Professional Documents
Culture Documents
AT
HARI OM OVERSEAS
1
TABLE OF CONTENTS
2
STUDENT DECLARATION
I hereby declare that the project entitled “EFFECT OF ADVERTISING AND SALES
PROMOTION ON SALES VOLUME “ under the guidance of Deepti Kapoor submitted
in the partial fulfilment of degree of Bachelor of Business Administration 5 th semester
from “MANAGEMENT EDUCATION AND RESEARCH INSTITUTE “ , New
Delhi.
This is my original work and this project work has not formed the basis for the award of
any degree to the best of my knowledge .
Date :
Name : RAHI UPPAL
Enrolment No. : 09815101720
3
ACKNOWLEDGEMENT
I would also like to express my regards to Deepti Kapoor for her constant encouragement
and support. I would also like to express my immense gratitude towards all the lectures
of our college for providing the invaluable knowledge, guidance
,encouragement extended during the completion of this project.
I extend my sincere gratitude to all my teachers and guide who made unforgettable
contribution . Due to their sincere efforts ,I was able to excel in the work entrusted upon
me.
(Signature of student)
4
CERTIFICATE
5
SUMMER TRAINING APPRAISAL
Name of the student: RAHI
UPPAL Enrolment No.
09815101720
Programme : Bachelor of Business Administration
You are require to provide your opinion on the following parameters.
Outstanding Good Satisfactory Unsatisfactory
A B C D
1. Technical knowledge gathered about the industry and the job he/she was A
involved.
6
7. Creativity and ability to innovate with respect to work methods and procedures.
9. Presentation Skills A
A
10. Documentation Skills
13. Acceptability (Patience, Pleasing manners, the ability to install trust, etc) . A
14. In what ways do you consider the student be valuable to the organization?
A
Consider the student’s value in term of (a)Qualification
(b)Skills and Abilities
(c)Activities roles
performed
15. Punctuality
A
7
Assessor’s Name : Ajay sharma
Organization Name: HARI OM
OVERSEAS
Address : Bharat Nagar, Kabri Road
8
INTRODUCTION
Sales promotion has become an effective marketing tool that assists organizations to wax
stronger in a global competitive environment. Oyedapo et al,( 2012) identified sales promotion
as a key ingredient in marketing campaigns which assist organization to achieve its objectives.
The main aim of any organization is to maximize profit, have largest market shares and to
become leader in a market competitive environment. Okoli (2011) confirmed that the essence
of setting up a business organization is to make profit. Sales promotion simply exists to have
a direct impact on the behaviour of the firm's customers (Blattberg and Neslin 1990).
Aworemi (2008) in his research finding said that sales promotion plays a significant effect on
sales volume which help in achieving the organizational objectives. The role of sales
promotion in achieving organizational stated objectives cannot be underestimated. The
purpose of sales promotion is to motivate the customers to immediately purchase a particular
product thus enhancing its sales volume ( Sadia and Syeda, 2012; Odunlami and Ogunsiji;
2011; and Aderemi, 2003). According to Shimp (2003), sales promotion refers to any
incentive used by a manufacturer to induce the trade (wholesalers, retailers, or other channel
members) and/or consumers to buy a brand and to encourage the sales force to aggressively
sell it. kotler(2003) sees Sales Promotion a key ingredient in marketing campaigns and
consists of a diverse collection of incentive tools, mostly short term designed to stimulate
quicker or greater purchase particular products or services by consumers. Sales promotions
programmes are those activities other than stimulate consumer purchase. Sales promotion is an
important component of an organizations overall marketing strategy along with advertising,
public relations, and personal selling. Sale promotion acts as a competitive weapon by
providing an extra incentive for the target audience to purchase or support one brand over
another (Odunlami and Ogunsiji, 2011). It is on this premises that this research work wishes
to examine the effect of sales promotion on sales volume with special reference to the selected
distribution industry in Buea, south west, Cameroon.
1.1 BACKGROUND OF THE STUDY
Marketers in today’s complex and volatile business environment often fuelled the constant
change in the taste of customers, intense market competition, influx of new entrants in the
market, availability of substitute products face immense ;challenge to communicate their
marketing objectives. The shift in power of marketers to consumers has forced marketers to
ensure that their products are unique and of high quality to give customer a reason to purchase
their products and remain loyal to them. Furthermore the change in certain social, economic
and environmental factors has influenced the way customers change their needs and
preference. People change their needs and their perception of stimuli according to the context
that surrounds them and it comes directly from here the evident necessity of concreteness and
short term orientation that characterize sales promotion rather than advertising. This is why
marketing strategies have been adapted to this new trend and switched from advertising
towards sales promotion In addition, with limited marketing budget, the marketer today often
faces immense pressure and challenge to communicate their marketing objectives to their
customers.
LITERATURE REVIEW
According to ( keller Kotler, 2009) that factors influencing unplanned purchases are
sales promotion. A research discovered by (Fakthul & Surhayon, 2016) show that
there are five factors making up unplanned purchase such as store atmosphere,
shopping lifestyle, reference group, brand trust and motivation shopping hedonist.
Behind of many factors, this study just focuses on four dominant factors of
unplanned purchases as sales promotion, lifestyle shopping, store atmosphere, and
hedonic shopping motivation.
The first factor affecting unplanned purchases is sales promotion. Sales promotion is
the main ingredient in marketing campaign, consisting of a collection of incentive
tools, mostly short-term designed to stimulate larger and faster purchase rather than
particular product or service by consumers through trade (Kotler, Philip., Keller,
2013), Meanwhile, according to (Ayimey K, Vitor, & Gayibor, 2013) sales
promotion is achieved through informing and persuading consumers about an
existing or new product. (Phillip Kotler & Amstrong, 2009) say that sales promotion
consists of short-term incentives to encourage purchase or sales of products or
service. This definition explains that sales promotion relating to short-term
incentives to encourage purchase or sale of a product or service. These incentives
associated with reward, whether it relates to refund in the form of discounts,
collateral or may include product samples and the others.
Sales promotion is a collection of tools that have variety of incentives, mostly short-
term, designed to encourage purchase of a particular product or service quickly and
greatly by consumers. It can be clearly seen that modern retailers is now more and
more promotional sales are made through discounts, point of purchase (POP),
advertisements and posters on the shelf in store. According to (Philip Kotler &
Keller, 2009) promotional activity in-store sales can lead to a desire, arousal, or
thrill to buy even if consumers do not have intention to buy product before, thus
encouraging purchases are not planned in advance (impulse). (Grewal & Levy,
2008) give a sense of sales promotion as a special incentive or interesting programs
that encourage consumers to make purchases of products and certain services. Sales
promotion is a persuasive action directly offering incentives or more value for
product of sales force, distributors or consumers with primary objective of
generating sales immediately. It concludes that promotional activities will help and
to persuade prospective consumers to purchase products or services that we offer.
Sales promotion describes incentives and prizes to make customers buy goods
company directly. As a result, this is to require response quickly compared what be
seen on advertisement.
The second factor affecting corporate value is shopping lifestyle. Shopping has
become a tradition at the same lifestyle trends in the globalization era, consumers
are not only can make purchase decision at mall or shops, but also make purchase
online (Amiri, Jasour, Shirpour, & Alizadeh, 2012). (Zablocki & Kanter, 1976) state
that lifestyle shopping show a way chosen by someone to allocate revenue, both in
terms of funds allocation for variety of products and services, as well as certain
alternatives.(Cobb & Hoyer, 1986) defines shopping lifestyle behavior as indicated
by buyer in connection with a series of comments and personal opinions about
purchase of lifestyle products from time to time and it has become most popular for
customers. As a result people are willing to sacrifice anything in order to follow
lifestyle and tend to lead on impulse buying. The development of lifestyle continues
shopping activity as medium to satisfy customers’ need. One of reasons is shopping
lifestyle, when consumers go to the mall and see good stuffs, although unplanned
purchase, consumers will definitely buy goods which is usually called impulse
buying. Consumers will be willing to sacrifice something in order to meet the
lifestyle and it will tend to lead to impulse buying behavior (Japariyanto & Sugiyono
Sugiharto, 2011).
Ajay Sharma
Panipat132103
Haryana, India
The handloom sector of India is one of the biggest unorganized economic activities. The
handloom industry in India has a long tradition of outstanding artisanship that represents and
preserves vibrant Indian culture. India's handloom artists are globally known for their unique
hand spinning, weaving and printing style. They are based out of small towns and villages of the
country which transfer skills from one generation to the next. The handloom industry is the
country's largest cottage industry, with 23.77 lakh looms. It is also the second-largest
employment provider in the rural region employing more than 3 million people in direct and
allied activities.
India produces several traditional products such as sarees, kurtas, shawls, ghaghracholis, lungies,
fashion accessories, bedspreads, etc. In the contemporary product category, the country produces
fashion fabrics, western dresses, bed linens, drapes, kitchen linen, decorative furnishings and rug
durries, etc. The handloom sector of India has the advantage of being less capital intensive, eco-
friendly, having less power consumption and the ability to adapt to market conditions.
According to the Handloom Census 2019-20, the industry employs about 3,522,512 handloom
workers across the country. The industry primarily employs women workers with a share of
72.29% of the total handloom workers.
RESEARCH METHODOLOGY
Primary Data:
Secondary Data:
Internal Sources:
External Sources:
Questionnaire Design:
Questionnaire was prepared with both open and close ended questions. The
target population was Management of HARI OM OVERSEAS.
RESEARCH PLAN:
Survey Questionnaire
2
4.1.1 Presentation of Identification of Respondent
to this table, majority of the respondents reached during the study were women who
made up 60% of the total sample population and only 40% were men. This implies
that women are more incentives to promo schemes than men and from the
researcher’s observation during the study, majority of the women found it that promo
According to the table above, out of the total of 60 respondents in the sample, only
1.7% of the respondents are age between 20-25 years, 45% were aged between 25-30
years. Majority of the respondents were the age of 35 and above. It was found out
that a few aged people are engaged in the Sales promotion activities sector and have
2
Table 4.3: Marital Status
Frequency Percent Valid Percent Cumulative
Percent
Married 17 28.3 28.3 28.3
Valid Single 32 53.3 53.3 81.7
Divorced 11 18.3 18.3 100.0
Total 60 100.0 100.0
From Table 4.4 above, 28.33% of the respondents were married people. 53.33% of
the respondents were those not married and 18.33% were those that have divorced.
As seen from table 4.3, it is seen that most of the people who are involves in
promotion which leads to increase in sales volume were those not married. This
implies that when promotion activities are to be launch to increase sales the target
population should be the unmarried
2
Table 4.4: Level of education
Frequency Percent Valid Percent Cumulative
Percent
First school 3 5.0 5.0 5.0
O/Level 12 20.0 20.0 25.0
Valid A/Level 18 30.0 30.0 55.0
First Degree 20 33.3 33.3 88.3
Above 7 11.7 11.7 100.0
Total 60 100.0 100.0
From Table 4.5, results of educational level is analysed. As seen from above, those
with FCLC comprises of only 5%, those with Ordinary level comprises 20%,
Advance level comprises of 30%, those with degree comprises of 33.33%. Those
with master comprises of 11.67%. This show that in order to go in for any sales
promotion activity, the target population of educational level should be those with
Degrees, Advance levels and Ordinary levels in order to increase the sales volume.
The table is presented in the figure below in order to have a better 1understanding of
the study.
2
Table 4.5: Period of retailing
Table 4.6 above shows the number of months spent by Retailers retailing
Handloomsproduct in the Delhi. As seen from above, 46.7% of the retailers comprise
nineteen months and above. Moreover those between twelve and eighteen months
comprise of 28.3%. Those retailers who are between one and six months in the
2
Retailing Business, comprises just 10% of the total number of retailer of
2
Handloomsproduct,while those between six months and twelve months comprise of
15% .
When the respondents were asked on if Handloomscarry out sales promotion 83.3%
agreed on the fact that they do carry out sales promotion and 16.7% said no
3
t
3
Monthly 6 10.0 10.0 10.0
after 3 months 43 71.7 71.7 81.7
Valid
6 months 11 18.3 18.3 100.0
Total 60 100.0 100.0
3
Figure 4.6: are you motivated by your supplier
Many of the respondents after asked if they are being motivated by their suppliers
66% agreed and 33.7% disagreed that they are not being motivated by their suppliers
this shows that the more suppliers motivate their clients their sales volume increases.
This can be seen below
3
Figure 4.7: means of motivation
From the respondents the researcher asked on the means of motivation the
respondents received 41.75 received their motivation through bonuses, 45% by
providing sales, 13%by other means this can be better understood on the bar chart
below
Table 4.10: which sales promotion strategy are you familiar with
Frequenc Percent Valid Cumulative
y Percent Percent
point of
5 8.3 8.3 8.3
purchase display
Coupons 9 15.0 15.0 23.3
Valid scratch and win 18 30.0 30.0 53.3
Premiums 25 41.7 41.7 95.0
Others 3 5.0 5.0 100.0
Total 60 100.0 100.0
As seen from the table above, the other forms of promotion offers by Handloomsto it
retailers of its product comprises of just 5% which is the least in the promotion
3
strategy. Premium method of promotion leads the race with 41.667%, follow by the
Scratch and win Method of promotion. This implies that if Handloomswishes to
increase its sales Volume through promotion, more emphasis should be laid on the
premium method of promotion as seen on the bar chart below
Figure 4.8: which sales promotion strategy are you familiar with
As seen from the table above, the other forms of promotion offers by Handloomsto it
retailers of its product comprises of just 5% which is the least in the promotion
strategy. Premium method of promotion leads the race with 41.667%, follow by the
Scratch and win Method of promotion. This implies that if Handloomswishes to
increase its sales Volume through promotion, more emphasis should be laid on the
premium method of promotion.
Table 4.11: are sales promotion dimensions modified?
Frequency Percent Valid Percent Cumulative
Percent
Valid Yes 35 58.3 58.3 58.3
3
No 25 41.7 41.7 100.0
Total 60 100.0 100.0
Source field work 2017
3
Table 4.12: how offen do you modify
3
Table 4.13: how often do you place your order?
Frequency Percent Valid Cumulative
Percen Percent
t
once a week 2 3.3 3.3 3.3
twice a week 41 68.3 68.3 71.7
Valid
once a month 5 8.3 8.3 80.0
on demand 12 20.0 20.0 100.0
Total 60 100.0 100.0
Source field work 2017
3
Table 4.14: Are you satisfied with the level of sales promotion?
Frequenc Percent Valid Cumulative
y Percent Percent
Strongly disagree 11 18.3 18.3 18.3
Disagree 11 18.3 18.3 36.7
Valid Neutral 5 8.3 8.3 45.0
Agree 16 26.7 26.7 71.7
Strongly agree 17 28.3 28.3 100.0
Total 60 100.0 100.0
3
Figure 4.12: increase in bonus due to promotional activities
When the respondents when asked if their overall bonuses were as a result of sales
promotion activities done by Handlooms6% strongly disagreed, 15% disagreed,
13.3% were neutral in their views, 41% agreed and 23.3% strongly agreed that their
bonuses were as a result of the promotion activities by Handloomsas presented on
the chart below.
4
Table 4.16: the sales promotion of Guiness sa can be rated as good
Frequency Percent Valid Percent Cumulative
Percent
Neutral 9 15.0 15.0 15.0
Agree 28 46.7 46.7 61.7
Valid
Strongly agree 23 38.3 38.3 100.0
Total 60 100.0 100.0
Figure 4.13: the sales promotion of Guiness S.A can be rated as good
From the table above when the respondents were asked on if the sales promotion
could be rated as good, 15% were neutral with their views, 38% strongly agreed, and
46.7% agreed that the sales promotion carried out by Handloomscould be rated as
good as seen on the chart below
4
Table 4.17: The sales promotion of Handloomspushes the customers to buy
more
Frequency Percent Valid Cumulative
Percen Percent
t
Disagree 13 21.7 21.7 21.7
Agree 31 51.7 51.7 73.3
Valid
Strongly agree 16 26.7 26.7 100.0
Total 60 100.0 100.0
4
Table 4.18: Sales promotion positively affects your sales volume
Frequency Percent Valid Cumulative
Percen Percent
t
Strongl
1 1.7 1.7 1.7
y
disagree
Disagree 2 3.3 3.3 5.0
Valid
Agree 16 26.7 26.7 31.7
Strongly agree 41 68.3 68.3 100.0
Total 60 100.0 100.0
4
Handloomsproducts in the Delhi. This is presented in the diagram above.
4
Figure 4.16: point of purchase
From the table above, those who strongly agree that point of purchase affects their
sales volume comprises 36.7% and those who agree made up 41.7% of the total
population. This implies that point of purchase greatly affects Sales Volume of
Handloomsproducts in the Delhi. This is presented in the diagram above
4
RECOMMENDATIONS
1. It was noticed that Handlooms uses sales promotion to inform, persuade and
encourage its retailers to buy. Based on the findings, the researcher
recommended that Handlooms should define their sales promotion objectives
and their customers should be well informed in order to achieve the stated
objective
2. sales promotion records should be well kept after the promotion in order to
evaluate the results, because most at times it was noticed that record was not
kept of the sales promotion activity, by doing this they will know which
dimension to modify and at what time.
3. Finally management of Handlooms should involve the customer retailers in
sales promotional activities if they need to meet the goals stipulated for such
campaigns. This is because customer retails deal directly with consumers
hence they can give adequate feedback on promotional activities used
4
CONCLUSION
4
Limitations of the Report
4
REFERENCES
4
Pawels K., Srinivasan, S., Silva-Risso,J., and Hanssen, D.M. (2003): New
products, sales promotion and firm value, with Apllication to the Automobile
Industry. Journal of marketing, 22-38
Philip Kotler&Astrong (2001); Principles of marketing.
Philip Kotler (2001). Marketing management, Prentice-Hall of India private limited
New Delhi-110001 Millennium Edition. P.558
Philip Kotler; marketing management: Analysis, Planning, Implementation and
control; 9th edition, pg 661-665.
www.ehow.com/list 6524232 theories-sales-promotion.html
Zallocco, perreult and Kincaid (2008) Promotion, Persuasive Communication in
Marketing (Irwin-Dorsey Limited, White, Senecal, Morgan, Blackwell
&Miniard).