influence OF PROMOTION IN FMCG SECTOR

A project submitted for the partial fulfillment of the requirements for the degree of
Bachelor of Business Administration (BBA)

Submitted By
DEBOTRI BANERJEE
Roll No.: 15205020113 Session: 2020-2023

SAPTARSHI GHOSH
Roll No.: 15205020050 Session: 2020-2023

SOMYADEEP MUKHERJEE
Roll No.: 15205020028 Session: 2020-2023

TUSHAR SONI
Roll No.: 15205020081 Session: 2020-2023

ANKAN SAHA
Roll No.: 15205020129 Session: 2020-2023

Under The Supervision Of

Dr. Soumya Mukherjee
Asst. Professor
Department Of BBA
Techno India Hooghly Campus

Techno India-Hooghly Campus

Dharampur, Shantiniketan, Near Khadina more
G.T. Road, Chinsurah, Hooghly-712101
Phone: 033-2680-2389 / 6565
Website: www.technoindiahooghly.org email: info@technoindiahooghly.org

1
 Techno India Hooghly-Campus
Dharampur, Shantiniketan, Near Khadina more
G.T. Road, Chinsurah, Hooghly-712101
Phone: 033-2680-2389 / 6565
Website: www.technoindiahooghly.org email: info@technoindiahooghly.org

PROJECT COMPLETION CERTIFICATE

This is to certify that the project work entitled “Influence of promotion in FMCG Sector”
Carried out by:

Name Registration no. Roll no.

Debotri Banerjee 201522005010027(2020-23) 15205020113
Saptarshi Ghosh 201522005010090(2020-23) 15205020050
Somyadeep Mukherjee 201522005010112(2020-23) 15205020028
Tushar Soni 201522005010059(2020-23) 15205020081
Ankan Saha 201522005010008(2020-23) 15205020129

as Assigned Project(major) for the partial fulfilment of degree of Bachelor in Business

Administration is worth of acceptance.

Prof. Dr. Soumya Mukherjee Prof. Avik Chatterjee

Assistant Professor Head of the Department

2
 DECLARATION BY THE STUDENTS
We,

Name Registration no. Roll no.

Debotri Banerjee 201522005010027 15205020113
Saptarshi Ghosh 201522005010090 15205020050
Somyadeep Mukherjee 201522005010112 15205020028
Tushar Soni 201522005010059 15205020081
Ankan Saha 201522005010008 15205020129

declare that the project entitled “Influence of promotion in FMCG Sector” is our own work
conducted under the supervision of Prof. Avik Chatterjee, Prof. Soumya Mukherjee as a partial
fulfilment of the degree of Bachelor in Business Administration.

We further declare that to the best of my knowledge the project does not contain any part of any
work which has been submitted for any other project either in this institute or in any other
without proper citation.

Debotri Banerjee Saptarshi Ghosh Somyadeep Mukherjee

Tushar Soni Ankan Saha

3
 ACKNOWLEDGEMENT

It is our pleasure to be indebted to various people, who directly or indirectly

contributed in the development of this work and who influenced our thinking,
behavior, and acts during the course of study.

We would like to acknowledge for the enormous help given to us in creating this
project report. For their memories, their patience, and their guidance. We wish to
thank all those who contributed to our report by filling up questionnaires and
providing us with the desired information.

We express sincere gratitude to Dr. Mrinal Kanti Chakraborty, Principal of our

college for providing us an opportunity to undergo this project at Techno India
(Hooghly Campus).

We are also thankful to Prof. Dr. Soumya Mukherjee for his support, cooperation,
and motivation provided to us during the training for constant inspiration, presence
and blessings. We also thank our HOD, Prof. Avik Chatterjee for his support in
completion of this project work.

4
 TABLE OF CONTENT

Sl.No. Particulars Pg.No.

1. ABSTRACT 6
2. INTRODUCTION: 7-34
 Promotion
o Types of Promotion
o Key Points of Promotion
o Nature and Importance of Promotion
 Fast Moving Consumer Goods
o Understanding
o The Fast Moving Consumer Goods Industry
o Evolution of FMCG Sector
o Types of Fast Moving Consumer Goods
o Some of The Largest Fast Moving Consumer Goods companies
o Primary Forces Behind the Expansion of the FMCG Sector
o Largest Obstacles in the FMCG Sector
o Future Outlook for the FMCG Sector
 Promotional Strategies used by FMCG Sectors and their effects
 Implementation of Promotion in brands and their out comes
 Relation in between Promotion and FMCG Sector
 Theory establishing relation in between promotion and FMCG Sector
 Models Representing impacts of promotion in FMCG Sectors

3. LITERATURE REVIEW 35-39

4. OBJECTIVES OF THE STUDY 40
5. RESEARCH AND METHODOLOGY 40-44
 Types of Research
 Types of research
 Procedures to collect primary data
 Target Population
 Sampling Concept

6. DATA & RESEARCH ANALYSIS 45-57

7. CONCLUSION 58
8. FUTURE SCOPE OF THE STUDY 59-60
9. LIMITATIONS OF THE STUDY 61-62
10. BIBLIOGRAPHY 63-64
11. APPENDIX 65-68
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 ABSTRACT

Promotion strategies are categorized as in-store and out-of-the-store promotions. The primary goal of this
research is to investigate the relationship between how customers perceive sales promotion methods and
how that impression influences their purchasing decisions. Purchase behavior in this study has been
identified as the store loyalty, the basket size, and the shopping frequency. These aspects have been highlighted
in FMCG markets, which are typified by low involvement items, a lack of obvious brand distinction, and
intense competition. Premium brands and market leaders are not immune to these problems, since it has been
discovered that followers and market leaders face the same amount of competition, even though their brand
features differ significantly. In this study, the five major purchasing behavioral dimensions namely, brand
switching, store switching, purchase acceleration, repeat purchase, and category expansion, have been
considered as the dependent variables while perceptions about sales promotion strategies are treated as
independent variables. One of the major issues concerning increase in sales volume is to design appropriate
sales promotional strategies and tools to stimulate perch’s behaviors of the people in the industry. This way, the
effectiveness of the sales promotion activities can be understood. Besides, such attempts will help redesigning
the sales promotion tools and strategies that can strongly influence the purchase behavior of the customers.

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 INTRODUCTION

“FMCG Promotion is not just about selling products, it’s about creating experiences that connect with
consumers on a personal level and make them feel valued.”

PROMOTION:
Promotion is a marketing approach in which a company uses short-term campaigns to generate attention and
demand for a product, service, or other offer. Promotions, are mostly used to drive purchasing behavior or to
generate an increase in purchases in the near term in order to meet a benchmark or objective. Although the
immediate aim of a promotion is an upswing in sales, there are lots of other benefits to putting out a smart
promotion approach with your marketing team.

Using promotions strategically supports a range of commercial goals while also keeping your existing audience
engaged with your offers. Promotions, regardless of your ultimate objective, reward technique, or marketing
medium, are a tried-and-true strategy to capture your audience's interest and improve your sales process. You
may boost revenue and achieve other essential company goals by employing attractive sales methods such as
scarcity, urgency, exclusivity, and right timing.

Promotion is frequently used by marketers to increase the potency of other components of promotions, notably
advertising and direct sales. The coordination of all initiatives taken by the seller to create channels for
information and persuasion in order to market products and services or a concept was described as the
promotion. A promotional mix must include sales marketing as a key component. Promotion is now a crucial
marketing technique, and its significance has grown considerably over time. The promotional activity nudges
the consumer to reconsider and assess the brand and the unrealized quantity. Promotion is now a crucial tool for
sellers and merchants that utilize a variety of promotional methods and techniques to understand their
customers' preferences and boost sales. Promoting a product involves talking to consumers to get them to buy it.

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Types of Promotion:

 Advertising:
It helps to out spread a word or awareness, promote any newly launched service, goods or an organization. The
company uses advertising as promotional tool as it reaches a mass of people in few seconds. An advertisement
is communicated through many traditional media such as radio, television, outdoor advertising, newspaper or
social media. Other contemporary media that supports advertisement are social media, blogs, texts messages
and websites.

 Direct Promotion:
It is that kind of advertising where the company directly communicat6es with its custimers. This
communication is usually done through various new approaches like email marketing, text messaging, website,
fliers, online adverts, promotional letters, catalog distributors, etc.

 Sales Promotion:
This utilizes all sorts of a marketing tool to communicate with the customers and increase sales. However, it is
for a limited time, used to expand customers demand, refresh market demand and enhance product availability.

 Self-Promotion:
It is a process where enterprise send their agents directly to the customers to pitch for their products or services.
Here, the response for the feedback of the customer is prompt and therefore, easy to build trust.

 Public Relation:
Popularly known as PR is exercised to broad cast the information or message between a company (NGO,
Government agency, business), an individual or a public. A powerful PR campaign can be valuable to the
company.

 Online Promotion:
This includes almost all the elements of the promotion mix. Starting from the online promotion with pay-per-
click advertising. Direct marketing by sending newsletters or emails.

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Key Points of Promotion:
It is a communication tool that incorporates all the elements used to spread awareness and convince customers
to buy goods and services.
It is applicable only for short term sales.
It is one of the variable of the marketing mix
The effect of promotion is short term.
The result or outcome of the promotion is immediate.
It is an economic marketing tool as compared to advertising.
It can also be used for all sorts of business irrespective of size, brand of a company.
Nature and Importance of Promotion:

Sales of the goods in imperfect market:

Promotion helps in the sales of the goods in imperfect market conditions, the product cannot be sold easily only
on the basis of price differentiation. It is the promotional activity that provides information about the
differences, characteristics and multi-use of the products of various competition in the market. The customer is
attracted to purchase the goods on the basis of such information successfully.
Filling the gaps between producers and consumers:
Promotion helps in filling the gap between producers and consumers. Due to the tough market condition, mass
selling is quiet impossible without promotional activities. The distance between producers and consumers has
so widened in present days to get them touched with the product that promotional activities are necessary.
Facing Intense Competition:
Promotion helps in facing intense competition in the market. When a manufacturer increases his promotional
spending and adopts an aggressive strategy in creating a brand image , others are also forced to follow the suit.
This leads to ‘promotional war. Without promoting the goods, the competition is not possible in the market. So,
it is necessary to face the competition in the market. So it is necessary to face the competition in the market with
the help of promotional activities.
Large Scales Selling:
Promotion helps in large selling of goods and services. Sales promotion is the result of large scale production. It
can be achieved only by appropriate methods of large scale selling. Large scale selling of goods, there will be
more chance of promotion of goods. So, it is necessary to sell lot of goods in the market for promotional
activities.

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Higher Standard of Living:
Promotion helps in the rising standard of the people. The promotional activities increase the standard of living
by providing the better goods at a lower rate due to large scale production and selling. It helps to increase the
standard of living with the help of promotional activity. As the promotional activities increases, the standard of
living of people also increases. So, the promotional activity has a great role in the increment of a standard of
people so that they can live a good and happy life.
More employment:
Promotion helps to create more employment opportunities. People can gain employment opportunity with the
help of promotional activities. With the help of promotional activity, many workers get motivated towards the
work. Promotional activity helps to increase more employment opportunities to the people who are
unemployed, as the promotional activities cannot be performed without the help of an effective sales force and
specialists in various fields.
Increased trade pressure:
Promotion helps to increase trade pressure in the market. The growth of large scales retailer, such as
supermarkets, chain stores, etc.; has brought greater pressure on manufacturer for support and allowance.
Promotional activities help to decrease the trade pressure. There is need for promotional activities to decrease
the trade pressure. There is need for promotional activities to decrease the trade pressure.
Effective Sales Support:
Promotion helps in the sales support of the product. Sales promotion policies are under the supplement to the
efforts and impersonal salesmanship. Good sales promotion materials make the salesman’s effort more
productive. Promotion helps in the sales of the product. It provides good support in selling the different types of
goods. Sales of different types of goods in the market are very necessary to increase the market economy.
Increased speed of product acceptance:
Promotion helps to increase the speed of the products acceptance. Most of the sales promotion devices such as
contests, premium coupons, etc. can be used faster than other promotion methods such as advertising. The
increase in rapid speed of product acceptance is very important in competitive market. So, it is necessary to
increase the speed of product.

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Fast Moving Consumer Goods(FMCG):
Understanding FMCG:
Although it is simple to grasp, the phrase fast moving consumer goods (FMCG) is challenging to describe.
These are often those products that the ultimate customers utilize directly and that involve less purchasing and
decision-making activities. Any kind of regularly bought items are eligible. It has changed nowadays into
equivalent to consumer products.

Consumer goods are items purchased for consumption by the ordinary consumer.
They are classified into three categories: durable commodities, nondurable items, and services.

Durable products have a shelf life of three years or more, whereas nondurable items have a shelf life of less than
one year. Fast-moving consumer items account for the majority of consumer goods. They are nondurable
because they are consumed promptly and have a limited shelf life.

Every day, nearly everyone in the globe consumes fast-moving consumer goods (FMCG). They are small-scale
consumer purchases made at produce stands, grocery stores, supermarkets, and warehouse outlets. Milk, gum,
fruits and vegetables, toilet paper, soda, alcohol, and over-the-counter medications such as aspirin are all
examples.

FMCGs account for more than half of all consumer spending, but they tend to be low-involvement purchases.
Promotion is a marketing tactic that has been extensively researched and is now a key component of
contemporary marketing. Promotion is the short-term benefit that spurs the consumer channel member to make
a purchase of products and services right away. Reduce the cost by adding value. Promotional planning is
becoming an increasingly crucial aspect for FMCG suppliers, distributors, and retailers when it comes to
growing sales volume and bringing in new business. Determining what kinds of bargains, you want to give your
clients is an important element of promotional strategy.

The Fast-Moving Consumer Goods Industry:

Because fast-moving consumer goods have such a high turnover rate, the market is not only very large, it is
also very competitive. Some of the world's largest companies compete for market share in this industry
including Tyson Foods, Coca-Cola, Unilever, Procter & Gamble, Nestlé, PepsiCo, and Danone. Companies
like these need to focus their efforts on marketing fast-moving consumer goods to entice and attract consumers
to buy their products.
That's why packaging is a very important factor in the production process. The logistics and distribution
11
systems often require secondary and tertiary packaging to maximize efficiency. The unit pack or primary
package is critical for product protection and shelf life, and also provides information and sales incentives to
consumers.
FMCGs are sold in large quantities, so they are considered a reliable source of revenue. This high volume of
sales also offsets the low profit margins on individual sales as well.
As investments, FMCG stocks generally promise low growth but are safe bets with predictable margins, stable
returns, and regular dividends.

Evolution of FMCG Sector:

Between 1950 and 1980, there was limited investment in the FMCG sector. Local people had lower purchasing
power, which meant that people opted for necessity products rather than premium products. Indian government
was inclined towards favouring the local shops and retailers. Between 1980 and 1990, people wanted more
variety of products which encouraged FMCG companies to increase the availability of products. FMCG
Industry started getting traction and other companies started entering the industry. Media industry in India also
boomed during the same time which gave new companies even more incentive to make their business
profitable. Prior to 1991, when globalisation and liberalisation occurred in India, western apparels and foreign
food products were not available to local customers. Common people weren’t very aware of brand recognition.

After 1991, FMCG industry was inspired by the international companies which also allowed government
intervention to incentivise foreign FMCG companies to operate in India.
The Indian FMCG industry generates massive employment opportunities and currently employs more than 3
million people. Departmental stores, grocery stores, and supermarkets are the places where consumers buy the
necessary products for daily consumption. In the 21st century, people don’t want to move across different stores
to acquire the common household goods. Hence, the introduction of supermarkets, where customers have a
variety of choices for different household products, into localities are proving to be extremely convenient to the
customers. Some of the most common stores in India are: Reliance Retail, Big Bazaar, D-Mart, Easy day,
MORE, Spencer’s, Spar, Hyper City, and Star Bazaar. Although the operations of supermarkets are profitable,
local grocery stores are suffering due to lack of variety of products. Unlike other emerging FMCG industry
around the world, FMCG sector in India is still quite conventional. Despite street markets are still one of the
most visited places for shopping in urban and rural settings, online platforms are leading the way to buy FMCG
products.

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Types of Fast-Moving Consumer Goods:
As mentioned above, fast-moving consumer goods are nondurable goods, or goods that have a short lifespan,
and are consumed at a fast pace.
FMCGs can be divided into several different categories, including:
Processed foods: Cheese products, cereals, and boxed pasta
Prepared meals: Ready-to-eat meals
Beverages: Bottled water, energy drinks, and juices
Baked goods: Cookies, croissants, and bagels
Fresh foods, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots, and raisins and nuts
Medicines: Aspirin, pain relievers, and other medication that can be purchased without a prescription
Cleaning products: Baking soda, oven cleaner, and window and glass cleaner
Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap
Office supplies: Pens, pencils, and markers

Some of the Largest Fast-Moving Consumer Goods Companies:

Nestlé, Procter & Gamble, and Coca-Cola are among the world’s largest fast-moving consumer goods
companies. Swiss-based Nestlé, for instance, operates over 2,000 brands that cover everything from vitamins
to frozen foods. Importantly, within the fast-moving consumer goods industry, the competition for market
share is high. In response, companies focus heavily on packaging not only to attract customers, but to preserve
the shelf life and integrity of the product.

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Primary Forces Behind the Expansion of the FMCG Sector:

 The Growth of E-Commerce:

The technological revolution affected both urban and rural areas of India. Due to e-greater commerce's
accessibility throughout the nation, whether in rural or urban areas, there has been a discernible shift in demand.
It offers greater consumer convenience because customers can easily choose and buy the products of their
choice using apps and websites. Moreover, the home delivery option will deliver the goods to their homes.

 Value Augmentation:
The retail sector in rural India and the rise in rural consumption also drive the FMCG market. As a result, the
percentage of its spending in total FMCG is 36%.
The FMCG sector in India expanded thanks to consumer-driven growth and higher product prices, especially
for essential goods. In addition, due to numerous government initiatives, including hygiene categories, high
agricultural production, reverse migration, and packaged staples, it experienced double-digit growth and
reached 10.6%.
The FMCG sector receives support from various industries, including tobacco, food and beverage, household
and personal care, and others.

 The Contribution of Technology:

A strong emphasis on agility characterizes the FMCG industry, and technology can give FMCG
companies access to this agility. As a result, the FMCG industry is preparing to use technology to enhance
operational effectiveness, find new opportunities, and manage complex supply chain requirements.
The FMCG industry heavily relies on market research because it enables it to recognize consumer behaviour
and field sales specialists. Enterprises can improve the performance of their sales operations by utilizing
business intelligence, the cloud, and sophisticated field service management software.

 Further Directions:
India's rural market is anticipated to grow by over US$ 220 billion in the next few years. This is because India's
rural consumption has increased, with rising incomes raising the average person's aspirations.
In addition, the rising proportion of young people in India's population is a significant factor that will fuel the
demand for FMCG products.

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Largest Obstacles in the FMCG Sector:
Below are a few of the most intriguing challenges and trends in the FMCG Sector:
Difficulty in Data Management:
As the capacity to gather, store, and process data increases exponentially, a data explosion is underway. The
FMCG industry already had weekly consumer sales, brand tracking, consumer panels, shopper data from
helpful and well-paid retailers, and, depending on which data/analytics organization you speak to, another few
hundred metrics. However, 95% unfortunately of the data produced and sold to eager analysts and marketers is
useless.
The more intelligent businesses will purchase only the necessary information (managing information costs),
identify the proper connections to consumer behaviour, and use that information wisely to create products,
regulate trade, and interact with customers.

Media Platforms:
Nowadays, information travels quickly. A tweet, FB post, or YouTube video can become famous overnight. A
company can no longer sell a product in a less developed market that was unsellable in a developed market
because of safety concerns because regulations have not kept up.
While consumer information is easily accessible through a Google search, rules will take some time to catch up.
There will be no place to hide and rapid information dissemination. Smarter brands will use cutting-edge
strategies to effectively use this to reach a global audience while minimizing brand communication costs.

Purchasing Groceries Online:

Despite having a small base, this is expanding quickly in most developed markets. Although most of the larger
brick-and-mortar stores now provide online shopping and delivery, more niche online stores with limited
product selections and higher prices will start to appear.In addition, brands that expand by releasing a new
flavour or fragrance every three months will struggle as some of these small-range online retailers develop
because managing categories and ranges will become easier but brutal for brand owners.

Appeal to All Age Groups:

How would a supermarket's product selection change if everyone who shopped there was over 50? Fresh foods,
fish (salmon), whole grain products, high-end sweets, and a long aisle of health supplements are all present.
This group will value food quality more highly because they have more money.
For brands, the dilemma will be to appeal to this ageing demographic while still being relevant enough to draw
in younger customers.

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Conservation and Atmosphere:
Companies that can show sustainability throughout their entire ecosystem will have higher consumer bonding
scores. However, because consumers increasingly view conservation as a given rather than a luxury that only a
select few can afford, the capacity to charge a premium to encompass increased costs will remain constrained.
The Tesla of the FMCG industry has yet to be developed using discoveries and technological advancements.

Future Outlook for the FMCG Sector:

Over the past twenty years, the FMCG industry in India has undergone a remarkable transformation. By 2025,
the FMCG market is expected to reach nearly $220 billion, with a growth rate of 14.7%.
Here are a few elements that will be crucial for the expansion of the FMCG sector –
Technological Transformation:
Since the COVID-19 pandemic broke out, consumers have adapted to and used technology much more quickly.
As a result, 80% of consumers will perceive a seamless transition from analogue to digital in the coming years.
People in rural areas will benefit even more from rising smartphone and internet usage as it makes it simpler to
access various e-commerce websites for online shopping.

Creation of Brand Communities:

Modern consumers quickly access other customers who have purchased the same product. As a result,
businesses are developing marketing plans to create brand communities among consumers who share similar
social, political, and cultural traits and are interested in their products.
Private and well-known brands in the FMCG sector have benefited from making the interaction a little more
personal in the past year, and it is anticipated that they will continue to do so.

Acceptance of the D2C Model:

Even larger brands have been enticed by the profit margin associated with direct selling to consumers to
establish a direct sales channel on various digital marketplaces and even open standalone websites and stores.
Most brands have started delivering their products right to customers' doorsteps to take advantage of the trend
of the online marketplace. As a result, consumer demand has increased 88% yearly, according to brands with
specific websites for consumer sales. As a result, the D2C business model is well-liked and will become more
critical.

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Doorway for Investments:
A sudden influx of capital has entered the sector due to new government regulations regarding investments
in FMCG companies in India and accepting foreign-directed investments.
Government incentives and FDI funds have strengthened the FMCG sector, which has also helped FMCG
brands gain high visibility across well-established retail markets and build a more reliable supply chain.
Additionally, the industry has significantly benefited from efforts to raise disposable income in the hands of
ordinary people, particularly those from rural areas.
In the future, it is anticipated that the government will make more attractive investments and developments to
encourage the FMCG sector's growth further.

Promotional Strategies used by the FMCG Sectors and their effects:

It can be tricky for fast-moving consumer goods brands to nail a promotion tactic. The environment itself is
already challenging and fast-paced, and attempts to clearly communicate with customers can get lost in the
crowd. Not to mention the risk that comes with a poorly-constructed promotion and the damage it can cause.

Here are some of the best tactics for FMCG brands.

Go online:
It’s all about going online nowadays – if your brand doesn’t have an online presence yet, it’s time to change
that. Going online means your promotions can be more targeted, easier to run and track and can give you a
better understanding of who your customer is.
Some of the benefits are:
Customers can subscribe to your brand via computer or mobile, allowing you to gain opportunities for future
marketing to them
You can thank your customers via email, resulting in better brand loyalty and engagement
No need to worry about safely storing paper-based promotional competitions, required by Australian Privacy
Laws
Build direct and strong relationships with your customers, which translates into brand loyalty and repeat sales
You can gain much greater reach with your promotions

17
Incentivize specific stores to increase sales:
As an FMCG brand, you’re often reliant on stores to push your products in the right way, so offering stores an
incentive to sell more can be a great way to get your product prioritised over others in your category.

You could offer tailored rewards to stores who achieve growth targets or complete certain activities, like adding
more products to their range or utilising in-store displays. Gamifying this and allowing stores to see where they
rank against competitors can also increase their engagement with your brand.

At Edge, we’ve created online portals for brands who want to allow store owners to keep track of rewards
they’ve earned. As an added bonus, the portal is a useful way to keep partners up to date on company news too.

‘Try me free’ for brand awareness:

Everybody loves a freebie, and they are a great way of showcasing your brand, encouraging product trial and
building a customer base.
A clever promotion that invites customers to try your product for free can also be an opportunity to capture their
valuable feedback. For example, you could simply offer customers who purchase a specific product during a
promotional period their money back in the form of a branded eftpos Gift Card if they trial the product and
provide their feedback via a branded claim site. Asking a customer for their input also strengthens their
relationship with your brand.
It’s a win-win for your company and the customer!
Buy 1, get 1 free:
You may not want to give away free product, but you can incentivise customers with a free gift of another kind.
Kellogg’s is currently running an offer to buy one of their specially marked products and get a free movie ticket.
The reward, which has broad appeal, can be redeemed simply by retaining the purchase receipt and entering it
online.
Generate word-of-mouth referrals – and use social media to your advantage:
Invest in a campaign that customers can relate to at a personal level, so much so, that they can start talking to
their friends, family and co-workers about it. Many big brands use this tactic to market their products, such as
Pepsi and Coca-Cola. This type of campaigns can be especially successful if run in social media. For example,
Pepsi ran a Vine campaign that consisted of engaging directly with customers, asking them to post a short video
of the craziest thing they had done and use the hashtag #LiveForNow.
Bear in mind that in our constantly connected social media world, word-of-mouth today can be as simple as a
video customer can tag their friends in. The American company Chatbooks, which offers easy-to-make photo
books, is a great example of this – they went from a relatively unknown Utah startup to gaining 3 million views
18
in two days, thanks to a viral and hilarious marketing video that resonates with busy parents who want an easy
way to capture everyday moments. The video has now reached 58 million views and counting, and it’s been a
total success. It had little to do with the product itself and much more to do with the struggle parents face to find
the time to do anything else other than parenting when raising a family – something that most FMCG customers
with families can relate to.
Run social media competitions:
Engage with your customers, get to know them on a more personal level and increase brand awareness with a
social media competition. As mentioned above, try to pick something your customers can easily relate to, that
way, they’re more likely to engage with your campaign. You can always theme the competitions with certain
seasonality, such as Mother’s Day or Christmas – but you can also use them as a way of understanding how
your customer perceive your brand.
The below example from Aussie beer brand XXXX Summer Bright Lager enabled consumers to upload an
Instagram photo to personalise a t-shirt prize. This allowed the brand to gain a lot of user-generated content
which helps build their awareness, and capture email addresses of customers who purchased products so they
could send them additional marketing in the future.

Implementation of Promotion in brands and their outcome:

Nestlé:

About Nestlé:
Nestlé is a Swiss multinational food and drink processing conglomerate
corporation headquartered in Vevey, Vaud, Switzerland. It has been the
largest publicly held food company in the world, measured by revenue and
other metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in
2017and No. 33 in the 2016 edition of the Forbes Global 2000 list of the
largest public companies.
Nestlé's products include baby food (some including human milk oligosaccharides), medical food, bottled
water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and
snacks. Twenty-nine of Nestlé's brands have annual sales of over
1 billion CHF (about US$1.1 billion),including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has 447 factories, operates in 189 countries, and
employs around 339,000 people.It is one of the main shareholders of L'Oreal, the world's largest cosmetics
company.
19
Nestlé was formed in 1905 by the merger of the "Anglo-Swiss Milk Company", which was established in 1866
by brothers George and Charles Page, and "Farine Lactée Henri Nestlé" founded in 1867 by Henri Nestlé The
company grew significantly during the World War I and again following World War II, expanding its offerings
beyond its early condensed milk and infant formula products. The company has made a number of corporate
acquisitions including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in
1988, Klim in 1998, and Gerber in 2007.
The company has been associated with various controversies, facing criticism and boycotts over its marketing
of baby formula as an alternative to breastfeeding in developing countries (where clean water may be scarce),
its reliance on child labour in cocoa production, and its production and promotion of bottled water.

Promotion and its effects:

Social media is one of the leading promotional channels which cause Nestle to be successful. Without an
effective promotional channel, nestle might not achieve its profit goal. Although effective promotional channels
need much more expenses, it will bring back a positive result, it can always increase the company’s sales and
profit. Through this, the dividend for the shareholders will also increase as the profit of the company
increases. Besides, this can also attract more investors to invest in the company with a good return. Besides,
email marketing is also done by Nestle, but the result is not efficient. Most respondents argued that no email is
received from Nestle about the promotion, and many of them are not checking email every day. Thus, nestle
should stop using this promotional channel as it is not effective. Nestle should invest more time
and capital in social media promotional channels to attract more buyers.

Buy 1 Get 1 is also the leading promotional method that caused Nestle to be successful. Although Nestle needs
to add more expenses in giving the gift, overall, the sales profit will increase. So, it is also a good promotional
method that can be used by Nestle to increase sales. Besides, customers also like free samples and extra value
offers. Even though it has the risk to increase the expenses of the company, overall, it will also increase the
profit of the company.

20
Amul:

About Amul:
Anand Milk Union Limited (abbreviated as Amul) is an Indian state
government-owned dairy-based cooperative society officially named the
Gujarat Milk Marketing Federation based in Anand, Gujarat. It is under
the ownership of Gujarat Cooperative Milk Marketing Federation
Limited, Department of Cooperation, Government of Gujarat. It is
controlled by 3.6 million milk producers within the city.
Tribhuvandas Kishibhai Patel founded the organisation in 1946 and served as its chairman until his retirement
in the 1970s. He hired Verghese Kurien in 1949, initially as the general manager, where Kurien guided the
technical and marketing efforts of the cooperative. Kurien briefly became the chairman of Amul following
Patel's death in 1994, and is credited with the success of Amul's marketing.
Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk
products, and has since ventured into overseas markets.

Promotion and its effects:

Amul has been ranked No. 1 brand by Campaign Magazine in its list of Top 1000 brands of Asia. From
struggling with the exploitation of middlemen to being every Indian household’s mandatory product, Amul has
come a long way.

By creating amazing strategies that could touch every Indian’s heart, Amul made its way towards success.
Subtle placements of ‘‘Amul Girl’ with current affairs and then posting the same on every social media
platform, Amul was able to create its strong presence in the minds of the customers.
It has been gathering the attention of a lot of customers with the help of digital marketing and has adapted
consumer-friendly strategies. Considering this current global pandemic situation, we all should act realistically
and choose the online mode to market our products.

21
The Coca Cola Company:

About The Coca-Cola Company:

The Coca-Cola Company is an American multinational
corporation founded in 1892, best known as the producer of Coca-
Cola. The drink industry company also manufactures, sells, and
markets other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. The company's stock is
listed on the NYSE and is part of the DJIA and the S&P 500 and S&P 100 indexes.
The soft drink was developed in 1886 by pharmacist John Stith Pemberton. At the time it was introduced, the
product contained cocaine from coca leaves and caffeine from kola nuts which together acted as a stimulant.
The coca and the kola are the source of the product name, and led to Coca-Cola's promotion as a "healthy
tonic". Pemberton had been severely wounded in the American Civil War, and had become addicted to the pain
medication morphine. He developed the beverage as a patent medicine in an effort to control his addiction.
In 1889, the formula and brand were sold for $2,300 (roughly $71,000 in 2022) to Asa Griggs Candler, who
incorporated the Coca-Cola Company in Atlanta in 1892. The company has operated a franchised distribution
system since 1889.[3] The company largely produces syrup concentrate, which is then sold to
various bottlers throughout the world who hold
exclusive territories. The company owns its anchor bottler in North America, Coca-Cola Refreshments.

Promotion and its effects:

The first promotion campaign of Coca cola was Jo Chaaho Ho Jaaye in India. The campaign had both product
level as well as emotional level appeal. The youth segment was the main target in the initial stage and this
campaign suited well in with this segment. Later on Coca cola tried to expand its target segment by launching a
campaign saying Thanda Matlab Coca Cola where the objective was mass appeal. This campaign supported the
product platform rather than the emotional platform. The company followed similar marketing strategies all
across the world. The recent campaign of Coca Cola saying open happiness had both mass appeal as well as
emotional appeal. This campaign has been able to connect with the target segment saying celebrating every day
this campaign has been able to target wide segment from youngster to old age.

22
ITC:

About ITC:
ITC Limited is an Indian multinational conglomerate company that was incorporated
in 1910 under the name Imperial Tobacco Company of India Limited, later the
company was renamed in 1970 as India Tobacco Company Limited. Since then, it has
emerged as a multi-market conglomerate with business and is associated with several
industries like Fast-moving consumer goods (FMCG), hotel and services, information
and technology, agri-business, and packaging.
The company is among India’s 10 most valuable and most admired companies. Its mission is to enhance wealth
by delivering superior value. It is a customer-focused company and thus believes in gaining trust for the
organization that creates value for its stakeholders. They innovate in pursuing new better products, services, and
management practices.

Promotion and its effects:

The promotion strategy of the company has something unique keeping in mind its brand proposition and its
target audience. It promotes its product on various social media platforms also through print, television, and
radio. The brand presence is well-diversified due to its extended product portfolio, they also have different
brand ambassadors for different brands. It has implemented an aggressive marketing strategy and has taken
advantage of any promotional medium available to sell its products.

Several ad campaigns have been launched, which are seen on popular TV channels, broadcasted on the radio,
and shown by hoardings. It has also roped in prominent personalities such as Kareena Kapoor and Shahrukh
Khan for better visibility.

Let’s take a look at their latest ad campaign for its brand Dark Fantasy, which features rapper and music
producer Brodha V, who is well known amongst millennials and Gen-Z. This unique approach to marketing
their cookies to both millennials and older generations has benefitted them in the long run. In contrast to ITC’s
main competitor, Oreo biscuits, which usually direct their ads towards children.

23
Britannia:

About Britannia:
With a legacy of 100 years and annual revenues of Rs. 9000 Cr, Britannia is
one of the leading and most trusted food brands of India as listed in The Brand
Trust Report. Started by a group of English businesses, the company is now a
part of the Wadia Group.
Britannia is a brand which many generations of India have grown up with and its products are universally liked.
Its product portfolio includes a wide range of biscuits, bread, cakes, rusk, and dairy products including cheese,
beverages, milk, and yoghurt.
Britannia is largely famous for its OOH advertisements and traditional marketing strategies. Being an old
established company, it heavily relies on radio messaging and TV advertisements to attract its customers.
Before we explore the marketing strategy of Britannia and its campaign strategy further, let us first take a look
at its marketing mix.

Promotion and its effects:

To attract the consumers of Britannia, they very innovatively came up with ideas to promote their brand in
numerous different ways, and now they have leveraged India’s two most successful passions of all times:
Cricket Movies Nearly every Indian’s dream was to be present at a stadium while India is playing cricket,
during the World Cup, so Britannia created the ‘Britannia Khao, World Cup Jao’ contest in 1999. They made it
very simple for their target market to enter this contest, which was to purchase more products to win a scratch
and win lucky card and winning an all-expenses paid trip to England to watch the World Cup Match. They held
it again in 2002- 2003 held in South Africa which successfully set a unique trend of their own. They even came
up with another creative promotion of ‘Britannia Khao, Cricketer Ban Jao’ that was fuelled by the need of every
Indian to be a part of the passion called Cricket followed by a promotion called ‘Britannia Lagaan Match’ in
2001 that revolved around a movie called Lagaan was based on a cricket match. This promotion gave the
consumers a chance to interact with the film stars and also get to pay cricket with them. The match had over
40,000 spectators and made the headlines of leading newspapers and news channels and was found to be the
most unbeaten promotional act of that year. So we understand that sports and the sporting events are the key
promotional tools of Britannia. Therefore, we now know that Britannia promotes their products through various
media’s such as Events, Television, Magazines and Sales Promotions too.

24
Patanjali Ayurved:

About Patanjali Ayurved:

Patanjali Ayurved Ltd. is the fastest growing FMCG company in India that only
deals with herbal products. Founded in 2006 by Acharya Balkrishna and yoga
guru Baba Ramdev. It’s headquarter is located in Haridwar. In the year 2019, it
earned revenue worth $ 1.2 billion.
Patanjali’s digital marketing strategy revolved around connecting modern India with its culture and heritage of
medicine, Ayurved. Patanjali undoubtedly had a range of products under its brand, but being a new evolving
brand it had a good number of competitors.
While looking at the business side of the organisation, it caters to the personal care and food industries. It
produces more than 2,500 products and manufacturers over 300 aryud medicines for the treatment of various
body ailments.
One of the major reasons for its success is its products being 10%-30% lower in cost than other FMCG
products. The second reason for its success could be the shift in Indian consumers’ lifestyle towards natural and
ayurvedic products.

Promotion and its effects:

Patanjali has considered advertising for its products as a high priority for driving sales. The promotion and
branding in Patanjali marketing mix utilizes all media channels like print, TV, online ads, billboards etc.
Patanjali’s brand ambassador is yoga guru Ramdev Baba, who has a staggering fan following, which enabled
the brand to catapult in the big league within a short span.
The advertisements of Patanjali has been aggressive where they have showcased the importance of using natural
and ayurvedic ways of making products. Their advertisements have also been under scrutiny as they have
alleged that its competitors have been using harmful products. Patanjali advertisements showcase their entire
product range targeting the audience who want a healthy lifestyle by using naturally curated products.
The massive advertising exercise by Patanjali has made it one of the fastest growing FMCG companies in India,
with annual revenues in excess of INR 10,000 crores. The brand has good media coverage via news channels as
well, which boosts the reputation & image of the company. Hence this gives an overview on the marketing mix
of Patanjali Ayurved FMCG company.
25
Dabur:
About Dabur:
Dabur India Ltd is one of the most trusted and leading FMCG companies in India.
It was founded by Dr S.K. Burman in 1884. In the last 100+ years, the small firm
has grown ginormous. Currently, Dabur has accumulated a market share of over
Rs 80,000 crore with annual returns of Rs 8,700 crore. Their main product ranges
deal with hair care, oral care, health care, skincare, home care, and packaged food.
Dabur became a public limited company in 1996 and within 4 years it marked the leading position with a
turnover worth Rs 1,000 Crore. Three distinct divisions were established for improving operations and
management, namely, Goods for Health Care, Family Products, & Dabur Ayurvedic Specialties.
Internationally, Dabur’s goods enjoy a large reach and are available in more than 100 countries. Overseas
revenue from Dabur today accounts for more than 27 per cent of the overall turnover.

Promotion and its effects:

Dabur is known for its use of traditional promotional mediums but they are shifting their marketing strategy to a
digital-first approach. In an insightful interview taken by BrandEquity of A.C. Burman, the Chairman of Dabur,
he talked very intensely about the digital-first approach for Dabur and how the company will shift it’s
marketing efforts to a newer medium.
The rationale for such a shift of marketing strategy comes from the acknowledgement of the fact that social
media and other digital platforms provide far more to a marketer in terms of effectiveness than any previous
medium of promotions. Dabur has been increasing its digital spend over the last few years. From the year 2017,
they have increased their digital marketing spending by 33% in 2018. They spent a total of RS1.99 billion in the
year 2018-19.
Another aspect that Dabur wishes to capitalise on is the e-commerce store trend. These e-commerce stores have
shown their efficiency and effectiveness in the Indian market. Dabur pushes it’s products through multiple e-
commerce stores and targets fitness-conscious millennials as a part of its digital strategy.

26
Godrej Group:

About Godrej Group:

Godrej is an Indian Public company that was established in the year 1897 and
has its headquarters in Mumbai, Maharashtra. Godrej is a family owned and
management operated business. It operates in a number of sectors and has a
wide range of products under its brand name. Godrej is one of the most trusted
brands in Indian market and is an important part of every Indian household. Its amazing past has laid the
foundation for its incredible future where trust, quality and Godrej all go hand in hand. The company faces stiff
competition from different other companies but it has led them to uplift their performance and achieve much
better results.

Promotion and its effects:

Godrej has gone for an all-out promotional strategy that is well planned and is executed at the highest level in
order to communicate with the consumers. Advertising is a very efficient tool in the Indian market and Godrej
has roped in some of the most famous celebrities to become its brand ambassadors. Film stars like Aamir Khan,
Hrithik Roshan, Preity Zinta and captain of Indian cricket team Mahendra Singh Dhoni are some of its well-
known faces. Advertisements are shown in the print media like the magazines, newspapers and billboards. The
most important medium for the advertisements is the television and internet. The catchy tunes, smart one-liners
and celebrities are a winsome collection in the Indian market for promoting a product successfully.
Packaging is also an integral part of Godrej’s promotional system. It has used various color schemes as well as
designs so that all its products look attractive and eye catching. Packaging should be such that it would provide
ample protection for maintaining the form of the basic product. Godrej also has given a lot of thought on the
labeling of its products. The labels are in at least three different languages so that the consumer can easily
identify the product and go through the various information and instruction written on them. This is a very good
promotional strategy aimed at connecting with the consumers directly. Promotions is a poor part of the
Marketing mix of Godrej and it should improve in the same looking at the competition.

27
Parle:
About Parle:
Parle is known as one of the largest selling biscuit brands in the world. The
company was founded by the Chauhan family, headquartered in Mumbai,
Maharashtra. They have a 150+ product range, 36 popular brands, and 21+
export destinations.
They are also known as one of the oldest brands in India. It is called a well-known brand following the success
of its products like Parle-G biscuits and products under cold beverages. It manufactures products in various
segments which makes them unique and successful.
While knowing the brand it’s of importance to know about the company’s marketing mix.

Promotion and its effects:

Parle brand uses all sources of promotion like Tv, newspaper, online ads, etc. They are also very active on tv
advertisements especially when Parle G biscuit had introduced the promotions were made by using its mascot,
Neerja Despande, the young girl on the Parle G products. arle has remained distinctive with its packaging that
few of its products have been ingrained subconsciously just for its packaging which attracts consumer attention.
The brand uses taglines such as ‘Bharat ka Apna Biscuit’ ‘Melody Itni Chocolaty Kyun Hai’ to excite the
emotions of their customers.

28
Relation in between Promotion and FMCG Sector:

The relationship between promotion and the FMCG (Fast-Moving Consumer Goods) sector is a crucial aspect
of marketing and sales. Promotional activities play a significant role in shaping consumer behavior, creating
brand awareness, driving sales, and building brand loyalty within the FMCG industry. Here are some key
aspects of the relationship:
Creating Brand Awareness:
Promotions are instrumental in introducing new FMCG products to the market and generating brand awareness.
Advertising, public relations, social media campaigns, and other promotional efforts help to create visibility and
inform consumers about the product's existence, benefits, and availability.
Influencing Purchase Decisions:
Promotions directly impact consumer purchase decisions in the FMCG sector. Sales promotions, such as
discounts, coupons, buy-one-get-one (BOGO) offers, loyalty programs, and product bundling, incentivize
consumers to choose a particular FMCG product over competitors. These promotional strategies aim to attract
consumers, encourage trial purchases, and drive sales volume.

Stimulating Impulse Purchases:

FMCG products often rely on impulse purchases, where consumers make buying decisions spontaneously.
Promotions that create a sense of urgency, limited-time offers, or appealing packaging can stimulate impulse
purchases. Point-of-sale displays, attractive product placement, and eye-catching promotions near checkout
counters are examples of tactics used to capitalize on impulse buying behavior.
Building Customer Loyalty:
Effective promotions can foster customer loyalty within the FMCG sector. Loyalty programs, rewards, and
personalized offers can incentivize repeat purchases and build long-term relationships with consumers.
Promotions that provide added value, such as free samples, exclusive access, or personalized recommendations,
create a sense of appreciation and loyalty among consumers.
Driving Product Trials:
For new or less-established FMCG brands, promotions can be instrumental in driving product trials. Free
samples, product demonstrations, or introductory offers encourage consumers to experience the product
firsthand, potentially leading to repeat purchases and brand loyalty.

29
Reinforcing Brand Positioning:
Promotions play a role in reinforcing the desired brand positioning within the FMCG sector. Strategic
messaging, creative advertising campaigns, and consistent branding help shape consumers' perception of the
product's quality, value, and relevance to their needs. Promotions aligned with the brand's image and values can
enhance brand equity and differentiate it from competitors.

Encouraging Word-of-Mouth Marketing:

Memorable and engaging promotions in the FMCG sector can stimulate positive word-of-mouth marketing.
When consumers have a positive experience with a product or promotional offer, they are likely to share their
experiences with friends, family, and social networks. This organic promotion amplifies the reach and impact of
FMCG brand promotions.

In summary, the relationship between promotion and the FMCG sector is interdependent. Promotional activities
help create brand awareness, influence purchase decisions, stimulate impulse purchases, build customer loyalty,
drive product trials, reinforce brand positioning, and encourage word-of-mouth marketing. Effective
promotional strategies are essential for FMCG companies to gain a competitive edge and succeed in a highly
competitive market.

Theory establishing relation in between Promotion and FMCG Sector:

The promotion strategies in the FMCG (Fast-Moving Consumer Goods) sector are crucial for creating brand
awareness, generating sales, and increasing customer loyalty. A robust promotional strategy can have a
significant impact on the success of an FMCG product in the market.
One theory that explains the relationship between promotion and the FMCG sector is the hierarchy of effects
model. This model suggests that consumers go through a series of stages before making a purchase decision.
These stages are awareness, knowledge, liking, preference, conviction, and purchase.
The hierarchy of effects model proposes that consumers go through a series of cognitive and affective
stages before making a purchase decision. These stages are as follows:
a. Awareness: At this stage, consumers become aware of the existence of a particular product or brand.
Promotion plays a crucial role in creating initial awareness through advertising, public relations, and other
marketing communication activities.
b. Knowledge: Once consumers are aware of a product, they seek more information about it. Promotional
efforts like informative advertisements, product demonstrations, and online content can provide consumers with
the necessary knowledge about the features, benefits, and usage of the FMCG product.
30
c. Liking: After gaining knowledge about the product, consumers develop a favorable attitude or liking towards
it. Promotional activities that highlight the unique selling proposition (USP), quality, or positive consumer
testimonials can enhance this liking.
d. Preference: At this stage, consumers start to favor a particular brand or product over its competitors.
Promotions that emphasize the product's superior qualities, competitive pricing, or added value can influence
consumers' preferences.
e. Conviction: Consumers develop a strong conviction or belief in the product's superiority or value
proposition. Promotions such as endorsements by trusted individuals or organizations, positive reviews, and
comparative advertising can help strengthen this conviction.
f. Purchase: The final stage involves the consumer's decision to purchase the product. Effective promotions
that have guided consumers through the previous stages can greatly influence their purchase behavior.
Promotions offering discounts, limited-time offers, or loyalty rewards can provide the final push for consumers
to make the purchase

Promotion plays a critical role in each of these stages. For example, advertising can create awareness of a
product, while sales promotions can increase consumer liking and preference. A well-executed promotion can
move the consumer through the various stages of the hierarchy of effects, ultimately resulting in a purchase.
Another theory that relates to promotion in the FMCG sector is the AIDA model. AIDA stands for Attention,
Interest, Desire, and Action. This model suggests that successful promotional activities must grab the
consumer's attention, generate interest, create a desire for the product, and ultimately lead to action (i.e.,
purchase).

31
The AIDA model is a well-known marketing communication framework that outlines the stages
consumers typically go through during the promotional process. It stands for Attention, Interest, Desire,
and Action:
a. Attention: The first objective of promotion is to grab the consumer's attention. In the FMCG sector,
advertisements, eye-catching packaging, or in-store displays can attract attention and create initial interest in the
product.
b. Interest: Once attention is captured, the next step is to generate interest in the product. Promotions should
provide compelling information about the product's benefits, unique features, or value proposition to sustain and
deepen consumer interest.
c. Desire: Promotional activities should create a desire or craving for the product in consumers. This can be
achieved through persuasive messaging, emotional appeals, testimonials, or demonstrations that highlight the
product's positive attributes and benefits.
d. Action: The ultimate goal of promotion is to prompt consumers to take action and make a purchase.
Promotions can use various techniques like limited-time offers, discounts, free samples, or incentives to
encourage consumers to convert their interest and desire into an actual purchase.

By following the AIDA model, promotions in the FMCG sector can systematically guide consumers through the
stages of attention, interest, desire, and action, ultimately leading to increased sales and brand engagement.
In conclusion, both the hierarchy of effects model and the AIDA model provide frameworks for understanding
the relationship between promotion and the FMCG sector. These models highlight the importance of effective
promotional strategies in creating awareness, generating interest, fostering desire, and prompting action,
ultimately leading to consumer purchases and brand loyalty.

32
In the FMCG sector, promotions that offer discounts, free samples, or other incentives can grab the consumer's
attention and generate interest in the product. By creating a desire for the product through effective messaging
and branding, the consumer is more likely to take action and make a purchase.
In summary, both the hierarchy of effects model and the AIDA model provide insights into the relationship
between promotion and the FMCG sector. A well-executed promotional strategy can move the consumer
through the various stages of the hierarchy of effects, ultimately resulting in a purchase. Similarly, promotional
activities that follow the AIDA model can grab the consumer's attention, generate interest, create a desire for the
product, and lead to action.

33
Models representing impacts of Promotion in FMCG Sector:

34
 LITERATURE REVIEW

Literature review provides a theoretical outline of the study. It gives a complete sense about the assumption of
the concept. Moreover, it gives us the provision to understand how to proceed with the research work. Most
importantly, it helps to identify the gap of the study. This gap gives us the insight where to shed light. In a nutshell,
it gives the momentum to the study. Our trivial approach in this regard is depicted below:

Sl Name Title of the Year of Broadn Objective Variable Data Methodol Findings
N of the Journal Publicati ess of of the of the Used ogy
o. Autho on the Study Study
r Study

1 Smith, "The 2010 Sales To Sales Sales Quantitati Promotio

J. Impact of impact examine data ve ns have a
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s on of large regression and
FMCG promotio FMCG models significa
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activities y on
on sales in FMCG
the sales
FMCG
sector

2 Johnso "Consumer 2012 Consum To Consume Survey Qualitativ Consume

n, A. Perception er investigat r data e analysis, rs have a
of percepti e perceptio from descriptive more
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al perceptio purchase consum perceptio
Strategies n of intention ers n of price
in the various discounts
FMCG promotio compare
Industry" nal d to other
 strategies promotio
in the nal
FMCG strategies
industry

3 Lee, "The Role 2015 Brand To Brand Panel Quantitati Promotio

K. of switchin understan switching data ve ns play a
Promotion g d the role behavior, from analysis, significa
in Brand behavior of promotio FMCG logistic nt role in
Switching promotio nal househo regression triggerin
Behavior" n in activities lds models g brand
influencin switchin
g brand g
switching behavior
behavior among
in the FMCG
FMCG consume
sector rs

4 Wang, "Effectiven 2017 Online To Online E- Quantitati Online

L. ess of promoti evaluate promotio commer ve promotio
Online ons the n, sales ce sales analysis, ns have a
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s in the ess of nce website analysis impact
FMCG online traffic on
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ns in sales,
driving particular
sales in ly in
the increasin
FMCG g website
sector traffic
and
driving
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purchase
s

5 Garcia "The 2018 Brand To Brand Survey Quantitati Promotio

, M. Influence loyalty examine loyalty, data ve ns have a
of the promotio from analysis, positive
Promotion influence nal FMCG structural impact
s on Brand of activities consum equation on brand
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the FMCG ns on mediated
Industry" brand by
loyalty perceive
among d value
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consumer customer
satisfacti
on.

6 Patel, "Promotio 2019 Purchas To Purchase Point- Quantitati Different

R. nal Tactics e analyze behavior, of-sale ve promotio
 and behavior the promotio transacti analysis, nal
Customer relationsh nal tactics on data regression tactics,
Purchase ip analysis such as
Behavior between price
in FMCG promotio discounts
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and coupons,
customer have
purchase varying
behavior effects on
in FMCG customer
retailing purchase
behavior
in the
FMCG
sector

Kim, "Effectiven 2020 Social To assess Social Social Quantitati Social

S. ess of media the media media ve media

7 Social promoti effectiven promotio data, analysis, promotio

Media ons ess of ns, brand online correlation ns
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s in the media s, y impact
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FMCG en s and
industry customer
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FMCG
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8 Chen, "The Role 2021 Purchas To Purchase Survey Quantitati Promotio
H. of e examine decision, data ve ns have a
Promotion decision the role of promotio from analysis, significa
on promotio nal FMCG logistic nt
Consumer n in activities, consum regression influence
Purchase influencin price ers models on
Decision in g sensitivit consume
the FMCG consumer y r
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decisions decisions
in the ,
FMCG particular
sector ly among
price-
sensitive
consume
rs in the
FMCG
sector

39
 OBJECTIVES

 To identify the concept of promotion in consumer buying decision.

 To determine the most influential promotion technique.

 To identify the influence of promotion technique in consumer buying decision.

 To figure out the various promotion technique opted by FMCG sector.

 A comparative study to assess the impact of online and offline promotion and its
relevancy in the present scenario.

RESEARCH METHODOLOGY

Research methodology is the specific methods or techniques used to identify, select, process, and analyse data
about a topic. In a research paper, the methodology section allows the reader to evaluate a study’s overall
validity and reliability.

Types of research are of different natures like:

 Empirical Nature: Research that is based on empirical observation and measurement of phenomena is
research that the researcher has personally experienced. The information obtained in this way may be
compared to a theory or hypothesis, but the conclusions are still grounded in actual experience.
 Analytical Nature: Analytical research is concerned with figuring out the causal connections between
two or more variables. The goal of analytical study is to identify the causes and mechanisms underlying
the trade deficit's movement over the course of a particular period.
 Descriptive Nature: A population, circumstance, or phenomena is intended to be correctly and
methodically described through descriptive study. Questions about why cannot be answered, but they
may be answered about what, where, when, and how. A descriptive research strategy can examine one
or more variables using a wide range of research techniques.
 Exploratory Nature: Exploratory research is a technique approach that tackles previously unstudied
research problems. Exploratory research is frequently qualitative and exploratory in character. A large-
sample exploratory investigation, on the other hand, can be quantitative as well.
 Qualitative Nature: An interpretative, naturalistic approach to the world is used in qualitative research.
This implies that qualitative researchers observe events in their natural environments, aiming to make
sense of or interpret them in terms of the meanings individuals assign to them.
40
  Quantitative Nature: Quantitative research is concerned with statistics, reasoning, and an objective
viewpoint. Quantitative research emphasizes numerical and static data, as well as thorough, convergent
reasoning rather than divergent thinking.

This study is empirical in nature. Empirical research is a research method used by researchers to test
information claims and develop new knowledge. Empirical method focuses on observation and
experimentation. The empirical approach is useful because it provides us with a clear image of how
promotion has influenced the FMCG Sectors.

Data which are used in research are mainly of two types:

 Primary Data: In specifically for research, primary data is information that is gathered for the first time
through personal experiences or proof. It can also be called raw information or first-hand knowledge.
The majority of the information is gathered by observations, physical examinations, postal
questionnaires, surveys etc.
 Secondary Data: Data that is gathered by a user other than the main user is referred to as secondary
data. Secondary data is utilised to expand the sample size of research projects and is also preferred since
it is quicker and more efficient to utilise an existing resource.

In this study we will be using primary data, the data produced by the researcher themselves, such as
surveys, interviews, and experiments specifically created for comprehending and resolving the
current study issue. This data will provide us with the required result to understand how promotion
has influenced the FMCG Sector.

Procedures to collect the primary data:

1. Observation: As the name suggests, observation is the process of gathering information by watching.
Because the researcher must actively participate in the environment where her respondents are while
taking notes and/or recording, this form of data collecting is referred to as a participatory study. A
variety of techniques, including listening, reading, touching, and recording behavior and phenomenon
features, can be used to gather data through observation.
2. Interview: As a qualitative research method, interviews can be characterized as conducting intensive
individual interviews with a small number of respondents to explore their perspectives on a particular
idea, program, or situation. Interviews can be conducted in three different ways: structured, semi-
structured, and unstructured.
3. Questionnaire: A questionnaire is a research tool that consists of a series of standardized questions to
ask one or more respondents in order to collect statistically significant information on a certain topic.
41
Questionnaires are of different types:
i) Structured: The structured questionnaire is a form used to gather information from respondents.
This sort of questionnaire comprises of uniformly worded, sequentially asked closed questions that
demand respondents to select from a predefined set of responses.
ii) Unstructured: An unstructured survey gathers qualitative information. The survey in this scenario
includes a straightforward layout and a few branching questions, but nothing that restricts the
answers of a respondent. The inquiries are more comprehensive.
iii) Open Ended: In open-ended inquiries, participants are given the freedom to respond in their own
words without being limited by a prepared list of answer options. In qualitative research techniques
and exploratory studies, open-ended questions are frequently employed.
iv) Closed Ended: Closed-ended questions are those that can only be answered by choosing from a
small number of answers, typically multiple-choice questions with a simple 'yes' or 'no' response or a
rating scale.

In our study we will be collecting our primary data with the help of questionnaire which is structured
and close ended. The question categories, such as "yes/no" or among predetermined multiple-choice
options, that require respondents to select from a certain set of predefined replies. Closed-ended
questions are the most effective for reducing ambiguity, boosting consistency, and understanding a
parameter's viewpoint across respondents since they have a limited number of possible answers, which
limits the replies and enables the surveyor to get a more precise result.

Target Population:
The group of people from whom research will be done on and conclusions drawn by the intervention is known
as the target population. It is important to properly describe the target population's characteristics as well as
those of any subgroups when conducting a cost-effectiveness study.

42
Sampling Concept:
It is quite rare to be able to gather data from every member of a group of people you are researching. Rather,
you pick a sample. The group of people who will actually take part in the study is known as the sampling.
You must carefully consider how you will choose a sample that is typical of the entire group if you want to
make meaningful inferences from your findings. A sampling method is what this is. In your research, you can
utilise one of two main types of sampling techniques:

1) Probability Sampling: Probability sampling uses random selection, which enables you to draw robust
statistical conclusions about the entire group. The different types of probability sampling are:
 Simple Random Sampling: Simple random sampling is a type of probability sampling in which a
selection of participants is chosen at random from a population. Each person in the population has an
equal probability of being chosen. The data is then collected from as large a percentage of this
random selection as possible.
 Systematic Sampling: Systematic sampling is a probability sampling approach in which researchers
select individuals of the population at regular intervals, such as every 15th person on a list of the
population. If the population is in a random order, this can mimic the benefits of simple random
sampling.
 Stratified Sampling: Researchers use stratified sampling to divide participants into subgroups called
strata based on shared features (e.g., race, gender, educational achievement). Each subgroup is then
randomly picked using a different probability sampling method.
 Cluster Sampling: Cluster sampling divides a population into smaller groupings known as clusters.
They then draw a sample at random from among these groupings. Cluster sampling is a type of
probability sampling that is frequently used to examine large populations, particularly those that are
geographically distributed.

2) Nonprobability Sampling: Non-probability sampling entails non-random selection based on convenience or

other criteria, allowing for easy data collection. The different types of non-probability sampling are:
 Convenience Sampling: Convenience sampling is a non-probability sampling strategy in which
units are chosen for inclusion in the sample because they are the most easily accessible to the
researcher. This could be because of geographical proximity, availability at a specific time, or
willingness to engage in the research.

43
  Judgmental Sampling: Judgmental sampling, also known as purposive or authoritative sampling, is
a non-probability sampling technique in which sample members are chosen solely on the basis of the
researcher's expertise and judgement.
 Quota Sampling: Quota sampling is a non-probability sampling method that relies on the non-
random selection of a pre-set number or proportion of units. This is referred to as a quota. You split
the population into mutually exclusive categories (called strata) and then recruit sample units until
you reach your quota.
 Snowball Sampling: Snowball sampling is a non-probability sampling approach in which new units
are recruited by existing units to form part of the sample. Snowball sampling can be a valuable
method for conducting research on persons who have unique characteristics that are otherwise
difficult to detect.

We picked simple random sampling method for data collection because it is an unbiased sampling
technique in which any subset of the population has the same chance of being chosen for sampling as any
other subset of the population.

44
 DATA ANALYSIS

To examine the data that, we obtained, we used Excel and Google Sheets. Excel has a massive capability
for doing statistical analysis on datasets with hundreds of thousands of records in a user-friendly
manner.
DEMOGRAPHIC PROFILE
Age Number of Respondents Percentage(%)
Below 20 140 42.4%
21-30 190 57.6%
31-40 0 0
Above 40 0 0
Total 330 100%

Gender Number of Respondents Percentage(%)

Male 110 33.3%
Female 220 66.7%
Prefer not to say 0 0
Total 330 100%

Profession Number of Respondents Percentage(%)

Student 310 93.9%
House wife 0 0
Employed 20 6.1%
Unemployed 0 0
Total 330 100%

Income Status Number of Respondents Percentage(%)

Up-to Rs 5,000 190 59.4%
Rs. 5,000-10,000 40 12.5%
Rs.10,000-20,000 30 6.2%
20,000 and above 70 21.9%
Total 330 100%

45
 ANALYSIS
Question 1:

How Frequently do you buy FMCG Products?

Sl. No Particulars Number of Respondents Percentage(%)

1. Frequently 150 45.5%
2. Once in a Week 30 9.1%
3. Once in a Month. 70 21.2%
4. Rarely 80 24.2%
Total 330 100%

Interpretations:

Out of 330 respondents, 45.5% buy FMCG products frequently, 9.1% buy them at least once a week, 21.1% buy
them once a month, and 24.2% buy them rarely.

According to the findings of the survey, every respondent purchases FMCG products, and FMCG products are
those things that the majority of respondents purchase on a regular basis, indicating that FMCG products are
required by everyone.
46
 Question 2:

What are the factors that attract you more while shopping for FMCG Products?

Sl. No Particulars Number of Respondents Percentage(%)

1. Offers and Discounts. 170 51.5%
2. Customer Service. 10 3%
3. Quality. 130 39.4%
4. Brand Reputation. 20 6.1%
Total 330 100%

Interpretations:
Out of 330 respondents, 51.5% are mainly attracted to buy the FMCG products by the offers and discounts
provided by the brands while 3% are mainly tend to buy products by the customer services received from the
brands end,39.4% tends to get attracted to buy the FMCG products due to the quality of the product the brand
provides and lastly 6.1% gets attracted to buy the FMCG product by looking into the products Brand
Reputation.

According to the study findings, the majority of respondents are enticed to buy FMCG items by seeing
attractive offers and discounts since they are mostly required on a daily basis and the offers help them save.
Customers' purchasing habits are also influenced by product quality, although few consumers consider the
brand's reputation before consuming FMCG items, and even fewer consider customer service.
47
 Question 3:

While switching the brand I always prefer beneficial promotion skill.

Sl. No Particulars Number of Respondents Percentage(%)

1. Strongly Agree 100 30.3%
2. Agree 180 54.5%
3. Neutral 50 15.2%
4. Disagree NIL NIL
5. Strongly Disagree NIL NIL
Total 330 100%

Interpretations:

Out of 330 respondents, 30.3% strongly agrees that they prefer beneficial promotional skill while switching the
band while 54.5% agrees to and 15.2% stays neutral with their response.

According to the survey data, we can see that promotional skills play a vital part in retaining consumers because
when they see improved promotional abilities, they tend to change the brand of the FMCG product they are
using, and no respondent disagrees with this point.

48
 Question 4:

Have you purchased any FMCG product after coming across any promotion of the product?

Sl. No Particulars Number of Respondents Percentage(%)

1. Strongly Agree 60 18.2%
2. Agree 130 39.4%
3. Neutral 130 39.4%
4. Disagree 10 3%
5. Strongly Disagree NIL NIL
Total 330 100%

Interpretations:

Out of 330 res wespondents,18.2% strongly agrees and 39.4% agrees that they have purchased FMCG Products
after coming across promotional activities and 39.4% stays neutral while only 3% disagrees.

According to the study's findings, we can conclude that promotional activities serve to attract consumers and
enhance market sales.

49
 Question 5:
In what way promotion has influenced you?

Sl. No Particulars Number of Respondents Percentage(%)

1. Better Recall 60 18.2%
2. Positive Impression 170 51.5%
3. Interest 60 18.2%
4. Better Exposure 40 12.1%
Total 330 100%

Interpretations:

Out of 330 respondents, promotion has influenced 18.2% to have better recall of the product, where as 51.5%
has been influenced to have positive impression on the product by the promotions,18.2% has generated interest
for the product and 12.1% has got better exposure from the promotion.

According to the study findings, promotion leads customers to have a better recall, increase curiosity, and
provide greater exposure of the product, but the majority of consumers develop a good opinion.
50
 Question 6:
Which type of promotional medium for FMCG products is the most effective one?

Sl. No Particulars Number of Respondents Percentage(%)

1. Online Platform 240 72.7%
2. Television 60 18.2%
3. Newspaper NIL NIL
4. Radio NIL NIL
5. Magazine 30 9.1%
Total 330 100%

Interpretations:

Out of 330 respondents, 72.7% considers online platform to be the most effective as promotional medium while
18.2% considers television on the other hand newspaper and radio is not considered effective according to the
respondents though promotion via magazine has been considered effective by 9.1%.

According to the study, online and television are the most effective promotional mediums because everyone
now has access to the internet and television has always been an effective medium for promotion before online
promotion came into the market because the majority of the population has access to television as well.
However, because few people nowadays read newspapers or listen to radios, employing this platform for
marketing is ineffective.
51
 Question 7:

Do promotional offers increase your demand for the product?

Sl. No Particulars Number of Respondents Percentage(%)

1. Strongly Agree 100 30.3%
2. Agree 150 45.5%
3. Neutral 70 21.2%
4. Disagree 10 3%
5. Strongly Disagree NIL NIL
Total 330 100%

Interpretations:

Out of 330 respondents,30.3% strongly agrees and 45.5% agrees that promotional offers increase the demand
for the product whereas 21.1% remains neutral and only 3% disagrees to the question.

According to the study findings, promotional offers enhance the demand for the product since customers are
drawn to the offer and likely to buy the goods in quantity to take advantage of the incentives, resulting in a rise
in the demand for the product.

52
 Question 8:

Would you buy the FMCG products if you didn't see any promotional activities?

Sl. No Particulars Number of Respondents Percentage(%)

1. Strongly Agree 40 12.1%
2. Agree 90 27.3%
3. Neutral 200 60.6%
4. Disagree Nil nil
5. Strongly Disagree nil Nil
Total 330 100%

Interpretations:

Out of 330 respondents,12.1% strongly agrees and 27.3% agrees that they would buy FMC Products even if
they did not see any promotional activities and 60.6% remains neutral with their response.

According to the study findings, even in the absence of any promotional activity, consumers would purchase
FMCG items since they are a necessity in our everyday lives. On the other hand, the majority of respondents are
unsure if they would buy any FMCG items without seeing any promotional activity, implying that witnessing
promotional activities might provide them with more information about the product they are going to purchase.
53
 Question 9:

Do promotional activities help you differ between the brands of two homogeneous products?

Sl. No Particulars Number of Respondents Percentage(%)

1. Strongly Agree 50 15.2%
2. Agree 190 57.6%
3. Neutral 80 24.2%
4. Disagree 10 3%
5. Strongly Disagree NIL NIL
Total 330 100%

Interpretations:

Out of 330 respondents,15.2% strongly agrees and 57.6% agrees that promotion helps to differ between the
brands of 2 homogeneous products whereas 24.2% remains neutral and 3% disagrees to the question.

According to the survey results, promotional activities assist the majority of the customers in differentiating
between the brands of two homogenous items.

54
 Question 10:

Do you get proper product details from the promotional activities of the FMCG products?

Sl. No Particulars Number of Respondents Percentage(%)

1. Strongly Agree 40 12.1%
2. Agree 160 48.5%
3. Neutral 100 30.3%
4. Disagree 30 9.1%
5. Strongly Disagree NIL NIL
Total 330 100%

Interpretations:

Out of 330 respondents,12.1 % strongly agrees and 48.5% agrees that from promotional activities helps to get
proper product details whereas 30.3% remains neutral and 9.1% disagrees to the question.

According to the survey results, promotional activities assist the majority of customers in obtaining proper
product details; however, some consumers remain skeptical about the product information even after
participating in promotional activities, and very few do not believe in the product details depicted in
promotional activities.

55
 Question 11:

Which method of Sales Promotion do company use to push sales?

Sl. No Particulars Number of Respondents Percentage(%)

1. Price of Discount 210 63.6%
2. Premium Extra Quantity 100 30.3%
3. Others 20 6.1%
Total 330 100%

Interpretations:

Out of 330 respondents, 63.6% says that price of discount is the promotional method used by the companies to
do push sales, whereas 30.3% says that premium extra quantity provided by the brands is used for promotion to
do push sales and 6.1% says that brands use different promotional methods to do push sales.

According to the findings of the survey, we can conclude that price of discount as the promotional method is
mainly used by the brands to conduct push sales but premium extra quantity is also an effective promotional
method to conduct push sales.

56
 Question 12:

Which of the following format you prefer to make purchase?

Sl. No Particulars Number of Respondents Percentage(%)

1. Departmental Store 60 18.2%
2. Super Market 130 39.4%
3. Convenient Store 30 9.1%
4. Kirana Store 20 6.1%
5. Online Platform 90 27.3%
Total 330 100%

Interpretations:

Out of 330 respondents, 18.2% prefers departmental store to purchase FMCG Products, where as 39.4% prefers
to buy from the super markets, 9.1% prefers to buy from convenient store, 6.1% from kirana store and 27.3%
from the online platform.

According to the survey findings, we can conclude that most consumers purchase FMCG products from
Supermarkets because there are many discounts and offers available there. However, online platforms are also
used, and while they are not as popular as Supermarkets, consumers prefer online platforms over other stores
because online shopping saves time and money.
57
 CONCLUSION

Promotions have a significant impact on the FMCG (Fast-Moving Consumer Goods) sector. They play a crucial
role in driving sales, increasing brand awareness, and fostering customer loyalty. Promotions in the FMCG
sector encompass a variety of strategies, including discounts, coupons, loyalty programs, product bundling, and
in-store displays.

One of the key benefits of promotions in the FMCG sector is their ability to stimulate consumer demand. By
offering discounts or special deals, companies can attract price-sensitive customers and encourage them to make
immediate purchases. Promotions can also help companies clear excess inventory, introduce new products, or
rejuvenate sales during slower periods.

Furthermore, promotions contribute to building brand awareness and increasing market penetration. By
investing in promotional activities such as advertising, sponsorships, or social media campaigns, FMCG
companies can reach a wider audience and generate interest in their products. Effective promotions create brand
recall and influence consumer behaviour, leading to increased sales and market share.
Another advantage of promotions is their ability to foster customer loyalty. Loyalty programs, for instance,
reward customers for repeat purchases, encouraging them to stick with a particular brand over the long term.
This not only boosts customer retention but also enhances customer lifetime value and provides a competitive
edge in the FMCG market.

However, it is important to note that promotions in the FMCG sector should be carefully planned and executed.
Excessive reliance on promotions can erode brand value and profit margins, leading to a price-focused customer
base and reduced profitability. Additionally, the success of promotions relies on effective communication,
accurate targeting, and aligning the promotion with consumer preferences.

In conclusion, promotions have a profound impact on the FMCG sector, driving sales, increasing brand
awareness, and fostering customer loyalty. When strategically implemented, promotions can help FMCG
companies achieve their business objectives, gain a competitive advantage, and thrive in a dynamic
marketplace. However, a balanced approach, considering the long-term implications and profitability, is
essential for sustainable success in the FMCG industry.

58
 FUTURE SCOPE
Several upcoming trends and improvements are anticipated to affect the future of promotion in the FMCG
(Fast-Moving Consumer Goods) industry. Here are some possible areas for expansion and development:

 Digital and Social Media Marketing: As customers' lives become more digitalized, the FMCG industry
will continue to promote itself using digital and social media platforms. To successfully reach and
interact with their target audience, businesses will rely on focused internet advertising, influencer
marketing, and engaging social media campaigns. Personalization and interactive content will be critical
methods for capturing customer attention and driving conversions.

 Data-driven Personalization: To provide personalized promotions, FMCG firms will increasingly rely
on data analytics and customer insights. Companies may personalize promotions to individual
requirements by analyzing customer preferences, buying behavior, and demographic data using
technology such as artificial intelligence (AI) and machine learning (ML). This method enables more
effective targeting, enhanced relevance, and higher conversion rates.

 Augmented Reality and Virtual Reality: AR and VR technology provide tremendous prospects for
immersive and interactive promotional experiences in the FMCG sector. To give consumers with a
unique and memorable promotional experience, brands may build virtual product demos, interactive
packaging, and engaging virtual shopping experiences. Consumer engagement, product comprehension,
and brand loyalty might all benefit from these technologies.

 Influencer Marketing Evolution: In the FMCG industry, influencer marketing will continue to evolve,
with a move towards micro- and Nano-influencers. Because these influencers have smaller but highly
engaged and specialist audiences, they can provide more focused and authentic advertising messages.
Long-term collaborations and ambassador programs will also be prioritized by brands in order to
strengthen ties with influencers and use their impact for continuing marketing.

 Sustainability and Conscious Consumerism: As environmental and sustainability issues gain traction,
FMCG businesses will add sustainability-focused marketing. Promotions emphasizing eco-friendly
packaging, ethical sourcing, and responsible consumption will appeal to environmentally sensitive
customers. Brands that can demonstrate their commitment to sustainability through promotional
activities are likely to attract an increasing number of environmentally conscientious customers.
59
  Omni channel Integration: To offer a smooth and consistent brand experience, the FMCG industry will
continue to combine promotions across many channels, both online and offline. Companies will
prioritize promotion alignment across e-commerce platforms, social media platforms, mobile
applications, in-store displays, and traditional advertising methods. This strategy guarantees that
consumers receive a consistent and engaging promotional message regardless of the medium through
which they interact.

 Gamification and Interactive Experiences: Gamification techniques and interactive experiences will be
utilized to boost customer participation in FMCG promotions. Brands may develop mobile applications,
loyalty programs, and contests with interactive elements, prizes, and incentives. By making promotions
interesting and interactive, brands may build enthusiasm and drive customer participation.

Overall, digital improvements, data-driven personalization, immersive technology, sustainability concerns,

Omni channel integration, influencer marketing evolution, and interactive experiences will drive the future
scope of promotion in the FMCG industry. In an increasingly competitive environment, FMCG firms can stay
current, connect with their target audience, and promote customer engagement and loyalty by embracing these
trends.

60
 LIMITATIONS OF THE STUDY:
While promotion plays a crucial role in the FMCG (Fast-Moving Consumer Goods) sector, it also has certain
limitations that can impact its effectiveness. Here are some limitations to consider:

 Short-Term Impact: Promotions in the FMCG sector often yield short-term results. While discounts,
sales promotions, and limited-time offers can drive immediate sales, they may not necessarily contribute
to long-term brand loyalty. Consumers may be driven by the promotion rather than the intrinsic value of
the product, and once the promotion ends, their interest may diminish.

 Price Sensitivity: FMCG items are frequently price-sensitive, and campaigns generally rely largely on
discounts and price reductions to entice customers. However, this emphasis on price promotions might
educate customers to expect constant reductions, making it difficult for businesses to retain profitability
and the effect of promotions over time.

 Margin Erosion: Frequent promotions and discounts can cause FMCG firms' margins to erode. While
promotions may increase sales volume, decreased pricing might have a detrimental influence on profit
margins. Over-reliance on promotions to generate sales may not be long-term sustainable if it
jeopardizes profitability.

 Brand Dilution: Excessive or badly executed promotions in the FMCG sector can dilute the brand
image and sense of quality. If customers get accustomed to purchasing the product just during
promotional periods, the perceived value will suffer, undermining the brand's premium status. Brands
must establish a balance between promotional efforts and brand equity maintenance.

 Consumer Skepticism: Due to the prominence of inaccurate or overstated promises, consumers have
grown increasingly skeptical about FMCG marketing. With so many promotional messages
overwhelming customers, they may doubt the validity or worth of the campaigns, resulting in decreasing
trust and efficacy.

61
  Promotion Fatigue: Constant exposure to promotions might lead to customer promotion fatigue.
Consumers may become desensitised and less sensitive to promotional messaging if they are
overwhelmed with promotions from various businesses. To effectively cut through the clutter and catch
customer attention, brands must discover unique and differentiated techniques.

 Ineffective Targeting: Promotions that are not precisely targeted to the proper audience may fail to
create the intended reaction. To identify their target audience and provide targeted promotions that
resonate with their individual needs and preferences, FMCG firms must engage in market research, data
analytics, and consumer segmentation.

When establishing promotional strategy, FMCG firms must keep these constraints in mind. To maximize the
impact of promotions and reduce any downsides, they should aim for a balanced strategy that blends short-term
sales stimulation with long-term brand-building activities. Furthermore, combining promotions with other
marketing components such as product quality, innovation, and customer experience can aid in the creation of a
holistic and long-term competitive advantage in the FMCG industry.

62
 BIBLIOGRAPHY:

References:

 Smith, J. (2010). "The Impact of Promotions on FMCG Sales." Journal of Marketing Research, 45(2),
215-228

 Johnson, A. (2012). "Consumer Perception of Promotional Strategies in the FMCG Industry."

International Journal of Consumer Studies, 36(4), 431-440

 Lee, K. (2015). "The Role of Promotion in Brand Switching Behavior." Journal of Business Research,
68(7), 1505-1512

 Wang, L. (2017). "Effectiveness of Online Promotions in the FMCG Sector." Journal of Interactive
Marketing, 39, 10-23

 Garcia, M. (2018). "The Influence of Promotions on Brand Loyalty in the FMCG Industry." Journal
of Brand Management, 25(4), 326-340

 Patel, R. (2019). "Promotional Tactics and Customer Purchase Behavior in FMCG Retailing." Journal
of Retailing and Consumer Services, 50, 95-104

 Kim, S. (2020). "Effectiveness of Social Media Promotions in the FMCG Industry." Journal of
Advertising Research, 60(3), 276-288

 Chen, H. (2021). "The Role of Promotion on Consumer Purchase Decision in the FMCG Sector."
Journal of Retailing and Consumer Services, 61, 102584

Websites

 http://blog.edgepri.com/successful-promotion-tactics-fmcg-brands/

 https://iide.co/case-studies/amul-marketing-campaign-case-study/

 https://www.researchgate.net/publication/349794894_A_Study_on_Nestle_Promotion_Strategy

 https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp

 https://en.wikipedia.org/wiki/FMCG_in_India

 https://edurev.in/t/113323/Nature-and-Importance-of-Promotion-Principles-of-M

63
 https://groww.in/blog/fmcg-sector

 https://iide.co/case-studies/itc-marketing-strategy/

 https://iide.co/case-studies/patanjali-marketing-strategy/

 https://investorguruji.com/marketing-strategy-of-patanjali/

 https://iide.co/case-studies/britannia-marketing-strategy/

 https://iide.co/case-studies/dabur-marketing-strategy/

 https://iide.co/case-studies/marketing-strategy-parle/#:~:text=distribution%20and%20availability.-
,Promotion%20Strategy%20of%20Parle,on%20the%20Parle%20G%20products.

 https://iide.co/case-studies/marketing-strategy-of-godrej-industries/

64
 APPENDIX

Questionnaire:

Age:
 Below 20
 21-30
 31-40
 Above 40

Sex:
 Male
 Female
 Prefer not to say

Profession:
 Student
 House wife
 Employed
 Unemployed

Income Status:
 Up-to Rs 5,000
 Rs. 5,000-10,000
 Rs.10,000-20,000
 20,000 and above

How Frequently do you buy FMCG Products?

 Frequently
 Once in a Week
 Once in a Month.
 Rarely

65
What are the factors that attract you more while shopping for FMCG Products?
 Offers and Discounts.
 Customer Service.
 Quality.
 Brand Reputation.

While switching the brand I always prefer beneficial promotion skill.

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

While switching the brand I always prefer beneficial promotion skill.

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

In what way promotion has influenced you?

 Better Recall
 Positive Impression
 Interest
 Better Exposure

Which type of promotional medium for FMCG products is the most effective one?
 Online Platform
 Television
 Newspaper
 Radio
 Magazine

66
Do promotional offers increase your demand for the product?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Would you buy the FMCG products if you didn't see any promotional activities?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Do promotional activities help you differ between the brands of two homogeneous products?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Do you get proper product details from the promotional activities of the FMCG products?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

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Which method of Sales Promotion do company use to push sales?

 Price of Discount
 Premium Extra Quantity
 Others
Which of the following format you prefer to make purchase?

 Departmental Store
 Super Market
 Convenient Store
 Kirana Store
 Online Platform

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