Professional Documents
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SIP Marketing Progect
SIP Marketing Progect
SUMMER PROJECT
ON
OF
MUMBAI UNIVERSITY
(2017-18)
SUBMITTED TO,
ASANGAON
SUBMITTED BY,
(Roll no.17011)
MARKETING
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DECLARATION
I hereby declare that this dissertation titled “Sales Promotion Strategy In Retail
Industries.” submitted by me to SHIVAJIRAO S. JONDHLE INSTITUTE OF
MANAGEMENT SCIENCE & RESEARCH, MUMBAI UNIVERSITY in partial
fulfillment of requirements of MMS Programmed is bonafied work carried me under
Professors. This has not been submitted to any other University or institution for any
degree/ diploma/ certificate or published any time before.
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Certificate
This is to certify that Mr. Pandharinath Umanath Dubhashe Roll No. 17011 student of
first year Master in Management Studies has successfully completed the Summer
Internship Project, work title “Sales Promotion Strategy In Retail Industries” At in partial
fulfillment for the degree of Master in Management Studies (MMS) University of
Mumbai.
This project report is the record of authentic work carried out during the academic year
2016-17.
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ACKNOWLEDGEMENT
Apart from our efforts, the success of this project depends largely on the
encouragement and guidelines provided to me Mr. Bhojraj Shewale sir from time to time.
We take this opportunity to express our gratitude to the person who has been instrumental
in the successful completion of this project. We would like to shower our greatest
appreciation to Shivajirao S. Jondhale Institute of Management, Science & Research
under the guidance of Prof. Bhojraj Shewale Sir, we felt motivated and encouraged to
undertake this project.
Without her encouragement and guidance this project would not have
materialized. We can’t say thank you enough for her tremendous support and help. We
are also grateful for every small effort they have put in to see to it that our project is a
grand success.
We would also like to thank, all those people who have directly or indirectly
contributed to the successful completion of this project.
Thanking you all, for your kind anticipation in our project.
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INDEX
14 Data Collection 27
15 Conclusion 29
16 Questionnaires 30
17 Bibliography 35
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INTRODUCTION
Every businessman wants to increase the sale of goods that he deals in. He can adopt
several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour
to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc.
You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc.
offered free with some products.
There are also exchange offers, like in exchange of existing model of television you can
get a new model at a reduced price. You may have also observed in your neighbouring
markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and
many other schemes to attract customers to buy certain products. All these are incentives
offered by manufacturers or dealers to increase the sale of their goods. These incentives
may be in the form of free samples, gifts, discount coupons, demonstrations, shows,
contests etc. All these measures normally motivate the customers to buy more and thus, it
increases sales of the product. This approach of selling goods is known as “Sales
Promotion”.
You have learnt about advertising and personal selling in the earlier lessons. Personal
selling involves face-to-face contact with specific individuals, while advertising is
directed towards a large number of potential customers. They also help in increasing
sales of goods. Thus, advertising can be used as means of communication to inform
potential customers about the incentives offered for sales promotion. Personal selling can
as well include communication of the incentives to individual customers. But, sales
promotion differs from advertising and personal selling in terms of its approach and
technique. Sales promotion adopts short term, non-recurring methods to boost up sales in
different ways. These offers are not available to the customers throughout the year.
During festivals, end of the seasons, year ending and some other occasions these schemes
are generally found in the market.
Thus, sales promotion consists of all activities other than advertising and personal selling
that help to increase sales of a particular commodity.
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DEFINATION:-
By 2017 organized retail sector in India is expected in triple its size. The food & grocery
retail sector is expected to multiply five times in the same time frame. The market size of
the Indian retail industry is about US $312 billon.
GEOGRAPHICAL DISTRIBUTION:
The natural arrangement and apportionment of the various frames’ of animals and plants
in the different regions and localities of the earth.In all the major cities in the country.
With growing market demand, the industry is expected to grow at pace of 25-30%
annually.
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MARKET CAPITALIZATION:
In 2016 the retail trade account for 12% of the country`s GDP. The present value of the
Indian retail market is estimated to be around Rs. 1200, 000cr. ( $270 billon) and the
annual growth rate is 5.7%.
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Based on the data collected from the present survey, eight activities were identified as
the components of sales promotional strategies performed by the small scale industrial
units, namely,
(i) advertising
(iv) packaging
An account of these sales promotional strategies of the sample small scale industrial
units of Virudhunagar District is given in the following pages.
I. ADVERTISING
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Modern advertising was created with the innovative techniques introduced with
tobacco advertising in the 1920s, most significantly with the campaigns of Edward
Bernays, which is often considered the founder of modern Madison Avenue advertising.
In 2010, spending on advertising was estimated at $142.5 billion in the United States and
internationally, the largest ("big four") advertising conglomerates are Interpublic,
Omnicom, Publicis, and WPP.
Yes, advertising plays very important role for the producers and the sellers of the
products, because
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Advertising helps creating goodwill for the company and gains customer
loyalty after reaching a mature age.
The demand for the product keeps on coming with the help of advertising and
demand and supply become a never ending process.
Advertising helps educating people. There are some social issues also
which advertising deals with like child labour, liquor consumption, girl child
killing, smoking, family planning, education, etc. Thus, advertising plays a very
important role in society.
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Increasing Competition
Advertising, personal selling and other methods of promotion produce slower sales
response compared to sales promotion. Sales promotions are mostly for short
duration, for a specified period, leading to a sense of urgency in consumers to buy
now. This creates an immediate positive impact on sales. With careful planning, it
would not be difficult to measure the impact on sales volume and profit, and see the
consequences of running the promotion even on weekly or daily basis.
In many product categories, there is a proliferation of brands; many of them are line
extensions and me-too brands. Most brands are being perceived by consumers to be
more or less similar within a given price range because of the inability of
manufacturers to develop truly differentiated products. Under these circumstances,
advertising messages are unable to strongly influence the consumers’ perceptions
and create brand franchise. As a result of these perceptions of similarity among
brands, marketers have no way but to compete on the basis of extra benefit offered
through sales promotion. Competing companies struggle to capture market share by
using every tool likely to bring sales success.
• Consumer Acceptance
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Woodland has a scheme of upto 50% off on Woodland shoes and apparel.
With the entry of many different brands of consumer durable products in the same
product category, consumers anticipate that the prices of durable goods will come
down. This encourages them to postpone their purchases. To speed up the purchase
method. Consumers evaluate the incentives associated with their purchase decision
and are motivated to act now, rather than wait for the anticipated decrease in price.
The marketers should ensure that the extra benefit is attractive enough to create a
sense of urgency in consumers.
Samsung offers upto Rs. 8,000 off on exchanging an old refrigerator for a new
Samsung refrigerator.
All the advertising media have become quite expensive. Audio-visual medium,
which is considered as the most effective for short-duration ads, may cost in excess
of Rs. 1 lakh for a 10 second exposure during prime time. In many cases, consumers
have reached a point of boredom due to excessive advertising on TV. Some
consumers even consider advertising as an intrusion into their privacy, leading to
zapping (surfing channels). Firms with small budgets cannot compete with big
companies which spend huge sums of money on advertising. For these small budget
firms, sales promotion is a more cost-effective promotion method to produce sales
results.
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To increase the sale of any product manufactures or producers adopt different measures
like sample, gift, bonus, and many more. These are known as tools or techniques or
methods of sales promotion. Let us know more about some of the commonly used tools
of sales promotion.
You might have received free samples of shampoo, washing powder, coffee powder,
etc. while purchasing various items from the market. Sometimes these free samples
are also distributed by the shopkeeper even without purhasing any item from his
shop. These are distributed to attract consumers to try out a new product and thereby
create new customers. Some businessmen distribute samples among selected
persons in order to popularize the product. For example, in the case of medicine free
samples are distributed among physicians, in the case of textbooks, specimen copies
are distributed among teachers.
A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams
of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus
given free with the purchase of a product. They are effective in inducing consumers
to buy a particular product. This is also useful for encouraging and rewarding
existing customers.
It refers to offering exchange of old product for a new product at a price less than
the original price of the product. This is useful for drawing attention to product
improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just
by paying Rs.500’ or ‘exchange your black and white television with a colour
television’ are various popular examples of exchange scheme.
Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off
on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea,
Rs. 1000 off on cooler’ etc. are some of the common schemes. This type of scheme
is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
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(v) Coupons:
In case of some specific products trading stamps are distributed among the
customers according to the value of their purchase. The customers are required to
collect these stamps of sufficient value within a particular period in order to avail of
some benefits. This tool induces customers to buy that product more frequently to
collect the stamps of required value.
To induce the customer to buy a particular product ‘scratch and win’ scheme is also
offered. Under this scheme a customer scratch a specific marked area on the
package of the product and gets the benefit according to the message written there.
In this way customers may get some item free as mentioned on the marked area or
may avail of price-off, or sometimes visit different places on special tour arranged
by the manufacturers.
Under this scheme customers are given assurance that full value of the product will
be returned to them if they are not satisfied after using the product. This creates
confidence among the customers with regard to the quality of the product. This
technique is particularly useful while introducing new products in the market.
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LOCAL COMPANIES:
a) Pantaloon retails,Indias largest listed retailer and part of the future group, run
apparel and electronic store under its lifestyle brands central, E-Zone,
Hometown, Future also operates the big bazaar hyper market chain &
supermarket brand food bazaar.
b) Second-Ranked Reliance Retail is a part of Reliance Industries, Indias largest
listed group head by Mukesh Ambani , India`s richest man.
c) Shoppers Stop, part of the K. Raheja group which operate in real estate.
d) The sprawling Tata group operates 106 stores across formats and run the west
side range of apparel stores, under star bazaar.
a) Wall-mart store inc has a cash and carry operation with Indian partner Bharti
Enterprises, the parent of leading mobile provide Bharti Airtel, and will add new
cash-and-carry store this year to its 17 existing stores.
b) Tesco, Britten largest retailer, has a tai-up with Trend star bazaar hypermarket
chain. Tesco is also looking to enter the wholesale market to through the tie-up.
c) Germany`s Metro AG operate 11 wholesale store in India. Company plan to
open to 5 cash-and-carry every year.
d) Carrefour has 2 cash-and-carry stores in India. The world no. 2 retailer has
been seeking a local partner to enter the hyper of super market store.
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OBJECTIVE OF STUDY
To identify the effect of sales promotion strategy help attract new customer.
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LIMITATION OF STUDY
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LITERATURE REVIEW
DEFINITION
A typical sales promotion budget covers almost 70% of the total consumer sales
promotional budget. It is also consider as a brand differentiator by many big player like
coca-cola, Pepsi, Heinz & many more. For many business experts & academics, sales
promotion is regarded typical marketing technique that adds value to a product in order to
achieve specific marketing goal. The primary purpose of sales promotion is to offer
customer to take chance of winning a price or offering some extra product with the same
price.
Sales promotion and marketing are inter-related but not have the similar purpose. It is
advertising which make a platform for sales promotion where customer can see the direct
added value of buying your product. On the other hand, advertising is an intangible
promotion of your products to send the marketing message to the customer base.
The main advantages associated with promotional sales are-an easy way to learn
customer response and its work fast. It is an inexpensive marketing technique. Sales
promotion does not always bring positive impact to business, sometime this type of
promotion cause negative brand impact to customer mind in the long-term. So,
promotional camping needs to be designed taking in to account the consequences of
losing brand value. A PIMS study of 1991 suggest that overuse of sales promotion bring
low ROI, almost 15% less, in comparison to balanced & calculated promotional offer. It
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is advisable not to use sales promotion as a tool of brand imaging. Advertising is always
the best way as far branding concerned. So, marketers need to be care full & must
understand the difference between the sales promotion and advertising.
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FINAL WORDS
A successful strategy will usually have elements of both the push and pull promotional
methods. If you are starting a new business and intend to sell a product through retailers,
you'll almost certainly need to persuade outlets to purchase and stock your product.
You'll also need to raise brand awareness and start building valuable word of mouth
referrals. If you have designed a product around the customer and have considered all
elements of the marketing mix, both of these aspects should be achievable.
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There are three types of sales promotion strategies: Push, Pull, or a combination of the
two.
A push strategy involves convincing trade intermediary channel members to "push" the
product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion objectives are
to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers. Typical tactics employed in
push strategy are: allowances, buy-back guarantees, free trials, contests, specialty
advertising items, discounts, displays, and premiums.
A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications
efforts on consumers in the hope that it stimulates interest and demand for the product at
the end-user level. This strategy is often employed if distributors are reluctant to carry a
product because it gets as many consumers as possible to go to retail outlets and request
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the product, thus pulling it through the channel. Consumer-promotion objectives are to
entice consumers to try a new product, lure customers away from competitors’ products,
get consumers to "load up" on a mature product, hold & reward loyal customers, and
build consumer relationships. Typical tactics employed in pull strategy are: samples,
coupons, cash refunds and rebates, premiums, advertising specialties, loyalty
programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)
displays.
Car dealers often provide a good example of a combination strategy. If you pay attention
to car dealers' advertising, you will often hear them speak of cash-back offers and dealer
incentives.
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(call) or sale (put) by the option seller of a specified number of bonds, currency units,
index units, or shares of stock at a fixed price or rate called the strike price. Many options
are settled for cash equal to the difference between the aggregate spot price and the
aggregate strike price rather than by delivery of the underlying. In the U.S. and many
other countries, stock options are usually written for units of 100 shares. Other units of
underlying coverage are standard in other option markets. Options are ordinarily issued
for periods of less than one year, but longer-term options are increasingly common. (2)
Any financial contract that changes in value like an option (asymmetrically), even if the
terms of the contract do not state the price relationship in terms of a right or privilege or
in other language usually associated with options.
Simple diagram explaining some example differences between a push and pull
promotional strategy
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RESEARCH METHODOLOGY
The system of collecting data for research project is known as research methodology. The
data may be collected for either theoretical or practical research for example management
research may be strategically conceptualized along with operational planning method and
change management. Some important factors in research methodology include validity of
research data, ethics and the reliability of measures most of your work in finish by the
time you, finish the analysis of your data.
Formulation of research question along with sampling weather probable or non probable
is followed by measurement that includes surveys and scaling. This is followed by
research design, which may be either experimental or quasi-experimental.the last two
stage are data analysis & finally writing the research paper, which is organized carefully
into graphs and tables so that only important relevant data is shown.
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DATA COLLECTION:
There are two mains source of collecting data. These are are:-
PRIMARY DATA:
Primary data has been collected through questionnaires. The data has been
collected from first-hand-experience is known as primary data. Primary
data has not been published yet and is more reliable, authentic and
objective. Primary data has not been changed or altered by human beings,
therefore its validity is greater than secondary data.
Primary data has been collected by visiting big bazaar at thane region
SECONDERY DATA:
Data collected form a source that has already been published in any form
is called as secondary data. The review of literature in many research is
based on secondary data. Mostly from book, journals and periodicals.Data
has also been collected through internet using various website such as:-
Survey Method:
Source of Data:
PRIMRY DATA:-
Analysis of the Marketing by personally interview of retailer & customer.
To collect information from customer & sharing the problem phase by them.
Personally analysis the working of their retail sales promotion strategy.
SECONDERY DATA:-
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CONCLUSION
We have noted that these kind of promotional tools are useful for short term
incresing in sales and to induced first trail. These trail of promotional scheme
should be consistent and change for time to time depending upon seasons &
competitor`s schemes.
With the incresing numbers of supermarkets, the brand package goods work as
silence sales person. So in such store, sales promotion plays a more effective role in
stimulating customer demands.
The proper use of sales promotion tools helps to achieve the objective of
organization.
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QUESTIONNAIRES:
Q13. Does the Displays and Promotional offers informed in the store attracts you?
a. Yes
b. No
Q17. Does the Sales Promotion activities of Big Bazaar made you to visit Big Bazaar
again?
a. Yes
b. No
Q18. Your overall shopping Experience due to offers and discounts in Big Bazaar?
a. Good
b. Average
c. Poor
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Customer oriented:
We would be thankful if you share some of your valuable opinion regarding the
following questionnaires.
AGE: OCCUATION:
c) Yes.
d) No.
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a) Average
b) Good
c) Excellent.
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Retailer oriented:
We would be thankful if you share some of your valuable opinion regarding the
following questionnaires.
AGE: OCCUATION:
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BIBLIOGRAPHY
BOOKS
C.R.Kothari “research methodology methods & tequnique”. New age entemational (p)
ltd. Publishers 2nd edition, page no 95, 96, 102.
INTERNET:
http://www.ril.com/htm/aboutus/about_brands.html.
www.big-bazaar.com.
Study_ of_ consumer_ oriented_ sales_ promotion_ in_ FMCG. Zip- zip archive,
unpacked size 574, 564 bytes.
Kumar, v. 2010. Promotional strategy of big bazaar & managing the image of big
bazaar in retailing (online) available at;
http/;//www. Skyline College. Com/ blog/ dissertation/ promotional- strategy- of-
big bazaar- maintaining- the- image- in- retailing (accessed 19 march 2011).
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