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INTRODUCTION

FMCG Concept and Definition:

The term FMCG (fast moving consumer goods), although popular and frequently

used does not have a standard definition and is generally used in India to refer to products of

everyday use. Conceptually, however, the term refers to relatively fast moving items that are

used directly by the consumer. Thus, a significant gap exists between the general use and the

conceptual meaning of the term FMCG.

Further, difficulties crop up when attempts to devise a definition for FMCG. The

problem arises because the concept has a retail orientation and distinguishes between

consumer products on the basis of how quickly they move at the retailer’s shelves. The moot

question therefore, is what industry turnaround threshold should be for the item to qualify as

an FMCG. Should the turnaround happen daily, weekly, or monthly.

One of the factors on which the turnaround depends is the purchase cycle. However,

the purchase cycle for the same product tend to vary across population segments. Many low-

income households are forced to buy certain products more frequently because of lack of

liquidity and storage space while relatively high-income households buy the same products

more infrequently. Similarly, the purchase cycle also tends to vary because of cultural

factors. Most Indians, typically, prefer fresh food articles and therefore to buy relatively

small quantities more frequently. This is in sharp contrast with what happens in most western

countries, where the practice of buying and socking foods for relatively longer period is more

prevalent. Thus, should the inventory turnaround threshold be universal, or should it allow

for income, cultural and behavioral nuances

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Characteristics of FMCG Products:

Individual items are of small value. But all FMCG products put together account for

a significant part of the consumer's budget.

The consumer keeps limited inventory of these products and prefers to purchase them

frequently, as and when required. Many of these products are perishable.

The consumer spends little time on the purchase decision. Rarely does he/she look

for technical specifications (in contrast to industrial goods). Brand loyalties or

recommendations of reliable retailer/dealer drive purchase decisions.

Trial of a new product i.e. brand switching is often induced by heavy advertisement,

recommendation of the retailer or neighbors/friends.

These products cater to necessities, comforts as well as luxuries. They meet the

demands of the entire cross section of population. Price and income elasticity of

demand varies across products and consumers.

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INTRODUCTION TO THE TOPIC

Introduction:

The importance of consumer sales promotion in the marketing mix of the fast moving

consumer goods (FMCG) category throughout the world has increased. Companies spend

considerable time in planning such activities. However, in order to enhance the effectiveness

of these activities, manufacturers should understand consumer and retailer interpretations of

their promotional activities. The study here pertains to consumer’s perceptions regarding

sales promotion. Some past researches have suggested that promotion itself has an effect on

the perceived value of the brand. This is because promotions provide utilitarian benefits such

as monetary savings, added value, increased quality and convenience as well as hedonic

benefits such as entertainment, exploration and self-expression.

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

Price

Place (Channel of Distribution)

Product

Promotion

These are the four basic pillar of marketing mix. Most of the marketing strategies are

built on the basis of these criteria.

Promotion is one of the important elements of marketing mix. There are so many elements of

promotion such as …

Advertising

Direct Marketing

Public Relations

Sales Promotion

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Traditionally, sales Promotions have been used by marketer to increase sales in the short

term. However, in the last few decades this communication tool has evolved and now is

considered from a strategic point of view. For this reason, it is necessary to realize new

studies in this area and study how consumers evaluate sales promotions.

Sales promotions have grown in both importance and frequency over the past few

decades. Although an accurate estimate for total sales promotions expenditures does not

exist, we can be sure that the trend is up.

Sales promotion serves three essential roles: It informs, persuades and reminds

prospective customers about a company and its products. Even the most useful product or

brand will be a failure if no one knows that it is available. As we know, channels of

distribution take more time in creating awareness because a product has to pass through

many hands between a producer and consumers.

Therefore, a producer has to inform channel members as well as ultimate consumers

about the attributes and availability of his products. The second purpose of promotion is

persuasion. The cut throat competition among different products puts tremendous pressure on

their manufacturers and they are compelled to undertake sales promotion activities. The third

purpose of promotion is reminding consumers about products availability and its potential to

satisfy their needs.

From these elements Sales Promotion is the element which is in the focus of this

project. Further Sales Promotion is quite broad term it includes

Consumer Oriented Sales Promotion

Trade Oriented Sales Promotion

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CONSUMER ORIENTED SALES PROMOTION

Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize

is given to motivate consumer to increase sales. Consumer Oriented Sales Promotion

includes Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Pack’s, Price-

off, Event marketing etc.

Definition:

For the purpose of this study, following definitions of sales promotion were kept in mind.

Kotler defines sales promotion as: “Sales promotion consists of a diverse collection of

incentive tools, mostly short-term designed to stimulate quicker and/or greater purchase of

particular products/services by consumers or the trade.”

Roger Strang has given a more simplistic definition i.e. “sales promotions are short-term

incentives to encourage purchase or sales of a product or service.”

Hence, any forms of incentives (price cut or value added nature) offered for short period

either to trade or consumers are considered as sales promotion activities.

Marketer’s uses consumer oriented sales promotion tools for the following reasons:

To increase short term sales

To induce trial

To reduce inventory

To establish a brand name

To make cross selling

To cope up with competition

To avoid advertising clutter

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Tools of Consumer Oriented Sales Promotion:

There are so many tools or technique available to the marketers for achieving objective of

sales promotion. These tools should be used considering all other factors affecting such as

cost, time, competitors, availability of goods etc. These tools are as under…

1. Coupons

2. Price-Off

3. Freebies

4. Scratch Cards

5. Lucky Draws

6. Bundling Offer

7. Extra Quantity

Let’s have look at each tool…

1. Coupons

Coupon is the oldest and most widely used way of sales promotion. Coupons have been used

since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a

promotion tool because data shows that market for packaged goods increased from 16 billion

in 1968 to 310 billion in 1994. To boost up the sales not only manufacturer but retailers

personally can also use. A coupon leads to price reductions so as to encourage price sensitive

customers. Non users can try a product which may leads to regular sales.

2. Price-off

A price-off is simply a reduction in the price of the product to increase sales and is

very often used when introduction a new product. A reduction in price always increases sales

but the use of this technique should be carefully considered in the current market situation.

Price-off is the most preferred sales promotion technique because consumers response

very positively to this scheme. Not only that but it also cause large increase in sales volume.

Price-off reductions are typically offered tight on the package through specially marked price

packs. E.g. Krack Jack offers 30% Price-off.

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3. Freebies

Freebies are a popular form of modern marketing and are some of the best things

about the internet. The definition of freebies is products or services given away for free at no

cost to the consumer. Well that’s the definition we came up with. I am a bargain freebie

shopper, pretty much going for any free product and informing everyone about it.

At different times, big and small companies often give away prizes and money which

is too good to be true. Often it’s in the pursuit of more customers or a larger fan base and it

often works.

4. Scratch Cards

A scratch card (also called a scratch off, scratch ticket, scratcher, scratchie, scratch-it,

scratch game, scratch-and-win or instant game) is a small token, usually made of cardboard,

where one or more areas contain concealed information: they are covered by a substance that

cannot be seen through, but can be scratched off.

5. Bundling Offers

Product bundling is a marketing strategy that involves offering several products for

sale as one combined product. This strategy is very common in the software business (for

example: bundle a word processor, a spreadsheet, and a database into a single office suite), in

the cable television industry (for example, basic cable in the United States generally offers

many channels at one price), and in the fast food industry in which multiple items are

combined into a complete meal. A bundle of products is sometimes referred to as a package

deal or a compilation or an anthology.

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Factors Influencing Consumer Oriented sales promotion:

Mainly four factors should be taken into account while determining the sales

promotion program.

> Target market

> Nature of product

> Stage of product life cycle

> Budget available for promotion

1. Target Market:

While doing sales promotion, marketer must know who their target market is;

otherwise there is no use of all effort because it leads to nowhere. A target market can be in

any of the stages of buying hierarchy i.e. awareness, knowledge, liking, preferences,

conviction and purchase. Each stage defines a possible goal of promotion.

2. Nature of the product:

There are various product attributes which influence sales promotional strategy.

When the unit price is low the manufacturer as well as the customer has low risk but he can

get the benefit of mass marketing. Therefore, mass marketing requires mass sales promotion

schemes. Sales promotion scheme differ for products like its durability, perishable goods etc.

3. Stage of product Life Cycle:

Sales promotion strategies are influenced by the life cycle of a product. When a new

product introduced, prospective buyers must be informed about its existence and its benefits

and middlemen must be convinced to stock it. Later, if a product becomes successful,

competition intensifies and more emphasis is placed on sales promotion to increase its sales.

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4. Budget Available for Promotion:

The funds available for promotion are the ultimate determinants of the promotional

program me. A business with ample funds can make more effective use of sales promotion

programme than a firm with limited financial resources. The budget for sales promotion can

be prepared by the following methods…

o Percentage of Sales

o Fixed funds available for sales promotion

o Following the competition, and

o Budgeting by objective.

Sales Promotion from the Consumers point of view

Willingness to buy on sales promotion offer

Sixty per cent of the sample did not show willingness to buy a brand due to

promotion while 30% showed willingness and 10% were not sure. This indicates that when

30% showed willingness and 10% consumers who were not sure, these groups might be lured

through innovative and lucrative sales promotion offer.

Ability to induce trial

Forty per cent of the respondents had said that sales promotion had the ability to

induce trial which reinforces the above inference.

Long-term impact

In order to understand ability of the promotions to increase long-term sales,

respondents were asked about continuity of purchase of a brand after the withdrawal of

promotion. Eighty per cent of the respondents indicated that they would not continue. But

20% said they would. Thus, it could be inferred that promotions in this category (low

involvement products) might encourage trial and brand switching but not long term loyalty.

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Preference of Schemes:

Price off was the most preferred type of scheme. Maximum customers’ ranked price-

offs as number one or two.

Perceived Quality:

Majority of respondents had a perception that the quality of the promoted brands

remained the same during promotion, while some of them felt that it was inferior to before. It

can be inferred that promotions were not leading to negative brand quality perceptions. It is

found that some customer strongly preferred to buy their regular brand and said that sales

promotion would not weaken their loyalty towards the brand.

Perceptions regarding underlying company motivations

On tapping perceptions’ regarding underlying company motivations for sales

promotion, “to increase sales” was ranked highest followed by “to attract switchers” and “to

sell excess stocks”. While providing value to customers” and

“To reinforce company image” were ranked lowest. This indicates that consumers believed

that companies were undertaking such activities only for their own benefit and not for the

benefit of consumers.

Findings from retailer and consumer perception studies, it is evident that there was a

matching of perceptions regarding nature of scheme (price offs as most preferred type of

scheme mentioned by consumers and retailers’ perceptions about consumer preferences).

Since retailers observe consumers in store behavior were frequently and directly, their

perceptions regarding providing consumer behavior are likely to be accurate. Such inputs

from the retailers would be useful to companies.

The retailers had the perception that those schemes which were announced through

mass media had better response. This was reinforced by the consumer survey which showed

that recall in case of heavily promoted schemes on TV was found to be very high.

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Retailers’ prediction of companies’ motivation for offering sales promotion were

matching with the consumer perception regarding the same. Thus both viewed that

companies were using sales promotion activities mainly to increase short term sales or

encourage switching or selling excess stock and not really to give value benefit or

enhance/reinforce brand/company image.

Trade Oriented Sales Promotion

Trade Oriented Sales Promotion aimed to motivate channel member of the company

and to encourage them to push company’s product. Trade Oriented Sales Promotion includes

dealer contest and incentives, trade allowances. Point-of-purchase displays, sales training

programs, trade shows, cooperative advertising, and other programs designed to motivate

distributors and retailers to carry a product and make an extra effort to push it to their

customers

Sales promotion from the retailer’s point of view:

Perceptions on Scheme Preference

It was found that retailer perceived price offs as a better form of sales promotion

activity. Price offs in their opinion had relatively a greater impact compared to any other

form of sales promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred

price offs the most, then bonus pack, premium, contests, in order of importance.

Perceptions about Buying Roles

Retailers viewed that the person who came to the shop (who may be a maid, son,

daughter, daughter-in-law and child) was the decider of a toilet soap brand and not the

Income provider (e.g. head of the family). It could be inferred that visibility of information

about the sales promotion activity at the point of purchase could result into the purchase of a

promoted brand.

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Perceptions about their role in decision-making

Retailer had relatively very low influence in affecting choice. It could be inferred that

visibility and awareness about the scheme were the critical success factors so that pull could

be created.

Perceptions about Response to Sales Promotion Offers

They believed that younger age-groups were more experimental in nature, amenable

to trying new brands, and sought/looked for or asked whether there were any) sales

promotion schemes running on any toilet soap at the time of purchase.

Perceptions about Communications of Sales Promotion Schemes

Retailers perceived that role of word of mouth and television advertising played an

important part in providing information inputs to consumers regarding sales promotion

activities.

Variations in Information Flow

Smaller (non-supermarket, small format store) retailers received relatively less

support compared to supermarkets in terms of servicing, margins, information about sales

promotion activities from the dealers. Many a times small retailers were only informed

verbally about sales promotion schemes by the dealer salesmen during the scheduled weekly

visits.

Dealer-Retailer Dynamics

At the time of sales promotion activities, dealers had tendency to push unwanted

stocks onto the smaller retailers. In fact these retailers preferred to stock variety of brands

and wanted payment for shelf and window display to increase traffic into their store.

However, supermarkets and big retailers were pampered and given special services and given

better margins and better allowances.

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Margins

It was found that in sales promotion schemes margins varied from 6 to15% depending

of the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc.

Mostly margins were linked to size of the volumes that were ordered.

Perceptions about terms and conditions

Retailers were not found to be happy with sales promotion schemes where their

margins were cut on the pretext of just fast movement of inventory of the brand being

promoted. Also if additional incentive was offered it was subject to minimum performance

requirement.

Nature of POP

Retailers indicated that most of the POP (Point of Purchase) materials were meant for

brand advertisement and not for giving information regarding the schemes. Thus it could be

inferred that company’s follow up was not adequate.

Servicing during duration of Scheme

In stock-out situation during the running of the sales promotion schemes, smaller

retailers had to wait for replenishment of stocks till the next scheduled weekly visit by the

dealer salesman but big retailers were serviced on telephonic request for replenishment of

stocks. This clearly indicated the disparity in treatment.

Problem of left-over

A leftover stock at the end of any scheme was required to be sold by the retailers

before they ordered fresh stocks. In case of bonus packs scheme, leftover stock was often

dismantled (cut open buy one get one free) and sold them individually as a regular soap. This

approach of the company leads to misappropriation which in turn could result in adverse

brand image.

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Gifts for Retailer motivation

Companies at times were rewarding retailers by giving free gifts like thermos flasks

or clocks if they sold more than certain quantity in a given period. Companies were making a

half-hearted effort to motivate retailers.

Perceptions about mass media announcements

Retailers viewed that whenever sales promotion scheme was announced on TV, it

created pull and they were more than willing to stock such brands. For example Medimix and

Dettol contest was not advertised on TV, hence there was very little awareness leading to

unsold stock till 6 months. While Lux Gold Star which was heavily promoted on T.V. is

recalled even today.

Post Promotion Behavior

Retailers observed that in most cases sales promotion scheme on a brand might

encourage a buyer to switch a brand temporarily but he would revert back to original brand

after promotion.

Handling Problems

Many a time’s retailers had to handle various sales promotion offers simultaneously

in a category and also across categories and there was no formal communication planning

either from the dealer or the company. Remembering each offer and handling was a problem

especially for a small retailer which was often an as one-man show.

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NEED FOR THE STUDY

In present situation not only in one industry but also all sectors are facing tough

competition.

It has become very difficult to grow, stabilize and excel in business performance.

It is required to influence the attitude and behavior of buyers. A lot of promotional activities are needed. The leading companies are using difference techniques for

promotion.

These are advertising, publicity, sales promotion, personal selling and packaging.

These are serving the difference objectives. Sales promotion is one of them and gives a great impact on customer buying behavior to increase sales in short term.

It contributes to neutralize the competition effect. To achieve the objective a strategy

is needed for effective application of sales promotion.

The contribution of sales promotion strategy is significant in present time to stay in

business in competitive market.

The importance of it attracted my attention to select this topic for research study

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SCOPE OF THE STUDY

This study is relating to promotion-mix elements out of total marketing efforts. It will cover

mainly sales promotion, methods for sales promotion, parties involved for sales promotion,

combination of promotion methods with sales promotion, sales promotion strategy and its

related concepts. This topic has studied in FMCG sector in world and Indian industry.

Leading companies have been selected on the basis of their market share for the research

study and their comparative study has been carried out.

The Scope includes:

To study the various sales promotional activities used in FMCG sector.

To study about the sales promotional strategies.

To study about how to create sales promotion.

How to use sales promotion.

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OBJECTIVES OF THE STUDY

To study consumer preferences with respect to sales promotion in FMCG sector.

To examine tradeoffs, relative importance of different attributes while responding to a

sales promotion offer.

To study the effect of sales promotions in FMCG sector especially in soaps and

detergent industry.

To study consumer behavior in purchase of soaps and detergent.

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RESEARCH METHODOLOGY

Data collection Method:

(a) Primary Data Collection Method:

Survey method was used for primary data collection.

We used questionnaire as an instrument for survey method.

Structured questionnaire.

Type of questionnaire: Open ended and closed ended.

(b) Secondary Data Collection method:

Reference books.

Internet.

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LIMITATIONS OF THE STUDY

We considered tanuku region only because of limited time duration.

Due to this, our sample size is only 100, which is not very large.

All the respondents could not fill their questionnaire on their own due to language

problem and also problem of time and lack of positive behavior.

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.

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INDUSTRIAL PROFILE

FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a

lot of thought, time and financial investment to purchase. The margin of profit on every

individual FMCG product is less. However the huge number of goods sold is what makes the

difference. Hence profit in FMCG goods always translates to number of goods sold. Fast

Moving Consumer Goods is a classification that refers to a wide range of frequently

purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products,

shaving products, detergents, and other non-durables such as glassware, bulbs, batteries,

paper products and plastic goods, such as buckets.

‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are

generally replaced less than once a year. The category may include pharmaceuticals,

consumer electronics and packaged food products and drinks, although these are often

categorized separately. The term Consumer Packaged Goods (CPG) is used interchangeably

with Fast Moving Consumer Goods (FMCG).Three of the largest and best known examples

of Fast Moving Consumer Goods companies are Nestlé, Unilever and Procter & Gamble.

Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG

brands are Coca-Cola, Kleenex, Pepsi and Believe.

The FMCG sector represents consumer goods required for daily or frequent use. The main

segments of this sector are personal care (oral care, hair care, soaps, cosmetics, toiletries),

household care (fabric wash and household cleaners), branded and packaged food, beverages

(health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products)

and tobacco.

The Indian FMCG sector is an important contributor to the country's GDP. It is the

fourth largest sector in the economy and is responsible for 5% of the total factory

employment in India. The industry also creates employment for 3 m people in downstream

activities, much of which is disbursed in small towns and rural India. This industry has

witnessed strong growth in the past decade. This has been due to liberalization, urbanization,

increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been

fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the

concerted efforts of personal care companies to attract Unlike the perception that the FMCG

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sector is a producer of luxury items targeted at the elite, in reality, the sector meets the

everyday needs of the masses. The lower-middle income group accounts for over 60% of the

sector's sales. Rural markets account for 56% of the total domestic FMCG demand.

Many of the global FMCG majors have been present in the country for many decades. But in

the last ten years, many of the smaller rung Indian FMCG companies have gained in scale.

As a result, the unorganized and regional players have witnessed erosion in market share.

History of FMCG in India

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force

in the FMCG sector well supported by relatively less competition and high entry barriers

(import duty was high). These companies were, therefore, able to charge a premium for their

products. In this context, the margins were also on the higher side. With the gradual opening

up of the economy over the last decade, FMCG companies have been forced to fight for a

market share. In the process, margins have been compromised, more so in the last six years

(FMCG sector witnessed decline in demand).

SOAP INDUSTRY:

The soap industry in India is at the high growth rate and many new entrants are planning to

launch their product in this category. The overall soap industry is worth at 60000 crores.

Shine is a multinational company. It is a new entrant in the market and targets at unisex

genders. I segmented Shine's market according to geographical locations. It further

differentiates these segments into Socio Economic Cluster (SEC) which takes into account

the criteria of education and profession which ultimately measures the financial ability of

consumers. The cluster is divided into five parts starting from A to E. Shine targets the urban

and sub urban upper middle class and middle class segment of the population, who falls

under A to C of SEC.

Tactical marketing tools, 4P‘s, are extensively used by the company to market Shine. Though

Shine is produced in India, Unilever India maintains the same standard all around the globe.

The product is available in six different fragrances under three different sizes. Since the

demand for beauty soap market is to a great extent oligopolistic, variations in price lead to

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price war which can eventually break down the company‘s market share. Thus Unilever

cannot provide a better price than its competitors. But the price is affordable by most of the

people. Shine will outsource its distribution channel to third party distributors which allow

them to distribute Shine in massive bulks amounting to around ten million pieces. It

undertakes the largest promotional activities in the beauty soap industry.

The beauty soap industry has a few major producers of which Unilever holds market share of

slightly less than 50%. Other competing brands like Tibet, Aromatic and Keya have started to

have a strong consumer base, but Shine's product features distribution and promotional

activities will create high brand loyalty for which it will be the market leader soon after

developing its IMC plan. Shine, with the aid of its heavy promotional activities, has been

able to penetrate the market. But the other producers in the industry are posing a threat

towards Shine‘s market share as they have moved towards the rural masses of the population.

Therefore, I have undertaken many further steps such as moving towards the rural and/or

poorer segment; attract children (by making a special product for kids) and other innovative

promotional activities to retain its command in the industry.

Industry analysis

The toilet soaps market is estimated at 530,000 tpa including small imports. The market is

littered over with several, leading national and global brands and a large number of small

brands, which have limited markets. The popular and premium brands include Lifebuoy,

Lux, Cinthol, Liril, Rexona, and Nirma.

Toilet soaps, despite their divergent brands, are not well differentiated by the consumers. It

is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume

media

campaign, which sustain them. A consequence is that the market is fragmented. It is obvious

that this must lead to a highly competitive market. Toilet soap, once only an urban

phenomenon, has now penetrated practically all areas including remote rural areas. The

incremental demand flows from population increase and rise in usage norm impacted as it is

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by a greater concern for hygiene. Increased sales revenues would also expand from up

gradation of quality or per unit value.

As the market is constituted now, it can be divided into four price segments: premium,

popular, discount and economy soaps. Premium soaps are estimated to have a market volume

of about 80,000 tones. This translates into a share of about 14 to 15%.

Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for

around 30% of the soap market, by value. Currently, the soap industry is divided into three

segments namely Premium, Popular and Economy/ Sub popular.

To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer

Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game

plans. And the accent is clearly on innovation to gain mind share as well as market share in

this overcrowded category.

Major Players

Hindustan Unilever Ltd.

With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and

PEARS — has 54.3% share of the overall soap market. HUL is India's largest Fast Moving

Consumer Goods Company; its journey began 75 years ago, in 1933, when the company was

first incorporated. The company stirring the lives of two out of three Indians with over 20

distinct categories in Home & Personal Care Products and Foods & Beverages and also one

of the country's largest exporters. HUL's brands includes Lifebuoy, Lux, Surf Excel, Rin,

Wheel, Fair & Lovely, Pond's, Sun silk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,

Kissan, Knorr-Annapurna, Kwality Wall's - are household names across the country. They

are manufactured in over 40 factories across India. In the Rs7, 000 crore by sales soap

market, HUL‘s market share has dropped to 54.3% in March 2008 from 55.9% in March

2006.

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Godrej consumer products

GCPL, India‘s second largest soap maker after Hindustan Unilever Ltd, has nearly 9.2%

market share. With 11% market share in value terms, it is the second largest soap maker after

Hindustan Unilever. Godrej Consumer Products (GCPL) is a major player in the Indian

FMCG market with leadership in personal, hair, household and fabric care segments. The

company is one among the largest marketer of toilet soaps in the country with leading brands

such as CINTHOL, FAIRGLOW, NIKHAR, & ALLCARE. Fair glow brand, India's first

Fairness soap, has created marketing history as one of the most successful innovations. It is

also the preferred supplier for contract manufacturing of toilet soaps, some of which are the

most well-known brands in the country.

Wipro

In the Indian market, Wipro is a leader in providing IT solutions and services for the

corporate segment in India. Wipro also has a profitable presence in niche market segments of

infrastructure engineering, and consumer products & lighting.Wipro has made a large

acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry

can be seen through their brands such as SANTOOR and CHANDRIKA. With industry

leading organic growth rates and the acquisition, Consumer care business has reached a

Revenue run rate in excess of $100 million per quarter.

Procter & Gamble India

Procter & Gamble India (PGHHCL) was incorporated in 1964 after Procter & Gamble, US,

acquired Richardson Vicks, US. Formerly known as Richardson Hindustan (the Indian

Subsidiary), it was later named as P&G. It changed its name again in 1998 to Procter &

Gamble Hygiene and Health Care in order to reflect the nature and character of the business

of the company. During 2004-05 the company has increased its installed capacity of Soaps &

Detergents and Toilet Preparations etc. by 36500 Tones and 263 Tones respectively. With

this expansion the total installed capacity of Soaps & Detergents and Toilet Preparations etc.

has increased to 108500 Tones and 5875 Tones respectively.

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Nirma

Incorporated as a private limited company, Nirma was converted into a deemed public

company and then to a public limited one in Nov.'93. Nirma has a leadership presence in

Detergents, Soaps and Personal Care Products. To have a greater control on the quality and

price of its raw materials, Nirma undertook backward integration into manufacture of

Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates

(AOS), Fatty Acid, Glycerin and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma

Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents were amalgamated

with the company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned

subsidiary on 22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within

India. Nirma enjoys a share of 6.74% in soaps.

ITC

ITC, the country‘s largest cigarette maker, entered the segment last year and has made a

strong headway in a short time. According to AC Nielsen, its share has grown to 1.75% in

just five months despite the fact that many of its brands such as Superia, Fiama Di Wills and

Vivel are currently sold in only six states.

Competitor analysis

Santoor:

Santoor is the flagship brand in the Wipro Consumer Care & Lighting stable and the 2nd

largest brand of soap in India in the popular segment of the category. The brand enjoys two

decades of trust since its launch in 1986 and has grown to be counted amongst the top brands

in the Country in an intensively competitive market. Millions of women across the country

have discovered the secret of younger looking skin with Santoor. It is a truly unique soap that

combines the goodness of natural ingredients - Sandal, Turmeric and natural Skin Softeners.

Sandal provides a cooling and soothing effect that softens skin, while turmeric controls

formation of skin darkening pigments like melanin, to give skin a radiant glow. Natural Skin

- 26 -

Softeners make skin soft and supple. The end result, skin that is so healthy and beautiful, it

lies about your actual age.

Amongst the first brands in the Country to launch an offering with the twin ingredient

benefits of Sandal and Turmeric, Santoor has over the years moved from a purely natural

ingredient based appeal, to one of the most preferred beauty soaps of the day. Today, Santoor

is one of the fastest growing soap brands in India. Santoor is available in three variants -

Santoor (Sandal & Turmeric), Santoor White (Sandal & Almond milk) and Santoor Chandan

which is premium soap manufactured with extracts of Sandalwood oil - a favorite of

discerning consumers.

Cinthol

Cinthol the popular and much-loved brand of Godrej Consumer Products Limited (GCPL)

have been a favorite of people for many years. All different soaps in its range are having feel-

fresh fragrance and high TFM index. Control’s range covers an economic Lime-fresh, the

medium doe-soaps (spice, lime, cologne and the new ‘sport‘) and a slightly expensive

―Cinthol-Original. For decades, Cinthol-Original is one of the best soaps made in India. It

had a simple red-cover which attracts none! But was still able to sustain itself in the market.

Godrej has now launched the improved Cinthol range. Cinthol now offers a doe-range of

soaps, talc and doe-sprays in three exciting fragrances - Classic, Cologne and Sport in a

trendy new packaging. It also offers Cinthol fresh soap and Cinthol Regular soap with new

exciting packaging. The eye-catching and vibrant packaging symbolizes a sense of

adventure, zest and action. The new Cinthol range brings 24-Hour Confidence through

Active Doe Formula, which controls body odor, Powerful Dry Shield that absorbs sweat,

Ultra Scent Technology for long lasting fragrance and Freshness that revitalizes you

24x7.The new range will be available across the country at modern retail and other outlets

and will be supported by high-impact advertising on television, print, out-door, on-line and

radio.

- 27 -

Vivel and Superia

The Vivel Di Wills range is available in two variants. Its unique carton pack has been

developed by ITC's design team to provide a novel consumer experience. Vivel Di Wills

Sheer Radiance is enriched with Olive Oil, to provide skin luster to make it radiant. Vivel Di

Wills Sheer Crème is enriched with Shea Butter, to moisturize skin to make it soft and

supple.

The Vivel range of soaps is available in four variants:-

1) Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in providing

youthful glow to the skin.

2) Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel Vivel

beautifully soft.

3) Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in

providing clear skin.

IMC PLANNING

Mission

Shine's mission is to add Vitality to life. They meet everyday needs for nutrition; hygiene and

personal care with brands that help people feel good, look good and get more out of life.

Their deep roots in local cultures and markets around the world give them strong relationship

with consumers and are the foundation for their future growth. A key requirement is building

in the quality expectations of their consumers into their products.

- 28 -

Product profile

Shine soap is introduced as bathroom soap. Shine in step with the changing trends and

evolving beauty needs of the consumers, offers an exciting range of soaps and Body Washes

with unique elements to make bathing time more pleasurable. One can choose from a range

of skincare benefits like firming, fairness and moisturizing.

Shine stands for the promise of beauty and glamour as one of India's most trusted personal

care brands. Shine offers a range of soaps in different colors and world class fragrances.

Shine is a beauty soap of film stars. Shine recognized the need for a compelling message

about beauty that would resonate with women of today.

Product Category, Market Segmentation, Target Marketing and

Positioning

This section describes the category of the selected product. The chapter is organized into four

sections. Section 1 states under which category the product falls. Section 2 describes how

Shine differentiates the population and categorizes them into different segments. Section 3

analyzes which segment the company targets and why they target that specific segment.

Finally section 4 describes the process through which the company tries to capture a place in

the buyers mind i.e. the product positioning method.

Product Category

Shine falls under the category of toiletry product as a beauty soap.

Market Segmentation

Shine segments their market according to geographical areas. The population of the country

is segmented into three parts which are urban, sub urban and rural area consumers. Though

Shine is the highest selling beauty soap in Bangladesh, it does not go for traditional mass

marketing. Moreover as a beauty soap LUX does not even segment its market according to

gender.

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Target Market

Shine is not a highly expensive but an affordable product. That is why the company targets

urban and sub urban upper middle and middle class people who are the second highest

population of segment of the country. From the segmentation of customer according to SEC

they target category A, B and C, because they are assumed to be financially well-off and can

afford to buy Shine.

Product Positioning

Shine obtained a good position in the buyers ‘mind through better product attributes, price

and quality, offering the product in a different way than the competitors do. The company

offers improved quality of products in the industry at an affordable price with high branding,

which ultimately helps to position the product in the buyers ‘mind as the best quality beauty

soap.

The market share of the company in the beauty soap industry is somewhere around

43%.Since in the beauty soap industry all products are of same price Unilever cannot provide

its consumers with better price but it is in a great position in reference with its packaging,

fragrances and product designing.

Tactical Marketing Tools

This chapter describes the Way Company will use the tactical marketing tools for marketing

Shine in India. The chapter comprises of four sections. This section includes a table that

shows the location of the company‘s warehouses all around the country. Finally a section

discusses the promotional activities that the company undertakes for Shine.

- 30 -

Product:

Shine is an internationally renowned beauty soap brand. Though manufactured in India for

the local market by Unilever India ltd, as an international brand, it maintains an international

quality for the product. Formula given by Research and Development departments in foreign

countries, Shine is produced in India from imported raw materials like sodium soap, glycerol

and different extracts according to flavors, coming from Unilever plants situated abroad.

Shine is offered in India in six different flavors which are: Shine Energizing Honey, Shine

Golden Glow, Shine Nature Pure, Shine Orchid Touch, Shine Almond Delight and Shine

Aqua Sparkle. Taking into account the convenience of its customers, the company

manufactures all variants of Shine in three different sizes, 40gm, 80gm and 120gm.

Price:

Though Shine gives its customers a lot in terms of the product itself, it cannot provide a

better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a

product with a vulnerable demand in India. A change in price has a high risk of creating price

war among the rivals which will eventually cause a loss of profit. Its prices are almost equal

to its competitor. Shine price with its major competitor. Company carries out research on

competitors ‘price and brand loyalty when it feels extreme necessity of changing price. The

brand loyalty test is an exploratory research which is known as Brand Health Check-

Up (BHCU).

Place:

Shine has a huge distribution channel all over the country as its sales reach more than 10

million pieces a year. The company has six huge warehouses, one in each division of India,

where the product goes after they are manufactured at Uttaranchal factory.

The company will not use its own fleet of transport for distributing its product. However, it

will outsource its distribution process to various third party distributors. These distributors

will then supply the product all over India to a huge number of retailers. Even though Shine

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targets the urban and sub urban middle and upper middle class people they are distributing

their products all over India because of a recent increase in demand of its product to all

segments of the population.

Promotion:

Shine will undertake a huge promotional activity to promote itself. I will spend almost 20%

to 25% of its Net Proceeds from Sales (NPC) of Shine for promotional activities.

It will include certain annual promotional campaigns like Shine Channel i Superstar and

Shine Channel i Annual Cinema Awards, which will made the product a part of the glamour

world. Since our Indian audiences are emotionally attached to its root culture and gets easily

attached or relate themselves to celebrities, so I will promote Shine by endorsing famous

Bollywood celebrities like Hema Malini, Priyanka Chopra, Kareena Kapoor, Aishwarya Rai

Bachan etc. I will not promote Shine in India for the beauty conscious females only, but it

will also be promoted as the brand for males by including world famous male celebrity

Shahrukh Khan for the advertising campaign.

Shine will spend a huge amount of money for promotion through TV commercials,

newspaper advertisements and billboards. Moreover I will also undertake small promotional

campaigns at different colleges, universities and recreational parks with winners of its Zonal

Beauty Contests.

Integrated marketing communication

A) Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a collection of

incentive tools, mostly short term, designed to stimulate quicker or greater purchase of

particular products or services by consumers or the trade. Whereas advertising offers a reason

to buy, sales promotion offers an incentive to buy.

- 32 -

Prominent Promotional schemes that will be used by Shine

1. Sales Promotion to Consumers:

Consumers are extremely complex human beings, motivated by several factors. Hence it is

important to understand a consumer's motivation given a certain product and product

category. Consumer promotions are those that are directed to the consumer. The objective of

consumer promotions is to offer the consumer some added benefit to entice him to buy the

product. There are several possible tools that I will use to promote Shine:

Sampling: As my product is new to the market, so this promotional tool is generally used

when one is introducing a product for the first time. In this case, a small quantity of the

product will be given as a sample. These samples will be distributed either at the residence of

the consumer or even at the retail outlet provided by a condition.

Quantity Deals: Here the company will offer more quantity of the same product for the

same price or a marginally increased price. For example, most of the FMCG companies

bundle 3 or 4 soaps in a pack priced at the cost of 3 soaps. The purpose is to induce the

consumer to buy more and more products at less cost. This will benefit both the customers

and company. Customers can have 4 soaps at the cost of 3 whereas company can slightly

decrease their profit but after selling their products at large quantity their profit will rise

(Economies of Sales).

In-Product gift: In this case the gift item is attached to the product from outside. E.g.:

once Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer

from Delhi. According to the promotional offer that Lux unveiled in October 2000, a

consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win an

additional 30 gm gold. The first 10 callers every week got a 30 gm gold each. This offer

helped lux to increase its sales rapidly. I will also use this type of tool to promote my product

and hence increase the sales of SHINE.

- 33 -

2. Sales promotion to Traders:

Trade promotions are those that a company runs to elicit a better and quicker response from

the trade. Some of the trade promotional tools that I will be using are:

On-Consignment Sales: This tool is normally used by companies that are new entrants

and are not known in the marketplace. Here companies encourage traders to stock their

products on an “on-consignment” basis and pay only when the product moves off the

shelves. My company will use this tool to encourage the new retailers to sell my product and

pay after the product moves off the shelves.

Dealer gifts: Personal motivation is very necessary in order to boost the sales because if

the retailer is happy that the company cares for him, so the retailer will work hard to sell the

product of the company by telling the customers that it is the best product that will benefit

them. I will use this tool by giving dealers/retailers gifts on the occasions of EID, Diwali,

New Year so that they get more loyal to our product and maintain good relations with them.

Point-of-sale Material: Traders will be given attractive point-of-sale material for

displaying Shine. We will provide shelf stickers, streamers, attractive stands to hold the soap

etc. Play the supercharged version of the hit puzzle game, Bejeweled. Create rows of 3 or

more identical stones and you could win a trip for two to a five-star Resort in Goa.

B) Advertisements:

There are number of sources available for passing the product message. These are as follows:

1) Television

2) Outdoor (Billboards)

3) Magazines

4) Newspapers

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5) Internet

Advertising Campaign:

The advertisements will run in a campaign where a complete program of advertisements will

be aired by parts from time to time. The first base of the advertising campaign will be

advertising strategy, where a plan will be devised to maintain a viable fit between my

organization's objectives and resources and changing market opportunities. Advertising

strategy is the ‘message' that a company gives to solve a communication-related problem.

My company's advertising strategy is to create awareness and brand equity of the shine. The

next step is to create a ‘Big idea' where an advertiser selects an idea for communicating the

strategic message in a creative way. It is a link between strategy and creative execution. It

may be also called a central theme. The central theme of my advertising campaign will be

how men are magnetically attracted towards women using Shine soap. Once the big idea is

finalized, then it follows its creative execution. Creative execution deals with the physical

form of an advertisement- story, script, copy, art, music, overall production. The creative

execution of Shine's ad will include creative tagline, elements of wit and humor, role of

glamorous actress and models using shine soap while bathing and then the media will be

asking them what is their beauty's secret and like that.

Choice of Strategic Approaches:

Unique Selling Proposition: A brand may have a true and distinctive competitive

advantage called the Unique Selling Proposition (USP). The USP is a distinctive advantage

that is both valuable to the brand's customers and is unexploited by its competitors. The USP

of Shine will be a guaranteed effect of fairness of the skin, and its ingredients that are made

of no chemicals.

- 35 -

C) Creative Execution on Radio:

The most creative advertisement can be made on Radio, if its script is written creatively. The

power of radio in country like India is much more than TV. We always notice that during

cricket matches, a number of companies promote their products on radio, like sound of the

whistle which a person might think of Hawkins Pressure Cooker. It is because Hawkins

advertisement on radio has been created well that is why people still remember the sound of

Hawkins. Another example is of jingle of titan, which can be easily recalled by a person who

has heard it on radio. In the same way, I will promote my product on radio by writing a

creative script and then executing it on radio with the help of sounds, voices and jingles.

D) Communication through Internet:

Internet is the most advanced medium that a company can use effectively to boost its sales

and create a distinctive image or brand equity. Many companies have started to give online

advertisements. It can be on e-mails (yahoo, Gmail etc.), networking sites (orkut, Facebook,

hi5 etc.) or may be any form possible on the Internet.

The message in these types of ads will be same as the company has made to produce an

integrated marketing communication. The advertisement of Shine on Internet will take these

forms:

a) Translucent Float banner advertisements:

These types of advertisement are displayed mostly on the opening up of e-mail ids. Like in

the above picture, Shine will also use translucent float banner advertisement because this

type of advertisement will have a good impact on the audience that they remember the

product when they use their e-mails. In this advertisement, a screen would appear before a

person prompting him/her to fill a form of feedback or to enroll in an online contest.

b) Virals: Like traditional viral marketing, Internet Virals also rely on spreading the buzz

online. Viral advertising refers to people passing on interesting and entertaining promotional

content, generally sponsored by a brand to create awareness, build equity or get publicity.

- 36 -

Shine will use the viral advertisement by using averages ( using video games to advertise a

product), flash games, messenger messages ( on yahoo).

- 37 -

COMPANY PROFILE

About The Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of

India's leading business houses with multiple businesses spanning across the consumption

space. While retail forms the core business activity of Future Group, group subsidiaries are

present in consumer finance, capital, insurance, leisure and entertainment, brand

development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million

square feet of retail space in over 71 cities and towns and 65 rural locations across India. The

group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home

Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the

Year - 2007, by the US-based National Retail Federation, the largest retail trade association

and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in

Barcelona.

Future Group believes in developing strong insights on Indian consumers and

building businesses based on Indian ideas, as espoused in the group's core value of

'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

About FutureBazaar.com

FutureBazaar.com is the e-commerce arm of the Future Group. FutureBazaar

provides an integrated shopping site where consumers are able to buy products from our

flagship stores including eZone, Pantaloons and Big Bazaar online and get home delivery of

products.

FutureBazaar delivers across more than 1500 cities and towns in India covering

16,000 pin codes. FutureBazaar carries genuine products and offers manufacturer's warranty

(as opposed to Seller's warranty) which most other sites offer. FutureBazaar offers products

- 38 -

where the complete supply chain is managed by Future Group entities unlike other sites that

are marketplaces.

By the virtue of being a part of Future Group, FutureBazaar is able to offer a wide range of

genuine products at very competitive prices, confidence of buying from a trusted source and

the convenience of returning in our physical stores.

About Big Bazaar

Big Bazaar is not just another hypermarket. It caters to every need of your family.

Where Big Bazaar scores over other stores is its value for money proposition for the Indian

customers.

At Big Bazaar, you will definitely get the best products at the best prices - that's what

we guarantee. With the ever increasing array of private labels, it has opened the doors into

the world of fashion and general merchandise including home furnishings, utensils, crockery,

cutlery, sports goods and much more at prices that will surprise you. And this is just the

beginning. Big Bazaar plans to add much more to complete your shopping experience.

About Pantaloons

Pantaloons are among India's largest chains of fashion stores. Pantaloons Fresh

Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that

are in sync with the hopes and aspirations of discerning young and 'young-at-heart'

consumers.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how

fashion is followed internationally. This 'fresh fashion' destination allows customers to shop

for the latest in fashion apparel and accessories throughout the year in an attractive and

visually stimulating ambience.

Pantaloons Fresh Fashion stores have presence with stores not just in Metros but also

in smaller towns. All stores have a wide variety of categories like casual wear, ethnic wear,

formalwear, party wear and sportswear for Men, Women and Kids.

- 39 -

About eZone

eZone, with the catch phrase 'experience electronics' is an experience led lifestyle

format that brings together the best in national and international consumer electronic and

durables brands in a family-centric environment.

Typically in excess of 12,000 square feet in size, an eZone store truly enables you to

experience electronics, through three dedicated zones - Liberation Zone, Experience Zone

and Home Zone. The Liberation Zone offers personal products like computers, laptops,

handy cams, MP3 players and mobile phones. While entertainment products such as Plasma /

LCD, Flat TV's, Home Theatre systems, DVD players, and Stereo systems are displayed in

the Experience Zone. And in the Home Zone segment, one gets to pick electronic goods of

his or her choice including Refrigerators, Air Conditioners, washing machines and

Microwave ovens among other kitchen related appliances.

eZone is not only about showcasing electronics products and gadgets, but providing

you with a complete shopping experience through touch & feel, allowing you to pick and

choose from an array of best of brands under one roof. eZones are primarily stand alone

concepts, but are also present within the Central malls.

The Big Bazaar is a useful place to find cheap household items, clothes, and food all

under one roof. However, the chaos and crowds often make shopping there a challenge.

Pros

Low prices.

Great sales and promotions.

Wide range of products under the one roof.

Many stores.

Cons

Overcrowded.

Checkout can be extremely slow.

- 40 -

Complaints of poor customer service and overcharging.

Quality is variable.

Description

Outlets in around 60 locations across India.

Sells furniture, electronics, clothes, cookware, cosmetics, household items, food,

gifts, jewelry, and books.

Also has special Food Bazaar outlets.

Most stores open from 10 a.m. until 9.30-10 p.m. daily.

Guide Review - Review of Big Bazaar India

There was a time not so long ago that large department stores were a completely

foreign concept in India -- but not anymore. The Big Bazaar is one such department store to

have set up shop across the country. Since its first outlet opened in Kolkata in late 2001, the

Big Bazaar has spread to towns and cities at an alarming rate.

These multi-level shopping meccas stock everything from food to fridges, and

cookware to clothes. However, the Big Bazaar isn't your ordinary department store. It's been

especially designed to appeal to the Indian consumer. You may be thinking, what does that

mean? In short, organized chaos.

With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere cheaper or better

than this!"), the Big Bazaar targets itself directly at the average Indian's love of following the

crowd and scrambling for a good discount.

You won't find neatly ordered aisles at the Big Bazaar. Instead, stores are laid out to

replicate a market environment, with items all thrown in together. Promotions such as "Sabse

Saste Teen Din" (Cheapest Three Days) and "Purana Do, Naya Lo" (Give Old, Take New)

result in shoppers flooding the stores, to the point that some stores have become so

overcrowded they've had to close.

- 41 -

If you visit the Big Bazaar in the daytime during the week, it is possible to have a

deceptively pleasant and hassle free shopping experience.

However, don't make the mistake of going there during a sale, on holidays, evenings,

or on Sunday. When I did this, I had to wait for almost an hour just to be served at the

checkout. Forget about getting the all items I wanted, I was happy to get out of there in one

piece!

I've also found that the full price is all too often charged on sale items, so do check

your receipt to make sure that discounts have been properly recorded.

- 42 -

THEORITICAL FRAME WORK

SALES PROMOTION STRATEGY

Sales are the lifeblood of a business, without sales there would be no business in the

first place; therefore it is very important that if a business wants to succeed, it should have a

sales promotion strategy in mind. The primary objective of a sales promotion is to improve a

company’s sales by predicting and modifying your target customer’s purchasing behavior

and patterns.

Sales promotion is very important as it not only helps to boost sales but it also helps a

business to draw new customers while at the same time retaining older ones. There are a

variety of sales promotional strategies that a business can use to increase their sales, however

it is important that we first understand what a sales promotion strategy actually is and why it

is so important.

A sales promotion strategy is an activity that is designed to help boost the sales of a

product or service. This can be done through an advertising campaign, public relation

activities, a free sampling campaign, a free gift campaign, a trading stamps campaign,

through demonstrations and exhibitions, through prize giving competitions, through

temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters,

and emails.

The importance of a sales promotion strategy cannot be underestimated. This is

because a sales promotion strategy is important to a business boosting its sales.

When developing a sales promotion strategy for your business, it is important that

you keep the following points in mind.

Consumer attitudes and buying patterns

Your brand strategy

Your competitive strategy

Your advertising strategy

- 43 -

Other external factors that can influence products availability and pricing.

There are three types of sales promotion strategies:

A push strategy

A pull strategy or

A combination of the two

Push Strategy:

A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers to sell

your products and services to the consumer by offering various kinds of promotions and

personal selling efforts. What happens here is that a company promotes their product/services

to a reseller who in turn promotes it to another reseller or to the consumer. The basic

objective of this strategy is to persuade retailers, wholesalers and distributors to carry your

brand, give it shelf space, promote it by advertising, and ultimately ‘push’ it forward to the

consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials,

contests, discounts, and specialty advertising items.

Pull Strategy:

A ‘pull’ sales promotion strategy focuses more on the consumer instead of the reseller

or distributor. This strategy involves getting the consumer to ‘pull’ or purchase the

product/services directly from the company itself. This strategy targets its marketing efforts

directly on the consumers with the hope that it will stimulate interest and demand for the

product. This pull strategy is often used when distributors are reluctant to carry or distribute a

product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or

rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase

displays.

- 44 -

Combination of Two Strategies:

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.

The Short term Impact of Promotions

Let’s have look at the impact of promotions on purchase behavior during the promotional

period i.e. the week or the month when the promotion was being run. The majority of the

empirical studies have focused on the impact of promotions in the short term. The key

findings across the studies are discussed below.

Temporary price reductions (price off) substantially increase sales:

There is ample evidence to show that promotions lead to dramatic increases in sales of

promoted brand in the short term. Studies have consistently reported high sales effects and

high price elasticity of brands which are on promotion. The economic rationale for the

promotional response is clear – temporary price cuts increase the value of the product to the

consumer and it leads to immediate action. Sales boost can be quantified on the basis of

brand switching, primary demand expansion and consumer stockpiling during a promotion.

Sales Promotion leads to brand substitution with the product category:

The sales ‘bump’ during the promotional period into sales due to brand switching, purchase

time acceleration and stockpiling. Studies on brand switching have shown that brand

switching effects within a category are asymmetric such that promotions on higher quality

brands impacts weaker brands disproportionately. During a promotion, higher quality brands

induce a large number of consumers to switch to them as compared to lower quality brands.

One explanation advanced for this finding by researchers is that large share brands have

higher brand equity and attract switchers more than low share brands.

- 45 -

Sales Promotion leads to purchase acceleration/stockpiling effects:

In response to a promotion, consumers may buy more quantity of the product

category or buy at an earlier time than usual (purchase acceleration effect). If consumers buy

extra quantity during a promotion or earlier than normal, then they are not in the market to

buy products once the promotion is over. Thus purchase acceleration is demonstrated through

A lengthening of inter purchase times after a promotion. Purchase acceleration was more

likely to be exhibited in increased purchase quantity than in shortened inter purchase times.

Results showed that consumers mostly made up for the large quantity purchased by waiting

longer until purchasing again. Results indicated that heavy users tended to accelerate

purchases more than light users. There was negligible difference in the acceleration

propensities of high versus low income groups.

Sales Promotion leads to primary demand expansion for a category:

While it was traditionally assumed that consumption rates remain fixed during and

after a promotion, but from this project I came to know that promotions also have a primary

demand expansion effect. When a primary demand expansion occurs, promotion induced

increase in purchase quantities does not significantly extend the time till the next purchase in

the category occurs, thus indicating that there has been an increase in consumption

promotions induced consumers to buy more and consume faster. It is found that promotion

induced inventory temporarily increased consumption rates within the category e.g. in

categories such as bacon, salted snacks, soft drinks and yogurt exhibited primary demand

expansions as a result of promotion while bathroom tissue, coffee, detergent and paper

towels exhibited stockpiling only.

- 46 -

Sales Promotions affect sales in complementary and competitive

categories:

From this project it is found that promotion not only increases sales of main product

but it also lead to increase in sales of complementary categories. Found strong cross

relationships between products of the promoted product category indicating brand

substitution behavior. They stated that retail price promotions work as a form of implicit

price bundling whereby the consumer surplus is transferred from the promoted item to non

promoted items. Also found that retail price promotions create significant complementary

and substitution effects within the store.

The Long term Impact of Promotions:

Strategies are builds to reap the benefits for longer period of time; same is true in sales

promotion strategies. Let us see impact of promotions effort and study the impact over a

longer time period e.g. 4-6 months or even a few years after a sales promotion campaign.

The result showed that consumer promotions for leading brands of established packaged

products had no after-effects on the brand’s sales or repeat buying loyalty. The extra sales of

a brand while promoted came virtually all from the brand’s existing long-term customer base

for which the experience of buying the promoted brand was nothing new.

It is found that although the short term effects of promotions are strong; these promotions

rarely exhibit long term effects. It is observed that each sales component generally lacked a

permanent effect and the effect of promotion was short lived and increase in promotions

affected consumers’ stockpiling decisions in the long run. They found that the combined

short and long-term elasticity of promotions was zero. The stockpiling induced by a

promotion was essentially offset by reduced demand in the long term. Thus increased sales

were more a result of sales borrowed from the future than increased consumption

- 47 -

SWOT Analysis of FMCG Sector

Strengths:

Well-established distribution network extending to rural areas.

Strong brands in the FMCG sector.

Low cost operations.

Weaknesses:

Low export levels.

Small-scale sector reservations limit ability to invest in technology and achieve

economies of scale.

Several "me-too’’ products.

Opportunities:

Large domestic market.

Export potential.

Increasing income levels will result in faster revenue growth..

Threats:

Imports.

Tax and regulatory structure.

Slowdown in rural demand.

- 48 -

DATA ANALYSIS AND INTERPRETATIONS

Q1. Which brand of Soap do you use for bath?

a) Lux b) Hamam c) Life boy d) Nirma e) Others

TABLE NO: 5.1

Source: Sample Survey

INTERPRETATION:

From the above table it is observed that majority say 41% of the respondents are

using lux soap for their bath. And 14% of the respondents are using life boy for their bath.

And 8% of the respondents are using Nima soap for their bath. And 34% of them prefer other

soaps

Bathing –soaps Respondents Percentage

Lux 41 41%

Hamam 3 3%

Lifebuoy 14 14%

Nima 8 8%

Others 34 34%

- 49 -

Graph no: 5.1

Bathing soaps

0

10

20

30

40

50

Respondents 41 3 14 8 34

Lux Hamam Lifebuoy Nima Others

- 50 -

Q2. Do you always buy the same brand of Soap?

a) Yes b) No

Table no: 5.2

Particulars Respondents Percentage

Yes 56 56%

No 44 44%

Source:SampleSurvey

INTERPRETATION:

The objective behind the formation of this question is to know the level of brand

loyalty of the consumers towards the brands of soaps available in the market. The above

figure shows that on 56% of the respondents are loyal to their brands of detergent/soap. And

44% of the respondents are saying no.

Graph No: 5.2

Brand loyal

0

10

20

30

40

50

60

Respondents 56 44

Yes No

- 51 -

Q3. Which factors do you normally consider while purchasing a particular brand of

Soap / Detergents?

a) Fragrance b) Quality c) Company image d) Price e) Packaging f) others

Table no: 5.3

Factors

Bathing

soap Percentage

Fragrance 19 19%

Quality 33 33%

Company image 16 16%

Price 23 23%

Packaging 6 6%

Others 3 3%

Source: Sample Survey

INTERPRETATION:

From the above table it is observed that the respondents are purchasing the products

based on some factors. Majority 33% of them are seeing quality. And 23% of them are seeing

price. 19% of them are seeing fragrance, 16% of them are attracted by the company image.

6% of them are by packaging and 3% on others.

- 52 -

Graph no: 5.3

Factors affecting purchase behavior

0

10

20

30

40

Bathing soap 19 33 16 23 6 3

Det.powder 18 36 13 19 11 3

Fragrance Quality Company Image

Price Packaging Others

- 53 -

Q4. Do you consider promotional schemes while purchasing a particular brand of

Soap?

a) Yes b) No

Table No: 5.4

Source: Sample Survey

Interpretation:

from the above table it is observed that majority 78% of the respondents are considering

promotional schemes. And 22% of them are not considering promotional schemes while

purchasing the product.

Graph no: 5.4

Particulars Respondents Percentage

Yes 78 78%

No 22 22%

Effect of schemes purchase behavior

0

20

40

60

80

100

Respondents 78 22

Yes No

- 54 -

Q5. Which of the following promotional schemes you have come across so far?

a) Coupons b) Price off c) Freebies d) Scratch cards e) Lucky draw f) Bundling

g) Extra qty.

Table No: 5.5

Promotional

schemes Respondents

Percentage

Coupons 15 15%

price off 25 25%

Freebies 12 12%

scratch cards 11 11%

lucky draw 9 9%

Bundling 8 8%

extra qty. 20 20%

Source: Sample Survey

INTERPRETATION:

From the above table it is observed that Majority, 25% of them are familiar with price

off, 15% of them are with coupons, 12% with freebies, 11% of them with scratch cards, 9%

with lucky draw, 8% with bundling and remaining 20% is from extra quantity.

- 55 -

Graph No: 5.5

Familiarity of promotional Schemes

0

20

40

60

80

100

Respondents 16 84 24 12 9 31 44

Coupons Price off Freebies Scratch Cards

Lucky draw Bundling Extra qty.

- 56 -

Q6. Which medium do you feel is suitable to promote the various promotional schemes?

a) Radio b) TV c) Newspaper

Table no: 5.6

Source Respondents Percentage

Radio 11 11%

TV 60 60%

Newspaper 29 29%

Source: Sample Survey

INTERPRETATION:

From the above table shows that the majority say 60% of them are attracted by TV as

an effective medium for promoting the product. 29% of them are with Newspaper. And

remaining 11% is from Radios.

Graphno:5.6

0

10

20

30

40

50

60

70

Radio TV Newspaper

Series1

Series2

- 57 -

Q7. Is there any existing scheme on the Soap you are currently using?

a) Yes b) No

Table no: 5.7

Particulars Respondents Percentage

Yes 58 58%

No 42 42%

Source: Sample Survey

Interpretation:

The answer of the respondents give idea about the awareness of the promotional

schemes offered in the market on their existing soaps and detergents. In this situation 42% of

the people are not aware or having idea about the promotional schemes running into the

market. 58% of them are aware about various schemes on the soap.

Graph no: 5.7

Existing scheme on the Soap

0

10

20

30

40

50

60

70

Respondents 58 42

Yes No

- 58 -

Q8. If you get an attractive promotional offer in the product other than of your choice

will you switch over?

a) Yes b) No

Table no: 5.8

Particulars Respondents Percentage

Yes 73 73%

No 27 27%

Source: Sample Survey

Interpretation:

It shows the level of brand loyalty among the consumers. The result clearly shows

that out of 100, 73 people are ready to switch over to another brand if they find better

promotional schemes which suits their budget means more qyt + less cost + quality.

Combination of all these schemes will run better in the market. Only 27% of them feel brand

loyalty towards the product.

Graph no: 5.8

Switching behavior

0

10

20

30

40

50

60

70

80

Respondents 73 27

Yes No

- 59 -

Q9. If you get an attractive promotional offer in the product other than of your choice

Which factors are attracts more?

a) Cost+qty b) Quality c) Satisfaction d) Brand loyal e) More benefit/budget

Table no: 5.9

Source: Sample Survey

Interpretation:

Above question it gives specific reasons for switching to other products. It shows that

extra quantity with less or same price, more satisfaction, quality and other factors influence

consumers to switch over too other brands. Majority say 58% of them switching to other

brands because of more benefits and budget, 18% of them because of cost+ quantity, 17% of

because of quality, and very less like 2%, 5%,because of satisfaction and brand loyalty.

Particulars Respondents Percentage

Cost+qty 18 18%

Quality 17 17%

Satisfaction 2 2%

Brand loyal 5 5%

More

benefit/budget 58 58%

- 60 -

Graph no: 5.9

Reason

0

10

20

30

40

Respondents 18 17 2 5 58

Cost+qty Quality Satisfaction

Brand loyal More

Benefit/bud

- 61 -

Q10. Since how long are you in this business?

a) 1-5 Years b) 5-10 Years c) More than 10 years

Table no: 5.10

Particulars Respondents Percentage

1-5 Years 24 24%

5-10 Years 27 27%

More than 10

years

49 49%

Source: Sample Survey

INTERPRETATION:

This question gives idea about the benefit to the retailers who are on the market from

long period of time and the benefits they are getting more as compare to others. It also shows

their experience in the field and the services they are providing too their new and regular

customers. It also gives idea about the benefits they are gaining for wholesalers and direct

from the company.

Graph no: 5.10

0

10

20

30

40

50

60

Series1 24 27 49

1-5 Years 5-10 Years More than 10 years

- 62 -

Q11. Name the Soap you stock for?

a) Nirma b) HUL c) P&G d) Godrej e) Others

Table No: 5.11

Source: Sample Survey

INTERPRETATION:

It gives idea about the capacity of the retailers to stock the goods and also the variety

of the products they are stocking. It will also make clear the demand of the goods in their

stores and the selling of the product in market. Most of the retailer stocks all types of soap

and detergent.

Companies Respondents Percentage

Nirma 22 22%

HUL 24 24%

P&G 20 20%

Godrej 18 18%

Others 16 16%

- 63 -

Graph no: 5.11

0

5

10

15

20

25

30

Nirma HUL P&G Godrej Others

Series1

Series2

- 64 -

Q12. Rank the following factors that customers look for in the purchase of Soap?

a) Fragrance b) Quality c) Company image d) Price e) Packaging f) others

Table no: 5.12

Factors 1 2 3 4 5 6

Fragrance 3 24 33 22 10 8

Quality 66 23 7 3 1 0

Company

Image

9

18 34 24 11 4

Price 17 28 24 16 6 9

Packaging 4 5 2 27 38 24

Others 1 2 0 8 34 55

Source: Sample Survey

INTERPRETATION:

It gives an idea about the priority the influencing factors to the consumers and also

the weight age of that factor over other factors. In the above result people are more quality

and price oriented. On the other hand people are also conscious about the company image.

Because sometimes the consumer remember that name of the product by the company name

and also from the past performance of that company. Fragrance and packaging are not

influencing factor as per the respondents.

- 65 -

Graph no:5.12

Bathing Soap

0

10

20

30

40

50

60

70

Fragrance 3 24 33 22 10 8

Quality 66 23 7 3 1 0

Company Image 9 18 34 24 11 4

Price 17 28 24 16 6 9

Packaging 4 5 2 27 38 24

Others 1 2 0 8 34 55

1 2 3 4 5 6

- 66 -

Q13. Do you suggest customers to purchase a certain brand?

a) Yes b) No

Table no: 5.13

Particular Respondents Percentage

Yes 33 33%

No 67 67%

Source: Sample Survey

INTERPRETATION:

In above Table 67% of retailer are not suggest to purchase particular brand because of

personal relation or that customer are brand loyal. While 33% of the retailer are suggesting

the consumers to buy particular brand. There could be many reasons like, extra margin,

relations with consumers and quality of the products which retailer may get the benefit of the

same.

Graph no:5.13

Suggestion

0

10

20

30

40

50

60

70

80

Series1 33 67

Yes No

- 67 -

Q14. If Yes why?

a) High margin b) Quality c) Relationship d) No reason

Table no: 5.14

Particular Respondents Percentage

High

margin

9 9%

Quality 17 17%

Relationship 7 7%

No reason 67 67%

Source: Sample Survey

INTERPRETATION:

In above table it is clear that for margin and of better relations with

consumers and to provide quality product to consumers they suggest consumers to buy

particular brand. For the company it may be helpful to target such retailers to sell their

product in the market easily.

Graph no: 5.14

If yes

0

10

20

30

40

50

60

70

80

Respondents 9 17 7 67

High margin Quality Relationship No reason

- 68 -

Q15. Do customers look for various schemes in the product?

a) Yes b) No

Table no: 5.15

Particular Respondents Percentage

Yes 92 92%

No 8 8%

Source: Sample Survey

INTERPRETATION:

This gives a real helpful data for checking the effect of sales promotions in the market

and how seriously consumers follow the promotions before they go for purchase particular

brand. The above result shows that only 8 out 0f 100 didn’t go for the promotion. Majority

say 92% of the people go for various schemes in product.

Graph no: 5.15

Customers look for various schemes

0

20

40

60

80

100

Respondents 92 8

Yes No

- 69 -

Q16. If yes which schemes?

a) Coupons b) price off c) Lucky draw d) Bundling offer

Table No: 5.16

Source: Sample Survey

INTERPRETATION:

The above stated results show the demand of various types of promotional schemes in

the market by the consumers. Almost all types of schemes are being demanded by the

consumers in the market but there are three major schemes which consumers generally look

at the time of purchase or before that. Price off, product bundling and lucky draws are more

demanded by the consumers over others scheme

Promotional

Schemes

Respondents Percentage

Coupons 6 6%

Price Off 75 75%

Lucky Draws 14 14%

Bundling Offer 5 5%

- 70 -

Graph no: 5.16

0

10

20

30

40

50

60

70

80

Coupons Price Off Lucky Draws Bundling Offer

Respondents

Percentage

- 71 -

Q17. Which Trade Promotions do various companies offer?

a) Extra Margin b) Extra Units c) Credit facility d) Gifts e) Promo. Exp.

Table no: 5.17

INTERPRETATION:

From the above table it is observed that Godrej Company is using 26% extra margin as a

trade promotion, 20% is as an extra units, 24% is as a credit facility, 18% is as a gifts and

12% as a promotional expenditure. and other companies also using all these trade

promotions.

GODREJ HUL P&G OTHERS

Extra Margin 26 25 28 27

Extra Units 20 21 32 31

Credit facility 24 25 18 17

Gifts 18 19 13 14

Promo. Exp. 12 10 9 11

PERCENTAGE 100% 100% 100% 100%

Source:SampleSurvey

- 72 -

Graph no: 5.17

0

5

10

15

20

25

30

35

GODREJ HUL P&G OTHERS

Extra Margin

Extra Units

Credit facility

Gifts

Promo. Exp.

Trade Promotions do various companies

- 73 -

FINDINGS

Sales Promotion, a short-term inducement, offered to a consumer or trade has gained

momentum as a promotional tool world over. It represents nearly three fourth of the

marketing budget at most consumer product companies. Sales promotions can enhance

consumers’ self-perception of being “smart” or a “good” shopper

FMCG are such a market where the level of loyalty remains low and this is because of many reasons.

Quality as the most influencing factors in the purchase decision while price is also an

important for purchase decision.

Schemes always attract more and more consumers towards particular brand. Simultaneously it gives idea about the factors which consumers look most in the product before they make final decision

Price off and extra quantity is the two main offers/schemes which consumers have

came across at the time of purchase

TV as the best media to market the product which will cover majority of the viewer

ship. On the second place it shows news papers as the media to promote the product in the market

People are not much aware of the schemes which continue in the market it may be because of the present stock of the product at their place.

1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the

market.

People are ready to switch over to another brand if they find better promotional schemes which suits their budget means more qyt + less cost + quality.

Extra quantity with less or same price, more satisfaction, quality and other factors

influence consumers to switch over too other brands.

Retailer stocks all types of soap and detergent because of competition.

- 74 -

People are more quality and price oriented.

Consumer remember that name of the product by the company name and also from

the past performance of that company

Consumer remembers that name of the product by the company name and also from

the past performance of that company

Retailers are not suggest to purchase particular brand because of personal relation or that customer are brand loyal

Margin and of better relations with consumers and too provide quality product to

consumers they suggest consumers too bye particular brand.

Customers are looking for any type of the promotions on the product before them going to purchase.

Price off, product bundling and extra quantity are more demanded by the consumers

over others schemes.

NIRMA is mainly offering credit facility which is offered by all major players it may differ in the time limit of the credit.

HUL attracts more consumers through such promotions, such as display of the

product, banners etc.

- 75 -

SUGGESTIONS

The findings of the empirical study indicate that unless the brand to be promoted

is in the consideration set of the consumer, sales promotion by itself is unlikely to

have any major impact. Clearly this shows that managers need to invest into brand

building exercise so that his/her brand appears in the consideration set of the

target consumers. Only after this should he spend time, money and energy on

sales promotion activities.

Sales promotion should not be used in isolation but need to be integrated with

other tools and in line with the overall positioning of the brand. Also the

importance of the role of mass media came out clearly in the study.

Companies need to create sufficient awareness about sales promotion schemes

through mass media in order to create awareness. FMCG products are low

involvement products characterized by switching behavior. Also the person going

to the shop for the purchase of soap is the final decision maker of the brand.

Hence it is essential that companies need to design attractive, striking, visible

POPs for scheme announcements.

With respect to nature of scheme, the finding suggested that premium (free gift)

was popular with companies. While both retailers and consumers preferred price

offs. So it is necessary that the perceived value of a free gift has to be appealing

and high for the target consumers.

Repetitive use of the same premium for a prolonged period may have negative

effect on the loyal customers. When the company is giving its own product free as

premium, it needs to ensure the quality of the product from it as it is likely to

jeopardize the image of both its products.

The findings exhibited that both the retailers and consumers perceived that sales

promotion activities carried out by the companies for increasing sales in short

term and clearing excess stocks. What it implies is that companies need to use

sales promotion synergistically and communicate so that they provide value to the

target audience and enhance brand quality/image perceptions.

- 76 -

Companies need to systematize information flow regarding sales promotion

activities particularly at dealer and retailer level. Ensuring proper information

flow and devising checks and measures to reduce misappropriations and

implementation flows should be considered critical aspects for the success of

sales promotion activities by the companies. As retailing is fragmented, direct

reach by companies is next to impossible. Through dealers and proper feedback

mechanism, companies keep in touch with the market.

From the study it was found that smaller retailers felt neglected and not enthused

to implement the schemes, particularly when additional handling, stocking,

accounting was required on the part of a retailer without compensatory margins. It

can be seen that the retailer and consumer perceptions matched with respect to

preferences of schemes, underlying motivations and role of mass media. This

implies that the retailer would be a rich source of information about the consumer

and the likely response to sales promotion activities.

Developing a system to tap such responses from time to time both at retailer and

consumer level would be helpful for planning future sales promotion activities. In

order to build trust and commitment companies should tap preferences,

perceptions of retailers as well as consumers.

- 77 -

SUMMARY

So far as FMCG market is concern there is new trend is emerging known as Joint sales

promotion. Actually it is old concept but it was more prevailing in durable products now it is

coming intro non-durable goods also. When any sales promotion scheme either for trade or

consumer is announced by more than one company and /or more than one brand of the same

company, it is referred as joint sales promotion or horizontal co-operative sales promotion or

cross promotion or umbrella sales promotion.

Classification of joint sales promotion:

Use complementarily due to natural use

New use catering complementary relationships

Commonality of need due to use time

Tie-up of a new /slow moving brand with an established brand

Target market commonality

Seasonal demand

Distribution commonality

Targeting new segment

Derived demand

Countering competitive joint sales promotions

- 78 -

CONCLUSION

The study reflects that the use of sales promotion undeniably has increased over the

years in India. Future holds lot of promise for such schemes across wider range of product-

markets. Sales Promotion has ceased to be major differentiator at least in the metros, with

almost all companies offering similar freebies and gifts. As a result now marketers have to

find out some innovative ways of sales promotion to differentiate from competitors.

Currently Price off and Bye one get one free offers are very effective to attract the consumers

towards the products.

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.

One of the very important facts we came to know from this project is that sale of

goods which contain large quantity and having big packaging e.g. detergent are stagnating

because consumer prefer to buy small pack goods, the reasons are: small pack goods reduce

risk of bad quality, It had low cost or say price, and last but important factor i.e. mentality to

purchase just to try first. Sales of small pack goods are quite high, but from the company’s

point of view small pack goods is less profitable compare to large pack goods. So here

marketer tries to increase sales of large pack goods by using sales promotion tactics like price

off and percentage extra.

- 79 -

BIBLIOGRAPHY

1. Marketing Management -- Philip Kotlar, Published by Prentice hall of India Pvt..

2. Industrial Marketing -- Richard M. Hill, Ralph S. Alexander and James Cross

A.I.T.B.S publishers.

3.Information collected from the Management of BIG BAZAAR, Hyderabad.

4.Retail Management – S.C.Bhatia, Atlantic Publishers & Distributers (p) ltd

Magazines referred:

India Today

Business World

Websites referred:

www.google.co.in

www.wikipedia.org

www.big bazaar .com

www.future bazaar.com

www.cii.in

www.managementparadise.com

- 80 -

QUESTIONNAIRE

Q1. Which brand of Soap do you use for bath?

a)Lux b)Hamam c)Life boy d)Nirma e)Others

Q2. Do you always buy the same brand of Soap?

a) Yes b) No

Q3. Which factors do you normally consider while purchasing a particular?

Brand of Soap?

a) Fragrance b) Quality c) Company image d) Price e) Packaging f) others

Q4. Do you consider promotional schemes while purchasing a particular brand of

Soap?

a)Yes b)No

Q5. Which of the following promotional schemes you have come across so far?

a) Coupons b) price off c) Freebies d) Scratch cards e) Lucky draw f) Bundling

g) Extra qty.

Q6. Which medium do you feel is suitable to promote the various promotional schemes?

a) Radio b) TV c) Newspaper

Q7. Is there any existing scheme on the Soap you are currently using?

a)yes b)no

Q8. If you get an attractive promotional offer in the product other than of your choice

will you switch over?

a)yes b)no

Q9. If you get an attractive promotional offer in the product other than of your choice

Which factors are attracts more?

a) Cost+qty b) Quality c) Satisfaction d) Brand loyal e) More benefit/budget

- 81 -

Q10. Since how long are you in this business?

a) 1-5 Years b) 5-10 Years c) More than 10 years

Q11. Name the Soap you stock for?

a) Nirma b) HUL c) P&G d) Godrej e) Others

Q12. Rank the following factors that customers look for in the purchase of Soap ?

a) Fragrance b) Quality c) Company image d) Price e) Packaging f)others

Q13. Do you suggest customers to purchase a certain brand?

a)yes b)no

Q14. If Yes why?

a) High margin b) Quality c) Relationship d) No reason

Q15. Do customers look for various schemes in the product?

a) Yes b) no

Q16. If yes which schemes?

a) Coupons b) price off

c) Lucky draw d) Bundling offer

Q17. Which Trade Promotions do various companies offer?

a) Extra Margin b) Extra Units c) Credit facility d) Gifts e) Promo. Exp.