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A
SUMMER PROJECT
ON
“SALES PROMOTION STRATEGY IN RETAIL INDUSTRIES”
Dissertation submitted in partial fulfillment of the requirements for the award of
the Degree of
MASTER IN MANAGEMENT STUDIES (MMS)
OF
MUMBAI UNIVERSITY
(2017-18)
SUBMITTED TO,
SHIVAJIRAO S. JONDHLE INSTITUTE OF MANAGEMENT
SCIENCE & RESEARCH
ASANGAON
UNDER THE GUIDANCE OF
PROF. BHOJRAJ SHEWALE Sir.
SUBMITTED BY,
MR. PANDHARINATH UMANATH DUBHASHE
(Roll no.17011)
MARKETING
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DECLARATION
I hereby declare that this dissertation titled “Sales Promotion Strategy In Retail
Industries.” submitted by me to SHIVAJIRAO S. JONDHLE INSTITUTE OF
MANAGEMENT SCIENCE & RESEARCH, MUMBAI UNIVERSITY in partial
fulfillment of requirements of MMS Programmed is bonafied work carried me under
Professors. This has not been submitted to any other University or institution for any
degree/ diploma/ certificate or published any time before.
Date: (Pandharinath U. Dubhashe)
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SHIVAJIRAO S. JONDHALE INSTITUTE OF MANAGEMENT SCIENCE &
RESEARCH
(Approved by AICTE, Govt. of Maharashtra, DTE, Affiliated to University of
Mumbai)
Certificate
This is to certify that Mr. Pandharinath Umanath Dubhashe Roll No. 17011 student of
first year Master in Management Studies has successfully completed the Summer
Internship Project, work title “Sales Promotion Strategy In Retail Industries” At in partial
fulfillment for the degree of Master in Management Studies (MMS) University of
Mumbai.
This project report is the record of authentic work carried out during the academic year
2016-17.
Project Guide Principal
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ACKNOWLEDGEMENT
Apart from our efforts, the success of this project depends largely on the
encouragement and guidelines provided to me Mr. Bhojraj Shewale sir from time to time.
We take this opportunity to express our gratitude to the person who has been instrumental
in the successful completion of this project. We would like to shower our greatest
appreciation to Shivajirao S. Jondhale Institute of Management, Science & Research
under the guidance of Prof. Bhojraj Shewale Sir, we felt motivated and encouraged to
undertake this project.
Without her encouragement and guidance this project would not have
materialized. We can’t say thank you enough for her tremendous support and help. We
are also grateful for every small effort they have put in to see to it that our project is a
grand success.
We would also like to thank, all those people who have directly or indirectly
contributed to the successful completion of this project.
Thanking you all, for your kind anticipation in our project.
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INDEX
Sr. No. Title Page No.
1. Introduction, 6
2 Meaning Of Sales Promotion 6
3 Definition 7
4 Types Of Promotional Strategies 9
5 Reason For The Rapid Growth Of The
Sales
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6 Tools Of Sales Promotion 14
7 Objective Of Study 17
8 Limitation of study 18
9 Need for Study 19
10 Literature review 20
11 Sales Promotion Strategies 22
12 Research Methodology 26
13 OBSERVATION & FINDING
14 Data Collection 27
15 Conclusion 29
16 Questionnaires 30
17 Bibliography 35
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INTRODUCTION
MEANING OF SALES PROMOTION
Every businessman wants to increase the sale of goods that he deals in. He can adopt
several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour
to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc.
You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc.
offered free with some products.
There are also exchange offers, like in exchange of existing model of television you can
get a new model at a reduced price. You may have also observed in your neighbouring
markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and
many other schemes to attract customers to buy certain products. All these are incentives
offered by manufacturers or dealers to increase the sale of their goods. These incentives
may be in the form of free samples, gifts, discount coupons, demonstrations, shows,
contests etc. All these measures normally motivate the customers to buy more and thus, it
increases sales of the product. This approach of selling goods is known as “Sales
Promotion”.
You have learnt about advertising and personal selling in the earlier lessons. Personal
selling involves face-to-face contact with specific individuals, while advertising is
directed towards a large number of potential customers. They also help in increasing
sales of goods. Thus, advertising can be used as means of communication to inform
potential customers about the incentives offered for sales promotion. Personal selling can
as well include communication of the incentives to individual customers. But, sales
promotion differs from advertising and personal selling in terms of its approach and
technique. Sales promotion adopts short term, non-recurring methods to boost up sales in
different ways. These offers are not available to the customers throughout the year.
During festivals, end of the seasons, year ending and some other occasions these schemes
are generally found in the market.
Thus, sales promotion consists of all activities other than advertising and personal selling
that help to increase sales of a particular commodity.
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DEFINATION:-
 “Sales promotion includes incentive-offering, interest-creating activities which
are generally short term marketing event other than advertising, personal selling,
publicity & direct marketing”. (A.H.R. Delons).
 “The purpose of the sales promotion is to stimulate, motivate & influence the
purchase or other desired behavioral responses of the firm`s customers.”
(W.Q. Kelly).
By 2017 organized retail sector in India is expected in triple its size. The food & grocery
retail sector is expected to multiply five times in the same time frame. The market size of
the Indian retail industry is about US $312 billon.
GEOGRAPHICAL DISTRIBUTION:
The natural arrangement and apportionment of the various frames’ of animals and plants
in the different regions and localities of the earth.In all the major cities in the country.
OUTPUT PER ANNUM:
With growing market demand, the industry is expected to grow at pace of 25-30%
annually.
PERCENTAGE OF THE WORLD MARKET:
Today India 5th largest in the world in term of retail industry.
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MARKET CAPITALIZATION:
In 2016 the retail trade account for 12% of the country`s GDP. The present value of the
Indian retail market is estimated to be around Rs. 1200, 000cr. ( $270 billon) and the
annual growth rate is 5.7%.
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TY PES OF PROMOTIONAL STRATEGIES
Based on the data collected from the present survey, eight activities were identified as
the components of sales promotional strategies performed by the small scale industrial
units, namely,
(i) advertising
(ii) personal selling
(iii) sales promotion
(iv) packaging
(v) direct mail
(vi) event sponsorship
(vii) trade fairs and exhibitions and
(viii) point of purchase display.
An account of these sales promotional strategies of the sample small scale industrial
units of Virudhunagar District is given in the following pages.
I. ADVERTISING
Advertising is a form of communication for marketing and used to encourage, or
manipulate an audience (viewers, readers or listeners; sometimes a specific group) to
continue or take some new action. In Latin, ad vertere means "to turn the mind toward."
The purpose of advertising may also be to reassure employees or shareholders that a
company is viable or successful. Advertising is defined as any paid form of non-personal
communication about an organization, product, service or idea by an identified
sponsor.13 Most commonly, the desired result is to drive consumer behavior with
respect to a commercial offering, although political and ideological advertising is also
common. Advertising messages are usually paid for by sponsors and viewed via various
traditional media; including mass media such as newspaper, magazines, television
commercial, radio advertisement, outdoor advertising or direct mail; or new media such
as blogs, websites or text messages.
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Commercial advertisers often seek to generate increased consumption of their
products or services through "branding," which involves associating a product name or
image with certain qualities in the minds of consumers. Non- commercial advertisers who
spend money to advertise items other than a consumer product or service include political
parties, interest groups, religious organizations and government agencies. Nonprofit
organizations may rely on free modes of persuasion, such as a public service
announcement (PSA).
Modern advertising was created with the innovative techniques introduced with
tobacco advertising in the 1920s, most significantly with the campaigns of Edward
Bernays, which is often considered the founder of modern Madison Avenue advertising.
In 2010, spending on advertising was estimated at $142.5 billion in the United States and
internationally, the largest ("big four") advertising conglomerates are Interpublic,
Omnicom, Publicis, and WPP.
1. Advertising is important for the customers
Just imagine television or a newspaper or a radio channel without an
advertisement! No, no one can any day imagine this. Advertising plays a very
important role in customers life. Customers are the people who buy the product only
after they are made aware of the products available in the market. If the product is not
advertised, no customer will come to know what products are available and will not
buy the product even if the product was for their benefit. One more thing is that
advertising helps people find the best products for themselves, their kids, and their
family. When they come to know about the range of products, they are able to
compare the products and buy so that they get what they desire after spending their
valuable money. Thus, advertising is important for the customers.
2. Advertising is important for the sellerand companies producing the
products
Yes, advertising plays very important role for the producers and the sellers of the
products, because
Advertising helps increasing sales
Advertising helps producers or the companies to know their competitors and
plan accordingly to meet up the level of competition.
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If any company wants to introduce or launch a new product in the market,
advertising will make a ground for the product. Advertising helps making
people aware of the new product so that the consumers come and try the
product.
Advertising helps creating goodwill for the company and gains customer
loyalty after reaching a mature age.
The demand for the product keeps on coming with the help of advertising and
demand and supply become a never ending process.
3. Advertising is important for the society
Advertising helps educating people. There are some social issues also
which advertising deals with like child labour, liquor consumption, girl child
killing, smoking, family planning, education, etc. Thus, advertising plays a very
important role in society.
(a) Crucial for a launch
Advertising is very crucial for launching (introducing) a new product, service
and/or idea in the market. If advertisement of any concerned product, service and/or idea
is done properly at a right place, through proper media, and within a specific time
constraint, can attract newcustomers. This helps to capture the market and increase sales
of an advertiser. Advertising is also essential for announcing an upcoming event.
Advertising an open invitation maximizes the chances of event attendance. However, if
people are unaware of any such happening, they may not show up. As a result, the event
may not get an expected response. Hence, advertising contributes to the success of an
event.
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REASON FOR THE RAPID GROWTH OF THE SALES PROMOTION:
Increasing Competition
The air of change is gaining momentum after the introduction of economic
liberalisation.Due to increase in competition, companies are finding it increasingly
difficult to compete on quality. They are therefore resorting to more and
innovativemethods of sales promotion.To break away from the clutter, Samsung
introduced the ‘phod ke dekho’ and ‘phir se phod ke dekho’ offers, which helped increase
sales.
• Customers Have Become More Price Sensitive
This increased price sensitivity is a direct result of rampant inflation. Economic
recession is likely to fuel this trend further, as consumers and dealers become more
sensitive towards prices.
• Sales Promotions Generally Create An Immediate Positive Impact On Sales
Advertising, personal selling and other methods of promotion produce slower sales
response compared to sales promotion. Sales promotions are mostly for short
duration, for a specified period, leading to a sense of urgency in consumers to buy
now. This creates an immediate positive impact on sales. With careful planning, it
would not be difficult to measure the impact on sales volume and profit, and see the
consequences of running the promotion even on weekly or daily basis.
• Products have become more standardised
In many product categories, there is a proliferation of brands; many of them are line
extensions and me-too brands. Most brands are being perceived by consumers to be
more or less similar within a given price range because of the inability of
manufacturers to develop truly differentiated products. Under these circumstances,
advertising messages are unable to strongly influence the consumers’ perceptions
and create brand franchise. As a result of these perceptions of similarity among
brands, marketers have no way but to compete on the basis of extra benefit offered
through sales promotion. Competing companies struggle to capture market share by
using every tool likely to bring sales success.
• Consumer Acceptance
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As competition intensifies and promotions proliferate, consumers have learnt to earn
the rewards of being smart shoppers. Over a period of time, they have also learnt
that brands on promotion are not necessarily of lower quality.
Woodland has a scheme of upto 50% off on Woodland shoes and apparel.
This learning based on experience, gets transferred to other product categories as
well. Consumers have learnt that promotions are being extended to many product
categories where such promotions were unheard of.
• Expectations Of Price Decrease
With the entry of many different brands of consumer durable products in the same
product category, consumers anticipate that the prices of durable goods will come
down. This encourages them to postpone their purchases. To speed up the purchase
method. Consumers evaluate the incentives associated with their purchase decision
and are motivated to act now, rather than wait for the anticipated decrease in price.
The marketers should ensure that the extra benefit is attractive enough to create a
sense of urgency in consumers.
Samsung offers upto Rs. 8,000 off on exchanging an old refrigerator for a new
Samsung refrigerator.
• Advertising Has Become More Expensive And Less Effective
All the advertising media have become quite expensive. Audio-visual medium,
which is considered as the most effective for short-duration ads, may cost in excess
of Rs. 1 lakh for a 10 second exposure during prime time. In many cases, consumers
have reached a point of boredom due to excessive advertising on TV. Some
consumers even consider advertising as an intrusion into their privacy, leading to
zapping (surfing channels). Firms with small budgets cannot compete with big
companies which spend huge sums of money on advertising. For these small budget
firms, sales promotion is a more cost-effective promotion method to produce sales
results.
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TOOLS OF SALES PROMOTION
To increase the sale of any product manufactures or producers adopt different measures
like sample, gift, bonus, and many more. These are known as tools or techniques or
methods of sales promotion. Let us know more about some of the commonly used tools
of sales promotion.
(i) Free samples:
You might have received free samples of shampoo, washing powder, coffee powder,
etc. while purchasing various items from the market. Sometimes these free samples
are also distributed by the shopkeeper even without purhasing any item from his
shop. These are distributed to attract consumers to try out a new product and thereby
create new customers. Some businessmen distribute samples among selected
persons in order to popularize the product. For example, in the case of medicine free
samples are distributed among physicians, in the case of textbooks, specimen copies
are distributed among teachers.
(ii) Premium or Bonus offer:
A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams
of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus
given free with the purchase of a product. They are effective in inducing consumers
to buy a particular product. This is also useful for encouraging and rewarding
existing customers.
(iii) Exchange schemes:
It refers to offering exchange of old product for a new product at a price less than
the original price of the product. This is useful for drawing attention to product
improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just
by paying Rs.500’ or ‘exchange your black and white television with a colour
television’ are various popular examples of exchange scheme.
(iv) Price-off offer:
Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off
on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea,
Rs. 1000 off on cooler’ etc. are some of the common schemes. This type of scheme
is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
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(v) Coupons:
Sometimes, coupons are issued by manufacturers either in the packet of a product
or through an advertisement printed in the newspaper or magazine or through mail.
These coupons can be presented to the retailer while buying the product. The holder
of the coupon gets the product at a discount. For example, you might have come
across coupons like, ‘show this and get Rs. 15 off on purchase of 5 kg. of
Annapurna Atta’. The reduced price under this scheme attracts the attention of the
prospective customers towards new or improved products.
(vi) Fairs and Exhibitions:
Fairs and exhibitions may be organised at local, regional, national or international
level to introduce new products, demonstrate the products and to explain special
features and usefulness of the products. Goods are displayed and demonstrated and
their sale is also conducted at a reasonable discount. ‘International Trade Fair’ in
New Delhi at Pragati Maidan, which is held from 14th to 27th November every
year, is a wellknown example of Fairs and Exhibitions as a tool of sales promotion.
(vii) Trading stamps:
In case of some specific products trading stamps are distributed among the
customers according to the value of their purchase. The customers are required to
collect these stamps of sufficient value within a particular period in order to avail of
some benefits. This tool induces customers to buy that product more frequently to
collect the stamps of required value.
(viii)Scratch and win offer:
To induce the customer to buy a particular product ‘scratch and win’ scheme is also
offered. Under this scheme a customer scratch a specific marked area on the
package of the product and gets the benefit according to the message written there.
In this way customers may get some item free as mentioned on the marked area or
may avail of price-off, or sometimes visit different places on special tour arranged
by the manufacturers.
(ix) Money Back offer:
Under this scheme customers are given assurance that full value of the product will
be returned to them if they are not satisfied after using the product. This creates
confidence among the customers with regard to the quality of the product. This
technique is particularly useful while introducing new products in the market.
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LOCAL COMPANIES:
a) Pantaloon retails,Indias largest listed retailer and part of the future group, run
apparel and electronic store under its lifestyle brands central, E-Zone,
Hometown, Future also operates the big bazaar hyper market chain &
supermarket brand food bazaar.
b) Second-Ranked Reliance Retail is a part of Reliance Industries, Indias largest
listed group head by Mukesh Ambani , India`s richest man.
c) Shoppers Stop, part of the K. Raheja group which operate in real estate.
d) The sprawling Tata group operates 106 stores across formats and run the west
side range of apparel stores, under star bazaar.
MAJOR FOREIGN COMPANIES:
a) Wall-mart store inc has a cash and carry operation with Indian partner Bharti
Enterprises, the parent of leading mobile provide Bharti Airtel, and will add new
cash-and-carry store this year to its 17 existing stores.
b) Tesco, Britten largest retailer, has a tai-up with Trend star bazaar hypermarket
chain. Tesco is also looking to enter the wholesale market to through the tie-up.
c) Germany`s Metro AG operate 11 wholesale store in India. Company plan to
open to 5 cash-and-carry every year.
d) Carrefour has 2 cash-and-carry stores in India. The world no. 2 retailer has
been seeking a local partner to enter the hyper of super market store.
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OBJECTIVE OF STUDY
 To identify by different sales promotion tools used by different situation.
 To study sales promotion strategy influence to the customer by retails.
 Study the difference sales promotion strategy.
 To identify the effect of sales promotion strategy help attract new customer.
 To know how a sales promotion strategy help to face competition effectively.
 To find out most effective tools of sales promotion.
 Suggest for better management of sales promotion strategy in retail industries.
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LIMITATION OF STUDY
1. It is the time constrains.
2. Due to other work load during the period it could be not be possible to explore
more area concern pertaining to study.
3. The study was conducted to limited area on THANE region only.
4. Finding of the study are the based on the assumption that the respondents have
given correct information.
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NEED FOR STUDY
 To day by day increasing demand of retail industry in the Indian market.
 This study important to understand effect of sales promotion strategy on
the buying behavior of the customer.
 The important sales promotion strategy can provide vital intelligence
about what the retailer has to do, to increase customer footage to their
outlet.
 Our study can be useful by other retail business in similar industries.
 To understand the customer behavior about different sales promotion
strategy.
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LITERATURE REVIEW
DEFINITION
 “Sales promotion includes incentive- offering and interest creating activities
which are generally short- term marketing events other than advertising, personal
selling, sales promotion, publicity & direct marketing”.
(A.H.Delons)
 The purpose of the sales promotion is to stimulate, motivate &influence the
purchase
A typical sales promotion budget covers almost 70% of the total consumer sales
promotional budget. It is also consider as a brand differentiator by many big player like
coca-cola, Pepsi, Heinz & many more. For many business experts & academics, sales
promotion is regarded typical marketing technique that adds value to a product in order to
achieve specific marketing goal. The primary purpose of sales promotion is to offer
customer to take chance of winning a price or offering some extra product with the same
price.
Sales promotion and marketing are inter-related but not have the similar purpose. It is
advertising which make a platform for sales promotion where customer can see the direct
added value of buying your product. On the other hand, advertising is an intangible
promotion of your products to send the marketing message to the customer base.
Sales promotion: Advantages & Disadvantages
The main advantages associated with promotional sales are-an easy way to learn
customer response and its work fast. It is an inexpensive marketing technique. Sales
promotion does not always bring positive impact to business, sometime this type of
promotion cause negative brand impact to customer mind in the long-term. So,
promotional camping needs to be designed taking in to account the consequences of
losing brand value. A PIMS study of 1991 suggest that overuse of sales promotion bring
low ROI, almost 15% less, in comparison to balanced & calculated promotional offer. It
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is advisable not to use sales promotion as a tool of brand imaging. Advertising is always
the best way as far branding concerned. So, marketers need to be care full & must
understand the difference between the sales promotion and advertising.
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SALES PROMOTION STRATEGIES:
FINAL WORDS
A successful strategy will usually have elements of both the push and pull promotional
methods. If you are starting a new business and intend to sell a product through retailers,
you'll almost certainly need to persuade outlets to purchase and stock your product.
You'll also need to raise brand awareness and start building valuable word of mouth
referrals. If you have designed a product around the customer and have considered all
elements of the marketing mix, both of these aspects should be achievable.
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PUSH AND PULL MARKETING STRATEGIES:
 Promotional strategies to get your product or service to market can be roughly
divided into two separate camps.
 The origin of these two terms refers to the supply chain and how the demand for
the product is generated.
There are three types of sales promotion strategies: Push, Pull, or a combination of the
two.
A push strategy involves convincing trade intermediary channel members to "push" the
product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion objectives are
to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers. Typical tactics employed in
push strategy are: allowances, buy-back guarantees, free trials, contests, specialty
advertising items, discounts, displays, and premiums.
A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications
efforts on consumers in the hope that it stimulates interest and demand for the product at
the end-user level. This strategy is often employed if distributors are reluctant to carry a
product because it gets as many consumers as possible to go to retail outlets and request
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the product, thus pulling it through the channel. Consumer-promotion objectives are to
entice consumers to try a new product, lure customers away from competitors’ products,
get consumers to "load up" on a mature product, hold & reward loyal customers, and
build consumer relationships. Typical tactics employed in pull strategy are: samples,
coupons, cash refunds and rebates, premiums, advertising specialties, loyalty
programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)
displays.
Car dealers often provide a good example of a combination strategy. If you pay attention
to car dealers' advertising, you will often hear them speak of cash-back offers and dealer
incentives.
PUSH-PULL STRATEGY Definition
PUSH-PULL STRATEGY is the effective simultaneous use of a combination of two
marketing strategies: PUSH = 1. (Physical distribution definition) A manufacturing
strategy aimed at other channel members rather than the end consumer. The manufacturer
attempts to entice other channel members to carry its product through trade allowances,
inventory stocking procedures, pricing policies, etc. 2. (Sales promotion definition) The
communications and promotional activities by the marketer to persuade wholesale and
retail channel members to stock and promote specific products.
PULL = 1. (Physical distribution definition) A manufacturing strategy aimed at the end
consumer of a product. The product is pulled through the channel by consumer demand
initiated by promotional efforts, inventory stocking procedures, etc.
2. (Sales promotion definition) The communications and promotional activities by the
marketer to persuade consumers to request specific products or brands from retail channel
members. PUT is (1) A stipulated privilege of buying or selling a stated property,
security, or commodity at a given price (strike price) within a specified time (for an
American-style option, at any time prior to or on the expiration date). A securities option
is a negotiable contract in which the seller (writer), for a certain sum of money called the
option premium, gives the buyer the right to demand within a specified time the purchase
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(call) or sale (put) by the option seller of a specified number of bonds, currency units,
index units, or shares of stock at a fixed price or rate called the strike price. Many options
are settled for cash equal to the difference between the aggregate spot price and the
aggregate strike price rather than by delivery of the underlying. In the U.S. and many
other countries, stock options are usually written for units of 100 shares. Other units of
underlying coverage are standard in other option markets. Options are ordinarily issued
for periods of less than one year, but longer-term options are increasingly common. (2)
Any financial contract that changes in value like an option (asymmetrically), even if the
terms of the contract do not state the price relationship in terms of a right or privilege or
in other language usually associated with options.
Simple diagram explaining some example differences between a push and pull
promotional strategy
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RESEARCH METHODOLOGY
The system of collecting data for research project is known as research methodology. The
data may be collected for either theoretical or practical research for example management
research may be strategically conceptualized along with operational planning method and
change management. Some important factors in research methodology include validity of
research data, ethics and the reliability of measures most of your work in finish by the
time you, finish the analysis of your data.
Formulation of research question along with sampling weather probable or non probable
is followed by measurement that includes surveys and scaling. This is followed by
research design, which may be either experimental or quasi-experimental.the last two
stage are data analysis & finally writing the research paper, which is organized carefully
into graphs and tables so that only important relevant data is shown.
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DATA COLLECTION:
There are two mains source of collecting data. These are are:-
PRIMARY DATA:
 Primary data has been collected through questionnaires. The data has been
collected from first-hand-experience is known as primary data. Primary
data has not been published yet and is more reliable, authentic and
objective. Primary data has not been changed or altered by human beings,
therefore its validity is greater than secondary data.
 Primary data has been collected by visiting big bazaar at thane region
SECONDERY DATA:
 Data collected form a source that has already been published in any form
is called as secondary data. The review of literature in many research is
based on secondary data. Mostly from book, journals and periodicals.Data
has also been collected through internet using various website such as:-
Survey Method:
Source of Data:
 PRIMRY DATA:-
 Analysis of the Marketing by personally interview of retailer & customer.
 To collect information from customer & sharing the problem phase by them.
 Personally analysis the working of their retail sales promotion strategy.
 SECONDERY DATA:-
 Collection & collecting information various books.
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OBSERVATION & FINDING
1) Temporary price reduction (price off) substantially increasing sales.
2) Sales promotion leads to brand substitution with the product category.
3) Sales promotion leads to purchase acceleration/ stockpiling effects.
4) Sales promotion affects sales in complementary categories.
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CONCLUSION
 We have noted that these kind of promotional tools are useful for short term
incresing in sales and to induced first trail. These trail of promotional scheme
should be consistent and change for time to time depending upon seasons &
competitor`s schemes.
 With the incresing numbers of supermarkets, the brand package goods work as
silence sales person. So in such store, sales promotion plays a more effective role in
stimulating customer demands.
 The proper use of sales promotion tools helps to achieve the objective of
organization.
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QUESTIONNAIRES:
Q13. Does the Displays and Promotional offers informed in the store attracts you?
a. Yes
b. No
Q14. Which type of promotional activities attract customers?
a. Discounts
b. Extra Offer
c. 1+1 Offer
d. Advertisements
Q15. How do you rate the customer schemes of the company?
a. Good
b. Average
c. Poor
Q16. Do you think due to displays it is easy to shop in Big Bazaar?
a. Yes
b. No
Q17. Does the Sales Promotion activities of Big Bazaar made you to visit Big Bazaar
again?
a. Yes
b. No
Q18. Your overall shopping Experience due to offers and discounts in Big Bazaar?
a. Good
b. Average
c. Poor
31
31
QUESTION FOR THE SURVEY
Customer oriented:
We would be thankful if you share some of your valuable opinion regarding the
following questionnaires.
NAME: CONTACT NO:
AGE: OCCUATION:
1) How frequently do you visit Reliance fresh/Big-Bazaar?
a) Once in a week.
b) Twice in a week.
c) Once in a month.
2) What do you like the most at big-bazaar?
a) Price up to satisfaction.
b) Various options available to choose.
c) Display of merchandise.
d) Promotional scheme.
3) Do you consider promotional schemes while visiting big-bazaar?
a) Yes.
b) No.
4) What do you like the most at Reliance fresh?
a) Price up to satisfaction.
B) Various options available to choose.
c) Display of merchandise.
4A) Do you consider promotional schemes while visiting Reliance Fresh?
c) Yes.
d) No.
32
32
5) How do you compare Reliance Fresh with Big- Bazaar?
a) Price Factor.
b) Availability of Product.
c) Customer Service.
6) Do you feel easy to find out the product in Big- Bazaar?
a) Yes.
b) No.
7) Do you feel easy to find out the product in Reliance Fresh?
a) Yes.
b) No.
8) How do you feel about the customer service of Reliance fresh?
a) Average
b) Good
c) Excellent.
33
33
QUESTION FOR THE SERVEY
Retailer oriented:
We would be thankful if you share some of your valuable opinion regarding the
following questionnaires.
NAME: CONTACT NO:
AGE: OCCUATION:
1) Is your sales promotion strategy consumer oriented/ both?
a) Yes.
b) No.
2) Does customer really satisfied with your sales promotion activities in your Big-
Bazaar?
a) Yes.
b) No
3) Does customer really satisfied with your sales promotion activities in your
Reliance fresh?
c) Yes.
d) No.
4) Customer looks for various schemes in the product? (Both Big-Bazaar & Reliance
fresh).
a) Coupon. b) Price off. c) Scratch card. d) Lucky draw. e) Bundling. f) Extra
quality.
5) Which sales promotion strategy you used most? (BIG-BAZAAR)
a) Coupon. b) Price off. c) Scratch card. d) Lucky draw. e) Bundling. f) Extra
quality.
6) Which sales promotion strategy you used most? (Reliance fresh)
a) Coupon. b) Price off. c) Scratch card. d) Lucky draw. e) Bundling. f) Extra
quality.
7) On which category customer attract more? (Big Bazaar)
34
34
a) FMCG. b) Apparels. C) Stationary. d) Grocery. e) Luggage. F) Consumer
Durable.
8) On which category customer attract more? (Reliance Fresh)
b) FMCG. b) Apparels. C) Stationary. d) Grocery. e) Luggage. F) Consumer
Durable.
9)
35
35
BIBLIOGRAPHY
BOOKS
C.R.Kothari “research methodology methods & tequnique”. New age entemational (p)
ltd. Publishers 2nd edition, page no 95, 96, 102.
Philip Kotler, “marketing management”, 13th edition, Pearson education, Asia
publication. Page no. 355 to 366.
INTERNET:
 http://www.ril.com/htm/aboutus/about_brands.html.
 www.big-bazaar.com.
 Study_ of_ consumer_ oriented_ sales_ promotion_ in_ FMCG. Zip- zip archive,
unpacked size 574, 564 bytes.
 Kumar, v. 2010. Promotional strategy of big bazaar & managing the image of big
bazaar in retailing (online) available at;
http/;//www. Skyline College. Com/ blog/ dissertation/ promotional- strategy- of-
big bazaar- maintaining- the- image- in- retailing (accessed 19 march 2011).
36
36

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  • 1. 1 1 A SUMMER PROJECT ON “SALES PROMOTION STRATEGY IN RETAIL INDUSTRIES” Dissertation submitted in partial fulfillment of the requirements for the award of the Degree of MASTER IN MANAGEMENT STUDIES (MMS) OF MUMBAI UNIVERSITY (2017-18) SUBMITTED TO, SHIVAJIRAO S. JONDHLE INSTITUTE OF MANAGEMENT SCIENCE & RESEARCH ASANGAON UNDER THE GUIDANCE OF PROF. BHOJRAJ SHEWALE Sir. SUBMITTED BY, MR. PANDHARINATH UMANATH DUBHASHE (Roll no.17011) MARKETING
  • 2. 2 2 DECLARATION I hereby declare that this dissertation titled “Sales Promotion Strategy In Retail Industries.” submitted by me to SHIVAJIRAO S. JONDHLE INSTITUTE OF MANAGEMENT SCIENCE & RESEARCH, MUMBAI UNIVERSITY in partial fulfillment of requirements of MMS Programmed is bonafied work carried me under Professors. This has not been submitted to any other University or institution for any degree/ diploma/ certificate or published any time before. Date: (Pandharinath U. Dubhashe)
  • 3. 3 3 SHIVAJIRAO S. JONDHALE INSTITUTE OF MANAGEMENT SCIENCE & RESEARCH (Approved by AICTE, Govt. of Maharashtra, DTE, Affiliated to University of Mumbai) Certificate This is to certify that Mr. Pandharinath Umanath Dubhashe Roll No. 17011 student of first year Master in Management Studies has successfully completed the Summer Internship Project, work title “Sales Promotion Strategy In Retail Industries” At in partial fulfillment for the degree of Master in Management Studies (MMS) University of Mumbai. This project report is the record of authentic work carried out during the academic year 2016-17. Project Guide Principal
  • 4. 4 4 ACKNOWLEDGEMENT Apart from our efforts, the success of this project depends largely on the encouragement and guidelines provided to me Mr. Bhojraj Shewale sir from time to time. We take this opportunity to express our gratitude to the person who has been instrumental in the successful completion of this project. We would like to shower our greatest appreciation to Shivajirao S. Jondhale Institute of Management, Science & Research under the guidance of Prof. Bhojraj Shewale Sir, we felt motivated and encouraged to undertake this project. Without her encouragement and guidance this project would not have materialized. We can’t say thank you enough for her tremendous support and help. We are also grateful for every small effort they have put in to see to it that our project is a grand success. We would also like to thank, all those people who have directly or indirectly contributed to the successful completion of this project. Thanking you all, for your kind anticipation in our project.
  • 5. 5 5 INDEX Sr. No. Title Page No. 1. Introduction, 6 2 Meaning Of Sales Promotion 6 3 Definition 7 4 Types Of Promotional Strategies 9 5 Reason For The Rapid Growth Of The Sales 12 6 Tools Of Sales Promotion 14 7 Objective Of Study 17 8 Limitation of study 18 9 Need for Study 19 10 Literature review 20 11 Sales Promotion Strategies 22 12 Research Methodology 26 13 OBSERVATION & FINDING 14 Data Collection 27 15 Conclusion 29 16 Questionnaires 30 17 Bibliography 35
  • 6. 6 6 INTRODUCTION MEANING OF SALES PROMOTION Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as “Sales Promotion”. You have learnt about advertising and personal selling in the earlier lessons. Personal selling involves face-to-face contact with specific individuals, while advertising is directed towards a large number of potential customers. They also help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion. Personal selling can as well include communication of the incentives to individual customers. But, sales promotion differs from advertising and personal selling in terms of its approach and technique. Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular commodity.
  • 7. 7 7 DEFINATION:-  “Sales promotion includes incentive-offering, interest-creating activities which are generally short term marketing event other than advertising, personal selling, publicity & direct marketing”. (A.H.R. Delons).  “The purpose of the sales promotion is to stimulate, motivate & influence the purchase or other desired behavioral responses of the firm`s customers.” (W.Q. Kelly). By 2017 organized retail sector in India is expected in triple its size. The food & grocery retail sector is expected to multiply five times in the same time frame. The market size of the Indian retail industry is about US $312 billon. GEOGRAPHICAL DISTRIBUTION: The natural arrangement and apportionment of the various frames’ of animals and plants in the different regions and localities of the earth.In all the major cities in the country. OUTPUT PER ANNUM: With growing market demand, the industry is expected to grow at pace of 25-30% annually. PERCENTAGE OF THE WORLD MARKET: Today India 5th largest in the world in term of retail industry.
  • 8. 8 8 MARKET CAPITALIZATION: In 2016 the retail trade account for 12% of the country`s GDP. The present value of the Indian retail market is estimated to be around Rs. 1200, 000cr. ( $270 billon) and the annual growth rate is 5.7%.
  • 9. 9 9 TY PES OF PROMOTIONAL STRATEGIES Based on the data collected from the present survey, eight activities were identified as the components of sales promotional strategies performed by the small scale industrial units, namely, (i) advertising (ii) personal selling (iii) sales promotion (iv) packaging (v) direct mail (vi) event sponsorship (vii) trade fairs and exhibitions and (viii) point of purchase display. An account of these sales promotional strategies of the sample small scale industrial units of Virudhunagar District is given in the following pages. I. ADVERTISING Advertising is a form of communication for marketing and used to encourage, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. In Latin, ad vertere means "to turn the mind toward." The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising is defined as any paid form of non-personal communication about an organization, product, service or idea by an identified sponsor.13 Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages.
  • 10. 10 10 Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves associating a product name or image with certain qualities in the minds of consumers. Non- commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and government agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement (PSA). Modern advertising was created with the innovative techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, which is often considered the founder of modern Madison Avenue advertising. In 2010, spending on advertising was estimated at $142.5 billion in the United States and internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP. 1. Advertising is important for the customers Just imagine television or a newspaper or a radio channel without an advertisement! No, no one can any day imagine this. Advertising plays a very important role in customers life. Customers are the people who buy the product only after they are made aware of the products available in the market. If the product is not advertised, no customer will come to know what products are available and will not buy the product even if the product was for their benefit. One more thing is that advertising helps people find the best products for themselves, their kids, and their family. When they come to know about the range of products, they are able to compare the products and buy so that they get what they desire after spending their valuable money. Thus, advertising is important for the customers. 2. Advertising is important for the sellerand companies producing the products Yes, advertising plays very important role for the producers and the sellers of the products, because Advertising helps increasing sales Advertising helps producers or the companies to know their competitors and plan accordingly to meet up the level of competition.
  • 11. 11 11 If any company wants to introduce or launch a new product in the market, advertising will make a ground for the product. Advertising helps making people aware of the new product so that the consumers come and try the product. Advertising helps creating goodwill for the company and gains customer loyalty after reaching a mature age. The demand for the product keeps on coming with the help of advertising and demand and supply become a never ending process. 3. Advertising is important for the society Advertising helps educating people. There are some social issues also which advertising deals with like child labour, liquor consumption, girl child killing, smoking, family planning, education, etc. Thus, advertising plays a very important role in society. (a) Crucial for a launch Advertising is very crucial for launching (introducing) a new product, service and/or idea in the market. If advertisement of any concerned product, service and/or idea is done properly at a right place, through proper media, and within a specific time constraint, can attract newcustomers. This helps to capture the market and increase sales of an advertiser. Advertising is also essential for announcing an upcoming event. Advertising an open invitation maximizes the chances of event attendance. However, if people are unaware of any such happening, they may not show up. As a result, the event may not get an expected response. Hence, advertising contributes to the success of an event.
  • 12. 12 12 REASON FOR THE RAPID GROWTH OF THE SALES PROMOTION: Increasing Competition The air of change is gaining momentum after the introduction of economic liberalisation.Due to increase in competition, companies are finding it increasingly difficult to compete on quality. They are therefore resorting to more and innovativemethods of sales promotion.To break away from the clutter, Samsung introduced the ‘phod ke dekho’ and ‘phir se phod ke dekho’ offers, which helped increase sales. • Customers Have Become More Price Sensitive This increased price sensitivity is a direct result of rampant inflation. Economic recession is likely to fuel this trend further, as consumers and dealers become more sensitive towards prices. • Sales Promotions Generally Create An Immediate Positive Impact On Sales Advertising, personal selling and other methods of promotion produce slower sales response compared to sales promotion. Sales promotions are mostly for short duration, for a specified period, leading to a sense of urgency in consumers to buy now. This creates an immediate positive impact on sales. With careful planning, it would not be difficult to measure the impact on sales volume and profit, and see the consequences of running the promotion even on weekly or daily basis. • Products have become more standardised In many product categories, there is a proliferation of brands; many of them are line extensions and me-too brands. Most brands are being perceived by consumers to be more or less similar within a given price range because of the inability of manufacturers to develop truly differentiated products. Under these circumstances, advertising messages are unable to strongly influence the consumers’ perceptions and create brand franchise. As a result of these perceptions of similarity among brands, marketers have no way but to compete on the basis of extra benefit offered through sales promotion. Competing companies struggle to capture market share by using every tool likely to bring sales success. • Consumer Acceptance
  • 13. 13 13 As competition intensifies and promotions proliferate, consumers have learnt to earn the rewards of being smart shoppers. Over a period of time, they have also learnt that brands on promotion are not necessarily of lower quality. Woodland has a scheme of upto 50% off on Woodland shoes and apparel. This learning based on experience, gets transferred to other product categories as well. Consumers have learnt that promotions are being extended to many product categories where such promotions were unheard of. • Expectations Of Price Decrease With the entry of many different brands of consumer durable products in the same product category, consumers anticipate that the prices of durable goods will come down. This encourages them to postpone their purchases. To speed up the purchase method. Consumers evaluate the incentives associated with their purchase decision and are motivated to act now, rather than wait for the anticipated decrease in price. The marketers should ensure that the extra benefit is attractive enough to create a sense of urgency in consumers. Samsung offers upto Rs. 8,000 off on exchanging an old refrigerator for a new Samsung refrigerator. • Advertising Has Become More Expensive And Less Effective All the advertising media have become quite expensive. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a 10 second exposure during prime time. In many cases, consumers have reached a point of boredom due to excessive advertising on TV. Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). Firms with small budgets cannot compete with big companies which spend huge sums of money on advertising. For these small budget firms, sales promotion is a more cost-effective promotion method to produce sales results.
  • 14. 14 14 TOOLS OF SALES PROMOTION To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion. (i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purhasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg. are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers. (iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. ‘Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500’ or ‘exchange your black and white television with a colour television’ are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. ‘Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. are some of the common schemes. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market.
  • 15. 15 15 (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, ‘show this and get Rs. 15 off on purchase of 5 kg. of Annapurna Atta’. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products. (vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. ‘International Trade Fair’ in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a wellknown example of Fairs and Exhibitions as a tool of sales promotion. (vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (viii)Scratch and win offer: To induce the customer to buy a particular product ‘scratch and win’ scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers. (ix) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.
  • 16. 16 16 LOCAL COMPANIES: a) Pantaloon retails,Indias largest listed retailer and part of the future group, run apparel and electronic store under its lifestyle brands central, E-Zone, Hometown, Future also operates the big bazaar hyper market chain & supermarket brand food bazaar. b) Second-Ranked Reliance Retail is a part of Reliance Industries, Indias largest listed group head by Mukesh Ambani , India`s richest man. c) Shoppers Stop, part of the K. Raheja group which operate in real estate. d) The sprawling Tata group operates 106 stores across formats and run the west side range of apparel stores, under star bazaar. MAJOR FOREIGN COMPANIES: a) Wall-mart store inc has a cash and carry operation with Indian partner Bharti Enterprises, the parent of leading mobile provide Bharti Airtel, and will add new cash-and-carry store this year to its 17 existing stores. b) Tesco, Britten largest retailer, has a tai-up with Trend star bazaar hypermarket chain. Tesco is also looking to enter the wholesale market to through the tie-up. c) Germany`s Metro AG operate 11 wholesale store in India. Company plan to open to 5 cash-and-carry every year. d) Carrefour has 2 cash-and-carry stores in India. The world no. 2 retailer has been seeking a local partner to enter the hyper of super market store.
  • 17. 17 17 OBJECTIVE OF STUDY  To identify by different sales promotion tools used by different situation.  To study sales promotion strategy influence to the customer by retails.  Study the difference sales promotion strategy.  To identify the effect of sales promotion strategy help attract new customer.  To know how a sales promotion strategy help to face competition effectively.  To find out most effective tools of sales promotion.  Suggest for better management of sales promotion strategy in retail industries.
  • 18. 18 18 LIMITATION OF STUDY 1. It is the time constrains. 2. Due to other work load during the period it could be not be possible to explore more area concern pertaining to study. 3. The study was conducted to limited area on THANE region only. 4. Finding of the study are the based on the assumption that the respondents have given correct information.
  • 19. 19 19 NEED FOR STUDY  To day by day increasing demand of retail industry in the Indian market.  This study important to understand effect of sales promotion strategy on the buying behavior of the customer.  The important sales promotion strategy can provide vital intelligence about what the retailer has to do, to increase customer footage to their outlet.  Our study can be useful by other retail business in similar industries.  To understand the customer behavior about different sales promotion strategy.
  • 20. 20 20 LITERATURE REVIEW DEFINITION  “Sales promotion includes incentive- offering and interest creating activities which are generally short- term marketing events other than advertising, personal selling, sales promotion, publicity & direct marketing”. (A.H.Delons)  The purpose of the sales promotion is to stimulate, motivate &influence the purchase A typical sales promotion budget covers almost 70% of the total consumer sales promotional budget. It is also consider as a brand differentiator by many big player like coca-cola, Pepsi, Heinz & many more. For many business experts & academics, sales promotion is regarded typical marketing technique that adds value to a product in order to achieve specific marketing goal. The primary purpose of sales promotion is to offer customer to take chance of winning a price or offering some extra product with the same price. Sales promotion and marketing are inter-related but not have the similar purpose. It is advertising which make a platform for sales promotion where customer can see the direct added value of buying your product. On the other hand, advertising is an intangible promotion of your products to send the marketing message to the customer base. Sales promotion: Advantages & Disadvantages The main advantages associated with promotional sales are-an easy way to learn customer response and its work fast. It is an inexpensive marketing technique. Sales promotion does not always bring positive impact to business, sometime this type of promotion cause negative brand impact to customer mind in the long-term. So, promotional camping needs to be designed taking in to account the consequences of losing brand value. A PIMS study of 1991 suggest that overuse of sales promotion bring low ROI, almost 15% less, in comparison to balanced & calculated promotional offer. It
  • 21. 21 21 is advisable not to use sales promotion as a tool of brand imaging. Advertising is always the best way as far branding concerned. So, marketers need to be care full & must understand the difference between the sales promotion and advertising.
  • 22. 22 22 SALES PROMOTION STRATEGIES: FINAL WORDS A successful strategy will usually have elements of both the push and pull promotional methods. If you are starting a new business and intend to sell a product through retailers, you'll almost certainly need to persuade outlets to purchase and stock your product. You'll also need to raise brand awareness and start building valuable word of mouth referrals. If you have designed a product around the customer and have considered all elements of the marketing mix, both of these aspects should be achievable.
  • 23. 23 23 PUSH AND PULL MARKETING STRATEGIES:  Promotional strategies to get your product or service to market can be roughly divided into two separate camps.  The origin of these two terms refers to the supply chain and how the demand for the product is generated. There are three types of sales promotion strategies: Push, Pull, or a combination of the two. A push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. The company promotes the product through a reseller who in turn promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand in advertising, and/or push a brand to final consumers. Typical tactics employed in push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, and premiums. A pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers as possible to go to retail outlets and request
  • 24. 24 24 the product, thus pulling it through the channel. Consumer-promotion objectives are to entice consumers to try a new product, lure customers away from competitors’ products, get consumers to "load up" on a mature product, hold & reward loyal customers, and build consumer relationships. Typical tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP) displays. Car dealers often provide a good example of a combination strategy. If you pay attention to car dealers' advertising, you will often hear them speak of cash-back offers and dealer incentives. PUSH-PULL STRATEGY Definition PUSH-PULL STRATEGY is the effective simultaneous use of a combination of two marketing strategies: PUSH = 1. (Physical distribution definition) A manufacturing strategy aimed at other channel members rather than the end consumer. The manufacturer attempts to entice other channel members to carry its product through trade allowances, inventory stocking procedures, pricing policies, etc. 2. (Sales promotion definition) The communications and promotional activities by the marketer to persuade wholesale and retail channel members to stock and promote specific products. PULL = 1. (Physical distribution definition) A manufacturing strategy aimed at the end consumer of a product. The product is pulled through the channel by consumer demand initiated by promotional efforts, inventory stocking procedures, etc. 2. (Sales promotion definition) The communications and promotional activities by the marketer to persuade consumers to request specific products or brands from retail channel members. PUT is (1) A stipulated privilege of buying or selling a stated property, security, or commodity at a given price (strike price) within a specified time (for an American-style option, at any time prior to or on the expiration date). A securities option is a negotiable contract in which the seller (writer), for a certain sum of money called the option premium, gives the buyer the right to demand within a specified time the purchase
  • 25. 25 25 (call) or sale (put) by the option seller of a specified number of bonds, currency units, index units, or shares of stock at a fixed price or rate called the strike price. Many options are settled for cash equal to the difference between the aggregate spot price and the aggregate strike price rather than by delivery of the underlying. In the U.S. and many other countries, stock options are usually written for units of 100 shares. Other units of underlying coverage are standard in other option markets. Options are ordinarily issued for periods of less than one year, but longer-term options are increasingly common. (2) Any financial contract that changes in value like an option (asymmetrically), even if the terms of the contract do not state the price relationship in terms of a right or privilege or in other language usually associated with options. Simple diagram explaining some example differences between a push and pull promotional strategy
  • 26. 26 26 RESEARCH METHODOLOGY The system of collecting data for research project is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning method and change management. Some important factors in research methodology include validity of research data, ethics and the reliability of measures most of your work in finish by the time you, finish the analysis of your data. Formulation of research question along with sampling weather probable or non probable is followed by measurement that includes surveys and scaling. This is followed by research design, which may be either experimental or quasi-experimental.the last two stage are data analysis & finally writing the research paper, which is organized carefully into graphs and tables so that only important relevant data is shown.
  • 27. 27 27 DATA COLLECTION: There are two mains source of collecting data. These are are:- PRIMARY DATA:  Primary data has been collected through questionnaires. The data has been collected from first-hand-experience is known as primary data. Primary data has not been published yet and is more reliable, authentic and objective. Primary data has not been changed or altered by human beings, therefore its validity is greater than secondary data.  Primary data has been collected by visiting big bazaar at thane region SECONDERY DATA:  Data collected form a source that has already been published in any form is called as secondary data. The review of literature in many research is based on secondary data. Mostly from book, journals and periodicals.Data has also been collected through internet using various website such as:- Survey Method: Source of Data:  PRIMRY DATA:-  Analysis of the Marketing by personally interview of retailer & customer.  To collect information from customer & sharing the problem phase by them.  Personally analysis the working of their retail sales promotion strategy.  SECONDERY DATA:-  Collection & collecting information various books.
  • 28. 28 28 OBSERVATION & FINDING 1) Temporary price reduction (price off) substantially increasing sales. 2) Sales promotion leads to brand substitution with the product category. 3) Sales promotion leads to purchase acceleration/ stockpiling effects. 4) Sales promotion affects sales in complementary categories.
  • 29. 29 29 CONCLUSION  We have noted that these kind of promotional tools are useful for short term incresing in sales and to induced first trail. These trail of promotional scheme should be consistent and change for time to time depending upon seasons & competitor`s schemes.  With the incresing numbers of supermarkets, the brand package goods work as silence sales person. So in such store, sales promotion plays a more effective role in stimulating customer demands.  The proper use of sales promotion tools helps to achieve the objective of organization.
  • 30. 30 30 QUESTIONNAIRES: Q13. Does the Displays and Promotional offers informed in the store attracts you? a. Yes b. No Q14. Which type of promotional activities attract customers? a. Discounts b. Extra Offer c. 1+1 Offer d. Advertisements Q15. How do you rate the customer schemes of the company? a. Good b. Average c. Poor Q16. Do you think due to displays it is easy to shop in Big Bazaar? a. Yes b. No Q17. Does the Sales Promotion activities of Big Bazaar made you to visit Big Bazaar again? a. Yes b. No Q18. Your overall shopping Experience due to offers and discounts in Big Bazaar? a. Good b. Average c. Poor
  • 31. 31 31 QUESTION FOR THE SURVEY Customer oriented: We would be thankful if you share some of your valuable opinion regarding the following questionnaires. NAME: CONTACT NO: AGE: OCCUATION: 1) How frequently do you visit Reliance fresh/Big-Bazaar? a) Once in a week. b) Twice in a week. c) Once in a month. 2) What do you like the most at big-bazaar? a) Price up to satisfaction. b) Various options available to choose. c) Display of merchandise. d) Promotional scheme. 3) Do you consider promotional schemes while visiting big-bazaar? a) Yes. b) No. 4) What do you like the most at Reliance fresh? a) Price up to satisfaction. B) Various options available to choose. c) Display of merchandise. 4A) Do you consider promotional schemes while visiting Reliance Fresh? c) Yes. d) No.
  • 32. 32 32 5) How do you compare Reliance Fresh with Big- Bazaar? a) Price Factor. b) Availability of Product. c) Customer Service. 6) Do you feel easy to find out the product in Big- Bazaar? a) Yes. b) No. 7) Do you feel easy to find out the product in Reliance Fresh? a) Yes. b) No. 8) How do you feel about the customer service of Reliance fresh? a) Average b) Good c) Excellent.
  • 33. 33 33 QUESTION FOR THE SERVEY Retailer oriented: We would be thankful if you share some of your valuable opinion regarding the following questionnaires. NAME: CONTACT NO: AGE: OCCUATION: 1) Is your sales promotion strategy consumer oriented/ both? a) Yes. b) No. 2) Does customer really satisfied with your sales promotion activities in your Big- Bazaar? a) Yes. b) No 3) Does customer really satisfied with your sales promotion activities in your Reliance fresh? c) Yes. d) No. 4) Customer looks for various schemes in the product? (Both Big-Bazaar & Reliance fresh). a) Coupon. b) Price off. c) Scratch card. d) Lucky draw. e) Bundling. f) Extra quality. 5) Which sales promotion strategy you used most? (BIG-BAZAAR) a) Coupon. b) Price off. c) Scratch card. d) Lucky draw. e) Bundling. f) Extra quality. 6) Which sales promotion strategy you used most? (Reliance fresh) a) Coupon. b) Price off. c) Scratch card. d) Lucky draw. e) Bundling. f) Extra quality. 7) On which category customer attract more? (Big Bazaar)
  • 34. 34 34 a) FMCG. b) Apparels. C) Stationary. d) Grocery. e) Luggage. F) Consumer Durable. 8) On which category customer attract more? (Reliance Fresh) b) FMCG. b) Apparels. C) Stationary. d) Grocery. e) Luggage. F) Consumer Durable. 9)
  • 35. 35 35 BIBLIOGRAPHY BOOKS C.R.Kothari “research methodology methods & tequnique”. New age entemational (p) ltd. Publishers 2nd edition, page no 95, 96, 102. Philip Kotler, “marketing management”, 13th edition, Pearson education, Asia publication. Page no. 355 to 366. INTERNET:  http://www.ril.com/htm/aboutus/about_brands.html.  www.big-bazaar.com.  Study_ of_ consumer_ oriented_ sales_ promotion_ in_ FMCG. Zip- zip archive, unpacked size 574, 564 bytes.  Kumar, v. 2010. Promotional strategy of big bazaar & managing the image of big bazaar in retailing (online) available at; http/;//www. Skyline College. Com/ blog/ dissertation/ promotional- strategy- of- big bazaar- maintaining- the- image- in- retailing (accessed 19 march 2011).
  • 36. 36 36