Professional Documents
Culture Documents
CHAPTER-I
INTRODUCTION
Similarly the terms sales promotion cannot be taken to mean what is commonly does.
Sales promotion is only a part of the promotion. Basically promotion is an "exercise" in
information persecution and influence. Promotion has come to mean the overall co-
ordination of advertising selling, publicity and public relations. Promotion is a helping
function designed to make all other marketing activities more effective and efficient. But
sales promotion as such helps only the selling activity still, there exit same difference of
opinion on the real connection of the term sales promotion.
Sales promotion is one of the important elements of the marketing mix for most
marketing programmes. Sales promotion activities are indispensable to promote
incremental sales, to create brand awareness, as well as build brand equity among the
consumers. As sales promotion do incur substantial cost, it will be beneficial if the
effectiveness of a sales promotion can be maximized through identifying the profitable
segments in the market and target them with the appropriately designed promotion tools
which meet their needs. The effectiveness of the right sales promotion tool for the right
product on the right target market will directly impact on sales performance. Consumers
are making purchase decision daily which are often influenced by various factors; the
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product price is often the most significant consideration in any purchase. One of the
common ways for marketers to compete is by making coupons offers (a price-oriented
promotion) available to consumers (Huff & Alden, 1999).
Sales promotion is concerned with the creation, application and dissemination of material
and techniques that supplement advertising and personal selling. Sales promotion makes
use of direct mail, catalogues, trade shows, sales contests, premiums, samples, windows
displays and other aids. Its purpose is to increase the desire of salesman, distributors and
dealers to sell a certain brand to make consumers more eager to buy that brand. Personal
selling and advertising do include prospects to make these decisions. Sale promotion
provides an extra stimulus.
The success of a shopping mall or retail center depends on a million different factors.
What does the competition look like? How easily can people reach your location? Which
brands and stores do you carry? How do you fit in to the local economy? This study deals
with the sales promotion used by Bhat-Bhateni Biratnagar to attract customer.
Bhat-Bhateni Biratnagar used different sales promotional tools such as coupons, discount
on special festival season and good parking facility. It also uses different advertisement
media such as television advertisement for its promotion.
Mr. and Mrs. Gurung with the help of one staff started a single shutter grocery shop of
120 sq. feet in 1984 having initial investment of Rs. 35,000 with daily sales of Npr.
2000.00.Born in Khotang, Nepal in 1958, Son of a farmer with six siblings, Mr. Min B.
Gurung had a successful banking career after completing of his university education
(Master in Economics). He had the vision and courage to leave this job to lead Bhat-
Bhateni in a full-time capacity following the expansion to a two floor (3,000 sq. ft.)
supermarket in 1992 having investment of Npr. 2500000.00 with daily sales of Npr.
50000.00 and 11 dedicated staffs.
This ordinary ‘single shutter’ store has since transformed to become a leading
supermarket chains in Nepal. His drive to offer quality products at reasonable price to
customer has made an impressive growth history since 1984 A.D.Today more than
50,000 people visit the stores daily with over 4,500 combined store staff with the daily
sales of Aprox. Npr. 3.5 Crore (USD 350,000.00), consistent merchandising and assured
customer service is guaranteed.
Bhat-Bhateni has been a successful family business since the establishment in 1984 and
has been the largest tax payer in the retail sector for the last five consecutive years in
Nepal . There are currently Fifteen sores conveniently located in central Kathmandu,
Lalitpur, Pokhara, Chitwan, Dharan and Butwal.
Mr. Min Bahadur Gurung has truly visionary long-term goals and aim to establish farmer
co-operatives in Nepal which is estimated to give employment to 50,000 people and is
likely to position Bhat-Bhateni as the largest corporate tax payer in the country. An
ambitious expansion plan will see many new stores in Kathmandu and across the country
over the next few years. Bhat-Bhateni story has only just started. It is Mr. Gurung’s
dream and ambition to make the Bhat-Bhateni Group a truly professional multinational
corporation.
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Much of Bhat-Bhateni’s success can be subscribed to the founders Mr. Min Bahadur
Gurung and family, vision for continuous improvements and growth in order to support
local development with current employment of over 4,500 staffs, including several from
families of political martyrs and indigenous people. The commitment to give back to the
local community is underlined by the funding of Npr. 140 million (USD 1750000.00) to
the entire emergency wing of the Teaching Hospital in Maharajgunj, Kathmandu. The
Company has a rich history of corporate social responsibility, a history that has grown
and evolved to meet the complexities of today’s business world and the challenges of a
global society. Social responsibility is a way of life at Bhat-Bhateni.Bhat-Bhateni is a
leading supermarket and departmental store chain in Nepal. With an impressive growth
history Since 1984, Bhat-Bhateni has developed a reputation for continuous
improvements, every day low price and a product offer second to none. There are
currently Fifteen stores conveniently located in central Kathmandu, Lalitpur, Pokhara,
Chitwan, Dharan , Butwal and Biratnagar
Bhatbhateni Supermarket, one of the biggest names in Nepal, opened a new branch in
Biratnagar on the 2075 B.S. Nepali New Year. Not much time has passed, but
Bhatbhateni reports that they have been doing transactions of Rs. 10 million every day on
average. The manager of the branch, Binod Bhattarai, says that the store has recorded a
transaction of Rs 100 million in just 10 days. This is quite a big news for Bhat-Bhateni.
And these numbers are quite surprising as well. The store has been providing a 10%
discount on the occasion of its opening. Most of the customers in the store are
from Dharan, Itahari, Urlabari, Damak, Lahan, Rajbiraj and Jogbani
All stores are open from 7:30am to 8:30pm, 7 days per week and offer a full range of
150,000 products from 1000 local and international suppliers.More than 50,000 people
visit the stores daily and benefit from a 7-day return/exchange policy. With over 4,500
combined store staff, consistent merchandising and assured customer service is
guaranteed. Bhat-Bhateni Group operates as a private limited company. It has been a
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successful family business since the establishment in 1984 and has been the largest tax
payer in the retail sector since 2008 A.D.
1. This study is mainly based on primary sources of data collected from the
respondents only.
2. This study cover the analysis of Bhat-Bhateni Super Store, Biratnagar only.
3. This study cover the limited number of respondent only.
Chapter-III: Methodology
In this chapter, research design, data collection and procedure, period covered, nature
scope and sources of the data, data gathering instrument and statistical tools and it also
provides data presentation technique.
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Chapter-IV: Results
The fourth chapter is the data presentation and analysis deals with the issued identified in
the introduction phase. What has been analyzed, how it has been analyzed and what has
been found are the concern of this chapter.
Chapter-V: Conclusion
The fifth chapter provides summary conclusion and recommendations. In the summary,
the present study is discussed briefly besides. At the end bibliography, questionnaire and
appendices are attached.
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CHAPTERE –II
REVIEW OF LITERATURE
Promotion Variables:
(a) Personal Selling:
It is oral or face-to-face communication. It is interaction between marketer and customer
where the messages can be tailor-made according to the characteristics of the product and
the customer and immediate feedback is also possible.
(b) Advertising
It is non personal method of communicating messages regarding products or services to
general public in order to inform and persuade them so that they develop favorable
attitude towards the products. Because of the low cost per message, it is largely used to
develop initial product awareness or acceptance.
A successful organized retailer predicts consumer demand and reduce inventory holding
thereby saving cost. Presently Retailers are offering newer service dimensions and
include entertainment factors to create unique shopping experiences for the customers to
gain better image of the mall. Competitive Image of shopping mall from others is a
critical component today’s mall management.
Bhat-Bhateni takes its goods from lots of suppliers and dealers. Currently there are about
1200 suppliers goods to Bhat-Bhateni. 90% of the suppliers are local suppliers and
remaining deal outside from the country. The payment method is “sales and Pay” method
which is suppliers get their payment on certain interval of times as per his goods in the
store. The payment here is also done through the bank account on standard Chartered
Bank. All those transactions are managed by the head office of Bhat-Bhateni, Naxal.
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The store is basically made for the customer. Availability of huge number of variety of
products one roof and one store is always convenient for anyone. But besides, it also
provides other facilities to the customers.
The Bhat-Bhateni started the membership about 3 years ago. A member of Bhat-Bhateni
supermarket get a card and on purchase of every NRs.500 worth goods, customer get 1
points in his account. 1 point is equivalent to NRs. 6. There are currently around 8000
active members of Bhat-Bhateni supermarket.
Bhat-Bhateni also has an online store, the payment should be cash on delivery and/or
online payment is managed by e-Sewa.
On purchase of goods above NRs.15000 the Bhat-Bhateni Shopping Malls provide a free
home delivery to the customer. The Bhat-Bhateni Super Market has its own automobiles
for that purpose which is financed by Nepal Investment Bank.
The word perception comes from the Latin meaning receiving collection &action of
taking a possession. Apprehension with the mind or sense It is a method of studying
perception is essentially biological or physiological approaches though psychological
approaches though the philosophy of mind and in empiricist epistemology. So it is
important to understand the customers’ mind about the shopping malls is to make better
policy decision regarding mall management. Outcome this, the researcher chosen to study
how customers’ perceived the promotional factors in a mall such as Artistic design,
entertainment, service offered in mall, security aspects and image.
Consumer has varied perceptions, attitude, memories and views of stores and business,
which they use as a mental guide when choosing malls. Perception of value is subjective
since different customers from different cultures and different time seem to evaluate
differently. Sadarchar, (2014) found that consumer perception it created in the mind of
the consumer as a result of brand personality and the customer value triad; perceived
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price, perceived service and perceived quality which would have a relationship with the
amount of purchase from retail shop.
Customer perception plays a vital role in a company’s ability to attract new customers
and to retain existing customers. The good news is that companies have the ability to
control many of the factors that build an individual’s perception of the company/brand.
The formal definition of customer perception is, “A marketing concept that encompasses
a customer’s impression, awareness and/or consciousness about a company or its
offerings.” To put it simply, customer perception is what your customers and potential
customers think of your organization. This perception directly impacts the attraction of
new customers and the capacity to maintain good relationships with current customers.
Consumers want good quality, but they also want to know they are getting good value.
That value isn’t just judged by the product or service they are purchasing, but by the
availability and usability of the customer service that supports it.
It’s just not enough anymore to have brand recognition, consumers want to feel good
about a brand and company. They want to do business with civic-minded corporations
with positive world views.
The Retail Industry is the sector of economy which is consisted of individuals, stores,
commercial complexes, agencies, companies, and organizations, etc., involved in the
business of selling or merchandizing diverse finished products or goods to the end-user
consumers directly and indirectly. Goods and products of the retail industry or sector are
the finished final objects/products of all sectors of commerce and economy of a country.
1. Marketing orientation:
Retailing is a dynamic industry. It keeps growing by moving retail operations into
new markets. Markets are ever changing and characterized by risk and threat.
Retail marketing therefore, requires different types of decisions to be made in the
complexity of the situations.
2. Multi-channel retailing:
Retailers act as a connecting link between the producers/ wholesalers and
customers. Their scale of operations is tilted more to serve sophisticated
consumers. Recently, the impact of e-retailing has received considerable attention.
the need of his customers. He must purchase only in quantities enough to meet the
demands of his customers.
3. Selling:
The ultimate purpose of retailing business is to sell these products to the consumers.
Though a retailer is sometimes referred to as buying agent of consumers, producers and
manufacturers regard retailer as a means of dispersing goods to the market and drawing
income into their hands so that they can continue their business of production.
4. Assumption of Risk:
The retailer has to bear the risk of physical deterioration of goods and fall in value. A
retailer has to stock goods in anticipation of demand from his customers. This stock must
always be sufficient to meet any demand from the customers. This fact involves risk to
the extent of the stocks held by any retailer. Firstly, the products stored are subject to the
usual risks of flood and other natural calamities. Secondly, there are the risks of flood and
other natural calamities. Secondly, there are the risks of spoilage and deterioration due to
the very nature of goods. Then there is the risk of change in fashion. Fickle mindedness
of the consumers and human tendency to like change in life together make loss of value
through change in style and fashion - a very real risk to a retail trader.
6. Financing:
Often retailers have to grant credit to consumers. Credit sale in effect means facilitating
the flow of products through the marketing channel to its ultimate goal. Thus retailers
contribute in financing the marketing process.
8. Advertising:
Retailers display goods in their stores.
selling techniques to realize the sale. Take for example selling shoes, which always
requires a personal touch from the retailer.
B. Services to Customers
1. Convenience:
Retailers overcome the barrier of place, and allow the consumers to buy all their
products from the local market near their house. Consumers also do not have to
worry about sourcing the products they require because the retailers perform this
function for them. So if a consumer in Chennai, wants to buy a good manufactured
in Mumbai, he/she only need to visit their local retail store.
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2. Assured Availability:
A consumer also does not have to bother with buying the goods in bulk. The can
buy them in individual nits as and when required. The retail store will make certain
that the product is available when the need for it arises. There is no worry about
storage or warehousing as such for the consumer.
3. Variety:
Another important service retailers provide to consumers is that they provide them
with a lot of options. The variety offered enables the consumer to make the best
decision for themselves, after having reviewed all the options.
2. Physical facilities
It is said that there are three keys to retail success- location, location, and
location. The ultimate success of retail store is governed by favourable
location which alone can assure sustained prosperity. Exterior and interior
appearances and good layout also play an important role in the success of
retail store.
3. Price
Appropriate price strategy can have the greatest market appeal, particularly in
inflation. Low price with reasonable quality and due service can work
wonders in retail trade. High price and high service demand skilled and highly
motivated sales people. Lower price and limited service demand control over
marketing expenses as gross margins are small.
4. Promotion
Unique advantages of promotional campaigns explain considerable success in
retailing. Retailing is the toughest job in the channel of distribution since the
product has to cross the three feet sales counter to reach the customer. If the
three feet are not crossed (with the help of sales promotion, e.g., point-of-
sale/purchase display), all other sales efforts are useless. Active co-operation
between manufacturer and retailer in promotion-mix can guarantee flourishing
sale, assuming that the product or service is intrinsically sound and price is
quite reasonable.
5. Buying
A retailer can acquire highly desirable product assortment, indicating good
values to his customers, through shrewd buying practices and sound decision-
making ability. He should act as expert buying agent on behalf of his
customer. Intelligent buying decisions yield rich dividends in retail trade. Acid
test of retail success is consumers’ satisfaction, i.e., emphasis on the sale of
want-satisfying utilities only.
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6. Services
Retailers give non-price competition essentially through personalised services.
Prompt and courteous service, quality assurance, sale on approval, money-
back guarantee, service after sale, free home-delivery, grant of credit, securing
goods to satisfy individual taste and liking, offer of expert advice to customer,
and comfort and convenience in the store — all these are welcome by
customers and their patronage goes to such retailers who aim at securing
profits through service.
The retailer must follow the policy illustrated by such quotations, e.g., ‘The
customer is always right’, ‘it pays to be customer-minded and the customer is
king/ queen.’ ‘He who serves best will profit most.’ These quotations
emphasise the concept of service, not profits, as the chief objective of the
seller in the marketplace. Most customers prefer warm and friendly
atmosphere.
7. Efficient Management
Better planning, organisation, and control can offer efficient retail operations.
Proper selection, training, remuneration, and motivation of sales force will
also assure higher efficiency. If a retailer plans his inventories in detail, buys
and sells according to plan, at the end of the year he will have his
predetermined profits.
Information provided to the customer at this stage helps them in making purchase
decisions regarding the product. Often, there is substantial cost associated with
promotional activities. But since the result is often an increase in sales or customer
loyalty, there is thought to be long term return on this investment. There are many ends
that a company may try to reach through a promotion including but not limited to an
increase in sales, acceptance of new products, brand equity creation and brand
positioning, addressing competitor actions and rebranding.
The team tasked with these activities will begin by understanding the dynamics of the
target audience and deciding which modes of promotion are likely to help meet targets.
Once the channel is decided, information from other elements of the mix is incorporated
to ensure that the message sent corresponds to the actual product features, benefits and
user experience. None of the elements of the marketing mix work in isolation. Instead a
unified body of information acts as the source for all activities within these 4P’s. The
available information is filtered to include those areas which will be most relevant to the
target audience.
Any promotional activity is usually designed with a specific target audience in mind. The
activity is therefore created using messages, cues and information that they will respond
to. Realistically, the major portion of any promotional budget is aimed at this specific
targeted audience. However, there may be important fringe groups who may have an
influence over the intended target or stake in the product. Some of these fringe groups
may include:
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1. The Actual Audience – These are the current customers of the product as well as
former customers and any potential new customers. The activity is created for these
people specifically.
5. Sales Promotions – These are usually short term strategic activities which aim to
encourage a surge in sales. These could be ‘buy one get one free’ options, seasonal
discounts, contests, samples or even special coupons with expiration dates.
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Whenever a company sets out to design its promotional mix, it needs to consider the
following points:
2. Nature of the Product – If a product is not new in its usage or function, there
may be less need for information and more focus on brand equity creation as well as on
emotional aspects of the product.
3. The Allocated and Available Budget – A certain total budget is set for
promotional activities and these then need to be designed and executed within these
constraints.
5. Target Market Composition – The people who make up the target market need
to be considered before committing to a promotional mix. If a market is not tech savvy,
then more traditional means may need to be employed. Conversely, an internet generation
used to instant gratification may need to be provided more focused and targeted
messages.
A company may use different strategies to promote its products. These can be broadly
categorized as push and pull strategies. Both strategies differ in how the customer is
approached.
1. Push strategies
As the name indicates, this is when the product is taken to the customer by the company.
This is mostly used when the product is an impulse purchase or if the company has an
established relationship with the customer base. Companies may sell directly from their
showrooms or at tradeshows etc. Essentially, there is less need to create an advertising buzz
and more to make the product readily available at retail outlets and showrooms. Push
marketing may focus primarily on short term sales.
2. Pull strategies
In the opposite approach, there is an attempt to pull customers towards the brand or
product. Through mass media campaigns to sales promotions and personal references, a
company attempts to create brand loyalty and attractiveness. Pull strategies may attempt to
focus primarily on long term brand loyalty then high sales in the short term. A lot of media
hype and mass campaigns are required to create sufficient interest and encourage customers
to seek out the product on their own.
2.3.3.Sales promotion
Sales promotion implies a wide variety of promotional activities. In the current marketing
practices, the role of sales promotion has increased tremendously. Companies spare and
spend millions of rupees to arrest consumer attention toward products and to arouse
purchase interest. Sales promotional efforts also improve firm’s competitive position. Such
efforts seem inevitable in today’s marketing situation. It can also reduce the degree of
consumer dissatisfaction. Nowadays, sales promotional efforts are undertaken for variety of
purposes. It is among the most critical and expensive marketing decisions.
Sales promotion offers a direct inducement to act by providing extra worth over and above
what is built into the product at its normal price. These temporary inducements are offered
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usually at a time and place where the buying decision is made. Not only are sales
promotions very common in the current competitive market conditions, they are increasing
at a fast pace. These promotions are direct inducements. In spite of the directness, sales
promotions are fairly complicated and a rich tool of marketing with innumerable creative
possibilities limited only by the imagination of promotion planners. Sales promotion is
often referred to by the names of ‘extra purchase value’ and ‘below-the-line selling’.
Today we find companies in almost all sectors offering some sort of a promotion scheme.
These sectors range from automobiles to beverages, from financial services to foods, from
household durables to services, from household products to business products, from
personal care to textiles and apparel. (Barron, 2003).
In recent years, sales promotion has been used widely to supplement and coordinate
advertising and personal selling efforts. Various sales promotion tools such as free samples,
premium on sale, prize contests, dealer incentives, coupons and gifts, etc., are being used to
stimulate market demand for products of daily use. The basic purpose is to stimulate on the
spot buying through short term and non-recurring incentives.
Sales promotion has been increasing in popularity as a promotional tool. Marketers are
using it aggressively. Sales promotion refers to short-term incentives to stimulate demand.
It is used to create a stronger and quicker purchase response. It can be directed at
consumers, middlemen and sales personnel. It supplements advertising and facilitates
personal selling. Sales promotion is seen as temporary incentives to encourage the trail or
use of a product or service. These promotions may include short-term price reduction,
premium (free gift with purchase) coupons package, cent-off and price deal and refunds.
Kotler& Keller (2006) further more outlined the benefits of sales promotion as gain
attention and lead the consumer communication to the product. Incorporate some
concession, inducement or contribution that gives value to the consumer (incentive). Sales
promotion includes a distinct invitation to engage in the transaction (invitation). Sale
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promotion in general can be classified into two types: Price promotion and non-price
promotion. Price promotion can gain some attention from consumer through short-term
financial offering of a brand.
Special publicity.
In the promises of the whole seller or the retailer the products sales personnel will
conduct special demonstration for the company‘s product. A personal demonstration is
good to introduce a new product at its peculiar advantage can be high lightened and the
consumer‘s doubt clear. It can be used to stimulated an old product. A good
demonstration with a great dealer of action will draw heavy crowds in to the store and
will attract attention to the product.
(a) Coupon
These are given directly to the consumer these coupons are in most cases kept inside the
package. The consumers many receive a price reduction of the stated values of the
coupon at the time of purchase. The retailer receives reimbursement for the value of the
coupon form the manufacturer. Coupons act as a short run stimulus to the sale of the
product, since they are directly tied with the purchase of the item. They encourage the
retailer to stock the product.
What is important is that a coupon offer does not spoil the named price of the brand nor
does it UN pair the margin of the dealers. But it is not easy to measure the effectiveness
of a coupon offer. One over knows how many customer would have bought the product
without the incentive. It is also difficult to find out how many customers were held after
the coupon offer expired.
This offer is intended to stimulate the sales during a slump season. In this method the
customer is offered a reduction from the printed price list. It is also used when a
substitute for competing product enters the market.
Many experts on sales promotion fed that ‗Off Schemes‘ are among the weaker and less
desirable methods of promotion. These can be trade resentment particularly when the
retailer raises the price to retain his margin. Secondly that is not conductive to building
up brand loyalty. Consumers may simply shift to the products that offer this scheme.
(c)Schemes
In the hope of converting a prospect into a customer a sample (Some quantity of the
product) may be given. This helps the consumer to verify the real quality of the product.
Various pair manufacturing companies offer this method. For developing brand loyalty
this method is quite useful. Sampling is a fast method of demand creation because one
knows the result as soon as the consumer has had time to use the sample and buy the
brand.
1. Introduction
At this stage, major promotional campaigns and activities will be designed and
executed. A comprehensive promotional mix will be designed with full input from
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the rest of the marketing mix. The aim here is to provide detailed information
about the product, its features and benefits. Special offers and sales promotions
may also be used to pull in customers while in some markets push strategies may
be used simultaneously employed.
2. Growth
Once the product is established and accepted, there will be a shift in strategy from
information to more emotional aspects. The aim is to increase brand awareness,
create strong brand equity and foster long term customer loyalty.
3. Maturity –
By now the market may have matured and there may be stiff competition and
similar products available. Promotional activities will now turn more persuasive
and there may be an attempt to create product differentiation by highlighting
specific benefits and features that fulfill needs and are unique.
5. Decline – At this point, promotional activities may wind down to the occasional
reminder that the product exists in an attempt to forestall the product’s eventual
decline
Tse and Wilton (1998) revealed in a study that customer satisfaction as the customer‟s
response to the assessment of the perceived discrepancy value between prior expectations
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and the actual perceived performance of the product as perceived after its consumption of
it.
Mela & Carl (1997) illustrated in a study that customer satisfaction is an evaluative
response given the customer regarding the product purchase and consumption experience
which resulting from a comparison of what was expected and what is received
performance. The study evidenced that expectations influence customer satisfaction and
the effect can be stated in the form of positive or negative or non-existent statement.
Srivastava (1991) examined the nature of sales promotion activities in toilet soap
category in India and studied retailer and consumer perception with respect to these
activities. It is reported that premiums (free gifts) are the most frequently used scheme in
both premium and popular toilet soap categories, followed by price-offs. More over
retailers perceive price-offs as the tool having greater impact. Consumers perceive price-
off as the most attractive tool of sales promotion for toilet soaps.
Kumar, V. and Swaminathan (2005) studied the impact of coupons on brand sale and
how that impact decays over the life of the coupon. The authors use an econometric
model to demonstrate the coupon effect in terms of equivalent price reduction, account
for coupon effect over time, allow inference of coupon effects when retailers decide to
double or triple the coupon value and provide both self-coupon and cross-coupon
elasticities at different levels of aggregation. Results indicate that the effect of doubling
the face value of coupon result in more than a proportionate increase in elasticity and
both self and cross- coupon elasticities are much smaller in magnitude than the average
self-cross price elasticity.
Sinha (1999) conducted two laboratory experiments to examine how the consumers
respond to products that have been offered as a "free gift with purchase" of another
product. Results of the first study showed that when an economically identical offer is
framed as a joint bundle compared with when it is framed as a "Buy one, Get one free"
offer, consumers are willing to pay less for the product offered "free". When a product is
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given away "free" then consumers are willing to pay less for it as a stand alone product,
especially when the original promotion offer does not include the price of the gift,
according to the result of the second study.
Rajagopal (2017) India has recognized the importance of S&T with the Science Policy
Resolution of 1958 and the Technology Policy Statement of 1983. She is concentrating
on the development of indigenous technology together with the effective absorption and
adaptation of appropriate imported technology. To this end many tax incentives have
been given to private sector industry, and other aids to the public sector, to set up R&D
units. India has achieved self-reliance in several areas and near self-sufficiency in many
other through the promotional measures taken by the government and the active role
played by industry.
Swait, J., & Erden, T. (2002). Reviewing promotional materials for pharmaceutical
products is important to help ensure their high quality and allow recipients to be well-
informed about benefits and risks. This article provides an overview of control
mechanisms that can influence the overall quality of the product combined with practical
advice, based on personal US and international experience. US case reports are used to
illustrate examples of promotional violations, and the consequences of government
enforcement.
Sawyer (2011) In the silent salesmen, Carson introduces his proven, simple promotional
product strategies that are guaranteed to increase sales and profits. Business owners and
marketers will discover step-by-step tips on how to develop and implement a versatile
marketing plan that encompasses ready-to-use samples of sales materials paired with
unique and memorable promotional products. Combined, these tools will make for an
extremely effective (and profitable) marketing message.
Tellis (2008) Advertising and sales promotion employs relevant ads, exhibits, and
photographs to capture your interest and through its writing style, gives a solid
understanding of advertising along with the challenges facing the promotion, advertising,
and marketing industries today. Prepare for the high energy excitement of advertising
today with the powerful, leading content in, its accompanying supplements, and author-
driven learning and teaching support.
Manohar U. Kalwani and Chi Kin Yim (2009) conducted a study which reveals the
impact of sales promotion strategies on consumers shopping experiences. The study
found that maintaining product satisfaction constant, sales can be enhanced by increasing
shopping experience which consists of ease of locating products, convenience of
shopping, customer friendly sales people and customer friendly marketing policies. It
also denoted that purchase decision for the same product under same promotion at
different stores may perhapsdifferfor the reason that difference in shopping experiences
provided by different stores. Inaddition, this study proved that promotion plays a limited
role on consumers buying behavior where only small percentage of customers are
attracted to such kind of sales promotion and wait for it to purchase.
Agrawal (2010), on his research topic study of consumer preference towards Cadbury
and Nestle Chocolates have found that product performance and buying behavior of two
famous brands of chocolates –Nestle and Cadbury which are consumed by people of all
ages. The researcher has interacted with people of Gurgaon and came to know how
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people perceive these products on the variables like price, quality, advertisement,
satisfaction, taste, packaging, and brand loyalty. He also came to know which particular
brand of chocolate is most preferred by people of different age groups. The objectives of
the study were to know about the customer satisfaction level associated with the product
and the customer preference level, increase customer satisfaction and recapture the
market share by fulfilling the customer needs and to study the factors affecting the
consumption pattern. The major finding of this study was that company should
concentrate more on television for advertisement, as mostly people get attracted through
television only. For promotional offers, company should go for free gifts rather than
going for other ways. Nestle company should concentrate on its packing as people are
least satisfied with it while Cadbury should concentrate on the shape of a chocolate.
People are unsatisfied with the price and quantity of chocolate so companies should
concentrate in this regard also.
Yadav (2010) stated that, brand preference of mobile phones among Gurgaon college
students has been conducted to help learn the growing telecom sector of India .The
research will also bring to light what all factors a student considers at the time of
purchase of a new mobile phone. The main objective was to study the perception and
buying behavior of students towards various mobile brands. The major finding was Nokia
is the most favorite brand of the college students.35% student changes their mobile
phones within 1 to 2 years. (op. cit). 30% students are using the mobile phones since last
1 to 2 years. When talking about the expense to be made on the mobile phone 57%
students are ready to pay for a mobile phone less than 10,000 and they spend according to
their family income. The liking of the advertisement was 49% students like the Nokia
advertisement most. Story, spokesperson and the music are the important factor in
advertisement. Mostly students see advertisement on television. When it comes to the
look of the mobile phone, mostly students prefer slim, medium in weight and large in size
handed. Mostly students have hands free, Bluetooth and memory card. Appearance,
36
Price, Brand image and advertisement are the important factors for the students while
purchasing mobile phones.
Vitthal Limbore & Wable (2013) conducted study on Effectiveness of sales promotional
activities adopted by Mahalaxmi Automobiles Pvt Ltd with the objective to study sales
promotion activities carried out by Maruiti Suzuki (India) Ltd for Wagon-R brand. This
study concludes that the products and services of company are outstanding. Its products
have full potential to stand in market and face the competition by the players in this car
segment. Maruti Suzuki Wagon-R is good product which satisfies the utmost needs of the
customers in the geographical area studied.
37
CHAPTER-III
METHODOLOGY
3.1. Introduction
Research is not confined to science and technology only. There are vast areas of research
in other disciplines such as languages, literature, history and sociology. Whatever might
be the subject, research has to be an active, diligent and systematic process of inquiry in
order to discover, interpret or revise facts, events, behaviours and theories. Applying the
outcome of research for the refinement of knowledge in other subjects, or in enhancing
the quality of human life also becomes a kind of research and development.
Research is important both in scientific and nonscientific fields. In our life new problems,
events, phenomena and processes occur every day. Practically, implementable solutions
and suggestions are required for tackling new problems that arise. Scientists have to
undertake research on them and find their causes, solutions, explanations and
applications. Precisely, research assists us to understand nature and natural phenomena.
There are currently 15 Bhat-Bhateni supermarkets all over in Nepal. Customer of Bhat-
Bhateni supermarket operating all over Nepal is considered as population for this study.
Among the total customer of Bhat-Bhateni Super Market, Customer of Bhat-Bhateni
Biratnagar are the sample of this study. Bhat-Bhateni supermarket, Biratnagar has started
is its operation in 2075/01/01 and no study has been carried out the consumer perception
of Bhat-Bhateni Supermarket, Biratnagar so Bhat-Bhateni supermarket, Biratnagar was
taken as convenience sample for the study.
1. Primary data: Primary data is data that is collected by a researcher from first-
hand sources, using methods like surveys, interviews, or experiments. It is
collected with the research project in mind, directly from primary sources.
Different sources of primary data are:
41
(b) Questionnaire
Questionnaire is the most evident method of data collection, which is comprised
of a set of questions related to the research problem. This method is very
convenient in case the data are to be collected from the diverse population. It
mainly includes the printed set of questions, either open-ended or closed-ended,
which the respondents are required to answer on the basis of their knowledge and
experience with the issue concerned.
2. Secondary data : Data collected by someone else for some other purpose (but
being utilized by the investigator for another purpose).. Secondary data is data
gathered from studies, surveys, or experiments that have been run by other people
or for other research.
CHAPTER-IV
RESULTS
4.1. Introduction
The presentation and data analyses were gotten through face-to-face distribution of
questionnaire to the consumer of Bhat-Bhateni Supermarket, Biratnagar. Analyses were
based on both the demographic information and responses to the questions in the
questionnaire which were important in answering the research questions.
50
45
40
35
Percentage
30
25
20
Percentage
15
10
5
0
18-25 26-34 35-49 49-above
Age
The research has taken both male and female sex as a respondent to make the research
realistic and appropriate.
Table 2
Gender of Respondent
Gender No. of Respondent Percentage
Male 43 71.67
Female 17 28.33
Total 60 100%
80
70
60
Percentage
50
40
30
20
10
0
Male Female
Gender
Table 2 and Figure 2 shows the gender of the respondent. Out of total respondent i.e. 60,
71.67% of the respondnet were male and 28.33% were female.
Student 31 51.67
Self-employed 13 21.67
Civil Servant 9 15
Other 7 11.66
Total 60 100%
60
50
40
Percentage
30
20
10
0
Student Self-employed Civil Servant Other
Occupation
Table 3 and Figure 3 shows the occupation of the respondent. Out of the total respondent,
student were 31 i.e. 51.67%, self employed were 13 i.e. 21.67%, civil servant 9, i.e. 15%
and other were 11.66%. The number of student respondent were more as student like to
visit shopping mall frequently than other group.
Table 4
Mode of shopping used by respondent
Response Respondent Percentage
Indoor 13 21.67%
Outdoor 19 31.67%
Both 28 46.67%
Total 60 100%
Note: Field Survey, 2019
47
50.00%
45.00%
40.00%
35.00%
Percentage
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Indoor Outdoor Both
Mode of Shopping
Table 4 and Figure 4 shows the mode of shopping used by the respondent. The highest
mode of shopping used by respondent are both indoor and outdoor mode with 46.67%,
indoor method with 21.67% and outdoor 31.67%. Higher percentage of respondent
prefer both indoor and outdoor because they have more choice to buy their desired
product than indoor shopping. In this study indoor mode refers to shop such as shopping
mall whereas outdoor mode refers to shop in place like open area market, Haatbazar etc.
80
70
60
50
40
30
20
10
0
Less than 30 minutes 30 minutes to 1 hour 1 hour to 2 hour
Time Spent
Table 5 and Figure 5 shows the time spent by respondent in per visit at Bhat-Bhateni
Shopping Malls, Biratnagar. According to table and figure 43 respondnet i.e. 71.67% of
the respondent spent less than 30 minutes at Bhat-Bhateni Shopping malls, 11 respondent
i.e. 18.33% respondent spent around 30 minutes to 1 hour and 6 respondent i.e. 10
respondent spent around 1 to 2 hour at Bhat-Bhateni Shoppng malls. Majority of
respondent spent less than 30 minutes at Bhat-Bhateni shopping malls as their motive
was to buy the desired product and save time.
4.2.6. Reason to prefer Bhat-Bhateni supermarket, Biratnagar
Respondent were asked why do they prefer to shop at Bhat-Bhateni super market. The
response of respondent is given in the below table.
Table 6
Reason to prefer Bhat-Bhateni Supermarket
Response Respondent Percentage
Store is conveniently located 12 20%
Store atmosphere and décor are appealing 42 70%
Goods are of high quality 6 10%
Total 60 100
Note: Field Survey, 2019
49
80%
60%
40%
20%
0%
ed ng ty
Percentage
Table 6 and Figure 6 shows the reason of respondent to prefer Bhat-Bhateni super market
for shopping. Out of 60 respondent 12 respondent i.e. 20% respondent prefer to shop at
Bhat-Bhateni super market because they think it is in convenient location, 42 respondent
i.e. 70% respondent prefer to shop at Bhat-Bhateni super market because they think it
atmosphere and décor such as escalator, building appearance, design are appealing to
shop at Bhat-Bhateni super market whereas 6 respondent i.e. 10% respondent think at
goods available at Bhat-Bhateni super market of high quality.
Table 7
Customer satisfaction on sales promotion tools used by Bhat-Bhateni Biratnagar
Sales promotion activity Customers Percentage
Discount 43 71.67
Gift 7 11.67
Coupons 3 5.00
Offers 7 11.67
Total 60 100
Note: Questionnaire, 2019
80
70
60
50
40
30
20
10
0
Discount Gift Coupons Offers
Table 7 and Figure 7 shows the customer satisfaction on sales promotion tools used by
Bhat-Bhateni Biratnagar. Out of the total respondent 43 respondent i.e 71.67% of were
attracted by discount, 7 respondent i.e. 11.67% were attracted by gift, 3 respondent i.e.
5% were attracted by coupons and 7 respondent i.e. 11.67% were attracted towards
different offers provided by Bhat-Bhateni Supermarket, Biratnagar.
Customer were asked about the promotional activities they expect from Bhat-Bhateni
Supermarket, Biratnagar. The response of the respondent is presented in the below table:
Table 8.
Customer expectation on promotional activities
Factors Frequency Percentage
Promotional Scheme 32 53.33
Sales Follow Up 8 13.33
Service 20 33.33
Total 60 100
Note: Questionnaire, 2019
60
50
40
30
20
10
0
Promotional Scheme Sales Follow Up Service
Table 8 and Figure 8 shows the customer expectation on promotional activities used by
Bhat-Bhateni Supermarket. Out of the total respondent, 32 respondent i.e. 53.33% were
of view that they expect promotional scheme from Bhat-Bhateni Supermarket, 8
respondent i.e. 13.33% respondent expect sales follow service and 20 respondent i.e.
33.33% expect quick and fast service from Bhat-Bhateni Supermarket.
4.2.9. Customer opinion on sales promotion used by Bhat-Bhateni Supermarket
Customer were asked about the opinion on sales promotion used by Bhat-Bhateni
Supermarket. The response of the respondent is presented in the below table.
52
Table 9
Customer opinion on sales promotion used by Bhat-Bhateni Supermarket
Opinion Frequency Percentage
Very good 8 13.33
Good 20 33.33
Satisfactory 30 50.00
Poor 2 3.33
Total 60 100
Note: Questionnaire, 2019
60
50
40
30
20
10
0
Very good Good Satisfactory Poor
Table 9 and Figure 9 shows the customer opinion on sales promotion used by Bhat-
Bhateni Supermarket, Biratnagar. Out of the total respondent 30 respondent i.e. 50% of
were satisfied with the sales promotion used by Bhat-Bhateni Supermarket, 8 respondent
i.e. 13.33% were of view that sales promotion activities is very good, 20 respondent i.e.
33.33% were of view that sales promotion activities used by Bhat-Bhateni was good and
2 respondent i.e. 3.33 were not satisfied with the sales promotion used by Bhat-Bhateni
Supermarket.
Customer were asked whether they were satisfied with the Cash Back offers given by
Bhat-Bhateni Supermarket market or not. The response of the respondent is presented in
the below table.
Table 10
Customer satisfaction on Cash Back offer given by Bhat- Bhateni Supermarket
Response Frequency Percentage
Satisfied 42 70
Dissatisfied 8 13.33
Neutral 10 16.67
Total 60 100
Note: Questionnaire, 2019
80
70
60
50
40
30
20
10
0
Satisfied Dissatisfied Neutral
Table 10 and Figure 10 shows the customer satisfaction on cash back offer given by
Bhat-Bhateni Supermarket. Out of the total respondent, 42 respondent i.e. 70% were
satisfied with the cash bank offer given by Bhat-Bhateni Supermarket, 8 respondent i.e.
13.33% were dissatisfied with the cash back offer and 10 respondent i.e. 16.67% were
neutral about the cash back offer given by Bhat-Bhateni Supermarket.
Table 11
Customer satisfaction on Exchange offer given by Bhat-Bhateni Supermarket, Biratnagar
Response Frequency Percentage
Satisfied 52 86.67
Dissatisfied 6 10.00
Neutral 2 3.33
Total 60 100
Note: Questionnaire, 2019
100
90
80
70
60
50
40
30
20
10
0
Satisfied Dissatisfied Neutral
Table 11 and Figure 11 shows the customer satisfaction on exchange offer given by Bhat-
Bhateni Supermarket. Out of the total respondent 52 respondent i.e. 86.67% were
satisfied with the exchange offer given by Bhat-Bhateni Supermarket, 6 respondent i.e.
10% respondent were dissatisfied with the exchange facilities and 2 respondent i.e.
3.33% respondent were neutral about the exchange facilities given by Bhat-Bhateni
supermarket.
80
70
60
50
40
30
20
10
0
Satisfied Dissatisfied Neutral
Figure 4.12. Customer satisfaction on display board to bring awareness about the offer
Table 12 and Figure 12 shows the customer satisfaction on display board to bring
awareness about the offer. Out of the total respondent 40 respondent i.e. 66.67% were
satisfied with the display board to bring awareness about the offer, 4 respondent i.e.
6.67% were dissatisfied and 16 respondent i.e. 26.67% were satisfied with the display
board to bring awareness about the offer.
Table 13.
Purchase Decision at Bhat-Bhateni Supermarket
56
30%
Yes
No
70%
1. The age of respondent. From the table and Figure it can be seen that age group of
respondent between 18-25 is 27 i.e. 45%, age group of 26-34 is 12 i.e. 20%, age
group of 35-49 is 14 i.e. 23.33% and age group of 49 and above is 7 i.e. 11.67% of
the total respondent. The age group of 18-25 is higher because this group actively
took part in fillin up the questionnaire.
57
2. Out of total respondent i.e. 60, 71.67% of the respondnet were male and 28.33% were
female.
3. Out of the total respondent, student were 31 i.e. 51.67%, self employed were 13 i.e.
21.67%, civil servant 9, i.e. 15% and other were 11.66%. The number of student
respondent were more as student like to visit shopping mall frequently than other
group.
4. The highest mode of shopping used by respondent are both indoor and outdoor mode
with 46.67%, indoor method with 21.67% and outdoor 31.67%. Higher percentage of
respondent prefer both indoor and outdoor because they have more choice to buy
their desired product than indoor shopping. In this study indoor mode refers to shop
such as shopping mall whereas outdoor mode refers to shop in place like open area
market, Haatbazar etc.
5. Out of the total respondnet i.e. 71.67% of the respondent spent less than 30 minutes at
Bhat-Bhateni Shopping malls, 11 respondent i.e. 18.33% respondent spent around 30
minutes to 1 hour and 6 respondent i.e. 10 respondent spent around 1 to 2 hour at
Bhat-Bhateni Shoppng malls. Majority of respondent spent less than 30 minutes at
Bhat-Bhateni shopping malls as their motive was to buy the desired product and save
time.
6. Out of 60 respondent 12 respondent i.e. 20% respondent prefer to shop at Bhat-
Bhateni super market because they think it is in convenient location, 42 respondent
i.e. 70% respondent prefer to shop at Bhat-Bhateni super market because they think it
atmosphere and décor such as escalator, building appearance, design are appealing to
shop at Bhat-Bhateni super market whereas 6 respondent i.e. 10% respondent think at
goods available at Bhat-Bhateni super market of high quality.
58
7. Out of the total respondent 43 respondent i.e 71.67% of were attracted by discount, 7
respondent i.e. 11.67% were attracted by gift, 3 respondent i.e. 5% were attracted by
coupons and 7 respondent i.e. 11.67% were attracted towards different offers
provided by Bhat-Bhateni Supermarket, Biratnagar.
8. Out of the total respondent, 32 respondent i.e. 53.33% were of view that they expect
promotional scheme from Bhat-Bhateni Supermarket, 8 respondent i.e. 13.33%
respondent expect sales follow service and 20 respondent i.e. 33.33% expect quick
and fast service from Bhat-Bhateni Supermarket.
9. Out of the total respondent 30 respondent i.e. 50% of were satisfied with the sales
promotion used by Bhat-Bhateni Supermarket, 8 respondent i.e. 13.33% were of view
that sales promotion activities is very good, 20 respondent i.e. 33.33% were of view
that sales promotion activities used by Bhat-Bhateni was good and 2 respondent i.e.
3.33 were not satisfied with the sales promotion used by Bhat-Bhateni Supermarket.
10. Out of the total respondent, 42 respondent i.e. 70% were satisfied with the cash bank
offer given by Bhat-Bhateni Supermarket, 8 respondent i.e. 13.33% were dissatisfied
with the cash back offer and 10 respondent i.e. 16.67% were neutral about the cash
back offer given by Bhat-Bhateni Supermarket.
11. Out of the total respondent 52 respondent i.e. 86.67% were satisfied with the
exchange offer given by Bhat-Bhateni Supermarket, 6 respondent i.e. 10% respondent
were dissatisfied with the exchange facilities and 2 respondent i.e. 3.33% respondent
were neutral about the exchange facilities given by Bhat-Bhateni supermarket.
12. Out of the total respondent 40 respondent i.e. 66.67% were satisfied with the display
board to bring awareness about the offer, 4 respondent i.e. 6.67% were dissatisfied
59
and 16 respondent i.e. 26.67% were satisfied with the display board to bring
awareness about the offer.
13. Out of the total respondent 42 respondent i.e. 70% respondent were based on sales
promotion technique used by Bhat-Bhateni supermarket and 18 respondent i.e. 30%
respondent purchasing decision were not based on sales promotion activities used by
Bhat-Bhateni supermarket.
CHAPTER-V
CONCLUSION
5.1. Summary
In the current organized retailing scenario, the promotion strategies are becoming more
and more complicated as modifying in the buyer behavior. Because the main goal of any
60
organization is to make profit with the help of increase the sales and sales performance is
closely allied with promotion strategies. There is a complex phenomenon in shopping
mall regime that to enhance the level of customer satisfaction to retain them for long run.
Hence, malls are required to implement suitable marketing strategies to increase the
customer satisfaction level. The study has aimed to examine the promotion strategies of
shopping malls and how these strategies are contributing to enhance the level of customer
satisfaction. The primary data has been collected by using structured questionnaire from
60 respondents in Bhat Bhateni Shopping Centre, Biratnagar.
5.2. Conclusions
The study can be concluded that an organised retail marketing strategy is something that
persistently evolves, adapting to varying market environment. Within organised retail, the
outcomes from its many different types of retail stores are constantly reviewed and
evaluated. In addition, shopping mall‟s marketing mix strategies are more unique
especially in the part of promotion strategies. Effective promotion strategies contribute to
bring more awareness about the products offered by shopping malls and to boost the sales
by attracting the customers. However, customers have numerous expectations while
visiting shopping malls. Hence, there is big challenge to the shopping malls to enhance
perceived performance rather than their expectations which result in customer‟s delight
or highly satisfied. The present study concentrated on effectiveness of promotion
strategies in increasing or delights customer satisfaction in shopping malls regime. The
study recapitulated that ten chosen indicators of promotion strategies are working better
in enhancing customer satisfaction. Among the selected promotion strategies namely Buy
2 get 1 free offer given by the malls, exchange offers given by the malls, announcement
of attractive offers via Mic inside the malls, display board to bring awareness about the
offers, Price-Match techniques via App, discount offers given by the malls are
contributing more on increasing customer satisfaction.
5.3. Implications
61
The study has signified few suggestions to shopping malls based facts findings and mall-
intercept method. It recommended that there is need of reducing in the target shopping to
get cash back offers easier like minimum cash back offer for minimum shopping. In
addition, shopping points giving to retain the customers and encourage them to visit the
malls again and again is moderately working in increasing the level of customer
satisfaction. Hence, marketers have to bring much more awareness to the customers about
the same and to get the benefit from it. However, scratch and win offer is not up to the
mark, because of majority of the customers are not ready to believe the assurance given
by the sales people like winners may get foreign trip, lucky coupons will be given and
costly products may get. In this phenomenon, they have to come out with evidence to
persuade the customers. Moreover, the several offers which are offering to the customers
in the name of promotion strategies that should not restricted to a particular product-line.
If shopping malls concentrated on customer’s feedback to altering the promotion
strategies accordance with the changing marketing environment and customers buying
behavior, no doubt in increasing the level of customer satisfaction.