Marketing Research on Monginis

1. Impact of Sales Promotion on Customers’ purchase decision of Monginis cakes
Miss. 1
Pornima Patil
1
PGDM Student, iFEEL Institute, Lonavala.
E-mail Id: 1
poonampatil9113@gmail.com Mobile no.:1
9970709113
Abstract
This research aims to analyze Impact of sales promotion on customers purchase decision of
Monginis cakes in Pune and Lonavala. On the basis of objectives and hypothesis a constructed
questionnaire was constructed. Primary and secondary both type of data was used to conduct a
survey. Primary data was collected through questionnaire whereas secondary data was
collected through reports, research papers, company websites and articles. The Statistical
Package for the Social Sciences (SPSS) for Microsoft Windows 2010 was used to complete the
analysis of the collected data. Data is also analyzed through using Excel. Total sample were
taken to consideration were 100 respondents(n=100).
Keywords : Monginis, cake, sales promotion, customer, purchase decision

2. 1. Introduction
1.1 Industry overview
The food sector is the growing sector in India, in terms of the life style and purchasing power
of the customers. (Rahman, june, 2014)The growth rate of the bakery and confectionary
industry is good. One of this kind bakery which has been in the Indian market for quite long
times is MONGINIS, its brand name originated as a single Italian bakery at Mumbai.The core
purpose of Monginis is to help people express their happiness in a memorable day. Monginis
into a household name with 700+ outlets in all over the India. On an average 1,40,000
customers visit Monginis cake shop daily across the country. Monginis offer gourmet cakes,
pastries, cupcakes, cookies, and more that are universally enjoyed by family and friends and
make Monginis a part of all life’s celebrations and memories.
1.2 company overview
Monginis Food Pvt. Ltd. opened its doors in early 1956 in India. Mr Mongini, an Italian, started
a bakery and catering services in India. In 1960s, Monginis was brought over by the
Khorakiwala family and after that history was made. By 1971, an idea of having a nationwide
franchise network and reaching out to customers in their neighborhoods was born. For years,
Monginis cake brand has simply been making people happy and this is evident as today it
stands as the no.1 cake brand in India. Monginis sells itself as “The Cake Shop”, producing
ready-made as well as order made cakes. Individual cake slices also kept in Monginis stores
for dine-in customers. Monginis has mastered the art of making cakes over a period of time.
Monginis produce more than 30 different cakes primarily in round, square and heart shape both
in egg and eggless category. Monginis has cakes in regular, premium and super premium
segments in which Black forest, truffle Dutch premium shimmer are most popular cake family
among customers.

3. 2) Literature Review
Sales promotion can be defined as ‘Techniques and devices commonly used on a temporary
basis, to make goods and services more attractive to customers by providing them with some
additional benefit, whether in cash or services, whether immediately or at a later time, whether
freely or unconditionally’ (Essays, 2013). Sales promotion is rather difficult for the presence
of multiple relating techniques and tactics to achieve company’s marketing communication
objectives and an essential element in planning marketing (Mahsa, 2015). Customer behavior
is the dynamic interaction and communication between consumers and the marketers doing
exchanges. There are four main factors influencing customer’s purchasing decision, these
factors are cultural, social & religious, personal and psychological. Over the year’s sales
promotion has become an indispensable element of consumer marketing. In the past,
advertising used to be one of the most effective marketing tools to reach the target customers
to influence their purchasing decision. However, today marketers put more emphasis to sales
promotion and are gradually shifting away from traditional method of advertising towards sales
promotion. Marketers use different kinds of price-oriented promotions such as coupons,
rebates, price discounts to increase sales and market share, encourage trial and encourage brand
switching (AjanShrestha, 2005). It is generally agreed that sales promotions are difficult to
standardize because of legal, economic and cultural differences (Ellen r.Foxman, 1988).
According to (Blattberg, 1990) sales promotion is a key ingredient in marketing campaigns
which consist of collection of incentive tools to stimulate quicker or greater purchase of
particular products by the customers. Sales promotion plays an important role in the marketing
programs of the retailer and it can have a significant impact when customer makes their
purchasing decision (AjanShrestha, 2005). From these definitions it can be said that the sales
promotion adds value to the products or services and it provides an extra incentive to consumer
who make purchasing decision based on the promotion. Sales promotion has short impact
unlike advertising and personal selling and act as the short-term technique work for the
impulsive buying effect on customers but cannot last long. The overall objective of sales
promotion is associated with the building brand loyalty or creating product awareness. To
fulfill the objective of sales promotion, marketers use different types of sales promotional
activities like Consumer Sales Promotion and Trade Sales Promotion. Consumer Sales
Promotions are marketing techniques done with the focusing on end customers whereas trade
sales promotions are focused on dealers, distributors and agents (Nakarmi, 2018).

4. 3) Conceptual framework
From the discussion and extensive literature review, the Diagram below shows that
independent variable attribute of Monginis which consist of Price, Brand-name, Availability,
Quality, Taste of cake, Advertising and dependent variable like Purchase Decision.
Independent Variable Dependent variable
Sales Promotion Purchase Decision
4) Hypothesis formation
Hypothesis 1: There is a positive relationship between Sales Promotion and
Purchase Decision

5. 5) Research Methodology
5.1 Data description
The first part of the questionnaire consisted of certain demographic information like age of the
consumer, gender, occupation and education. The survey was conducted for the Customer’s
purchase decision of Monginis cakes. Respondents were primarily Monginis customers, who
were involved in purchasing the cakes for birthday, anniversary, party, festival and others
including the graduates and postgraduate, working vis-à-vis non-working, that is, the
housewives (homemakers).
5.2 Data collection procedures
Since the variables for the research were identified to evaluate the relationship between
independent variables, and the dependent variables. This research was descriptive in nature,
which was based on both secondary and primary data. Secondary data was collected via
research papers, journals, books, articles in periodicals, conference proceedings, and websites.
The method used for the data collection was by way of structured questionnaire, with a mix of
dichotomous, rank order, likert scale (1 being strongly disagree to 5 being strongly agree), and
semantic differential questions. Convenience sampling method was used by approaching
consumers who were coming out of the stores and willing to answer the questions.
Questionnaires were given to only those consumers who were aware about Monginis cakes.
Out of 100 respondents participated in the survey, 100 questionnaires were completed and
validated.
5.3 Sample Design: Sample size of 100 respondents (n = 100) was taken for this research, with
a target audience of Monginis customers, as they make the purchase decision for buying
Monginis cakes. Population above the size of 10000 are statistically infinite and hence the
percentage of sample required remains 1% when the population size is above 10000 and in
such cases, a sample size of 100 is to be considered to be sufficient (Sekaran & Bougie, The
research process - theoretical framework and hypothesis development, 2010).

6. 5.4 Data analysis
The questionnaires were thoroughly checked and edited. The data were entered in Statistical
Package for Social Sciences (SPSS) Version 14. Various statistical tools and techniques were
used to analyse the data. At the questionnaire design stage, it was decided to use various
multivariate analyses like correlation and factor analysis which require large sample size.
6. Results: Upon collecting the responses from 100 respondents, taking the base of the
hypothesis, followed by data analysis, the inference was arrived at, which helped depicting the
results of this study.
7. Discussion and conclusion:
As it is not so significant but there is a positive correlation between sales promotion and
purchase decision. To an extent sales promotion have an impact on purchase decision.
8. Limitation and scope for further study
The major limitation of the study was that this study was confined only to Pune and Lonavala
cities, which does not give a clear picture of usage patterns of the customers across PAN India,
due to variance tastes, preferences, etc.
9. Managerial implications
This study will be highly useful to the industry experts, and decision makers in food industry,
marketing consultants from FMCG sector, etc. in devising suitable long term vis-à-vis short-

7. term marketing strategies and tactics that will help in creating brand awareness and strong
brand image for their respective cake brand/s.