s!c' .ser-e) t'at in most cases sales promotion sc'eme on a .ran) after promotion5 Ha'#+%'7 Pr"?+*&( Man( a timeAs retailers 'a) to 'an)le -ario!s sales promotion offers sim!ltaneo!sl( in a cate"or( an) also across cate"ories an) t'ere 4as no formal comm!nication plannin" eit'er from t'e )ealer or t'e compan(5 Remem.ac$ to ori"inal .lem especiall( for a small retailer 4'ic' 4as often an as one1man s'o45 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &= .ran) temporaril( .ran) mi"'t enco!ra"e a . an) Dettol contest 4as not a)-ertise) on TM+ 'ence t'ere 4as -er( little a4areness lea)in" to !nsol) stoc$ till B mont's5 >'ile !.ran) ima"e5 G%.

Role of sales promotions in FMCG sector Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &@ .

*.pansion5 1) Cons!mer can increase t'e 3!antit( t'e( .eca!se t'e pro)!ct is on sale5 2) Cons!mers are in)!cin" to p!rc'ase anot'er .( t'e promotion5 Fo4e-er+ in t'e lon" term t'is positi-e effect ma( .!*&*( a.e )il!te) .. (a+*(F T'ere are t'ree mec'anisms .Role of sales promotions in FMCG sector 5!$ #" Sa+*( -r"&" %"' (.ran) )ifferent from t'e one t'e( 4o!l) 'a-e p!rc'ase) 4'en t'ere is no promotional incenti-e5 .e'in) t'ese facts5 It is P!rc'ase 3!antit(+ Bran) s4itc'in" an) Cate"or( e.!st .!( .) Cons!merAs total cons!mption of t'e pro)!ct cate"or( is increase) .eca!se a promotional campai"n 'as no permanent effect in t'e sales of t'e firm Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &B .

( pre)ictin" an) mo)if(in" (o!r tar"et c!stomerAs p!rc'asin" .!siness+ 4it'o!t sales t'ere 4o!l) .!siness 4ants to s!ccee)+ it s'o!l) 'a-e a sales promotion strate"( in min)5 T'e primar( o.oost t'e sales of a pro)!ct or ser-ice5 T'is can .ecti-e of a sales promotion is to impro-e a compan(As sales .oostin" its sales5 >'en )e-elopin" a sales promotion strate"( for (o!r .!(in" patterns Yo!r .!siness+ it is important t'at (o! $eep t'e follo4in" points in min)5 • • • • • Cons!mer attit!)es an) .'i.lic relation acti-ities+ a free samplin" campai"n+ a free "ift campai"n+ a tra)in" stamps campai"n+ t'ro!"' )emonstrations an) e.e )one t'ro!"' an a)-ertisin" campai"n+ p!.e'a-ior an) patterns5 Sales promotion is -er( important as it not onl( 'elps to .loo) of a .eca!se a sales promotion strate"( is important to a .e no ..itions+ t'ro!"' pri8e "i-in" competitions+ t'ro!"' temporar( price c!ts+ an) t'ro!"' )oor1to1)oor sales+ telemar$etin"+ personal sales letters+ an) emails5 T'e importance of a sales promotion strate"( cannot .!siness to )ra4 ne4 c!stomers 4'ile at t'e same time retainin" ol)er ones5 T'ere are a -ariet( of sales promotional strate"ies t'at a .ilit( an) pricin"5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &D .ternal factors t'at can infl!ence pro)!cts a-aila.ran) strate"( Yo!r competiti-e strate"( Yo!r a)-ertisin" strate"( Ot'er e.!siness .oost sales .Role of sales promotions in FMCG sector Sa+*( Pr"&" %"' S ra *7$ Sales are t'e life.!siness in t'e first place? t'erefore it is -er( important t'at if a .e !n)erestimate)5 T'is is .!t it also 'elps a .!siness can !se to increase t'eir sales+ 'o4e-er it is important t'at 4e first !n)erstan) 4'at a sales promotion strate"( act!all( is an) 4'( it is so important5 * sales promotion strate"( is an acti-it( t'at is )esi"ne) to 'elp .

ination of t'e t4o A P)(! S ra *7$0 * Np!s'A sales promotion strate"( in-ol-es Np!s'in"A )istri.!tor5 T'is strate"( in-ol-es "ettin" t'e cons!mer to Np!llA or p!rc'ase t'e pro)!ctHser-ices )irectl( from t'e compan( itself5 T'is strate"( tar"ets its mar$etin" efforts )irectl( on t'e cons!mers 4it' t'e 'ope t'at it 4ill stim!late interest an) )eman) for t'e pro)!ct5 T'is p!ll strate"( is often !se) 4'en )istri.!tors an) retailers to sell (o!r pro)!cts an) ser-ices to t'e cons!mer .!tors to carr( (o!r .( offerin" -ario!s $in)s of promotions an) personal sellin" efforts5 >'at 'appens 'ere is t'at a compan( promotes t'eir pro)!ctHser-ices to a reseller 4'o in t!rn promotes it to anot'er reseller or to t'e cons!mer5 T'e .ac$ "!arantees+ free trials+ contests+ )isco!nts+ an) specialt( a)-ertisin" items5 A P)++ S ra *7$0 * Np!llA sales promotion strate"( foc!ses more on t'e cons!mer instea) of t'e reseller or )istri.!tors are rel!ctant to carr( or )istri. (a+*( -r"&" %"' ( ra *7%*(0 • • • * p!s' strate"( * p!ll strate"( or * com.!te a pro)!ct5 T(pical p!ll sales promotion strate"ies incl!)e? samples+ co!pons+ cas' ref!n)s or re.ates+ lo(alt( pro"rams an) re4ar)s+ contests+ s4eepsta$es+ "ames+ an) point1of1p!rc'ase )ispla(s5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &C .Role of sales promotions in FMCG sector T!*r* ar* !r** $-*( ".ran)+ "i-e it s'elf space+ promote it .asic o.!(1..( a)-ertisin"+ an) !ltimatel( Np!s'A it for4ar) to t'e cons!mer5 T(pical p!s' sales promotion strate"ies incl!)e? .ecti-e of t'is strate"( is to pers!a)e retailers+ 4'olesalers an) )istri.

ination of a p!s' an) a p!ll strate"(5 It foc!ses .ein" r!n5 T'e ma.( si)e 4it' )ealer )isco!nts5 T!* S!"r *r& I&-a.. . ".ot' parties )irectl(5 It offers cons!mer incenti-es si)e .elo45 T*&-"rar$ -r%.ot' on t'e )istri. TC" S ra *7%*(0 * Ncom.* r*#).) ()?( a' %a++$ %'.ran) in t'e s'ort term5 St!)ies 'a-e consistentl( reporte) 'i"' sales effects an) 'i"' price elasticit( of .orit( of t'e empirical st!)ies 'a-e foc!se) on t'e impact of promotions in t'e s'ort term5 T'e $e( fin)in"s across t'e st!)ies are )isc!sse) .pansion an) cons!mer stoc$pilin" )!rin" a promotion5 Sa+*( Pr"&" %"' +*a#( " ?ra'# ()?( % ) %"' C% ! !* -r"#).oost can .ran)s 4'ic' are on promotion5 T'e economic rationale for t'e promotional response is clear O temporar( price c!ts increase t'e -al!e of t'e pro)!ct to t'e cons!mer an) it lea)s to imme)iate action5 Sales .Role of sales promotions in FMCG sector A C"&?%'a %"' ".!tor as 4ell as t'e cons!mers+ tar"etin" .r*a(* (a+*(0 T'ere is ample e-i)ence to s'o4 t'at promotions lea) to )ramatic increases in sales of promote) .e 3!antifie) on t'e .inationA sales promotion strate"( is .* ".asis of .a *7"r$0 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &0 .e'a-ior )!rin" t'e promotional perio) i5e5 t'e 4ee$ or t'e mont' 4'en t'e promotion 4as .ran) s4itc'in"+ primar( )eman) e.!st t'at? it is a com. %"'( (-r%. Pr"&" %"'(0 etAs 'a-e loo$ at t'e impact of promotions on p!rc'ase .

acon+ salte) snac$s+ soft )rin$s an) (o"!rt e.e e.ran)s impacts 4ea$er .ran) s4itc'in" 'a-e s'o4n t'at .ite) Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7/ .a *7"r$0 >'ile it 4as tra)itionall( ass!me) t'at cons!mption rates remain fi.A-%+%'7 *.!( more an) cons!me faster5 It is fo!n) t'at promotion in)!ce) in-entor( temporaril( increase) cons!mption rates 4it'in t'e cate"or( e5"5 in cate"ories s!c' as .t p!rc'ase in t'e cate"or( occ!rs+ t'!s in)icatin" t'at t'ere 'as .pansion occ!rs+ promotion in)!ce) increase in p!rc'ase 3!antities )oes not si"nificantl( e. (0 In response to a promotion+ cons!mers ma( .*+*ra %"'2( ".ten) t'e time till t'e ne.ran)s in)!ce a lar"e n!m.'i.'i.!( at an earlier time t'an !s!al #p!rc'ase acceleration effect%5 If cons!mers .*."r a .ran) s4itc'in"+ p!rc'ase time acceleration an) stoc$pilin"5 St!)ies on .tra 3!antit( )!rin" a promotion or earlier t'an normal+ t'en t'e( are not in t'e mar$et to .!t from t'is pro.( 4aitin" lon"er !ntil p!rc'asin" a"ain5 Res!lts in)icate) t'at 'ea-( !sers ten)e) to accelerate p!rc'ases more t'an li"'t !sers5 T'ere 4as ne"li"i.ran) s4itc'in" effects 4it'in a cate"or( are as(mmetric s!c' t'at promotions on 'i"'er 3!alit( ..Role of sales promotions in FMCG sector T'e sales N.ran)s )isproportionatel(5 D!rin" a promotion+ 'i"'er 3!alit( .een an increase in cons!mption promotions in)!ce) cons!mers to .le )ifference in t'e acceleration propensities of 'i"' -ers!s lo4 income "ro!ps5 Sa+*( Pr"&" %"' +*a#( " -r%&ar$ #*&a'# *8-a'(%"' .e) )!rin" an) after a promotion+ .!( e.ect I came to $no4 t'at promotions also 'a-e a primar( )eman) e.!( more 3!antit( of t'e pro)!ct cate"or( or ..!mpA )!rin" t'e promotional perio) into sales )!e to .!( pro)!cts once t'e promotion is o-er5 * len"t'enin" of inter p!rc'ase times after a promotion5 P!rc'ase acceleration 4as more li$el( to .pansion effect5 >'en a primar( )eman) e.!a(* a.ite) in increase) p!rc'ase 3!antit( t'an in s'ortene) inter p!rc'ase times5 Res!lts s'o4e) t'at cons!mers mostl( ma)e !p for t'e lar"e 3!antit( p!rc'ase) .er of cons!mers to s4itc' to t'em as compare) to lo4er 3!alit( .ran)s5 Sa+*( Pr"&" %"' +*a#( " -)r.

ite) stoc$pilin" onl(5 Sa+*( Pr"&" %"'( a.pansions as a res!lt of promotion 4'ile .at'room tiss!e+ coffee+ )eter"ent an) paper to4els e."&-+*&*' ar$ a'# ."&-* % %9* .'i.ran) s!. (a+*( %' .*.ect it is fo!n) t'at promotion not onl( increases sales of main pro)!ct .stit!tion .e'a-ior5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 72 .a *7"r%*(0 From t'is pro.et4een pro)!cts of t'e promote) pro)!ct cate"or( in)icatin" .!t it also lea) to increase in sales of complementar( cate"ories5 Fo!n) stron" cross relations'ips ..Role of sales promotions in FMCG sector primar( )eman) e.

it lon" term effects5 It is o.ran)s of esta.!(in" lo(alt(5 T'e e.ran)As e.ran)As sales or repeat .'i.ran) 4as not'in" ne45 It is fo!n) t'at alt'o!"' t'e s'ort term effects of promotions are stron"? t'ese promotions rarel( e.ase for 4'ic' t'e e. ".!(in" t'e promote) .!il)s to reap t'e .ran) 4'ile promote) came -irt!all( all from t'e .tra sales of a .orro4e) from t'e f!t!re t'an increase) cons!mption Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7& .( re)!ce) )eman) in t'e lon" term5 T'!s increase) sales 4ere more a res!lt of sales .ine) s'ort an) lon"1term elasticit( of promotions 4as 8ero5 T'e stoc$pilin" in)!ce) .lis'e) pac$a"e) pro)!cts 'a) no after1effects on t'e .perience of . Pr"&" %"'(0 Strate"ies are .ser-e) t'at eac' sales component "enerall( lac$e) a permanent effect an) t'e effect of promotion 4as s'ort li-e) an) increase in promotions affecte) cons!mersA stoc$pilin" )ecisions in t'e lon" r!n5 T'e( fo!n) t'at t'e com.enefits for lon"er perio) of time? same is tr!e in sales promotion strate"ies5 et !s see impact of promotions effort an) st!)( t'e impact o-er a lon"er time perio) e5"5 =1B mont's or e-en a fe4 (ears after a sales promotion campai"n5 T'e res!lt s'o4e) t'at cons!mer promotions for lea)in" .Role of sales promotions in FMCG sector T!* L"'7 *r& I&-a.istin" lon"1term c!stomer .( a promotion 4as essentiall( offset .

port potential5 Increasin" income le-els 4ill res!lt in faster re-en!e "ro4t'55 Threats: • • • Imports5 Ta. "r Strengths: • • • >ell1esta.!tion net4or$ e. FMCG S*.ran)s in t'e FMCG sector5 o4 cost operations5 Weaknesses: • • o4 e.port le-els5 Small1scale sector reser-ations limit a.lis'e) )istri.ilit( to in-est in tec'nolo"( an) ac'ie-e economies of scale5 Se-eral Pme1tooAA pro)!cts5 • Opportunities: • • • ar"e )omestic mar$et5 E.Role of sales promotions in FMCG sector S5OT A'a+$(%( ". an) re"!lator( str!ct!re5 Slo4)o4n in r!ral )eman)5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 77 .ten)in" to r!ral areas5 Stron" .

Role of sales promotions in FMCG sector D*T* *<* YSIS (C"'()&*r() Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7= .

ran)s in t'e mar$et5 Form t'e a.!o( <ima Ot'ers R*(-"'#*' ( =2 7 2= C 7= Ba !%'7 ("a-( 50 40 30 20 10 0 Respondents Lux 41 Hamam 3 Lifebuoy 14 Nima 8 Others 34 I' *r-r* a %"'0 T'e a.!o(+ <ima%5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7@ . S"a. 5!%.een forme) to $no4 t'e soaps an) )eter"ents at t'e top of t'e min) of t'e c!stomers5 It s'o4s t'ose cons!mersA p!rc'ase an) !se of t'at partic!lar .! ?ra'# ".2 D* *r7*' #" $") )(*F Ba !%'7 G("a-( !.or pla(ers #Famam+ ife.o-e res!lt it is clear t'at o!t of 2// c!stomers more t'an =/ are cons!mers are 'a-in" t'e same . Famm ife.ran) as t'e ima"e in t'eir min)+ 4'ereas ot'ers cate"or( is also s'o4in" t'e 'i"'er "rap' t'an t'ese 7 ma.Role of sales promotions in FMCG sector @1.ran)5 It 4ill 'elp to t'e compan( to $no4 t'e mar$et scenario an) t'e ma.or .o-e 3!estion 'as .

ran) of )eter"ent+ 4'ereas all ot'ers are on same le-el5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7B .o-e res!lt it is clear t'at o!t of 2// c!stomers 7@ are p!rc'asin" t'e same .Role of sales promotions in FMCG sector D* *r7*' -"C#*r <irma s!pper >'eel S!rf *riel Ot'ers R*(-"'#*' ( 20 2= 7@ 2C 2= D* *r7*' P"C#*r 40 35 30 25 20 15 10 5 0 Respondents Nirma sup 19 hee! 14 "urf 35 #rie! 18 Othres 14 I' *r-r* a %"'0 Form t'e a.

)+ar( Yes <o R*(-"'#*' ( @B == Bra'# +"$a+ $0 50 40 30 20 10 0 Respondents %es 5$ No 44 I' *r-r* a %"'0 T'e o.e'in) t'e formation of t'is 3!estion is to $no4 t'e le-el of .ran)s of )eter"entHsoap5 FMCG are s!c' a mar$et 4'ere t'e le-el of lo(alt( remains lo4 an) t'is is ..le in t'e mar$et5 T'e a.2 D* *r7*' F Par %.o-e fi"!re s'o4s t'at on @BK of t'e respon)ents are lo(al to t'eir .Role of sales promotions in FMCG sector @2. D" $") a+Ca$( ?)$ !* (a&* ?ra'# ". S"a.eca!se of man( reasons5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7D .ecti-e .ran) lo(alt( of t'e cons!mers to4ar)s t'e .ran)s of soaps a-aila.

"'(%#*r C!%+* -)r.0a'in' $ 11 Others 3 3 I' *r-r* a %"'0 T'e o.! . "r( #" $") '"r&a++$ .e'in) t'is 3!estion is to $no4 t'e effect of infl!encin" factors in t'e p!rc'ase )ecision of t'e soaps an) )eter"ent po4)ers5 It mainl( contains t'e factors li$e+ 3!alit( 4'ic' pla(ers an important role in t'e p!rc'ase )ecision of t'e soaps an) )eter"ents ..ecti-e .. %'7 -)r.ot'5 If 4e loo$ at t'e "rap' of t'e soaps an) )eter"ent it s'o4s 3!alit( as t'e Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7C . "r( a.2 D* *r7*' (F Fa.e &athin' soap (et)po*der 19 18 -ua!ity 33 3$ .!a(%'7 a -ar %.*. S"a.e 23 19 /a.ompany ima'e 1$ 13 /ri..-"C#*r 2C 7B 27 20 22 7 Fa.)+ar ?ra'# ". 5!%.a.Role of sales promotions in FMCG sector @.!a(* ?*!a9%"r 40 30 20 10 0 +ra'ran. "r( Fra"rance J!alit( Compan( ima"e Price Pac$a"in" Ot'ers Ba !%'7 ("a20 77 2B &7 B 7 D* .

S"a. *#0 C"' %'7*'.)+ar ?ra'# ".ser-e) fre3!encies an) fe: E.Role of sales promotions in FMCG sector most infl!encin" factors in t'e p!rc'ase )ecision 4'ile price is also an important for p!rc'ase )ecision5 @4."'(%#*r -r"&" %"'a+ (.$ Ta?+* Respon)ent Yes <o Male &&5= =@5B Female 2/5B &25= & T'e test statistics χ = ∑ (f/ − fe ) & fe 4'ere fo: O.!*&*( C!%+* -)r.pecte) fre3!encies5 T'erefore+ χ& = ( &7 − &&5=) & &&5= = /5/D= + (2/ − 2/5B) & 2/5B + ( =@ − =@5B) & =@5B + #&& − &25=% & &25= Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 70 .o-e '(pot'esis5 T'e o.2 D* *r7*' F F/: Gen)er is in)epen)ent of promotional sc'eme F2: Gen)er is )epen)ent of promotional sc'eme >e 4ill !se C'i1S3!are test to test t'e a. Q #ro4 i total%#col!mn . total% < E8-*.!a(%'7 a -ar %. D" $") .ser-e) fre3!encies are Da a0 C"' %'7*'.$ Ta?+*0D Respon)ent Yes <o Total Male &7 =@ BC Female 2/ && 7& Total 77 BD 2// T'e e.pecte) fre3!encies are calc!late) !sin" Ei.

tra 3!antit( is t'e t4o main offersHsc'emes 4'ic' cons!mers 'a-e Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =/ .! ".( t'e mar$eters to attract more an) more cons!mers5 T'e res!lts s'o4 t'at price off an) e.ecte)5 Concl!sionI55 @5.oupons Respondents 1$ pri."++"C%'7 -r"&" %"'a+ (.tra 3t(5 R*(-"'#*' ( 2B C= &= 2& 0 72 == Fa&%+%ar% $ ".!*&*( 100 80 $0 40 20 0 .ards 12 !u.r"(( (" .e off 84 +reebies 24 s. 5!%."&* a.ser-e) -al!e of c'i1s3!are /5/D= is less t'an t'e critical -al!e of c'i s3!are 75C= t'e n!ll '(pot'esis is not re.0y dra* 9 &und!in' 31 extra 1ty) 44 I' *r-r* a %"'0 T'e a.ies scratc' car)s l!c$( )ra4 B!n)lin" e.!*&*( $") !a9* .!*&*( Co!pons price off Free. !* . -r"&" %"'a+ S.arF Pr"&" %"'a+ (.le+ χ2& #/5/@% = 75C= 5 Since t'e o.o-e state) 3!estion clearl( states t'e a4areness of promotional sc'emes offere) in t'e mar$et .h .Role of sales promotions in FMCG sector *ss!min" RQ /5/@+ 4e 'a-e from c'i1s3!are ta.rat.

**+ %( ()% a?+* " -r"&" * !* 9ar%")( -r"&" %"'a+ (.etter t'an ot'er Me)ias5 T'e a.! &*#%)& #" $") .e la!nc' or t'e( t'in$ it 4o!l) .est me)ia to mar$et t'e pro)!ct 4'ic' 4ill co-er ma.* Ra)io TM <e4spaper Foar)in" Ot'ers R*(-"'#*' ( 22 B0 =7 2@ 2& M*#%)&( " -r"&" * !* -r"&" %"'a+ (.!*&*( 80 $0 40 20 0 Respondents Radio 11 23 $9 Ne*s)ppr 43 Hoardin' 15 Others 12 I' *r-r* a %"': T'is 3!estion "i-es stress on t'e me)ia 'a. 5!%.orit( of Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =2 .!*&*(F S")r.e .o-e res!lt s'o4s TM as t'e .it of t'e people an) t'ro!"' 4'ic' t'e pro)!ct s'o!l) .Role of sales promotions in FMCG sector came across at t'e time of p!rc'ase5 It 4ill 'elp t'e man!fact!rers an) mar$eters too 'o4 too la!nc' t'eir ne4 pro)!cts in t'e mar$et 4it' 4'ic' sc'emes5 @<.

!*&* "' !* S"a.2 D* *r7*' 40 $0 50 40 30 20 10 0 Respondents %es 58 No 42 I' *r-r* a %"'0 T'e ans4er of t'e respon)ents "i-e i)ea a.o!t t'e promotional sc'emes r!nnin" into t'e mar$et5 It s'o4s t'at people are not m!c' a4are of t'e Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =& .)+ar( Yes <o R*(-"'#*' ( @C =& E8%( %'7 (.istin" soaps an) )eter"ents5 In t'is sit!ation more t'en =/K of t'e people are not a4are or 'a-in" -a"!e i)ea a. I( !*r* a'$ *8%( %'7 (.)rr*' +$ )(%'7F Par %.Role of sales promotions in FMCG sector t'e -ie4er s'ip5 On t'e secon) place it s'o4s ne4s papers as t'e me)ia to promote t'e pro)!ct in t'e mar$et5 @=.o!t t'e a4areness of t'e promotional sc'emes offere) in t'e mar$et on t'eir e.2 D* *r7*' $") ar* .!*&* "' !* S"a.

$*(H -+*a(* (-*.o-e 3!estion5 It enlists t'e ans4ers of t'ose c!stomers 4'o are a4are of t'e present sc'emes offere) in t'e mar$et an) also t'ose sc'emes Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =7 .Role of sales promotions in FMCG sector sc'emes 4'ic' contin!e in t'e mar$et it ma( .%.)+ar( 7S2HOt'er Free Disco!nt <o i)ea <o ans4er R*(-"'#*' ( 7B && B 7B 40 35 30 25 20 15 10 5 0 "eries1 3516Other +ree 3$ (is. I.ount 22 No idea $ No ans*er 3$ I' *r-r* a %"'0 T'is 3!estion s!pports t'e a.$F Par %.e .eca!se of t'e present stoc$ of t'e pro)!ct at t'eir place5 @1.

%9* -r"&" %"'a+ ".)+ar( Yes <o R*(-"'#*' ( D7 &D SC% . $") 7* a' a ra.!%'7 ?*!a9%"r 80 40 $0 50 40 30 20 10 0 Respondents %es 43 No 24 I' *r-r* a %"'0 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% == . I.Role of sales promotions in FMCG sector 4'ic' are more )eman)e) in t'e mar$et5 T'e res!lt s'o4s t'at 2S2 or &S2 or ot'er free sc'emes are more )eman)e) an) more a4are sc'emes in t'e mar$et5 So man!fact!rers ma( "o for t'e same at t'e time of la!nc'in" t'eir pro)!ct5 @>. $")r .* C%++ $") (C% .!"%.! "9*rF Par %.*r %' !* -r"#). " !*r !*' "..

etter in t'e mar$et5 @13."r !* (a&*F Par %.ination of all t'ese sc'emes 4ill r!n .!)"et means more 3(t S less cost S 3!alit(5 Com.ran) if t'e( fin) .enefitH.)+ar( CostS3t( J!alit( Satisfaction Bran) lo(al More .!)"et Season c'an"e <o ans4er R*(-"'#*' ( 2B 2D & @ && & 7B Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =@ .etter promotional sc'emes 4'ic' s!its t'eir .ran) lo(alt( amon" t'e cons!mers5 T'e res!lt clearl( s'o4s t'at o!t of 2//+ D7 people are rea)( to s4itc' o-er to anot'er .Role of sales promotions in FMCG sector It s'o4s t'e le-el of . G%9* r*a("' .

ran)s5 @11. G%9* ()77*( %"'( a?") . -r"&" %"'a+ (.han'e 2 No ans*er 3$ I' *r-r* a %"'0 *.Role of sales promotions in FMCG sector R*a("' 40 30 20 10 0 .pectations from t'e 4'et'er compan( to come 4it' ne4 sc'emes or contin!e 4it' present one5 It s'o4s cons!mers )eman) 4'ic' t'e man!fact!rers 'a-e to meet5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =B .o-e 3!estion it "i-es specific reasons for s4itc'in" too ot'er pro)!cts5 It s'o4s t'at e.!*&*(F T'is s'o4 t'e cons!mersA f!t!re e.ost51ty Respondents 1$ -ua!ity 14 Satisfaction &rand !oya! 2 5 7ore &enefit6bud 22 "eason .tra 3!antit( 4it' less or same price+ more satisfaction+ 3!alit( an) ot'er factors infl!ence cons!mers to s4itc' o-er too ot'er .) )r%( %.

Role of sales promotions in FMCG sector Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =D .

Role of sales promotions in FMCG sector D*T* *<* YSIS (R* a%+*r() Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =C .

enefits t'e( are "ettin" more as compare to ot'ers5 It also s'o4s t'eir e.enefit to t'e retailers 4'o are on t'e mar$et from lon" perio) of time an) t'e .)+ar( 21@ Years @12/ Years More t'an 2/ (ears R*(-"'#*' ( &= &D =0 $0 50 40 30 20 10 0 "eries1 185 %ears 24 5810 %ears 24 7ore than 10 years 49 I' *r-r* a %"'0 T'is 3!estion "i-es i)ea a.* !"C +"'7 ar* $") %' !%( ?)(%'*((F Par %.o!t t'e . S%'.Role of sales promotions in FMCG sector @1.o!t t'e .enefits t'e( are "ainin" for 4'olesalers an) )irect from t'e compan(5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =0 .perience in t'e fiel) an) t'e ser-ices t'e( are pro-i)in" too t'eir ne4 an) re"!lar c!stomers5 It also "i-es i)ea a.

Ot'ers R*(-"'#*' ( 0B 2// 0/ 0= BC S"a. Na&* !* S"a.A 120 100 80 $0 40 20 0 "eries1 Nirma 9$ H9L 100 /:. 90 .Role of sales promotions in FMCG sector @2.2 D* *r7*' (C"&-a'$) $") ( "."r. C"&-a'%*( <irma FU PTG Go)re.2 D* *r7*' %' ( ".odre< 94 Others $8 I' *r-r* a %"'0 It "i-es i)ea a.A .o!t t'e capacit( of t'e retailers to stoc$ t'e "oo)s an) also t'e -ariet( of t'e pro)!cts t'e( are stoc$in"5 It 4ill also ma$e clear t'e )eman) of t'e "oo)s in t'eir stores an) t'e sellin" of t'e pro)!ct in mar$et5 Most of t'e retailer stoc$s all t(pes of soap an) )eter"ent5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @/ .

"r( !a .o-e res!lt people are more 3!alit( Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @2 . (Ra'A .2 D* *r7*' . S"a.a. Ra'A !* .0a'in' Others 1 3 $$ 9 14 4 1 2 24 23 18 28 5 2 3 33 4 34 24 2 0 4 22 3 24 1$ 24 8 5 10 1 11 $ 38 34 $ 8 0 4 9 24 55 I' *r-r* a %"'0 It "i-es an i)ea a.e /a.)( "&*r( +""A .e -ua!ity .o!t t'e priorit( t'e infl!encin" factors too t'e cons!mers an) also t'e 4ei"'t a"e of t'at factor o-er ot'er factors5 In t'e a."++"C%'7 .!a(* "."r %' !* -)r.r"& 1 " <) Factors Fra"rance J!alit( Compan( Ima"e Price Pac$a"in" Ot'ers 2 7 BB 0 2D = 2 & &= &7 2C &C @ & 7 77 D 7= &= & / = && 7 &= 2B &D C @ 2/ 2 22 B 7C 7= B C / = 0 &= @@ Ba !%'7 S"a40 $0 50 40 30 20 10 0 +ra'ran.Role of sales promotions in FMCG sector @.ompany =ma'e /ri..

( t'e compan( name an) also from t'e past performance of t'at compan(5 Fra"rance an) pac$a"in" are not infl!encin" factor as per t'e respon)ents5 Fa.Role of sales promotions in FMCG sector an) price oriente)5 On t'e ot'er 'an) people are also conscio!s a.* Pa.e /a.* @)a+% $ C"&-a'$ I&a7* Pr%. "r( Fra7ra'.o!t t'e compan( ima"e5 Beca!se sometimes t'e cons!mer remem.er t'at name of t'e pro)!ct .0a'in' Others 1 11 43 13 24 $ 0 2 14 34 1$ 28 5 0 3 41 1$ 24 14 2 0 4 21 $ 2$ 9 33 5 5 4 1 11 $ 43 32 $ 3 0 4 1$ 11 $3 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @& .e -ua!ity .Aa7%'7 O !*r( 1 22 =7 27 &D B / 2 14 34 2B 28 5 0 3 41 1$ &D 14 2 0 4 21 $ &B 9 33 5 5 4 1 22 $ 43 32 6 3 0 D 1$ 11 $3 D* *r7*' 40 $0 50 40 30 20 10 0 +ra'ran.ompany =ma'e /ri.

!a(* a .o-e res!lt people are more 3!alit( an) price oriente)5 On t'e ot'er 'an) people are also conscio!s a.o!t t'e compan( ima"e5 Beca!se sometimes t'e cons!mer remem. D" $") ()77*( .Role of sales promotions in FMCG sector I' *r-r* a %"' 0 It "i-es an i)ea a.ers t'at name of t'e pro)!ct .)( "&*r( " -)r.)+ar Yes <o R*(-"'#*' ( 77 BD S)77*( %"' 80 40 $0 50 40 30 20 10 0 "eries1 %es 33 No $4 I' *r-r* a %"'0 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @7 .*r a%' ?ra'#F Par %.o!t t'e priorit( t'e infl!encin" factors too t'e cons!mers an) also t'e 4ei"'t a"e of t'at factor o-er ot'er factors5 In t'e a.( t'e compan( name an) also from t'e past performance of t'at compan(5 Fra"rance an) pac$a"in" are also pla( important role for p!rc'asin" )eter"ent po4)er5 @4.

o-e "rap' an) ta. I.o-e "rap' BDK of retailer are not s!""est to p!rc'ase partic!lar .Role of sales promotions in FMCG sector T'is co!l) .ran)5 In a.e a -er( 'elp 3!estion to !n)erstan) t'e role of retailers in t'e p!rc'ase )ecision5 In a.tra mar"in+ relations 4it' cons!mers an) 3!alit( of t'e pro)!cts 4'ic' retailer ma( "et t'e .ran) .!( partic!lar .e man( reasons li$e+ e.ran) lo(al 4'ile 77K of t'e retailer are s!""estin" t'e cons!mers to .!( partic!lar .etter relations 4it' cons!mers an) too pro-i)e 3!alit( pro)!ct to cons!mers t'e( s!""est cons!mers too Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @= . $*( 80 40 $0 50 40 30 20 10 0 Respondents Hi'h mar'in 9 -ua!ity 14 Re!ationship 4 No reason $4 I' *r-r* a %"'0 It "i-es i)ea a. Y*( C!$F Par %.ran)5 T'ere co!l) .le it is clear t'at for mar"in an) of .enefit of t'e same5 @5.)+ar Fi"' mar"in J!alit( Relations'ip <o reason R*(-"'#*' ( 0 2D D BD I.o!t t'e reasons 4'( retailers s!""est t'e cons!mers to .eca!se of personal relation or t'at c!stomer are .

!*&*( 100 80 $0 40 20 0 Respondents %es 92 No 8 I' *r-r* a %"'0 T'is "i-es a real 'elpf!l )ata for c'ec$in" t'e effect of sales promotions in t'e mar$et an) 'o4 serio!sl( cons!mers follo4 t'e promotions . D" ."r 9ar%")( (.o-e res!lt s'o4s t'at onl( C o!t /f 2// )i)nAt "o for t'e promotion ot'er4ise all are loo$in" for an( t(pe of t'e promotions on t'e pro)!ct5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @@ . F Par %.(e partic!lar .ran)5 T'e a.efore t'e( "o for p!rc'ase partic!lar ."r 9ar%")( (.Role of sales promotions in FMCG sector .e 'elpf!l to tar"et s!c' retailers to sell t'eir pro)!ct in t'e mar$et easil(5 @<.!*&*( %' !* -r"#).)( "&*r( +""A .ran)5 For t'e compan( it ma( .)+ar Yes <o R*(-"'#*' ( 0& C C)( "&*r( +""A .

oupons Respondents 11 /ri.rat.! (. I. $*( C!%.!*&*( 100 80 $0 40 20 0 .h .e Off 82 +reebies 35 ".ards 2 Lu.Role of sales promotions in FMCG sector @=.tra J!antit( R*(-"'#*' ( 22 C& 7@ & 20 B@ D0 5!%.! (.!*&*( Co!pons Price Off Free.ies Scratc' Car)s !c$( Dra4s B!n)lin" Offer E.0y (ra*s 19 &und!in' Offer $5 >xtra -uantity 49 I' *r-r* a %"'0 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @B .!*&*(F Pr"&" %"'a+ S.

*rF NIRMA Pr"&" %"'( E.ein" )eman)e) .Role of sales promotions in FMCG sector T'e a.p5 R*(-"'#*' ( =B 7= @@ &= C Tra#* Pr"&" %"'( ?$ N%r&a $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 4$ >xtra 9nits 34 .i!ity 55 'ifts 24 promo) >xp) 8 I' *r-r* a %"'0 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @D .( t'e cons!mers o-er ot'ers sc'emes5 @1.efore t'at5 Price off+ pro)!ct .!t t'ere are t'ree ma.( t'e cons!mers5 *lmost all t(pes of sc'emes are .tra Units cre)it facilit( Gifts Promo5 E.redit fa."&-a'%*( ".tra Mar"in E.( t'e cons!mers in t'e mar$et .o-e state) res!lts s'o4 t'e )eman) of -ario!s t(pes of promotional sc'emes in t'e mar$et .! Tra#* Pr"&" %"'( #" 9ar%")( .or sc'emes 4'ic' cons!mers "enerall( loo$ at t'e time of p!rc'ase or .tra 3!antit( are more )eman)e) .!n)lin" an) e. 5!%..

tra mar"in+ an) !nits 4it' occasional "ift 4it' t'eir sc'emes5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @C .( t'e <IRM* t) to t'e retailers to attract t'em to4ar)s stoc$in" t'eir "oo)s an) also stop t'em s4itc'in" t'em too ot'er ma.( all ma.Role of sales promotions in FMCG sector From t'e a.or pla(ers it ma( )iffer in t'e time limit of t'e cre)it5 It is also pro-i)in" e.o-e "rap' s'o4s t'e tra)e promotions offere) .or pla(ers in t'e mar$et5 <IRM* is mainl( offerin" cre)it facilit( 4'ic' is offere) .

ifts 25 /romo) >xp) 22 I' *r-r* a %"'0 T'e a)-anta"e of F o-er <IRM* is t'at it .eca!se of its less cost of pro)!ction in ot'er se"ments in 4'ic' nirma is not operatin"5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @0 .are promotional e.redit fa.tra Units Cre)it facilit( Gifts Promo5 E.tra Mar"in E.i!ity 58 .p5 R*(-"'#*' ( =D 7= @C &@ && Tra#* Pr"&" %"'( ?$ HUL 40 $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 44 >xtra 9nits 34 .anners etc5 So t'is ma( 'elp it to attract more retailers5 It ma( .penses 4'ic' <IRM* is not )oin"5 It attracts more cons!mers t'ro!"' s!c' promotions+ s!c' as )ispla( of t'e pro)!ct+ .Role of sales promotions in FMCG sector HUL Pr"&" %"'( E.

p5 R*(-"'#*' ( =/ 77 @@ &/ 2& Tra#* Pr"&" %"'( ?$ PIG $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 40 >xtra 9nits 33 .redit fa.i!ity 55 .ifts 20 /romo) >xp) 12 I' *r-r* a %"'0 PTG is also a .i" pla(er in t'e FMCG mar$et5 It is also pro-i)in" all t'e facilities 4'ic' ot'ers are pro-i)in" to retailers5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B/ .tra Units Cre)it facilit( Gifts Promo5 E.tra Mar"in E.Role of sales promotions in FMCG sector PIG Pr"&" %"'( E.

i!ity 54 .i" pla(er in t'e FMCG mar$et5 It is also pro-i)in" all t'e facilities 4'ic' ot'ers are pro-i)in" to retailers5 B!t it is lac$in" in .penses 4'ic' FU pro-i)in" to ma.p5 R*(-"'#*' ( =B 7& @D 20 2C Tra#* Pr"&" %"'( ?$ G"#r*/ $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 4$ >xtra 9nits 32 . is a .er of retailers5 is Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B2 .Role of sales promotions in FMCG sector GODRE6 Pr"&" %"'( E.earin" e.ifts 19 /romo) >xp) 18 I' *r-r* a %"'0 Go)re.tra Mar"in E.im!m n!m.tra Units Cre)it facilit( Gifts Promo5 E.redit fa.

lis'e) pla(ers li$e+ 4ipro .Role of sales promotions in FMCG sector OTHERS Pr"&" %"'( E.redit fa.!t t'eir pro)!cts are not in )eman) li$e ot'er pla(ers .tra Units Cre)it facilit( Gifts Promo5 E.ifts 15 /romo) >xp) 4 I' *r-r* a %"'0 Ot'ers incl!)e local pla(ers+ as 4ell as 4e esta.p5 R*(-"'#*' ( 7/ 2C 7C 2@ D Tra#* Pr"&" %"'( ?$ O !*r( 40 35 30 25 20 15 10 5 0 "eries1 >xtra 7ar'in 30 >xtra 9nits 18 .!t still t'e( are pro-i)in" all t'e facilities to retailers to attract to4ar)s stoc$in" t'eir pro)!cts5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B& .tra Mar"in E.i!ity 38 .

p5 Ra'A Ta?+* 2=5@ 0 2C = 7 Total =C5@ Sample @ Si8e Usin" 6r!s$al 1 >allis test+ 6 = 2=5@ 225@ 2D D 2 @2 @ 2B 225@ 20 C B B/5@ @ 27 2/ 2@ @ & =@ @ =B 7& @D 20 2C =B 7= @@ &= C FU =D 7= @C &@ && PTG =/ 77 @@ &/ 2& =  T& 2&  .tra Units Cre)it facilit( Gifts Promo5 E.+)(%"'0D Fere 6 Q 1&5&0 is less t'an t'e critical -al!e of c'i1s3!are Q D5C2=D+ so 4e )o not re.ect t'e n!ll '(pot'esis5 Concl!sionII Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B7 .ran)s is not similar5 GODREJ <IRM* E.tra Mar"in E.ran)s is similar5 F2: Effect of tra)e promotions for all fo!r .Role of sales promotions in FMCG sector H$-" !*(%( *( %'7 F/: Effect of tra)e promotions for all fo!r .le%5 C"'.=2   n. ∑ n#n + 2% .   − 7#n + 2% = 1&5&0 5 For R Q /5/@ an)   )f Q =12Q7+ t'e critical -al!e Q D5C2=D #from ta.

)+ar ?ra'#.eca!se t'at infl!ences )irectl( to t'e cons!mer5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B= .eca!se of competition5 @13 A'$ S)77*( %"'(.Role of sales promotions in FMCG sector @> G%9* r*a("'( .tra 3!antit( .e f!rt'er impro-e) an) !se) as promotional tool+ to enco!ra"e sales )!rin" certain perio)s t'e compan( s'o!l) pro-i)e price off or e. Retailer s!""este) t'at pac$a"in" s'o!l) . Retailer stoc$s all t(pes of soap an) )eter"ent .A%'7 a -ar %."r '" ( ".

Role of sales promotions in FMCG sector

F%'#%'7( ", !* r*-"r 0
Sales Promotion+ a s'ort1term in)!cement+ offere) to a cons!mer or tra)e 'as "aine) moment!m as a promotional tool 4orl) o-er5 It represents nearl( t'ree fo!rt' of t'e mar$etin" ,!)"et at most cons!mer pro)!ct companies5 Sales promotions can en'ance cons!mersA self1perception of ,ein" 9smart: or a 9"oo): s'opper • • • FMCG are s!c' a mar$et 4'ere t'e le-el of lo(alt( remains lo4 an) t'is is ,eca!se of man( reasons5 J!alit( as t'e most infl!encin" factors in t'e p!rc'ase )ecision 4'ile price is also an important for p!rc'ase )ecision5 Sc'emes al4a(s attract more an) more cons!mers to4ar)s partic!lar ,ran)5 Sim!ltaneo!sl( it "i-es i)ea a,o!t t'e factors 4'ic' cons!mers loo$ most in t'e pro)!ct ,efore t'e( ma$e final )ecision Price off an) e;tra 3!antit( is t'e t4o main offersHsc'emes 4'ic' cons!mers 'a-e came across at t'e time of p!rc'ase TM as t'e ,est me)ia to mar$et t'e pro)!ct 4'ic' 4ill co-er ma.orit( of t'e -ie4er s'ip5 On t'e secon) place it s'o4s ne4s papers as t'e me)ia to promote t'e pro)!ct in t'e mar$et People are not m!c' a4are of t'e sc'emes 4'ic' contin!e in t'e mar$et it ma( ,e ,eca!se of t'e present stoc$ of t'e pro)!ct at t'eir place5 2S2 or &S2 or ot'er free sc'emes are more )eman)e) an) more a4are sc'emes in t'e mar$et5 • • • • People are rea)( to s4itc' o-er to anot'er ,ran) if t'e( fin) ,etter promotional sc'emes 4'ic' s!its t'eir ,!)"et means more 3!antit( S less cost S 3!alit(5 E;tra 3!antit( 4it' less or same price+ more satisfaction+ 3!alit( an) ot'er factors infl!ence cons!mers to s4itc' o-er too ot'er ,ran)s5 Retailer stoc$s all t(pes of soap an) )eter"ent ,eca!se of competition5 People are more 3!alit( an) price oriente)5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B@

• •

• •

Role of sales promotions in FMCG sector

• • • • • • • •

Cons!mer remem,er t'at name of t'e pro)!ct ,( t'e compan( name an) also from t'e past performance of t'at compan( Cons!mer remem,ers t'at name of t'e pro)!ct ,( t'e compan( name an) also from t'e past performance of t'at compan( Retailers are not s!""est to p!rc'ase partic!lar ,ran) ,eca!se of personal relation or t'at c!stomer are ,ran) lo(al Mar"in an) of ,etter relations 4it' cons!mers an) too pro-i)e 3!alit( pro)!ct to cons!mers t'e( s!""est cons!mers too ,(e partic!lar ,ran)5 C!stomers are loo$in" for an( t(pe of t'e promotions on t'e pro)!ct ,efore t'em "oin" to p!rc'ase5 Price off+ pro)!ct ,!n)lin" an) e;tra 3!antit( are more )eman)e) ,( t'e cons!mers o-er ot'ers sc'emes5 <IRM* is mainl( offerin" cre)it facilit( 4'ic' is offere) ,( all ma.or pla(ers it ma( )iffer in t'e time limit of t'e cre)it5 FU attracts more cons!mers t'ro!"' s!c' promotions+ s!c' as )ispla( of t'e pro)!ct+ ,anners etc5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% BB

Role of sales promotions in FMCG sector

R*."&&*'#a %"'0
T'e fin)in"s of t'e empirical st!)( in)icate t'at !nless t'e ,ran) to ,e promote) is in t'e consi)eration set of t'e cons!mer+ sales promotion ,( itself is !nli$el( to 'a-e an( ma.or impact5 Clearl( t'is s'o4s t'at mana"ers nee) to in-est into ,ran) ,!il)in" e;ercise so t'at 'isH'er ,ran) appears in t'e consi)eration set of t'e tar"et cons!mers5 Onl( after t'is s'o!l) 'e spen) time+ mone( an) ener"( on sales promotion acti-ities5 Sales promotion s'o!l) not ,e !se) in isolation ,!t nee) to ,e inte"rate) 4it' ot'er tools an) in line 4it' t'e o-erall positionin" of t'e ,ran)5 *lso t'e importance of t'e role of mass me)ia came o!t clearl( in t'e st!)(5 Companies nee) to create s!fficient a4areness a,o!t sales promotion sc'emes t'ro!"' mass me)ia in or)er to create a4areness5 FMCG pro)!cts are lo4 in-ol-ement pro)!cts c'aracteri8e) ,( s4itc'in" ,e'a-ior5 *lso t'e person "oin" to t'e s'op for t'e p!rc'ase of soap is t'e final )ecision ma$er of t'e ,ran)5 Fence it is essential t'at companies nee) to )esi"n attracti-e+ stri$in"+ -isi,le POPs for sc'eme anno!ncements5 >it' respect to nat!re of sc'eme+ t'e fin)in" s!""este) t'at premi!m #free "ift% 4as pop!lar 4it' companies5 >'ile ,ot' retailers an) cons!mers preferre) price offs5 So it is necessar( t'at t'e percei-e) -al!e of a free "ift 'as to ,e appealin" an) 'i"' for t'e tar"et cons!mers5 Repetiti-e !se of t'e same premi!m for a prolon"e) perio) ma( 'a-e ne"ati-e effect on t'e lo(al c!stomers5 >'en t'e compan( is "i-in" its o4n pro)!ct free as premi!m+ it nee)s to ens!re t'e 3!alit( of t'e pro)!ct from it as it is li$el( to .eopar)i8e t'e ima"e of ,ot' its pro)!cts5 T'e fin)in"s e;'i,ite) t'at ,ot' t'e retailers an) cons!mers percei-e) t'at sales promotion acti-ities carrie) o!t ,( t'e companies for increasin" sales in s'ort term an) clearin" e;cess stoc$s5 >'at it implies is t'at companies nee) to !se sales promotion

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% BD

e a ric' so!rce of information a.( companies is ne.ot' at retailer an) cons!mer le-el 4o!l) .o!t t'e cons!mer an) t'e li$el( response to sales promotion acti-ities5 De-elopin" a s(stem to tap s!c' responses from time to time .( t'e companies5 *s retailin" is fra"mente)+ )irect reac' .e consi)ere) critical aspects for t'e s!ccess of sales promotion acti-ities .ac$ mec'anism+ companies $eep in to!c' 4it' t'e mar$et5 From t'e st!)( it 4as fo!n) t'at smaller retailers felt ne"lecte) an) not ent'!se) to implement t'e sc'emes+ partic!larl( 4'en a))itional 'an)lin"+ stoc$in"+ acco!ntin" 4as re3!ire) on t'e part of a retailer 4it'o!t compensator( mar"ins5 It can .t to impossi.!il) tr!st an) commitment companies s'o!l) tap preferences+ perceptions of retailers as 4ell as cons!mers5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% BC .ran) 3!alit(Hima"e perceptions5 Companies nee) to s(stemati8e information flo4 re"ar)in" sales promotion acti-ities partic!larl( at )ealer an) retailer le-el5 Ens!rin" proper information flo4 an) )e-isin" c'ec$s an) meas!res to re)!ce misappropriations an) implementation flo4s s'o!l) .le5 T'ro!"' )ealers an) proper fee).Role of sales promotions in FMCG sector s(ner"isticall( an) comm!nicate so t'at t'e( pro-i)e -al!e to t'e tar"et a!)ience an) en'ance .e 'elpf!l for plannin" f!t!re sales promotion acti-ities5 In or)er to .e seen t'at t'e retailer an) cons!mer perceptions matc'e) 4it' respect to preferences of sc'emes+ !n)erl(in" moti-ations an) role of mass me)ia5 T'is implies t'at t'e retailer 4o!l) .

lem an) also pro.iase) ans4er )!e to some lac$ of information a.a) re"ion onl( .ran)s5 • Fin)in"s of t'e st!)( are .lem of time an) lac$ of positi-e . !* ( )#$ • • • >e consi)ere) *'me)a.e'a-ior5 • Respon)ent ma( "i-e .eca!se of limite) time )!ration5 D!e to t'is+ o!r sample si8e is onl( 2//+ 4'ic' is not -er( lar"e5 *ll t'e respon)ents co!l) not fill t'eir 3!estionnaire on t'eir o4n )!e to lan"!a"e pro.ase) on t'e ass!mption t'at t'e respon)ents 'a-e "i-en correct information5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B0 .o!t ot'er .Role of sales promotions in FMCG sector L%&% a %"'( ".

!t it 4as more pre-ailin" in )!ra.ran) Tar"et mar$et commonalit( Seasonal )eman) Distri.lis'e) .ran) 4it' an esta.%.oint sales promotion or 'ori8ontal co1operati-e sales promotion or cross promotion or !m.( more t'an one compan( an) Hor more t'an one .a %"' ". /"%' (a+*( -r"&" %"'0 • • • • • • • • • • Use complementaril( )!e to nat!ral !se <e4 !se caterin" complementar( relations'ips Commonalit( of nee) )!e to !se time Tie1!p of a ne4 Hslo4 mo-in" .ran) of t'e same compan(+ it is referre) as .rella sales promotion5 C+a((%.oint sales promotion5 *ct!all( it is ol) concept .oint sales promotions Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D/ .Role of sales promotions in FMCG sector E&*r7%'7 Tr*'#( So far as FMCG mar$et is concern t'ere is ne4 tren) is emer"in" $no4n as .le pro)!cts no4 it is comin" intro non )!ra.le "oo)s also5 >'en an( sales promotion sc'eme eit'er for tra)e or cons!mer is anno!nce) .!tion commonalit( Tar"etin" ne4 se"ment Deri-e) )eman) Co!nterin" competiti-e .

+)(%"' ".!st to tr( first5 Sales of small pac$ "oo)s are 3!ite 'i"'+ .l( 'as increase) o-er t'e (ears in In)ia5 F!t!re 'ol)s lot of promise for s!c' sc'emes across 4i)er ran"e of pro)!ct1mar$ets5 Sales Promotion 'as cease) to .!t important factor i5e5 mentalit( to p!rc'ase .a) 3!alit(+ It 'a) lo4 cost or sa( price+ an) last .e ma.er of s!permar$et+ t'e .i" pac$a"in" e5"5 )eter"ent are sta"natin" .le compare to lar"e pac$ "oo)s5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D2 .ect is t'at sale of "oo)s 4'ic' contain lar"e 3!antit( an) 'a-in" .ies an) "ifts5 *s a res!lt no4 mar$eters 'a-e to fin) o!t some inno-ati-e 4a(s of sales promotion to )ifferentiate from competitors5 C!rrentl( Price off an) B(e one "et one free offers are -er( effecti-e to attract t'e cons!mers to4ar)s t'e pro)!cts5 >e 'a-e note) t'at t'ese $in) of promotional tools are !sef!l for s'ort term increase in sales an) to in)!ce first trial5 T'ese t(pes of promotional sc'emes s'o!l) .ran)e) pac$a"e) "oo)s 4or$ as silent sales person5 So in s!c' stores+ sales promotion pla(s a more effecti-e role in stim!latin" cons!mersA )eman)s5 One of t'e -er( important facts 4e came to $no4 from t'is pro.e consistent an) c'an"e) from time to time )epen)in" !pon season an) competitorAs sc'emes5 >it' t'e Increasin" n!m.!t from t'e compan(As point of -ie4 small pac$ "oo)s is less profita.!( small pac$ "oo)s+ t'e reasons are: small pac$ "oo)s re)!ce ris$ of .or )ifferentiator at least in t'e metros+ 4it' almost all companies offerin" similar free. !* S)r9*$ T'e st!)( reflects t'at t'e !se of sales promotion !n)enia.eca!se cons!mer prefer to .Role of sales promotions in FMCG sector C"'.

tra5 B%?+%"7ra-!$  P'ilip 6otler+ #%9Mar$etin" Mana"ement:+ 22t' e)ition+ Pearson e)!cation *sia P!.Role of sales promotions in FMCG sector So 'ere mar$eter tries to increase sales of lar"e pac$ "oo)s .Ufiles Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D& .lication5  C5R56ot'ari+ #%9Researc' Met'o)olo"( met'o)s T Tec'ni3!es:+ <e4 *"e International+ &n) e)ition5  6en Blac$  'ttp:HH4445nirma5co5inUfiles  'ttp:HH4445'!l5co5inUfiles  'ttp:HH4445p"1in)iaUfiles  'ttp:HH4445"o)re.( !sin" sales promotion tactics li$e price off an) percenta"e e.

Role of sales promotions in FMCG sector A''*8)r* Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D7 .

!o( <irma Ot'ers Respon)ent Deter"ent po4)er <irma s!pper >'eel S!rf *riel Ot'ers Respon)ent J&5 Do (o! al4a(s .ran) of Soap H Deter"ent )o (o! !seE Bat'in" Osoaps !.ran) of Soap H Deter"entsE Bat'in" Factors soap Det5po4)er Fra"rance J!alit( Compan( ima"e Price Pac$a"in" Ot'ers J=5 Do (o! consi)er promotional sc'emes 4'ile p!rc'asin" a partic!lar . Famam ife.ran) of Soap H Deter"entE Partic!lars Respon)ent Yes <o J@5 >'ic' of t'e follo4in" promotional sc'emes (o! 'a-e come across so farE Promotional sc'emes Respon)ent Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D= .!( t'e same .ect to9Role of sales promotions in FMCG:5 So please fill t'is 3!estionnaire5 J25 >'ic' .ran) of Soap H Deter"entE Partic!lars Respon)ent Yes <o J75 >'ic' factors )o (o! normall( consi)er 4'ile p!rc'asin" a partic!lar .Role of sales promotions in FMCG sector @)*( %"''a%r* C)( "&*r( >e are st!)ents of MB* st!)(in" in S IBM *FMED*B*D an) carr(in" o!t a s!r-e( for o!r aca)emic pro.

le to promote t'e -ario!s promotional sc'emesE So!rce Ra)io TM <e4spaper Foar)in" Ot'ers Respon)ent JD5 Is t'ere an( e.Role of sales promotions in FMCG sector Co!pons price off Free.istin" sc'eme on t'e Soap H Deter"ent (o! are c!rrentl( !sin"E Partic!lars Yes <o JC5 If (es+ please specif(E Partic!lars 7S2HOt'er Free Disco!nt <o i)ea <o ans4er Respon)ent Respon)ent J05 If (o! "et an attracti-e promotional offer in t'e pro)!ct ot'er t'an of (o!r c'oice 4ill (o! s4itc' o-erE Partic!lars Yes <o J2/5 Gi-e reason for t'e sameE Partic!lars Respon)ent CostS3t( Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D@ Respon)ent .ies scratc' car)s l!c$( )ra4 B!n)lin" e.tra 3t(5 JB5 >'ic' me)i!m )o (o! feel is s!ita.

enefitH.Role of sales promotions in FMCG sector J!alit( Satisfaction Bran) lo(al More .!)"et Season c'an"e <o ans4er J225 Gi-e s!""estions a.o!t f!t!ristic promotional sc'emes5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% DB .

!sinessE Partic!lars 21@ Years @12/ Years More t'an 2/ (ears Respon)ent J&5 <ame t'e Soap H Deter"ent #Compan(% (o! stoc$ for5 Companies Respon)ent <irma FU PTG Go)re.Role of sales promotions in FMCG sector Retailers >e are st!)ents of MB* st!)(in" in S IBM *FMED*B*D an) carr(in" o!t a s!r-e( for o!r aca)emic pro.e re-eale) an) information 4ill onl( .ect 9Role of sales promotions in FMCG:5 So please fill t'is 3!estionnaire5 Yo!r i)entit( 4o!l) not .e !se) for aca)emic p!rpose5 J25 Since 'o4 lon" are (o! in t'is . Ot'ers J75 Ran$ t'e follo4in" factors t'at c!stomers loo$ for in t'e p!rc'ase of Soap H Deter"ent5 #Ran$ from 2 to B% Factors 2 & 7 = @ B Fra"rance J!alit( Compan( Ima"e Price Pac$a"in" Ot'ers J=5 Do (o! s!""est c!stomers to p!rc'ase a certain .ran)E Partic!la Respon)ent r Yes <o J@5 If Yes 4'(E Partic!lar Fi"' mar"in J!alit( Relations'ip <o reason Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% DD Respon)ent .

tra Units Cre)it facilit( Gifts Promo5 E.p5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% DC .tra Mar"in E.tra Mar"in E.tra Mar"in E.p5 PTG Promotions Respon)ent E.tra J!antit( Respon)ent Respon)ent JC5 >'ic' Tra)e Promotions )o -ario!s companies offerE FU Promotions Respon)ent E.p5 GODREJ Promotions Respon)ent E.tra Units Cre)it facilit( Gifts Promo5 E.Role of sales promotions in FMCG sector JB5 Do c!stomers loo$ for -ario!s sc'emes in t'e pro)!ctE Partic!la r Yes <o JD5 If (es 4'ic' sc'emesE Promotional Sc'emes Co!pons Price Off Free.tra Units Cre)it facilit( Gifts Promo5 E.ies Scratc' Car)s !c$( Dra4s B!n)lin" Offer E.

tra Mar"in E.p5 J0 Gi-e reasons for not stoc$in" a partic!lar .tra Units Cre)it facilit( Gifts Promo5 E.ran)5 J2/ *n( S!""estions5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D0 .Role of sales promotions in FMCG sector OTFERS Promotions Respon)ent E.