PRESENTATION

ON

“SALES PROMOTION STRATEGY USED IN RETAIL

INDUSTRY”
(Comparative Analysis of Big-Bazaar & Reliance Fresh)

UNDER THE GUIDENCE OF

PROF.VIRENDRA PATIL

(Marketing)
(2011-2013)
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF
Master in Management Studies (MMS)

(UNIVERSITY OF MUMBAI)

SHIVAJIRAO .S JONDHALE INSTITUTE OF MANAGEMENT SCIENCE AND RESEARCH

ASANGAON – THANE
OBJECTIVES OF THE STUDY

• To study the different sales promotion strategies.

• To identifying the effect of sales promotion strategy in retail industry.

• To understand how a sales promotion strategy help attract new consumer.

• To know how a sales promotion strategy help to face the competition effectively.

• To find the most effective tool of sales promotion.

• To suggest for better management of sales promotion strategy in retail industry.

 SCOPE OF STUDY

• The important sales promotion strategy can provide vital intelligence about what the

retailer has to do, to increase customer footage to their outlet.

• This information critical is effective to understand effect of sales promotion strategy on

the buying behavior of the consumer.

• This study is helpful to those employees who already work in that industry and new

comers, management trainee & for future reference.

• Our study can be useful by other retail business in similar industries.

 INDIAN RETAIL INDUSTRY
• Size of the Industry
• By 2015 the Organized Retail Sector in India is expected to triple its size. The food
and grocery retail sector is expected to multiply five times in the same time frame.
The market size of Indian retail industry is about US $312 billion
• Geographical distribution
• In all the major Cities of the country
• Output per annum
• With growing market demand, the industry is expected to grow at a pace of 25-30%
annually.
• Percentage in world market
• Today India is the fifth largest in the world in terms of Retail Industry
• Market Capitalization
• In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of
the Indian retail market is estimated to be around Rs. 12, 00,000 Cr ($270 billion)
and the annual growth rate is 5.7%.
 MAJOR FOREIGN COMPANIES

• Wal-Mart Stores Inc has a cash-and-carry operation with Indian partner Bharti Enterprises,

the parent of leading mobile provider Bharti Airtel, and will add 12-15 new cash-and-carry

stores this year to its 17 existing stores.

• Tesco, Britain's largest retailer, has a tie-up with Trent's Star Bazaar hypermarket chain. Tesco

is also looking to enter the wholesale market through the tie-up.

• Germany's Metro AG operates 11 wholesale stores in India. The company plans to open 5

cash-and-carry stores every year.

• Carrefour has 2 cash-and-carry stores in India. The world's No 2 retailer has been seeking a

local partner to enter the hyper or supermarket sectors.

 LOCAL COMPANIES
• Pantaloon Retail, India's largest listed retailer and part of the Future Group, runs apparel

and electronics stores under its lifestyle brands Central, E-Zone, Hometown. Future also

operates the Big Bazaar hypermarket chain and supermarket brand Food Bazaar.

• Second-ranked Reliance Retail is part of Reliance Industries, India's largest listed group

headed by Mukesh Ambani, India's richest man.

• Shoppers Stop, part of the K Raheja Group which operates in real estate, has

• Trent, part of the sprawling Tata Group, operates 106 stores across formats and runs the

Westside range of apparel stores, under Star Bazaar.

 COMPANY PROFILE
BIG-BAZAAR
• Type Subsidiary of Pantaloon Group

• Founded 2001

• Headquarters Jogeshwari, Mumbai, India

• Industry Retail

• Products Department store, Grocery store

• Owner Kishore Biyani

• Parent Pantaloon Group

• Slogan Is se sasta aur accha kahin nahin

 RELIANCE FRESH
• Type Subsidiary of Reliance Industries Limited

• Headquarters Ghansoli , Mumbai - 400701, India

• Industry Retail

• Products Department store, Grocery etc

• Owner Mukesh D.Ambani

• Parent Reliance Industries

 INTRODUCTION TO TOPIC
• DEFINATION
• “Sales promotion includes incentive-offering and interest-creating activities which

are generally short-term marketing events other than advertising, personal selling,

publicity and direct marketing”. (A.H.R. Delons)

• “The purpose of sales promotion is to stimulate, motivate and influence the

purchase and other desired behavioral responses of the firm’s customers.”

(W.Q. Kelly)
 REASONS FOR RAPID GROWTH OF SALES PROMOTION

a) Increasing Competition

b) Sales Promotions Generally Create An Immediate Positive

Impact On Sales

c) Consumer Acceptance

d) Expectations Of Price Decrease

Cont….

e) Advertising Has Become More Expensive And Less Effective

f) Emphasis On Sales Volumes

g) Impulse Buying Is Increasing

h) Excess Stocks
 ADVANTAGES OF SALES PROMOTION

• Price discrimination

• Effect on consumer Behaviour (e.g With every 500g pack of Tang, you get a free

Tang glass. Offer valid only till stocks last. )

• Effect on trade Behaviour (e.g Retailer promotion: Buy Cadbury’s products worth

Rs.3000/- and get any 30 chocolates worth Rs.5 each free.

e.g Buy a box of Munch and get 1 Munch free )

 Techniques of sales promotions

• Store Demonstration

• Coupons

• Price-off-offer

• Samples

• Money Refund Offer

• Extra Product

• Gifts
 There are three types of sales promotion strategies

Push Strategy
Pull Strategy

A pull strategy is appropriate when

• The product demand as high.

• It is possible to differentiate the product on the basis of real or emotional features,

• Brand consumers show high degree of involvement in the product purchase,

• There is reasonably highly brand loyalty and consumers make brand choice decision
before they go to the store.
 PULL AND PUSH
• A ‘combination’ sales promotion strategy is just that; it is a combination of a

push and a pull strategy. It focuses both on the distributor as well as the

consumers, targeting both parties directly. It offers consumer incentives side

by side with dealer discounts.

COMPARITIVE ANALYSIS
 BIG BAZAAR RELIANCE FRESH

PRICE

Big Bazaar prices are very low Reliance Fresh prices are not low because
because its adopt the low price they give whatever is market price.
marketing strategy.
SERVICE

Big Bazaar services are not quite Reliance Fresh does not face these kind of
good as billing problem due to crowd. problems as its not overcrowded.

PRODUCT VARIETY

Big Bazaar has lots of variety in Reliance Fresh have less varieties as it is
every category of products. In Big smaller than Big Bazaar
Bazaar people can find almost
everything.
Cont….
CONVENIENCE

Big Bazaar has always worked in cheap Reliance Fresh also works in low cost location
location so that it is very convenient for but it is less popular in comparison of Big
the people to go to the Big Bazaar rather Bazaar.
than going outer of the city.
SHOPPING EXPERIENCE

In Big Bazaar people can buy the Reliance Fresh also provides the products
maximum variety of products of every under one roof but there is less varieties so that
category under one roof helping in customers don’t attract so they can not enjoy
attracting their shoppings.
customer and their family to shop toget
her and enjoy the shopping experience.
PRODUCT QUALITY

The product quality is good in Big Bazaar The product quality is also good in Reliance
because people can find cheap and best Fresh but the prices are slightly higher.
things in Big Bazaar.
 COMPARATIVE STUDY OF SALES PROMOTION STRATEGY
USED BY BIG-BAZAR AND RELIANCE FRESH
Reliance Fresh Big-Bazaar
Type Mode Mode

Special Days Saturday And Sunday Wednesday

Exchange offer Customer can take new in

exchange of old item

Premium and Gifts Premiums in the form of ‘Bill

Busters’ on the purchase of a fixed
amount every week
E.G. Pickle Set (set of 4) is free
with the purchase of Rs.999/-
Cont…..
Premium and Gifts Premiums in the form of ‘Bill Concentrate on bundling offer
Busters’ on the purchase of a
fixed amount every week
E.G. Pickle Set (set of 4) is
free with the purchase of
Rs.999/-
Sampling Eg .free samples of “Pick”
Distribution pickle was distributed which
was test merchandise
Rebates ,Discount On MRP of certain products On MRP of certain products

Offers BOGO [Buy One Get One] BOGO [Buy One Get One]
BXGY Buy X and Get Y BXGY Buy X and Get Y

POP Display Point of purchase display are Point of purchase display are
used to reach to display the used to reach to display the
benefit of product. benefit of product.
 Research Methodology
• The system of collecting data for research projects is known as research

methodology. The data may be collected for either theoretical or practical

research for example management research may be strategically

conceptualized along with operational planning methods and change

management.
• Data Collection

• There are two main sources for collecting data. These are :-

• 1. Primary Data.

The Primary data has been collected through questionnaire

Cont….
• 2. Secondary Data.
• Data has also been collected through internet
using various websites such as:-

- www.relianceretail.com

– http://www.pantaloon.com/bigbazaar.htm

– http://en.wikipedia.org/wiki/Big_Bazaar

– www. Future bazaar.com

– www. Pantaloon Retail (India) Limited.htm

DATA ANALYSIS AND
INTERPRETATION
 RETAILER ORIENTED
1) Is your Sales promotion Strategy is customer oriented?
Yes No 100

100% -

Is your sales promotion Yes No

strategy is customer orianted
 Interpretation
• As per our survey100% Retailers{both Big-Bazaar
(50sample) and Reliance Fresh (50sample)} said that
they use Sales promotion Strategy are customer
oriented.
2) Does customer really satisfied with your sales
promotion activity in your BIG-BAZAAR ?
YES NO

70% 30%
 80%

70%

60%

50%
Axis Title

40%

30%

20%

10%

0%
Yes No
Series1 70% 30%

Interpretation

As per our survey Retailer (50 SAMPLE SIZE) says that 70% of customer (35) are

satisfied with your sales promotion activity and remaining 30% (15)are not. So Retailers

has to Find some other new way to satisfy remaining 30% unsatisfied customer.
3) Does customer really satisfied with your sales promotion activity in
your RELIANCE FRESH ?

• YES -73%
• NO - 27% NO

YES

INTERPRETATION
As per our survey Retailer (50 SAMPLE SIZE) says that 73% of customer (37) are satisfied with
your sales promotion activity and remaining 27% (13) are not. So Retailers has to .Thus there is
only Variance of only 3% between this two retailer for Satisfaction and Dissatisfaction of
customer for sales promotion strategy.
4) Do customers look for various schemes in the product?(Both BIG
BAZAAR AND RELIANCE FRESH)(Sample size of 100)
Promotional Schemes Respondents
Coupons 3
Price Off 45
Scratch Cards 2
Lucky Draws 8
Bundling Offer 22
Extra Quantity 20
 45

40

35

30
Axis Title

25

20

15

10

0
Coupons Price Off Scratch Cards Lucky Draws Bundling Offer Extra Quantity
Respondents 3 45 2 8 22 20

Interpretation
From the above diagram we come to know that PRICE-OFF is most
preferable Sales promotion strategy With 45% Followed by Bundling and
Extra Quantity22 % &20% and the least preferable is Scratch Card &
Coupons which is 2% &3%.
5) Which sales promotion Strategy you use most? A) (BIG-BAZAAR)

1 2 3 4 5

Very Low Very High

Promotional Respondents
Schemes
Coupons
2
Price Off
4
Scratch Cards
1
Lucky Draws
2
Bundling Offer
5
Extra Quantity
5
 Extra Quantity 5

Bundling Offer 5

Lucky Draws 2

Scratch Cards 1

Price Off 4

Coupons 2

Interpretation

From the above Diagram we come to know that in Big Bazaar Retailer Most

concentrate on Extra quantity And Bundling To which they had given rating of

point 5 to each And least is scratch card to which they had given only 1 point.
 7) On which category customer attract more?
A) IN BIG-BIZAAR (50 SAMPLE)
Promotional Schemes Respondents
FMCG 15
Apparels 12
Stationary 1
luggage 2
Kids Product 10
Consumer Durable 10

Consumer Durable, 10 FMCG, 15

Kids Product, 10

luggage, 2 Apparels, 12

Stationary, 1
Cont..
• Interpretation

• We can see from the figer that the category to which customer get attract

more is FMCG Which is 15 CUSTOMER OUT OF EVERY 50 Followed

by Apparels which is 12 And the least attract segment is stationary which is

only 1 out of every 50 footage.

 8) On which category customer attract more?
IN Reliance Fresh (OUT OF 50 SAMPLE)
Promotion Responden
al ts
Schemes

Electronic, 9
Vegetable 10 Vegetable, 10

Kids 4
Product
Fruits 10
Kids Product, 4
Apparels, 7

FMCG 10

Apparels 7

Fruits, 10
Electronic 9 FMCG, 10
Cont..
• Interpretation

• We can see from the Digram that the category to which customer

get attract more is vegetable ,FMCG, FRUITS Which is 10

CUSTOMER EACH OUT OF EVERY 50 Followed by Electronic which is

9 And the least attract segment is kids product which is only 4 out

of every 50 footage.
Customer Oriented
1) How frequently do you visit to Big-Bazaar or Reliance Fresh?(Out of 50 Sample
Each)
How frequently do you Daily Once in Week Twice in a week Once in months
visit retail outlet
1 20 19 10
Big-Bazaar
2 18 22 8
Reliance Fresh

22

20
19
18

10

2
1

How frequently do you Daily Once in Week Twice in a week Once in months
visit retail outlet
 Cont..
• Interpretation

• From the above Diagram we come to know that 20 customer

go once in week in Big Bazaar while only 18 in Reliance out
of 50 in each, and 19 Twice in week in BIG- Bazaar 22 in
Reliance Fresh, and 10 once in month & 8 once in month in
Big Bazaar And Reliance Fresh.
 2)What do you like the most at Big-Bazaar?(out of 50 sample)

what do you like most Price up to Various option Display of

about Reliance/Big satisfaction Available to Merchandise
Bazaar choose
28 15 7

Display of Merchandise, 7

Various option Available to Price up to satisfaction, 28

choose, 15
Cont…
• Interpretation

• From the above diagram we can see that the customer is mostly attracted by

the Price Factor that is 28 customer out of 50 sample which is more then

50% followed by various option available that is 15 customer out of

50sample and only 7attracted by Display of merchandise

 3) What do you like the most at Reliance Fresh?(out of 50 sample)

what do you like most Price up to Various option Display of

about Reliance/Big Bazar satisfaction Available to Merchandise
choose
25 13 12

Display of Merchandise, 12

Price up to satisfaction, 25

Various option Available to

choose, 13
 Cont..
• Interpretation
• From the above fig. we come to know that 25 that is 50% of customer are
attract to price factor and only 13 out o f 50 sample are attract to option
available but in big bazaar it is 15 customer out of 50sample that is it is 2
more ,and customer are more attract to display in merchandise it is 12 in
Reliance Fresh where it was only 7 in Big-Bazaar which is 5 customer
more.
 4) Do you consider promotional schemes while visiting Big-Bazaar?(OUT OF 50
SAMPLE)
Particulars Respondent
Yes 36
No 14
40

35

30

25
Axis Title

20

15

10

0
Yes No
Respondent 36 14
Cont…
• Interpretation
• Thus from the above Table and Diagram we come to know that

36 Customer Look for the promotional schemes while visiting

a BIG-BAZAAR And 14 does not look for the any scheme.

 5) Do you consider promotional schemes while visiting RELIANCE
FRESH(OUT OF 50 SAMPLE)

Particulars Respondent
Yes 30
No 20

30

25

20
Axis Title

15

10

0
Yes No
Respondent 30 20
 Cont..
• Interpretation
• Thus from the above Table and Diagram we
come to know that 30 Customer Look for the
promotional schemes while visiting a
RELIANCE FRESH And 20 does not look for the
any scheme.
 6)How does you compare Reliance Fresh with Big -Bazaar?

How does you compare Price Availability of Customer

reliance Fresh with Big- Factor Product Service
Bazaar
Biz-Bazaar 25 18 7
23 17 10
Reliance Fresh

25
23

18
17

10

Price Factor Availability of Product Customer Service

Cont..

• Interpretation

• From the above diagram we come to know that customer compare both

retail outlet on Price basis by25 and 23in Big-Bazaar and Reliance Fresh

out of 50sample, 18 and 17are comparing both retail out let on the basis of

Availability of product. and only 7 and 10customer compare on the basis of

customer Service out of 50 customer each outlet

 7) Do you feel easy to find out the product in BIG-BAZAAR?
Do you feel easy Yes No
to find out the
48 2
product

48

Do you feel easy to find out the

product Yes

No

Interpretation
From the above table and figer we can see that 48 customer can easily find out the
product and only 2 were not.(OUT OF 50 SAMPLE)
 8) Do you feel easy to find out the product in RELIANCE FRESH?

Do you feel Yes No

easy to find out 49 1
the product

49
50

45

40

35

30

25

20

15

10
1
5

0
Do you feel easy to find out the Yes No
product

Interpretation
From the above table and figer we can see that 49 customer can easily find out the product
and only 1 were not.(OUT OF 50 SAMPLE)
 9). How do you feel about the customer service of Reliance Fresh?
How do you feel Average Good Excellent
Customer Service of 24 11 15
Reliance Fresh

24

15
11

How do you feel Customer Average Good Excellent

Service of Reliance Fresh

Interpretation
From the Above Diagram we come to know that 24 people has given average Rating to
Customer Service in Reliance , Followed by 15 Excellent and 11 as Good.
 10) How do you feel about the customer service of BIG BAZAAR? (out of 50 sample
size)
How do you feel Customer Service Average Good Excellent
of Reliance Fresh 30 15 5

30

25

20

30
15

10 15

5 5

0
How do you feel Customer Average Good Excellent
Service of Reliance Fresh

Interpretation
From the Above Diagram we come to know that 30 people has given average Rating to
Customer Service in Reliance , Followed by 15 Good and 5 as Excellent.
 Observation & Finding
• Temporary price reductions (price off) substantially increase
sales

• Sales Promotion leads to brand substitution with the product

category

• Sales Promotion leads to purchase acceleration/stockpiling

effects

• Sales Promotions affect sales in complementary and

competitive categories
 LIMITATION

• It is the time constrains.

• Due to other work load during the period it could be not be possible to explore

more area concern pertaining to study.

• The study was conducted to limited area on THANE Region only.

• Respondent may give biased answer due to some lack of information about other

brands.

• Findings of the study are based on the assumption that the respondents have given

correct information
 Conclusion
• We have noted that these kind of promotional tools are useful for short term
increase in sales and to induce first trial. These types of promotional
schemes should be consistent and changed from time to time depending
upon season and competitor’s schemes.

• With the Increasing number of supermarket, the branded packaged goods

work as silent sales person. So in such stores, sales promotion plays a
more effective role in stimulating consumers’ demands

• Thus proper use of sales promotion tools help to achieve the objective of
organization.
 Source
• BOOKS
A. C.R.Kothari, “Research Methodology methods & techniques”,New Age International(p)ltd.publishers,2nd
edition, page no 95 ,96 102.

B. Philip Kotler, “Marketing Management”, 13th edition, Pearson education Asia Publication,page no.355 to 356.

• Internet
A. http://www.ril.com/html/aboutus/about_brands.html

B. www.reliance fresh.com

C. www.Future bazaar.co

D. www.Big-bazaar. Com

E. Study_of_Consumer_Oriented_Sales_Promotion_in_FMCG.zip - ZIP archive, unpacked size 574,464 bytes

F. FutureBazaar.com, 2010. Future Bazaar India Ltd. [Online] Available at: http://bigbazaar.futurebazaar.com
[Accessed 24 March 2011].

G. Kumar, V., 2010. Promotional Strategy of Big Bazaar & Maintaining the image in Retailing. [Online] Available
at: http://www.skylinecollege.com/blog/dissertation/promotional-strategy-of-big-bazaar-maintaining-the-image-
in-retailing [Accessed 19 March 2011].