The document discusses fast moving consumer goods (FMCG) and sales promotions. It begins by explaining that FMCG refers to everyday consumer products that move quickly through retail shelves, though definitions vary. Characteristics of FMCG include low individual cost but high overall spending, limited household inventory with frequent purchases, and minimal decision time based mainly on brand and retailer recommendations. The document then discusses different elements of sales promotions, which are an important part of FMCG marketing strategies. Consumer-oriented sales promotions aim to directly motivate consumers and can include techniques like coupons, price discounts, free samples, contests, and bundling offers. Factors that influence the effectiveness of these promotions include the promotion type, targeted segments, competitors' actions

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INTRODUCTION
FMCG Conceptand Definition:
The term FMCG (fast moving consumer goods), although popular and frequently
used does not have a standard definition and is generally used in India to refer to products of
everyday use. Conceptually, however, the term refers to relatively fast moving items that are
used directly by the consumer. Thus, a significant gap exists between the general use and the
conceptual meaning of the term FMCG.
Further, difficulties crop up when attempts to devise a definition for FMCG. The
problem arises because the concept has a retail orientation and distinguishes between
consumer products on the basis of how quickly they move at the retailer’s shelves. The moot
question therefore, is what industry turnaround threshold should be for the item to qualify as
an FMCG. Should the turnaround happen daily, weekly, or monthly.
One of the factors on which the turnaround depends is the purchase cycle. However,
the purchase cycle for the same product tend to vary across population segments. Many low-
income households are forced to buy certain products more frequently because of lack of
liquidity and storage space while relatively high-income households buy the same products
more infrequently. Similarly, the purchase cycle also tends to vary because of cultural
factors. Most Indians, typically, prefer fresh food articles and therefore to buy relatively
small quantities more frequently. This is in sharp contrast with what happens in most western
countries, where the practice of buying and socking foods for relatively longer period is more
prevalent. Thus, should the inventory turnaround threshold be universal, or should it allow
for income, cultural and behavioral nuances

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Characteristics of FMCG Products:
 Individual items are of small value. But all FMCG products put together account for
a significant part of the consumer's budget.
 The consumer keeps limited inventory of these products and prefers to purchase them
frequently, as and when required. Many of these products are perishable.
 The consumer spends little time on the purchase decision. Rarely does he/she look
for technical specifications (in contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/dealer drive purchase decisions.
 Trial of a new product i.e. brand switching is often induced by heavy advertisement,
recommendation of the retailer or neighbors/friends.
 These products cater to necessities, comforts as well as luxuries. They meet the
demands of the entire cross section of population. Price and income elasticity of
demand varies across products and consumers.

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INTRODUCTION TO THE TOPIC
Introduction:
The importance of consumer sales promotion in the marketing mix of the fast moving
consumer goods (FMCG) category throughout the world has increased. Companies spend
considerable time in planning such activities. However, in order to enhance the effectiveness
of these activities, manufacturers should understand consumer and retailer interpretations of
their promotional activities. The study here pertains to consumer’s perceptions regarding
sales promotion. Some past researches have suggested that promotion itself has an effect on
the perceived value of the brand. This is because promotions provide utilitarian benefits such
as monetary savings, added value, increased quality and convenience as well as hedonic
benefits such as entertainment, exploration and self-expression.
Broadly speaking most of the companies using Marketing Mix which includes…
 Price
 Place (Channel of Distribution)
 Product
 Promotion
These are the four basic pillar of marketing mix. Most of the marketing strategies are
built on the basis of these criteria.
Promotion is one of the important elements of marketing mix. There are so many elements of
promotion such as …
 Advertising
 Direct Marketing
 Public Relations
 Sales Promotion

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Traditionally, sales Promotions have been used by marketer to increase sales in the short
term. However, in the last few decades this communication tool has evolved and now is
considered from a strategic point of view. For this reason, it is necessary to realize new
studies in this area and study how consumers evaluate sales promotions.
Sales promotions have grown in both importance and frequency over the past few
decades. Although an accurate estimate for total sales promotions expenditures does not
exist, we can be sure that the trend is up.
Sales promotion serves three essential roles: It informs, persuades and reminds
prospective customers about a company and its products. Even the most useful product or
brand will be a failure if no one knows that it is available. As we know, channels of
distribution take more time in creating awareness because a product has to pass through
many hands between a producer and consumers.
Therefore, a producer has to inform channel members as well as ultimate consumers
about the attributes and availability of his products. The second purpose of promotion is
persuasion. The cut throat competition among different products puts tremendous pressure on
their manufacturers and they are compelled to undertake sales promotion activities. The third
purpose of promotion is reminding consumers about products availability and its potential to
satisfy their needs.
From these elements Sales Promotion is the element which is in the focus of this
project. Further Sales Promotion is quite broad term it includes
 Consumer Oriented Sales Promotion
 Trade Oriented Sales Promotion

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CONSUMER ORIENTEDSALES PROMOTION
Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize
is given to motivate consumer to increase sales. Consumer Oriented Sales Promotion
includes Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Pack’s, Price-
off, Event marketing etc.
Definition:
For the purpose of this study, following definitions of sales promotion were kept in mind.
Kotler defines sales promotion as: “Sales promotion consists of a diverse collection of
incentive tools, mostly short-term designed to stimulate quicker and/or greater purchase of
particular products/services by consumers or the trade.”
Roger Strang has given a more simplistic definition i.e. “sales promotions are short-term
incentives to encourage purchase or sales of a product or service.”
Hence, any forms of incentives (price cut or value added nature) offered for short period
either to trade or consumers are considered as sales promotion activities.
Marketer’s uses consumer oriented sales promotion tools for the following reasons:
 To increase short term sales
 To induce trial
 To reduce inventory
 To establish a brand name
 To make cross selling
 To cope up with competition
 To avoid advertising clutter

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Tools ofConsumer Oriented Sales Promotion:
There are so many tools or technique available to the marketers for achieving objective of
sales promotion. These tools should be used considering all other factors affecting such as
cost, time, competitors, availability of goods etc. These tools are as under…
1. Coupons
2. Price-Off
3. Freebies
4. Scratch Cards
5. Lucky Draws
6. Bundling Offer
7. Extra Quantity
Let’s have look at each tool…
1. Coupons
Coupon is the oldest and most widely used way of sales promotion. Coupons have been used
since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a
promotion tool because data shows that market for packaged goods increased from 16 billion
in 1968 to 310 billion in 1994. To boost up the sales not only manufacturer but retailers
personally can also use. A coupon leads to price reductions so as to encourage price sensitive
customers. Non users can try a product which may leads to regular sales.
2. Price-off
A price-off is simply a reduction in the price of the product to increase sales and is
very often used when introduction a new product. A reduction in price always increases sales
but the use of this technique should be carefully considered in the current market situation.
Price-off is the most preferred sales promotion technique because consumers response
very positively to this scheme. Not only that but it also cause large increase in sales volume.
Price-off reductions are typically offered tight on the package through specially marked price
packs. E.g. Krack Jack offers 30% Price-off.

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3. Freebies
Freebies are a popular form of modern marketing and are some of the best things
about the internet. The definition of freebies is products or services given away for free at no
cost to the consumer. Well that’s the definition we came up with. I am a bargain freebie
shopper, pretty much going for any free product and informing everyone about it.
At different times, big and small companies often give away prizes and money which
is too good to be true. Often it’s in the pursuit of more customers or a larger fan base and it
often works.
4. Scratch Cards
A scratch card (also called a scratch off, scratch ticket, scratcher, scratchie, scratch-it,
scratch game, scratch-and-win or instant game) is a small token, usually made of cardboard,
where one or more areas contain concealed information: they are covered by a substance that
cannot be seen through, but can be scratched off.
5. Bundling Offers
Product bundling is a marketing strategy that involves offering several products for
sale as one combined product. This strategy is very common in the software business (for
example: bundle a word processor, a spreadsheet, and a database into a single office suite), in
the cable television industry (for example, basic cable in the United States generally offers
many channels at one price), and in the fast food industry in which multiple items are
combined into a complete meal. A bundle of products is sometimes referred to as a package
deal or a compilation or an anthology.

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Factors Influencing ConsumerOriented sales promotion:
Mainly four factors should be taken into account while determining the sales
promotion program.
> Target market
> Nature of product
> Stage of product life cycle
> Budget available for promotion
1. TargetMarket:
While doing sales promotion, marketer must know who their target market is;
otherwise there is no use of all effort because it leads to nowhere. A target market can be in
any of the stages of buying hierarchy i.e. awareness, knowledge, liking, preferences,
conviction and purchase. Each stage defines a possible goal of promotion.
2. Nature of the product:
There are various product attributes which influence sales promotional strategy.
When the unit price is low the manufacturer as well as the customer has low risk but he can
get the benefit of mass marketing. Therefore, mass marketing requires mass sales promotion
schemes. Sales promotion scheme differ for products like its durability, perishable goods etc.
3. Stage of product Life Cycle:
Sales promotion strategies are influenced by the life cycle of a product. When a new
product introduced, prospective buyers must be informed about its existence and its benefits
and middlemen must be convinced to stock it. Later, if a product becomes successful,
competition intensifies and more emphasis is placed on sales promotion to increase its sales.

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4. Budget Available for Promotion:
The funds available for promotion are the ultimate determinants of the promotional
program me. A business with ample funds can make more effective use of sales promotion
programme than a firm with limited financial resources. The budget for sales promotion can
be prepared by the following methods…
o Percentage of Sales
o Fixed funds available for sales promotion
o Following the competition, and
o Budgeting by objective.
Sales Promotionfrom the Consumers point of view
Willingness to buy on sales promotion offer
Sixty per cent of the sample did not show willingness to buy a brand due to
promotion while 30% showed willingness and 10% were not sure. This indicates that when
30% showed willingness and 10% consumers who were not sure, these groups might be lured
through innovative and lucrative sales promotion offer.
Ability to induce trial
Forty per cent of the respondents had said that sales promotion had the ability to
induce trial which reinforces the above inference.
Long-term impact
In order to understand ability of the promotions to increase long-term sales,
respondents were asked about continuity of purchase of a brand after the withdrawal of
promotion. Eighty per cent of the respondents indicated that they would not continue. But
20% said they would. Thus, it could be inferred that promotions in this category (low
involvement products) might encourage trial and brand switching but not long term loyalty.

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Preference ofSchemes:
Price off was the most preferred type of scheme. Maximum customers’ ranked price-
offs as number one or two.
PerceivedQuality:
Majority of respondents had a perception that the quality of the promoted brands
remained the same during promotion, while some of them felt that it was inferior to before. It
can be inferred that promotions were not leading to negative brand quality perceptions. It is
found that some customer strongly preferred to buy their regular brand and said that sales
promotion would not weaken their loyalty towards the brand.
Perceptions regarding underlying company motivations
On tapping perceptions’ regarding underlying company motivations for sales
promotion, “to increase sales” was ranked highest followed by “to attract switchers” and “to
sell excess stocks”. While providing value to customers” and
“To reinforce company image” were ranked lowest. This indicates that consumers believed
that companies were undertaking such activities only for their own benefit and not for the
benefit of consumers.
Findings from retailer and consumer perception studies, it is evident that there was a
matching of perceptions regarding nature of scheme (price offs as most preferred type of
scheme mentioned by consumers and retailers’ perceptions about consumer preferences).
Since retailers observe consumers in store behavior were frequently and directly, their
perceptions regarding providing consumer behavior are likely to be accurate. Such inputs
from the retailers would be useful to companies.
The retailers had the perception that those schemes which were announced through
mass media had better response. This was reinforced by the consumer survey which showed
that recall in case of heavily promoted schemes on TV was found to be very high.

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Retailers’ prediction of companies’ motivation for offering sales promotion were
matching with the consumer perception regarding the same. Thus both viewed that
companies were using sales promotion activities mainly to increase short term sales or
encourage switching or selling excess stock and not really to give value benefit or
enhance/reinforce brand/company image.
Trade Oriented Sales Promotion
Trade Oriented Sales Promotion aimed to motivate channel member of the company
and to encourage them to push company’s product. Trade Oriented Sales Promotion includes
dealer contest and incentives, trade allowances. Point-of-purchase displays, sales training
programs, trade shows, cooperative advertising, and other programs designed to motivate
distributors and retailers to carry a product and make an extra effort to push it to their
customers
Sales promotion from the retailer’s point of view:
Perceptions on Scheme Preference
It was found that retailer perceived price offs as a better form of sales promotion
activity. Price offs in their opinion had relatively a greater impact compared to any other
form of sales promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred
price offs the most, then bonus pack, premium, contests, in order of importance.
Perceptions about Buying Roles
Retailers viewed that the person who came to the shop (who may be a maid, son,
daughter, daughter-in-law and child) was the decider of a toilet soap brand and not the
Income provider (e.g. head of the family). It could be inferred that visibility of information
about the sales promotion activity at the point of purchase could result into the purchase of a
promoted brand.

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Perceptions about their role in decision-making
Retailer had relatively very low influence in affecting choice. It could be inferred that
visibility and awareness about the scheme were the critical success factors so that pull could
be created.
Perceptions about Response to Sales Promotion Offers
They believed that younger age-groups were more experimental in nature, amenable
to trying new brands, and sought/looked for or asked whether there were any) sales
promotion schemes running on any toilet soap at the time of purchase.
Perceptions about Communications of Sales Promotion Schemes
Retailers perceived that role of word of mouth and television advertising played an
important part in providing information inputs to consumers regarding sales promotion
activities.
Variations in Information Flow
Smaller (non-supermarket, small format store) retailers received relatively less
support compared to supermarkets in terms of servicing, margins, information about sales
promotion activities from the dealers. Many a times small retailers were only informed
verbally about sales promotion schemes by the dealer salesmen during the scheduled weekly
visits.
Dealer-Retailer Dynamics
At the time of sales promotion activities, dealers had tendency to push unwanted
stocks onto the smaller retailers. In fact these retailers preferred to stock variety of brands
and wanted payment for shelf and window display to increase traffic into their store.
However, supermarkets and big retailers were pampered and given special services and given
better margins and better allowances.

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Margins
It was found that in sales promotion schemes margins varied from 6 to15% depending
of the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc.
Mostly margins were linked to size of the volumes that were ordered.
Perceptions about terms and conditions
Retailers were not found to be happy with sales promotion schemes where their
margins were cut on the pretext of just fast movement of inventory of the brand being
promoted. Also if additional incentive was offered it was subject to minimum performance
requirement.
Nature of POP
Retailers indicated that most of the POP (Point of Purchase) materials were meant for
brand advertisement and not for giving information regarding the schemes. Thus it could be
inferred that company’s follow up was not adequate.
Servicing during duration of Scheme
In stock-out situation during the running of the sales promotion schemes, smaller
retailers had to wait for replenishment of stocks till the next scheduled weekly visit by the
dealer salesman but big retailers were serviced on telephonic request for replenishment of
stocks. This clearly indicated the disparity in treatment.
Problem of left-over
A leftover stock at the end of any scheme was required to be sold by the retailers
before they ordered fresh stocks. In case of bonus packs scheme, leftover stock was often
dismantled (cut open buy one get one free) and sold them individually as a regular soap. This
approach of the company leads to misappropriation which in turn could result in adverse
brand image.

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Gifts for Retailer motivation
Companies at times were rewarding retailers by giving free gifts like thermos flasks
or clocks if they sold more than certain quantity in a given period. Companies were making a
half-hearted effort to motivate retailers.
Perceptions about mass media announcements
Retailers viewed that whenever sales promotion scheme was announced on TV, it
created pull and they were more than willing to stock such brands. For example Medimix and
Dettol contest was not advertised on TV, hence there was very little awareness leading to
unsold stock till 6 months. While Lux Gold Star which was heavily promoted on T.V. is
recalled even today.
Post Promotion Behavior
Retailers observed that in most cases sales promotion scheme on a brand might
encourage a buyer to switch a brand temporarily but he would revert back to original brand
after promotion.
Handling Problems
Many a time’s retailers had to handle various sales promotion offers simultaneously
in a category and also across categories and there was no formal communication planning
either from the dealer or the company. Remembering each offer and handling was a problem
especially for a small retailer which was often an as one-man show.

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NEED FOR THE STUDY
 In present situation not only in one industry but also all sectors are facing tough
competition.
 It has become very difficult to grow, stabilize and excel in business performance.
 It is required to influence the attitude and behavior of buyers. A lot of promotional
activities are needed. The leading companies are using difference techniques for
promotion.
 These are advertising, publicity, sales promotion, personal selling and packaging.
 These are serving the difference objectives. Sales promotion is one of them and gives
a great impact on customer buying behavior to increase sales in short term.
 It contributes to neutralize the competition effect. To achieve the objective a strategy
is needed for effective application of sales promotion.
 The contribution of sales promotion strategy is significant in present time to stay in
business in competitive market.
 The importance of it attracted my attention to select this topic for research study

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SCOPE OF THE STUDY
This study is relating to promotion-mix elements out of total marketing efforts. It will cover
mainly sales promotion, methods for sales promotion, parties involved for sales promotion,
combination of promotion methods with sales promotion, sales promotion strategy and its
related concepts. This topic has studied in FMCG sector in world and Indian industry.
Leading companies have been selected on the basis of their market share for the research
study and their comparative study has been carried out.
The Scope includes:
 To study the various sales promotional activities used in FMCG sector.
 To study about the sales promotional strategies.
 To study about how to create sales promotion.
 How to use sales promotion.

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OBJECTIVES OF THE STUDY
 To study consumer preferences with respect to sales promotion in FMCG sector.
 To examine tradeoffs, relative importance of different attributes while responding to a
sales promotion offer.
 To study the effect of sales promotions in FMCG sector especially in soaps and
detergent industry.
 To study consumer behavior in purchase of soaps and detergent.

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RESEARCH METHODOLOGY
Data collection Method:
(a) Primary Data Collection Method:
 Survey method was used for primary data collection.
 We used questionnaire as an instrument for survey method.
 Structured questionnaire.
 Type of questionnaire: Open ended and closed ended.
(b) Secondary Data Collection method:
 Reference books.
 Internet.

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LIMITATIONS OF THE STUDY
 We considered tanuku region only because of limited time duration.
 Due to this, our sample size is only 100, which is not very large.
 All the respondents could not fill their questionnaire on their own due to language
problem and also problem of time and lack of positive behavior.
 Respondent may give biased answer due to some lack of information about other
brands.
 Findings of the study are based on the assumption that the respondents have given
correct information.

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INDUSTRIAL PROFILE
FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a
lot of thought, time and financial investment to purchase. The margin of profit on every
individual FMCG product is less. However the huge number of goods sold is what makes the
difference. Hence profit in FMCG goods always translates to number of goods sold. Fast
Moving Consumer Goods is a classification that refers to a wide range of frequently
purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products,
shaving products, detergents, and other non-durables such as glassware, bulbs, batteries,
paper products and plastic goods, such as buckets.
‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are
generally replaced less than once a year. The category may include pharmaceuticals,
consumer electronics and packaged food products and drinks, although these are often
categorized separately. The term Consumer Packaged Goods (CPG) is used interchangeably
with Fast Moving Consumer Goods (FMCG).Three of the largest and best known examples
of Fast Moving Consumer Goods companies are Nestlé, Unilever and Procter & Gamble.
Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG
brands are Coca-Cola, Kleenex, Pepsi and Believe.
The FMCG sector represents consumer goods required for daily or frequent use. The main
segments of this sector are personal care (oral care, hair care, soaps, cosmetics, toiletries),
household care (fabric wash and household cleaners), branded and packaged food, beverages
(health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products)
and tobacco.
The Indian FMCG sector is an important contributor to the country's GDP. It is the
fourth largest sector in the economy and is responsible for 5% of the total factory
employment in India. The industry also creates employment for 3 m people in downstream
activities, much of which is disbursed in small towns and rural India. This industry has
witnessed strong growth in the past decade. This has been due to liberalization, urbanization,
increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been
fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the
concerted efforts of personal care companies to attract Unlike the perception that the FMCG

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sector is a producer of luxury items targeted at the elite, in reality, the sector meets the
everyday needs of the masses. The lower-middle income group accounts for over 60% of the
sector's sales. Rural markets account for 56% of the total domestic FMCG demand.
Many of the global FMCG majors have been present in the country for many decades. But in
the last ten years, many of the smaller rung Indian FMCG companies have gained in scale.
As a result, the unorganized and regional players have witnessed erosion in market share.
History of FMCG in India
In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force
in the FMCG sector well supported by relatively less competition and high entry barriers
(import duty was high). These companies were, therefore, able to charge a premium for their
products. In this context, the margins were also on the higher side. With the gradual opening
up of the economy over the last decade, FMCG companies have been forced to fight for a
market share. In the process, margins have been compromised, more so in the last six years
(FMCG sector witnessed decline in demand).
SOAP INDUSTRY:
The soap industry in India is at the high growth rate and many new entrants are planning to
launch their product in this category. The overall soap industry is worth at 60000 crores.
Shine is a multinational company. It is a new entrant in the market and targets at unisex
genders. I segmented Shine's market according to geographical locations. It further
differentiates these segments into Socio Economic Cluster (SEC) which takes into account
the criteria of education and profession which ultimately measures the financial ability of
consumers. The cluster is divided into five parts starting from A to E. Shine targets the urban
and sub urban upper middle class and middle class segment of the population, who falls
under A to C of SEC.
Tactical marketing tools, 4P‘s, are extensively used by the company to market Shine. Though
Shine is produced in India, Unilever India maintains the same standard all around the globe.
The product is available in six different fragrances under three different sizes. Since the
demand for beauty soap market is to a great extent oligopolistic, variations in price lead to

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price war which can eventually break down the company‘s market share. Thus Unilever
cannot provide a better price than its competitors. But the price is affordable by most of the
people. Shine will outsource its distribution channel to third party distributors which allow
them to distribute Shine in massive bulks amounting to around ten million pieces. It
undertakes the largest promotional activities in the beauty soap industry.
The beauty soap industry has a few major producers of which Unilever holds market share of
slightly less than 50%. Other competing brands like Tibet, Aromatic and Keya have started to
have a strong consumer base, but Shine's product features distribution and promotional
activities will create high brand loyalty for which it will be the market leader soon after
developing its IMC plan. Shine, with the aid of its heavy promotional activities, has been
able to penetrate the market. But the other producers in the industry are posing a threat
towards Shine‘s market share as they have moved towards the rural masses of the population.
Therefore, I have undertaken many further steps such as moving towards the rural and/or
poorer segment; attract children (by making a special product for kids) and other innovative
promotional activities to retain its command in the industry.
Industry analysis
The toilet soaps market is estimated at 530,000 tpa including small imports. The market is
littered over with several, leading national and global brands and a large number of small
brands, which have limited markets. The popular and premium brands include Lifebuoy,
Lux, Cinthol, Liril, Rexona, and Nirma.
Toilet soaps, despite their divergent brands, are not well differentiated by the consumers. It
is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume
media
campaign, which sustain them. A consequence is that the market is fragmented. It is obvious
that this must lead to a highly competitive market. Toilet soap, once only an urban
phenomenon, has now penetrated practically all areas including remote rural areas. The
incremental demand flows from population increase and rise in usage norm impacted as it is

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by a greater concern for hygiene. Increased sales revenues would also expand from up
gradation of quality or per unit value.
As the market is constituted now, it can be divided into four price segments: premium,
popular, discount and economy soaps. Premium soaps are estimated to have a market volume
of about 80,000 tones. This translates into a share of about 14 to 15%.
Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for
around 30% of the soap market, by value. Currently, the soap industry is divided into three
segments namely Premium, Popular and Economy/ Sub popular.
To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer
Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game
plans. And the accent is clearly on innovation to gain mind share as well as market share in
this overcrowded category.
Major Players
Hindustan Unilever Ltd.
With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and
PEARS — has 54.3% share of the overall soap market. HUL is India's largest Fast Moving
Consumer Goods Company; its journey began 75 years ago, in 1933, when the company was
first incorporated. The company stirring the lives of two out of three Indians with over 20
distinct categories in Home & Personal Care Products and Foods & Beverages and also one
of the country's largest exporters. HUL's brands includes Lifebuoy, Lux, Surf Excel, Rin,
Wheel, Fair & Lovely, Pond's, Sun silk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,
Kissan, Knorr-Annapurna, Kwality Wall's - are household names across the country. They
are manufactured in over 40 factories across India. In the Rs7, 000 crore by sales soap
market, HUL‘s market share has dropped to 54.3% in March 2008 from 55.9% in March
2006.

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Godrej consumer products
GCPL, India‘s second largest soap maker after Hindustan Unilever Ltd, has nearly 9.2%
market share. With 11% market share in value terms, it is the second largest soap maker after
Hindustan Unilever. Godrej Consumer Products (GCPL) is a major player in the Indian
FMCG market with leadership in personal, hair, household and fabric care segments. The
company is one among the largest marketer of toilet soaps in the country with leading brands
such as CINTHOL, FAIRGLOW, NIKHAR, & ALLCARE. Fair glow brand, India's first
Fairness soap, has created marketing history as one of the most successful innovations. It is
also the preferred supplier for contract manufacturing of toilet soaps, some of which are the
most well-known brands in the country.
Wipro
In the Indian market, Wipro is a leader in providing IT solutions and services for the
corporate segment in India. Wipro also has a profitable presence in niche market segments of
infrastructure engineering, and consumer products & lighting.Wipro has made a large
acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry
can be seen through their brands such as SANTOOR and CHANDRIKA. With industry
leading organic growth rates and the acquisition, Consumer care business has reached a
Revenue run rate in excess of $100 million per quarter.
Procter & Gamble India
Procter & Gamble India (PGHHCL) was incorporated in 1964 after Procter & Gamble, US,
acquired Richardson Vicks, US. Formerly known as Richardson Hindustan (the Indian
Subsidiary), it was later named as P&G. It changed its name again in 1998 to Procter &
Gamble Hygiene and Health Care in order to reflect the nature and character of the business
of the company. During 2004-05 the company has increased its installed capacity of Soaps &
Detergents and Toilet Preparations etc. by 36500 Tones and 263 Tones respectively. With
this expansion the total installed capacity of Soaps & Detergents and Toilet Preparations etc.
has increased to 108500 Tones and 5875 Tones respectively.

25. - 25 -
Nirma
Incorporated as a private limited company, Nirma was converted into a deemed public
company and then to a public limited one in Nov.'93. Nirma has a leadership presence in
Detergents, Soaps and Personal Care Products. To have a greater control on the quality and
price of its raw materials, Nirma undertook backward integration into manufacture of
Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates
(AOS), Fatty Acid, Glycerin and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma
Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents were amalgamated
with the company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned
subsidiary on 22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within
India. Nirma enjoys a share of 6.74% in soaps.
ITC
ITC, the country‘s largest cigarette maker, entered the segment last year and has made a
strong headway in a short time. According to AC Nielsen, its share has grown to 1.75% in
just five months despite the fact that many of its brands such as Superia, Fiama Di Wills and
Vivel are currently sold in only six states.
Competitor analysis
Santoor:
Santoor is the flagship brand in the Wipro Consumer Care & Lighting stable and the 2nd
largest brand of soap in India in the popular segment of the category. The brand enjoys two
decades of trust since its launch in 1986 and has grown to be counted amongst the top brands
in the Country in an intensively competitive market. Millions of women across the country
have discovered the secret of younger looking skin with Santoor. It is a truly unique soap that
combines the goodness of natural ingredients - Sandal, Turmeric and natural Skin Softeners.
Sandal provides a cooling and soothing effect that softens skin, while turmeric controls
formation of skin darkening pigments like melanin, to give skin a radiant glow. Natural Skin

26. - 26 -
Softeners make skin soft and supple. The end result, skin that is so healthy and beautiful, it
lies about your actual age.
Amongst the first brands in the Country to launch an offering with the twin ingredient
benefits of Sandal and Turmeric, Santoor has over the years moved from a purely natural
ingredient based appeal, to one of the most preferred beauty soaps of the day. Today, Santoor
is one of the fastest growing soap brands in India. Santoor is available in three variants -
Santoor (Sandal & Turmeric), Santoor White (Sandal & Almond milk) and Santoor Chandan
which is premium soap manufactured with extracts of Sandalwood oil - a favorite of
discerning consumers.
Cinthol
Cinthol the popular and much-loved brand of Godrej Consumer Products Limited (GCPL)
have been a favorite of people for many years. All different soaps in its range are having feel-
fresh fragrance and high TFM index. Control’s range covers an economic Lime-fresh, the
medium doe-soaps (spice, lime, cologne and the new ‘sport‘) and a slightly expensive
―Cinthol-Original. For decades, Cinthol-Original is one of the best soaps made in India. It
had a simple red-cover which attracts none! But was still able to sustain itself in the market.
Godrej has now launched the improved Cinthol range. Cinthol now offers a doe-range of
soaps, talc and doe-sprays in three exciting fragrances - Classic, Cologne and Sport in a
trendy new packaging. It also offers Cinthol fresh soap and Cinthol Regular soap with new
exciting packaging. The eye-catching and vibrant packaging symbolizes a sense of
adventure, zest and action. The new Cinthol range brings 24-Hour Confidence through
Active Doe Formula, which controls body odor, Powerful Dry Shield that absorbs sweat,
Ultra Scent Technology for long lasting fragrance and Freshness that revitalizes you
24x7.The new range will be available across the country at modern retail and other outlets
and will be supported by high-impact advertising on television, print, out-door, on-line and
radio.

27. - 27 -
Vivel and Superia
The Vivel Di Wills range is available in two variants. Its unique carton pack has been
developed by ITC's design team to provide a novel consumer experience. Vivel Di Wills
Sheer Radiance is enriched with Olive Oil, to provide skin luster to make it radiant. Vivel Di
Wills Sheer Crème is enriched with Shea Butter, to moisturize skin to make it soft and
supple.
The Vivel range of soaps is available in four variants:-
1) Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in providing
youthful glow to the skin.
2) Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel Vivel
beautifully soft.
3) Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in
providing clear skin.
IMC PLANNING
Mission
Shine's mission is to add Vitality to life. They meet everyday needs for nutrition; hygiene and
personal care with brands that help people feel good, look good and get more out of life.
Their deep roots in local cultures and markets around the world give them strong relationship
with consumers and are the foundation for their future growth. A key requirement is building
in the quality expectations of their consumers into their products.

28. - 28 -
Product profile
Shine soap is introduced as bathroom soap. Shine in step with the changing trends and
evolving beauty needs of the consumers, offers an exciting range of soaps and Body Washes
with unique elements to make bathing time more pleasurable. One can choose from a range
of skincare benefits like firming, fairness and moisturizing.
Shine stands for the promise of beauty and glamour as one of India's most trusted personal
care brands. Shine offers a range of soaps in different colors and world class fragrances.
Shine is a beauty soap of film stars. Shine recognized the need for a compelling message
about beauty that would resonate with women of today.
Product Category, Market Segmentation, Target Marketing and
Positioning
This section describes the category of the selected product. The chapter is organized into four
sections. Section 1 states under which category the product falls. Section 2 describes how
Shine differentiates the population and categorizes them into different segments. Section 3
analyzes which segment the company targets and why they target that specific segment.
Finally section 4 describes the process through which the company tries to capture a place in
the buyers mind i.e. the product positioning method.
Product Category
Shine falls under the category of toiletry product as a beauty soap.
Market Segmentation
Shine segments their market according to geographical areas. The population of the country
is segmented into three parts which are urban, sub urban and rural area consumers. Though
Shine is the highest selling beauty soap in Bangladesh, it does not go for traditional mass
marketing. Moreover as a beauty soap LUX does not even segment its market according to
gender.

29. - 29 -
Target Market
Shine is not a highly expensive but an affordable product. That is why the company targets
urban and sub urban upper middle and middle class people who are the second highest
population of segment of the country. From the segmentation of customer according to SEC
they target category A, B and C, because they are assumed to be financially well-off and can
afford to buy Shine.
Product Positioning
Shine obtained a good position in the buyers ‘mind through better product attributes, price
and quality, offering the product in a different way than the competitors do. The company
offers improved quality of products in the industry at an affordable price with high branding,
which ultimately helps to position the product in the buyers ‘mind as the best quality beauty
soap.
The market share of the company in the beauty soap industry is somewhere around
43%.Since in the beauty soap industry all products are of same price Unilever cannot provide
its consumers with better price but it is in a great position in reference with its packaging,
fragrances and product designing.
Tactical Marketing Tools
This chapter describes the Way Company will use the tactical marketing tools for marketing
Shine in India. The chapter comprises of four sections. This section includes a table that
shows the location of the company‘s warehouses all around the country. Finally a section
discusses the promotional activities that the company undertakes for Shine.

30. - 30 -
Product:
Shine is an internationally renowned beauty soap brand. Though manufactured in India for
the local market by Unilever India ltd, as an international brand, it maintains an international
quality for the product. Formula given by Research and Development departments in foreign
countries, Shine is produced in India from imported raw materials like sodium soap, glycerol
and different extracts according to flavors, coming from Unilever plants situated abroad.
Shine is offered in India in six different flavors which are: Shine Energizing Honey, Shine
Golden Glow, Shine Nature Pure, Shine Orchid Touch, Shine Almond Delight and Shine
Aqua Sparkle. Taking into account the convenience of its customers, the company
manufactures all variants of Shine in three different sizes, 40gm, 80gm and 120gm.
Price:
Though Shine gives its customers a lot in terms of the product itself, it cannot provide a
better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a
product with a vulnerable demand in India. A change in price has a high risk of creating price
war among the rivals which will eventually cause a loss of profit. Its prices are almost equal
to its competitor. Shine price with its major competitor. Company carries out research on
competitors ‘price and brand loyalty when it feels extreme necessity of changing price. The
brand loyalty test is an exploratory research which is known as Brand Health Check-
Up (BHCU).
Place:
Shine has a huge distribution channel all over the country as its sales reach more than 10
million pieces a year. The company has six huge warehouses, one in each division of India,
where the product goes after they are manufactured at Uttaranchal factory.
The company will not use its own fleet of transport for distributing its product. However, it
will outsource its distribution process to various third party distributors. These distributors
will then supply the product all over India to a huge number of retailers. Even though Shine

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targets the urban and sub urban middle and upper middle class people they are distributing
their products all over India because of a recent increase in demand of its product to all
segments of the population.
Promotion:
Shine will undertake a huge promotional activity to promote itself. I will spend almost 20%
to 25% of its Net Proceeds from Sales (NPC) of Shine for promotional activities.
It will include certain annual promotional campaigns like Shine Channel i Superstar and
Shine Channel i Annual Cinema Awards, which will made the product a part of the glamour
world. Since our Indian audiences are emotionally attached to its root culture and gets easily
attached or relate themselves to celebrities, so I will promote Shine by endorsing famous
Bollywood celebrities like Hema Malini, Priyanka Chopra, Kareena Kapoor, Aishwarya Rai
Bachan etc. I will not promote Shine in India for the beauty conscious females only, but it
will also be promoted as the brand for males by including world famous male celebrity
Shahrukh Khan for the advertising campaign.
Shine will spend a huge amount of money for promotion through TV commercials,
newspaper advertisements and billboards. Moreover I will also undertake small promotional
campaigns at different colleges, universities and recreational parks with winners of its Zonal
Beauty Contests.
Integrated marketing communication
A) Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a collection of
incentive tools, mostly short term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade. Whereas advertising offers a reason
to buy, sales promotion offers an incentive to buy.

32. - 32 -
Prominent Promotional schemes that will be used by Shine
1. Sales Promotion to Consumers:
Consumers are extremely complex human beings, motivated by several factors. Hence it is
important to understand a consumer's motivation given a certain product and product
category. Consumer promotions are those that are directed to the consumer. The objective of
consumer promotions is to offer the consumer some added benefit to entice him to buy the
product. There are several possible tools that I will use to promote Shine:
Sampling: As my product is new to the market, so this promotional tool is generally used
when one is introducing a product for the first time. In this case, a small quantity of the
product will be given as a sample. These samples will be distributed either at the residence of
the consumer or even at the retail outlet provided by a condition.
Quantity Deals: Here the company will offer more quantity of the same product for the
same price or a marginally increased price. For example, most of the FMCG companies
bundle 3 or 4 soaps in a pack priced at the cost of 3 soaps. The purpose is to induce the
consumer to buy more and more products at less cost. This will benefit both the customers
and company. Customers can have 4 soaps at the cost of 3 whereas company can slightly
decrease their profit but after selling their products at large quantity their profit will rise
(Economies of Sales).
In-Product gift: In this case the gift item is attached to the product from outside. E.g.:
once Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer
from Delhi. According to the promotional offer that Lux unveiled in October 2000, a
consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win an
additional 30 gm gold. The first 10 callers every week got a 30 gm gold each. This offer
helped lux to increase its sales rapidly. I will also use this type of tool to promote my product
and hence increase the sales of SHINE.

33. - 33 -
2. Sales promotion to Traders:
Trade promotions are those that a company runs to elicit a better and quicker response from
the trade. Some of the trade promotional tools that I will be using are:
On-Consignment Sales: This tool is normally used by companies that are new entrants
and are not known in the marketplace. Here companies encourage traders to stock their
products on an “on-consignment” basis and pay only when the product moves off the
shelves. My company will use this tool to encourage the new retailers to sell my product and
pay after the product moves off the shelves.
Dealer gifts: Personal motivation is very necessary in order to boost the sales because if
the retailer is happy that the company cares for him, so the retailer will work hard to sell the
product of the company by telling the customers that it is the best product that will benefit
them. I will use this tool by giving dealers/retailers gifts on the occasions of EID, Diwali,
New Year so that they get more loyal to our product and maintain good relations with them.
Point-of-sale Material: Traders will be given attractive point-of-sale material for
displaying Shine. We will provide shelf stickers, streamers, attractive stands to hold the soap
etc. Play the supercharged version of the hit puzzle game, Bejeweled. Create rows of 3 or
more identical stones and you could win a trip for two to a five-star Resort in Goa.
B) Advertisements:
There are number of sources available for passing the product message. These are as follows:
1) Television
2) Outdoor (Billboards)
3) Magazines
4) Newspapers

34. - 34 -
5) Internet
Advertising Campaign:
The advertisements will run in a campaign where a complete program of advertisements will
be aired by parts from time to time. The first base of the advertising campaign will be
advertising strategy, where a plan will be devised to maintain a viable fit between my
organization's objectives and resources and changing market opportunities. Advertising
strategy is the ‘message' that a company gives to solve a communication-related problem.
My company's advertising strategy is to create awareness and brand equity of the shine. The
next step is to create a ‘Big idea' where an advertiser selects an idea for communicating the
strategic message in a creative way. It is a link between strategy and creative execution. It
may be also called a central theme. The central theme of my advertising campaign will be
how men are magnetically attracted towards women using Shine soap. Once the big idea is
finalized, then it follows its creative execution. Creative execution deals with the physical
form of an advertisement- story, script, copy, art, music, overall production. The creative
execution of Shine's ad will include creative tagline, elements of wit and humor, role of
glamorous actress and models using shine soap while bathing and then the media will be
asking them what is their beauty's secret and like that.
Choice of Strategic Approaches:
Unique Selling Proposition: A brand may have a true and distinctive competitive
advantage called the Unique Selling Proposition (USP). The USP is a distinctive advantage
that is both valuable to the brand's customers and is unexploited by its competitors. The USP
of Shine will be a guaranteed effect of fairness of the skin, and its ingredients that are made
of no chemicals.

35. - 35 -
C) Creative Execution on Radio:
The most creative advertisement can be made on Radio, if its script is written creatively. The
power of radio in country like India is much more than TV. We always notice that during
cricket matches, a number of companies promote their products on radio, like sound of the
whistle which a person might think of Hawkins Pressure Cooker. It is because Hawkins
advertisement on radio has been created well that is why people still remember the sound of
Hawkins. Another example is of jingle of titan, which can be easily recalled by a person who
has heard it on radio. In the same way, I will promote my product on radio by writing a
creative script and then executing it on radio with the help of sounds, voices and jingles.
D) Communication through Internet:
Internet is the most advanced medium that a company can use effectively to boost its sales
and create a distinctive image or brand equity. Many companies have started to give online
advertisements. It can be on e-mails (yahoo, Gmail etc.), networking sites (orkut, Facebook,
hi5 etc.) or may be any form possible on the Internet.
The message in these types of ads will be same as the company has made to produce an
integrated marketing communication. The advertisement of Shine on Internet will take these
forms:
a) Translucent Float banner advertisements:
These types of advertisement are displayed mostly on the opening up of e-mail ids. Like in
the above picture, Shine will also use translucent float banner advertisement because this
type of advertisement will have a good impact on the audience that they remember the
product when they use their e-mails. In this advertisement, a screen would appear before a
person prompting him/her to fill a form of feedback or to enroll in an online contest.
b) Virals: Like traditional viral marketing, Internet Virals also rely on spreading the buzz
online. Viral advertising refers to people passing on interesting and entertaining promotional
content, generally sponsored by a brand to create awareness, build equity or get publicity.

36. - 36 -
Shine will use the viral advertisement by using averages ( using video games to advertise a
product), flash games, messenger messages ( on yahoo).

37. - 37 -
COMPANY PROFILE
About The Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of
India's leading business houses with multiple businesses spanning across the consumption
space. While retail forms the core business activity of Future Group, group subsidiaries are
present in consumer finance, capital, insurance, leisure and entertainment, brand
development, retail real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million
square feet of retail space in over 71 cities and towns and 65 rural locations across India. The
group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home
Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the
Year - 2007, by the US-based National Retail Federation, the largest retail trade association
and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in
Barcelona.
Future Group believes in developing strong insights on Indian consumers and
building businesses based on Indian ideas, as espoused in the group's core value of
'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.
About FutureBazaar.com
FutureBazaar.com is the e-commerce arm of the Future Group. FutureBazaar
provides an integrated shopping site where consumers are able to buy products from our
flagship stores including eZone, Pantaloons and Big Bazaar online and get home delivery of
products.
FutureBazaar delivers across more than 1500 cities and towns in India covering
16,000 pin codes. FutureBazaar carries genuine products and offers manufacturer's warranty
(as opposed to Seller's warranty) which most other sites offer. FutureBazaar offers products

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where the complete supply chain is managed by Future Group entities unlike other sites that
are marketplaces.
By the virtue of being a part of Future Group, FutureBazaar is able to offer a wide range of
genuine products at very competitive prices, confidence of buying from a trusted source and
the convenience of returning in our physical stores.
About Big Bazaar
Big Bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for the Indian
customers.
At Big Bazaar, you will definitely get the best products at the best prices - that's what
we guarantee. With the ever increasing array of private labels, it has opened the doors into
the world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete your shopping experience.
About Pantaloons
Pantaloons are among India's largest chains of fashion stores. Pantaloons Fresh
Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that
are in sync with the hopes and aspirations of discerning young and 'young-at-heart'
consumers.
Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how
fashion is followed internationally. This 'fresh fashion' destination allows customers to shop
for the latest in fashion apparel and accessories throughout the year in an attractive and
visually stimulating ambience.
Pantaloons Fresh Fashion stores have presence with stores not just in Metros but also
in smaller towns. All stores have a wide variety of categories like casual wear, ethnic wear,
formalwear, party wear and sportswear for Men, Women and Kids.

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About eZone
eZone, with the catch phrase 'experience electronics' is an experience led lifestyle
format that brings together the best in national and international consumer electronic and
durables brands in a family-centric environment.
Typically in excess of 12,000 square feet in size, an eZone store truly enables you to
experience electronics, through three dedicated zones - Liberation Zone, Experience Zone
and Home Zone. The Liberation Zone offers personal products like computers, laptops,
handy cams, MP3 players and mobile phones. While entertainment products such as Plasma /
LCD, Flat TV's, Home Theatre systems, DVD players, and Stereo systems are displayed in
the Experience Zone. And in the Home Zone segment, one gets to pick electronic goods of
his or her choice including Refrigerators, Air Conditioners, washing machines and
Microwave ovens among other kitchen related appliances.
eZone is not only about showcasing electronics products and gadgets, but providing
you with a complete shopping experience through touch & feel, allowing you to pick and
choose from an array of best of brands under one roof. eZones are primarily stand alone
concepts, but are also present within the Central malls.
The Big Bazaar is a useful place to find cheap household items, clothes, and food all
under one roof. However, the chaos and crowds often make shopping there a challenge.
Pros
 Low prices.
 Great sales and promotions.
 Wide range of products under the one roof.
 Many stores.
Cons
 Overcrowded.
 Checkout can be extremely slow.

40. - 40 -
 Complaints of poor customer service and overcharging.
 Quality is variable.
Description
 Outlets in around 60 locations across India.
 Sells furniture, electronics, clothes, cookware, cosmetics, household items, food,
gifts, jewelry, and books.
 Also has special Food Bazaar outlets.
 Most stores open from 10 a.m. until 9.30-10 p.m. daily.
Guide Review - Review of Big Bazaar India
There was a time not so long ago that large department stores were a completely
foreign concept in India -- but not anymore. The Big Bazaar is one such department store to
have set up shop across the country. Since its first outlet opened in Kolkata in late 2001, the
Big Bazaar has spread to towns and cities at an alarming rate.
These multi-level shopping meccas stock everything from food to fridges, and
cookware to clothes. However, the Big Bazaar isn't your ordinary department store. It's been
especially designed to appeal to the Indian consumer. You may be thinking, what does that
mean? In short, organized chaos.
With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere cheaper or better
than this!"), the Big Bazaar targets itself directly at the average Indian's love of following the
crowd and scrambling for a good discount.
You won't find neatly ordered aisles at the Big Bazaar. Instead, stores are laid out to
replicate a market environment, with items all thrown in together. Promotions such as "Sabse
Saste Teen Din" (Cheapest Three Days) and "Purana Do, Naya Lo" (Give Old, Take New)
result in shoppers flooding the stores, to the point that some stores have become so
overcrowded they've had to close.

41. - 41 -
If you visit the Big Bazaar in the daytime during the week, it is possible to have a
deceptively pleasant and hassle free shopping experience.
However, don't make the mistake of going there during a sale, on holidays, evenings,
or on Sunday. When I did this, I had to wait for almost an hour just to be served at the
checkout. Forget about getting the all items I wanted, I was happy to get out of there in one
piece!
I've also found that the full price is all too often charged on sale items, so do check
your receipt to make sure that discounts have been properly recorded.

42. - 42 -
THEORITICAL FRAME WORK
SALES PROMOTION STRATEGY
Sales are the lifeblood of a business, without sales there would be no business in the
first place; therefore it is very important that if a business wants to succeed, it should have a
sales promotion strategy in mind. The primary objective of a sales promotion is to improve a
company’s sales by predicting and modifying your target customer’s purchasing behavior
and patterns.
Sales promotion is very important as it not only helps to boost sales but it also helps a
business to draw new customers while at the same time retaining older ones. There are a
variety of sales promotional strategies that a business can use to increase their sales, however
it is important that we first understand what a sales promotion strategy actually is and why it
is so important.
A sales promotion strategy is an activity that is designed to help boost the sales of a
product or service. This can be done through an advertising campaign, public relation
activities, a free sampling campaign, a free gift campaign, a trading stamps campaign,
through demonstrations and exhibitions, through prize giving competitions, through
temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters,
and emails.
The importance of a sales promotion strategy cannot be underestimated. This is
because a sales promotion strategy is important to a business boosting its sales.
When developing a sales promotion strategy for your business, it is important that
you keep the following points in mind.
 Consumer attitudes and buying patterns
 Your brand strategy
 Your competitive strategy
 Your advertising strategy

43. - 43 -
 Other external factors that can influence products availability and pricing.
There are three types of sales promotionstrategies:
 A push strategy
 A pull strategy or
 A combination of the two
Push Strategy:
A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers to sell
your products and services to the consumer by offering various kinds of promotions and
personal selling efforts. What happens here is that a company promotes their product/services
to a reseller who in turn promotes it to another reseller or to the consumer. The basic
objective of this strategy is to persuade retailers, wholesalers and distributors to carry your
brand, give it shelf space, promote it by advertising, and ultimately ‘push’ it forward to the
consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials,
contests, discounts, and specialty advertising items.
Pull Strategy:
A ‘pull’ sales promotion strategy focuses more on the consumer instead of the reseller
or distributor. This strategy involves getting the consumer to ‘pull’ or purchase the
product/services directly from the company itself. This strategy targets its marketing efforts
directly on the consumers with the hope that it will stimulate interest and demand for the
product. This pull strategy is often used when distributors are reluctant to carry or distribute a
product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or
rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase
displays.

44. - 44 -
Combination of Two Strategies:
A ‘combination’ sales promotion strategy is just that; it is a combination of a push
and a pull strategy. It focuses both on the distributor as well as the consumers, targeting both
parties directly. It offers consumer incentives side by side with dealer discounts.
The Short term Impact of Promotions
Let’s have look at the impact of promotions on purchase behavior during the promotional
period i.e. the week or the month when the promotion was being run. The majority of the
empirical studies have focused on the impact of promotions in the short term. The key
findings across the studies are discussed below.
Temporary price reductions (price off) substantially increase sales:
There is ample evidence to show that promotions lead to dramatic increases in sales of
promoted brand in the short term. Studies have consistently reported high sales effects and
high price elasticity of brands which are on promotion. The economic rationale for the
promotional response is clear – temporary price cuts increase the value of the product to the
consumer and it leads to immediate action. Sales boost can be quantified on the basis of
brand switching, primary demand expansion and consumer stockpiling during a promotion.
Sales Promotion leads to brand substitution with the product category:
The sales ‘bump’ during the promotional period into sales due to brand switching, purchase
time acceleration and stockpiling. Studies on brand switching have shown that brand
switching effects within a category are asymmetric such that promotions on higher quality
brands impacts weaker brands disproportionately. During a promotion, higher quality brands
induce a large number of consumers to switch to them as compared to lower quality brands.
One explanation advanced for this finding by researchers is that large share brands have
higher brand equity and attract switchers more than low share brands.

45. - 45 -
Sales Promotion leads to purchase acceleration/stockpiling effects:
In response to a promotion, consumers may buy more quantity of the product
category or buy at an earlier time than usual (purchase acceleration effect). If consumers buy
extra quantity during a promotion or earlier than normal, then they are not in the market to
buy products once the promotion is over. Thus purchase acceleration is demonstrated through
A lengthening of inter purchase times after a promotion. Purchase acceleration was more
likely to be exhibited in increased purchase quantity than in shortened inter purchase times.
Results showed that consumers mostly made up for the large quantity purchased by waiting
longer until purchasing again. Results indicated that heavy users tended to accelerate
purchases more than light users. There was negligible difference in the acceleration
propensities of high versus low income groups.
Sales Promotion leads to primary demand expansion for a category:
While it was traditionally assumed that consumption rates remain fixed during and
after a promotion, but from this project I came to know that promotions also have a primary
demand expansion effect. When a primary demand expansion occurs, promotion induced
increase in purchase quantities does not significantly extend the time till the next purchase in
the category occurs, thus indicating that there has been an increase in consumption
promotions induced consumers to buy more and consume faster. It is found that promotion
induced inventory temporarily increased consumption rates within the category e.g. in
categories such as bacon, salted snacks, soft drinks and yogurt exhibited primary demand
expansions as a result of promotion while bathroom tissue, coffee, detergent and paper
towels exhibited stockpiling only.

46. - 46 -
Sales Promotions affectsales in complementary and competitive
categories:
From this project it is found that promotion not only increases sales of main product
but it also lead to increase in sales of complementary categories. Found strong cross
relationships between products of the promoted product category indicating brand
substitution behavior. They stated that retail price promotions work as a form of implicit
price bundling whereby the consumer surplus is transferred from the promoted item to non
promoted items. Also found that retail price promotions create significant complementary
and substitution effects within the store.
The Long term Impact of Promotions:
Strategies are builds to reap the benefits for longer period of time; same is true in sales
promotion strategies. Let us see impact of promotions effort and study the impact over a
longer time period e.g. 4-6 months or even a few years after a sales promotion campaign.
The result showed that consumer promotions for leading brands of established packaged
products had no after-effects on the brand’s sales or repeat buying loyalty. The extra sales of
a brand while promoted came virtually all from the brand’s existing long-term customer base
for which the experience of buying the promoted brand was nothing new.
It is found that although the short term effects of promotions are strong; these promotions
rarely exhibit long term effects. It is observed that each sales component generally lacked a
permanent effect and the effect of promotion was short lived and increase in promotions
affected consumers’ stockpiling decisions in the long run. They found that the combined
short and long-term elasticity of promotions was zero. The stockpiling induced by a
promotion was essentially offset by reduced demand in the long term. Thus increased sales
were more a result of sales borrowed from the future than increased consumption

47. - 47 -
SWOT Analysis of FMCG Sector
Strengths:
 Well-established distribution network extending to rural areas.
 Strong brands in the FMCG sector.
 Low cost operations.
Weaknesses:
 Low export levels.
 Small-scale sector reservations limit ability to invest in technology and achieve
economies of scale.
 Several "me-too’’ products.
Opportunities:
 Large domestic market.
 Export potential.
 Increasing income levels will result in faster revenue growth..
Threats:
 Imports.
 Tax and regulatory structure.
 Slowdown in rural demand.

48. - 48 -
DATA ANALYSIS AND INTERPRETATIONS
Q1. Which brand of Soap do you use for bath?
a) Lux b) Hamam c) Life boy d) Nirma e) Others
TABLE NO: 5.1
Source: Sample Survey
INTERPRETATION:
From the above table it is observed that majority say 41% of the respondents are
using lux soap for their bath. And 14% of the respondents are using life boy for their bath.
And 8% of the respondents are using Nima soap for their bath. And 34% of them prefer other
soaps
Bathing –soaps Respondents Percentage
Lux 41 41%
Hamam 3 3%
Lifebuoy 14 14%
Nima 8 8%
Others 34 34%

49. - 49 -
Graph no: 5.1
Bathing soaps
0
10
20
30
40
50
Respondents 41 3 14 8 34
Lux Hamam Lifebuoy Nima Others

50. - 50 -
Q2. Do you always buy the same brand of Soap?
a) Yes b) No
Table no: 5.2
Particulars Respondents Percentage
Yes 56 56%
No 44 44%
Source:SampleSurvey
INTERPRETATION:
The objective behind the formation of this question is to know the level of brand
loyalty of the consumers towards the brands of soaps available in the market. The above
figure shows that on 56% of the respondents are loyal to their brands of detergent/soap. And
44% of the respondents are saying no.
Graph No: 5.2
Brand loyal
0
10
20
30
40
50
60
Respondents 56 44
Yes No

51. - 51 -
Q3. Which factors do you normally consider while purchasing a particular brand of
Soap / Detergents?
a) Fragrance b) Quality c) Company image d) Price e) Packaging f) others
Table no: 5.3
Factors
Bathing
soap Percentage
Fragrance 19 19%
Quality 33 33%
Company image 16 16%
Price 23 23%
Packaging 6 6%
Others 3 3%
Source: Sample Survey
INTERPRETATION:
From the above table it is observed that the respondents are purchasing the products
based on some factors. Majority 33% of them are seeing quality. And 23% of them are seeing
price. 19% of them are seeing fragrance, 16% of them are attracted by the company image.
6% of them are by packaging and 3% on others.

52. - 52 -
Graph no: 5.3
Factors affecting purchase behavior
0
10
20
30
40
Bathing soap 19 33 16 23 6 3
Det.powder 18 36 13 19 11 3
Fragrance Quality
Company
Image
Price Packaging Others

53. - 53 -
Q4. Do you consider promotional schemes while purchasing a particular brand of
Soap?
a) Yes b) No
Table No: 5.4
Source: Sample Survey
Interpretation:
from the above table it is observed that majority 78% of the respondents are considering
promotional schemes. And 22% of them are not considering promotional schemes while
purchasing the product.
Graph no: 5.4
Particulars Respondents Percentage
Yes 78 78%
No 22 22%
Effect of schemes purchase behavior
0
20
40
60
80
100
Respondents 78 22
Yes No

54. - 54 -
Q5. Which of the following promotional schemes you have come across so far?
a) Coupons b) Price off c) Freebies d) Scratch cards e) Lucky draw f) Bundling
g) Extra qty.
Table No: 5.5
Promotional
schemes Respondents
Percentage
Coupons 15 15%
price off 25 25%
Freebies 12 12%
scratch cards 11 11%
lucky draw 9 9%
Bundling 8 8%
extra qty. 20 20%
Source: Sample Survey
INTERPRETATION:
From the above table it is observed that Majority, 25% of them are familiar with price
off, 15% of them are with coupons, 12% with freebies, 11% of them with scratch cards, 9%
with lucky draw, 8% with bundling and remaining 20% is from extra quantity.

55. - 55 -
Graph No: 5.5
Familiarity of promotional Schemes
0
20
40
60
80
100
Respondents 16 84 24 12 9 31 44
Coupons Price off Freebies
Scratch
Cards
Lucky draw Bundling Extra qty.

56. - 56 -
Q6. Which medium do you feel is suitable to promote the various promotional schemes?
a) Radio b) TV c) Newspaper
Table no: 5.6
Source Respondents Percentage
Radio 11 11%
TV 60 60%
Newspaper 29 29%
Source: Sample Survey
INTERPRETATION:
From the above table shows that the majority say 60% of them are attracted by TV as
an effective medium for promoting the product. 29% of them are with Newspaper. And
remaining 11% is from Radios.
Graphno:5.6
0
10
20
30
40
50
60
70
Radio TV Newspaper
Series1
Series2

57. - 57 -
Q7. Is there any existing scheme on the Soap you are currently using?
a) Yes b) No
Table no: 5.7
Particulars Respondents Percentage
Yes 58 58%
No 42 42%
Source: Sample Survey
Interpretation:
The answer of the respondents give idea about the awareness of the promotional
schemes offered in the market on their existing soaps and detergents. In this situation 42% of
the people are not aware or having idea about the promotional schemes running into the
market. 58% of them are aware about various schemes on the soap.
Graph no: 5.7
Existing scheme onthe Soap
0
10
20
30
40
50
60
70
Respondents 58 42
Yes No

58. - 58 -
Q8. If you get an attractive promotional offer in the product other than of your choice
will you switch over?
a) Yes b) No
Table no: 5.8
Particulars Respondents Percentage
Yes 73 73%
No 27 27%
Source: Sample Survey
Interpretation:
It shows the level of brand loyalty among the consumers. The result clearly shows
that out of 100, 73 people are ready to switch over to another brand if they find better
promotional schemes which suits their budget means more qyt + less cost + quality.
Combination of all these schemes will run better in the market. Only 27% of them feel brand
loyalty towards the product.
Graph no: 5.8
Switching behavior
0
10
20
30
40
50
60
70
80
Respondents 73 27
Yes No

59. - 59 -
Q9. If you get an attractive promotional offer in the product other than of your choice
Which factors are attracts more?
a) Cost+qty b) Quality c) Satisfaction d) Brand loyal e) More benefit/budget
Table no: 5.9
Source: Sample Survey
Interpretation:
Above question it gives specific reasons for switching to other products. It shows that
extra quantity with less or same price, more satisfaction, quality and other factors influence
consumers to switch over too other brands. Majority say 58% of them switching to other
brands because of more benefits and budget, 18% of them because of cost+ quantity, 17% of
because of quality, and very less like 2%, 5%,because of satisfaction and brand loyalty.
Particulars Respondents Percentage
Cost+qty 18 18%
Quality 17 17%
Satisfaction 2 2%
Brand loyal 5 5%
More
benefit/budget 58 58%

60. - 60 -
Graph no: 5.9
Reason
0
10
20
30
40
Respondents 18 17 2 5 58
Cost+qty Quality Satisfaction Brand loyal
More
Benefit/bud

61. - 61 -
Q10. Since how long are you in this business?
a) 1-5 Years b) 5-10 Years c) More than 10 years
Table no: 5.10
Particulars Respondents Percentage
1-5 Years 24 24%
5-10 Years 27 27%
More than 10
years
49 49%
Source: Sample Survey
INTERPRETATION:
This question gives idea about the benefit to the retailers who are on the market from
long period of time and the benefits they are getting more as compare to others. It also shows
their experience in the field and the services they are providing too their new and regular
customers. It also gives idea about the benefits they are gaining for wholesalers and direct
from the company.
Graph no: 5.10
0
10
20
30
40
50
60
Series1 24 27 49
1-5 Years 5-10 Years More than 10 years

62. - 62 -
Q11. Name the Soap you stock for?
a) Nirma b) HUL c) P&G d) Godrej e) Others
Table No: 5.11
Source: Sample Survey
INTERPRETATION:
It gives idea about the capacity of the retailers to stock the goods and also the variety
of the products they are stocking. It will also make clear the demand of the goods in their
stores and the selling of the product in market. Most of the retailer stocks all types of soap
and detergent.
Companies Respondents Percentage
Nirma 22 22%
HUL 24 24%
P&G 20 20%
Godrej 18 18%
Others 16 16%

63. - 63 -
Graph no: 5.11
0
5
10
15
20
25
30
Nirma HUL P&G Godrej Others
Series1
Series2

64. - 64 -
Q12. Rank the following factors that customers look for in the purchase of Soap?
a) Fragrance b) Quality c) Company image d) Price e) Packaging f) others
Table no: 5.12
Factors 1 2 3 4 5 6
Fragrance 3 24 33 22 10 8
Quality 66 23 7 3 1 0
Company
Image
9
18 34 24 11 4
Price 17 28 24 16 6 9
Packaging 4 5 2 27 38 24
Others 1 2 0 8 34 55
Source: Sample Survey
INTERPRETATION:
It gives an idea about the priority the influencing factors to the consumers and also
the weight age of that factor over other factors. In the above result people are more quality
and price oriented. On the other hand people are also conscious about the company image.
Because sometimes the consumer remember that name of the product by the company name
and also from the past performance of that company. Fragrance and packaging are not
influencing factor as per the respondents.

65. - 65 -
Graph no:5.12
Bathing Soap
0
10
20
30
40
50
60
70
Fragrance 3 24 33 22 10 8
Quality 66 23 7 3 1 0
CompanyImage 9 18 34 24 11 4
Price 17 28 24 16 6 9
Packaging 4 5 2 27 38 24
Others 1 2 0 8 34 55
1 2 3 4 5 6

66. - 66 -
Q13. Do you suggest customers to purchase a certain brand?
a) Yes b) No
Table no: 5.13
Particular Respondents Percentage
Yes 33 33%
No 67 67%
Source: Sample Survey
INTERPRETATION:
In above Table 67% of retailer are not suggest to purchase particular brand because of
personal relation or that customer are brand loyal. While 33% of the retailer are suggesting
the consumers to buy particular brand. There could be many reasons like, extra margin,
relations with consumers and quality of the products which retailer may get the benefit of the
same.
Graph no:5.13
Suggestion
0
10
20
30
40
50
60
70
80
Series1 33 67
Yes No

67. - 67 -
Q14. If Yes why?
a) High margin b) Quality c) Relationship d) No reason
Table no: 5.14
Particular Respondents Percentage
High
margin
9 9%
Quality 17 17%
Relationship 7 7%
No reason 67 67%
Source: Sample Survey
INTERPRETATION:
In above table it is clear that for margin and of better relations with
consumers and to provide quality product to consumers they suggest consumers to buy
particular brand. For the company it may be helpful to target such retailers to sell their
product in the market easily.
Graph no: 5.14
If yes
0
10
20
30
40
50
60
70
80
Respondents 9 17 7 67
High margin Quality Relationship No reason

68. - 68 -
Q15. Do customers look for various schemes in the product?
a) Yes b) No
Table no: 5.15
Particular Respondents Percentage
Yes 92 92%
No 8 8%
Source: Sample Survey
INTERPRETATION:
This gives a real helpful data for checking the effect of sales promotions in the market
and how seriously consumers follow the promotions before they go for purchase particular
brand. The above result shows that only 8 out 0f 100 didn’t go for the promotion. Majority
say 92% of the people go for various schemes in product.
Graph no: 5.15
Customers look for various schemes
0
20
40
60
80
100
Respondents 92 8
Yes No

69. - 69 -
Q16. If yes which schemes?
a) Coupons b) price off c) Lucky draw d) Bundling offer
Table No: 5.16
Source: Sample Survey
INTERPRETATION:
The above stated results show the demand of various types of promotional schemes in
the market by the consumers. Almost all types of schemes are being demanded by the
consumers in the market but there are three major schemes which consumers generally look
at the time of purchase or before that. Price off, product bundling and lucky draws are more
demanded by the consumers over others scheme
Promotional
Schemes
Respondents Percentage
Coupons 6 6%
Price Off 75 75%
Lucky Draws 14 14%
Bundling Offer 5 5%

70. - 70 -
Graph no: 5.16
0
10
20
30
40
50
60
70
80
Coupons Price Off Lucky Draws Bundling Offer
Respondents
Percentage

71. - 71 -
Q17. Which Trade Promotions do various companies offer?
a) Extra Margin b) Extra Units c) Credit facility d) Gifts e) Promo. Exp.
Table no: 5.17
INTERPRETATION:
From the above table it is observed that Godrej Company is using 26% extra margin as a
trade promotion, 20% is as an extra units, 24% is as a credit facility, 18% is as a gifts and
12% as a promotional expenditure. and other companies also using all these trade
promotions.
GODREJ HUL P&G OTHERS
Extra Margin 26 25 28 27
Extra Units 20 21 32 31
Credit facility 24 25 18 17
Gifts 18 19 13 14
Promo. Exp. 12 10 9 11
PERCENTAGE 100% 100% 100% 100%
Source:SampleSurvey

72. - 72 -
Graph no: 5.17
0
5
10
15
20
25
30
35
GODREJ HUL P&G OTHERS
Extra Margin
Extra Units
Credit facility
Gifts
Promo. Exp.
Trade Promotions do various companies

73. - 73 -
FINDINGS
Sales Promotion, a short-term inducement, offered to a consumer or trade has gained
momentum as a promotional tool world over. It represents nearly three fourth of the
marketing budget at most consumer product companies. Sales promotions can enhance
consumers’ self-perception of being “smart” or a “good” shopper
 FMCG are such a market where the level of loyalty remains low and this is because
of many reasons.
 Quality as the most influencing factors in the purchase decision while price is also an
important for purchase decision.
 Schemes always attract more and more consumers towards particular brand.
Simultaneously it gives idea about the factors which consumers look most in the
product before they make final decision
 Price off and extra quantity is the two main offers/schemes which consumers have
came across at the time of purchase
 TV as the best media to market the product which will cover majority of the viewer
ship. On the second place it shows news papers as the media to promote the product
in the market
 People are not much aware of the schemes which continue in the market it may be
because of the present stock of the product at their place.
 1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the
market.
 People are ready to switch over to another brand if they find better promotional
schemes which suits their budget means more qyt + less cost + quality.
 Extra quantity with less or same price, more satisfaction, quality and other factors
influence consumers to switch over too other brands.
 Retailer stocks all types of soap and detergent because of competition.

74. - 74 -
 People are more quality and price oriented.
 Consumer remember that name of the product by the company name and also from
the past performance of that company
 Consumer remembers that name of the product by the company name and also from
the past performance of that company
 Retailers are not suggest to purchase particular brand because of personal relation or
that customer are brand loyal
 Margin and of better relations with consumers and too provide quality product to
consumers they suggest consumers too bye particular brand.
 Customers are looking for any type of the promotions on the product before them
going to purchase.
 Price off, product bundling and extra quantity are more demanded by the consumers
over others schemes.
 NIRMA is mainly offering credit facility which is offered by all major players it may
differ in the time limit of the credit.
 HUL attracts more consumers through such promotions, such as display of the
product, banners etc.

75. - 75 -
SUGGESTIONS
 The findings of the empirical study indicate that unless the brand to be promoted
is in the consideration set of the consumer, sales promotion by itself is unlikely to
have any major impact. Clearly this shows that managers need to invest into brand
building exercise so that his/her brand appears in the consideration set of the
target consumers. Only after this should he spend time, money and energy on
sales promotion activities.
 Sales promotion should not be used in isolation but need to be integrated with
other tools and in line with the overall positioning of the brand. Also the
importance of the role of mass media came out clearly in the study.
 Companies need to create sufficient awareness about sales promotion schemes
through mass media in order to create awareness. FMCG products are low
involvement products characterized by switching behavior. Also the person going
to the shop for the purchase of soap is the final decision maker of the brand.
Hence it is essential that companies need to design attractive, striking, visible
POPs for scheme announcements.
 With respect to nature of scheme, the finding suggested that premium (free gift)
was popular with companies. While both retailers and consumers preferred price
offs. So it is necessary that the perceived value of a free gift has to be appealing
and high for the target consumers.
 Repetitive use of the same premium for a prolonged period may have negative
effect on the loyal customers. When the company is giving its own product free as
premium, it needs to ensure the quality of the product from it as it is likely to
jeopardize the image of both its products.
 The findings exhibited that both the retailers and consumers perceived that sales
promotion activities carried out by the companies for increasing sales in short
term and clearing excess stocks. What it implies is that companies need to use
sales promotion synergistically and communicate so that they provide value to the
target audience and enhance brand quality/image perceptions.

76. - 76 -
 Companies need to systematize information flow regarding sales promotion
activities particularly at dealer and retailer level. Ensuring proper information
flow and devising checks and measures to reduce misappropriations and
implementation flows should be considered critical aspects for the success of
sales promotion activities by the companies. As retailing is fragmented, direct
reach by companies is next to impossible. Through dealers and proper feedback
mechanism, companies keep in touch with the market.
 From the study it was found that smaller retailers felt neglected and not enthused
to implement the schemes, particularly when additional handling, stocking,
accounting was required on the part of a retailer without compensatory margins. It
can be seen that the retailer and consumer perceptions matched with respect to
preferences of schemes, underlying motivations and role of mass media. This
implies that the retailer would be a rich source of information about the consumer
and the likely response to sales promotion activities.
 Developing a system to tap such responses from time to time both at retailer and
consumer level would be helpful for planning future sales promotion activities. In
order to build trust and commitment companies should tap preferences,
perceptions of retailers as well as consumers.

77. - 77 -
SUMMARY
So far as FMCG market is concern there is new trend is emerging known as Joint sales
promotion. Actually it is old concept but it was more prevailing in durable products now it is
coming intro non-durable goods also. When any sales promotion scheme either for trade or
consumer is announced by more than one company and /or more than one brand of the same
company, it is referred as joint sales promotion or horizontal co-operative sales promotion or
cross promotion or umbrella sales promotion.
Classification of joint sales promotion:
 Use complementarily due to natural use
 New use catering complementary relationships
 Commonality of need due to use time
 Tie-up of a new /slow moving brand with an established brand
 Target market commonality
 Seasonal demand
 Distribution commonality
 Targeting new segment
 Derived demand
 Countering competitive joint sales promotions

78. - 78 -
CONCLUSION
The study reflects that the use of sales promotion undeniably has increased over the
years in India. Future holds lot of promise for such schemes across wider range of product-
markets. Sales Promotion has ceased to be major differentiator at least in the metros, with
almost all companies offering similar freebies and gifts. As a result now marketers have to
find out some innovative ways of sales promotion to differentiate from competitors.
Currently Price off and Bye one get one free offers are very effective to attract the consumers
towards the products.
We have noted that these kind of promotional tools are useful for short term increase
in sales and to induce first trial. These types of promotional schemes should be consistent and
changed from time to time depending upon season and competitor’s schemes. With the
Increasing number of supermarket, the branded packaged goods work as silent sales person.
So in such stores, sales promotion plays a more effective role in stimulating consumers’
demands.
One of the very important facts we came to know from this project is that sale of
goods which contain large quantity and having big packaging e.g. detergent are stagnating
because consumer prefer to buy small pack goods, the reasons are: small pack goods reduce
risk of bad quality, It had low cost or say price, and last but important factor i.e. mentality to
purchase just to try first. Sales of small pack goods are quite high, but from the company’s
point of view small pack goods is less profitable compare to large pack goods. So here
marketer tries to increase sales of large pack goods by using sales promotion tactics like price
off and percentage extra.

79. - 79 -
BIBLIOGRAPHY
1. Marketing Management -- Philip Kotlar, Published by Prentice hall of India Pvt..
2. Industrial Marketing -- Richard M. Hill, Ralph S. Alexander and James Cross
A.I.T.B.S publishers.
3.Information collected from the Management of BIG BAZAAR, Hyderabad.
4.Retail Management – S.C.Bhatia, Atlantic Publishers & Distributers (p) ltd
Magazines referred:
 India Today
 Business World
Websites referred:
 www.google.co.in
 www.wikipedia.org
 www.big bazaar .com
 www.future bazaar.com
 www.cii.in
 www.managementparadise.com

80. - 80 -
QUESTIONNAIRE
Q1. Which brand of Soap do you use for bath?
a)Lux b)Hamam c)Life boy d)Nirma e)Others
Q2. Do you always buy the same brand of Soap?
a) Yes b) No
Q3. Which factors do you normally consider while purchasing a particular?
Brand of Soap?
a) Fragrance b) Quality c) Company image d) Price e) Packaging f) others
Q4. Do you consider promotional schemes while purchasing a particular brand of
Soap?
a)Yes b)No
Q5. Which of the following promotional schemes you have come across so far?
a) Coupons b) price off c) Freebies d) Scratch cards e) Lucky draw f) Bundling
g) Extra qty.
Q6. Which medium do you feel is suitable to promote the various promotional schemes?
a) Radio b) TV c) Newspaper
Q7. Is there any existing scheme on the Soap you are currently using?
a)yes b)no
Q8. If you get an attractive promotional offer in the product other than of your choice
will you switch over?
a)yes b)no
Q9. If you get an attractive promotional offer in the product other than of your choice
Which factors are attracts more?
a) Cost+qty b) Quality c) Satisfaction d) Brand loyal e) More benefit/budget

81. - 81 -
Q10. Since how long are you in this business?
a) 1-5 Years b) 5-10 Years c) More than 10 years
Q11. Name the Soap you stock for?
a) Nirma b) HUL c) P&G d) Godrej e) Others
Q12. Rank the following factors that customers look for in the purchase of Soap ?
a) Fragrance b) Quality c) Company image d) Price e) Packaging f)others
Q13. Do you suggest customers to purchase a certain brand?
a)yes b)no
Q14. If Yes why?
a) High margin b) Quality c) Relationship d) No reason
Q15. Do customers look for various schemes in the product?
a) Yes b) no
Q16. If yes which schemes?
a) Coupons b) price off
c) Lucky draw d) Bundling offer
Q17. Which Trade Promotions do various companies offer?
a) Extra Margin b) Extra Units c) Credit facility d) Gifts e) Promo. Exp.