You are on page 1of 71

Management

Research Project
Impact of Sales Promotions on
Sale of FMCG Products at (With
specific reference to Retail Malls
in Ahmedabad)

A
COMPREHENSIVE PROJECT REPORT
ON
“Impact of Sales Promotions on Sale of FMCG Products”
(With specific reference to Retail Malls in Ahmedabad)
Submitted to
Xcellon Institute School of Business
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
POST GRADUATE DIPLOMA IN GENERAL MANAGEMENT

UNDER THE GUIDANCE OF
Prof. Daisy Kurien
Submitted by
CHETAN PANARA (M00086)
KAUSHAL DHAKAN (M000)
JAY AJUDIA (M00036)
[Batch: 2010-12]
MBA SEMESTER IV
(Xcellon Institute: School of Business)

Declaration

We, Chetan Panara; Kaushal Dhakan; Jay Ajudia, hereby declare that
the report for Comprehensive Project entitled “Impact of Sales
Promotions on Sale of FMCG Products on Retail malls in
Ahmedabad” is a result of our own work and our indebtedness to other
work publications, references, if any, have been duly acknowledged.

Place: Ahmedabad

Chetan Panara

Date: 25th April 2012
Kaushal Dhakan

Jay Ajudia

Daisy Kurien (Name and Designation of Guide) Prof. Prof. Devang Patel . and Jay Ajudia who carried out the research under my supervision. Kaushal Dhakan.Xcellon Institute: School of Business CERTIFICATE “Certified that this Comprehensive Project Report Titled “Impact of Sales Promotions on Sale of FMCG Products on Retail malls in Ahmedabad” is the bonafide work of Chetan Panara. I also certify further. that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

The significance of MBA Degree is that the Theoretical aspects. From the analysis of survey it becomes clear that consumers do response to the sales promotion campaign. we have tried to apply theoretical aspects throughout the project. which a student learns throughout the year in the class sessions. In this project more emphasize given to the various tools of sales promotion and its impact on sale of FMCG products (with specific reference to Retail malls in Ahmedabad). . Now a day most of the FMCG companies considering sales promotion as an important part of their marketing strategy. which one undertakes. To survive in this highly competitive market “Practical Knowledge” is as relevant as the Theoretical. Today the markets are no less then battlegrounds and one has to strive very hard for survival and growth. can be practically applied through different projects.Preface In this age of globalization hyper competition has become a regular feature. which we learned under the course of management. Due to very rapid industrialization all over the world the demand for the managerial personnel and the administrative personnel has increased. even though it can be eliminated by generating innovative and more attractive tools to lure the customers. The perfect study of Management involves both the theoretical as well as practical aspects. but there are customers who strongly prefer to stick to brand name. Keeping in tune with this doctrine. Actually in recent trend to some extent this technique also become victim of clutter.

. . We would like to take this opportunity to extend our warm thoughts to those who helped us in making this project a wonderful experience. we would also like to thank our family for their support and encouragement. Their guidance has proved to be useful and without them. Last but not the least. We are also thankful to the other faculty members of Xcellon for extending their valuable support for this project. Prof Daisy Kurien for their precious guidance regarding the preparation of the Project Report. the preparation of this report might not have been possible. who helped us during the course of our project and for their gracious attitude. We also extend our sincere thanks to the Respondents. We are extremely thankful to our Project Guide.Acknowledgement Every study requires a guidance of someone who is working in same field.

II PRIMARY STUDY 4 Introduction of the Study 14 4.1 Research Design 5.2 Statement of the Problem 4.5 Motivation for the study 5 Research Methodology 44 5.3 Research Objectives 4.4 Research Hypothesis 4.3 Sampling Design & Data Collection 6 Data Analysis and Interpretation 45 7 Results and Findings 58 8 Limitations of the Study 59 9 Conclusion 60 o Annexure o Bibliography .1 Literature Review 4.I GENERAL INFORMATION 1 Introduction 1 FMCG Industry Economy Common FMCG products Market potentiality of FMCG industry Leading FMCG companies & Industry Potential The future of FMCG 2 Top 10 companies in FMCG sector 7 Retail malls in Ahmedabad 3 FMCG Category and products 13 PART .SR No Particulars Page No PART .2 Sampling Element 5.

PART .I GENERAL INFORMATION .

PART.II PRIMARY STUDY .

Annexure 1 sample questionnaire .

It is also very clear that consumers prefer cash discount as a sales promotion schemes compare to free gift as a sales promotion scheme. Availability of key raw materials. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. fabric care. Overall. . There is significant difference between consumer preference of cash discount and free gift as sales promotion schemes. At present. it is also proved that married are more deal prone compare to Unmarried. Scheme is value added type with immediate benefit is preferred by the customers.1 billion. Furthermore. It is concluded that male prefers the newspaper and point of purchase material as a source to know sales promotion schemes over female. with rural India accounting for the remaining 34%. It has a strong MNC presence and is characterized by a well-established distribution network. urban India accounts for 66% of total FMCG consumption. It is found that Consumer deal proneness differs according to marital status. rural India accounts for more than 40% consumption in major FMCG categories such as personal care. intense competition between the organized and unorganized segments and low operational cost. would help the urban areas maintain their position in terms of consumption. increase in the urban population. along with increase in income levels and the availability of new categories. Added to it Brand Equity perception differs according to employment categories.The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 20. awareness spread out by word of mouth. Family income is one of the variables which should be considered while designing sales promotion schemes more specifically cash discount. So while designing sales promotion schemes and its benefits from the perspectives of the customers above mentioned attributes of the sales promotion schemes should be considered to achieve the objectives of the sales promotion schemes. However. and hot beverages. Also. Sales promotion scheme on international brand.

financing.1. specifically in India. The Fast Moving Consumer Goods (FMCG) is those consumables which are normally consumed by the consumers at a regular interval. plastic goods. are low operational cost. and some of the examples of FMCG products are coffee. household products.1 billion. supply chain. gifts. The industry also engaged in operations. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). The competition among FMCG manufacturers is also growing and as a result of this. Common FMCG products Some common FMCG product categories include food and dairy products. dry cells. paper products. Market potentiality of FMCG industry Some of the merits of FMCG industry. where FMCG industry is regarded as the fourth largest sector with total market size of US$20. soaps etc. etc. consumer electronics. pharmaceuticals. Introduction FMCG industry. photography. drinks etc. marketing. tobacco and cigarettes. FMCG Industry Economy FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. which made this industry as a potential one. detergents. glassware. watches. greeting cards. distribution and marketing of consumer packaged goods. production and general management. strong distribution networks. purchasing. Population growth is another factor which is responsible behind the success of this industry. printing and stationery. tea. . investment in FMCG industry is also increasing. packaged food products. alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production. Some of the prime activities of FMCG industry are selling. FMCG Sector in India is estimated to grow 60% by 2011. presence of renowned FMCG companies.

Mars. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 20. Carlsberg. is allowed for most of the food processing sector. Nestlé. Burgeoning Indian population. Unilever. presents an opportunity to makers of branded products to convert consumers to branded products. skin care. toothpaste. Himani etc. Pepsi. Automatic investment approval (including foreign technology agreements within specified norms). Procter & Gamble. Availability of key raw materials. Coca-Cola. It has a strong MNC presence and is characterized by a well-established distribution network. Reckitt Benckiser.4 billion in 2015. Coca cola.1 billion.Leading FMCG companies & Industry Potential Some of the well known FMCG companies are Sara Lee. The FMCG market was set to treble from US$ 11. Nirma. Growth is also likely to come from consumer 'upgrading' in the matured product categories. Dabur. India needs around US$ 28 billion of investment in the foodprocessing industry. up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment. particularly the middle class and the rural segments. cheaper labour costs and presence across the entire value chain gives India a competitive advantage.6 billion in 2003 to US$ 33. General Mills. intense competition between the organized and unorganized segments and low operational cost. With 200 million people expected to shift to processed and packaged food by 2012. Kleenex. . hair wash etc in India is low indicating the untapped market potential. Penetration level as well as per capita consumption in most product categories like jams.

says an HSBC report. Also. Increased focus on farm sector will boost rural incomes. would help the urban areas maintain their position in terms of consumption. if they are able to take the consumers to branded products and offer new generation products. increase in the urban population. they would be able to generate higher growth in the near future.2% of the world population in the villages of India. hence providing better growth prospects to the FMCG companies. i. rural India accounts for more than 40% consumption in major FMCG categories such as personal care. urban India accounts for 66% of total FMCG consumption. with rural India accounting for the remaining 34%. and dairy are long-term growth categories in both rural and urban areas. the Indian rural FMCG market is something no one can overlook. . household care and feminine hygiene. boosting purchasing power in the countryside.e. fabric care. With the presence of 12. and the chocolates and confectionery categories are estimated to be the fastest growing segments. At present. Within the foods segment. home and personal care category. Hair care. and hot beverages. along with increase in income levels and the availability of new categories.100 crores in 2011. In urban areas. However.500 crores in 2005 to Rs 96. the demand in urban areas would be the key growth driver over the long term. FMCG sector is also likely to benefit from growing demand in the market.That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56. And if the companies are able to change the mindset of the consumers. FMCG companies have immense possibilities for growth. it is estimated that processed foods. bakery. Because of the low per capita consumption for almost all the products in the country. female hygiene. including skin care. However. Better infrastructure facilities will improve their supply chain. It is observed that the rural income has grown. household care. will keep growing at relatively attractive rates. male grooming.

Procter & Gamble‘s premium anti-ageing skincare brand. value. It identifies robust GDP growth. Who could have thought of ready acceptance for anti-ageing creams and lotions some ten years ago? For that matter. Growth was even faster in the past five years — almost 17 per cent annually since 2005.2 per cent of the country‘s GDP).000-crore industry by 2020. spells out the key growth drivers for the Indian fast moving consumer goods (FMCG) industry in the past ten years and identifies the big trends and factors that will impact its future. It has been estimated that FMCG sector witnessed robust year-on-year growth of approximately 11 per cent in the last decade. and so on. A Booz & Company study finds out the trends that will shape its future. Considering this. A new report by Booz & Company for the Confederation of Indian Industry (CII). What he needs‘ is fast getting replaced with what he ‗wants‘. captured 20 per cent of the market within a year of its launch in 2007 and today dominates it with 37 per cent share.000 crore in 2000-01 to Rs 130.000 crore now (it accounts for 2. called FMCG Roadmap to 2020: The Game Changers. the anti-ageing skincare category grew five times between 2007 and 2008. More so. opening up of rural markets. quality. . It‘s today the fastest-growing segment in the skincare market. who could have thought Indian consumers would take oral hygiene so seriously? Mouth-rinsing seems to be picking up as a habit — mouthwash penetration is growing at 35 per cent a year. almost tripling in size from Rs 47. who could have thought rural consumers would fall for shampoos? Rural penetration of shampoos increased to 46 per cent last year. Olay. increased income in rural areas. growing urbanization along with evolving consumer lifestyles and buying behaviours as the key drivers of this growth. Consumption patterns have evolved rapidly in the last five to ten years. The consumer is trading up to experience the new or what he hasn‘t.The future of FMCG Fast moving consumer goods will become Rs 400. He‘s looking for products with better functionality.

It has been estimated that the FMCG industry will grow at least 12 per cent annually to become Rs 400. say. leading to an overall industry size of Rs 620. the government removes bottlenecks such as the goods and services tax (GST). GDP grows a little faster. growth can be significantly higher.000 crore by 2020.000 crore in size by 2020. Additionally. It could be as high as 17 per cent. . if some of the factors play out favourably. there is more efficient spending on government subsidy and so on. infrastructure investments pick up.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers. when crates full of Sunlight soap bars. and was rechristened to Indian Tobacco Company in 1970 and then to I. The company has its registered office in Kolkata. two out of three Indians use HUL products.500 employees and contributes to indirect employment of over 65. Co. Hotels. It is headquartered in Mumbai. but it is now fully independent. The company was renamed in June 2007 as “Hindustan Unilever Limited”. Maharashtra. Its diversified business includes four segments: Fast Moving Consumer Goods (FMCG).C. As per Nielsen market research data. Top 10 companies in FMCG sector Hindustan Unilever Ltd. Hindustan Vanaspati Mfg.T. Its products include foods. India and has an employee strength of over 16. and shares ancestry with Imperial Tobacco of the United Kingdom. It started off as the Imperial Tobacco Company. beverages. . and United Traders Ltd.4 million outlets in the country. Hindustan Unilever Limited (HUL) is India's largest consumer goods company based in Mumbai. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. India.000 people. Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6. Ltd. Limited in 1974. Paperboards. Paper & Packaging and Agri Business. cleaning agents and personal care products. West Bengal. ITC's annual turnover stood at $7 billion and market capitalization of over $33 billion. Lever Brothers started its actual operations in India in the summer of 1888.2. ITC (Indian Tobacco Company) ITC Limited or ITC is an Indian public conglomerate company headquartered in Kolkata. embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).

The company is currently headed by Yogesh Chander Deveshwar. UAE. ITC has a diversified presence in Cigarettes.03 million milk producers in Gujarat. Formed in 1946." Amul means invaluable. Amul is the largest food brand in India and world's largest pouched milk brand with an annual turnover of US $2. USA. it is a brand name managed by an Indian cooperative organisation. India. Stationery. (GCMMF). Hotels. ITC Limited completed 100 years on 24 August 2010. Derived from the Sanskrit word "Amulya. Agri-Business. Amul is based in Anand. While ITC is an outstanding market leader in its traditional businesses of Cigarettes. Information Technology. Personal Care. On 10 Aug 2006 Parthi Bhatol.2 billion (2010-11). Gujarat and has been a successful example of cooperative organization. Singapore. but it plans to venture again. China. Paperboards. Packaged Foods & Confectionery. chairman of the Banaskantha Union. was elected chairman of GCMMF. Branded Apparel. Amul has entered overseas markets such as Mauritius. Paperboards & Specialty Papers. which today is jointly owned by 3.1 million producer members with milk collection average of 9. Packaging and Agri-Exports. Currently Unions making up GCMMF have 3. Branded Apparel. it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery. Bangladesh. It employs over 26. Gujarat Co-operative Milk Marketing Federation Ltd. Australia. is recognised as a key person behind the success of Amul. It is also the world's largest vegetarian cheese brand . Hotels. Besides India. .000 people at more than 60 locations across India and is listed onForbes 2000. Safety Matches and other FMCG products. Personal Care and Stationery. Hong Kong and a few South African countries. Oman. Its bid to enter Japanese market in 1994 did not succeed. Packaging. GCMMF (AMUL) Amul is the name of a dairy cooperative in India. Amul spurred the White Revolution in India which in turn made India the largest producer of milk and milk products in the world. former chairman of the GCMMF. Dr Verghese Kurien.10 million litres per day.

And this legacy has helped us develop a bond of trust with our consumers. Besides Asian Paints. with a turnover of Rs 77. we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. 06 and 07. Apco Coatings. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company. Home Care and Foods. Health Care. Chimanlal Choksi. India. in all age groups. Oral Care. Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. Suryakant Dani and Arvind Vakil in Mumbai Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award. the group operates around the world through its subsidiaries Berger International Limited.06 billion. across all social boundaries. That guarantees you the best in all products carrying the Dabur name. Skin Care. It is one of the largest paint companies in the world and operates in 17 countries. One of the country's leading business magazine "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best Employer. to the company.It has been recognized by "Economic Times" as well. It manufactures a wide range of paints for decorative and industrial use. we touch the lives of all consumers. Asian Paints (India) Asian Paints is an Indian chemicals company headquartered in Mumbai. SCIB Paints and Taubmans. Forbes has also ranked Asian Paints among the Best under a companies in Asia In 2005. For the past 125 years.Dabur India Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care. Through our comprehensive range of products. . Asian Paints is the only paint company in the world to receive this recognition. Asian Paints is India's largest paint company and Asia's third largest paint company. Asian Paints was founded on 1 February 1942 by Champaklal Choksey.

It is the market leader in Chocolate Confectionery business with a market share of over 70%.S. which gave a boost to the company’s sales. Britannia has an estimated 38% market share. Celebrations. the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta. milk food drinks. Biscuits were in big demand during World War II. Later. Currently. Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi.Halls. Its products include Cadbury Dairy Milk. acquired a controlling interest in BBCo.Initially. Britannia Industries Britannia Industries Limited is an Indian food-products corporation based in Bangalore.Cadbury Dairy Milk Silk. Cadbury was incorporated in India on 19 July 1948. It is famous for itsBritannia and Tiger brands of biscuit. The Mumbai factory was set up in 1924 and Peek Freans UK. a renowned attorney. It now has manufacturing facilities in Thane. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.and operated under the name of "V. beverage and candy & gum category. cakes and dairy products. Brothers. Gems. 295." In 1918. Kolkata and Chennai. 2011 published by Trust Research Advisory ranked Cadbury in the top 100 most trusted brands list. C. Cadbury India operates in four categories: chocolate confectionery. The company was established in 1892. bread. an English businessman in Kolkata. Holmes.H. Perk. Induri (Pune) and Malanpur (Gwalior). Cadbury has worked with the Kerala Agricultural University to undertake cocoa research. Eclairs. rusk. For over two decades. India. The corporate head office is in Mumbai. Bilkul Bournville. which are popular throughout the country. Bournville.The Brand Trust Report. with an investment of Rs. India Study. was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched.Tang and Oreo.Cadbury India Cadbury India began its operations in India in 1948 by importing chocolates. biscuits were manufactured in a small house in central Kolkata. The Company's principal activity is the manufacture and sale of biscuits. Bournvita.Cadbury Dairy Milk Shots. Mumbai. The . 5-Star.

The mixed-use development comprises of Retail.6 billion (USD 600 Million). Ahmedabad as a single destination entertainment point for the entire city. a location considered central to the new developments in the city. Entertainment. Ahmedabad had its soft launch on September 02. Kanjikode. The organisation holds a number of brands including Parachute (brand). Saffola.2 million square feet. In 1982 the American company Nabisco Brands. Retail malls in Ahmedabad AlphaOne AlphaOne. The concept seeks to develop AlphaOne. Xmen. in respect of its food. Inc. Manjal. HairCode. Marico Industries Marico is a fledgling Indian group providing consumer products and services in the areas of Health and Beauty based in Mumbai. 2011 and opened for one and for all on October 15. Revive. Aromatic. Baddi. Ahmedabad is a mixed-use development located at Vastrapur. Spa and Service Apartments.company name finally was changed to the current "Britannia Industries Limited" in 1979. Dehradun. Marico's own manufacturing facilities are located at Goa. AlphaOne. the company generated a Turnover of about Rs. Caivil. Pondicherry. adjacent to the Vastrapur Lake. In Bangladesh. Jalgaon. Hair&Care. Mediker. It has easy access from all sides. Marico operates through Marico Bangladesh Limited. Hotel. hair care and skin care related activities. Hercules. especially Ring Road and SG Road.000 square feet. Nihar. near Gazipur. a wholly owned subsidiary Manufacturing facility at Mouchak. 2011. Paonta Sahib and Daman.26. Code 78 and Black Chic. . The total area being developed is close to 1. became a major foreign shareholder. Kaya Skin Clinic. of which retail-cum-entertainment comprises of 704. During 2009-10. Fiancee.

Still it is one of the best mall of Ahmedabad . ft  610 cars & 795 two wheelers parking space  Escalators & Travelators from parking level to the mal Big Bazaar The yet another mall on the SG Road is of future Group. ft  Two huge central atriums of 11878 & 10340 sq. The mall was only attraction of huge public before ISCON Mega Mall came up.Iscon Mega Mall  Largest mall in Gujarat with over 450000 sq. ft. of retail space  Reliance & Westside as major anchors  Reliance’s first & largest hypermarket in India of 185000 sq.

soft drinks. bread. floor cleaners. Food and Beverages Health beverages. FMCG Category and products Category: Products: Household Care Fabric wash (laundry soaps and synthetic detergents). cakes). tea. vegetables. soft drinks. branded Rice. hair care. staples/cereals. coffee. bakery products (biscuits. Personal Care Oral care. skin care. deodorants. branded sugar. snack food. Perfumes. feminine hygiene. metal polish and furniture polish). chocolates. personal wash (soaps). insecticides and mosquito repellents. dairy products. . processed fruits. paper products. household cleaners (dish/utensil cleaners. ice cream. air fresheners. toilet cleaners. juices etc. cosmetics and toiletries. branded flour.3. bottled water.

Sales promotion does not always bring positive impact to business. It is also considered as a brand differentiator by many big players like Coca-Cola. advertising is always the best way as far as branding is concerned. For many business experts and academics. a promotional campaign needs to be designed taking into account the consequences of losing brand value. in comparison to balanced and calculated promotional offers. Heinz and many more. A PIMS study of 1991 suggests that overuse of sales promotion brings low ROI. marketers need to be careful and must understand the difference between the sales promotion and advertising . Introduction of the study 4.4. advertising is an intangible promotion of your products to send the marketing message to the customer base. Sales promotion and marketing are inter-related but not have the similar purpose. sometime this type of promotion cause negative brand impact to customers mind in the long-term. So. It is advisable not to use sales promotion as a tool of brand imaging. Pepsi. It is also an inexpensive marketing technique. It is advertising which makes a platform for sales promotion where customers can see the direct added value of buying your product. sales promotion is regarded as typical marketing techniques that add value to a product in order to achieve specific marketing goals. Typical example of sales promotion is to offer customers to take chance of winning a prize or offering some extra products with the same price. So. Sales Promotion: Advantages & Disadvantages The main advantages associated with promotional sales are-an easy way to learn customer response and it work fast.1 Literature Review Sales promotion A typical sales promotion budget covers almost 70% of the total consumer sales promotional budget. The primary purpose of sales promotion is to induce the consumers to make a quick buyingdecision in order to create increases sales. almost 15% less. On the other hand.

To increase the repeat purchase from the existing users. you must set the objectives of sales promotion which is all about why you want to achieve in sales promotion campaign and how your customers will be benefits. But a hosing plan and get a domain name free. Examples of Sales objectives 1. if the target group exists then find out their needs & wants. . This is done by breaking up of your product markets and identification of small groups of consumers whose wants and needs are not the same as the mass market as a whole this is one of the key to success in sales promotion. or money-back guarantees. by offering reduced price.Objective of sales promotion: Before designing a promotional campaign. sales coupons. Sales promotion is a vehicle to defend your business against your competitors. you must identify the target groups. 5. even if it being highly competitive. After learning about the target groups. and what drives them to buy your product. It can work as an introductory platform for a new product. 2. 4. By giving your users free coupons upon buying every products so as they can get considerable discount on the next purchase with a specified time will certainly bind your customers with your products and it will unlikely that they will switch on a new brand. Many marketers use the promotional sales as a tool to learn the response of the first time users. 3. Other aspects of sales objectives are: budget of the promotion and duration of the promotional offer. For finding the target group you need to take a qualitative research on the market to determine your groups of customers.

Consumer Sales Promotion Sampling If your objective is to trial the product then sampling is an effective sales promotion method. B2B and industrial sales promotion 1. Types of Sales Promotion Basically there are three main categories of sales promotion targeted at different elements of markets such as consumers. then certainly interested customers will learn about your product and this is why it is an effective way of educating customers. Try to target and find a new segment in the market by focusing geographic and psychology of users such as users with high and low purchasing needs. industries. Normally. Usually sampling is involved with low value products and products having highly visible features of benefits. These techniques help people to learn your product more and help them pay more attention to your product. For delivery sample products marketers use either door-to-door or mailing approach Couponing It is one of the oldest sales promotion strategies and sometimes couponing makes the product problematic by cheapening your brand name. traders. . For instance if you arrange a completion about providing the accurate information of your product . Consumer sales promotions 2. Trade sales promotion 3. 1. Contests and Sweepstakes These are very popular low-cost methods of sales promotion used and viable in almost any demographic location on earth. Coupon is mainly used for attracting new customers as well as to increase instant sales with price reduction of a product.6. arranging a competition or contents are very helpful for targeting a specific interest group.

To many marketers. . answer their queries and not to merchandise any products. It is a very powerful and efficient vehicle to reach the customers and to educate them about your products. where each customer gets some points on each purchase and later he can use these points on buying the same products or other products at a reduced price. refunds and rebates are very attractive ways to promote sales in cell phone service providers and web-hosting companies. The purpose of an exhibition is to interact with the customers. Example of exhibition is -Motor Show. An attractive and innovative packaging can work like a salient sales man-packaging does the hooking function to buyers. Loyalty schemes This is great way to hold the loyalty of customers. Generally exhibitions are held to develop consumer interests on products. Exhibitions This is not like trade show. Premiums are one of the effective sales promotions in targeting the brand switching users and also to increase sales rate among the existing users. Not that it is only important for packaging to be eye-catching. but it needs to protect the product inside with proper manner.Money refunds Instant cash-back. Premiums and bonus packs A premium offer means an extra item at a low price or totally. A well-packaged product carries not only the brand values but also create an emotional link to your prospects. aesthetic. money back offers give a sense of security to all customers. because they simply do not understand the psychological and brand image aspects of packaging. It is basically a point based system. loyalty schemes are also known as-frequent purchasing scheme. For any product sales promotion. Packaging Many marketers do no pay much attention to the quality of packaging.

retailers normally does not use this technique to boost their sales. and displays. As a part of the promotional offer and relationship building. introduce those new products. shelf facings. manufacturers offer training to the retail staff so as they become more effective and skilled while dealing with customers. Incentives This is a popular trade promotion idea with the manufacturers. Some effective techniques used in a trade promotion are: discounts. Trade Sales Promotions Improve the distribution line is the key purpose of trade sales. Trade shows It is a way of getting to learn new customers. But unlike exhibitions. A successful trade show can be measured by keeping records of the number of visitors. trade show involves in selling products. Advertising allowances promotion This is very common practice among manufacturers where a certain amount of money is given to the retailers by the manufacturing company. Free training It is a well-unformatted sales man work like an ambassador for your brand. Incentives are given as a form of cash bonus or prizes per sale. This free training is very important promotion . by organizing trade shows.2. getting customer reactions. Buying allowances It‘s a kind of price reduction for your product for a specific period of time. Customers need proper information from a proper channelled-no one than sales man does this job better. useful leads and identifying the products with most interests to customers. point-of sales materials. This is allowances is based on the number of products and orders retailers can bring to the manufacturers.

Personal selling involves face to face contact with specific individuals. Industrial sales promotion is all about applying the trade & consumer promotional ideas into industrial marketing environment. shows and exhibitions. Sales Promotions: B2B & Industrial This is the last but not certainly the least important portion of the sales promotion plan. While devising a promotional plan. Depending of the type of products you choose to promote decides which promotional ideas will bring you the best ROI.factor you market any complicated and expensive products. Depending on the situation. So. make sure sales promotion campaign does not harm your brand image at any cost. Sales promotion serves as a link between two by focusing selling efforts on selected small groups of people. you need to decide on which consumer and trade promotion ideas is best suited in B2B environment. always try to avoid price competition wars as much as possible. advertising. and publicity that stimulate consumer purchasing and dealer effectiveness. Sales promotion consists of all promotional activities other than advertising. keep in mind that sales promotion has disadvantages too. For example. while advertising is directed at a large number of potential customers. demonstrations and various non-recurring selling efforts not in the ordinary routine. 3. it includes marketing activities other than personal selling. consumer promotional offer like ―buy one get one freeǁ can be offer in B2B environment as ―buy one and get one-year service freeǁ. In other words. rather put you all the attention in improving the quality of products by adding more values to it. Purpose The ultimate aim or purpose of sales promotion is that of increasing the volume of sales and profits but it differs from advertising and personal selling both in approach and techniques. personal selling and publicity that help to increase sales through non repetitive and one time communication. Along with it each training manufacture needs to provide well-documented brochures and technical manuals to the retailers. Sales promotion usually involves non-recurring and no . such as point of purchase displays. And finally.

(iii) Supplementing and co-coordinating the efforts of advertising and personal selling (B) The other objectives are: (i) Calling attention to new products and product improvements. (v) Meeting competition. Sales promotion covers various stimulants directed to the consumers and dealers that is why it is of two types-consumers sales promotion and dealers‘sales promotion. (iv) Obtaining dealer outlets. Industrial and specialty goods should be promoted through technical journals and through sales engineers. Mass selling consumer goods can be easily promoted through radio and television. These objectives are set on the basis of following criteria. and latter improves dealer‘s effectiveness at the retail outlets.routine methods. (A) Basic objectives of sales promotion are: (i) Increasing the buying response of ultimate consumers. (i) Cost of reaching an audience member. (iii) Improving market share. the media is not owned and controlled by the advertiser except in direct mail advertisings. How Sales Promotion Objectives are set: Sales promotion has dual objective: (A) Basic objectives and (B) Other objectives. The former stimulates consumer‘s buying at the point of sale. in contrast with the routine and recurring nature of advertising and personal selling. But sales promotion methods are controlled by the advertiser. (ii) Increasing the selling efforts and intensity by dealers as well as by sales personnel. These criteria are developed taking into consideration the following variables/factors: (i) Kinds of product: The product is one of the factors determining the form of promotion. (ii) Informing buyers of new brand and new packaging. Toys. toilet soaps and cosmetics are effectively shown on television. Under advertising. . (ii) Acceptability of the tools to be used.

. Sampling. Introducing a new product for most companies is a costly and difficult exercise that is why they mostly depend on middlemen. money refund orders. Profit also starts declining much faster than the sales. their needs and desires.(ii) The buyer: If the marketers are to provide realistic solutions to the problem of buyers. aspirations and expectations.. If the buyers are educated then demonstrations or instructions can be used as sales promotion technique. price-off and trading stamps etc. exhibitions and fashion shows are more appropriate for sales promotion on the national level particularly for garments. (iii) Nature and size of market: The number. It includes a fast growth both in sales volume and profit. But the speed in achieving sales volume reduces during this stage.This stage is longer. (c) Maturity (Saturation). geographical location and purchasing power of potential customers exercise a significant impact on the sales promotion. acceptance and demand for the product. they must know their customers. books and electronic items. values. fairs. Similarly. On the other hand. premium offer. A product life cycle consists of four stages. Hence marketers must have up-to-date information about customer demand and customer behaviour. are suitable for sales promotion in local markets. contests and quizzes can be used if buyers are of young age and educated. their attitude. (a) Introduction of the product requires lot of energy to create awareness. (iv) Stages in product life cycle: This is an important managerial tool in sales promotion. (b) Growth. coupon.

sales promotion objectives are set. Similarly. For example. first of all. on the one hand. But promotion budget should always justify the tasks to be undertaken. At this stage either high cost sales promotion technique may be used or existing product may be improved. then promotion programmes will have to be designed to support the marketing plan. the greater the geographical dispersion of a target market.(d) Declining. the buyers lose interest on the product. and the third step is to determine the cost required to execute promotional activities and programmes. If any business house does not have its promotion budget fixed. the commodity rates must be specified on the package and in case of medicines drug contents and date of manufacturing. the greater the communication expenditure required. and sales start falling more quickly. Hindustan Lever has its well drawn up sales promotion budget. and varieties of products and markets on the other. there is a greater need of expenditure. After a period of stability. (v) Government regulations: Government has passed various laws and made rules to protect the consumer interest. A basic principle would be the cost and returns of sales promotion tools to be adopted. (iv) Budget allocation available: The decision on how much to spend on promotion is externally difficult on account of multitude of promotion tools. if an offering is in its early life cycle. the Drugs and Magic Remedies (Objectionable Advertisements) Act. and Drugs and Cosmetics Act etc.g. and price must be specified. This is the last stage in product life cycle. then communication tools required to achieve these objectives are designed. e. In short sales promotion expenditure is directly related to the objectives to be achieved. . Sales promotion policy must take into consideration the government regulations relating to the particular product. date of expire. such as the prevention of Food Adulteration Act. (v) Management policy: In the management policy.

They have also described that for high-equity brands. and exploration). Lal and Rao 1997). that sales promotions have for consumers. Kahn and McAlister 1997). many industry experts are calling for more effective and cost-efficient promotions that rely less on price (Promotion Marketing Association of America 1994). Marketers and academics often view the reliance on sales promotions. These critics argue that. and three utilitarian benefits (savings. Quelch and Salmon 1990). If this is true. and improved shopping convenience) explained by Pierre Chandon. an everydaylowprice may indeed represent an efficient solution for providing consumers with these savings while minimizing search costs for the consumer and logistical costs for the firm. or benefits. Brian Wansink et al (2000). entertainment. and some go so far as to recommend eliminating most promotions by switching to an everyday-low-price policy (Kahn and McAlister 1997. especially monetary promotions. which explains why so many are unprofitable (Abraham and Lodish 1990. and Lehman 1997). . Adopting consumer perspective the value that sales promotions have for brands is related to the value. higher product quality.Sales Promotion Effectiveness Are monetary savings the only explanation for consumer response to a sales promotion? There are monetary and non-monetary promotions provide consumers with different levels of three hedonic benefits (opportunities for value-expression. So. As a result. it is feared that sales promotions increase price sensitivity and destroy brand equity—both with retailers and consumers (Mela. it leads to the fundamental question of why consumers respond to sales promotions. Gupta. Most econometric or game-theoretic studies assume that monetary savings are the only benefit that sales promotions have for the consumer. In the long run. as a sub-optimal consequence of price competition caused by myopic management (Buzzell. monetary promotions are more effective for utilitarian products than for hedonic products. the proliferation of monetary promotions erodes their capacity to ―rentǁ market share. in the short-run.

Beyond its intended contribution to the general debate on the value of sales promotions or on the antecedents of consumer response to them. ITC Limited. The existence of multiple consumer benefits may also help understand some puzzling consumer responses to sales promotions which cannot be fully explained by the search for savings (e. and Hoyer 1990. has kept the ad expenses almost proportionate to growth in net sales. Income and expenditure statement of the major companies in the segment analyzed for the FMCG companies.37 per cent growth in net sales during the same period whereas Britannia which spent about 17. It is obvious because monetary and non-monetary sales promotions offer different benefits. Soman 1998). McAlister.80 per cent to their net sales during the analyzed period. Hindustan Unilever Limited increased its advertising costs in 2008-09 by 48 per cent to 2.47 per cent more on advertisements in 2008-09 as compared to the previous year recorded a growth of 20. Schindler 1992. which used to be fervent advertisers in the past.92 crore which was at 440.130. sales promotions provide consumers with an array of hedonic and utilitarian benefits beyond monetary savings. The elasticity of advertisement of the sector stood at 0. have marginally hiked their ad budget in 2008-09 in comparison with 2007-08. . spent nearly 33 per cent more in 2008-09 than the previous year. Dhar and Hoch 1996.44 per cent in the same period. Sales Promotions in India The FMCG sector which had kept the highest advertisement expenses as the proportion of sales. they should be more effective for different types of products. Another FMCG major.. as the company earned 8. According to the analysis of FMCG sector.On the other hand. if. Inman.g. studying the consumer benefits of sales promotions as practical implications for improving their effectiveness.22 crore in 2007-08. everyday low prices cannot fully replace sales promotions without the risk of alienating consumers who value the nonmonetary benefits of sales promotions. Drèze and Purk 1994. Hoch.

Growth is also likely to come from consumer 'upgrading' in the matured product categories. skin care. particularly the middle class and the rural segments.52 per cent in the net sales figure in 2008-09 as compared to 2007-08. . It has a strong MNC presence and is characterized by a well established distribution network. India needs around US$ 28 billion of investment in the food-processing industry. 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. hair wash etc in India is low indicating the untapped market potential. With 200 million people expected to shift to processed and packaged food by 2010. next only to China. toothpaste.4 billion in 2015. Even on an international scale. presents an opportunity to makers of branded products to convert consumers to branded products. India . Fast Moving Consumer Goods (FMCG) Sector of India The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.05 per cent saw a growth rate of 22.6 billion in 2003 to US$ 33. cheaper labor costs and presence across the entire value chain gives India a competitive advantage. total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging markets. Burgeoning Indian population.Dabur spent nearly 14. Marico Limited which cut its advertising expenses in 2008-09 by 6. Availability of key raw materials.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.1 billion. intense competition between the organized and unorganized segments and low operational cost.85 per cent more on advertisements in 2008-09 as against the corresponding period of previous year while the company‘s net sales increased by 15 per cent in 2008-09. The FMCG market is set to treble from US$ 11. Penetration level as well as per capita consumption in most product categories like jams.

candy. it is critical to recognize the responsiveness of consumption to promotion in order to measure the effectiveness of promotion on sales more precisely Emerging literature in behavioural and economic theory has provided supporting evidence that consumption for some product categories responds to promotion. Chandon and Wansink (2002) show that stockpiling increases consumption of high convenience products more than that of low-convenience products. For these categories. Wansink and Deshpande (1994) show that when the product is perceived as widely substitutable. (1993) show that consumers curb consumption of products when supply is limited because they perceive smaller quantities as more valuable. such as packaged tuna. Conventional choice models cannot be used to address this issue because many of these models assume constant consumption rates over time (usually defined as the total purchases over the entire sample periods divided by the number of time periods).Promotion & Consumption Does consumption respond to promotion? Many studies have focused on the effects of promotion on brand switching. and it remains unclear how promotion affects consumption (Blattberg et al. Folkes et al. consumers will consume more of it in place of its close substitutes. promotion can actually stimulate consumption in addition to causing brand switching and stockpiling. The consumers‘consumption decision has long been ignored. for product categories with a varying consumption rate. . Wansink (1996) establishes that significant holding costs pressure consumers to consume more of the product. purchase quantity. In an analytical study. Assuncao and Meyer (1993) show that consumption is an endogenous decision variable driven by promotion and promotion-induced stockpiling resulting from forward-looking behaviour. While this assumption can be appropriate for some product categories such as detergent and diapers. Using an experimental approach. or yogurt. Adopting scarcity theory. it might not hold for many other product categories. Thus. 1995). orange juice. They also show that higher perishability increases consumption rates. and stockpiling and have documented that promotion makes consumers switch brands and purchase earlier or more.

consumers form future price expectations and decide when. (2003) explicitly model consumers‘ expectations about future prices with an exogenous consumption rate. Erdem et al. Witness 215 billion manufacturer coupons distributed in 1986." A greater understanding of the different types of consumer responses to promotions can help managers to develop effective promotional programs as well as provide new insights for consumer behaviour theorists who seek to understand the influence of different types of environmental cues on consumer behaviour. Blattberg. and Hastak (1979) find evidence that promotions are associated with purchase acceleration in terms of an increase in quantity purchased and. Newman. In their model. Sales Promotion and Consumer Response/ Preference Consumer promotions are now more pervasive than ever. and Liebermann (1981). and how much to buy. Eppen. So far. and manufacturer expenditures on trade incentives to feature or display brands totalling more than $20 billion in the same year. decreased inter purchase timing. Gupta (1988). private brand proneness and deal proneness. to a lesser extent. Blattberg. Erdem and Keane (1996) and Gonul and Srinivasan (1996) establish that consumers are forward looking. and Wilson. Kessler 1986).There are some recent empirical papers addressing the promotion effect on consumer stockpiling behaviour under price or promotion uncertainty. Guadagni and Little (1983) and Gupta (1988)-have found promotions to be . Ward and Davis (1978). Peacock and Sen (1976) define a purchase strategy as a general buying pattern which "incorporates several dimensions of buying behaviour such as brand loyalty. and Quelch (1985). (2003) demonstrate that ignoring forward looking behaviour leads to an over estimation of promotion elasticity. up 500% in the last decade (Manufacturers Coupon Control Center 1988). Neslin. Researchers studying the brand choice decision-for example. or to study how pervasive these strategies are in a population of interest. not much work has been done to identify the purchasing strategies that consumers adopt in response to particular promotions. Sun et al. Henderson. what. Shoemaker (1979). up 800% in the last decade (Alsop 1986.

and price discounts to increase sales and market share. economic. 1984. 1988.g. Peacock. increased quality. Non-price promotions such as sweepstakes. consumers like promotions. and price sensitivity (purchase at regular price. many brands). Tansuhaj. and Sen (1976. Kashani and Quelch. and convenience. as well as hedonic benefits such as entertainment. or generic. Aaker 1991. There are other variables that may be used to describe purchase strategies.g. 1988. 1995. or whether it is store-loyal or not. exploration. 1996). Bawa and Shoemaker. 1996). Huff and Alden. It is generally agreed that sales promotions are difficult to standardize because of legal. and cultural differences (e. Blattberg. consumer sales promotions are an integral part of the marketing mix for many consumer products. frequent user clubs. examples are whether the household purchases a major or minor (share) national brand. and Sen but add a purchase acceleration variable to study the profitability of product promotions. single brand shifting. Foxman. Gupta. 1987 and 1989. store brand. Multinational firms should . 1990. Shea. McAlister (1983) and Neslin and Shoemaker (1983) use certain segments derived from those of Blattberg. type of brand preferred (national. important gaps remain to be studied. and self expression (Chandon.. Blattberg and Neslin. purchase at deal price).. and encourage brand switching. A large body of literature has examined consumer response to sales promotions. Peacock. added value. Leone and Srinivasan. Marketing managers use price-oriented promotions such as coupons. both national and private label). rebates. 1997). entice trial. Schneider and Currim (1990). and Wong. Laurent. and Webster (1965) found that promotion-prone households were associated with lower levels of brand loyalty.g.. Montgomery (1971). most notably coupons (e. In addition. Throughout the world. Sawyer and Dickson. and premiums add excitement and value to brands and may encourage brand loyalty (e. 1990. and Wansink. 1998). Kirshnan and Rao. 1978) describe 16 purchasing strategy segments based on three purchase dimensions: brand loyalty (single brand.associated with brand switching. They provide utilitarian benefits such as monetary savings. Despite this.

. The individuals‘ sensitivity to price is conditioned by a series of factors like market share. 1991)... Aggarwal and Cha. a reduction in the price of an expensive brand may make this more attractive for the . Price elasticity: Traditionally the price has been considered an informative element. 1954. Bronnenberg and Wathie. Some phenomena or issues of interest in relation to this have been analyzed in the previous literature: asymmetric price effect (Lemon and Winer. Tull et al. (2005) point out. level of competition.therefore understand how consumer response to sales promotions differs between countries or states or province. In the analysis of the effects of price fluctuations. McConnell. With these reductions in prices. they will depend on the brands submitted to such fluctuations (Hoch and Banerji.. Sethuraman and Srinivasan. Cross price elasticity is adequate to know the extent to which a variance in a brand price alters the demand of the rival brands. price elasticity of demand is the percentage change in quantity demanded as a result of a 1 per cent change in price. Lichtenstein et al. 1988). Sethuraman et al. activity in display. brand loyalty or other variables related to the consumer like his income (Lambin. As Fibich et al. 1964. 1998). manufacturers and retailers act on the prices policy to achieve increases in their sales of products. 1998). The results of Sethuraman (1995) indicate that while reductions in the price of manufacturer brands with more market share will influence the store brands‘ sales. 1996. In this way. 1968. Although these are usual effects. 1998). asymmetric share effect (Sethuraman. the concept of price elasticity of the demand must be unavoidably mentioned. 1999) and proximity to neighbor effect (Sethuraman et al. consumers are expected to buy a greater amount of the product or brand. Similarly. it is less likely that manufacturer brands are affected by reductions in the price of store brands. 1995. 1993. from which the Consumer can create an expectation on the quality of the product to acquire (Leavit. The brand choice made by the consumer at the moment of the purchase will be influenced by the price of the different brands of the category of product. 1993.

Nowadays the consumer observes that the category of products is systematically affected by some promotional actions. . (1998) confirm that long-term price promotions make the consumer more sensitive to price and therefore their effectiveness is reduced with the subsequent negative effect on benefits. among others. (1997). Retail establishments should modify their promotional plans in order not to lose the essential objective: modify favorably the consumer buying behaviour surprising him with a promotion action. the amount of discount provided or the type of product to which the promotion is applied. In the long term. 1990). the presence of promotion actions attractive to consumers may make this change establishment (Tellis. It is very difficult to distinguish price variances which are caused by decisions derived from the prices policy from those produced as a result of the promotion policy. Sales promotion: immediate price reductions Price and promotion strategies are closely related. Nevertheless. therefore. This element of surprise is now in danger. 1997). Thus. the likelihood of choice of this brand may be increased to the detriment of the rest. These results are coherent with those obtained by Mela et al. and as a consequence he will not modify the planning of his purchase (Fader and Lodish. Even Mela et al. Besides. we must clarify that the effects provoked by promotions vary according to multiple factors: the type of incentive. When the promotion ends. Some years ago both effects were more intense than nowadays because the use of sales promotion was not as widespread as it is now. the sales level tends to go back to a position near the initial position.consumer and. 1990. according to which sales promotion has to stop being a part of the communication mix to become an autonomous variable. Lal. sales are reduced even below the usual levels (without promotion). proposal has been developed by Cummins (1998). This effect is related to the change of brand.

(2000). .that is. On some occasions the consumer may also stop buying a brand or avoid its purchase when it is promoted so as not to have to justify his behaviour before the group (Simonson. others defend that the consumer remembers the prices paid on previous occasions and he will form his reference price from them. The greater increase in sales occurs as a consequence of this reality (Blattberg and Neslin. In previous researchers questions related to reference prices have been approached in depth. The problem focuses on finding the most adequate way of estimating that level. Gupta. 1994).. 1990. he will stop buying the promoted brand (Simonson et al. which will make his behaviour. and thus. Or the consumer simply decides not to buy the promoted product because he feels that he is being manipulated and he will act punishing the retailers. It seems widely accepted that when consumers buy a product they compare its price with a subjective level. This happens when the consumer perceives that he is paying for unnecessary product highlighting and positioning activities. 1989). While some theoretical trends consider that the consumer forms his reference price from the observation of the prices at the establishment. It is necessary to be continuously in touch with the market because on certain occasions the use of promotions could cause unwanted effects. Begona Alvarez Alvarez and Rodolfo Vazquez Casielles (2008) concluded that the brand choice and buying behaviour developed by consumers is a complex phenomenon. 1993). The analysis made allows them to propose the estimations from stimuli or observation as explanatory of the brand choice and decision process developed by the consumer. consumers who do not usually acquire the brand feel attracted and buy it. deviate from the desired one. The results of works such as those by Suri et al. The influence of prices on this process is very important. detect the need to introduce promotions as explicit elements of the consumer buying behaviour. The variables that influence it are numerous and it is necessary to know them to act and develop useful strategies that achieve the objectives aimed at in each case.

they have considered it necessary to clarify the effects this may produce. they have found differences in the intensity of response to price variances between manufacturer brands and store brands. Sinha et al. 1999.. for those in which consumers show a strong tendency or preference for the brand. Further. The effects derived from their fluctuations depend on the characteristics of the brand. for other categories of product with lower loyalty rates. The latter appeared to be more vulnerable. Sellers use various advertising and promotion tactics to attract customers and increase sales. because they are not relevant in the brand decision process. Begona Alvarez Alvarez and Rodolfo Vazquez Casielles (2008) have confirmed the importance of prices in the purchasing process. 2000). Specifically. the expected results are not obtained. Monroe (2008) have distinguished between consumers who have prior goals to buy the product relative to those who do not have such purchase goals.. Since one of the most widely used techniques of sales promotion are immediate discounts. The application of another promotional tool would be more advisable instead. . since the use of other promotion actions does not produce any effect. they have added whether consumers‘responses to different promotion message framing and price presentations differ when they do or do not have pre-purchase goals. Sinha and Smith. Lan Xia and Kent B. However. Thus. Discounts are perceived as attractive and serve to modify consumer preferences. 1992. understanding how consumers with different purchase goals react to various promotion messages can help sellers design effective promotion programs. the application of discounts is the most adequate action. Previous research has shown that framing of promotion messages and presentation of price information influence consumers‘ perceptions of prices and their willingness to buy (Das. 1994).Just as it was expected. Interesting results have been obtained regarding this issue. Since the same promotion information may lead to different perceptions as consumers‘goals vary (Shavitt et al. but depending on the category of product. However.

In the market place. Bagozzi and Dholakia. the particular goal in place changes everything – the focus of attention and the evaluation of objects and events. as well as memory for events Although the importance of consumer goals has been recognized in previous research. or taking a vacation. 1999). 1997. 2006) which guide the allocation of attention as well as other cognitive resources for information processing (Peterman. there are different levels of consumer goal specificity (Lawson. consumer goals vary along a continuum ranging from no goal. Such goals are important as they direct other stages of the consumers‘ decision process. the involvement with any particular purchase is low and they may spread out their attention and no single piece of information may be regarded as particularly relevant. abstract goal to concrete goal. Many options are relevant and attentions are spread across multiple product categories. 1997).Consumer goals Many consumer purchasing decisions are goal oriented (Bagozzi. Broadly. . consumers may consider multiple activities including going to a movie. it has not been explicitly incorporated in research on consumers‘ perceptions of price promotions (Mazumdar et al. Goals are associated with different levels of consumer involvement (Howard and Kerin. when shopping. if the goal is to get away from work and have fun (an abstract goal). only microwave oven information is relevant and tends to get people‘s attention. As Bargh (2002) has indicated. their involvement is high and they are more focused in their information search and processing and perceive some types of information to be more relevant than others. People with abstract goals tend to search across product categories and consider a wider range of information as relevant. However. 2005). if the goal is to buy a microwave oven (a concrete goal). when they have a specific purchase goal. Yet. visiting friends. For example. Goals guide consumers‘ information gathering and decision processes.When consumers have an abstract goal or no goal at all.. On the other hand. 1997).

Price promotions usually provide consumers with monetary savings on specific products. motives. If consumers are in a store intentionally searching for these specific products. For example.consumers may encounter various price promotion messages for products or services for which they do or do not have specific purchase goals. operationalized by whether they are in the market for a particular product. consumers may react to different promotion characteristics in different ways given the existence or absence of a pre-purchase goal. Howard and Kerin (2006) found that consumers with different levels of involvement. Price promotions and pre-purchase goals Goals play a fundamental role in influencing how information in a promotion message will be processed (Shavitt et al. they select among them on the basis of goals. . Lan Xia and Kent B. Thus. In addition to this main effect. the purchase likelihood is higher. then it is expected that they would find promotions on such products more attractive compared to those consumers who are in the store but do not have a prior purchase goal for a promoted product. When individuals have multiple information processing strategies available. Mazumdar et al. 1998). and the environmental context (Taylor. 1994).. planned vs unplanned purchases) as an important moderating factor of the effects of various types of reference price information. have different information processing styles and hence respond to different price promotion cues. Therefore.e. by definition information regarding a specific product attracts more attention when consumers have a prepurchase goal for that product category compared to when consumers do not have a pre-purchase goal. (2005) in a summary of reference price research called for more research examining shopping occasions (i. Monroe (2008) examined how consumers‘ prior purchase goals interact with promotion characteristics to influence their perceptions of price promotions and their willingness to buy.

price promotions come in different formats such as discount.. while the value of the promotion may be equivalent to a discount. framing. Discounts reduce the price that consumers have to pay for the product (i. However.g. reduced sacrifice). and purchase with free gift. coupon. free gift value. it does not reduce the sacrifice with the focal product purchase and therefore it could be perceived as a gain. Compared to price discounts. format. Different promotion characteristics influence current as well as future purchase intentions (DelVecchio et al. One type of non-monetary promotion often used is offering consumers a free product or gift instead of a price discount. non-price promotions such as free gifts are likely to be perceived as small gains (Diamond and Johnson. Research on deal characteristics studies the influence of factors such as deal percentage. deal characteristics. some promotions are non-monetary. situation factors. 1990) and maintain product quality perceptions comparing to discounts (Darke and Chung. Lan Xia and Kent B. Promotion format: Discount vs. 2002). they may react differently to monetary and non-monetary price . Situation factors refer to the overall situation of the price promotion including types of stores. etc. Free Gift In addition to promotion framing. in a free gift promotion.e.Price promotion characteristics can be grouped into four categories: price presentation. 2005). If consumers with and without pre purchase goals respond differently to gains and losses in price promotion perceptions. brands and whether the promotion information is received at home or in the store. and study effect (Krishna et al. Finally. Monroe (2008) examined several important issues related to price presentations and deal characteristics of price promotions focusing on promotion framing.. 2006). and size of the bundle. nevertheless. While most promotion forms involve monetary savings. and promotion depth. rebate. study effect addresses measurement issues including factors such as number of variables manipulated and number of participants. Price presentation research examines whether consumers‘ perceptions of a promotion are influenced by how the promotion is communicated. e.

Participants preferred discount over free gift and higher discount level over lower discount level regardless of the presence of a pre-purchase goal. This main effect was not mediated by perceived value. Further more.g. such thresholds are less observable when consumers have a prior purchase goal. Monroe (2008) concluded how consumers with or without a specific prepurchase goal respond differently to a price promotion. Product or brand level price promotion information is less relevant when consumers do not have a pre-purchase goal. It is also added that the main effect of promotion format probably due to fact that the two promotion framing represented equivalent price savings. ―pay lessǁ and a discount) while consumers without a goal are more responsive to messages framed as additional gains (e. These main effects were mediated by perceived transaction value. if consumers who are planning to buy a product are more focused on the monetary sacrifice. They observed a main effect of promotion format. Henceforth. In contrast.promotions Diamond and Abhijit (1990) found that a price discount was more likely to be chosen even when the discount was less than the retail value of the free product. they are less responsive when the discount level is either too small or too large. As discussed earlier. In addition to the main effects. However.g. ―save moreǁ and free gift). Lan Xia and Kent B. Consumers planning to purchase a product are more responsive to promotion messages framed as reduction of losses (e. This result is consistent with the intuition that consumers are responsive to information that matches their needs. consumers who are not planning to buy may be more attracted by a small gain associated with the free gift. consumers with different purchase goals respond differently to the depth of a discount. Not surprisingly. Monroe (2008) showed a consistent main effect of goal on participants‘willingness to buy. it has been concluded that perceived quality is the underlying mechanism for . they show how consumers‘goals interact with some important characteristics of price promotions to influence their willingness to buy. The effect of the promotion message framing or format is conditional on consumers‘ prior purchase goals. When consumers do not have a purchase goal. Lan Xia and Kent B. they would prefer a price discount (reduced loss) over a free gift promotion (small gain).

Because such promotions are offered selectively to some consumers (i. whether companies should rely on customized promotions remains an open question. . Krishna. At their most exclusive. questions have been raised regarding the efficacy of targeted offers in general (Homburg. Krishna. which limit discounts to current and retired teachers). targeted promotions can be selectively offered to entire groups of consumers. price discounts can be customized to maximize promotional fit with individual consumers (Simonson 2005). Feinberg.e.g. However. Keinz. In this regard. undifferentiated) offers.the effect of promotion framing across purchase goals.. and Steger 2009. and Totzek 2008) and customized price promotions in particular (Acquisti and Varian 2005. introducing consumer goals as a moderating factor provides some boundary conditions to previous research effects and adds to knowledge of consumers‘ perceptions of and responses to various price promotions.. Overall. The notion that targeted deals are more efficient than across-the-board sales promotions that provide unnecessary discounts to price-insensitive consumers has prompted a dramatic growth in customized pricing and sales promotions (Acquisti and Varian 2005). Thus. in which loyal consumers of a brand provide less favourable preferences for that brand when they are excluded from a targeted deal offered only to competitors‘customers. Simonson 2005).e. a variable that has received little attention in the literature is the relative exclusivity of targeted price promotions. as with affinity marketing programs (e..e. Borders‘ educator savings promotions. highlighting the need for additional research into how consumers respond to targeted discounts as well as contingencies that affect their response to these offerings (Franke. and Zhang (2002) provides evidence of a betrayal effect. At more modest levels of exclusivity. deal recipients) but not to others (i. deal non recipients).. and Zhang 2002). Droll. Research by Feinberg. targeted price promotions involve a level of exclusivity that surpasses that associated with more inclusive (i.

Equity frameworks (Adams 1965. Greenberg 1986) presume that people will engage in interpersonal comparisons that factor not only the outcomes received (non social utility) but also how such outcomes compare with those that others accrue (social utility).g. non recipients (whose exclusion from the offer results in disadvantageous inequity) should evaluate this type of promotion less favourably.. explored was whether. Equity theory further suggests that evaluations of a targeted offer will depend not only on the relative outcomes associated with the offer (i. and Totzek 2008). and Zhang (2002) likely arose because of disparities in both exchange components. In the context of targeted deals. Droll. when. and Bazerman 1989). Loewenstein. Thus. they are self-regarding).e. the receipt of an exclusive deal leads to advantageous inequity that enhances evaluations of the targeted discount among deal recipients (Greenberg 1987. When consumers react to marketing offers with the goal of maximizing personal welfare (i. However. Krishna. Thompson. Michael J. the negative reactions of deal non recipients in Feinberg. and Zhang 2002. and Lieberman 2008) that undermined the preferences of non recipients for the brand to which they had previously been loyal.. Being placed in a situation of disadvantageous inequity presumably prompted negative emotions (Tabibnia.. Barone & Tirthankar Roy (2010). Homburg. In contrast. these consumers experienced disadvantageous inequity in terms of both the relative outcomes associated with the offer (non receipt of the targeted promotion) and the relative inputs (brand-loyal non recipients had more invested in their relationship with the marketer than deal recipients. through their past patronage of the brand) (Feinberg. as a result of their respective outcomes. In comparison with deal recipients. Satpute. whether the consumer is a recipient or non recipient) but also on the inputs or costs associated with receipt of the promotion. who were users of a competitive offering).e. recipients and non recipients should differ in their evaluations of a targeted deal. these inputs may be represented by the amount of effort customers have invested in their relationship with a marketer (e. Krishna. in turn. Bolton and Ockenfels 2000. these investments should influence how consumers respond to a targeted offer (Verhoef 2003). In this regard. and how recipients‘ evaluations of a targeted price promotion may be affected by the .

offer‘s exclusivity (i.e., the extent to which an offer is available to consumers in the
marketplace). If exclusion from a targeted offer can trigger disadvantageous inequity
for non recipients (as Feinberg, Krishna, and Zhang (2002) demonstrate), it stands to
reason that receipt of an exclusive discount should engender advantageous equity
for deal recipients.
Furthermore, an emerging literature on inequity aversion (Fehr and Gintis 2007; Fehr
and Schmidt 1999) suggests that certain people desire outcomes that balance
selfregarding (i.e., selfish) interests with other-regarding interests. Thus, some
consumers may be reluctant to engage in exchanges that provide them with
advantageous inequity, and this disinclination is likely to grow with the level of
inequity characterizing the exchange (Scheer, Kumar, and Steenkamp 2003).
Inequity-averse deal recipients should evaluate a deal less favourably as it becomes
more exclusive. As a result of their motivation to avoid experiencing the negative
affect (e.g., guilt) that may accompany advantageous inequity (Scheer, Kumar, and
Steenkamp 2003), inequity-averse recipients should evaluate exclusive deals less
favourably than more inclusive offers. While variations in inequity aversion have
been examined at more macro levels (e.g., across cultures; see Scheer, Kumar, and
Steenkamp 2003), little work has explored individual difference factors that
characterize inequity-averse people.
However, such an examination affords a means of identifying theoretically relevant
variables that moderate consumers‘ tendencies toward inequity aversion, information
that is useful in developing strategies aimed at more effectively and efficiently
delivering targeted deals to the marketplace.

3.8 Short- and long term effects of Sales Promotion
The evidence of short-term effects seems to be well documented in the literature. It
is suggested that SP can build brand awareness and motivate trial, provide more
specific evaluation methods, as they are more immediate and operate in a specific
time frame, (Pham, M.T., Cohen, J.B., Pracejus, J.W. & Hughes, G.D., 2001),
influence sales, (Roberts, John H., 1995) expand the target market (Robertson, T.S.,

1993) and achieve competitive advantage.( Rothschild, M.L. & Gaidis, W.C.,1981).
According to their purpose, SPs are often successful in inducing action, as they
encourage consumers to act on a promotion while it is still available. Also, the
strength of SP lies in its flexibility to quickly respond to competitor attacks contributed
by Sandra Luxton (2001).
Despite these benefits, the question remains whether these effects are made at the
expense of the long term impact that SP may have on companies. Sawyer, A. and P.
Dickson (1984) and Simonson, I., and Z. Carmon (1994) proved that there is
evidence pointing towards SP having a negative effect on brands, especially in
relation to advertising. It is argued that SP does not have any brand-building impact
and could lead to diminishing effects for the brand, particularly well-established ones.
In fact, the Ehrenberg et al. study showed that price-related promotions do not have
any effect on brand performance, either in terms of sales or repeat purchase.
According to the authors, this is due to the fact that promotions influence existing
customers in the first place, with some rare exceptions shared by Simonson, I., and
Z. Carmon (1994). This is a concern for companies, whose main objective it is to
target new customers or gain more long-term profit, as new customers might only
take advantage of the promotion and then go back to their preferred brand. Also,
even when the existing customers are targeted and the response is satisfying, these
consumers‘ price sensitivity may be enhanced, causing difficulties in the long run. A
premium brand needs to justify its high price and its image, and often does so
through advertising, but are these media expenditures a waste of money if the image
is damaged through other communication channels? Perhaps the easiest advice
would be to simply avoid SP due to this potential risk, but as we have seen in the
FMCG markets, SP cannot easily be avoided and market characteristics force
companies to address this issue. In addition, it is arguably the FMCG markets that
face the largest issue of competition and lack of differentiation among products; and
these are all the problems that successful branding might ease.
Also, as previously implied, retailers and the characteristics of the retail environment
play an important role in customers‘ perception of a brand. Not surprisingly, it has
been found that the context in which a brand is seen influences the brand image

perception, and might damage the brand in some cases. For instance, display
features in a store may trigger different responses in consumers. If a company has
invested marketing communications efforts in establishing a high-quality brand
image and the product is then placed in an undesirable context (for instance, in
proximity to the brands associated with lesser quality), consumers may perceive less
brand value incorporated by Wakefield, K. L. and Jeffrey J. Inman (1993). Thus, it
may be the retailers who have ultimate control over the brand image.
The SP activities of companies could have an additional impact on the whole market
category as well. It is found that a successful price promotion did expand the
category while the promotion lasted, while having a negative long-term effect of
decreased sales in the period after the promotion. A reason for this might lie in the
fact that people tend to buy greater quantities during the promotion, and this leads to
weaker demand once the promotion has finished. Another, equally distressing theory
about the promotional impact on the category is that since SP tends to encourage
brand switching, the category does not benefit as a whole as people switch to even
lower prices.

Price sensitivity
One of the most discussed negative effects concerns consumer price sensitivity.
Findings show that SP tends to increase consumer price sensitivity, due to the
formation of reference prices. When consumers buy a product, they start to compare
the price to the reference price, as opposed to the actual one. If a consumer is used
to buying two coffees for the price of one, when the SP is removed, the actual price
of the coffee suddenly seems more expensive. However, this implies that, in order
for consumers to become too price sensitive, promotions would have to happen
frequently, since consumers do not tend to always remember prices. Naturally,
different consumers react differently to prices and SP, depending on their own
predispositions and preferences. For instance, customers loyal to a specific brand
will perhaps not switch even when presented with the most tempting offer while
others actively search for the best offer available. Promotions can, however, lead to
a greater number of people becoming offer-seekers as, Mela et al., (1997) found

3 Research Objectives 1. sales promotion initiatives taken without keeping the long term objectives of the business may dilutes the brand equity. 3. It is felt that management practices of designing and implementing promotional decisions should be well researched and rational to justify the investment on promotions. To study the sales promotion schemes preference according to various attributes.that. on the other hand. 2. which makes business organization sustainable in changing political and economic environment. To study the consumer perception towards sales promotion schemes. looking long-term. price promotions do make both loyal and non-loyal customers more sensitive to price 4. Since couple of years more and number of corporate sector companies have experienced the grave problems of deciding promotional strategy and specifically sales promotion schemes to win the customers. To study consumer preference of sales promotion schemes across demographic variables. It has been felt that large gap remain what has been accomplished and what is remaining. To understand the media preference to know the sales promotion schemes information. . Therefore the statement of the problem under the study that has been selected is “Impact of Sales Promotions on Sale of FMCG Products” (With specific reference to Retail Malls in Ahmedabad) 4.2 Statement of the Problem Professional management is essence for improving overall efficiency and effectiveness in every business. 4. Also.

Ho4: There is no significant difference between consumer’s perception and demographic variables considering sales promotion schemes. Ho2: There is no significant difference between consumer preference of cash discount and free gift as sales promotion schemes.4 Research Hypothesis Ho1: There is no significant difference between Consumer attitude towards the cash discount as a sales promotion scheme and demographic variables. company has to follow the trend of promotions to maintain the market share. . World is becoming the small village and Many MNC‘s have entered in India and other countries. Marketing paradigm is shifting from consumer satisfaction to consumer delight. Considering almost universal applications of designing the sales promotion schemes and understanding its impact on business has motivated to take the steps in the direction to study this crucial aspect of promotion management. Simultaneously. If this tool is not used strategically. Ho5: There is no media preference to know the sales promotion schemes information. competition to win consumers has been increased drastically.4. Ho6: There is no significant difference between demographic variables and sales promotion schemes preference. Enticing consumers with the various sales promotion schemes is the order of the day. Ho3: There is no significant difference between Consumer deal proneness and demographic variables.5 Motivation for the study With the growth of population and spending power of the consumer has created the opportunities and challenges for the FMCG companies in the world market. 4.

5. 5. Primary and secondary data has been collected according to the need of the study.1 Research Design A research design is a framework or blue print for conducting the research project. Sample Size: 100 Sampling Method: Convenient Sampling Method Data Type: Primary Data & Secondary Data Data Collection Tool: Structured Questionnaire Scope of Research: Ahmedabad city . For collecting primary data. The research design lays the foundation for conducting the project.5. More over important factors has been considered to measure the interested variable of the study. structured questionnaire has been prepared considering objectives of the study.2 Sampling Element Each and every individual who purchases the FMCG products in Ahmedabad city has been identified as a sampling element.3 Sampling Design & Data Collection The universe of the study consists of all retail consumers in Ahmedabad city. It details the procedures necessary for obtaining the information need to structure and/or solve research problems. Research Methodologies 5. The descriptive research design is being used to study the formulated problem.

Do you buy FMCG products from retail malls? There are 100 respondents from them 15 percentage of consumers buy FMCG products from local kirana stores. 1. The further analysis is based on the data collected from 85 responses. Data Analysis and Interpretation Questionnaire is one of the tools of the primary data collection. also they are best at offering products at low price.6. 2. so we terminate those respondents. you buy FMCG products? Most of consumers buy FMCG products from Big Bazaar as they have five retail malls in ahmedabad city. Star . From where. In this research consumer responses have collected through questionnaire.

There are four retail malls of D-Mart in ahmedabad offering products below MRP though they are not targeting consumers of Big Bazaar.Bazar is also a tough competitor of Big Bazar as its TATA holding company and only one retail mall in ahmedabad. . 3. Reliance mart and National handloom also offers great discounts. Hyper city is newly opned and having great footfalls without advertising. We also get some consumers. Relince fresh has competitve advantage on fruits and vegitables so some of comsumers also buy FMCG poducts along with fruits and vegitables. even one who spend more than 4000 rupees. How much do you spend on the purchase of FMCG products every month? Generally consumer spend maximum up to around 3000 rupees per month as there are also heavy spenders in Ahmedabad.

6.4. Do you wait for sales promotion offers by retail malls? Majority of respodents visit retail mall at the time of purchase and there is any of sales promotion offer running and there they know about other offers so they generally don’t wait for sales promotion offer. 5. During sales promotion do you purchase more than required? . Only 20 respodents agreed that they waits for sales promotion offer. Which types of sales promotion tools encourage you to buy? Generally consumer are ultimatly interested in therir benefits so every sales promotion offer little or more encourages them to buy.

and there are lots of brands available in same segments though there are 23 consumer who are loyal to their brand. it may be that if offer is once in thousands than they buy.It seems that sales promotion offers does not influnce much to the FMCG consumers but still eigtheen consumers buy products more than reqired may be for store. 7. According to you which retail mall offers best sales promotion tools? . 27 consumers purchase more than required somestimes. 8. Do you ever switch brand during sales promotion? It also prove here that consumer ultimatly interested in their own interest.

Other retail malls stand far behind but Star bazaar and D-mart give competition to big bazaar somewhat.Big Bazaar offers best offers as it promotes through newspaper and TV advertisements. 9. According to you which medium is the best to advertise sales promotion offers? According to 45 % of respondents believes that local news paper is the best way to advertise sales promotional offer. We can say that most of consumer read local .

but when time of advertisement in between programme people chance channel .1 I trust sales promotion tools 22% consumers have strong trust with all types of promotional tools offer by malls and they buy product.11% consumers fever to national news papers.19% of consumers have somewhat trust and mistrust means they are not clear. So we can say that most of consumers have trust on promotional offer provide by shopping malls 10. 10. Only 2 % and 1%consumer are disagreeing and strongly disagree with to put trust on promotional offer.news paper and impact of local news paper in city is high. Only 2% consumer fever magazine as way of advertisement for sales promotion offer. most of people see TV.2 The sales promotion tools of the supermarket understand my specific needs and wants .41% consumers is have trust on promotional offer but they are not very much strong about that.Hoardings impact also good because 29 % people believe that it is best way of advertisement of promotional offer of FMCG product. 22% consumer believe that TV is the best way for advertisement of promotion offer.

means we can say that they are ready buy FMCG product when promotional offer provide by shopping malls.Only 7 % of consumer believe that shopping malls understand his specific needs and wants means they believe that malls provide promotional offer according to his needs and wants.28% consumer agree with this question means also somewhat believe that malls provide promotional offer according to his needs and want.19% consumer are not clear and 4 %consumer . 10.3 I enjoyed shopping during Sales Promotion offers 17 % consumers are strongly agree with this statement means they are enjoy shopping during promotional offer.38%consumers are neutral means that are somewhat agree and somewhat not agree with statement.12 % consumers believe that shopping are not provide promotional offer according to his need and want.45% consumers also ready to buy during promotional offer.

10.27% consumers are not clears that what to do when promotional offer provide by shopping malls.are not enjoy shopping during sales promotional offer means they are not do shopping when offer provided by malls.12% consumers don’t like to do shopping when promotional offer given by shopping malls. 35%consumers like to do shopping when offer provide by malls.5 I get confused with Sales Promotion Offers . 10.4 I am satisfied with the FMCG products brought during sales promotion offers 11% Consumers strongly like to do Shopping during promotional offer.

8 % consumers got very much confused when promotional offer provide by shopping malls.21 % . So they have to be clear when providing promotional offers. 25 %consumers also confused that what to do when offers provide by shopping malls. Overall we can say that consumer is got confused when promotional offer provide by malls.6 I think Marketers cheats consumers through Sales Promotion Tools This question is very much important for Marketers of shopping malls. 10. 27 %consumers are neutral means they are somewhat confused.means they are clear what provide by malls and only 2 % consumer are very clear .23% consumers are not confused . only consumer strongly believe that marketers cheat them through sales promotion tools.they are not confused.

10. means they are fair and 2%consumers are strongly put trust on marketers. Only 16% . 11 Are you ready to forgo the promotional offers and buy products from companies which claim to give a part of the sales money for social causes? 38 % consumers ready to forgo promotional offer when time of buying FMCG product.7 I think Advertisements published and Actual Sales differ 10% consumer are strongly believe that sales is differ and wrong advertisement shown to him.30 % believe that such things happen. Means we can say that till consumer are emotional in India. They strongly believe that they will not be cheated when promotional offers provide to him.consumers believe that marketers cheat them through sales promotion tools.25% consumers believe that marketer are not cheat them.13% believe that marketer not doing such things to increase his sales.

34% consumer have sometime social cause is important so they no buy product to even any promotional offer given by marketers and sometimes they buy product when promotional offer provide by mall even in any social cause.from of survey 59 respondent’s age is between 18-24 . Though generally female buy more than male may be middle class housewives buy from local kirana stores and above . that is good sign for marketers to sell his product.consumer are purchase product even any social cause if any mall give them promotional offer. Gender Male female ratio in this survey is nearly 70:30.21 respodent age is 24-34 and we find five respodent whose age id more than 34. Demographic analysis Age We met most of young consumers because their frequency of visit are generally more than other and also young consumers know advertisement better. means they are ready to buy.

Because awareness of advertise and know-how is better than other.middle class prefer retail mall for daily shopping. Also now there are lots of products available in male segment. Occupation We met most of consumer who are doing business or job and student. Family Type .

So it is help to find. . Amongst them 24 and 20 respondent’s income are 20k to 30k and above 50k. Family income We have surveyed consumers in every income group. analyse and remove biasness of error.simunteneously.We surveyed about nearly same consumer of three family types.

Local news paper is the best medium to advertise sales promotion offers 9. Most of people are ready to buy socially ethical products . From our findings we came to know that consumers don’t wait for sales promotion offer 5. During sales promotion offer consumers are not buy more than required 6. Big Bazaar has highest impact in Ahmedabad FMCG market. According to our findings all types of promotional tools have same impact in the mind of consumers. Newly opened hyper-city at Alpha One mall performs very well at introductory. giving tough competition to the Big bazaar though their segment is quite different. 10. 4. 8. TATA owned Star India bazaar also have a great impact. 3. Results and Findings 1. Consumer are ready to switch brand during sales promotion’ 7.7. D-mart also offers products at below MRP. 2. Findings may be different from others. According to respondent big bazaar is providing best sales promotion offer. Generally consumer trust the sales promotion tools and products brought during these offers though company uses it may be for stock clearance but they enjoyed shopping during offers.

There are other variables besides sales promotion schemes which affect brand equity perception and consumer preferences. Also it measures the consumer preference in FMCG product categories. The study is limited to sales promotion schemes of FMCG product categories only and result may vary if study is conducted for non FMCG product categories. 5. If the same study is repeated for other industry consumer preference of sales promotion schemes may vary 3. 2. 4. The samples size is not too much to generalize the result of the study. This study is limited to Ahmedabad city only and result may differ if conducted in other regions. Evaluation is based on the primary data generated through questionnaire and accuracy of the findings entirely depends on the accuracy of such data and unbiased responses of the customers. .8. Limitations of the study 1.

As these organised retail malls are the competitors of local kirana stores though they also encourage the competition. Today. Consumers are also ready to buy social ethical products instead of discounted. And most of mall have retail mall inside. Conclusion In Ahmedabad there are people living with very low income and people with very high income. Generally consumers are ultimately interested in their own benefits and as for sellers.9. The middle class and above middle class families prefer organised retrial malls for their daily shopping as they also provide free home delivery. But the story will be different when wall-mart tesco and other big multinational retail malls will enter Indian market. Ahmedabad has more than 10 Big Shopping Malls and around 50 medium size malls. The sales promotional skims are used by both manufacturer and an organised retail malls. The sales promotional offers are widely used so whenever people go to the mall some offer is running already. Consumer believed the company and the FMCG products they buying during these offers. The skims with products are same at kirana and an organised retail mall. Lower middle class families. . Generally consumers are already loyal to the one retailer to whom he/she used to buy FMCG products daily. Now consumer becomes more aware and has access all the information though some or little these discounts encourage the idea of consumerism. middle class families and people living in city are prefer local kirana stores as it is very convenient and it’s a matter of relation and credit that the shop keeper gives. So it benefits both.

html http://taurusindia.indiamart.com/valuenotes/research .marketingteacher.thehindubusinessline.com/atds/services.ac.in/srsec319/319-24.nios.wikipedia.com/PressRelease.htm http://www.business-standard.pdf www.fmcg.html http://hubpages.org www.nl/english/promo.businesswireindia.valuenotes.Ibef.com/catalyst www.in/bw/2010_12_23_A_ www.org/wiki/Sales_promotion http://www.htm http://en.com/lesson-store/lesson-sales-promotion.com/india/news www.asp?b2mid=24770 http://www.Bibliography http://www.in/fmcg.businessworld.com/hub/consumer-sales-promotion-marketing-mix-strategy http://www.