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ROLE OF SALES
PROMOTION IN FMCG
PRESENTED BY : YOGESH SINGLA
160MBAGEN027
INDEX
 ABOUT THE TOPIC
 MARKETING MIX AND PROMOTIONS
 PROMOTION – One of the important element
 SALES PROMOTION
 WHY MARKETERS USE
ABOUT THE TOPIC
 The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods
(FMCG) category throughout the world has increased.
 Companies spend considerable time in planning such activities. However, in order to enhance the
effectiveness of these activities, manufacturers should understand consumer and retailer interpretations
of their promotional activities.
 The study here pertains to consumer’s perceptions regarding sales promotion. Some past researches
have suggested that promotion itself has an effect on the perceived value of the brand.
MARKETING MIX AND
PROMOTIONS
MARKETING
MIX
PRODUCT
PLACE
PROMOTION
PRICE
PROMOTION – One of the important
element of marketing mix
PROMOTION
ADVERTISING
PUBLIC
RELATIONS
PERSONAL
SELLING
SALES
PROMOTION
DIRECT
MARKETING
SALES PROMOTION
 “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.”
 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 is considered as sales promotion activities.
Why marketers use Consumer
oriented sales promotions ?
Marketer’s uses consumer oriented sales promotion tools for the following reasons:
 To increase short term sales
 To induce trial
 To reduce inventory
 To establish a brand name
 To make cross selling
 To cope up with competition
 To avoid advertising clutter
SALES PROMOTIONS
 Coupons
 Price-Off
 Freebies
 Scratch Cards
 Lucky Draws
 Bundling Offer
 Extra Quantity
RESEARCH OBJECTIVES
 To study consumer preferences with respect to sales promotion in FMCG
sector.
 To study weather sales promotion schemes affect the purchase of brand
specially Soap/ Detergent industry.
 To study consumer behavior in purchase of soaps and detergent.
 To examine which medium is preferred / accessed by customers for sales
promotion schemes.
RESEARCH DESIGN , DATA
COLLECTION METHODS,
 Product categories under study
DETERGENTS: Washing Powder for Clothes
TOILETERIES Soaps
 Research Design : Research design selected for this project is Descriptive.
 Data collection Method:
Primary Data Collection Method:
 Survey method was used for primary data collection.
 We used questionnaire as an instrument for survey method.
 Structured questionnaire.
 Type of questionnaire: Open ended and closed ended.
Secondary Data Collection method: Reference books., Internet.
SAMPLING DETAIL
 Target population : The population for this research study consists of the residence of
Gurgaon.
 Sampling unit: In this study the sampling unit is individual consumer.
 Sample size : 100 consumers 100 retailers.
 Sampling method: The sample is selected by using convenience-sampling method.
DATAANALYSIS
OBJECTIVE -1 To study consumer preferences with respect to sales promotion in FMCG sector.
Interpretation: The above stated question clearly states the awareness of promotional schemes and what they prefer while
purchasing the product 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 and these two sales
promotion strategies attract more people. It will help the manufacturers and marketers too how too launch their new products in the
market with which schemes.
DATAANALYSIS
OBJECTIVE-2 -To study weather sales promotion schemes affect the purchase of brand specially Soap/ Detergent industry.
Interpretation: Answer of this question will give idea about the effect of promotional schemes in the purchase decisions. Such
types of 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. Here H0 is accepted as the graph shows
that 78 out of 100 consumers are looking for such schemes before they make purchase.
DATAANALYSIS
OBJECTIVE -3 -To study consumer behavior in purchase of soaps and detergent.
SUB OBJECTIVE: Which brand of Soap / Detergent do you use?
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, Nirma).
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.
DATAANALYSIS
SUB OBJECTIVE - Do you always buy the same brand of Soap / Detergent?
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.
DATAANALYSIS
SUB OBJECTIVE - Which factors do you normally consider while purchasing a particular brand of Soap / Detergents?
Interpretation: The objective behind this question is to know the effect of influencing factors in the
purchase decision of the soaps and detergent powders. It mainly contains the factors like, quality which
players an important role in the purchase decision of the soaps and detergents both. If we look at the graph of
the soaps and detergent it shows quality as the most influencing factors in the purchase decision while price
is also an important for purchase decision.
DATAANALYSIS
SUB CATEGORY : Do you consider promotional schemes while purchasing a particular brand of Soap / Detergent?
Interpretation: Answer of this question will give idea about the effect of promotional schemes in the purchase
decisions. Such types of 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. Here H0 is accepted as the graph shows that 78 out of 100 consumers are looking for such schemes
before they make purchase.
DATAANALYSIS
OBJECTIVE 4 :To examine which medium is preferred / accessed by customers for sales promotion schemes.
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 newspapers as the media to promote the product in the market.
LIMITATIONS OF THE
STUDY
 We considered Gurgaon region only because of limited time duration.
 Due to this, our sample size is only 100, which is not very large.
 All the respondents could not fill their questionnaire on their own due to
language problem and also problem of time and lack of positive
behavior.
 Respondent may give biased answer due to some lack of information
about other brands.
 Findings of the study are based on the assumption that the respondents
have given correct information.
FINDINGS OF THE REPORT
 FMCG are such a market where the level of loyalty remains low and this is because of many reasons.
 Quality as the most influencing factors in the purchase decision while price is also an important for purchase decision.
 Schemes always attract more and more consumers towards particular brand. Simultaneously it gives idea about the
factors which consumers look most in the product before they make final decision
 Price off and extra quantity is the two main offers/schemes which consumers have came across at the time of purchase
 TV as the best media to market the product, which will cover majority of the viewer ship. On the second place it shows
news papers as the media to promote the product in the market
 People are not much aware of the schemes, which continue in the market it may be because of the present stock of the
product at their place.
 1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the market.
 People are ready to switch over to another brand if they find better promotional schemes which suits their budget means
more quantity+ less cost + quality.
FINDINGS CONT….
 Extra quantity with less or same price, more satisfaction, quality and other factors influence consumers to switch over
too other brands.
 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
 Margin and of better relations with consumers and too provide quality product to consumers they suggest consumers too
bye particular brand.
 Customers are looking for any type of the promotions on the product before them going to purchase.
 Price off, product bundling and extra quantity are more demanded by the consumers over others schemes.
 NIRMA is mainly offering credit facility, which is offered by all major players it may differ in the time limit of the
credit.
 HUL attracts more consumers through such promotions, such as display of the product, banners etc.
CONCLUSION
RECOMMENDATIONS
 Sales promotion should not be used in isolation but need to be integrated with other tools and in line
with the overall positioning of the brand
 Companies need to create sufficient awareness about sales promotion schemes through mass
media in order to create awareness
 With respect to nature of scheme, the finding suggested that premium (free gift) was popular with
companies. While both retailers and consumers preferred price offs
 Repetitive use of the same premium for a prolonged period may have negative effect on the loyal
customers.
 Companies need to systematize information flow regarding sales promotion activities particularly at
dealer and retailer level. The companies should consider ensuring proper information flow and
devising checks and measures to reduce misappropriations and implementation flows critical
aspects for the success of sales promotion activities
 From the study it was found that smaller retailers felt neglected and not enthused to implement the
schemes, particularly when additional handling, stocking, accounting was required on the part of a
retailer without compensatory margins .
REFRENCES/BIBLOGRAPH
Y
BOOKS
 Philip Kotler, “Marketing Management”, 11th edition, Pearson
education Asia Publication.
 C.R.Kothari, “Research Methodology methods & techniques”,
New Age International (p) ltd. Publishers, 2nd edition.
ANY QUESTIONS?
THANK U …...

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Dissertation ppt on ROLE OF SALES PROMOTION IN FMCG

  • 1. ROLE OF SALES PROMOTION IN FMCG PRESENTED BY : YOGESH SINGLA 160MBAGEN027
  • 2. INDEX  ABOUT THE TOPIC  MARKETING MIX AND PROMOTIONS  PROMOTION – One of the important element  SALES PROMOTION  WHY MARKETERS USE
  • 3. ABOUT THE TOPIC  The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased.  Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities.  The study here pertains to consumer’s perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand.
  • 5. PROMOTION – One of the important element of marketing mix PROMOTION ADVERTISING PUBLIC RELATIONS PERSONAL SELLING SALES PROMOTION DIRECT MARKETING
  • 6. SALES PROMOTION  “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.”  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 is considered as sales promotion activities.
  • 7. Why marketers use Consumer oriented sales promotions ? Marketer’s uses consumer oriented sales promotion tools for the following reasons:  To increase short term sales  To induce trial  To reduce inventory  To establish a brand name  To make cross selling  To cope up with competition  To avoid advertising clutter
  • 8. SALES PROMOTIONS  Coupons  Price-Off  Freebies  Scratch Cards  Lucky Draws  Bundling Offer  Extra Quantity
  • 9. RESEARCH OBJECTIVES  To study consumer preferences with respect to sales promotion in FMCG sector.  To study weather sales promotion schemes affect the purchase of brand specially Soap/ Detergent industry.  To study consumer behavior in purchase of soaps and detergent.  To examine which medium is preferred / accessed by customers for sales promotion schemes.
  • 10. RESEARCH DESIGN , DATA COLLECTION METHODS,  Product categories under study DETERGENTS: Washing Powder for Clothes TOILETERIES Soaps  Research Design : Research design selected for this project is Descriptive.  Data collection Method: Primary Data Collection Method:  Survey method was used for primary data collection.  We used questionnaire as an instrument for survey method.  Structured questionnaire.  Type of questionnaire: Open ended and closed ended. Secondary Data Collection method: Reference books., Internet.
  • 11. SAMPLING DETAIL  Target population : The population for this research study consists of the residence of Gurgaon.  Sampling unit: In this study the sampling unit is individual consumer.  Sample size : 100 consumers 100 retailers.  Sampling method: The sample is selected by using convenience-sampling method.
  • 12. DATAANALYSIS OBJECTIVE -1 To study consumer preferences with respect to sales promotion in FMCG sector. Interpretation: The above stated question clearly states the awareness of promotional schemes and what they prefer while purchasing the product 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 and these two sales promotion strategies attract more people. It will help the manufacturers and marketers too how too launch their new products in the market with which schemes.
  • 13. DATAANALYSIS OBJECTIVE-2 -To study weather sales promotion schemes affect the purchase of brand specially Soap/ Detergent industry. Interpretation: Answer of this question will give idea about the effect of promotional schemes in the purchase decisions. Such types of 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. Here H0 is accepted as the graph shows that 78 out of 100 consumers are looking for such schemes before they make purchase.
  • 14. DATAANALYSIS OBJECTIVE -3 -To study consumer behavior in purchase of soaps and detergent. SUB OBJECTIVE: Which brand of Soap / Detergent do you use? 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, Nirma). 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.
  • 15. DATAANALYSIS SUB OBJECTIVE - Do you always buy the same brand of Soap / Detergent? 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.
  • 16. DATAANALYSIS SUB OBJECTIVE - Which factors do you normally consider while purchasing a particular brand of Soap / Detergents? Interpretation: The objective behind this question is to know the effect of influencing factors in the purchase decision of the soaps and detergent powders. It mainly contains the factors like, quality which players an important role in the purchase decision of the soaps and detergents both. If we look at the graph of the soaps and detergent it shows quality as the most influencing factors in the purchase decision while price is also an important for purchase decision.
  • 17. DATAANALYSIS SUB CATEGORY : Do you consider promotional schemes while purchasing a particular brand of Soap / Detergent? Interpretation: Answer of this question will give idea about the effect of promotional schemes in the purchase decisions. Such types of 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. Here H0 is accepted as the graph shows that 78 out of 100 consumers are looking for such schemes before they make purchase.
  • 18. DATAANALYSIS OBJECTIVE 4 :To examine which medium is preferred / accessed by customers for sales promotion schemes. 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 newspapers as the media to promote the product in the market.
  • 19. LIMITATIONS OF THE STUDY  We considered Gurgaon region only because of limited time duration.  Due to this, our sample size is only 100, which is not very large.  All the respondents could not fill their questionnaire on their own due to language problem and also problem of time and lack of positive behavior.  Respondent may give biased answer due to some lack of information about other brands.  Findings of the study are based on the assumption that the respondents have given correct information.
  • 20. FINDINGS OF THE REPORT  FMCG are such a market where the level of loyalty remains low and this is because of many reasons.  Quality as the most influencing factors in the purchase decision while price is also an important for purchase decision.  Schemes always attract more and more consumers towards particular brand. Simultaneously it gives idea about the factors which consumers look most in the product before they make final decision  Price off and extra quantity is the two main offers/schemes which consumers have came across at the time of purchase  TV as the best media to market the product, which will cover majority of the viewer ship. On the second place it shows news papers as the media to promote the product in the market  People are not much aware of the schemes, which continue in the market it may be because of the present stock of the product at their place.  1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the market.  People are ready to switch over to another brand if they find better promotional schemes which suits their budget means more quantity+ less cost + quality.
  • 21. FINDINGS CONT….  Extra quantity with less or same price, more satisfaction, quality and other factors influence consumers to switch over too other brands.  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  Margin and of better relations with consumers and too provide quality product to consumers they suggest consumers too bye particular brand.  Customers are looking for any type of the promotions on the product before them going to purchase.  Price off, product bundling and extra quantity are more demanded by the consumers over others schemes.  NIRMA is mainly offering credit facility, which is offered by all major players it may differ in the time limit of the credit.  HUL attracts more consumers through such promotions, such as display of the product, banners etc.
  • 23. RECOMMENDATIONS  Sales promotion should not be used in isolation but need to be integrated with other tools and in line with the overall positioning of the brand  Companies need to create sufficient awareness about sales promotion schemes through mass media in order to create awareness  With respect to nature of scheme, the finding suggested that premium (free gift) was popular with companies. While both retailers and consumers preferred price offs  Repetitive use of the same premium for a prolonged period may have negative effect on the loyal customers.  Companies need to systematize information flow regarding sales promotion activities particularly at dealer and retailer level. The companies should consider ensuring proper information flow and devising checks and measures to reduce misappropriations and implementation flows critical aspects for the success of sales promotion activities  From the study it was found that smaller retailers felt neglected and not enthused to implement the schemes, particularly when additional handling, stocking, accounting was required on the part of a retailer without compensatory margins .
  • 24. REFRENCES/BIBLOGRAPH Y BOOKS  Philip Kotler, “Marketing Management”, 11th edition, Pearson education Asia Publication.  C.R.Kothari, “Research Methodology methods & techniques”, New Age International (p) ltd. Publishers, 2nd edition.