Research Methodology

OBJECTIVES OF THE STUDY
1. To profile the cherry pickers. 2. To study the cherry picking sales pattern. 3. To find out whether Cherry pickers increases the basket size. 4. To find out whether cherry pickers increase the retail turnover.

RESEARCH QUESTIONS

y Who are the cherry pickers? y How do these customers cherry pick products? y y

What are the implications on the total spending of these customers? Do such consumers increase the retail turnover by buying more quantity for availing the promotional schemes?

HYPOTHESIS
Ho: The amount spent more to avail the scheme is not dependent on the income of the buyer. H1: The amount spent more to avail the scheme is dependent on the income of the buyer.

TYPE OF RESEARCH DESIGN
Descriptive research was used for the project.

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QUANTITATIVE RESEARCH A survey of customers leaving Big Bazaar was done so that all details of the shopping trip were fresh in their minds and hence accurate price data could be collected. The survey was done by questionnaire which comprised of closed ended questions.

SOURCES OF DATA
Primary data was collected through survey of customers at Big Bazaar. Secondary data was collected from previous research by various authors on this topic, retail biz magazine and articles and reports on the internet.

METHODOLOGY
The method used for survey was structured questionnaire.

RESEARCH TOOL Questionnaire

QUESTIONNAIRE DESIGN The questionnaire comprised of closed ended questions.

SAMPLE DESIGN
SAMPLE SIZE: 100 samples SAMPLING TECHNIQUE: Convenience sampling.

PILOT STUDY
A pilot survey of 5 customers at Big Bazaar had been done to ensure that the questionnaire is correct and relevant of research objectives.

SURVEY
Once pilot study is over, actual survey will be conducted.

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DATA ANALYSIS
The researcher has used inferential statistics (through SPSS) in order to draw a conclusion. Result of the study has been put in tables and graphs for easy understanding of the findings of the research.

EXPECTED CONTRIBUTION OF THE STUDY
This project will help in giving a fresh insight on this topic on which research has been done very rarely in India. It will help to understand the overall pattern of this activity and its impact on the marketing strategies of various FMCG products. Also the profiling of this set of consumers can help in framing the strategies accordingly.

REASON FOR TAKING UP THE PROJECT
The researcher has done his BBA and currently pursuing his MBA. This topic has not been researched upon extensively in India and hence promises unique exposure and experience to the researcher and hence this project has been undertaken.

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It iscurrently growing at double digit growth rate and is expected to maintain a high growth rate. consumer electronics. and relatively low cost are known as Fast Moving Consumer Goods (FMCG). cosmetics. Personal Care and Food & Beverages. low operating cost. bucking the trend. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries. The industry is expected to register a 15% growth in Q3 2008-09 as compared to the corresponding period last year. Unlike other sectors. low penetration levels. The total FMCG market is in excess of Rs. soap. batteries. tooth cleaning products. the FMCG industry did not slow down since Q2 2008. The Rs 85. and chocolate bars. lower per capita consumption and intense competition between the organized and unorganized segments. FMCG products are those that get replaced within a year. FMCG Industry is characterized by a well established distribution network. packaged food products. as well as other non-durables such as glassware. and plastic goods. Page | 4 . Its principal constituents are Household Care. soft drinks.INTRODUCTION TO THE INDUSTRY Products which have a quick turnover. paper products. tissue paper. FMCG may also include pharmaceuticals. India s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. it will continue to grow. bulbs.000-crore Indian FMCG industry is expected to register a healthy growth in the third quarter of 2008-09 despite the economic downturn. As it is meeting the every-day demands of consumers. 85. shaving products and detergents. the industry is doing pretty well.000 Crores.

with domination in their key categories. have improved their market shares and outperformed peers in the FMCG sector. This has been also aided by the lack of competition in the respective categories.Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd. Page | 5 . with revived growth in semi-urban and rural markets. aided by innovations and strong distribution. Single product leaders such as Colgate Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in their respective categories. Strong players in the economy segment like Godrej Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share improvement.

12. With rapid urbanization. The penetration level of this segment in India is around 20 per cent.300 Cr. The penetration level of soaps is ~92 per cent. 3. Page | 6 . increase in disposable incomes. HUL is the leader with market share of ~53 per cent.000 Cr. It is available in 5 million retail stores. people are becoming aware about personal grooming. fol-lowed by CavinKare with a market share of ~12 per cent and Godrej with a market share of ~3 per cent. 75 per cent are in the rural areas. the demand for the household care products is flourishing.Industry Category and Products Household Care Personal Wash:The market size of personal wash is estimated to be around Rs. With changing life styles. greater product choice and availability. However. Godrej occupies second position with market share of ~10 per cent. Henkel and Proctor & Gamble. Personal Care Skin Care:The total skin care market is estimated to be around Rs. The skin care market is at a primary stage in India. Economy and Popular. Other major players are Nirma. 8. in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps. Detergents:The size of the detergent market is estimated to be Rs. Household care segment is characterized by high degree of competition and high level of penetration. emergence of small pack size and sachets. With increase in disposable incomes. growth in rural demand is expected to increase because consumers are moving up towards premium products. In washing powder HUL is the leader with ~38 per cent of market share. The major players in this segment are Hindustan Unilever with a market share of ~54 per cent. The personal wash can be segregated into three segments: Premium. The demand for detergents has been growing but the regional and small unorganized players account for a major share of the total volume of the detergent market. out of which.400 Cr. because increase in prices has led some consumers to look for cheaper substitutes.

It has low penetration level even in metros. The market is further expected to increase due to increased marketing by players and availability of shampoos in affordable sachets.60 per cent. Again the market is dominated by HUL with around ~47 per cent market share. The oral care market. ready to eat rice by HUL and pizzas by both GCMMF and Godrej Pillsbury. and others. The penetration level of toothpowder/toothpaste in urban areas is three times that of rural areas. while HUL occupies second position with market share of ~30 per cent. toothbrushes . Sachet makes up to 40 per cent of the total shampoo sale. and hair gels. Shampoos:The Indian shampoo market is estimated to be around Rs.500 Cr. Godrej. Colgate and Dabur are the major players. Oral Care:The oral care market can be segmented into toothpaste . P&G occupies second position with market share of around ~23 per cent. Dabur occu-pies second position at ~17 per cent. 4. The food category has also seen innovations like softies in ice creams. hair colorants & conditioners. remains under penetrated in India with penetration level ~50 per cent. 3. Food & Beverages Food Segment :The foods category in FMCG is gaining popularity with a swing of launches by HUL. Marico is the leader in Hair Oil segment with market share of ~ 33 per cent. The hair care market can be segmented into hair oils. 3.17 per cent. toothpowder .600 Cr. It has the penetration level of only 13 per cent in India.23 per cent.700 Cr. This segment is dominated by Colgate-Palmolive with market share of ~49 per cent. Nestle and Amul slug it out in the powders segment. This category has 18 major brands aggregating Rs. In toothpowders market.Hair Care:The hair care market in India is estimated at around Rs. Antidandruff segment constitutes around 15 per cent of the total shampoo market.800 Cr. shampoos. The total toothpaste market is estimated to be around Rs. Page | 7 . especially toothpastes. 2. ITC.

Tea :The major share of tea market is dominated by unorganized players. The major players in this segment are Nestlé. Page | 8 . Coffee :The Indian beverage industry faces over supply in segments like coffee and tea. more than 50 per cent of the market share is in unpacked or loose form. More than 50 per cent of the market share is capture by unorganized players. HUL and Tata Tea. However. Leading branded tea players are HUL and Tata Tea.

450 Billion and will surpass China to become the World largest in terms of population. has leads to growth rate in FMCG goods. An increase in disposable income. Changing Profile and Mind Set of Consumer People are becoming conscious about health and hygienic. We have seen willingness in consumers to move to evolved products/ brands. of household mainly because of in-crease in nuclear family where both the husband and wife are earning. Consumers are switching from economy to Page | 9 . because of changing lifestyles.Growth Prospect Large Market India has a population of more than 1. According to the estimates. rising disposable income etc. There is a change in the mind set of the Consumer and now looking at ³Money for Value´ rather than ³Value for Money´. by 2030 India population will be around 1. There is an upward trend in urban as well as rural market and also an increase in spending in organ-ized retail sector. Spending Pattern An increase is spending pattern has been witnessed in Indian FMCG market.150 Billions which is just behind China. FMCG Industry which is directly related to the population is expected to maintain a robust growth rate.

Sources: Naukri Hub.premium product even we have witnessed a sharp increase in the sales of packaged water and water purifier. Nielsen shows about 71 per cent of Indian take notice of packaged goods labels containing nutritional information compared to two years ago which was only 59 per cent. Chennai Online Sources: Statistical Outline of India (2001-02). C. IBEF. Findings according to a recent survey by A. NCAER Page | 10 .

Page | 11 . This announcement has a positive impact on the industry. is allowed for most of the food processing sector except malted food. 100 per cent ex-port oriented units can be set up by government approval and use of foreign brand names is now freely permitted.Advantages To The Sector Governmental Policy Indian Government has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions. as these products are either subject to specific duty or are exempt from excise. There is an increase of about 150 per cent in Net Inflow for Vegetable Oils & Vanaspati for the year 2008. Godfrey Phillips). Central & State Initiatives Recently Government has announced a cut of 4 per cent in excise duty to fight with the slowdown of the Economy. But the benefit from the 4 per cent reduction in excise duty is not likely to be uniform across FMCG categories or players. automatic foreign investment and food laws resulting in an environment that fosters growth. reducing excise duties. ITC) or ready-to-eat foods. The changes in excise duty do not impact cigarettes (ITC. biscuits (Britannia Industries. Foreign Direct Investment (FDI) Automatic investment approval (including foreign technology agreements within specified norms). Even players with manufacturing facilities located mainly in tax-free zones will also not see material excise duty savings. There is a continuous growth in net FDI Inflow. alcoholic beverages and those reserved for small scale industries (SSI). Only large FMCG-makers may be the key ones to bet and gain on excise cut. up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment.

This trend has compelled some companies to raise prices and even create products aimed at the premium segment. deodorants. Indian customers¶ for FMCGs are shifting towards higher lifestyle categories like skin care. convenience foods. and 15% in the same period in 2006-079. spurring various types of MNC investments to improve their lifestyle products businesses. ‡ In fact. deodorants. hair dyes and shampoos alone helped the FMCG industry to grow by 16% in 2007-08 (April-February). ‡ For personal care lifestyle products. hair care. In fact. hair care. consumers are becoming increasingly willing to pay premium prices for them.As their incomes and standards of living improve. health foods etc. Page | 12 . convenience foods. and health foods are expected to experience notably higher growth than others in the near term. skin care. deodorants.

And an average citizen in rural India has less then half of the purchasing power as compare to his urban counterpart. milk. It adds a cost advantage as well as easily available raw materials. sugarcane. wheat. Even investment opportunities exist in value-added products like desserts.³Leveraging the Cost Advantage´ Cheap labor and quality product & services have helped India to represent as a cost advantage over other Countries. spices and cashew apart from being the second largest producer of rice. Hindustan Unilever Ltd is the largest player in the industry and has the widest market coverage. Sectoral Opportunities Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below: Dairy Based Products India is the largest milk producer in the world.Market Opportunities Vast Rural Market Rural India accounts for more than 700 Million consumers. fruits & vegetables. The working rural population is approximately 400 Millions. coconut. puddings etc. The market for FMCG products in rural India is esti-mated ~ 52 per cent and is projected to touch ~ 60 per cent within a year. or ~70 per cent of the Indian population and accounts for ~50 per cent of the total FMCG market. Export . Page | 13 . India is the largest producer of livestock. yet only around 15 per cent of the milk is processed. Multi National Companies out-source its product requirements from its Indian company to have a cost advantage. Still there is an untapped market and most of the FMCG Companies are taking different steps to capture rural market share. The organized liquid milk business is in its infancy and also has large long-term growth potential. Even the Government has offered zero import duty on capital goods and raw material for 100% export oriented units.

Burgeoning Indian population.Packaged Food Only about 10-12 per cent of output is processed and consumed in packaged form. India needs around US$ 28 billion of investment in the food-processing industry. especially toothpastes. Beverages Indian tea market is dominated by unorganized players. More than 50% of the market share is capture by unorganized players highlighting high potential for organized players. With 200 million people expected to shift to processed and packaged food by 2010. remains under penetrated in India with penetration rates around 50 per cent. The FMCG market is set to treble from US$ 11. intense competition between the organised and unorganised segments and low operational cost. toothpaste. It has a strong MNC presence and is characterised by a wellestablished distribution network. skin care. hair wash etc in India is low indicating the untapped market potential.6 billion in 2003 to US$ 33. thus highlighting the huge potential for expansion of this industry. the growth potential is huge. Availability of key raw materials.4 billion in 2015.1 billion. Lower price and smaller packs are also likely to drive potential up trading. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. particularly the middle class and the rural segments. Oral Care The oral care industry. With rise in per capita incomes and awareness of oral hygiene. presents an opportunity to makers of branded products to convert consumers to branded products. Penetration level as well as per capita consumption in most product categories like jams. Page | 14 . Growth is also likely to come from consumer 'upgrading' in the matured product categories.

NCAER Around 70 per cent of the total households in India (188 million) resides in the rural areas.000 3. 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.5 billion in 2001-02. Rural and urban potential Rural-urban profile Population 2001-02 (mn household) Population 2009-10 (mn household) % Distribution (2001-02) Market (Towns/Villages) Universe of Outlets (mn) 53 69 28 3.768 1 135 153 72 6. India .3 Source: Statistical Outline of India (2001-02). This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10. The total number of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2009-10. Page | 15 .Large domestic market India is one of the largest emerging markets.27. the market potential is expected to expand further. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. with a population of over one billion.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. With growing incomes at both the rural and the urban level.

Page | 16 . Source: Euro monitor.Consumption pie: Source: KSA Technopak Consumer Outlook 2004.

Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. This demand supply gap indicates an untapped opportunity in areas such as packaged form. Demand-supply gap Currently. have all caused rapid growth and change in demand patterns. Aspiration levels in this age group have been fuelled by greater media exposure. Rapid urbanisation. In the personal care segment. convenience food and drinks. milk products etc. increased literacy and rising per capita income. leading to an explosion of new opportunities. unleashing a latent demand with more money and a new mindset. only a small percentage of the raw materials in India are processed into value added products even as the demand for processed and convenience food is on the rise. Page | 17 .Change in the Indian consumer profile: Source: Statistical Outline of India (2002-03). the low penetration rate in both the rural and urban areas indicates a market potential.

Many multi-nationals have set up large low cost production bases in India to outsource for domestic as well as export markets. India also has an ample supply of caustic soda and soda ash. India is the largest producer of livestock. milk. coconut. Tata Chemicals. Easy raw material availability and low labour costs have resulted in a lower cost of production. wheat and fruits & vegetables. existence of low-cost labour force also works in favour of India. Penetration and per capita consumption Page | 18 . sugarcane. spices and cashew and is the second largest producer of rice. The availability of these raw materials gives India the locational advantage. Apart from the advantage in terms of ample raw material availability. Labour cost in India is amongst the lowest in Asian countries.INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS Materials availability India has a diverse agro-climatic condition due to which there exists a wide-ranging and large raw material base suitable for food processing industries. the raw materials in the production of soaps and detergents ± India produced 1. one of the largest producers of synthetic soda ash in the world is located in India. Source: DIPP.6 million tonnes of caustic soda in 2003-04.

Indian Readership Survey. Page | 19 .Rural .urban penetration (2002) Source: HLL.

skin care. Moreover.the average consumption by rural households is much lower than their urban counterparts. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies.Penetration level in most product categories like jams. tooth paste. is further expected to boost FMCG demand. especially in the matured product categories. with improvement in incomes and affordability and change in tastes and preferences. which are likely to expand as the income levels rise. Household income distribution ± 2003 Page | 20 . The contrast is particularly striking between the rural and urban segments . Growth is also likely to come from consumer "upgrading". hair wash etc in India is low. Low penetration indicates the existence of unsaturated markets. A rise in per capita consumption.

The middle segment. The BRICs report indicates that India's per capita disposable income. Page | 21 . indicates a latent demand for various product segments.Household income distribution ± 2015 Demand for FMCG products is set to boom by almost 60 per cent by 2007 and more than 100 per cent by 2015. Spurt in the industrial and services sector growth is also likely to boost the urban consumption demand. indicates a large market for the mass end products.another FMCG demand driver. further. the upper end of very rich and a part of the consuming class indicate a small but rapidly growing segment for branded products. currently at US$ 556 per annum. on the other hand. This will be driven by the rise in share of middle class (defined as the climbers and consuming class) from 67 per cent in 2003 to 88 per cent in 2015. The boom in various consumer categories. For example. will rise to US$ 1150 by 2015 .

Rise in Indian disposable income (US$/annum) MARKET OPPORTUNITIES FOR INVESTMENT Source: HH Panel data Page | 22 .

According to estimates based on China's current per capitaconsumption, the Indian FMCG market is set to treble fromUS$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominanceof Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products.

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Swot Analysis
Strengths: ‡ Low operational costs ‡ Presence of established distribution networks in both urban and rural areas ‡ Presence of well-known brands in FMCG sector

Weaknesses: ‡ Lower scope of investing in technology and achieving economies of scale, especially in small sectors ‡ Low exports levels ‡ "Me-too products, which illegally mimic the labels of the established

brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities: ‡ Untapped rural market ‡ Rising income levels, i.e. increase in purchasing power of consumers ‡ Large domestic market- a population of over one billion. ‡ Export potential ‡ High consumer goods spending

Threats: ‡ Removal of import restrictions resulting in replacing of domestic brands ‡ Slowdown in rural demand ‡ Tax and regulatory structure

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CONSUMER SALES PROMOTINAL ACTIVITIES
The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumer¶s perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as hedonic benefits such as entertainment, exploration and self-expression.

Broadly speaking most of the companies using Marketing Mix which includes«

Price Place (Channel of Distribution) Product Promotion These are the four basic pillar of marketing mix. Most of the marketing strategies are built on the basis of these criteria.

Promotion is one of the important elements of marketing mix. There are so many elements of promotion such as «

Advertising Direct Marketing Public Relations Sales Promotion

Traditionally, sales Promotions have been used by marketer to increase sales in the short term. However, in the last few decades this communication tool has evolved and now is

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we can be sure that the trend is up. a producer has to inform channel members as well as ultimate consumers about the attributes and availability of his products. channels of distribution take more time in creating awareness because a product has to pass through many hands between a producer and consumers. Therefore. cooperative advertising. it is necessary to realize new studies in this area and study how consumers evaluate sales promotions. trade allowances. Even the most useful product or brand will be a failure if no one knows that it is available. Trade Oriented Sales Promotion includes dealer contest and incentives. The second purpose of promotion is persuasion. Further Sales Promotion is quite broad term it includes « Trade Oriented Sales Promotion Consumer Oriented Sales Promotion Trade Oriented Sales Promotion: Trade Oriented Sales Promotion aimed to motivate channel member of the company and to encourage them to push company¶s product.considered from a strategic point of view. persuades and reminds prospective customers about a company and its products. As we know. trade shows. The third purpose of promotion is reminding consumers about products availability and its potential to satisfy their needs. From these elements Sales Promotion is the element which is in the focus of this project. and other programs designed to motivate Page | 26 . For this reason. The cut throat competition among different products puts tremendous pressure on their manufacturers and they are compelled to undertake sales promotion activities. Point-of-purchase displays. sales training programs. Although an accurate estimate for total sales promotions expenditures does not exist. Sales promotions have grown in both importance and frequency over the past few decades. Sales promotion serves three essential roles: It informs.

´ Roger Strang has given a more simplistic definition i.distributors and retailers to carry a product and make an extra effort to push it to their customers Consumer Oriented Sales Promotion: Consumer Oriented Sales Promotion is the main topic of this project.e. Refunds. Premiums. Rebates. Couponing. mostly short-term designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade. Bonus Pack¶s. Price-off.´ Hence. Here emphasize is given to motivate consumer to increase sales. Kotler defines sales promotion as: ³Sales promotion consists of a diverse collection of incentive tools. Event marketing etc. any forms of incentives (price cut or value added nature) offered for short period either to trade or consumers are considered as sales promotion activities. following definitions of sales promotion were kept in mind. Marketer¶s uses consumer oriented sales promotion tools for the following reasons: y y y y y y y To increase short term sales To induce trial To reduce inventory To establish a brand name To make cross selling To cope up with competition To avoid advertising clutter Page | 27 . Definition: For the purpose of this study. ³sales promotions are short-term incentives to encourage purchase or sales of a product or service. Contest. Consumer Oriented Sales Promotion includes Sampling.

Sampling is also used for established product. Premium 5.Tools of Consumer Oriented Sales Promotion: There are so many tools or technique available to the marketers for achieving objective of sales promotion. Couponing 3. availability of goods etc. Sampling: Sampling is an important and very frequently used sales promotion tool. Bonus Pack Let¶s have look at each tool« 1. y Sampling is best way to induce trial when product feature are very difficult to describe through advertisement. These tools should be used considering all other factors affecting such as cost. competitors. In sampling consumers are given some quantity of a product for no charge to induce trial. Marketers of packaged-goods products such as food. Sampling is the most effective way to generate trial. These tools are as under« 1. y With the help of sampling scheme consumer can experience directly which is not possible in any kind of advertisement. Price-Off 4. time. Benefits of Sampling: y From the consumers point of view Sampling is risk free way to try new product. at the same time it is most expensive tools. Sampling 2. and toiletries are heavy users of sampling. Contest 6. Page | 28 . health care items. cosmetics.

In this method marketer has control over where and when the product will be distributed. But it can be cost effective if marketer has exact information of target market. This method is more used in product like food. y In-store sampling: This method requires great support from retailers. Here table or booth set-up in the store. E. In this method consumer can directly taste and than can purchase. The main drawback is of postal restrictions and increasing postal rates. This distribution method is very expensive because of labour cost. etc. While giving free sample it requires financial soundness because otherwise company can¶t afford it.Limitation of Sampling: y The main drawback of sampling is of cost. lightweight. and nonperishable. perfume. y y While giving free sample it is necessary that brand have some unique quality. This is cost effective method but it is also not free from drawback as it is distributed only to consumers who purchase the item to which it is attached the sample will not reach nonusers of the carrier brand.g. There is some product which requires long time to show result due to that it is possible that the sampling scheme may not give benefit as expected. y On-package sampling: In this method free sample is attached to another product. Page | 29 . y Sampling through the mail: This method can be used when product is comparable small. Skin cream requires time to show result in this case it is possible that customer might not respond when there is no such scheme. Distribution of Samples: y Door-to-door sampling: Here product is directly delivered to the prospects residence.

Couponing: Couponing is the oldest and most widely used way of sales promotion. some other may got benefit of it who are actually not interested. Limitations of Couponing: y y It is very difficult to estimate number of buyers. psychological risk etc.y Other Methods: To distribute free sample. Send sample to those who call tall free number. social risk. magazine are used. y Coupons can be used not only for newly launched product but it can also use for already established brand. Benefits of Couponing: y Couponing leads to price reductions so as to encourage price sensitive customers. 2. y It can be manipulated by retailers and company may not get the result expected. Thorough internet free sample can be distributed like film clip. Page | 30 . y It may to target towards actual buyers. It is worthwhile to use coupon as a promotion tool because data shows that market for packaged goods increased from 16 billion in 1968 to 310 billion in 1994. It is mostly used by packaged goods. Coupons have been used since 1895. Reduction in price reduces the consumer¶s perceived risk associated with new product such as financial risk. To boost up the sales not only manufacturer but retailers personally can also used. y y Non users can try a product which may leads to regular sales. methods like newspaper. Cost of coupon and reduction given as per scheme leads to reduction in over all profit of the firm.

3. Price-off: A price-off is simply a reduction in the price of the product to increase sales and is very often used when introduction a new product.g. Generally Price-offs given from 10 to 50 percent of the regular price. But now a day these media is not so much effective. y Distribution through newspaper µfreestanding inserts¶ is by far the most popular method for delivering coupons to consumers. y Price-off can be a strong influence at the point of purchase when price comparisons are being made. A reduction in price always increases sales but the use of this technique should be carefully considered in the current market situation. E. y Price-off promotion can also encourage consumers to purchase larger quantities. Priceoff reductions are typically offered tight on the package through specially marked price packs. Not only that but it also cause large increase in sales volume. Benefits of Price-off: y Since marketers bare the probable reduction in price at cost of his own profit so he can control over the price-off scheme. and not the retailer¶s. shorter lead time and cost efficiency. Price-off is the most preferred sales promotion technique because consumers response very positively to this scheme. Newspaper and magazine gives advantage of market selectivity. Here reduction is coming out from manufacturer¶s profit margin. Krack Jack offers 30% Price-off. Page | 31 .Distribution of coupons: y The use of newspaper and magazine as a vehicle for distributing coupon was used quite freely. y Very widely used method for distributing coupon is placing coupons either inside or on the outside of the package.

companies will look to incentive programs as a way to maintain customer loyalty and capture a greater share of the market. trading card or other items.With consumer spending more. Two basic type of premium: 1. y To the company it is very expensive tool of sales promotion 4.Limitation of Price-off: y Retailers may create pricing and inventory problems because retailers will not accept packages with a specific price shown. This tool is more useful to the retailers to gain extra profit as he Page | 32 . Free Premium: Free premiums are small gifts included in the product package or sent to consumers who mail in a request along with a proof or purchase. Premium: Premium is an offer of an item either free or at a low price . Free Premium includes toys. Currently marketers ask themselves how to select a premium. which results from the premium itself as well as from extra packaging that may be needed. Even though it is also facing some problems like cost factor. and capitalize on the equity of the brands logo by incorporating it into the premium item. 2. Free premium have high impulse value and can provide an extra incentive to buy the product. Creative and will-constructed premium promotions are known delivering brand enhancing and sales building results. Again retailers can manipulate with customer and with the free premium scheme. Self-Liquidating Premiums: In Self-Liquidating Premiums consumers are requires to pay some or all of the cost of the premium plus handling and mailing costs. There are some guidelines for choosing a premium: Offer a brand that enhances your brand. balls.

some contest require consumers to read an ad or package or visit a store display to gather information needed to enter. It is easier to enter that¶s why sweepstakes more customers than contest. Page | 33 . it does not require a proof of purchase as condition for entry. Marketers must be careful not to make their contests too difficult to enter. Entrants need only submit their names for the prize drawing.can purchase from manufacturer and than can sale it to final user at lower cost. 5. as doing so might discourage participation among key prospects in the targets audience. To the customers contest is more attractive because they have mentality that they can win big prizes being offered. There is another term called ³Sweepstakes´ which is promotion where winners are determined purely by chance. Offering values to consumers through the premium products can create interest in the brand and goodwill that enhances the brands image. Contest: A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. Contest usually provide a purchase incentive by requiring a proof of purchase to enter or an entry form that is available from a dealer or advertisement. Benefits of Contest: y Contest and sweepstakes can get the customers involved with a brand by making the promotion product relevant. Here the aim is not to make profit on the premium item but rather just to cover costs and offer a value to the consumer. Consumers are not always responds to this type of sales promotion scheme. Self-Liquidating Premiums also has some limitation. It has very low redemption rate.

y Marketers can use contests and sweepstakes to build brand equity by connecting the prizes to the lifestyle. y Further. Bonus is also frequently used sales promotion tool because consumer response towards bonus pack is very positive. 6. Bonus Pack: Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units. y Bonus can be a good answer to competitor¶s promotion or introduction of a new brand. needs or interests of the target audience. y Marketers have cut back the uses of these promotional tools due to its lower effectiveness and fears that consumers might become dependent on them. Limitation of Contest: y In contest and sweepstakes winners are given prizes randomly so customers reluctant to pay more attention towards it. for marketers it increases so many other activities like managing all the entries and selecting winner from them and delivering prize to them which also requires so many time and it also increase cost. y A major problem in contest and sweepstakes is that of participation by professionals or hobbyists who submit many entries but have no intention of purchasing the product. Benefits from Bonus Pack: y It gives a direct way to provide extra value without having to get involved with complicated coupons or refund offers. Page | 34 . y Consumers can know more about the product as well as about company as direct involvement increases. The additional value of a bonus pack is generally obvious to the consumer and can have a strong impact on the purchase decision at the time of purchase.

These are the main consumer oriented sales promotion tools Marketers use any of them or more then one at a time depending on the sales promotion strategy. y A common limitation is of cost. Page | 35 . As marketers giving extra quantity it makes cost to the company. Event Marketing etc to name a few. The evaluation of sales promotion tools is measured in terms of their ability to accomplish specific objectives and consider whether the impact of the promotion will be immediate or delayed. Frequency Programs. y Another problem is that bonus packs may appeal primarily to current users who probably would have purchase the brand anyway or to promotion sensitive consumers who may not become loyal to the brand. There are some other sales promotion tools like Refunds and Rebates.y Bonus packs result in larger purchase orders and favorable display space in the store if the relationships with retailers are good. Limitation of Bonus Pack: y It requires additional space so retailers or distributors may create problem if the relation with distributors are not good as it does not give any extra benefit to them. but these tools are used very less compared to earlier noted main tools.

prospective buyers must be informed about its existence and its benefits and middlemen must be convinced to stock it. Later. Nature of the product: There are various product attributes which influence sales promotional strategy. marketer must know who their target market is. competition intensifies and more emphasis is placed on sales promotion to increase its sales. 3. if a product becomes successful. mass marketing requires mass sales promotion schemes. When the unit price is low the manufacturer as well as the customer has low risk but he can get the benefit of mass marketing. liking. 4. conviction and purchase. Therefore. Stage of product Life Cycle: Sales promotion strategies are influenced by the life cycle of a product. knowledge. Each stage defines a possible goal of promotion. A target market can be in any of the stages of buying hierarchy i. 2. awareness. perishable goods etc. Target Market: While doing sales promotion. Budget Available for Promotion: Page | 36 . otherwise there is no use of all effort because it leads to no where. Sales promotion scheme differ for products like its durability.Factors Influencing Consumer Oriented sales promotion: Mainly four factors should be taken into account while determining the sales promotion programme. When a new product introduced. preferences.e. > Target market > Nature of product > Stage of product life cycle > Budget available for promotion 1.

in the long term this positive effect may be diluted because a promotional campaign has no permanent effect in the sales of the firm Page | 37 . It is Purchase quantity. consumers are inducing to purchase another brand different from the one they would have purchased when there is no promotional incentive. and Budgeting by objective. Brand switching and Category expansion. consumer¶s total consumption of the product category is increased by the promotion. A business with ample funds can make more effective use of sales promotion programme than a firm with limited financial resources. The budget for sales promotion can be prepared by the following methods« Percentage of Sales Fixed funds available for sales promotion Following the competition. Second.The funds available for promotion are the ultimate determinant of the promotional programme. Finally. However. First. Why do Sales promotion schemes affect sales? There are three mechanisms behind these facts. consumer can increase the quantity they buy just because the product is on sale.

without sales there would be no business in the first place. a trading stamps campaign. The importance of a sales promotion strategy cannot be underestimated. y y y y y Consumer attitudes and buying patterns Your brand strategy Your competitive strategy Your advertising strategy Other external factors that can influence products availability and pricing. a free gift campaign. through demonstrations and exhibitions. This is because a sales promotion strategy is important to a business boosting its sales. This can be done through an advertising campaign. it is important that you keep the following points in mind. Page | 38 . When developing a sales promotion strategy for your business.Sales Promotion Strategy: Sales are the lifeblood of a business. and emails. telemarketing. it should have a sales promotion strategy in mind. public relation activities. therefore it is very important that if a business wants to succeed. however it is important that we first understand what a sales promotion strategy actually is and why it is so important. personal sales letters. Sales promotion is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. There are a variety of sales promotional strategies that a business can use to increase their sales. through temporary price cuts. A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. a free sampling campaign. and through door-to-door sales. through prize giving competitions. The primary objective of a sales promotion is to improve a company¶s sales by predicting and modifying your target customer¶s purchasing behavior and patterns.

This strategy targets its marketing efforts directly on the consumers with the hope that it will stimulate interest and demand for the product. Typical push sales promotion strategies include. give it shelf space. buy-back guarantees. and point-of-purchase displays. discounts. it is a combination of a push and a pull strategy. targeting both parties directly. This pull strategy is often used when distributors are reluctant to carry or distribute a product. wholesalers and distributors to carry your brand.There are three types of sales promotion strategies: y y y A push strategy A pull strategy or A combination of the two A Push Strategy: A µpush¶ sales promotion strategy involves µpushing¶ distributors and retailers to sell your products and services to the consumer by offering various kinds of promotions and personal selling efforts. contests. games. This strategy involves getting the consumer to µpull¶ or purchase the product/services directly from the company itself. and ultimately µpush¶ it forward to the consumer. It offers consumer incentives side by side with dealer discounts. What happens here is that a company promotes their product/services to a reseller who in turn promotes it to another reseller or to the consumer. The basic objective of this strategy is to persuade retailers. A Pull Strategy: A µpull¶ sales promotion strategy focuses more on the consumer instead of the reseller or distributor. coupons. A Combination of Two Strategies: A µcombination¶ sales promotion strategy is just that. Typical pull sales promotion strategies include. sweepstakes. free trials. It focuses both on the distributor as well as the consumers. promote it by advertising. cash refunds or rebates. Page | 39 . contests. samples. loyalty programs and rewards. and specialty advertising items.

theory of attitude and theory of prospects. attitudes and intentions with regard to the behavior. Here I will try to elaborate on two theory i. behavior towards coupons would be influenced by consumer intentions to use coupons. There was a significant negative relationship between coupon usage and perceived value of time indicating that the more a consumer valued his or her time.e. 1975) depict the consumer¶s decision to perform a specific behavior as the logical consequence of beliefs. Sales Promotion and theory of Attitude: Multi attribute models of attitude (Fishbein and Ajzen. Attitude Model: Behavior Reward or Punishment Purchase Not Purchase It is found that the impact of three attitudinal dimensions ± price consciousness. It should be noted that these theories are not final conclusion but it helps in making better decisions. The authors found that coupon usage increased when the consumer perceived higher satisfaction and pride with the use of coupons. Some marketers applied the theory of reasoned action to understand consumer¶s decision to use coupons. time value and satisfaction/pride ± on consumers¶ decision to use coupons. As per this model. Consumers¶ attitudes would be formed through their beliefs in Page | 40 .Sales Promotion and different theories: There are certain theories which can be considered by the marketers while deciding sales promotion strategies. Results of their study showed that there was a positive relationship between coupon usage and consumer price consciousness. Consumers¶ intention to use coupons would be determined by their attitudes and subjective norms. a consumer¶s intention to buy a brand may be based on positive/negative attitudes towards a promotion. As per the model. the lesser was the tendency to use coupons.

Results showed that price promotions led to a lower internal reference price while non price promotions did not affect internal reference price. This possibly accounts for the limited application of attitude models to examine consumer response to sales promotions. As per this theory of sales promotions it is stated that consumer¶s perception of promotion as a µloss¶ or µgain¶ is a function of the type of the promotion. which integrate the promotional gain with the purchase price will be viewed as reduced losses. in several studies (Perry and Gillespie. Sales Promotion and Prospect Theory: This theory proposes that people perceive outcomes of a choice as perceived µlosses¶ and µGains¶ relative to a subjective reference point/price. Page | 41 . On the other hand.the rewards and costs of using coupons while subjective norms would be formed through consumers¶ perception of whether important others think they should expend the effort to clip. 1976. save and use coupons. researchers have found discrepancies between stated attitudes and actual behavior. It is found that beliefs in the rewards of using coupons had high positive correlation with attitude while inconveniences and encumbrances had weak negative correlation with attitude Although attitude models provide important insights into the consumer decision-making process. The impact of price versus non price promotions on a consumer¶s reference price reasoned that price promotions would be integrated with the purchase price of the product and lead to a reduction of internal reference price. price promotions such as price off. Studies in different contexts have shown that attitudes are actually poor predictors of behavior. They proposed that non price promotions such as premium offers which segregate the promotional gain from the purchase price will be viewed as gains. Keesling and Kaynama. 2003). While non price promotions would be segregated from the purchase price of a product and not lead to a reduction of internal reference price.

Page | 42 . However it is shown that an almost equal number of subjects chose the non price promotion (a premium offer) as compared to the price promotion (a price discount). The reasoning that price promotions would be viewed as reduced losses and preferred less as compared to non price promotions which would be viewed as gains was not supported by the results of the study. Prospect theory based prediction that consumers will perceive non-price promotions as µgains¶ and price promotions as µreduced losses¶ is not based on a precise application of the theory. It can be argued that consumers will perceive a price promotion as a gain as the price reduction offered reduces the µloss¶ experienced by the purchase price.As per prospect theory to predict that price promotions would be viewed as reduced losses and chosen less often than non price promotion which would be viewed as gains. Contrary predictions can be derived from the theory.

Perceptions about their role in decision-making Retailer had relatively very low influence in affecting choice. daughter-in-law and child) was the decider of a toilet soap brand and not the Income provider (e. Price offs in their opinion had relatively a greater impact compared to any other form of sales promotion activity like Bonus packs. It could be inferred that visibility of information about the sales promotion activity at the point of purchase could result into the purchase of a promoted brand. daughter. son. head of the family). Perceptions about Response to Sales Promotion Offers They believed that younger age-groups were more experimental in nature. Retailers preferred price offs the most. Contests etc. then bonus pack. It could be inferred that visibility and awareness about the scheme were the critical success factors so that pull could be created. and sought/looked for or asked whether there were any) sales promotion schemes running on any toilet soap at the time of purchase.Sales promotion from the retailer¶s point of view: Perceptions on Scheme Preference It was found that retailer perceived price offs as a better form of sales promotion activity. Premium. amenable to trying new brands.g. in order of importance. Perceptions about Buying Roles Retailers viewed that the person who came to the shop (who may be a maid. Page | 43 . contests. premium.

bargaining power of a retailer. Also if additional incentive was offered it was subject to minimum performance requirement. Dealer-Retailer Dynamics At the time of sales promotion activities. supermarkets and big retailers were pampered and given special services and given better margins and better allowances. However. Many a times small retailers were only informed verbally about sales promotion schemes by the dealer salesmen during the scheduled weekly visits. Page | 44 .Perceptions about Communications of Sales Promotion Schemes Retailers perceived that role of word of mouth and television advertising played an important part in providing information inputs to consumers regarding sales promotion activities. dealers had tendency to push unwanted stocks onto the smaller retailers. Variations in Information Flow Smaller (non-supermarket. In fact these retailers preferred to stock variety of brands and wanted payment for shelf and window display to increase traffic into their store. small format store) retailers received relatively less support compared to supermarkets in terms of servicing. Margins It was found that in sales promotion schemes margins varied from 6 to15% depending of the size of the retail outlet. quantity ordered by him etc. Mostly margins were linked to size of the volumes that were ordered. information about sales promotion activities from the dealers. margins. Perceptions about terms and conditions Retailers were not found to be happy with sales promotion schemes where their margins were cut on the pretext of just fast movement of inventory of the brand being promoted.

Servicing during duration of Scheme In stock-out situation during the running of the sales promotion schemes. hence there was very little awareness leading to unsold stock till 6 months. it created pull and they were more than willing to stock such brands. Problem of left-over A leftover stock at the end of any scheme was required to be sold by the retailers before they ordered fresh stocks.Nature of POP Retailers indicated that most of the POP (Point of Purchase) materials were meant for brand advertisement and not for giving information regarding the schemes. This clearly indicated the disparity in treatment. smaller retailers had to wait for replenishment of stocks till the next scheduled weekly visit by the dealer salesman but big retailers were serviced on telephonic request for replenishment of stocks. For example Medimix and Dettol contest was not advertised on TV. Gifts for Retailer motivation Companies at times were rewarding retailers by giving free gifts like thermos flasks or clocks if they sold more than certain quantity in a given period.V. This approach of the company leads to misappropriation which in turn could result in adverse brand image. leftover stock was often dismantled (cut open buy one get one free) and sold them individually as a regular soap. Companies were making a half-hearted effort to motivate retailers. Page | 45 . is recalled even today. Perceptions about mass media announcements Retailers viewed that whenever sales promotion scheme was announced on TV. Thus it could be inferred that company¶s follow up was not adequate. While Lux Gold Star which was heavily promoted on T. In case of bonus packs scheme.

Handling Problems Many a time¶s retailers had to handle various sales promotion offers simultaneously in a category and also across categories and there was no formal communication planning either from the dealer or the company. Remembering each offer and handling was a problem especially for a small retailer which was often an as one-man show. Page | 46 .Post Promotion Behaviour Retailers observed that in most cases sales promotion scheme on a brand might encourage a buyer to switch a brand temporarily but he would revert back to original brand after promotion.

Thus. these groups might be lured through innovative and lucrative sales promotion offer.Sales Promotion from the Consumers point of view: Willingness to buy on sales promotion offer Sixty per cent of the sample did not show willingness to buy a brand due to promotion while 30% showed willingness and 10% were not sure. Long-term impact In order to understand ability of the promotions to increase long-term sales. Eighty per cent of the respondents indicated that they would not continue. while some of them felt that it was inferior than before. Page | 47 . This indicates that when 30% showed willingness and 10% consumers who were not sure. It is found that some customer strongly preferred to buy their regular brand and said that sales promotion would not weaken their loyalty towards the brand. Preference of Schemes: Price off was the most preferred type of scheme. Ability to induce trial Forty per cent of the respondents had said that sales promotion had the ability to induce trial which reinforces the above inference. It can be inferred that promotions were not leading to negative brand quality perceptions. Perceived Quality: Majority of respondents had a perception that the quality of the promoted brands remained the same during promotion. But 20% said they would. it could be inferred that promotions in this category (low involvement products) might encourage trial and brand switching but not long term loyalty. Maximum customers¶ ranked priceoffs as number one or two. respondents were asked about continuity of purchase of a brand after the withdrawal of promotion.

The retailers had the perception that those schemes which were announced through mass media had better response. This indicates that consumers believed that companies were undertaking such activities only for their own benefit and not for the benefit of consumers. Since retailers observe consumers in store behaviour were frequently and directly. ³to increase sales´ was ranked highest followed by ³to attract switchers´ and ³to sell excess stocks´. Such inputs from the retailers would be useful to companies. their perceptions regarding providing consumer behaviour are likely to be accurate. Page | 48 . This was reinforced by the consumer survey which showed that recall in case of heavily promoted schemes on TV was found to be very high. it is evident that there was a matching of perceptions regarding nature of scheme (price offs as most preferred type of scheme mentioned by consumers and retailers¶ perceptions about consumer preferences). While providing value to customers´ and ³to reinforce company image´ were ranked lowest. Findings from retailer and consumer perception studies.Perceptions regarding underlying company motivations On tapping perceptions¶ regarding underlying company motivations for sales promotion. Thus both viewed that companies were using sales promotion activities mainly to increase short term sales or encourage switching or selling excess stock and not really to give value benefit or enhance/reinforce brand/company image. Retailers¶ prediction of companies¶ motivation for offering sales promotion were matching with the consumer perception regarding the same.

The term also describes behavior of buyers who are selective about which products or services they purchase at what locations and prices. Both of these firms choose not to serve other customers with a higher willingness to pay because it would require significant changes to efficient operating models.Cherry Picking Merriam-Webster Dictionary defines cherry picking as ³selecting the best or most desirable´ or to describe one idiom with another ³taking the pick of the litter. price-conscious consumers often visit more than one store in search of special prices ± a bargain-hunting practice known in the industry as µcherry-picking. as when financial institutions and insurance companies are vilified because they refuse to serve high-risk populations. In both the seller and buyer contexts. For example.¶´ (Mogelonsky 1994) Consumer Reports recommends that smart shoppers ³scrutinize the food-day ads and µcherry pick¶ the specials. ³Instead of going to the same outlet each week. The Cambridge International Dictionary of Idioms defines cherry picking as choosing ³only the best people or things in a way that is not fair´. Sometimes the phrase is used to describe a seller who is selective about which customers they wish to serve. every week. to complete their grocery shopping. Southwest Airlines cherry picks price sensitive travelers who place little premium on standard airline perks and Dell Computer cherry picks customers who are capable of buying over the Internet and are savvy enough to make the necessary customization choices without much hand holding.´ noting that 20% of its readers show little loyalty among supermarkets (Consumer Reports 1988) Page | 49 .´ The term cherry picking is used to describe the behavior of both sellers and buyers in a variety of settings. the essential meaning of cherry picking is the same² take the best and leave the rest.

CHERRY PICKING STRATEGIES  SWITCH STORES ACROSS WEEKS  Dominick¶s one week jewel the next  SWITCH STORES WITHIN A DAY OR WEEK  Dominick¶s and jewel the same day or week  OUR OPERATIONALIZATION   Visit two or more stores on the same shopping day Reduces the likelihood of confusing true cherry picking with fill in trips Page | 50 .2 times per week but shops 3-4 different chains on a regular basis. creating plenty of opportunities to cherry pick.  BETWEEN STORES  The typical shopper visits the supermarkets 2.BUYER SIDE CHERRY PICKING  WITHIN STORE  Levy and Witz (2004) define cherry pickers who visit the store and only buy merchandise sold at big discounts.

Classification of Shopper Types REF: Research paper on cherry picking by Edward Cox and Stephen Hoch Page | 51 .

KEY FINDINGS Page | 52 .

2 2.6 58.0 Percent 25.4 19.0 100.3 41.8 78.7 100.3 24.6 2.0 Page | 53 .8 39.0 Valid Percent 25.0 75.3 100.Q.1 Do you purchase the same brand every time? Statistics HOUSE PACKED SOAP N Valid Missing 80 22 TOOTHPASTE 60 42 MASALA 45 57 PICKLE 35 67 MOSQUITO REPELLENT 30 72 CLEANING PRODUCTS 65 37 Frequency Table SOAP Cumulative Frequency Valid yes no Total Missing .0 21.00 System Total Total 35 25 60 40 2 42 102 Percent 34.0 Valid Percent 58.00 System Total Total 20 60 80 20 2 22 102 Percent 19.0 TOOTHPASTE Cumulative Frequency Valid yes no Total Missing .0 41.2 100.5 58.0 100.6 100.0 Percent 58.

0 15.3 16.1 53.0 55.7 100.1 100.6 2.00 System Total Total 25 5 30 70 2 72 102 Percent 24.0 Percent 57.PACKED MASALA Cumulative Frequency Valid yes no Total Missing .3 100.4 68.1 42.4 55.6 100.6 24.0 PICKLE Cumulative Frequency Valid yes no Total Missing Total .0 Percent 44.5 44.9 100.9 2.5 4.00 20 15 35 65 100 Percent 20.0 Valid Percent 83.0 Percent 83.9 100.0 MOSQUITO REPELLENT Cumulative Frequency Valid yes no Total Missing .0 Valid Percent 57.0 100.4 100.0 70.0 35.9 29.0 Valid Percent 44.6 100.0 65.00 System Total Total 20 25 45 55 2 57 102 Percent 19.0 Page | 54 .

ot l . . . . ot l . System . issing . . 48% 52%   ©© Percent  %  "!  %  "! $ #  ¤ HOUSE  %  "   ! ' " !   ! £ £¢ ¡ E   I G P ODUCTS l ti e §©¨§¦¥ % '  # #"  #   &  &   .  & ( YES NO Page | 55 . .C Percent V li Percent V li es . . no ot l .

Packed Masala: 55. Toothpaste: 41.1 % said that they do purchase the same brand every time. Page | 56 .9% of the respondents said that they do not purchase the same brand every time while 57.9 % said that they do purchase the same brand every time.INTERPRETATION: Soap: 75% of the respondents said that they do not purchase the same brand every time while 25 % said that they do purchase the same brand every time. House Cleaning Products: 53.3 % said that they do purchase the same brand every time. Mosquito Repellent: 16.1% of the respondents said that they do not purchase the same brand every time while 44.7% of the respondents said that they do not purchase the same brand every time while 58.2 % said that they do purchase the same brand every time.3 % said that they do purchase the same brand every time.7% of the respondents said that they do not purchase the same brand every time while 83. Overall: 52% of the respondents said that they do not purchase the same brand every time while 48 % said that they do purchase the same brand every time.8% of the respondents said that they do not purchase the same brand every time while 46. Pickle: 42.

Page | 57 . Overall.7% of consumers in the mosquito repellent category agreed that they switch brands regularly.The consumer behaviour related to brand switching varies a lot across different products with 75 % of consumers in the soap category agreeing that they switch brands regularly while only 16. to get a fair idea an average of these responses show that 52% of the consumers switch brands for one or the other reasons while 48% of the consumers stick to the same brand.

Q.2 Why do you change your brand? Case Processing Summary Cases Valid N Why change soap * income Why change toothpaste * income Why change packed masala * income Why change pickle * income Why change mosquito repellent * income 35 30 34.9% 100 100.0% 100.7% 70.0% Why change cleaning products * income 65 63.8% N 25 40 Missing Percent 26.6% 100 100 100.2% N 100 100 Total Percent 100.3% 100 100.7% 35 36.0% 46 45.0% 75 60 Percent 73.0% Page | 58 .5% 58.3% 29.0% 100.1% 54 54.4% 65 70 65.5% 41.

Why change soap * income Cross tabulation Count income less than 25000 Why change soap schemes trial better quality Total 10 0 10 20 26000-50000 10 0 15 25 51000-75000 4 0 11 15 more than 75000 5 0 10 15 Total 29 5 41 75 Page | 59 .

Why change toothpaste * income Cross tabulation income more than less than 25000 whychangetoothpaste schemes trial better quality Total 10 25 15 10 60 6 0 4 26000-50000 18 3 4 51000-75000 1 3 11 75000 0 0 10 Total 25 6 29 Page | 60 .

PACKED MASALA * income Cross tabulation Count income less than 25000 PACKED MASALA schemes trial better quality Total 11 7 2 20 26000-50000 3 0 3 6 51000-75000 4 0 6 10 more than 75000 0 5 5 10 Total 18 12 16 46 Page | 61 .

PICKLE * income Crosstabulation Count income less than 25000 PICKLE schemes trial better quality Total 10 3 2 15 26000-50000 5 0 5 10 51000-75000 1 0 4 5 more than 75000 0 0 5 5 Total 16 3 16 35 Page | 62 .

Why change mosquito repellent * income Cross tabulation Count income less than 25000 whychangemosquito trial better quality Total 5 10 15 26000-50000 0 10 10 51000-75000 0 5 5 Total 5 25 30 Page | 63 .

Why change cleaning * income Cross tabulation Count income less than 25000 whychangecleaning schemes trial better quality Total 10 10 5 25 26000-50000 5 0 5 10 51000-75000 15 0 0 15 more than 75000 0 5 10 15 Total 30 15 20 65 Page | 64 .

000 category claim so. Packed Masala: The cross tabulation of the reason of changing a brand with the income of the respondent in the packed masala category shows that there is a change in the reason with increasing income of the respondent.000 say the they change brand due to the promotional schemes while only 5 out of 15 respondents of more than 75. 6 out of 10 respondents of income less than 25. 11 out of 20 respondents of income less than 25.000 say the they Page | 65 .000 say the they change brand due to the promotional schemes while only 0 out of 10 respondents of more than 75.000 category claim so.INTERPRETATION: Soap: The cross tabulation of the reason of changing a brand with the income of the respondent in the soap category shows that there is a change in the reason with increasing income of the respondent. 6 out of 10 responden ts of income less than 25. 10 out of 15 respondents of income less than 25. Pickle: The cross tabulation of the reason of changing a brand with the income of the respondent in the pickle category shows that there is a change in the reason with increasing income of the respondent.000 category claim so. Toothpaste: The cross tabulation of the reason of changing a brand with the income of the respondent in the toothpaste category shows that there is a change in the reason with increasing income of the respondent.000 say the they change brand due to the promotional schemes while only 0 out of 10 respondents of more than 75.

a gradual shift towards better quality rather than promotional schemes as a reason for changing a brand is seen as the income slab increases.change brand due to the promotional schemes while only 0 out of 5 respondents of more than 75.000 category claim so.000 say the they change brand due to the better quality while all 5 respondents of more than 75. Hence.000 say the they change brand due to the promotional schemes while only 0 out of 15 respondents of more than 75.000 category claim so. 10 out of 15 respondents of income less than 25. Though the shift varies from product to product but a general trend towards better quality is seen as income increases. Mosquito Repellent: The cross tabulation of the reason of changing a brand with the income of the respondent in the mosquito repellent category shows that there is a change in the reason with increasing income of the respondent. Page | 66 . House Cleaning Products: The cross tabulation of the reason of changing a brand with the income of the respondent in the house cleaning products category shows that there is a change in the reason with increasing income of the respondent.000 category claim so. 10 out of 25 respondents of income less than 25.

0 100.0 Page | 67 .0 Valid Percent 75.0 100.Q.2 100.0 21.2 2.0 Percent 100.6 2.0 41.0 TOOTHPASTE Cumulative Frequency Valid Missing yes .00 System Total Total 60 20 80 20 2 22 102 Percent 58.0 Percent 75.6 100.4 19.0 Valid Percent 100.0 25.3 Was there any promotional scheme with this brand? Frequencies Statistics HOUSE PACKED SOAP N Valid Missing 80 22 TOOTHPASTE 60 42 MASALA 45 57 PICKLE 35 67 MOSQUITO REPELLENT 30 72 CLEANING PRODUCTS 65 37 Frequency Table SOAP Cumulative Frequency Valid yes no Total Missing .00 System Total Total 60 40 2 42 102 Percent 58.8 39.6 78.8 19.

0 Valid Percent 50.00 System Total Total 20 15 35 65 2 67 102 Percent 19.0 PICKLE Cumulative Frequency Valid yes no Total Missing .7 34.7 100.0 65.7 100.0 70.6 100.1 100.0 Percent 50.0 Percent 57.6 2.00 System Total Total 30 15 45 55 2 57 102 Percent 29.7 33.4 68.4 14.1 53.7 29.0 Page | 68 .0 100.7 14.7 2.PACKED MASALA Cumulative Frequency Valid yes no Total Missing .0 Valid Percent 66.0 Valid Percent 57.3 100.3 63.9 2.0 100.0 Percent 66.6 14.0 55.0 50.9 100.1 42.00 System Total Total 15 15 30 70 2 72 102 Percent 14.7 44.0 MOSQUITO REPELLENT Cumulative Frequency Valid yes no Total Missing .9 100.

22% 78% 53 7 77E B A@ 7 77E B A@ DD 43 1 HOUSE CLE 7 77E B 6B 7A B CB D B6 9 98 @C 0 0) I G P ODUCTS A7E DB A 8B 86 76 8 2 77 3 F 3 F 43 3 F G YES NO Page | 69 . . issing . . .Cumul ti e r equency Percent V li Percent Percent V li yes no . . ot l . . . System . ot l . . ot l .

Overall: 78 % of the respondents agreed that there was a promotional scheme for the brand they bought while 22 % of the respondents did not.9 % of the respondents did not.3 % of the respondents did not.3% of the respondents agreed that there was a promotional scheme for the brand they bought while 7. Toothpaste: 100% of the respondents agreed that there was a promotional scheme for the brand they bought. House Cleaning Products: 92. Packed Masala: 66. Page | 70 .7 % of the respondents did not. Pickle: 57. Mosquito Repellent: 50% of the respondents agreed that there was a promotional scheme for the brand they bought while 50 % of the respondents did not.7 % of the respondents agreed that there was a promotional scheme for the brand they bought while 33.INTERPRETATION: Soap: 75% of the respondents agreed that there was a promotional scheme for the brand they bought while 25 % of the respondents did not.1% of the respondents agreed that there was a promotional scheme for the brand they bought while 42.

From this analysis it can be understood that 78 % of the respondents availed some or the other scheme from the 6 selected products and save some money by cherry picking these products. Page | 71 .

0 41.7 100.8 39.2 100.7 33.2 19.00 System Total Total 60 40 2 42 102 Percent 58.0 Valid Percent 100.2 2.3 100.0 TOOTHPASTE Cumulative Frequency Valid price promotion free gifts Total Missing .0 41.0 Page | 72 .00 System Total Total 40 20 60 40 2 42 102 Percent 39.0 Percent 100.0 Valid Percent 66.2 2.0 Percent 66. yes which one? Frequencies Statistics HOUSE PACKED SOAP N Valid Missing 60 42 TOOTHPASTE 60 42 MASALA 30 72 PICKLE 20 82 MOSQUITO REPELLENT 15 87 CLEANING PRODUCTS 60 42 Frequency Table SOAP Cumulative Frequency Valid Missing price promotion .Q.2 100.8 39.4 If.6 58.

6 78.00 System Total Total 15 85 2 87 102 Percent 14.3 100.0 Percent 100.0 85.7 83.PACKED MASALA Cumulative Frequency Valid Missing price promotion .6 100.00 System Total Total 30 70 2 72 102 Percent 29.0 Page | 73 .4 100.0 Percent 100.0 Percent 100.4 68.6 2.4 2.0 MOSQUITO REPELLENT Cumulative Frequency Valid Missing price promotion .0 Valid Percent 100.0 Valid Percent 100.3 2.0 Valid Percent 100.0 70.0 PICKLE Cumulative Frequency Valid Missing price promotion .00 System Total Total 20 80 2 82 102 Percent 19.0 80.

Cumul ti e r equency Percent V li Percent Percent V li rice romotion . . . 6% PRICE PROMOTION COUPONS FREE GIFTS REFUNDS LOYALTY INCENTIVE 94% TR W WW` W WW` SR W WW` e `b We e dc Y YX P HOUSE CLE I IH I G P ODUCTS eW` eb e Wb WV Q U R f R f WW U a SR Page | 74 . ot l . System . . ot l . issing .

Overall: 94 % of the respondents bought the brand with which there was a price promotion scheme while 6 % of the respondents bought the brand which had free gifts scheme. Toothpaste: 66.INTERPRETATION: Soap: 100 % of the respondents bought the brand with which there was a price promotion scheme. Page | 75 .7 % of the respondents bought the brand with which there was a price promotion scheme while 33. Mosquito Repellent: 100 % of the respondents bought the brand with which there was a price promotion scheme. Pickle: 100 % of the respondents bought the brand with which there was a price promotion scheme. Packed Masala: 100 % of the respondents bought the brand with which there was a price promotion scheme. House Cleaning Products: 100 % of the respondents bought the brand with which there was a price promotion scheme.3 % of the respondents bought the brand which had free gifts scheme.

2 2.0 Valid Percent 83.0 Valid Percent 16.2 2.8 58.00 System Total Total 50 10 60 40 2 42 102 Percent 49.3 16.0 9.2 100.7 100.0 Page | 76 .0 TOOTHPASTE Cumulative Frequency Valid 10-15 more than20 Total Missing .0 58.5 How much did you save by availing this scheme? Frequencies Statistics HOUSE PACKED SOAP N Valid Missing 60 42 TOOTHPASTE 60 42 MASALA 30 72 PICKLE 20 82 MOSQUITO REPELLENT 20 82 CLEANING PRODUCTS 60 42 Frequency Table SOAP Cumulative Frequency Valid 10-15 more than20 Total Missing .8 39.0 Percent 83.00 System Total Total 10 50 60 40 2 42 102 Percent 9.3 100.0 Percent 16.7 100.8 39.8 49.7 83.3 100.0 41.0 41.Q.2 100.

0 80.6 29.6 78.0 Percent 33.0 Valid Percent 33.0 50.8 19.0 70.0 Valid Percent 50.0 Page | 77 .6 2.9 4.0 MOSQUITO REPELLENT Cumulative Frequency Valid 0-5 15-20 more than20 Total Missing .8 19.8 9.4 100.0 50.9 9.00 System Total Total 5 5 10 20 80 2 82 102 Percent 4.00 System Total Total 10 20 30 70 2 72 102 Percent 9.0 Percent 50.0 100.PACKED MASALA Cumulative Frequency Valid 15-20 more than20 Total Missing .3 66.8 19.0 Valid Percent 25.6 78.4 2.0 100.0 25.0 80.4 2.0 100.4 100.0 50.6 100.3 100.00 System Total Total 10 10 20 80 2 82 102 Percent 9.0 100.4 68.0 Percent 25.7 100.0 PICKLE Cumulative Frequency Valid 15-20 more than20 Total Missing .

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Page | 78

INTERPRETATION:
Soap: 16.7 % of the respondents said that they saved Rs.10-15 by availing the scheme with the product while 83.3 % of the respondents said that they save more that Rs.20 by availing the scheme.

Toothpaste: 83.3 % of the respondents said that they saved Rs.10-15 by availing the scheme with the product while 16.7 % of the respondents said that they save more that Rs.20 by availing the scheme.

Packed Masala: 33.3 % of the respondents said that they saved Rs.15-20 by availing the scheme with the product while 66.7% of the respondents said that they save more that Rs.20 by availing the scheme.

Pickle: 50 % of the respondents said that they saved Rs.15-20 by availing the scheme with the product while 50 % of the respondents said that they save more that Rs.20 by availing the scheme.

Mosquito Repellent: 25% of the respondents said that they saved Rs.0-5, 25 % of the respondents said that they saved Rs.15-20 by availing the scheme with the product while 50 % of the respondents said that they save more that Rs.20 by availing the scheme.

House Cleaning Products: 8.3 % of the respondents said that they saved Rs.5-10, 16.7 % of the respondents said that they saved Rs.10-15 by availing the scheme with the product while 8.3 % of the respondents said that they save more that Rs.15-20 by availing the scheme.66.7 % of the respondents said that they save more than Rs.20 by availing he scheme. Page | 79

Overall: 2 % of the respondents said that they saved Rs.0-5, 2 % of the respondents said that they saved Rs.5-10, 28 % of the respondents said that they saved Rs.10-15 by availing the scheme with the product while 12 % of the respondents said that they save more that Rs.1520 by availing the scheme.56 % of the respondents said that they save more than Rs.20 by availing he scheme.

Page | 80

9 44.0 Percent 100.2 100.1 100.8 69.1 2.1 63.0 Page | 81 .0 Percent 30.3 100.6 Did you have to buy more qty than intended to avail the scheme? Frequencies Statistics HOUSE PACKED SOAP N Valid Missing 55 47 TOOTHPASTE 65 37 MASALA 30 72 PICKLE 15 87 MOSQUITO REPELLENT 15 87 CLEANING PRODUCTS 65 37 Frequency Table SOAP Cumulative Frequency Valid Missing yes .Q.0 Valid Percent 100.7 34.00 System Total Total 20 45 65 35 2 37 102 Percent 19.6 44.0 Valid Percent 30.0 TOOTHPASTE Cumulative Frequency Valid yes no Total Missing .00 System Total Total 55 45 2 47 102 Percent 53.0 46.0 36.8 100.3 2.

0 Percent 100.0 Valid Percent 100.4 68.0 PICKLE Cumulative Frequency Valid Missing no .7 100.7 83.0 70.0 Percent 16.3 100.0 Valid Percent 16.0 Valid Percent 100.0 Percent 100.0 85.6 2.3 2.PACKED MASALA Cumulative Frequency Valid yes no Total Missing .0 85.3 100.00 System Total Total 5 25 30 70 2 72 102 Percent 4.6 100.0 MOSQUITO REPELLENT Cumulative Frequency Valid Missing no .5 29.3 2.00 System Total Total 15 85 2 87 102 Percent 14.3 100.7 83.7 83.00 System Total Total 15 85 2 87 102 Percent 14.9 24.0 Page | 82 .

issing . 2. 00. 66% h h ot l 02 00. 2 2.0 34% YES NO h ot l . Percent V li yes no . .Cumul ti e r equency Percent V li Percent .0 h 0 .0 ot l .00 System .0 –” dd g ™ dd •” ’ HOUSE CLE f f— g ˜g d ge g eg ™˜ ‘ ‘ I G P ODUCTS —g —e dg — e “ ” i ” i •” ” i j Page | 83 . 00.

3% of the respondents said that they did not have to buy more to avail the scheme. Page | 84 . Packed Masala: 16.INTERPRETATION: Soap: 100 % of the respondents said that they had to buy more than intended to avail the scheme. Mosquito Repellent: 100 % of the respondents said that they had to buy more than intended to avail the scheme.7 % of the respondents said that they has to buy more than intended to avail the scheme while 83.7 % of the respondents said that they has to buy more than intended to avail the scheme while 92. House Cleaning Products: 7. Overall: 34 % of the respondents said that they has to buy more than intended to avail the scheme while 66% of the respondents said that they did not have to buy more to avail the scheme. Toothpaste: 30.2% of the respondents said that they did not have to buy more to avail the scheme. Pickle: 100 % of the respondents said that they had to buy more than intended to avail the scheme.8 % of the respondents said that they has to buy more than intended to avail the scheme while 69.3% of the respondents said that they did not have to buy more to avail the scheme.

0 46.2 100.0 Percent 33.2 58.1 100.3 100.2 2.0 Valid Percent 33.00 System Total Total 55 45 2 47 102 Percent 53.00 System Total Total 20 40 60 40 2 42 102 Percent 19.3 66.0 41.7 Did you spend more than intended to avail the scheme? Frequencies Statistics HOUSE PACKED SOAP N Valid Missing 55 47 TOOTHPASTE 60 42 MASALA 35 67 PICKLE 15 87 MOSQUITO REPELLENT 15 87 CLEANING PRODUCTS 60 42 Frequency Table SOAP Cumulative Frequency Valid Missing yes .8 39.0 TOOTHPASTE Cumulative Frequency Valid yes no Total Missing .0 Percent 100.0 Page | 85 .1 2.0 Valid Percent 100.Q.7 100.6 39.9 44.

00 System Total Total 5 30 35 65 2 67 102 Percent 4.7 100.9 29.0 Percent 100.0 Percent 100.0 Valid Percent 100.7 100.0 PICKLE Cumulative Frequency Valid Missing no .3 100.00 System Total Total 15 85 2 87 102 Percent 14.4 34.3 2.0 Valid Percent 100.7 83.0 85.0 MOSQUITO REPELLENT Cumulative Frequency Valid Missing no .0 Valid Percent 14.3 100.3 63.7 2.00 System Total Total 15 85 2 87 102 Percent 14.0 Page | 86 .3 85.0 85.7 83.3 100.PACKED MASALA Cumulative Frequency Valid yes no Total Missing .0 Percent 14.0 65.3 2.

0 Percent 00.Cumul ti e r equency Percent V li Percent 00.0 ot l 2 .0 33% YES u u V li no 0 .2 67% u ot l 02 00.2 2 2.0 issing . qo po m HOUSE CLE yx t ts l lk u uw I G P ODUCTS w r w n o z v po o z NO Page | 87 .00 System 0 .

Mosquito Repellent: 100 % of the respondents said that they had to spend more than intended to avail the scheme. House Cleaning Products: 100 % of the respondents said that they had to spend more than intended to avail the scheme. Overall: 33 % of the respondents said that they had to spend more than intended to avail the scheme while rest 67 % said that they did not have to spend more than intended to avail the scheme.3 % of the respondents said that they had to spend more than intended to avail the scheme while rest 66. Pickle: 100 % of the respondents said that they had to spend more than intended to avail the scheme.7 % said that they did not have to spend more than intended to avail the scheme.7 % said that they did not have to spend more than intended to avail the scheme.3 % of the respondents said that they had to spend more than intended to avail the scheme while rest 85.INTERPRETATION: Soap: 100 % of the respondents said that they had to spend more than intended to avail the scheme. Packed Masala: 14. Toothpaste: 33. Page | 88 .

8 If yes how much? Frequencies Statistics HOUSE PACKED SOAP N Valid Missing 60 42 TOOTHPASTE 20 82 MASALA 5 97 PICKLE 0 102 MOSQUITO REPELLENT 0 102 CLEANING PRODUCTS 0 102 Frequency Table SOAP Cumulative Frequency Valid 15-20 more than20 Total Missing .6 78.7 83.0 Valid Percent 16.3 100.00 System Total Total 20 80 2 82 102 Percent 19.4 2.8 39.7 100.0 Page | 89 .0 58.00 System Total Total 10 50 60 40 2 42 102 Percent 9.8 49.0 80.4 100.0 Valid Percent 100.0 41.0 Percent 16.0 TOOTHPASTE Cumulative Frequency Valid Missing more than20 .2 100.0 Percent 100.Q.2 2.

0 Total 100 100.0 100 100.0 Valid Percent 100.0 MOSQUITO REPELLENT Frequency Missing .00 100 Total { PRODUCTS Percent 100.0 Percent 100.0 95.PACKED MASALA Cumulative Frequency Valid Missing more than20 .0 HOUSE CLEANIN Frequency Missing .00 100 Percent 100.9 93.00 System Total Total 5 95 2 97 102 Percent 4.0 Total 100 100.00 100 Percent 100.1 100.0 PICKLE Frequency Missing .0 Page | 90 .1 2.

12% RS 0-5 RS 5-10 RS 10-15 RS 15-20 ORE THAN 20 88% | A OUNT SPENT RS 0-5 RS 5-10 RS 10-15 RS 15-20 ORE THAN 20 ORE NO OF RESPONSES 0 0 0 10 73 } | | Page | 91 .

INTERPRETATION: Soap: 16. House Cleaning Products: 100% of the respondents said that they had to spend Rs. Packed Masala: 100% of the respondents said that they had to spend Rs.15-20 to availing the scheme with the product while 88 % of the respondents said that they had to spend Rs.7 % of the respondents said that they had to spend Rs.0 more to availing the scheme. Overall: 12 % of the respondents said that they had to spend Rs.20 more to availing the scheme.20 more to availing the scheme.20 more to availing the scheme. Pickle: 100% of the respondents said that they had to spend Rs.0 more to availing the scheme.20 more to availing the scheme. Mosquito Repellent: 100% of the respondents said that they had to spend Rs.15-20 to availing the scheme with the product while 83.0 more to availing the scheme. Page | 92 . Toothpaste: 100% of the respondents said that they had to spend Rs.3 % of the respondents said that they had to spend Rs.

76309 Descriptive Statistics N loyaltyincentive Valid N (listwise) 15 15 Minimum 3.75987 Descriptive Statistics N freegifts Valid N (listwise) 100 100 Minimum 1. Deviation .00 Maximum 4. Deviation .9 which promotional activities do you prefer? Descriptive Statistics N pricepromotion Valid N (listwise) 100 100 Minimum 1. Deviation .0526 Std.00 Mean 3.00 Mean 3.00 Maximum 33. Deviation 6.00 Maximum 4.4500 Std.85694 Descriptive Statistics N refunds Valid N (listwise) 95 95 Minimum 2.00 Maximum 4.Q.00 Mean 1.00 Mean 3.48795 Page | 93 .00 Maximum 3.6667 Std.67232 Descriptive Statistics N coupons Valid N (listwise) 90 90 Minimum 2. Deviation .3889 Std.5500 Std.00 Mean 3.

INTERPRETATION: HEIRARCHY OF PREFERENCE OF BUYERS FREE GIFTS COUPONS REFUNDS Page | 94 ~ LOYALTY INCENTIVE PRICE PRO OTION .

0% 85.0% 40. H1: The amount spent more to avail the scheme is dependent on the income of the buyer.0% 65.0% 100.0% 35.0% 100.0% 100.0% N 45 40 65 84 85 Missing Percent 45.0% 60.0% 16.0% 39 39.0% Page | 95 .0% N 100 100 100 100 100 Total Percent 100.0% 84.0% 100 100.HYPOTHESIS Ho: The amount spent more to avail the scheme is not dependent on the income of the buyer.0% 15.0% 100.0% 55 60 35 16 15 Percent 55. Crosstabs Case Processing Summary Cases Valid N SOAP * income TOOTHPASTE * income PACKED MASALA * income PICKLE * income MOSQUITO REPELLENT * income HOUSE CLEANING PRODUCTS * income 61 61.

333 a df 3 3 1 sided) .506 . Sig.0%) have expected count less than 5. Page | 96 .507 . 4 cells (50.27.230 55 a. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.SOAP * income Crosstab Count income less than 25000 SOAP yes no Total 9 1 10 26000-50000 17 3 20 51000-75000 12 3 15 more than 75000 10 0 10 Total 48 7 55 Chi-Square Tests Asymp.631 3. The minimum expected count is 1.320 .

018 9.TOOTHPASTE * income Crosstab Count income less than 25000 TOOTHPASTE Yes no Total 5 5 10 26000-50000 10 15 25 51000-75000 5 10 15 more than 75000 0 10 10 Total 20 40 60 Chi-Square Tests Asymp.0%) have expected count less than 5.080 . (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 6. 2 cells (25.021 . Page | 97 . Sig.33.773 5.750 a Df 3 3 1 sided) .630 60 a. The minimum expected count is 3.

The minimum expected count is 3. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4. Page | 98 .471 4. Sig.043 4.0%) have expected count less than 5.107 .121 .PACKED MASALA * income Crosstab Count income less than 25000 PACKED MASALA Yes no Total 2 13 15 51000-75000 4 6 10 more than 75000 5 5 10 Total 11 24 35 Chi-Square Tests Asymp.085 35 a.220 a df 2 2 1 sided) .14. 3 cells (50.

Sig.069 16 df 2 2 1 sided) .117 .284 2. The minimum expected count is 2.130 .0%) have expected count less than 5. Page | 99 .PICKLE * income Crosstab Count income less than 25000 PICKLE yes no Total 2 4 6 26000-50000 1 4 5 51000-75000 4 1 5 Total 7 9 16 Chi-Square Tests Asymp. 6 cells (100. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4.150 a.19.080a 4.

(2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.33.322 1.000 2.343 . The minimum expected count is 2.263 .0%) have expected count less than 5.MOSQUITO REPELLENT * income Crosstab Count income less than 25000 MOSQUITO REPELLENT yes no Total 3 2 5 26000-50000 1 4 5 51000-75000 3 2 5 Total 7 8 15 Chi-Square Tests Asymp. 6 cells (100.000 15 a.143 a df 2 2 1 sided) . Sig. Page | 100 .

The minimum expected count is 1.121 a Df 3 3 1 sided) .373 . (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.096 3. Sig.776 61 a.343 .0%) have expected count less than 5. 4 cells (50.336 2.HOUSE CLEANIN PRODUCTS * income Crosstab Count Income less than 25000 HOUSE CLEANING PRODUCTS Total yes no 2 23 25 26000-50000 2 8 10 51000-75000 4 11 15 more than 75000 3 8 11 Total 11 50 61 Chi-Square Tests Asymp. Page | 101 .80.

Thus it can be inferred that there Page | 102 . Thus it can be inferred that there is association between the amounts spent more to avail the scheme and the income of the buyer. House Cleaning Products: The significance level for the soap category for chi square test when cross tabulated with the income of the buyer is 0.306. Thus it can be inferred that there is association between the amounts spent more to avail the scheme and the income of the buyer. Pickle: The significance level for the soap category for chi square test when cross tabulated with the income of the buyer is 0. Thus it can be inferred that there is association between the amounts spent more to avail the scheme and the income of the buyer. Thus it can be inferred that there is association between the amounts spent more to avail the scheme and the income of the buyer.130.80.373.121.343.INTERPRETATION: Soap: The significance level for the soap category for chi square test when cross tabulated with the income of the buyer is 0. Toothpaste: The significance level for the soap category for chi square test when cross tabulated with the income of the buyer is 0. Mosquito Repellent: The significance level for the soap category for chi square test when cross tabulated with the income of the buyer is 0. Packed Masala: The significance level for the soap category for chi square test when cross tabulated with the income of the buyer is 0. Thus it can be inferred that there is association between the amounts spent more to avail the scheme and the income of the buyer.

Hence Ho is rejected.  Hence the amount spent more to avail the scheme is dependent on the income of the buyer.is association between the amounts spent more to avail the scheme and the income of the buyer. Overall: Hence it can be inferred that the amount spent more to avail the scheme has association with the income of the buyer. We can conclude from this that the buyer spends more in accordance to his income rather than attractiveness of the scheme. Page | 103 .

CONCLUSIONS Page | 104 .

7% of respondents under mosquito repellent category agreed to it. y Schemes giving instant cash benefit are preferred by the consumers.) y The reason of switching brands varies with the income of the buyer. Most of the buyers purchase products with price promotion schemes with 94 % of the buyers bought products with price promotion. The reason of switching brand tends towards better quality as the income of the individual increases.15-20 on a single product. y The buyers save big amounts by availing the scheme.y More than half of the population of consumers switch brands of FMCG products due to some reason or the other. 20 on a single product during a single shopping trip. (75% of respondents under soap category agreed that they switch brands regularly while only 16. Though the shift varies from product to product but a general trend towards better quality is seen as income increases. The reason with lower income groups being schemes and with higher income groups being better quality of the product. Page | 105 . 28% saved Rs. 56% of the buyers save more than Rs.10-15 on a single product while 12% save Rs.) y The percentage of consumers switching brands varies across different FMCG products. (52% of the consumers agreed that they switch brands regularly.

88% of the buyers agreed that they had to spend more than Rs. y The most preferred promotional activity by the consumers is price promotion followed by loyalty incentive.100% of respondents under soap category agreed that they had to buy more than intended to avail the scheme but only 7% of the respondents under house cleaning products agreed to it. 34 % of the respondents said that they had to buy more than intended to avail the scheme. free gifts. y So it can be concluded that the buyer increase the basket size in the process to avail the promotional schemes and get value for money. coupons and refunds being the least preferred promotional activity. y Again the quantity need to bought more to avail the scheme varies across products and the scheme offered by the brand.y The buyers in return have to buy more quantity of the product to avail the scheme and save the above mentioned amounts. We can conclude from this that the buyer spends more in accordance to his income rather than attractiveness of the scheme. y The amount spent more to avail the scheme has association with the income of the buyer.20 to avail the scheme. Page | 106 . y As the buyer needs to buy more to avail the scheme it directly affects the total amount they spent to buy the product.  Hence the amount spent more to avail the scheme is dependent on the income of the buyer.

RECOMMENDATIONS Page | 107 .

y The amount spent more to avail schemes with FMCG has association with the income of the buyer and hence the target set of consumers should be studied before coming up with the promotions. y The consumers do not mind buying more quantity to avail the offers hence the brands can come up with schemes wherein the consumers need to buy more quantity to avail the schemes offered.y The brands should come up with promotional activities which give instant cash benefit to the consumers as such promotions are preferred by them. y The retailers can come up with their own promotion schemes if not offered by brands. y The reason of switching brands does tend towards better quality but even higher income groups indulge into cherry picking and hence the scope should not be limited to lower income groups. Such schemes will increase foot falls at the store and hence the retailer¶s sales. Page | 108 .

ANNEXURE Page | 109 .

yes which one ? Page | 110 .QB No. It would be appreciated if you could kindly spend few minutes of your valuable time and help us in filling up the questionnaire. Date D D M M Y Y Hello Sir/Madam. The student of GLS ± NRIBM is doing a Survey. HOUSEHOLD PRODUCTS MOSQUITO REPELLENT HOUSE CLEANING PRODUCTS PERSONALCARE QUESTIONS TOOTH PASTE PACKED FOOD PACKED MASALA PARTICULARS SOAP PICKLE Which of these products did you buy today? Which brand did you buy today? - Do you purchase the same brand every time? YES NO Why do you change your brand? SCHEMES TRIAL BETTER QUALITY LOWER PRICE Was there any promotional scheme with this brand? YES NO Price Promotio n Coupons Free Gifts Refunds Loyalty Incentive If . I No. The data collected through this survey is purely for academic purpose only and will be kept completely confidential and not divulged to any organization for commercial use.

15-20 Rs. 10-15 Rs.How much did you save by availing this scheme ? ( IN RS. 15-20 Rs. 10-15 Rs.) 0-5 Rs.) 0-5 Rs. 5-10 Rs. MORE THAN 20 Did you have to buy more qty than intended to avail the scheme? YES NO Did you spend more than intended to avail the scheme? YES NO If yes how much ? (IN RS. 5-10 Rs. MORE THAN 20 Which promotional activities Price Promotion do you prefer ? (Rank the top 4 preferred activities Coupons Rank 1 for the most preferred and 4 for least preferred) Free Gifts Refunds Loyalty Incentive Page | 111 .

000 WED THU 51.PERSONAL INFORMATION: OCCUPATION : House Wife Employed Self Employed Retired No.000 -50. of members in the family: ««««««««««««« MONTHLY INCOME: Shopping Days : < 25.000 SUN MON Page | 112 .000 FRI SAT > 75.000 TUE 26.000-75.

BIBLIOGRAPHY Page | 113 .

co.fddiindia.in/business-news/news-bulletin/oct13-19%20_09.nic.assocham.kr/english/reference/Final_Reports/INBICS_FMCG_Report.y y http://www.com/publications/newsletter/2009/007/July/FDDINL_215_17.inbics.0 7.pdf http://www.2009.org/arb/afp/2009/AFP_Oct2009_Prospects_in_the_FMCG_sect or.pdf y y http://www.com/news_html_files/news_attachment/2008/FMCG%20S ector%20Report1.pdf y http://www.pdf Page | 114 .moneycontrol.pdf http://www.indiainbusiness.

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