Upload
jason-diaz
View
218
Download
0
Embed Size (px)
Citation preview
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 1/83
A
GRAND PROJECT REPORT
ON
“ROLE OF SALES PROMOTION ON FMCG”
A grand Project report submitted in Partial Fulfillment of award of MBA Degree
PROJECT GUIDE:PROF. SHARIF MEMON
PROF. BHARGAV MODI
SUBMITTED BY:VISHAL PATEL (08077)
JITENDRA RAJAI (08080)
SUBMITTED TO:
N.R.INSTITUTE OF BUSINESS MANAGEMENT
AHMEDABAD
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 2/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
This is to certify that M%. V"+#l P#'l and M%. J',%# R#-# the students of MB
!nd year of "#R# Institute of Business Mana$e%ent& h%eda'ad ha(e co%)*eted their
Grand Pro+ect “Rol o! "#l" $%o&o'o" FMCG” in the year !,,-.!,/, in )artia*
fu*fi**%ent of Gu+arat Uni(ersity re0uire%ents for the a1ard of the de$ree of Master of
Business d%inistration#
D%*'o% G%#, P%o-*' G,
Prof# Dr# 2itesh Ru)are* Prof Sharif Me%on
Prof Bhar$a( Modi
D#'/
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 3/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
PREFACE
In this a$e of $*o'a*i7ation hy)er co%)etition has 'eco%e a re$u*ar feature#
Today the %ar5ets are no *ess then 'att*e$rounds and one has to stri(e (ery hard for
sur(i(a* and $ro1th#
Due to (ery ra)id industria*i7ation a** o(er the 1or*d the de%and for the
%ana$eria* )ersonne* and the ad%inistrati(e )ersonne* has increased# The )erfect study
of Mana$e%ent in(o*(es 'oth the theoretica* as 1e** as )ractica* as)ects# To sur(i(e in
this hi$h*y co%)etiti(e %ar5et 8Practica* 9no1*ed$e is as re*e(ant as the Theoretica*#
The si$nificance of MB De$ree is that the Theoretica* as)ects& 1hich a student
*earns throu$hout the year in the c*ass sessions& can 'e )ractica**y a))*ied throu$hdifferent )ro+ects& 1hich one underta5es# 9ee)in$ in tune 1ith this doctrine& 1e ha(e
tried to a))*y theoretica* as)ects throu$h out the )ro+ect& 1hich 1e *earned under the
course of %ana$e%ent#
In this )ro+ect %ore e%)hasi7e $i(en to the (arious too*s of sa*es )ro%otion and
its i%)act on consu%ers 'uyin$ decisions# ctua**y in recent trend to so%e e;tent this
techni0ue a*so 'eco%e (icti% of c*utter& e(en thou$h it can 'e e*i%inated 'y $eneratin$
inno(ati(e and %ore attracti(e too*s to *ure the custo%ers#
"o1 a day %ost of the <MCG co%)anies considerin$ sa*es )ro%otion as an
i%)ortant )art of their %ar5etin$ strate$y# <ro% the ana*ysis of sur(ey it 'eco%es c*ear
that consu%ers do res)onse to the sa*es )ro%otion ca%)ai$n& 'ut there are custo%ers
1ho stron$*y )refer to stic5 to 'rand na%e#
G3S "RIBM Jitendra Ra+ai
Gu+arat Uni(ersity =isha* Pate*
h%eda'ad
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 4/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
#
ACNO1LEDGEMENT
E(ery study re0uires a $uidance of so%eone 1ho is 1or5in$ in that fie*d#
<irst*y 1e 1ou*d *i5e to than5 Director Sir Dr# D% H'"+ R$#%l for )ro(idin$
an o))ortunity of )re)arin$ a Grand Pro+ect Re)ort and a**o1in$ us to use the
resources of the institution durin$ this )ro+ect#
>e are e;tre%e*y than5fu* to our Pro+ect Guide& P%o! S+#%! M&o #,
P%o! B+#%2#3 Mo, of "RIBM for their )recious $uidance re$ardin$ the
)re)aration of the Pro+ect Re)ort# Their $uidance has )ro(ed to 'e usefu* and
1ithout the%& the )re)aration of this re)ort %i$ht not ha(e 'een )ossi'*e#
>e are a*so than5fu* to the other facu*ty %e%'ers of "RIBM for
e;tendin$ their (a*ua'*e su))ort for this )ro+ect#
>e a*so e;tend our sincere than5s to the Res)ondents& 1ho he*)ed us
durin$ the course of our )ro+ect and for their $racious attitude#
>e 1ou*d *i5e to ta5e this o))ortunity to e;tend our 1ar% thou$hts to
those 1ho he*)ed %e in %a5in$ this )ro+ect a 1onderfu* e;)erience#
3ast 'ut not the *east? 1e 1ou*d a*so *i5e to than5 our fa%i*y for their
su))ort and encoura$e%ent#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 5/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
E4*'3 S&&#%5
s a )art of our study curricu*u% it is necessary to conduct a $rand )ro+ect# It
)ro(ides us an o))ortunity to understand the )articu*ar to)ic in de)th and 1hich *eads to
throu$h to that to)ic# My to)ic for the $rand )ro+ect is tit*ed as 8Study of consu%er
oriented sa*es )ro%otion in <MCG sector in 1hich e%)hasis $i(en to the effect of sa*es
)ro%otion on 'uyin$ ha'its of consu%ers#
To start 1ith 1e 1i** $i(e 'rief infor%ation re$ardin$ <MCG sector then %o(in$
to the %ain to)ic 1e 1i** e;)*ain 1hat is to)ic is a** a'out# Pro%otion is one of the
)i**ars of %ar5etin$ %i; and sa%e 1ay sa*es )ro%otion is a*so one of the e*e%ents of
)ro%otion#
>ith res)ect to consu%er oriented sa*es )ro%otion there are certain theories
narrated as o)erant conditionin$ and )ro+ecti(e theory# Based on secondary source
certain theoretica* as)ects are a*so inc*uded as a )art of study#
Then after concentration is $i(en to the )ri%ary research# It inc*udes the ana*ysis
and resu*ts of sur(ey 1hich 1as focuses on consu%erAs 'eha(ior to1ards sa*es
)ro%otion ca%)ai$n# The sur(ey 1as conducted 1ith the he*) of structured
0uestionnaire#
t *ast conc*usion of re)ort& findin$s and su$$estions 1as $i(en 'ased on study
of secondary source as 1e** as )ri%ary research#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 6/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
INDE6
S%.
No.
TOPICS P#2
No.
. R"#%*+ M'+o,olo25 o! '+ "',5
. I'%o,*'o -
9. I'%o,*'o 'o '+ 'o$* /,
:. S#l" $%o&o'o "'%#'2" !@
;. S1OT A#l5"" !
<. D#'# A#l5"" o! '+ "%35 6,
7. F,2" o! '+ %$o%' /
8. R*o&&,#'o" 6
=. L&'#'o"
0. E&%22 T%," . Co*l"o
. B>lo2%#$+5 -
9. A4%/ ?"'o#%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 7/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
RESEARCH METHODOLOG@
R"#%*+ O>-*'3"/
/# To study consu%er )references 1ith res)ect to sa*es )ro%otion in <MCG sector#
!# To e;a%ine tradeoffs& re*ati(e i%)ortance of different attri'utes 1hi*eres)ondin$ to a sa*es )ro%otion offer#
6# To study the effect of sa*es )ro%otions in <MCG sector es)# in soa)s anddeter$ent industry#
@# To study consu%er 'eha(ior in )urchase of soa)s and deter$ent
P%o,*' *#'2o%" ,% "',5
DETERGENTS: >ashin$ Po1der for C*othes
TOILETERIES Soa)s
R"#%*+ D"2
Research desi$n se*ected for this )ro+ect is Descri)ti(e#
D#'# *oll*'o M'+o,/
(#) P%&#%5 D#'# Coll*'o M'+o,/
Sur(ey %ethod 1as used for )ri%ary data co**ection#
>e used 0uestionnaire as an instru%ent for sur(ey %ethod#
Structured 0uestionnaire#
Ty)e of 0uestionnaire: O)en ended and c*osed ended#
(>) S*o,#%5 D#'# Coll*'o &'+o,/
Reference 'oo5s#
Internet#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 8/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
S#&$l2 D'#l
/# Tar$et )o)u*ation: The )o)u*ation for this research study consists of the
residence of h%eda'ad#
!# Sa%)*in$ unit: In this study the sa%)*in$ unit is indi(idua* consu%er#
6# Sa%)*e si7e: 00 consu%ers 00 retai*ers#
@# Sa%)*in$ %ethod: The sa%)*e is se*ected 'y usin$ con(enience.
sa%)*in$ %ethod#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 9/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
I'%o,*'o
FMCG Co*$' #, D!'o/
The ter% <MCG Ffast %o(in$ consu%er $oods& a*thou$h )o)u*ar and fre0uent*y
used does not ha(e a standard definition and is $enera**y used in India to refer to
)roducts of e(eryday use# Conce)tua**y& ho1e(er& the ter% refers to re*ati(e*y fast
%o(in$ ite%s that are used direct*y 'y the consu%er# Thus& a si$nificant $a) e;ists
'et1een the $enera* use and the conce)tua* %eanin$ of the ter% <MCG#
<urther& difficu*ties cro) u) 1hen atte%)ts to de(ise a definition for <MCG# The
)ro'*e% arises 'ecause the conce)t has a retai* orientation and distin$uishes 'et1een
consu%er )roducts on the 'asis of ho1 0uic5*y they %o(e at the retai*erAs she*(es# The
%oot 0uestion therefore& is 1hat industry turnaround thresho*d shou*d 'e for the ite% to
0ua*ify as an <MCG# Shou*d the turnaround ha))en dai*y& 1ee5*y& or %onth*yH
One of the factors on 1hich the turnaround de)ends is the )urchase cyc*e#
2o1e(er& the )urchase cyc*e for the sa%e )roduct tend to (ary across )o)u*ation
se$%ents# Many *o1.inco%e househo*ds are forced to 'uy certain )roducts %ore
fre0uent*y 'ecause of *ac5 of *i0uidity and stora$e s)ace 1hi*e re*ati(e*y hi$h.inco%e
househo*ds 'uy the sa%e )roducts %ore infre0uent*y# Si%i*ar*y& the )urchase cyc*e a*so
tends to (ary 'ecause of cu*tura* factors# Most Indians& ty)ica**y& )refer fresh food
artic*es and therefore to 'uy re*ati(e*y s%a** 0uantities %ore fre0uent*y# This is in shar)
contrast 1ith 1hat ha))ens in %ost 1estern countries& 1here the )ractice of 'uyin$ and
soc5in$ foods for re*ati(e*y *on$er )eriod is %ore )re(a*ent# Thus& shou*d the in(entory
turnaround thresho*d 'e uni(ersa*& or shou*d it a**o1 for inco%e& cu*tura* and 'eha(iora*nuancesH
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 10/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
C+#%#*'%"'*" o! FMCG P%o,*'"/
•
Indi(idua* ite%s are of s%a** (a*ue# But a** <MCG )roducts )ut to$ether accountfor a si$nificant )art of the consu%ers 'ud$et#
• The consu%er 5ee)s *i%ited in(entory of these )roducts and )refers to )urchase
the% fre0uent*y& as and 1hen re0uired# Many of these )roducts are )erisha'*e#
• The consu%er s)ends *itt*e ti%e on the )urchase decision# Rare*y does he4she
*oo5 for technica* s)ecifications Fin contrast to industria* $oods# Brand
*oya*ties or reco%%endations of re*ia'*e retai*er4dea*er dri(e )urchase
decisions#
• Tria* of a ne1 )roduct i#e# 'rand s1itchin$ is often induced 'y hea(y
ad(ertise%ent& reco%%endation of the retai*er or nei$h'ors4friends#
• These )roducts cater to necessities& co%forts as 1e** as *u;uries# They %eet the
de%ands of the entire cross section of )o)u*ation# Price and inco%e e*asticity
of de%and (aries across )roducts and consu%ers#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 11/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
I'%o,*'o 'o '+ 'o$*
I'%o,*'o/
The i%)ortance of consu%er sa*es )ro%otion in the %ar5etin$ %i; of the fast
%o(in$ consu%er $oods F<MCG cate$ory throu$hout the 1or*d has increased#
Co%)anies s)end considera'*e ti%e in )*annin$ such acti(ities# 2o1e(er& in order to
enhance the effecti(eness of these acti(ities& %anufacturers shou*d understand consu%er
and retai*er inter)retations of their )ro%otiona* acti(ities# The study here )ertains to
consu%erAs )erce)tions re$ardin$ sa*es )ro%otion# So%e )ast researches ha(e su$$ested
that )ro%otion itse*f has an effect on the )ercei(ed (a*ue of the 'rand# This is 'ecause
)ro%otions )ro(ide uti*itarian 'enefits such as %onetary sa(in$s& added (a*ue& increased
0ua*ity and con(enience as 1e** as hedonic 'enefits such as entertain%ent& e;)*oration
and se*f.e;)ression#
Broad*y s)ea5in$ %ost of the co%)anies usin$ Mar5etin$ Mi; 1hich inc*udes
Price
P*ace FChanne* of Distri'ution
Product
P%o&o'o
These are the four 'asic )i**ar of %ar5etin$ %i;# Most of the %ar5etin$ strate$ies
are 'ui*t on the 'asis of these criteria#
Pro%otion is one of the i%)ortant e*e%ents of %ar5etin$ %i;# There are so %any
e*e%ents of )ro%otion such as
d(ertisin$
Direct Mar5etin$
Pu'*ic Re*ations
S#l" P%o&o'o
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
//
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 12/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Traditiona**y& sa*es Pro%otions ha(e 'een used 'y %ar5eter to increase sa*es in
the short ter%# 2o1e(er& in the *ast fe1 decades this co%%unication too* has e(o*(ed
and no1 is considered fro% a strate$ic )oint of (ie1# <or this reason& it is necessary to
rea*i7e ne1 studies in this area and study ho1 consu%ers e(a*uate sa*es )ro%otions#
Sa*es )ro%otions ha(e $ro1n in 'oth i%)ortance and fre0uency o(er the )ast
fe1 decades# *thou$h an accurate esti%ate for tota* sa*es )ro%otions e;)enditures does
not e;ist& 1e can 'e sure that the trend is u)#
Sa*es )ro%otion ser(es three essentia* ro*es: It infor%s& )ersuades and re%inds
)ros)ecti(e custo%ers a'out a co%)any and its )roducts# E(en the %ost usefu* )roduct
or 'rand 1i** 'e a fai*ure if no one 5no1s that it is a(ai*a'*e# s 1e 5no1& channe*s of
distri'ution ta5e %ore ti%e in creatin$ a1areness 'ecause a )roduct has to )ass throu$h
%any hands 'et1een a )roducer and consu%ers#
Therefore& a )roducer has to infor% channe* %e%'ers as 1e** as u*ti%ate
consu%ers a'out the attri'utes and a(ai*a'i*ity of his )roducts# The second )ur)ose of
)ro%otion is )ersuasion# The cut throat co%)etition a%on$ different )roducts )uts
tre%endous )ressure on their %anufacturers and they are co%)e**ed to underta5e sa*es
)ro%otion acti(ities# The third )ur)ose of )ro%otion is re%indin$ consu%ers a'out
)roducts a(ai*a'i*ity and its )otentia* to satisfy their needs#
<ro% these e*e%ents Sa*es Pro%otion is the e*e%ent 1hich is in the focus of this
)ro+ect# <urther Sa*es Pro%otion is 0uite 'road ter% it inc*udes
Co"&% O%', S#l" P%o&o'o
T%#, O%', S#l" P%o&o'o
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 13/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/6
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 14/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Co"&% O%', S#l" P%o&o'o
Consu%er Oriented Sa*es Pro%otion is the %ain to)ic of this )ro+ect# 2ere
e%)hasi7e is $i(en to %oti(ate consu%er to increase sa*es# Consu%er Oriented Sa*es
Pro%otion inc*udes Sa%)*in$& Cou)onin$& Pre%iu%s& Contest& Refunds& Re'ates& BonusPac5As& Price.off& E(ent %ar5etin$ etc#
D!'o/
<or the )ur)ose of this study& fo**o1in$ definitions of sa*es )ro%otion 1ere 5e)t in
%ind#
9ot*er defines sa*es )ro%otion as: 8Sa*es )ro%otion consists of a di(erse co**ection of
incenti(e too*s& %ost*y short.ter% desi$ned to sti%u*ate 0uic5er and4or $reater )urchase
of )articu*ar )roducts4ser(ices 'y consu%ers or the trade#
Ro$er Stran$ has $i(en a %ore si%)*istic definition i#e# 8sa*es )ro%otions are short.ter%
incenti(es to encoura$e )urchase or sa*es of a )roduct or ser(ice#
2ence& any for%s of incenti(es F)rice cut or (a*ue added nature offered for short )eriod
either to trade or consu%ers are considered as sa*es )ro%otion acti(ities#
M#%'%" "" *o"&% o%', "#l" $%o&o'o 'ool" !o% '+ !ollo2 %#"o"/
• To increase short ter% sa*es
• To induce tria*
•To reduce in(entory
• To esta'*ish a 'rand na%e
• To %a5e cross se**in$
• To co)e u) 1ith co%)etition
• To a(oid ad(ertisin$ c*utter
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 15/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Tool" o! Co"&% O%', S#l" P%o&o'o/
There are so %any too*s or techni0ue a(ai*a'*e to the %ar5eters for achie(in$ o'+ecti(e
of sa*es )ro%otion# These too*s shou*d 'e used considerin$ a** other factors affectin$
such as cost& ti%e& co%)etitors& a(ai*a'i*ity of $oods etc# These too*s are as under
/# Cou)ons
!# Price.Off
6# <ree'ies
@# Scratch Cards
# 3uc5y Dra1s
# Bund*in$ Offer
# E;tra Kuantity
3etAs ha(e *oo5 at each too*
. Co$o"/
Cou)on is the o*dest and %ost 1ide*y used 1ay of sa*es )ro%otion# Cou)ons
ha(e 'een used since /-# It is %ost*y used 'y )ac5a$ed $oods# It is 1orth1hi*e to use
cou)on as a )ro%otion too* 'ecause data sho1s that %ar5et for )ac5a$ed $oods
increased fro% / 'i**ion in /- to 6/, 'i**ion in /@# To 'oost u) the sa*es not on*y
%anufacturer 'ut retai*ers )ersona**y can a*so used# cou)on *eads to )rice reductions
so as to encoura$e )rice sensiti(e custo%ers# "on users can try a )roduct 1hich %ay*eads to re$u*ar sa*es#
. P%*o!!/
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 16/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
)rice.off is si%)*y a reduction in the )rice of the )roduct to increase sa*es and
is (ery often used 1hen introduction a ne1 )roduct# reduction in )rice a*1ays
increases sa*es 'ut the use of this techni0ue shou*d 'e carefu**y considered in the current
%ar5et situation#
Price.off is the %ost )referred sa*es )ro%otion techni0ue 'ecause consu%ers
res)onse (ery )ositi(e*y to this sche%e# "ot on*y that 'ut it a*so cause *ar$e increase in
sa*es (o*u%e# Price.off reductions are ty)ica**y offered ti$ht on the )ac5a$e throu$h
s)ecia**y %ar5ed )rice )ac5s# E#$# 9rac5 Jac5 offers 6,L Price.off#
9. F%>"
<ree'ies are a )o)u*ar for% of %odern %ar5etin$ and are so%e of the 'est thin$s
a'out the internet# The definition of free'ies is )roducts or ser(ices $i(en a1ay for free
at no cost to the consu%er# >e** thatAs the definition 1e ca%e u) 1ith# I a% a 'ar$ain
free'ie sho))er& )retty %uch $oin$ for any free )roduct and infor%in$ e(eryone a'out
it#
t different ti%es& 'i$ and s%a** co%)anies often $i(e a1ay )ri7es and %oney
1hich is too $ood to 'e true# Often itAs in the )ursuit of %ore custo%ers or a *ar$er fan 'ase and it often 1or5s#
:. S*%#'*+ C#%,"
scratch card Fa*so ca**ed a scratch off& scratch tic5et& scratcher& scratchie&
scratch.it& scratch $a%e& scratch.and.1in or instant $a%e is a s%a** to5en& usua**y %ade
of card'oard& 1here one or %ore areas contain concea*ed infor%ation: they are co(ered
'y a su'stance that cannot 'e seen throu$h& 'ut can 'e scratched off#
;. B,l2 O!!%"
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 17/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Product 'und*in$ is a %ar5etin$ strate$y that in(o*(es offerin$ se(era* )roducts
for sa*e as one co%'ined )roduct# This strate$y is (ery co%%on in the soft1are 'usiness
Ffor e;a%)*e: 'und*e a 1ord )rocessor & a s)readsheet& and a data'ase into a sin$*e office
suite& in the ca'*e te*e(ision industry Ffor e;a%)*e& 'asic ca'*e in the United States
$enera**y offers %any channe*s at one )rice& and in the fast food industry in 1hich
%u*ti)*e ite%s are co%'ined into a co%)*ete %ea*# 'und*e of )roducts is so%eti%es
referred to as a )ac5a$e dea* or a co%)i*ation or an antho*o$y#
F#*'o%" I!l*2 Co"&% O%', "#l" $%o&o'o/
Main*y four factors shou*d 'e ta5en into account 1hi*e deter%inin$ the sa*es
)ro%otion )ro$ra%#
Tar$et %ar5et
"ature of )roduct
Sta$e of )roduct *ife cyc*e
Bud$et a(ai*a'*e for )ro%otion
. T#%2' M#%'/
>hi*e doin$ sa*es )ro%otion& %ar5eter %ust 5no1 1ho their tar$et %ar5et is?
other1ise there is no use of a** effort 'ecause it *eads to no 1here# tar$et %ar5et can
'e in any of the sta$es of 'uyin$ hierarchy i#e# a1areness& 5no1*ed$e& *i5in$&
)references& con(iction and )urchase# Each sta$e defines a )ossi'*e $oa* of )ro%otion#
. N#'% o! '+ $%o,*'/
There are (arious )roduct attri'utes 1hich inf*uence sa*es )ro%otiona* strate$y#
>hen the unit )rice is *o1 the %anufacturer as 1e** as the custo%er has *o1 ris5 'ut he
can $et the 'enefit of %ass %ar5etin$# Therefore& %ass %ar5etin$ re0uires %ass sa*es
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 18/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
)ro%otion sche%es# Sa*es )ro%otion sche%e differ for )roducts *i5e its dura'i*ity&
)erisha'*e $oods etc#
9. S'#2 o! $%o,*' L! C5*l/
Sa*es )ro%otion strate$ies are inf*uenced 'y the *ife cyc*e of a )roduct# >hen a
ne1 )roduct introduced& )ros)ecti(e 'uyers %ust 'e infor%ed a'out its e;istence and its
'enefits and %idd*e%en %ust 'e con(inced to stoc5 it# 3ater& if a )roduct 'eco%es
successfu*& co%)etition intensifies and %ore e%)hasis is )*aced on sa*es )ro%otion to
increase its sa*es#
:. B,2' A3#l#>l !o% P%o&o'o/
The funds a(ai*a'*e for )ro%otion are the u*ti%ate deter%inant of the
)ro%otiona* )ro$ra%%e# 'usiness 1ith a%)*e funds can %a5e %ore effecti(e use of
sa*es )ro%otion )ro$ra%%e than a fir% 1ith *i%ited financia* resources# The 'ud$et for
sa*es )ro%otion can 'e )re)ared 'y the fo**o1in$ %ethods
Percenta$e of Sa*es
<i;ed funds a(ai*a'*e for sa*es )ro%otion
<o**o1in$ the co%)etition& and
Bud$etin$ 'y o'+ecti(e#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/-
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 19/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
S#l" P%o&o'o !%o& '+ Co"&%" $o' o! 3
1ll2"" 'o >5 o "#l" $%o&o'o o!!%
Si;ty )er cent of the sa%)*e did not sho1 1i**in$ness to 'uy a 'rand due to )ro%otion 1hi*e 6,L sho1ed 1i**in$ness and /,L 1ere not sure# This indicates that
1hen 6,L sho1ed 1i**in$ness and /,L consu%ers 1ho 1ere not sure& these $rou)s
%i$ht 'e *ured throu$h inno(ati(e and *ucrati(e sa*es )ro%otion offer#
A>l'5 'o ,* '%#l
<orty )er cent of the res)ondents had said that sa*es )ro%otion had the a'i*ity to
induce tria* 1hich reinforces the a'o(e inference#
Lo2'%& &$#*'
In order to understand a'i*ity of the )ro%otions to increase *on$.ter% sa*es&
res)ondents 1ere as5ed a'out continuity of )urchase of a 'rand after the 1ithdra1a* of
)ro%otion# Ei$hty )er cent of the res)ondents indicated that they 1ou*d not continue#
But !,L said they 1ou*d# Thus& it cou*d 'e inferred that )ro%otions in this cate$ory
F*o1 in(o*(e%ent )roducts %i$ht encoura$e tria* and 'rand s1itchin$ 'ut not *on$ ter%
*oya*ty#
P%!%* o! S*+&":
Price off 1as the %ost )referred ty)e of sche%e# Ma;i%u% custo%ersA ran5ed
)rice.offs as nu%'er one or t1o#
P%*3, ?#l'5:
Ma+ority of res)ondents had a )erce)tion that the 0ua*ity of the )ro%oted 'rands
re%ained the sa%e durin$ )ro%otion& 1hi*e so%e of the% fe*t that it 1as inferior than
'efore# It can 'e inferred that )ro%otions 1ere not *eadin$ to ne$ati(e 'rand 0ua*ity
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 20/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
)erce)tions# It is found that so%e custo%er stron$*y )referred to 'uy their re$u*ar 'rand
and said that sa*es )ro%otion 1ou*d not 1ea5en their *oya*ty to1ards the 'rand#
P%*$'o" %2#%,2 ,%l52 *o&$#5 &o'3#'o"
On ta))in$ )erce)tionsA re$ardin$ under*yin$ co%)any %oti(ations for sa*es
)ro%otion& 8to increase sa*es 1as ran5ed hi$hest fo**o1ed 'y 8to attract s1itchers and
8to se** e;cess stoc5s# >hi*e )ro(idin$ (a*ue to custo%ers and
8To reinforce co%)any i%a$e 1ere ran5ed *o1est# This indicates that consu%ers
'e*ie(ed that co%)anies 1ere underta5in$ such acti(ities on*y for their o1n 'enefit and
not for the 'enefit of consu%ers#
<indin$s fro% retai*er and consu%er )erce)tion studies& it is e(ident that there
1as a %atchin$ of )erce)tions re$ardin$ nature of sche%e F)rice offs as %ost )referred
ty)e of sche%e %entioned 'y consu%ers and retai*ersA )erce)tions a'out consu%er
)references# Since retai*ers o'ser(e consu%ers in store 'eha(ior 1ere fre0uent*y and
direct*y& their )erce)tions re$ardin$ )ro(idin$ consu%er 'eha(ior are *i5e*y to 'e
accurate# Such in)uts fro% the retai*ers 1ou*d 'e usefu* to co%)anies#
The retai*ers had the )erce)tion that those sche%es 1hich 1ere announced throu$h %ass
%edia had 'etter res)onse# This 1as reinforced 'y the consu%er sur(ey 1hich sho1ed
that reca** in case of hea(i*y )ro%oted sche%es on T= 1as found to 'e (ery hi$h#
Retai*ersA )rediction of co%)aniesA %oti(ation for offerin$ sa*es )ro%otion 1ere
%atchin$ 1ith the consu%er )erce)tion re$ardin$ the sa%e# Thus 'oth (ie1ed that
co%)anies 1ere usin$ sa*es )ro%otion acti(ities %ain*y to increase short ter% sa*es or
encoura$e s1itchin$ or se**in$ e;cess stoc5 and not rea**y to $i(e (a*ue 'enefit or
enhance4reinforce 'rand4co%)any i%a$e#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 21/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
T%#, O%', S#l" P%o&o'o
Trade Oriented Sa*es Pro%otion ai%ed to %oti(ate channe* %e%'er of the
co%)any and to encoura$e the% to )ush co%)anyAs )roduct# Trade Oriented Sa*es
Pro%otion inc*udes dea*er contest and incenti(es& trade a**o1ances# Point.of.)urchasedis)*ays& sa*es trainin$ )ro$ra%s& trade sho1s& coo)erati(e ad(ertisin$& and other
)ro$ra%s desi$ned to %oti(ate distri'utors and retai*ers to carry a )roduct and %a5e an
e;tra effort to )ush it to their custo%ers
S#l" $%o&o'o !%o& '+ %'#l%" $o' o! 3/
P%*$'o" o S*+& P%!%*
It 1as found that retai*er )ercei(ed )rice offs as a 'etter for% of sa*es )ro%otion
acti(ity# Price offs in their o)inion had re*ati(e*y a $reater i%)act co%)ared to any other
for% of sa*es )ro%otion acti(ity *i5e Bonus )ac5s& Pre%iu%& Contests etc# Retai*ers
)referred )rice offs the %ost& then 'onus )ac5& )re%iu%& contests& in order of
i%)ortance#
P%*$'o" #>o' B52 Rol"
Retai*ers (ie1ed that the )erson 1ho ca%e to the sho) F1ho %ay 'e a %aid& son&
dau$hter& dau$hter.in.*a1 and chi*d 1as the decider of a toi*et soa) 'rand and not the
Inco%e )ro(ider Fe#$# head of the fa%i*y# It cou*d 'e inferred that (isi'i*ity of
infor%ation a'out the sa*es )ro%otion acti(ity at the )oint of )urchase cou*d resu*t into
the )urchase of a )ro%oted 'rand#
P%*$'o" #>o' '+% %ol ,*"o
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 22/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Retai*er had re*ati(e*y (ery *o1 inf*uence in affectin$ choice# It cou*d 'e inferred
that (isi'i*ity and a1areness a'out the sche%e 1ere the critica* success factors so that
)u** cou*d 'e created#
P%*$'o" #>o' R"$o" 'o S#l" P%o&o'o O!!%"
They 'e*ie(ed that youn$er a$e.$rou)s 1ere %ore e;)eri%enta* in nature&
a%ena'*e to tryin$ ne1 'rands& and sou$ht4*oo5ed for or as5ed 1hether there 1ere any
sa*es )ro%otion sche%es runnin$ on any toi*et soa) at the ti%e of )urchase#
P%*$'o" #>o' Co&&*#'o" o! S#l" P%o&o'o S*+&"
Retai*ers )ercei(ed that ro*e of 1ord of %outh and te*e(ision ad(ertisin$ )*ayed
an i%)ortant )art in )ro(idin$ infor%ation in)uts to consu%ers re$ardin$ sa*es
)ro%otion acti(ities#
V#%#'o" I!o%&#'o Flo
S%a**er Fnon.su)er%ar5et& s%a** for%at store retai*ers recei(ed re*ati(e*y *ess
su))ort co%)ared to su)er%ar5ets in ter%s of ser(icin$& %ar$ins& infor%ation a'out
sa*es )ro%otion acti(ities fro% the dea*ers# Many a ti%es s%a** retai*ers 1ere on*y
infor%ed (er'a**y a'out sa*es )ro%otion sche%es 'y the dea*er sa*es%en durin$ the
schedu*ed 1ee5*y (isits#
D#l%R'#l% D5#&*"
t the ti%e of sa*es )ro%otion acti(ities& dea*ers had tendency to )ush un1anted
stoc5s onto the s%a**er retai*ers# In fact these retai*ers )referred to stoc5 (ariety of
'rands and 1anted )ay%ent for she*f and 1indo1 dis)*ay to increase traffic into their
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 23/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
store# 2o1e(er& su)er%ar5ets and 'i$ retai*ers 1ere )a%)ered and $i(en s)ecia*
ser(ices and $i(en 'etter %ar$ins and 'etter a**o1ances#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!6
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 24/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
M#%2"
It 1as found that in sa*es )ro%otion sche%es %ar$ins (aried fro% to/L
de)endin$ of the si7e of the retai* out*et& 'ar$ainin$ )o1er of a retai*er& 0uantity ordered
'y hi% etc# Most*y %ar$ins 1ere *in5ed to si7e of the (o*u%es that 1ere ordered#
P%*$'o" #>o' '%&" #, *o,'o"
Retai*ers 1ere not found to 'e ha))y 1ith sa*es )ro%otion sche%es 1here their
%ar$ins 1ere cut on the )rete;t of +ust fast %o(e%ent of in(entory of the 'rand 'ein$
)ro%oted# *so if additiona* incenti(e 1as offered it 1as su'+ect to %ini%u%
)erfor%ance re0uire%ent#
N#'% o! POP
Retai*ers indicated that %ost of the POP FPoint of Purchase %ateria*s 1ere
%eant for 'rand ad(ertise%ent and not for $i(in$ infor%ation re$ardin$ the sche%es#
Thus it cou*d 'e inferred that co%)anyAs fo**o1 u) 1as not ade0uate#
S%3*2 ,%2 ,%#'o o! S*+&
In stoc5.out situation durin$ the runnin$ of the sa*es )ro%otion sche%es& s%a**er
retai*ers had to 1ait for re)*enish%ent of stoc5s ti** the ne;t schedu*ed 1ee5*y (isit 'y
the dea*er sa*es%an 'ut 'i$ retai*ers 1ere ser(iced on te*e)honic re0uest for
re)*enish%ent of stoc5s# This c*ear*y indicated the dis)arity in treat%ent#
P%o>l& o! l!'o3%
*efto(er stoc5 at the end of any sche%e 1as re0uired to 'e so*d 'y the retai*ers
'efore they ordered fresh stoc5s# In case of 'onus )ac5s sche%e& *efto(er stoc5 1as
often dis%ant*ed Fcut o)en 'uy one $et one free and so*d the% indi(idua**y as a re$u*ar
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 25/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
soa)# This a))roach of the co%)any *eads to %isa))ro)riation 1hich in turn cou*d resu*t
in ad(erse 'rand i%a$e#
G!'" !o% R'#l% &o'3#'o
Co%)anies at ti%es 1ere re1ardin$ retai*ers 'y $i(in$ free $ifts *i5e ther%os
f*as5s or c*oc5s if they so*d %ore than certain 0uantity in a $i(en )eriod# Co%)anies
1ere %a5in$ a ha*f.hearted effort to %oti(ate retai*ers#
P%*$'o" #>o' &#"" &,# #o*&'"
Retai*ers (ie1ed that 1hene(er sa*es )ro%otion sche%e 1as announced on T=&
it created )u** and they 1ere %ore than 1i**in$ to stoc5 such 'rands# <or e;a%)*e
Medi%i; and Detto* contest 1as not ad(ertised on T=& hence there 1as (ery *itt*e
a1areness *eadin$ to unso*d stoc5 ti** %onths# >hi*e 3u; Go*d Star 1hich 1as hea(i*y
)ro%oted on T#=# is reca**ed e(en today#
Po"' P%o&o'o B+#3o%
Retai*ers o'ser(ed that in %ost cases sa*es )ro%otion sche%e on a 'rand %i$ht
encoura$e a 'uyer to s1itch a 'rand te%)orari*y 'ut he 1ou*d re(ert 'ac5 to ori$ina*
'rand after )ro%otion#
H#,l2 P%o>l&"
Many a ti%eAs retai*ers had to hand*e (arious sa*es )ro%otion offers si%u*taneous*y in a
cate$ory and a*so across cate$ories and there 1as no for%a* co%%unication )*annin$
either fro% the dea*er or the co%)any# Re%e%'erin$ each offer and hand*in$ 1as a
)ro'*e% es)ecia**y for a s%a** retai*er 1hich 1as often an as one.%an sho1#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 26/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
1+5 ,o S#l" $%o&o'o "*+&" #!!*' "#l"
There are three %echanis%s 'ehind these facts# It is Purchase 0uantity& Brand
s1itchin$ and Cate$ory e;)ansion#
F%"' consu%er can increase the 0uantity they 'uy +ust 'ecause the )roduct is on sa*e#
S*o, consu%ers are inducin$ to )urchase another 'rand different fro% the one they
1ou*d ha(e )urchased 1hen there is no )ro%otiona* incenti(e#
F#ll5 consu%erAs tota* consu%)tion of the )roduct cate$ory is increased 'y the
)ro%otion# 2o1e(er& in the *on$ ter% this )ositi(e effect %ay 'e di*uted 'ecause a
)ro%otiona* ca%)ai$n has no )er%anent effect in the sa*es of the fir%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 27/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
S#l" P%o&o'o S'%#'25
Sa*es are the *ife'*ood of a 'usiness& 1ithout sa*es there 1ou*d 'e no 'usiness in
the first )*ace? therefore it is (ery i%)ortant that if a 'usiness 1ants to succeed& it shou*d
ha(e a sa*es )ro%otion strate$y in %ind# The )ri%ary o'+ecti(e of a sa*es )ro%otion is
to i%)ro(e a co%)anyAs sa*es 'y )redictin$ and %odifyin$ your tar$et custo%erAs
)urchasin$ 'eha(ior and )atterns#
Sa*es )ro%otion is (ery i%)ortant as it not on*y he*)s to 'oost sa*es 'ut it a*so
he*)s a 'usiness to dra1 ne1 custo%ers 1hi*e at the sa%e ti%e retainin$ o*der ones#
There are a (ariety of sa*es )ro%otiona* strate$ies that a 'usiness can use to increase
their sa*es& ho1e(er it is i%)ortant that 1e first understand 1hat a sa*es )ro%otion
strate$y actua**y is and 1hy it is so i%)ortant#
sa*es )ro%otion strate$y is an acti(ity that is desi$ned to he*) 'oost the sa*es
of a )roduct or ser(ice# This can 'e done throu$h an ad(ertisin$ ca%)ai$n& )u'*ic
re*ation acti(ities& a free sa%)*in$ ca%)ai$n& a free $ift ca%)ai$n& a tradin$ sta%)s
ca%)ai$n& throu$h de%onstrations and e;hi'itions& throu$h )ri7e $i(in$ co%)etitions&
throu$h te%)orary )rice cuts& and throu$h door.to.door sa*es& te*e%ar5etin$& )ersona*
sa*es *etters& and e%ai*s#
The i%)ortance of a sa*es )ro%otion strate$y cannot 'e underesti%ated# This is
'ecause a sa*es )ro%otion strate$y is i%)ortant to a 'usiness 'oostin$ its sa*es#
>hen de(e*o)in$ a sa*es )ro%otion strate$y for your 'usiness& it is i%)ortant
that you 5ee) the fo**o1in$ )oints in %ind#
• Consu%er attitudes and 'uyin$ )atterns
• Your 'rand strate$y
• Your co%)etiti(e strate$y
• Your ad(ertisin$ strate$y
• Other e;terna* factors that can inf*uence )roducts a(ai*a'i*ity and )ricin$#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 28/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
T+% #% '+% '5$" o! "#l" $%o&o'o "'%#'2"/
• )ush strate$y
• )u** strate$y or
• co%'ination of the t1o
A P"+ S'%#'25/
N)ushA sa*es )ro%otion strate$y in(o*(es N)ushin$A distri'utors and retai*ers to
se** your )roducts and ser(ices to the consu%er 'y offerin$ (arious 5inds of )ro%otions
and )ersona* se**in$ efforts# >hat ha))ens here is that a co%)any )ro%otes their
)roduct4ser(ices to a rese**er 1ho in turn )ro%otes it to another rese**er or to the
consu%er# The 'asic o'+ecti(e of this strate$y is to )ersuade retai*ers& 1ho*esa*ers and
distri'utors to carry your 'rand& $i(e it she*f s)ace& )ro%ote it 'y ad(ertisin$& and
u*ti%ate*y N)ushA it for1ard to the consu%er# Ty)ica* )ush sa*es )ro%otion strate$ies
inc*ude? 'uy.'ac5 $uarantees& free tria*s& contests& discounts& and s)ecia*ty ad(ertisin$
ite%s#
A Pll S'%#'25/
N)u**A sa*es )ro%otion strate$y focuses %ore on the consu%er instead of the
rese**er or distri'utor# This strate$y in(o*(es $ettin$ the consu%er to N)u**A or )urchase
the )roduct4ser(ices direct*y fro% the co%)any itse*f# This strate$y tar$ets its %ar5etin$
efforts direct*y on the consu%ers 1ith the ho)e that it 1i** sti%u*ate interest and de%and
for the )roduct# This )u** strate$y is often used 1hen distri'utors are re*uctant to carry or
distri'ute a )roduct# Ty)ica* )u** sa*es )ro%otion strate$ies inc*ude? sa%)*es& cou)ons&
cash refunds or re'ates& *oya*ty )ro$ra%s and re1ards& contests& s1ee)sta5es& $a%es&
and )oint.of.)urchase dis)*ays#
A Co&>#'o o! To S'%#'2"/
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!-
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 29/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Nco%'inationA sa*es )ro%otion strate$y is +ust that? it is a co%'ination of a
)ush and a )u** strate$y# It focuses 'oth on the distri'utor as 1e** as the consu%ers&
tar$etin$ 'oth )arties direct*y# It offers consu%er incenti(es side 'y side 1ith dea*er
discounts#
T+ S+o%' '%& I&$#*' o! P%o&o'o"/
3etAs ha(e *oo5 at the i%)act of )ro%otions on )urchase 'eha(ior durin$ the
)ro%otiona* )eriod i#e# the 1ee5 or the %onth 1hen the )ro%otion 1as 'ein$ run# The
%a+ority of the e%)irica* studies ha(e focused on the i%)act of )ro%otions in the short
ter%# The 5ey findin$s across the studies are discussed 'e*o1#
T&$o%#%5 $%* %,*'o" ($%* o!!) ">"'#'#ll5 *%#" "#l"/
There is a%)*e e(idence to sho1 that )ro%otions *ead to dra%atic increases in sa*es of
)ro%oted 'rand in the short ter%# Studies ha(e consistent*y re)orted hi$h sa*es effects
and hi$h )rice e*asticity of 'rands 1hich are on )ro%otion# The econo%ic rationa*e for
the )ro%otiona* res)onse is c*ear te%)orary )rice cuts increase the (a*ue of the
)roduct to the consu%er and it *eads to i%%ediate action# Sa*es 'oost can 'e 0uantified
on the 'asis of 'rand s1itchin$& )ri%ary de%and e;)ansion and consu%er stoc5)i*in$
durin$ a )ro%otion#
S#l" P%o&o'o l#," 'o >%#, ">"'''o '+ '+ $%o,*' *#'2o%5/
The sa*es N'u%)A durin$ the )ro%otiona* )eriod into sa*es due to 'rand s1itchin$&
)urchase ti%e acce*eration and stoc5)i*in$# Studies on 'rand s1itchin$ ha(e sho1n that
'rand s1itchin$ effects 1ithin a cate$ory are asy%%etric such that )ro%otions on hi$her
0ua*ity 'rands i%)acts 1ea5er 'rands dis)ro)ortionate*y# Durin$ a )ro%otion& hi$her
0ua*ity 'rands induce a *ar$e nu%'er of consu%ers to s1itch to the% as co%)ared to
*o1er 0ua*ity 'rands# One e;)*anation ad(anced for this findin$ 'y researchers is that
*ar$e share 'rands ha(e hi$her 'rand e0uity and attract s1itchers %ore than *o1 share
'rands#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 30/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 31/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
S#l" P%o&o'o l#," 'o $%*+#" #**l%#'o"'o*$l2 !!*'"/
In res)onse to a )ro%otion& consu%ers %ay 'uy %ore 0uantity of the )roduct
cate$ory or 'uy at an ear*ier ti%e than usua* F)urchase acce*eration effect# If consu%ers
'uy e;tra 0uantity durin$ a )ro%otion or ear*ier than nor%a*& then they are not in the
%ar5et to 'uy )roducts once the )ro%otion is o(er# Thus )urchase acce*eration is
de%onstrated throu$h
*en$thenin$ of inter )urchase ti%es after a )ro%otion# Purchase acce*eration 1as %ore
*i5e*y to 'e e;hi'ited in increased )urchase 0uantity than in shortened inter )urchase
ti%es# Resu*ts sho1ed that consu%ers %ost*y %ade u) for the *ar$e 0uantity )urchased
'y 1aitin$ *on$er unti* )urchasin$ a$ain# Resu*ts indicated that hea(y users tended to
acce*erate )urchases %ore than *i$ht users# There 1as ne$*i$i'*e difference in the
acce*eration )ro)ensities of hi$h (ersus *o1 inco%e $rou)s#
S#l" P%o&o'o l#," 'o $%&#%5 ,&#, 4$#"o !o% # *#'2o%5/
>hi*e it 1as traditiona**y assu%ed that consu%)tion rates re%ain fi;ed durin$
and after a )ro%otion& 'ut fro% this )ro+ect I ca%e to 5no1 that )ro%otions a*so ha(e a
)ri%ary de%and e;)ansion effect# >hen a )ri%ary de%and e;)ansion occurs&
)ro%otion induced increase in )urchase 0uantities does not si$nificant*y e;tend the ti%e
ti** the ne;t )urchase in the cate$ory occurs& thus indicatin$ that there has 'een an
increase in consu%)tion )ro%otions induced consu%ers to 'uy %ore and consu%e
faster# It is found that )ro%otion induced in(entory te%)orari*y increased consu%)tion
rates 1ithin the cate$ory e#$# in cate$ories such as 'acon& sa*ted snac5s& soft drin5s and
yo$urt e;hi'ited )ri%ary de%and e;)ansions as a resu*t of )ro%otion 1hi*e 'athroo%
tissue& coffee& deter$ent and )a)er to1e*s e;hi'ited stoc5)i*in$ on*y#
S#l" P%o&o'o" #!!*' "#l" *o&$l&'#%5 #, *o&$''3 *#'2o%"/
<ro% this )ro+ect it is found that )ro%otion not on*y increases sa*es of %ain
)roduct 'ut it a*so *ead to increase in sa*es of co%)*e%entary cate$ories# <ound stron$
cross re*ationshi)s 'et1een )roducts of the )ro%oted )roduct cate$ory indicatin$ 'rand
su'stitution 'eha(ior# They stated that retai* )rice )ro%otions 1or5 as a for% of i%)*icit
)rice 'und*in$ 1here'y the consu%er sur)*us is transferred fro% the )ro%oted ite% to
non )ro%oted ite%s# *so found that retai* )rice )ro%otions create si$nificant
co%)*e%entary and su'stitution effects 1ithin the store#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 32/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
T+ Lo2 '%& I&$#*' o! P%o&o'o"/
Strate$ies are 'ui*ds to rea) the 'enefits for *on$er )eriod of ti%e? sa%e is true in sa*es
)ro%otion strate$ies# 3et us see i%)act of )ro%otions effort and study the i%)act o(er a
*on$er ti%e )eriod e#$# @. %onths or e(en a fe1 years after a sa*es )ro%otionca%)ai$n#
The resu*t sho1ed that consu%er )ro%otions for *eadin$ 'rands of esta'*ished )ac5a$ed
)roducts had no after.effects on the 'randAs sa*es or re)eat 'uyin$ *oya*ty# The e;tra
sa*es of a 'rand 1hi*e )ro%oted ca%e (irtua**y a** fro% the 'randAs e;istin$ *on$.ter%
custo%er 'ase for 1hich the e;)erience of 'uyin$ the )ro%oted 'rand 1as nothin$ ne1#
It is found that a*thou$h the short ter% effects of )ro%otions are stron$? these
)ro%otions rare*y e;hi'it *on$ ter% effects# It is o'ser(ed that each sa*es co%)onent
$enera**y *ac5ed a )er%anent effect and the effect of )ro%otion 1as short *i(ed and
increase in )ro%otions affected consu%ersA stoc5)i*in$ decisions in the *on$ run# They
found that the co%'ined short and *on$.ter% e*asticity of )ro%otions 1as 7ero# The
stoc5)i*in$ induced 'y a )ro%otion 1as essentia**y offset 'y reduced de%and in the
*on$ ter%# Thus increased sa*es 1ere %ore a resu*t of sa*es 'orro1ed fro% the future
than increased consu%)tion
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 33/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
S1OT A#l5"" o! FMCG S*'o%
Strengths:
•
>e**.esta'*ished distri'ution net1or5 e;tendin$ to rura* areas#• Stron$ 'rands in the <MCG sector#
• 3o1 cost o)erations#
Weaknesses:
• 3o1 e;)ort *e(e*s#
• S%a**.sca*e sector reser(ations *i%it a'i*ity to in(est in techno*o$y and achie(e
econo%ies of sca*e#
• Se(era* %e.tooAA )roducts#
Opportunities:
• 3ar$e do%estic %ar5et#
• E;)ort )otentia*#
• Increasin$ inco%e *e(e*s 1i** resu*t in faster re(enue $ro1th##
Threats:
• I%)orts#
• Ta; and re$u*atory structure#
• S*o1do1n in rura* de%and#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
66
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 34/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
DT "3YSIS
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 35/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Co"&%"
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 36/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?. 1+*+ >%#, o! So#$ D'%2' ,o 5o "
B#'+2 "o#$" R"$o,'"
3u; @/
2a%% 6
3ife'uoy /@
"i%a -
Others 6@
I'%$%'#'o/
The a'o(e 0uestion has 'een for%ed to 5no1 the soa)s and deter$ents at the to)
of the %ind of the custo%ers# It sho1s those consu%ersA )urchase and use of that
)articu*ar 'rand# It 1i** he*) to the co%)any to 5no1 the %ar5et scenario and the %a+or
'rands in the %ar5et#
<or% the a'o(e resu*t it is c*ear that out of /,, custo%ers %ore than @, are consu%ers
are ha(in$ the sa%e 'rand as the i%a$e in their %ind& 1hereas others cate$ory is a*so
sho1in$ the hi$her $ra)h than these 6 %a+or )*ayersF2a%a%& 3ife'uoy& "i%a#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
B#'+2 "o#$"
0
10
20
30
40
50
Respondents 41 3 14 8 34
Lux Hamam Lifebuoy Nima Others
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 37/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 38/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
D'%2' $o,% R"$o,'"
"ir%a su))er /
>hee* /@
Surf 6
rie* /-
Others /@
I'%$%'#'o/
<or% the a'o(e resu*t it is c*ear that out of /,, custo%ers 6 are )urchasin$ the
sa%e 'rand of deter$ent& 1hereas a** others are on sa%e *e(e*#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6-
D'%2' Po,%
0
5
10
15
20
25
30
35
40
Respondents 19 14 35 18 14
Nirma sup hee! "urf #rie! Othres
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 39/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?. Do 5o #l#5" >5 '+ "#& >%#, o! So#$ D'%2'
P#%'*l#%" R"$o,'"
Yes
"o @@
I'%$%'#'o/
The o'+ecti(e 'ehind the for%ation of this 0uestion is to 5no1 the *e(e* of 'rand
*oya*ty of the consu%ers to1ards the 'rands of soa)s a(ai*a'*e in the %ar5et# The a'o(e
fi$ure sho1s that on L of the res)ondents are *oya* to their 'rands of deter$ent4soa)#
<MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is 'ecause of
%any reasons#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
B%#, lo5#l
0
10
20
30
40
50
$0
Respondents 5$ 44
%es No
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 40/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?9. 1+*+ !#*'o%" ,o 5o o%&#ll5 *o",% +l $%*+#"2 #
$#%'*l#% >%#, o! So#$ D'%2'"
F#*'o%"
B#'+2
"o#$ D'.$o,%<ra$rance / /-
Kua*ity 66 6
Co%)any i%a$e / /6
Price !6 /
Pac5a$in$ //
Others 6 6
I'%$%'#'o/
The o'+ecti(e 'ehind this 0uestion is to 5no1 the effect of inf*uencin$ factors in
the )urchase decision of the soa)s and deter$ent )o1ders# It %ain*y contains the factors
*i5e& 0ua*ity 1hich )*ayers an i%)ortant ro*e in the )urchase decision of the soa)s anddeter$ents 'oth#
If 1e *oo5 at the $ra)h of the soa)s and deter$ent it sho1s 0ua*ity as the %ost
inf*uencin$ factors in the )urchase decision 1hi*e )rice is a*so an i%)ortant for )urchase
decision#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@,
F#*'o%" #!!*'2 $%*+#" >+#3o%
0
10
20
30
40
&athin' soap 19 33 1$ 23 $ 3
(et)po*der 18 3$ 13 19 11 3
+ra'ran,e -ua!ity.ompany
ima'e/ri,e /a,a'in' Others
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 41/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?:. Do 5o *o",% $%o&o'o#l "*+&" +l $%*+#"2 #
$#%'*l#% >%#, o! So#$ D'%2'
P#%'*l#%" R"$o,'"
Yes -
"o !!
H0/ P%o&o'o#l "*+&" +#3 # "2!*#' !!*' o '+ $%*+#" o! >%#,.
H/ P%o&o'o#l "*+&" ,o o' +#3 # !!*' o '+ $%*+#" o! >%#,.
I'%$%'#'o/
ns1er of this 0uestion 1i** $i(e idea a'out the effect of )ro%otiona* sche%es in
the )urchase decisions# Such ty)es of sche%es a*1ays attract %ore and %ore consu%ers
to1ards )articu*ar 'rand# Si%u*taneous*y it $i(es idea a'out the factors 1hich
consu%ers *oo5 %ost in the )roduct 'efore they %a5e fina* decision#2ere H0 is acce)ted as the $ra)h sho1s that - out of /,, consu%ers are
*oo5in$ for such sche%es 'efore they %a5e )urchase#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@/
E!!*' o! "*+&" $%*+#" >+#3o%
0
20
40
$0
80
100
Respondents 8 22
%es No
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 42/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?;. 1+*+ o! '+ !ollo2 $%o&o'o#l "*+&" 5o +#3 *o& #*%o""
"o !#%
P%o&o'o#l "*+&" R"$o,'"
Cou)ons /
)rice off -@
<ree'ies !@
scratch cards /!
*uc5y dra1
Bund*in$ 6/
e;tra 0ty# @@
I'%$%'#'o/
The a'o(e stated 0uestion c*ear*y states the a1areness of )ro%otiona* sche%es
offered in the %ar5et 'y the %ar5eters to attract %ore and %ore consu%ers#
The resu*ts sho1 that )rice off and e;tra 0uantity is the t1o %ain offers4sche%es
1hich consu%ers ha(e ca%e across at the ti%e of )urchase# It 1i** he*) the
%anufacturers and %ar5eters too ho1 too *aunch their ne1 )roducts in the %ar5et 1ith
1hich sche%es#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@!
F#&l#%'5 o! $%o&o'o#l S*+&"
0
20
40
$0
80
100
Respondents 1$ 84 24 12 9 31 44
.oupons pri,e off +reebies s,rat,h
,ards !u,y dra* &und!in' extra ty)
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 43/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?<. 1+*+ &,& ,o 5o !l " "'#>l 'o $%o&o' '+ 3#%o"
$%o&o'o#l "*+&"
So%* R"$o,'"
Radio //
T=
"e1s)a)er @6
2oardin$ /
Others /!
I'%$%'#'o:
This 0uestion $i(es stress on the %edia ha'it of the )eo)*e and throu$h 1hich the )roduct shou*d 'e *aunch or they thin5 it 1ou*d 'e 'etter than other Medias#
The a'o(e resu*t sho1s T= as the 'est %edia to %ar5et the )roduct 1hich 1i**
co(er %a+ority of the (ie1er shi)# On the second )*ace it sho1s ne1s )a)ers as the
%edia to )ro%ote the )roduct in the %ar5et#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@6
M,&" 'o $%o&o' '+ $%o&o'o#l "*+&"
0
20
40
$0
80
Respondents 11 $9 43 15 12
Radio Ne*s)ppr Hoardin' Others
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 44/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?7. I" '+% #5 4"'2 "*+& o '+ So#$ D'%2' 5o #%
*%%'l5 "2
P#%'*l#%" R"$o,'"
Yes -
"o @!
I'%$%'#'o/
The ans1er of the res)ondents $i(e idea a'out the a1areness of the )ro%otiona*
sche%es offered in the %ar5et on their e;istin$ soa)s and deter$ents#
In this situation %ore then @,L of the )eo)*e are not a1are or ha(in$ (a$ue idea
a'out the )ro%otiona* sche%es runnin$ into the %ar5et#
It sho1s that )eo)*e are not %uch a1are of the sche%es 1hich continue in the
%ar5et it %ay 'e 'ecause of the )resent stoc5 of the )roduct at their )*ace#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@@
E4"'2 "*+& o '+ So#$ D'%2'
0
10
20
30
40
50
$0
0
Respondents 58 42
%es No
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 45/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?8. I! 5" $l#" "$*!5
P#%'*l#%" R"$o,'"
6Q/4Other
<ree 6
Discount !!
"o idea
"o ans1er 6
0
5
10
15
20
25
30
35
40
"eries1 3$ 22 $ 3$
316Other +ree (is,ount No idea No ans*er
I'%$%'#'o/
This 0uestion su))orts the a'o(e 0uestion# It en*ists the ans1ers of those
custo%ers 1ho are a1are of the )resent sche%es offered in the %ar5et and a*so those
sche%es 1hich are %ore de%anded in the %ar5et#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 46/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
The resu*t sho1s that /Q/ or !Q/ or other free sche%es are %ore de%anded and
%ore a1are sche%es in the %ar5et#
So %anufacturers %ay $o for the sa%e at the ti%e of *aunchin$ their )roduct#
?=. I! 5o 2' # #''%#*'3 $%o&o'o#l o!!% '+ $%o,*' o'+% '+
o! 5o% *+o* ll 5o "'*+ o3%
P#%'*l#%" R"$o,'"Yes 6
"o !
I'%$%'#'o/
It sho1s the *e(e* of 'rand *oya*ty a%on$ the consu%ers# The resu*t c*ear*y
sho1s that out of /,,& 6 )eo)*e are ready to s1itch o(er to another 'rand if they find
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
S'*+2 >+#3o%
0
10
20
30
4050
$0
0
80
Respondents 3 2
%es No
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 47/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
'etter )ro%otiona* sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q
0ua*ity#
Co%'ination of a** these sche%es 1i** run 'etter in the %ar5et#
?0. G3 %#"o !o% '+ "#&
P#%'*l#%" R"$o,'"
CostQ0ty /
Kua*ity /
Satisfaction !
Brand *oya*
More 'enefit4'ud$et !!
Season chan$e !
"o ans1er 6
I'%$%'#'o/
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
R#"o
0
10
20
30
40
Respondents 1$ 1 2 5 22 2 3$
.ostty -ua!ity Satisfaction &rand !oya! 7ore
&enefit6bud
"eason
,han'e No ans*er
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 48/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
'o(e 0uestion it $i(es s)ecific reasons for s1itchin$ too other )roducts# It
sho1s that e;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other
factors inf*uence consu%ers to s1itch o(er too other 'rands#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@-
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 49/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?. G3 "22"'o" #>o' !'%"'* $%o&o'o#l "*+&"
This sho1 the consu%ersA future e;)ectations fro% the 1hether co%)any to
co%e 1ith ne1 sche%es or continue 1ith )resent one# It sho1s consu%ers de%and
1hich the %anufacturers ha(e to %eet#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 50/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
R'#l%"
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 51/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?. S* +o lo2 #% 5o '+" >"""
P#%'*l#%" R"$o,'"
/. Years !@
./, Years !
More than /, years @
0
10
20
30
40
50
$0
"eries1 24 2 49
185 %ears 5810 %ears 7ore than 10 years
I'%$%'#'o/
This 0uestion $i(es idea a'out the 'enefit to the retai*ers 1ho are on the %ar5etfro% *on$ )eriod of ti%e and the 'enefits they are $ettin$ %ore as co%)are to others# It
a*so sho1s their e;)erience in the fie*d and the ser(ices they are )ro(idin$ too their ne1
and re$u*ar custo%ers# It a*so $i(es idea a'out the 'enefits they are $ainin$ for
1ho*esa*ers and direct fro% the co%)any#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 52/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 53/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?. N#& '+ So#$ D'%2' (Co&$#5) 5o "'o* !o%.
Co&$#" R"$o,'"
"ir%a
2U3 /,,
PG ,
Godre+ @
Others -
I'%$%'#'o/
It $i(es idea a'out the ca)acity of the retai*ers to stoc5 the $oods and a*so the
(ariety of the )roducts they are stoc5in$# It 1i** a*so %a5e c*ear the de%and of the $oods
in their stores and the se**in$ of the )roduct in %ar5et# Most of the retai*er stoc5s a**
ty)es of soa) and deter$ent#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
So#$ D'%2' "'o*
0
20
40
$0
80
100
120
"eries1 9$ 100 90 94 $8
Nirma HL /:; ;odre< Others
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 54/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?9. R# '+ !ollo2 !#*'o%" '+#' *"'o&%" loo !o% '+ $%*+#"
o! So#$ D'%2'. (R# !%o& 'o <)
<actors / ! 6 @
<ra$rance 6 !@ 66 !! /, -
Kua*ity !6 6 / ,
Co%)any I%a$e /- 6@ !@ // @
Price / !- !@ /
Pac5a$in$ @ ! ! 6- !@
Others / ! , - 6@
I'%$%'#'o/
It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and
a*so the 1ei$ht a$e of that factor o(er other factors#
In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand
)eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
B#'+2 So#$
0
10
20
30
40
50
$0
0
+ra'ran,e 3 24 33 22 10 8
-ua!ity $$ 23 3 1 0
.ompany =ma'e 9 18 34 24 11 4
/ri,e 1 28 24 1$ $ 9
/a,a'in' 4 5 2 2 38 24
Others 1 2 0 8 34 55
1 2 3 4 5 $
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 55/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast
)erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are not inf*uencin$ factor as )er
the res)ondents#
F#*'o%" 2 3 4 5 6
F%#2%#* // 1 41 21 3
?#l'5 @6 34 1$ $ 1 0
Co&$#5
I /6 / ! ! //
P%* ! 28 14 9 $ 1$
P#*#22 5 2 33 43 11
O'+%" , 0 0 5 32 $3
I'%$%'#'o /
It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and
a*so the 1ei$ht a$e of that factor o(er other factors#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
D'%2'
0
10
20
30
40
50
$0
0
+ra'ran,e 11 1 41 21 3
-ua!ity 43 34 1$ $ 1 0
.ompany =ma'e 13 1$ 2 2$ 11
/ri,e 2 28 14 9 $ 1$
/a,a'in' $ 5 2 33 43 11
Others 0 0 0 5 32 $3
1 2 3 4 5 $
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 56/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand
)eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er
re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast
)erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are a*so )*ay i%)ortant ro*e for
)urchasin$ deter$ent )o1der#
?:. Do 5o "22"' *"'o&%" 'o $%*+#" # *%'# >%#,
P#%'*l#% R"$o,'"
Yes 66
"o
I'%$%'#'o/
This cou*d 'e a (ery he*) 0uestion to understand the ro*e of retai*ers in the
)urchase decision#
In a'o(e $ra)h L of retai*er are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona* re*ation or that custo%er are 'rand *oya*# >hi*e 66L of the retai*er
are su$$estin$ the consu%ers to 'uy )articu*ar 'rand# There cou*d 'e %any reasons *i5e&
e;tra %ar$in& re*ations 1ith consu%ers and 0ua*ity of the )roducts 1hich retai*er %ay
$et the 'enefit of the sa%e#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
S22"'o
0
10
20
30
40
50
$0
0
80
"eries1 33 $
%es No
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 57/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?;. I! @" +5
P#%'*l#% R"$o,'"
2i$h %ar$in
Kua*ity /
Re*ationshi)
"o reason
I'%$%'#'o/
it $i(es idea a'out the reasons 1hy retai*ers su$$est the consu%ers to 'uy
)articu*ar 'rand#In a'o(e $ra)h and ta'*e it is c*ear that for %ar$in and of 'etter re*ations 1ith
consu%ers and too )ro(ide 0ua*ity )roduct to consu%ers they su$$est consu%ers too
'ye )articu*ar 'rand# <or the co%)any it %ay 'e he*)fu* to tar$et such retai*ers to se**
their )roduct in the %ar5et easi*y#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
I! 5"
0
10
20
30
40
50
$0
0
80
Respondents 9 1 $
Hi'h mar'in -ua!ity Re!ationship No reason
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 58/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?<. Do *"'o&%" loo !o% 3#%o" "*+&" '+ $%o,*'
P#%'*l#% R"$o,'"
Yes !
"o -
I'%$%'#'o/
This $i(es a rea* he*)fu* data for chec5in$ the effect of sa*es )ro%otions in the
%ar5et and ho1 serious*y consu%ers fo**o1 the )ro%otions 'efore they $o for )urchase
)articu*ar 'rand#
The a'o(e resu*t sho1s that on*y - out ,f /,, didnAt $o for the )ro%otion
other1ise a** are *oo5in$ for any ty)e of the )ro%otions on the )roduct#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-
C"'o&%" loo !o% 3#%o" "*+&"
0
20
40
$0
80
100
Respondents 92 8
%es No
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 59/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?7. I! 5" +*+ "*+&"
P%o&o'o#l
S*+&"
R"$o,'"
Cou)ons //
Price Off -!
<ree'ies 6
Scratch Cards !
3uc5y Dra1s /
Bund*in$ Offer
E;tra Kuantity
I'%$%'#'o/
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
1+*+ "*+&"
0
20
40
$0
80
100
Respondents 11 82 35 2 19 $5 9
.oupons /ri,e Off +reebies ",rat,h
.ards
Lu,y
(ra*s
&und!in'
Offer
>xtra
-uantity
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 60/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
The a'o(e stated resu*ts sho1 the de%and of (arious ty)es of )ro%otiona*
sche%es in the %ar5et 'y the consu%ers# *%ost a** ty)es of sche%es are 'ein$
de%anded 'y the consu%ers in the %ar5et 'ut there are three %a+or sche%es 1hich
consu%ers $enera**y *oo5 at the ti%e of )urchase or 'efore that#
Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the
consu%ers o(er others sche%es#
?8. 1+*+ T%#, P%o&o'o" ,o 3#%o" *o&$#" o!!%
NIRMAP%o&o'o" R"$o,'"
E;tra Mar$in @E;tra Units 6@
credit faci*ity
Gifts !@
)ro%o# E;)# -
H0/ E!!*' o! '%#, $%o&o'o" !o% #ll !o% >%#," " "&l#%.
H/ E!!*' o! '%#, $%o&o'o" !o% #ll !o% >%#," " o' "&l#%.
I'%$%'#'o/
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
,
T%#, P%o&o'o" >5 N%&#
0
10
20
30
40
50
$0
"eries1 4$ 34 55 24 8
>xtra 7ar'in >xtra nits ,redit fa,i!ity 'ifts promo) >xp)
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 61/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
<ro% the a'o(e $ra)h sho1s the trade )ro%otions offered 'y the "IRM 3td to
the retai*ers to attract the% to1ards stoc5in$ their $oods and a*so sto) the% s1itchin$
the% too other %a+or )*ayers in the %ar5et#
"IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it
%ay differ in the ti%e *i%it of the credit# It is a*so )ro(idin$ e;tra %ar$in& and units 1ith
occasiona* $ift 1ith their sche%es#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 62/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
HULP%o&o'o" R"$o,'"
E;tra Mar$in @
E;tra Units 6@
Credit faci*ity -
Gifts !Pro%o# E;)# !!
I'%$%'#'o/
The ad(anta$e of 233 o(er "IRM is that it 'are )ro%otiona* e;)enses 1hich
"IRM is not doin$# It attracts %ore consu%ers throu$h such )ro%otions& such as
dis)*ay of the )roduct& 'anners etc#
So this %ay he*) it to attract %ore retai*ers# It %ay 'ecause of its *ess cost of
)roduction in other se$%ents in 1hich nir%a is not o)eratin$#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
T%#, P%o&o'o" >5 HUL
0
10
20
30
40
50
$0
0
"eries1 4 34 58 25 22
>xtra 7ar'in >xtra nits .redit fa,i!ity ;ifts /romo) >xp)
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 63/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
P GP%o&o'o" R"$o,'"
E;tra Mar$in @,
E;tra Units 66Credit faci*ity
Gifts !,
Pro%o# E;)# /!
I'%$%'#'o/
PG is a*so a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the
faci*ities 1hich others are )ro(idin$ to retai*ers#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
T%#, P%o&o'o" >5 PG
0
10
20
30
40
50
$0
"eries1 40 33 55 20 12
>xtra 7ar'in >xtra nits .redit fa,i!ity ;ifts /romo) >xp)
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 64/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
GODREJP%o&o'o" R"$o,'"
E;tra Mar$in @
E;tra Units 6!
Credit faci*ity
Gifts /
Pro%o# E;)# /-
I'%$%'#'o/
Godre+ is a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the faci*ities
1hich others are )ro(idin$ to retai*ers# But it is *ac5in$ in 'earin$ e;)enses 1hich 2U3
is )ro(idin$ to %a;i%u% nu%'er of retai*ers#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
T%#, P%o&o'o" >5 Go,%-
0
10
20
30
40
50
$0
"eries1 4$ 32 5 19 18
>xtra 7ar'in >xtra nits .redit fa,i!ity ;ifts /romo) >xp)
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 65/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
OTHERSP%o&o'o" R"$o,'"
E;tra Mar$in 6,
E;tra Units /-
Credit faci*ity 6-
Gifts /
Pro%o# E;)#
I'%$%'#'o/
Others inc*ude *oca* )*ayers& as 1e** as 1e esta'*ished )*ayers *i5e& 1i)ro 'ut
their )roducts are not in de%and *i5e other )*ayers 'ut sti** they are )ro(idin$ a** the
faci*ities to retai*ers to attract to1ards stoc5in$ their )roducts#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
T%#, P%o&o'o" >5 O'+%"
0
5
10
15
20
25
30
35
40
"eries1 30 18 38 15
>xtra 7ar'in >xtra nits .redit fa,i!ity ;ifts /romo) >xp)
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 66/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
GODREJ NIRMA HUL P&G
ExtraMargin 46 46 47 40
Extra Units 32 34 34 33
Creditfacility 57 55 58 55
Gifts 19 24 25 20
Pr!"Ex#" 18 8 22 12
34.4 33.4 37.2 32
Anova: Single a!"o#
SUMMAR$
Grou)s Count Su% (era$e =arianceCo*u%n / /! 6@#@ !-#6
Co*u%n ! / 66#@ 66#-
Co*u%n 6 /- 6#! !!#
Co*u%n @ /, 6! !-@#
ANOVA
Source of
=ariation
SS df MS < P.(a*ue < crit
Bet1een
Grou)s
!# 6 !@#/-66
6
,#,-@,
,#@
6#!6--!
>ithin Grou)s @6#! / !-#-!
Tota* @@#
/
** the 'i$ )*ayers )ro(ide )ro%otion to the retai*ers due to cut throat co%)etition?Inter)retation: fro% the one factor ano(a ana*ysis& it is c*ear*y seen that there is a effect
of trade )ro%otion on (arious 'rands and are si%i*ar too# s ) ,#,& it is the e(idence
that the nu** hy)othesis is acce)ted
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 67/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?= G3 %#"o" !o% o' "'o*2 # $#%'*l#% >%#,.
Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 68/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?0 A5 S22"'o".
Retai*er su$$ested that )ac5a$in$ shou*d 'e further i%)ro(ed and used as
)ro%otiona* too*& to encoura$e sa*es durin$ certain )eriods the co%)any shou*d )ro(ide
)riceoff or e;tra 0uantity 'ecause that inf*uences direct*y to the consu%er#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 69/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
F,2" o! '+ %$o%'/
Sa*es Pro%otion& a short.ter% induce%ent& offered to a consu%er or trade has
$ained %o%entu% as a )ro%otiona* too* 1or*d o(er# It re)resents near*y three fourth of
the %ar5etin$ 'ud$et at %ost consu%er )roduct co%)anies# Sa*es )ro%otions canenhance consu%ersA se*f.)erce)tion of 'ein$ 8s%art or a 8$ood sho))er
• <MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is
'ecause of %any reasons#
• Kua*ity as the %ost inf*uencin$ factors in the )urchase decision 1hi*e )rice is
a*so an i%)ortant for )urchase decision#
• Sche%es a*1ays attract %ore and %ore consu%ers to1ards )articu*ar 'rand#
Si%u*taneous*y it $i(es idea a'out the factors 1hich consu%ers *oo5 %ost in the )roduct 'efore they %a5e fina* decision
• Price off and e;tra 0uantity is the t1o %ain offers4sche%es 1hich consu%ers
ha(e ca%e across at the ti%e of )urchase
• T= as the 'est %edia to %ar5et the )roduct 1hich 1i** co(er %a+ority of the
(ie1er shi)# On the second )*ace it sho1s ne1s )a)ers as the %edia to )ro%otethe )roduct in the %ar5et
• Peo)*e are not %uch a1are of the sche%es 1hich continue in the %ar5et it %ay
'e 'ecause of the )resent stoc5 of the )roduct at their )*ace#
• /Q/ or !Q/ or other free sche%es are %ore de%anded and %ore a1are sche%es
in the %ar5et#
• Peo)*e are ready to s1itch o(er to another 'rand if they find 'etter )ro%otiona*
sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q 0ua*ity#
• E;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other
factors inf*uence consu%ers to s1itch o(er too other 'rands#
• Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition#
• Peo)*e are %ore 0ua*ity and )rice oriented#
• Consu%er re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so
fro% the )ast )erfor%ance of that co%)any
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 70/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
• Consu%er re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so
fro% the )ast )erfor%ance of that co%)any
• Retai*ers are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona*
re*ation or that custo%er are 'rand *oya*
• Mar$in and of 'etter re*ations 1ith consu%ers and too )ro(ide 0ua*ity )roduct to
consu%ers they su$$est consu%ers too 'ye )articu*ar 'rand#
• Custo%ers are *oo5in$ for any ty)e of the )ro%otions on the )roduct 'efore the%
$oin$ to )urchase#
• Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the
consu%ers o(er others sche%es#
• "IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it
%ay differ in the ti%e *i%it of the credit#
• 2U3 attracts %ore consu%ers throu$h such )ro%otions& such as dis)*ay of the
)roduct& 'anners etc#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 71/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
R*o&&,#'o/
The findin$s of the e%)irica* study indicate that un*ess the 'rand to 'e )ro%oted
is in the consideration set of the consu%er& sa*es )ro%otion 'y itse*f is un*i5e*y to ha(e
any %a+or i%)act# C*ear*y this sho1s that %ana$ers need to in(est into 'rand 'ui*din$e;ercise so that his4her 'rand a))ears in the consideration set of the tar$et consu%ers#
On*y after this shou*d he s)end ti%e& %oney and ener$y on sa*es )ro%otion acti(ities#
Sa*es )ro%otion shou*d not 'e used in iso*ation 'ut need to 'e inte$rated 1ith
other too*s and in *ine 1ith the o(era** )ositionin$ of the 'rand# *so the i%)ortance of
the ro*e of %ass %edia ca%e out c*ear*y in the study#
Co%)anies need to create sufficient a1areness a'out sa*es )ro%otion sche%es
throu$h %ass %edia in order to create a1areness# <MCG )roducts are *o1 in(o*(e%ent
)roducts characteri7ed 'y s1itchin$ 'eha(ior# *so the )erson $oin$ to the sho) for the
)urchase of soa) is the fina* decision %a5er of the 'rand# 2ence it is essentia* that
co%)anies need to desi$n attracti(e& stri5in$& (isi'*e POPs for sche%e announce%ents#
>ith res)ect to nature of sche%e& the findin$ su$$ested that )re%iu% Ffree $ift
1as )o)u*ar 1ith co%)anies# >hi*e 'oth retai*ers and consu%ers )referred )rice offs# So
it is necessary that the )ercei(ed (a*ue of a free $ift has to 'e a))ea*in$ and hi$h for the
tar$et consu%ers#
Re)etiti(e use of the sa%e )re%iu% for a )ro*on$ed )eriod %ay ha(e ne$ati(e
effect on the *oya* custo%ers# >hen the co%)any is $i(in$ its o1n )roduct free as
)re%iu%& it needs to ensure the 0ua*ity of the )roduct fro% it as it is *i5e*y to +eo)ardi7e
the i%a$e of 'oth its )roducts#
The findin$s e;hi'ited that 'oth the retai*ers and consu%ers )ercei(ed that sa*es
)ro%otion acti(ities carried out 'y the co%)anies for increasin$ sa*es in short ter% and
c*earin$ e;cess stoc5s# >hat it i%)*ies is that co%)anies need to use sa*es )ro%otion
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 72/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
syner$istica**y and co%%unicate so that they )ro(ide (a*ue to the tar$et audience and
enhance 'rand 0ua*ity4i%a$e )erce)tions#
Co%)anies need to syste%ati7e infor%ation f*o1 re$ardin$ sa*es )ro%otion acti(ities
)articu*ar*y at dea*er and retai*er *e(e*# Ensurin$ )ro)er infor%ation f*o1 and de(isin$
chec5s and %easures to reduce %isa))ro)riations and i%)*e%entation f*o1s shou*d 'e
considered critica* as)ects for the success of sa*es )ro%otion acti(ities 'y the
co%)anies# s retai*in$ is fra$%ented& direct reach 'y co%)anies is ne;t to i%)ossi'*e#
Throu$h dea*ers and )ro)er feed'ac5 %echanis%& co%)anies 5ee) in touch 1ith the
%ar5et#
<ro% the study it 1as found that s%a**er retai*ers fe*t ne$*ected and not enthused to
i%)*e%ent the sche%es& )articu*ar*y 1hen additiona* hand*in$& stoc5in$& accountin$ 1as
re0uired on the )art of a retai*er 1ithout co%)ensatory %ar$ins# It can 'e seen that the
retai*er and consu%er )erce)tions %atched 1ith res)ect to )references of sche%es&
under*yin$ %oti(ations and ro*e of %ass %edia# This i%)*ies that the retai*er 1ou*d 'e a
rich source of infor%ation a'out the consu%er and the *i5e*y res)onse to sa*es
)ro%otion acti(ities#
De(e*o)in$ a syste% to ta) such res)onses fro% ti%e to ti%e 'oth at retai*er and
consu%er *e(e* 1ou*d 'e he*)fu* for )*annin$ future sa*es )ro%otion acti(ities# In order
to 'ui*d trust and co%%it%ent co%)anies shou*d ta) )references& )erce)tions of retai*ers
as 1e** as consu%ers#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
!
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 73/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
L&'#'o" o! '+ "',5
• >e considered h%eda'ad re$ion on*y 'ecause of *i%ited ti%e duration#
• Due to this& our sa%)*e si7e is on*y /,,& 1hich is not (ery *ar$e#
• ** the res)ondents cou*d not fi** their 0uestionnaire on their o1n due to
*an$ua$e )ro'*e% and a*so )ro'*e% of ti%e and *ac5 of )ositi(e 'eha(ior#
• Res)ondent %ay $i(e 'iased ans1er due to so%e *ac5 of infor%ation a'out other
'rands#
• <indin$s of the study are 'ased on the assu%)tion that the res)ondents ha(e
$i(en correct infor%ation#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
6
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 74/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
E&%22 T%,"
So far as <MCG %ar5et is concern there is ne1 trend is e%er$in$ 5no1n as Jo' "#l"
$%o&o'o# ctua**y it is o*d conce)t 'ut it 1as %ore )re(ai*in$ in dura'*e )roducts
no1 it is co%in$ intro non dura'*e $oods a*so# >hen any sa*es )ro%otion sche%e either
for trade or consu%er is announced 'y %ore than one co%)any and 4or %ore than one
'rand of the sa%e co%)any& it is referred as +oint sa*es )ro%otion or hori7onta* co.
o)erati(e sa*es )ro%otion or cross )ro%otion or u%'re**a sa*es )ro%otion#
Cl#""!*#'o o! -o' "#l" $%o&o'o/
• Use co%)*e%entari*y due to natura* use
• "e1 use caterin$ co%)*e%entary re*ationshi)s
• Co%%ona*ity of need due to use ti%e
• Tie.u) of a ne1 4s*o1 %o(in$ 'rand 1ith an esta'*ished 'rand
• Tar$et %ar5et co%%ona*ity
• Seasona* de%and
• Distri'ution co%%ona*ity
• Tar$etin$ ne1 se$%ent
• Deri(ed de%and
• Counterin$ co%)etiti(e +oint sa*es )ro%otions
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
@
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 75/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Co*l"o o! '+ S%35
The study ref*ects that the use of sa*es )ro%otion undenia'*y has increased o(er
the years in India# <uture ho*ds *ot of )ro%ise for such sche%es across 1ider ran$e of
)roduct.%ar5ets#
Sa*es Pro%otion has ceased to 'e %a+or differentiator at *east in the %etros& 1ith
a*%ost a** co%)anies offerin$ si%i*ar free'ies and $ifts# s a resu*t no1 %ar5eters ha(e
to find out so%e inno(ati(e 1ays of sa*es )ro%otion to differentiate fro% co%)etitors#
Current*y Price off and Bye one $et one free offers are (ery effecti(e to attract the
consu%ers to1ards the )roducts#
>e ha(e noted that these 5ind of )ro%otiona* too*s are usefu* for short ter%
increase in sa*es and to induce first tria*# These ty)es of )ro%otiona* sche%es shou*d 'e
consistent and chan$ed fro% ti%e to ti%e de)endin$ u)on season and co%)etitorAs
sche%es#
>ith the Increasin$ nu%'er of su)er%ar5et& the 'randed )ac5a$ed $oods 1or5
as si*ent sa*es )erson# So in such stores& sa*es )ro%otion )*ays a %ore effecti(e ro*e in
sti%u*atin$ consu%ersA de%ands#
One of the (ery i%)ortant facts 1e ca%e to 5no1 fro% this )ro+ect is that sa*e of
$oods 1hich contain *ar$e 0uantity and ha(in$ 'i$ )ac5a$in$ e#$# deter$ent are
sta$natin$ 'ecause consu%er )refer to 'uy s%a** )ac5 $oods& the reasons are: s%a** )ac5
$oods reduce ris5 of 'ad 0ua*ity& It had *o1 cost or say )rice& and *ast 'ut i%)ortant
factor i#e# %enta*ity to )urchase +ust to try first# Sa*es of s%a** )ac5 $oods are 0uite hi$h&
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 76/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
'ut fro% the co%)anyAs )oint of (ie1 s%a** )ac5 $oods is *ess )rofita'*e co%)are to
*ar$e )ac5 $oods#
So here %ar5eter tries to increase sa*es of *ar$e )ac5 $oods 'y usin$ sa*es
)ro%otion tactics *i5e )rice off and )ercenta$e e;tra#
B>lo2%#$+5
BOOS
Phi*i) 9ot*er& 8Mar5etin$ Mana$e%ent& //
th
edition& Pearson education siaPu'*ication#
C#R#9othari& 8Research Methodo*o$y %ethods techni0ues&"e1 $e
Internationa*F)*td#)u'*ishers&!nd edition#
1EBSITES
htt):44111#nir%a#co#infi*es
htt):44111#hu*#co#infi*es
htt):44111#)$.indiafi*es
htt):44111#$odre+fi*es
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 77/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
A4%
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 78/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
?"'o#%
C"'o&%"
>e are students of MB studyin$ in G3S "RIBM 2MEDBD and carryin$ out a sur(ey
for our acade%ic )ro+ect to8Ro*e of sa*es )ro%otions in <MCG# So )*ease fi** this
0uestionnaire# Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for
acade%ic )ur)ose#
K/# >hich 'rand of Soa) 4 Deter$ent do you useH
K!# Do you a*1ays 'uy the sa%e 'rand of Soa) 4 Deter$entH
Particu*ars Res )ondent
Yes
"oK6# >hich factors do you nor%a**y consider 1hi*e )urchasin$ a )articu*ar 'rand of Soa)
4 Deter$entsH
<actors
Bathin$
soa) Det#)o1der
<ra$rance
Kua*ity
Co%)any i%a$e
Price
Pac5a$in$
Others
K@# Do you consider )ro%otiona* sche%es 1hi*e )urchasin$ a )articu*ar 'rand of Soa) 4
Deter$entH
Particu*ars Res)ondent
Yes
"o
K# >hich of the fo**o1in$ )ro%otiona* sche%es you ha(e co%e across so farH
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-
Deter$ent )o1der Res)ondent
"ir%a su))er
>hee*
Surf
rie*
Others
Bathin$ soa)s Res)ondent
3u;
2a%a%
3ife'uoy
"ir%a
Others
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 79/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Pro%otiona*
sche%es Res)ondent
Cou)ons
)rice off
<ree'ies
scratch cards
*uc5y dra1
Bund*in$
e;tra 0ty#
K# >hich %ediu% do you fee* is suita'*e to )ro%ote the (arious )ro%otiona* sche%esH
Source Res)ondent
Radio
T=
"e1s)a)er
2oardin$
Others
K# Is there any e;istin$ sche%e on the Soa) 4 Deter$ent you are current*y usin$H
Particu*ars Res)ondent
Yes
"o
K-# If yes& )*ease s)ecifyH
Particu*ars Res)ondent
6Q/4Other<ree
Discount
"o idea
"o ans1er
K# If you $et an attracti(e )ro%otiona* offer in the )roduct other than of your choice
1i** you s1itch o(erH
Particu*ars Res)ondent
Yes
"o
K/,# Gi(e reason for the sa%eH
Particu*ars Res)ondent
CostQ0ty
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 80/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Kua*ity
Satisfaction
Brand *oya*
More
'enefit4'ud$et
Season chan$e
"o ans1er
K//# Gi(e su$$estions a'out futuristic )ro%otiona* sche%es#
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-,
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 81/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
Retai*ers
>e are students of MB studyin$ in G3S "RIBM 2MEDBD and carryin$ out a sur(ey
for our acade%ic )ro+ect 8Ro*e of sa*es )ro%otions in <MCG# So )*ease fi** this 0uestionnaire#
Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for acade%ic )ur)ose#
K/# Since ho1 *on$ are you in this 'usinessHParticu*ars Res)ondent
/. Years
./, Years
More than /, years
K!# "a%e the Soa) 4 Deter$ent FCo%)any you stoc5 for#
Co%)anies Res)ondent
"ir%a
2U3
PG
Godre+
Others
K6# Ran5 the fo**o1in$ factors that custo%ers *oo5 for in the )urchase of Soa) 4
Deter$ent# FRan5 fro% / to
<actors / ! 6 @
<ra$rance
Kua*ity
Co%)any
I%a$e
PricePac5a$in$
Others
K@# Do you su$$est custo%ers to )urchase a certain 'randH
Particu*a
r
Res)ondent
Yes
"o
K# If Yes 1hyH
Particu*ar Res)ondent
2i$h %ar$in
Kua*ity
Re*ationshi)
"o reason
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-/
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 82/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
K# Do custo%ers *oo5 for (arious sche%es in the )roductH
Particu*a
r
Res)ondent
Yes
"oK# If yes 1hich sche%esH
Pro%otiona*
Sche%es
Res)ondent
Cou)ons
Price Off
<ree'ies
Scratch Cards
3uc5y Dra1s
Bund*in$ Offer
E;tra Kuantity
K-# >hich Trade Pro%otions do (arious co%)anies offerH
G3S "#R#I#B#M4M#B#.!nd Year4Mar5etin$4!,.6.!,/,
-!
"IRM
Pro%otions Res)ondent
E;tra Mar$in
E;tra Units
credit faci*ity
Gifts
)ro%o# E;)#
2U3
Pro%otions Res)ondent
E;tra Mar$in
E;tra Units
Credit faci*ity
Gifts
Pro%o# E;)#
P G
Pro%otions Res)ondent
E;tra Mar$in
E;tra Units
Credit faci*ity
Gifts
Pro%o# E;)#
GODREJ
Pro%otions Res)ondent
E;tra Mar$in
E;tra Units
Credit faci*ity
Gifts
Pro%o# E;)#
8/12/2019 Sales Promotion Strategy Fmcg for Print
http://slidepdf.com/reader/full/sales-promotion-strategy-fmcg-for-print 83/83
Rol o! "#l" $%o&o'o" FMCG "*'o%
OT2ERS
Pro%otions Res)ondent
E;tra Mar$in
E;tra Units
Credit faci*ity
GiftsPro%o# E;)#
K Gi(e reasons for not stoc5in$ a )articu*ar 'rand#
K/, ny Su$$estions#