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CUSTOMER AWARENESS IN SALES PROMOTION

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 consumers 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

In saying, marketing involves the conception, pricing, promotion and distribution of ideas, goods

and services. The fundamental objective of marketing is to exchanges of goods and services

(Frances Brassington and Stephen Pettitt, 2005) By designing products setting sensible,

acceptable and justifiable prices, creating awareness and preferences, and ensuring availability

and service, the marketer can influence the volume of exchange therefore marketing can be

considered as a demand management activity on the part of the selling company.

Promotion is an important component of marketing mix which has got a very significant impact

on the demand managing activity of marketing. The key components of promotion includes

personal selling, direct marketing, advertising, sales promotion, and public relations. Sales

promotion is a range of marketing techniques designed with in a strategic marketing frame work

to add extra value to a particular product or services, developing a promotion strategy involve

deciding on the objectives of marketing communication. Promotion objectives are so vital that

these objectives are the key in determining the role of each components of the promotion mix in

the marketing objectives of the organisation. The role of promotion mix components depends on

the type of organization, nature of products, etc. Promotion is a part of integrated marketing


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communication which recognizes the advantages of having a complete plan to find better ways

of understanding and connecting with consumers.

Organizations are forced to test various strategies to find a better one suitable for them in

increasing their sales and market share. Sales promotion is one of the important promotion

strategies followed by the retailers. Sales promotion refers to communication strategies designed

to act as a direct inducement, an added value, or incentive for the product to customers. In retail

industry sales promotion efforts are designed in such a way that it always assists all other

promotional activities undertaken by a retail store. Sales promotion always tends to encompass

all the external factors such as advertising, publicity and direct marketing although these might

be used to deliver sales promotions. Since the sales promotion is all about communicating we

could see in this study that how an effective sales promotion strategy executed or implemented

through a better communication results in positive perception in consumers there by resulting

increased sales.

The leave no stone unturned to woo the consumer in various festive seasons. The Drivers of

various festive Bonanza re of two types one is to cash in on increased festive season spending

and the other one is more of a bottom-line driven, with loss making stores looking to wipe out

losses. Retails stores utilises the festive seasons to liquidate all stocks and inventories to avoid

loss on account of excess inventory and low turn over.

The promotion programmes relate to consumer purchase decision and what the strategies

adopted by the retail group. Most observers feel that dealing activity do not build long term

consumer loyalty. The different services offered by the retail chains or hypermarkets may be

perceived positively by certain set of consumers due to the opportunity it provides them to lookat the products leisure. Retailers often develop and design the retail marketing mix to ensure

patronizing the retail store or format by the target segment or to attract new customers. The

attractive sales promotion offers may or may not be effective


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INDUSTRIAL PROFILE

After achieving the leadership position in Software solutions, the group entered into the state of

Gujarat- non IT technologies, where local players are formidable. The group launched its

organization, Deccan solutions in Ahmadabad in June 2003 is a Case Study with IIM-A for its

first day net paid sale of 4, 52,000 lakh copies. In 2004 Deccan solutions further launched its

edition in Surat &Baroda and Rajkot in early 2005. In Sep. 2004, Deccan solutions group had

taken over another Gujarati newspaper Saurashtra Samachar in Bhavnagar- the leading

newspaper in Saurashtra region. In just two years Deccan solutions has become the no.1 in

Ahmadabad, Baroda & Surat in terms of leadership. Also launched its North America edition

from New York in May 2004.

After setting many new trends in Hindi & Gujarati market, Deccan solutions group, in

association with Zee, launched its English newspaper DNA (Daily News & Analysis). In July

2005 with a circulation of 3 lakh + copies per day.

In sep. 2004, the group has also launched a monthly complete Hindi magazine Aha Zindagi for

positive & good life. Today the magazine enjoys circulation of 1.35 lakh copies with 5.95 lakh

readers.

Over a period, the group has diversified its business into Textile, Solvent Extraction, Job

Printing, FMCG, and IT & Family entertainment. As of today Deccan solutions group is a 400

crore company.


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Milestones:

2009

Inauguration of Deccan solutions Print Planet at Changodar, Ahmadabad by Narendra

Modi, chief minister, Gujarat, on November 13, 2009

Installation of KBA printing machines imported from Germany at Jaipur and Ahmadabad

facilities

Launch of DB Star Jodhpur editions on Aug15, 2009

2008

Deccan solutions completes fifty glorious years as a leading Hindi publication

Business Deccan solutions, a Hindi financial newspaper, was launched in Bhopal, Indore,

Raipur, New Delhi, Panipath, Jalandhar and Ludhiana with separate editions for each of

these cities

Launch of Deccan solutions editions in Pali, Nagaur, Bhilai, Ratlam and Shimla

Launch of DNA in Jaipur as a franchise by DB Corp Ltd Launch of editions of DB Star in Bhopal and Indore

MY FM consolidates its network with 17 radio stations in 7 states, across India

2007

Launch of DB Goldthe first compact newspaper in Gujarati from Surat

Launch of DNA in Ahmadabad and Surat as a franchise by DB Corp Ltd

Launch of Young Deccan solutions Magazine for children and Lakshya, a careermagazine

MY FM enhances its reach to 14 cities across India

Launch of Deccan solutions Ludhiana edition on Dec 15

Launch of Deccan solutions Bhuj edition on July 30, making it the only Gujarati

newspaper with seven editions in Gujarat


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Launch of Deccan solutions Rajkot edition on Nov 01

2006

Entry in Punjab with launch of Amritsar and Jalandhar edition on Oct 08

2005

Inception of DB Corp Ltd, pursuant to the demerger of publishing business of Writers

and Publishers Limited (WPL)

The Deccan solutions group won license from Ministry of Information and Broadcasting

for launch of radio business, through their subsidiary, Synergy Media Entertainment Ltd

(SMEL), in seventeen stations, in the name of MY FM AHA! Zindagi magazine launched in Gujarati language

IMCL, a new web media company was formed as a subsidiary of DB Corp

2004

Launch of new Hindi magazine, AHA! Zindagi, the first of its kind on lifestyle and

positive thinking

In their first merger and acquisition, the Deccan solutions group acquired SaurashtraSamachar the sixty years old, largest circulated daily newspaper of Saurashtra

Launch of Deccan solutions Baroda edition on Sept 12

Initiated presence in Maharashtra with the launch of Deccan solutions Mumbai edition in

July

Launch of Deccan solutions Surat edition on March 28

2003

Launch of Deccan solutions from Ahmedabad on June 22. This was the biggest launch of

any new edition, across languages, across territories in India where the daily was

launched with 4,52,000 copies on day first and became the leading publication in

Ahmadabad city


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2001

Deccan solutions Group further consolidated its position by launching Faridabad edition,

in Haryana state, after two editions from Panipat and Hisar

2000

Deccan solutions group expands presence to Haryana state on June 04, by launching

Panipat and Hisar editions

Launch of Deccan solutions Chandigarh edition on May 07


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COMPANY PROFILE

Established in the year 2000, we, Deccan Energy Solutions Pvt Ltd., are eminent

organization engaged in supplying and system integrating a wide range of quality-assured SolarHome & Street Lights, Lanterns, Water Heaters and Panels . Offered array of products ismanufactured by expert professionals using excellent quality raw material and cutting-edgetechnology. These solar products are traded by our professionals in adherence with theinternational quality standards. Widely used in domestic and commercial purposes, these solarproducts are highly appreciated among the clients for its remarkable features such as longerfunctional life, efficient performance, low maintenance and user & environmental friendliness.

Backed up by a top-class infrastructure facility, we are trading a qualitative & qualitative range ofsolar products. Our sophisticated infrastructure is well-equipped with the latest machines, toolsand advance technology to ensure the uninterrupted flow of work. Further, to handle all the

business process, we have appointed a team of deft professionals. These professionals are well-versed with the entire process and help us in meeting the expectation of our clients. Also, owingto their hard work and sincere efforts, we have been successful in gaining an immense success inthis domain. Moreover, with their help, we have been successful in developing a vast clientle allacross the IndianSubcontinent.

Under the valuable guidance of our mentor, 'Mr. K. Duraisamy', we have been able to create aunique niche in the domestic market. His brilliant management skills, vast experience and in-depth knowledge have helped us in staying ahead of our counterparts.

Company Profile

Basic Information

Business Type

Importer

Supplier

Trader

Ownership & Capital

Year of Establishment 2000

Ownership Type Private Limited Company

Trade & Market


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Major Markets

Indian Subcontinent

Annual Turnover Rs. 2 - 5 Crore ( or US$ 400 K - 1 Mn Approx.)

Team & Staff

Total Number of Employees 11 to 25 People

Company USP

Primary Competitive Advantage

Experienced R & D Department Good Financial Position &

Large Product Line Large Production Capacity

Quality Measures/Testing Facilities Yes

Packaging/Payment and Shipment Details

Customized Packaging Yes

Payment Mode

Cash Cheque

Credit Card DD

LC Pay Order

Wire Transfer

Shipment Mode By Air By Road

By Sea


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Our Team

Our organization is firmly supported by a team of deft professionals, who work relentlessly to accomplish the pre-defined

organizational goals. Our competent professions supports us as a backbone and enables us to offer a qualitative range

ofSolar Home & Street Lights, Lanterns, Water Heaters and Panels news papers . These professionals possess an

impeccable knowledge and experience of this domain that helps us in carrying out all business process in more efficient

manner. Further, to ensure the streamline flow of work, all team members work in a cordial manner.

Below mentioned are the members, our team comprises:

Engineers

Production managers

Quality controllers

Research experts

Sales and marketing executives

Administrative personnel

Skilled and semi-skilled worker

Our Quality Assurance

Owing to excellent quality of offered solar products, we have gained an immense success in this domain. To maintain the

same, we ensure to quality check the offered array ofSolar Home & Street Lights, Lanterns, Water Heaters and

Panels using premium quality raw material and components. Also, our engineers check the entire range of solar products

keeping international quality standards in mind. Further,to dispatch only defect-free range of products, we have appointed ateam of efficient quality controllers. These quality controllers also test the entire range on various per-defined parameters to

ensure its flawlessness.

Client Satisfaction

In order to trade and offer a qualitative range of solar products, we have developed a safe & sound infrastructure. Our

sophisticated infrastructure facility enables us to carry out all the business processes without any hassle. Further, to ensure

the smooth execution of all the processes, we have divided our premises into various divisions. Holding their specific

responsibilities and duties, these departments are system integrating, quality controlling, administrative, logistic, packaging

and warehousing. Also, we have installed latest machines, tools and advance technology at our infrastructure.


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SCOPE OF THE STUDY

This study helps in identifying the key and strategic influencing factors which has an influence in

the performance level of the sales and provides way and means through which better results i.e,

higher sales promotion can be achieved it is high important to study the sales promotion in the

present dynamic and complex world of intense competition in order to satisfy the organization

expectation an d need better than competitor

The present study is limited to Deccan Solution limited located at Kanchanbag, Hyderabad. The

scope of the present study has confined to above objectives.


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Need For the Study

Every organization big or small, productive or non productive economic or social, old or newly

established should provide training to all employees irrespective of their qualification, skill,

suitability for the job etc., Marketing plays a very important function of any personal

administration

In order to find out the effectiveness of marketing, of Deccan Solutions wants Find out there

employees opinion and their satisfaction level. So that this study was conducted to collect data

and from the observation and findings, suggestions as to be submitted to the personal Department.

It are hoped that the personal Department will look in to suggestions and try to implement them.


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OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

The main purpose of this research is to gain the effects of promotional programme on consumers

perception with special reference to the promotional programmes of _____. And to assimilate

how it affects on consumers buying decision. This research also helps to understand how

successfully they could carry out certain schemes and how far it could gain the consumers

attention.

SECONDARY OBJECTIVE

Following are some of the secondary objectives for which the research is carried out.

To study about consumers attitude towards sales promotion

To evaluate the effectiveness of sales promotion schemes.

To study about the suitability of offers in each departments

To find the customer loyalty to the sales promotion programmes

To find out the best communication channel for promotion.

To find out the effects of sales promotion on consumer perception

To find out the awareness level of the consumers with concern to various sales promotions

To find out the effects of sales promotion on buying decision.


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Limitations Of The Study

Any Research study does have limitations no matter how much care is taken by researcher to

avoid them. These limitations may be build in the system or may have erupted in to the study due

to the following factors.

The Researcher has to face more difficulties in administering the questionnaire, As the

respondents were not responded during there working hours.

Some employees did not disclose much of information for fear of the superior.


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RESEARCH METHODOLOGY

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 Packs, 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.

MARKETERS 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

Lets 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 used.

A coupon leads to price reductions so as to encourage price sensitive customers. Non users can trya product which may leads to regular sales.

2. PRICE-OFF:


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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.

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 thats 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 its 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 amarketingstrategy that involves offering severalproductsfor sale as one

combined product. This strategy is very common in thesoftwarebusiness (for example: bundle

aword processor, aspreadsheet, and adatabaseinto a singleoffice suite), in thecable
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televisionindustry (for example, basic cable in theUnited Statesgenerally offers many channels

at one price), and in thefast foodindustry 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.

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

a

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 no where. 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. Salespromotion 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
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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.

4. Budget Available for Promotion:

The funds available for promotion are the ultimate determinant of the promotional programme. A

business with ample funds can make more effective use of sales promotion programme than a

firm with limited financial resources. The budget for sales promotion can be prepared by the

following methods

Percentage of Sales

Fixed funds available for sales promotion

Following the competition, and

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.


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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.

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 than 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


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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.

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 companys 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 RETAILERS 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


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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.

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


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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.

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 companys follow up was not adequate.


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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.

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


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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 times 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.

WHY DO SALES PROMOTION SCHEMES AFFECT SALES?

There are three mechanisms behind these facts. It is Purchase quantity, Brand switching and

Category expansion.

First, consumer can increase the quantity they buy just because the product is on sale.

Second, consumers are inducing to purchase another brand different from the one they would

have purchased when there is no promotional incentive.

Finally,consumers total consumption of the product category is increased by the promotion.

However, in the long term this positive effect may be diluted because a promotional campaign has

no permanent effect in the sales of the firm

FACTORS INFLUENCING CONSUMER BEHAVIOR

There are both internal and external factors that affect the ways in which consumers act. The

internal factors are interest, attitude, opinion, outlook etc. The external factors are society, culture

peer, family (wells,1975). Individuals use certain goods and practices in a number of ways firstly

they use the goods as materials with which to create foster and develop their identity (Elliot and

Wattanasuwan, 1998).


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Here the symbolic meaning of goods is used as an outward expression of their self concept and

connection to society. Certain recent research found that consumers develop a sense of who they

are over time, through a long, continues process of self examination and observation.

The study of consumer behaviour includes a broad range of topics and activities, it is concerned

with understanding of individuals purchase and consumption activities and how individual

consumers are acquiring information and the way they process the information into a purchasing

decision. Solomon and Stuart (2000) explains the consumer buying behaviour as the process

individuals or groups go through to select, purchase, or use goods, services, ideas, or experience

to satisfy their needs and desires also emphasised by Kotler and Amstrong (2000).

The consumer decision making process can be explained in the following diagram. These are

some of the highly significant factors that affects and influence the consumer in making a buying

decision.


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Here the researcher trying to explain in detail the motivational factors on perception of a brand,

package or a promotional activity makes the consumer aware of the availability of a product.

Consumers buying decision is often motivated by something more than awareness, Belk (2003) it

depend mainly on his needs and drives. Consumer motivation is the driving force which makes

the buying decision.

SAMPLING DESIGN

1)POPULATION: The population consists of both managerial staff and non-

managerial staff of Deccan Solution, Hyderabad.

2)SAMPLE UNIT: Sample unit will be the employees in Deccan Solutions

,Hyderabad

3)TYPE OF SAMPLING : Simple random sampling is used as the sampling

technique.

4)SAMPLE SIZE: The research has collected information form 100

employees of Deccan Solution, Hyderabad with the structured questionnaire.


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DATA ANALYSIS AND INTERPRETATION

ANALYSIS OF CONSUMER SURVEY FOR SALES PROMOTION

INTRODUCTION:

This chapter deals with the analysis and interpretation of the collected primary data. The research is

conducted to evaluate the consumer perception of various sales promotion offers with respect to m/s Big

Bazaar, Bangalore with special reference to various promotion offers operated and introduced by them.

Here the researcher has collected the data through questionnaire from 100 respondents chosen by the

method of convenience sampling is analyzed here.

The personal detail of 100 respondents such as gender classification, age wise classification, location wise,

income wise classification, their mother tongue, family size, occupation are shown below:

Gender:

Out of 100 respondents there were 68 males and 32 female respondents.


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Q1. Which brand of Soap / Detergent do you use?

Bathingsoaps Respondents

Lux 41

Hamm 3

Lifebuoy 14

Nima 8

Others 34

Interpretation:The above question has been formed to know the soaps and detergents at the top of the mind of

the customers. It shows those consumers purchase and use of that particular brand. It will help to

the company to know the market scenario and the major brands in the market.

Form the above result it is clear that out of 100 customers more than 40 are consumers are having

the same brand as the image in their mind, whereas others category is also showing the higher

graph than these 3 major players(Hamam, Lifebuoy, Nima).

0

5

10

15

20

25

30

35

40

Nirma supper Wheel Surf Ariel Others


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Detergent powder Respondents

Nirma supper 19

Wheel 14

Surf 35

Ariel 18

Others 14

Interpretation:

Form the above result it is clear that out of 100 customers 35 are purchasing the same brand of

detergent, whereas all others are on same level.

0

5

10

15

20

25

30

35

40

Nirma supper Wheel Surf Ariel Others

Column2

Column1

Series 1


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

Particulars Respondents

Yes 56

No 44

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. FMCG are such a market

where the level of loyalty remains low and this is because of many reasons.

0%

10%

20%

30%

40%

50%

60%

70%80%

90%

100%

YES NO


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Q3. Which factors do you normally consider while purchasing aparticular brand of Soap / Detergents?

FactorsBathing

soap Det.powder

Fragrance 19 18

Quality 33 36

Company image 16 13

Price 23 19

Packaging 6 11

Others 3 3

Interpretation:

The objective behind this question is to know the effect of influencing factors in the purchasedecision of the soaps and detergent powders. It mainly contains the factors like, quality whichplayers an important role in the purchase decision of the soaps and detergents both. If we look atthe graph of the soaps and detergent it shows quality as the most influencing factors in thepurchase decision while price is also an important for purchase decision.

0

5

10

15

20

25

30

35

40

Fragrance Quality Company

image

Price Packaging Others

Series 1

Series 2

Column1


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Q4. Do you consider promotional schemes while purchasing a particularbrand of Soap / Detergent?


Yes 78

No 22

H0: Promotional schemes have a significant effect on the purchase of brand.

H1: Promotional schemes do not have an effect on the purchase of brand.

Interpretation:Answer of this question will give idea about the effect of promotional schemes in the purchasedecisions. Such types of schemes always attract more and more consumers towards particularbrand. Simultaneously it gives idea about the factors which consumers look most in the productbefore they make final decision.

Here H0 is accepted as the graph shows that 78 out of 100 consumers are looking for suchschemes before they make purchase.

YES

NO


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

Promotional schemes Respondents

Coupons 16

price off 84

Freebies 24

scratch cards 12

lucky draw 9

Bundling 31

extra qty. 44

Interpretation:

The above stated question clearly states the awareness of promotional schemes offered in the

market by the marketers to attract more and more consumers.

The results show that price off and extra quantity is the two main offers/schemes which

consumers have came across at the time of purchase. It will help the manufacturers and marketers

too how too launch their new products in the market with which schemes.

Coupons

Price off

Freebies

Scratch Cards

Lucky draw

Bundlings

Extra qty


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

Source Respondents

Radio 11

TV 69

Newspaper 43

Hoarding 15

Others 12

Interpretation:

This question gives stress on the media habit of the people and through which the product should

be launch or they think it would be better than other Medias.

The above result shows 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.

0

10

20

30

40

50

60

70

80

Radio Tv Newspaper Hoaring Others

Series 1

Column1

Column2


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Q7. Is there any existing scheme on the Soap / Detergent you arecurrently using?


Yes 58

No 42

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 more then 40% of the people are not aware or having vague idea about the

promotional schemes running into the market.

It shows that 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.

0 10 20 30 40 50 60

YES

NO

Series 1

Column1

Column2


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Q8. If yes, please specify?


3+1/Other

Free 36Discount 22

No idea 6

No answer 36

Interpretation:

This question supports the above question. It enlists the answers of those customers who areaware of the present schemes offered in the market and also those schemes which are more

demanded in the market.

The result shows that 1+1 or 2+1 or other free schemes are more demanded and more aware

schemes in the market. So manufacturers may go for the same at the time of launching their

product.

0

5

10

15

20

25

30

35

40

3+1/other FreeDiscount

No IdeaNoAnswer

Series 1

Series 2

Series 3


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Q9. If you get an attractive promotional offer in the product other then ofyour choice will you switch over?


Yes 73

No 27

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.

YES

NO


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Q10. Give reason for the same?


Cost+qty 16

Quality 17

Satisfaction 2

Brand loyal 5

More benefit/budget 22

Season change 2

No answer 36

Interpretation:

Above question it gives specific reasons for switching too 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.

0

5

10

15

20

25

30

35

40

Column2

Column1

Series 1


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Q11. Since how long are you in this business?


1-5 Years 24

5-10 Years 27

More than 10 years 49

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.

0

5

10

15

20

25

30

35

40

45

50

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


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Q12. Name the Soap / Detergent (Company) you stock for.

Companies Respondents

Nirma 96

HUL 100

P&G 90

Godrej 94

Others 68

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.

0

10

20

30

40

50

60

70

80

90

100

Nirma Hul P&G Godrej Others


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Q13. Rank the following factors that customers look for in the purchaseof Soap / Detergent. (Rank from 1 to 6)

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

Interpretation:

It gives an idea about the priority the influencing factors too 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.

0

10

20

30

40

50

60

70

Factors Fragrance Quality Company

Image

Price Packaging


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Factors 1 2 3 4 5 6

Fragrance 11 17 41 21 7 3

Quality 43 34 16 6 1 0

CompanyImage 13 16 27 26 11 7

Price 27 28 14 9 6 16

Packaging 6 5 2 33 43 11

Others 0 0 0 5 32 63

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Factors Fragrance Quality Company

Image

Price Packaging Others


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Interpretation :

It gives an idea about the priority the influencing factors too 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 thecompany image. Because sometimes the consumer remembers that name of the product by the company name and

also from the past performance of that company. Fragrance and packaging are also play important role for purchasing

detergent powder.


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Q14. Do you suggest customers to purchase a certain brand?

Particular Respondents

Yes 33

No 67

Interpretation:

This could be a very help question to understand the role of retailers in the purchase decision.

In above graph 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.

0

10

20

30

40

50

60

70

80

YES NO


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Q15. If Yes why?


High margin 9

Quality 17

Relationship 7

No reason 67

Interpretation:

it gives idea about the reasons why retailers suggest the consumers to buy particular brand.

In above graph and table it is clear that for margin and of better relations with consumers and too provide quality

product to consumers they suggest consumers too bye particular brand. For the company it may be helpful to target

such retailers to sell their product in the market easily.

High Margin

Quality

Relationship

No Reason


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Q16. Do customers look for various schemes in the product?


Yes 92

No 8

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 didnt go for the promotion otherwise all are looking forany type of the

promotions on the product.

0 20 40 60 80 100

YES

NO

Series 1

Column1

Column2


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Q17. If yes which schemes?

Promotional

SchemesRespondents

Coupons 11

Price Off 82

Freebies 35

Scratch Cards 2

Lucky Draws 19

Bundling Offer 65

Extra Quantity 79

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 extra quantity are more demanded by the consumers over others schemes.

0

0.2

0.4

0.6

0.8

1

1.2

0

10

20

30

40

50

60

70

80

90

Coupons Price O ff Freebies Scratch

Cards

Lucky

Drawa

Bundlings

offer

Extra

Quantity

Column1

Column2

Column3

Column4


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Q18. Which Trade Promotions do various companies offer?

NIRMA

Promotions Respondents

ExtraMargin 46

Extra Units 34

creditfacility 55

Gifts 24

promo. Exp. 8

H0: Effect of trade promotions for all four brands is similar.

H1: Effect of trade promotions for all four brands is not similar.

Interpretation:

From the above graph shows the trade promotions offered by the NIRMA Ltd to the retailers to attract them towards

stocking their goods and also stop them switching them too other major players in the market.

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

0

10

20

30

40

50

60

Extra MarginExtra Units

Credit FacilityGifts

Promo.Exp


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is also providing extra margin, and units with occasional gift with their schemes.

HUL


Extra Margin 47

Extra Units 34

Creditfacility 58

Gifts 25

Promo. Exp. 22

Interpretation:

The advantage of HLL over NIRMA is that it bare promotional expenses which NIRMA is not doing. It attracts more

consumers through such promotions, such as display of the product, banners etc.

So this may help it to attract more retailers. It may because of its less cost of production in other segments in which

nirma is not operating.

Extra Margin

Extra Units

Credit facility

Gifts

Promo.Exp


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P & G


Extra Margin 40

Extra Units 33

Creditfacility 55

Gifts 20

Promo. Exp. 12

Interpretation:

P&G is also a big player in the FMCG market. It is also providing all the facilities which others are providing to retailers.

0% 20% 40% 60% 80% 100%

Extra Margins

Extra Units

Credits Facility

Gifts

Promo.Exp


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GODREJ


Extra Margin 46

Extra Units 32

Credit facility 57

Gifts 19

Promo. Exp. 18

Interpretation:

Godrej is a big player in the FMCG market. It is also providing all the facilities which others are providing to retailers.

But it is lacking in bearing expenses which HUL is providing to maximum number of retailers.

0

10

20

30

40

50

60

Extra Margins Extra Units Credit Facility Gifts Promo.Exp


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OTHERS


ExtraMargin 30

Extra Units 18

Creditfacility 38

Gifts 15

Promo. Exp. 7

Interpretation:

Others include local players, as well as we established players like, wipro but their products are not in demand likeother players but still they are providing all the facilities to retailers to attract towards stocking their products.

Extra Margin

Extra Units

Credit Facility

Gifts

Promo.Exp


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Q19. Give suggestions about futuristic promotional schemes?

This show the consumers future expectations from the whether company to come with new

schemes or continue with present one. It shows consumers demand which the manufacturers have

to meet.


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FINDINGS OF THE REPORT:

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

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 withless 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.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.


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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.


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SUGGESTIONS

1. Since sales figures showing noticeable growth on special offers, consumers should be

made aware about the various available offers on a regular basis through better coverage.

2. The offers given should be of quality products and conditions should be under profit to

consumer.

3. The offers should be for the whole day.

4. More details should be included in the advertisements about the sales promotion of

Deccan Solutions

5. Discount offer can be allocated for a single piece rather than using the offers like buy one

get one.

6. The availability of the branded product should be heterogeneous.

7. The offer should be available to all the products in Deccan Solutions.

8. The offers should be frequent.

9. Offers should be at the level of middle class people.

10. Since the special offer has made a great impact over the departments they can adopt this

strategy in the future concepts.

11. Consideration should be given to discount offers.

12. As the customer gives more weight age to the quality, it can be taken as a main

promotional feature for the products.

13. The coverage should be well extended since it has been the major issue related to salespromotion activities

14. Signages can be positioned is those area (entry and exit) as such the customers can easily

come to know about the offers for the different products and it should be more clear.


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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 competitors 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 companys point of view small pack goodsis 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


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APPENDICES:-

Q1. Which brand of Soap / Detergent do you use?

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

Particulars Respondent

Yes

No

Q3. Which factors do you normally consider while purchasing a particular brand of Soap /Detergents?

FactorsBathingsoap Det.powder

Fragrance

Quality

Company image

Price

Detergent powder Respondent

Nirma supper

Wheel

Surf

Ariel

Others

Bathingsoaps Respondent

Lux

Hamam

Lifebuoy

Nirma

Others


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Packaging

Others

Q4. Do you consider promotional schemes while purchasing a particular brand of Soap /Detergent?


Yes

No

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

Promotionalschemes Respondent

Coupons

price off

Freebies

scratch cards

lucky draw

Bundling

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

Source Respondent

Radio

TV

Newspaper

Hoarding

Others

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


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Yes

No

Q8. If yes, please specify?


3+1/OtherFree

Discount

No idea

No answer

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


Yes

No

Q10. Give reason for the same?


Cost+qty

Quality

Satisfaction

Brand loyal

Morebenefit/budget


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Season change

No answer

Q11. Since how long are you in this business?


1-5 Years 24

5-10 Years 27

More than 10 years 49

Q12. Name the Soap / Detergent (Company) you stock for.

Companies Respondents

Nirma 96

HUL 100

P&G 90

Godrej 94

Others 68

Q13. Rank the following factors that customers look for in the purchase ofSoap / Detergent. (Rank from 1 to 6)

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


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Factors 1 2 3 4 5 6

Fragrance 11 17 41 21 7 3

Quality 43 34 16 6 1 0

CompanyImage 13 16 27 26 11 7

Price 27 28 14 9 6 16

Packaging 6 5 2 33 43 11

Others 0 0 0 5 32 63

Q14. Do you suggest customers to purchase a certain brand?


Yes 33

No 67

Q15. If Yes why?


High margin 9

Quality 17

Relationship 7

No reason 67


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Q16. Do customers look for various schemes in the product?


Yes 92

No 8

Q17. If yes which schemes?

Promotional

SchemesRespondents

Coupons 11

Price Off 82

Freebies 35

Scratch Cards 2

Lucky Draws 19

Bundling Offer 65

Extra Quantity 79

Q18. Which Trade Promotions do various companies offer?

NIRMA


ExtraMargin 46

Extra Units 34

credit

facility 55

Gifts 24

promo. Exp. 8

H0: Effect of trade promotions for all four brands is similar.

H1: Effect of trade promotions for all four brands is not similar.


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Q19. Give suggestions about futuristic promotional scheme


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BIBLIOGRAPHY

BOOKS

Philip Kotler, Marketing Management, 11th edition, Pearson education Asia

Publication.C.R.Kothari, Research Methodology methods & techniques, New AgeInternational(p)ltd.publishers,2ndedition.

WEBSITES

http://www.nirma.co.in_fileshttp://www.hul.co.in_fileshttp://www.pg-india_fileshttp://www.godrej_files

Documents

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