A

GRAND PROJECT REPORT

ON

ROLE OF SALES PROMOTION ON FMCG

A grand Project report submitted in Partial Fulfillment of award of MBA Degree

PROJECT GUIDE:
PROF. SHARIF MEMON PROF. BHARGAV MODI

SUBMITTED BY:
VISHAL PATEL (08077) JITENDRA RAJAI (08080) SUBMITTED TO:

N.R.INSTITUTE OF BUSINESS MANAGEMENT AHMEDABAD

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This is to certify that M'. V 12"# P",&# and M'. J ,&!5'" R"*" the students of MB !nd year of "#R# Institute of Business Mana$e%ent& h%eda'ad ha(e co%)*eted their Grand Pro+ect R)#& )f 1"#&1 (')-), )!1 ! FMCG in the year !,,-.!,/, in )artia* fu*fi**%ent of Gu+arat Uni(ersity re0uire%ents for the a1ard of the de$ree of Master of Business d%inistration#

D '&+,)' Prof# Dr# 2itesh Ru)are*

G'"!5 P')*&+, G/ 5& Prof Sharif Me%on Prof Bhar$a( Modi

D",&6

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PREFACE
In this a$e of $*o'a*i7ation hy)er co%)etition has 'eco%e a re$u*ar feature# Today the %ar5ets are no *ess then 'att*e$rounds and one has to stri(e (ery hard for sur(i(a* and $ro1th# Due to (ery ra)id industria*i7ation a** o(er the 1or*d the de%and for the %ana$eria* )ersonne* and the ad%inistrati(e )ersonne* has increased# The )erfect study of Mana$e%ent in(o*(es 'oth the theoretica* as 1e** as )ractica* as)ects# To sur(i(e in this hi$h*y co%)etiti(e %ar5et 8Practica* 9no1*ed$e: is as re*e(ant as the Theoretica*# The si$nificance of MB De$ree is that the Theoretica* as)ects& 1hich a student *earns throu$hout the year in the c*ass sessions& can 'e )ractica**y a))*ied throu$h different )ro+ects& 1hich one underta5es# 9ee)in$ in tune 1ith this doctrine& 1e ha(e tried to a))*y theoretica* as)ects throu$h out the )ro+ect& 1hich 1e *earned under the course of %ana$e%ent# In this )ro+ect %ore e%)hasi7e $i(en to the (arious too*s of sa*es )ro%otion and its i%)act on consu%ers 'uyin$ decisions# ctua**y in recent trend to so%e e;tent this techni0ue a*so 'eco%e (icti% of c*utter& e(en thou$h it can 'e e*i%inated 'y $eneratin$ inno(ati(e and %ore attracti(e too*s to *ure the custo%ers# "o1 a day %ost of the <MCG co%)anies considerin$ sa*es )ro%otion as an i%)ortant )art of their %ar5etin$ strate$y# <ro% the ana*ysis of sur(ey it 'eco%es c*ear that consu%ers do res)onse to the sa*es )ro%otion ca%)ai$n& 'ut there are custo%ers 1ho stron$*y )refer to stic5 to 'rand na%e#

G3S "RIBM Gu+arat Uni(ersity h%eda'ad G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6

Jitendra Ra+ai =isha* Pate*

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AC7NO8LEDGEMENT

E(ery study re0uires a $uidance of so%eone 1ho is 1or5in$ in that fie*d# <irst*y 1e 1ou*d *i5e to than5 Director Sir Dr# D' H ,&12 R/("'&# for )ro(idin$ an o))ortunity of )re)arin$ a Grand Pro+ect Re)ort and a**o1in$ us to use the resources of the institution durin$ this )ro+ect# >e are e;tre%e*y than5fu* to our Pro+ect Guide& P')f S2"' f M&-)! "!5
P')f B2"'9": M)5 of "RIBM for their )recious $uidance re$ardin$ the

)re)aration of the Pro+ect Re)ort# Their $uidance has )ro(ed to 'e usefu* and 1ithout the%& the )re)aration of this re)ort %i$ht not ha(e 'een )ossi'*e# >e are a*so than5fu* to the other facu*ty %e%'ers of "RIBM for e;tendin$ their (a*ua'*e su))ort for this )ro+ect# >e a*so e;tend our sincere than5s to the Res)ondents& 1ho he*)ed us durin$ the course of our )ro+ect and for their $racious attitude# >e 1ou*d *i5e to ta5e this o))ortunity to e;tend our 1ar% thou$hts to those 1ho he*)ed %e in %a5in$ this )ro+ect a 1onderfu* e;)erience# 3ast 'ut not the *east? 1e 1ou*d a*so *i5e to than5 our fa%i*y for their su))ort and encoura$e%ent#

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E;&+/, :& S/--"'%

s a )art of our study curricu*u% it is necessary to conduct a $rand )ro+ect# It )ro(ides us an o))ortunity to understand the )articu*ar to)ic in de)th and 1hich *eads to throu$h to that to)ic# My to)ic for the $rand )ro+ect is tit*ed as 8Study of consu%er oriented sa*es )ro%otion in <MCG sector: in 1hich e%)hasis $i(en to the effect of sa*es )ro%otion on 'uyin$ ha'its of consu%ers# To start 1ith 1e 1i** $i(e 'rief infor%ation re$ardin$ <MCG sector then %o(in$ to the %ain to)ic 1e 1i** e;)*ain 1hat is to)ic is a** a'out# Pro%otion is one of the )i**ars of %ar5etin$ %i; and sa%e 1ay sa*es )ro%otion is a*so one of the e*e%ents of )ro%otion# >ith res)ect to consu%er oriented sa*es )ro%otion there are certain theories narrated as o)erant conditionin$ and )ro+ecti(e theory# Based on secondary source certain theoretica* as)ects are a*so inc*uded as a )art of study# Then after concentration is $i(en to the )ri%ary research# It inc*udes the ana*ysis and resu*ts of sur(ey 1hich 1as focuses on consu%erAs 'eha(ior to1ards sa*es )ro%otion ca%)ai$n# The sur(ey 1as conducted 1ith the he*) of structured 0uestionnaire# t *ast conc*usion of re)ort& findin$s and su$$estions 1as $i(en 'ased on study of secondary source as 1e** as )ri%ary research#

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INDE<
S'. N). =. >. ?. 3. @. A. 7. 8. B. =0. ==. =>. =?. TOPICS R&1&"'+2 M&,2)5)#)9% )f ,2& 1,/5% I!,')5/+, )! I!,')5/+, )! ,) ,2& ,)( + S"#&1 (')-), )! 1,'",&9 &1 S8OT A!"#%1 1 D"," A!"#%1 1 )f ,2& 1/':&% F !5 !91 )f ,2& '&()', R&+)--&!5", )!1 L - ,", )!1 E-&'9 !9 T'&!51 C)!+#/1 )! B 0# )9'"(2% A!!&;/'&6 C/&1, )!!" '& P"9& N). C /, !@ !D 6, C/ C6 CB CC CE CCD

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RESEARCH METHODOLOGD
R&1&"'+2 O0*&+, :&16 /# To study consu%er )references 1ith res)ect to sa*es )ro%otion in <MCG sector# !# To e;a%ine tradeoffs& re*ati(e i%)ortance of different attri'utes 1hi*e res)ondin$ to a sa*es )ro%otion offer# 6# To study the effect of sa*es )ro%otions in <MCG sector es)# in soa)s and deter$ent industry# @# To study consu%er 'eha(ior in )urchase of soa)s and deter$ent P')5/+, +",&9)' &1 /!5&' 1,/5% DETERGENTS: TOILETERIES >ashin$ Po1der for C*othes Soa)s

R&1&"'+2 D&1 9!
Research desi$n se*ected for this )ro+ect is Descri)ti(e#

D"," +)##&+, )! M&,2)56

(") P' -"'% D"," C)##&+, )! M&,2)56 Sur(ey %ethod 1as used for )ri%ary data co**ection# >e used 0uestionnaire as an instru%ent for sur(ey %ethod# Structured 0uestionnaire# Ty)e of 0uestionnaire: O)en ended and c*osed ended# (0) S&+)!5"'% D"," C)##&+, )! -&,2)56 Reference 'oo5s# Internet#

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S"-(# !9 D&," #
/# Tar$et )o)u*ation: The )o)u*ation for this research study consists of the residence of h%eda'ad# !# Sa%)*in$ unit: 6# Sa%)*e si7e: In this study the sa%)*in$ unit is indi(idua* consu%er# =00 consu%ers =00 retai*ers#

@# Sa%)*in$ %ethod: The sa%)*e is se*ected 'y usin$ con(enience. sa%)*in$ %ethod#

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FMCG C)!+&(, "!5 D&f ! , )!6

The ter% <MCG Ffast %o(in$ consu%er $oodsG& a*thou$h )o)u*ar and fre0uent*y used does not ha(e a standard definition and is $enera**y used in India to refer to )roducts of e(eryday use# Conce)tua**y& ho1e(er& the ter% refers to re*ati(e*y fast %o(in$ ite%s that are used direct*y 'y the consu%er# Thus& a si$nificant $a) e;ists 'et1een the $enera* use and the conce)tua* %eanin$ of the ter% <MCG#

<urther& difficu*ties cro) u) 1hen atte%)ts to de(ise a definition for <MCG# The )ro'*e% arises 'ecause the conce)t has a retai* orientation and distin$uishes 'et1een consu%er )roducts on the 'asis of ho1 0uic5*y they %o(e at the retai*erAs she*(es# The %oot 0uestion therefore& is 1hat industry turnaround thresho*d shou*d 'e for the ite% to 0ua*ify as an <MCG# Shou*d the turnaround ha))en dai*y& 1ee5*y& or %onth*yH One of the factors on 1hich the turnaround de)ends is the )urchase cyc*e# 2o1e(er& the )urchase cyc*e for the sa%e )roduct tend to (ary across )o)u*ation se$%ents# Many *o1.inco%e househo*ds are forced to 'uy certain )roducts %ore fre0uent*y 'ecause of *ac5 of *i0uidity and stora$e s)ace 1hi*e re*ati(e*y hi$h.inco%e househo*ds 'uy the sa%e )roducts %ore infre0uent*y# Si%i*ar*y& the )urchase cyc*e a*so tends to (ary 'ecause of cu*tura* factors# Most Indians& ty)ica**y& )refer fresh food artic*es and therefore to 'uy re*ati(e*y s%a** 0uantities %ore fre0uent*y# This is in shar) contrast 1ith 1hat ha))ens in %ost 1estern countries& 1here the )ractice of 'uyin$ and soc5in$ foods for re*ati(e*y *on$er )eriod is %ore )re(a*ent# Thus& shou*d the in(entory turnaround thresho*d 'e uni(ersa*& or shou*d it a**o1 for inco%e& cu*tura* and 'eha(iora* nuancesH

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Indi(idua* ite%s are of s%a** (a*ue# But a** <MCG )roducts )ut to$ether account for a si$nificant )art of the consu%erIs 'ud$et# The consu%er 5ee)s *i%ited in(entory of these )roducts and )refers to )urchase the% fre0uent*y& as and 1hen re0uired# Many of these )roducts are )erisha'*e# The consu%er s)ends *itt*e ti%e on the )urchase decision# Rare*y does he4she *oo5 for technica* s)ecifications Fin contrast to industria* $oodsG# Brand *oya*ties or reco%%endations of re*ia'*e retai*er4dea*er dri(e )urchase decisions# Tria* of a ne1 )roduct i#e# 'rand s1itchin$ is often induced 'y hea(y ad(ertise%ent& reco%%endation of the retai*er or nei$h'ors4friends# These )roducts cater to necessities& co%forts as 1e** as *u;uries# They %eet the de%ands of the entire cross section of )o)u*ation# Price and inco%e e*asticity of de%and (aries across )roducts and consu%ers#

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The i%)ortance of consu%er sa*es )ro%otion in the %ar5etin$ %i; of the fast %o(in$ consu%er $oods F<MCGG cate$ory throu$hout the 1or*d has increased# Co%)anies s)end considera'*e ti%e in )*annin$ such acti(ities# 2o1e(er& in order to enhance the effecti(eness of these acti(ities& %anufacturers shou*d understand consu%er and retai*er inter)retations of their )ro%otiona* acti(ities# The study here )ertains to consu%erAs )erce)tions re$ardin$ sa*es )ro%otion# So%e )ast researches ha(e su$$ested that )ro%otion itse*f has an effect on the )ercei(ed (a*ue of the 'rand# This is 'ecause )ro%otions )ro(ide uti*itarian 'enefits such as %onetary sa(in$s& added (a*ue& increased 0ua*ity and con(enience as 1e** as hedonic 'enefits such as entertain%ent& e;)*oration and se*f.e;)ression# Broad*y s)ea5in$ %ost of the co%)anies usin$ Mar5etin$ Mi; 1hich inc*udesJ Price P*ace FChanne* of Distri'utionG Product P')-), )! These are the four 'asic )i**ar of %ar5etin$ %i;# Most of the %ar5etin$ strate$ies are 'ui*t on the 'asis of these criteria# Pro%otion is one of the i%)ortant e*e%ents of %ar5etin$ %i;# There are so %any e*e%ents of )ro%otion such as J d(ertisin$ Direct Mar5etin$ Pu'*ic Re*ations S"#&1 P')-), )! G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, /!

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Traditiona**y& sa*es Pro%otions ha(e 'een used 'y %ar5eter to increase sa*es in the short ter%# 2o1e(er& in the *ast fe1 decades this co%%unication too* has e(o*(ed and no1 is considered fro% a strate$ic )oint of (ie1# <or this reason& it is necessary to rea*i7e ne1 studies in this area and study ho1 consu%ers e(a*uate sa*es )ro%otions# Sa*es )ro%otions ha(e $ro1n in 'oth i%)ortance and fre0uency o(er the )ast fe1 decades# *thou$h an accurate esti%ate for tota* sa*es )ro%otions e;)enditures does not e;ist& 1e can 'e sure that the trend is u)# Sa*es )ro%otion ser(es three essentia* ro*es: It infor%s& )ersuades and re%inds )ros)ecti(e custo%ers a'out a co%)any and its )roducts# E(en the %ost usefu* )roduct or 'rand 1i** 'e a fai*ure if no one 5no1s that it is a(ai*a'*e# %any hands 'et1een a )roducer and consu%ers# Therefore& a )roducer has to infor% channe* %e%'ers as 1e** as u*ti%ate consu%ers a'out the attri'utes and a(ai*a'i*ity of his )roducts# The second )ur)ose of )ro%otion is )ersuasion# The cut throat co%)etition a%on$ different )roducts )uts tre%endous )ressure on their %anufacturers and they are co%)e**ed to underta5e sa*es )ro%otion acti(ities# The third )ur)ose of )ro%otion is re%indin$ consu%ers a'out )roducts a(ai*a'i*ity and its )otentia* to satisfy their needs# <ro% these e*e%ents Sa*es Pro%otion is the e*e%ent 1hich is in the focus of this )ro+ect# <urther Sa*es Pro%otion is 0uite 'road ter% it inc*udes J C)!1/-&' O' &!,&5 S"#&1 P')-), )! T'"5& O' &!,&5 S"#&1 P')-), )! s 1e 5no1& channe*s of distri'ution ta5e %ore ti%e in creatin$ a1areness 'ecause a )roduct has to )ass throu$h

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C)!1/-&' O' &!,&5 S"#&1 P')-), )!

Consu%er Oriented Sa*es Pro%otion is the %ain to)ic of this )ro+ect# 2ere e%)hasi7e is $i(en to %oti(ate consu%er to increase sa*es# Consu%er Oriented Sa*es Pro%otion inc*udes Sa%)*in$& Cou)onin$& Pre%iu%s& Contest& Refunds& Re'ates& Bonus Pac5As& Price.off& E(ent %ar5etin$ etc# D&f ! , )!6 <or the )ur)ose of this study& fo**o1in$ definitions of sa*es )ro%otion 1ere 5e)t in %ind# 9ot*er defines sa*es )ro%otion as: 8Sa*es )ro%otion consists of a di(erse co**ection of incenti(e too*s& %ost*y short.ter% desi$ned to sti%u*ate 0uic5er and4or $reater )urchase of )articu*ar )roducts4ser(ices 'y consu%ers or the trade#: Ro$er Stran$ has $i(en a %ore si%)*istic definition i#e# 8sa*es )ro%otions are short.ter% incenti(es to encoura$e )urchase or sa*es of a )roduct or ser(ice#: 2ence& any for%s of incenti(es F)rice cut or (a*ue added natureG offered for short )eriod either to trade or consu%ers are considered as sa*es )ro%otion acti(ities#

M"'E&,&'F1 /1&1 +)!1/-&' )' &!,&5 1"#&1 (')-), )! ,))#1 f)' ,2& f)##)w !9 '&"1)!16 To increase short ter% sa*es To induce tria* To reduce in(entory To esta'*ish a 'rand na%e To %a5e cross se**in$ To co)e u) 1ith co%)etition

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To a(oid ad(ertisin$ c*utter

T))#1 )f C)!1/-&' O' &!,&5 S"#&1 P')-), )!6

There are so %any too*s or techni0ue a(ai*a'*e to the %ar5eters for achie(in$ o'+ecti(e of sa*es )ro%otion# These too*s shou*d 'e used considerin$ a** other factors affectin$ such as cost& ti%e& co%)etitors& a(ai*a'i*ity of $oods etc# These too*s are as underJ /# Cou)ons !# Price.Off 6# <ree'ies @# Scratch Cards B# 3uc5y Dra1s C# Bund*in$ Offer E# E;tra Kuantity 3etAs ha(e *oo5 at each too*J

=. C)/()!16
Cou)on is the o*dest and %ost 1ide*y used 1ay of sa*es )ro%otion# Cou)ons ha(e 'een used since /-DB# It is %ost*y used 'y )ac5a$ed $oods# It is 1orth1hi*e to use cou)on as a )ro%otion too* 'ecause data sho1s that %ar5et for )ac5a$ed $oods increased fro% /C 'i**ion in /DC- to 6/, 'i**ion in /DD@# To 'oost u) the sa*es not on*y %anufacturer 'ut retai*ers )ersona**y can a*so used# *eads to re$u*ar sa*es# cou)on *eads to )rice reductions so as to encoura$e )rice sensiti(e custo%ers# "on users can try a )roduct 1hich %ay

>. P' +&$)ff6

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)rice.off is si%)*y a reduction in the )rice of the )roduct to increase sa*es and is (ery often used 1hen introduction a ne1 )roduct# %ar5et situation# Price.off is the %ost )referred sa*es )ro%otion techni0ue 'ecause consu%ers res)onse (ery )ositi(e*y to this sche%e# "ot on*y that 'ut it a*so cause *ar$e increase in sa*es (o*u%e# Price.off reductions are ty)ica**y offered ti$ht on the )ac5a$e throu$h s)ecia**y %ar5ed )rice )ac5s# E#$# 9rac5 Jac5 offers 6,L Price.off# reduction in )rice a*1ays increases sa*es 'ut the use of this techni0ue shou*d 'e carefu**y considered in the current

?. F'&&0 &1
<ree'ies are a )o)u*ar for% of %odern %ar5etin$ and are so%e of the 'est thin$s a'out the internet# The definition of free'ies is )roducts or ser(ices $i(en a1ay for free at no cost to the consu%er# >e** thatAs the definition 1e ca%e u) 1ith# I a% a 'ar$ain free'ie sho))er& )retty %uch $oin$ for any free )roduct and infor%in$ e(eryone a'out it# t different ti%es& 'i$ and s%a** co%)anies often $i(e a1ay )ri7es and %oney 1hich is too $ood to 'e true# Often itAs in the )ursuit of %ore custo%ers or a *ar$er fan 'ase and it often 1or5s#

3. S+'",+2 C"'51
scratch card Fa*so ca**ed a scratch off& scratch tic5et& scratcher& scratchie& scratch.it& scratch $a%e& scratch.and.1in or instant $a%eG is a s%a** to5en& usua**y %ade of card'oard& 1here one or %ore areas contain concea*ed infor%ation: they are co(ered 'y a su'stance that cannot 'e seen throu$h& 'ut can 'e scratched off#

@. B/!5# !9 Off&'1
G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, /E

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

Product 'und*in$ is a %ar5etin$ strate$y that in(o*(es offerin$ se(era* )roducts for sa*e as one co%'ined )roduct# This strate$y is (ery co%%on in the soft1are 'usiness Ffor e;a%)*e: 'und*e a 1ord )rocessor& a s)readsheet& and a data'ase into a sin$*e office suiteG& in the ca'*e te*e(ision industry Ffor e;a%)*e& 'asic ca'*e in the United States $enera**y offers %any channe*s at one )riceG& and in the fast food industry in 1hich %u*ti)*e ite%s are co%'ined into a co%)*ete %ea*# 'und*e of )roducts is so%eti%es referred to as a )ac5a$e dea* or a co%)i*ation or an antho*o$y#

F"+,)'1 I!f#/&!+ !9 C)!1/-&' O' &!,&5 1"#&1 (')-), )!6

Main*y four factors shou*d 'e ta5en into account 1hi*e deter%inin$ the sa*es )ro%otion )ro$ra%# M Tar$et %ar5et M "ature of )roduct M Sta$e of )roduct *ife cyc*e M Bud$et a(ai*a'*e for )ro%otion

=. T"'9&, M"'E&,6 >hi*e doin$ sa*es )ro%otion& %ar5eter %ust 5no1 1ho their tar$et %ar5et is? other1ise there is no use of a** effort 'ecause it *eads to no 1here# tar$et %ar5et can 'e in any of the sta$es of 'uyin$ hierarchy i#e# a1areness& 5no1*ed$e& *i5in$& )references& con(iction and )urchase# Each sta$e defines a )ossi'*e $oa* of )ro%otion# >. N",/'& )f ,2& (')5/+,6 There are (arious )roduct attri'utes 1hich inf*uence sa*es )ro%otiona* strate$y# >hen the unit )rice is *o1 the %anufacturer as 1e** as the custo%er has *o1 ris5 'ut he G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, /-

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

can $et the 'enefit of %ass %ar5etin$# Therefore& %ass %ar5etin$ re0uires %ass sa*es )ro%otion sche%es# Sa*es )ro%otion sche%e differ for )roducts *i5e its dura'i*ity& )erisha'*e $oods etc# ?. S,"9& )f (')5/+, L f& C%+#&6 Sa*es )ro%otion strate$ies are inf*uenced 'y the *ife cyc*e of a )roduct# >hen a ne1 )roduct introduced& )ros)ecti(e 'uyers %ust 'e infor%ed a'out its e;istence and its 'enefits and %idd*e%en %ust 'e con(inced to stoc5 it# 3ater& if a )roduct 'eco%es successfu*& co%)etition intensifies and %ore e%)hasis is )*aced on sa*es )ro%otion to increase its sa*es# 3. B/59&, A:" #"0#& f)' P')-), )!6 The funds a(ai*a'*e for )ro%otion are the u*ti%ate deter%inant of the )ro%otiona* )ro$ra%%e# 'usiness 1ith a%)*e funds can %a5e %ore effecti(e use of sa*es )ro%otion )ro$ra%%e than a fir% 1ith *i%ited financia* resources# The 'ud$et for sa*es )ro%otion can 'e )re)ared 'y the fo**o1in$ %ethodsJ Percenta$e of Sa*es <i;ed funds a(ai*a'*e for sa*es )ro%otion <o**o1in$ the co%)etition& and Bud$etin$ 'y o'+ecti(e#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, /D

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

S"#&1 P')-), )! f')- ,2& C)!1/-&'1 () !, )f : &w

8 ## !9!&11 ,) 0/% )! 1"#&1 (')-), )! )ff&' Si;ty )er cent of the sa%)*e did not sho1 1i**in$ness to 'uy a 'rand due to )ro%otion 1hi*e 6,L sho1ed 1i**in$ness and /,L 1ere not sure# This indicates that 1hen 6,L sho1ed 1i**in$ness and /,L consu%ers 1ho 1ere not sure& these $rou)s %i$ht 'e *ured throu$h inno(ati(e and *ucrati(e sa*es )ro%otion offer# A0 # ,% ,) !5/+& ,' "# <orty )er cent of the res)ondents had said that sa*es )ro%otion had the a'i*ity to induce tria* 1hich reinforces the a'o(e inference# L)!9$,&'- -("+, In order to understand a'i*ity of the )ro%otions to increase *on$.ter% sa*es& res)ondents 1ere as5ed a'out continuity of )urchase of a 'rand after the 1ithdra1a* of )ro%otion# Ei$hty )er cent of the res)ondents indicated that they 1ou*d not continue# But !,L said they 1ou*d# Thus& it cou*d 'e inferred that )ro%otions in this cate$ory F*o1 in(o*(e%ent )roductsG %i$ht encoura$e tria* and 'rand s1itchin$ 'ut not *on$ ter% *oya*ty# P'&f&'&!+& )f S+2&-&1: Price off 1as the %ost )referred ty)e of sche%e# Ma;i%u% custo%ersA ran5ed )rice.offs as nu%'er one or t1o# P&'+& :&5 C/"# ,%: Ma+ority of res)ondents had a )erce)tion that the 0ua*ity of the )ro%oted 'rands re%ained the sa%e durin$ )ro%otion& 1hi*e so%e of the% fe*t that it 1as inferior than G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !,

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

'efore# It can 'e inferred that )ro%otions 1ere not *eadin$ to ne$ati(e 'rand 0ua*ity )erce)tions# It is found that so%e custo%er stron$*y )referred to 'uy their re$u*ar 'rand and said that sa*es )ro%otion 1ou*d not 1ea5en their *oya*ty to1ards the 'rand# P&'+&(, )!1 '&9"'5 !9 /!5&'#% !9 +)-("!% -), :", )!1 On ta))in$ )erce)tionsA re$ardin$ under*yin$ co%)any %oti(ations for sa*es )ro%otion& 8to increase sa*es: 1as ran5ed hi$hest fo**o1ed 'y 8to attract s1itchers: and 8to se** e;cess stoc5s:# >hi*e )ro(idin$ (a*ue to custo%ers: and 8To reinforce co%)any i%a$e: 1ere ran5ed *o1est# This indicates that consu%ers 'e*ie(ed that co%)anies 1ere underta5in$ such acti(ities on*y for their o1n 'enefit and not for the 'enefit of consu%ers# <indin$s fro% retai*er and consu%er )erce)tion studies& it is e(ident that there 1as a %atchin$ of )erce)tions re$ardin$ nature of sche%e F)rice offs as %ost )referred ty)e of sche%e %entioned 'y consu%ers and retai*ersA )erce)tions a'out consu%er )referencesG# Since retai*ers o'ser(e consu%ers in store 'eha(ior 1ere fre0uent*y and direct*y& their )erce)tions re$ardin$ )ro(idin$ consu%er 'eha(ior are *i5e*y to 'e accurate# Such in)uts fro% the retai*ers 1ou*d 'e usefu* to co%)anies# The retai*ers had the )erce)tion that those sche%es 1hich 1ere announced throu$h %ass %edia had 'etter res)onse# This 1as reinforced 'y the consu%er sur(ey 1hich sho1ed that reca** in case of hea(i*y )ro%oted sche%es on T= 1as found to 'e (ery hi$h# Retai*ersA )rediction of co%)aniesA %oti(ation for offerin$ sa*es )ro%otion 1ere %atchin$ 1ith the consu%er )erce)tion re$ardin$ the sa%e# Thus 'oth (ie1ed that co%)anies 1ere usin$ sa*es )ro%otion acti(ities %ain*y to increase short ter% sa*es or encoura$e s1itchin$ or se**in$ e;cess stoc5 and not rea**y to $i(e (a*ue 'enefit or enhance4reinforce 'rand4co%)any i%a$e#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !/

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

T'"5& O' &!,&5 S"#&1 P')-), )!

Trade Oriented Sa*es Pro%otion ai%ed to %oti(ate channe* %e%'er of the co%)any and to encoura$e the% to )ush co%)anyAs )roduct# Trade Oriented Sa*es Pro%otion inc*udes dea*er contest and incenti(es& trade a**o1ances# Point.of.)urchase dis)*ays& sa*es trainin$ )ro$ra%s& trade sho1s& coo)erati(e ad(ertisin$& and other )ro$ra%s desi$ned to %oti(ate distri'utors and retai*ers to carry a )roduct and %a5e an e;tra effort to )ush it to their custo%ers

S"#&1 (')-), )! f')- ,2& '&," #&'F1 () !, )f : &w6

P&'+&(, )!1 )! S+2&-& P'&f&'&!+& It 1as found that retai*er )ercei(ed )rice offs as a 'etter for% of sa*es )ro%otion acti(ity# Price offs in their o)inion had re*ati(e*y a $reater i%)act co%)ared to any other for% of sa*es )ro%otion acti(ity *i5e Bonus )ac5s& Pre%iu%& Contests etc# Retai*ers )referred )rice offs the %ost& then 'onus )ac5& )re%iu%& contests& in order of i%)ortance# P&'+&(, )!1 "0)/, B/% !9 R)#&1 Retai*ers (ie1ed that the )erson 1ho ca%e to the sho) F1ho %ay 'e a %aid& son& dau$hter& dau$hter.in.*a1 and chi*dG 1as the decider of a toi*et soa) 'rand and not the Inco%e )ro(ider Fe#$# head of the fa%i*yG# It cou*d 'e inferred that (isi'i*ity of infor%ation a'out the sa*es )ro%otion acti(ity at the )oint of )urchase cou*d resu*t into the )urchase of a )ro%oted 'rand# P&'+&(, )!1 "0)/, ,2& ' ')#& ! 5&+ 1 )!$-"E !9

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !!

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

Retai*er had re*ati(e*y (ery *o1 inf*uence in affectin$ choice# It cou*d 'e inferred that (isi'i*ity and a1areness a'out the sche%e 1ere the critica* success factors so that )u** cou*d 'e created#

P&'+&(, )!1 "0)/, R&1()!1& ,) S"#&1 P')-), )! Off&'1 They 'e*ie(ed that youn$er a$e.$rou)s 1ere %ore e;)eri%enta* in nature& a%ena'*e to tryin$ ne1 'rands& and sou$ht4*oo5ed for or as5ed 1hether there 1ere anyG sa*es )ro%otion sche%es runnin$ on any toi*et soa) at the ti%e of )urchase# P&'+&(, )!1 "0)/, C)--/! +", )!1 )f S"#&1 P')-), )! S+2&-&1 Retai*ers )ercei(ed that ro*e of 1ord of %outh and te*e(ision ad(ertisin$ )*ayed an i%)ortant )art in )ro(idin$ infor%ation in)uts to consu%ers re$ardin$ sa*es )ro%otion acti(ities# V"' ", )!1 ! I!f)'-", )! F#)w S%a**er Fnon.su)er%ar5et& s%a** for%at storeG retai*ers recei(ed re*ati(e*y *ess su))ort co%)ared to su)er%ar5ets in ter%s of ser(icin$& %ar$ins& infor%ation a'out sa*es )ro%otion acti(ities fro% the dea*ers# Many a ti%es s%a** retai*ers 1ere on*y infor%ed (er'a**y a'out sa*es )ro%otion sche%es 'y the dea*er sa*es%en durin$ the schedu*ed 1ee5*y (isits# D&"#&'$R&," #&' D%!"- +1 t the ti%e of sa*es )ro%otion acti(ities& dea*ers had tendency to )ush un1anted stoc5s onto the s%a**er retai*ers# In fact these retai*ers )referred to stoc5 (ariety of 'rands and 1anted )ay%ent for she*f and 1indo1 dis)*ay to increase traffic into their G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !6

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

store# 2o1e(er& su)er%ar5ets and 'i$ retai*ers 1ere )a%)ered and $i(en s)ecia* ser(ices and $i(en 'etter %ar$ins and 'etter a**o1ances#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !@

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

M"'9 !1 It 1as found that in sa*es )ro%otion sche%es %ar$ins (aried fro% C to/BL de)endin$ of the si7e of the retai* out*et& 'ar$ainin$ )o1er of a retai*er& 0uantity ordered 'y hi% etc# Most*y %ar$ins 1ere *in5ed to si7e of the (o*u%es that 1ere ordered# P&'+&(, )!1 "0)/, ,&'-1 "!5 +)!5 , )!1 Retai*ers 1ere not found to 'e ha))y 1ith sa*es )ro%otion sche%es 1here their %ar$ins 1ere cut on the )rete;t of +ust fast %o(e%ent of in(entory of the 'rand 'ein$ )ro%oted# *so if additiona* incenti(e 1as offered it 1as su'+ect to %ini%u% )erfor%ance re0uire%ent# N",/'& )f POP Retai*ers indicated that %ost of the POP FPoint of PurchaseG %ateria*s 1ere %eant for 'rand ad(ertise%ent and not for $i(in$ infor%ation re$ardin$ the sche%es# Thus it cou*d 'e inferred that co%)anyAs fo**o1 u) 1as not ade0uate# S&': + !9 5/' !9 5/'", )! )f S+2&-& In stoc5.out situation durin$ the runnin$ of the sa*es )ro%otion sche%es& s%a**er retai*ers had to 1ait for re)*enish%ent of stoc5s ti** the ne;t schedu*ed 1ee5*y (isit 'y the dea*er sa*es%an 'ut 'i$ retai*ers 1ere ser(iced on te*e)honic re0uest for re)*enish%ent of stoc5s# This c*ear*y indicated the dis)arity in treat%ent# P')0#&- )f #&f,$):&' *efto(er stoc5 at the end of any sche%e 1as re0uired to 'e so*d 'y the retai*ers 'efore they ordered fresh stoc5s# In case of 'onus )ac5s sche%e& *efto(er stoc5 1as often dis%ant*ed Fcut o)en 'uy one $et one freeG and so*d the% indi(idua**y as a re$u*ar G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !B

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

soa)# This a))roach of the co%)any *eads to %isa))ro)riation 1hich in turn cou*d resu*t in ad(erse 'rand i%a$e# G f,1 f)' R&," #&' -), :", )! Co%)anies at ti%es 1ere re1ardin$ retai*ers 'y $i(in$ free $ifts *i5e ther%os f*as5s or c*oc5s if they so*d %ore than certain 0uantity in a $i(en )eriod# Co%)anies 1ere %a5in$ a ha*f.hearted effort to %oti(ate retai*ers# P&'+&(, )!1 "0)/, -"11 -&5 " "!!)/!+&-&!,1 Retai*ers (ie1ed that 1hene(er sa*es )ro%otion sche%e 1as announced on T=& it created )u** and they 1ere %ore than 1i**in$ to stoc5 such 'rands# <or e;a%)*e Medi%i; and Detto* contest 1as not ad(ertised on T=& hence there 1as (ery *itt*e a1areness *eadin$ to unso*d stoc5 ti** C %onths# >hi*e 3u; Go*d Star 1hich 1as hea(i*y )ro%oted on T#=# is reca**ed e(en today# P)1, P')-), )! B&2": )' Retai*ers o'ser(ed that in %ost cases sa*es )ro%otion sche%e on a 'rand %i$ht encoura$e a 'uyer to s1itch a 'rand te%)orari*y 'ut he 1ou*d re(ert 'ac5 to ori$ina* 'rand after )ro%otion# H"!5# !9 P')0#&-1 Many a ti%eAs retai*ers had to hand*e (arious sa*es )ro%otion offers si%u*taneous*y in a cate$ory and a*so across cate$ories and there 1as no for%a* co%%unication )*annin$ either fro% the dea*er or the co%)any# Re%e%'erin$ each offer and hand*in$ 1as a )ro'*e% es)ecia**y for a s%a** retai*er 1hich 1as often an as one.%an sho1#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !C

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

82% 5) S"#&1 (')-), )! 1+2&-&1 "ff&+, 1"#&1G

There are three %echanis%s 'ehind these facts# It is Purchase 0uantity& Brand s1itchin$ and Cate$ory e;)ansion# F '1,H consu%er can increase the 0uantity they 'uy +ust 'ecause the )roduct is on sa*e# S&+)!5H consu%ers are inducin$ to )urchase another 'rand different fro% the one they 1ou*d ha(e )urchased 1hen there is no )ro%otiona* incenti(e# F !"##%H consu%erAs tota* consu%)tion of the )roduct cate$ory is increased 'y the )ro%otion# 2o1e(er& in the *on$ ter% this )ositi(e effect %ay 'e di*uted 'ecause a )ro%otiona* ca%)ai$n has no )er%anent effect in the sa*es of the fir%

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !E

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

S"#&1 P')-), )! S,'",&9%

Sa*es are the *ife'*ood of a 'usiness& 1ithout sa*es there 1ou*d 'e no 'usiness in the first )*ace? therefore it is (ery i%)ortant that if a 'usiness 1ants to succeed& it shou*d ha(e a sa*es )ro%otion strate$y in %ind# The )ri%ary o'+ecti(e of a sa*es )ro%otion is to i%)ro(e a co%)anyAs sa*es 'y )redictin$ and %odifyin$ your tar$et custo%erAs )urchasin$ 'eha(ior and )atterns# Sa*es )ro%otion is (ery i%)ortant as it not on*y he*)s to 'oost sa*es 'ut it a*so he*)s a 'usiness to dra1 ne1 custo%ers 1hi*e at the sa%e ti%e retainin$ o*der ones# There are a (ariety of sa*es )ro%otiona* strate$ies that a 'usiness can use to increase their sa*es& ho1e(er it is i%)ortant that 1e first understand 1hat a sa*es )ro%otion strate$y actua**y is and 1hy it is so i%)ortant# sa*es )ro%otion strate$y is an acti(ity that is desi$ned to he*) 'oost the sa*es of a )roduct or ser(ice# This can 'e done throu$h an ad(ertisin$ ca%)ai$n& )u'*ic re*ation acti(ities& a free sa%)*in$ ca%)ai$n& a free $ift ca%)ai$n& a tradin$ sta%)s ca%)ai$n& throu$h de%onstrations and e;hi'itions& throu$h )ri7e $i(in$ co%)etitions& throu$h te%)orary )rice cuts& and throu$h door.to.door sa*es& te*e%ar5etin$& )ersona* sa*es *etters& and e%ai*s# The i%)ortance of a sa*es )ro%otion strate$y cannot 'e underesti%ated# This is 'ecause a sa*es )ro%otion strate$y is i%)ortant to a 'usiness 'oostin$ its sa*es# >hen de(e*o)in$ a sa*es )ro%otion strate$y for your 'usiness& it is i%)ortant that you 5ee) the fo**o1in$ )oints in %ind#

Consu%er attitudes and 'uyin$ )atterns Your 'rand strate$y Your co%)etiti(e strate$y Your ad(ertisin$ strate$y Other e;terna* factors that can inf*uence )roducts a(ai*a'i*ity and )ricin$# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !-

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

T2&'& "'& ,2'&& ,%(&1 )f 1"#&1 (')-), )! 1,'",&9 &16

)ush strate$y )u** strate$y or co%'ination of the t1o

A P/12 S,'",&9%6
N)ushA sa*es )ro%otion strate$y in(o*(es N)ushin$A distri'utors and retai*ers to se** your )roducts and ser(ices to the consu%er 'y offerin$ (arious 5inds of )ro%otions and )ersona* se**in$ efforts# >hat ha))ens here is that a co%)any )ro%otes their )roduct4ser(ices to a rese**er 1ho in turn )ro%otes it to another rese**er or to the consu%er# The 'asic o'+ecti(e of this strate$y is to )ersuade retai*ers& 1ho*esa*ers and distri'utors to carry your 'rand& $i(e it she*f s)ace& )ro%ote it 'y ad(ertisin$& and u*ti%ate*y N)ushA it for1ard to the consu%er# Ty)ica* )ush sa*es )ro%otion strate$ies inc*ude? 'uy.'ac5 $uarantees& free tria*s& contests& discounts& and s)ecia*ty ad(ertisin$ ite%s#

A P/## S,'",&9%6
N)u**A sa*es )ro%otion strate$y focuses %ore on the consu%er instead of the rese**er or distri'utor# This strate$y in(o*(es $ettin$ the consu%er to N)u**A or )urchase the )roduct4ser(ices direct*y fro% the co%)any itse*f# This strate$y tar$ets its %ar5etin$ efforts direct*y on the consu%ers 1ith the ho)e that it 1i** sti%u*ate interest and de%and for the )roduct# This )u** strate$y is often used 1hen distri'utors are re*uctant to carry or distri'ute a )roduct# Ty)ica* )u** sa*es )ro%otion strate$ies inc*ude? sa%)*es& cou)ons& cash refunds or re'ates& *oya*ty )ro$ra%s and re1ards& contests& s1ee)sta5es& $a%es& and )oint.of.)urchase dis)*ays#

A C)-0 !", )! )f Tw) S,'",&9 &16

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, !D

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

Nco%'inationA sa*es )ro%otion strate$y is +ust that? it is a co%'ination of a )ush and a )u** strate$y# It focuses 'oth on the distri'utor as 1e** as the consu%ers& tar$etin$ 'oth )arties direct*y# It offers consu%er incenti(es side 'y side 1ith dea*er discounts#

T2& S2)', ,&'- I-("+, )f P')-), )!16

3etAs ha(e *oo5 at the i%)act of )ro%otions on )urchase 'eha(ior durin$ the )ro%otiona* )eriod i#e# the 1ee5 or the %onth 1hen the )ro%otion 1as 'ein$ run# The %a+ority of the e%)irica* studies ha(e focused on the i%)act of )ro%otions in the short ter%# The 5ey findin$s across the studies are discussed 'e*o1# T&-()'"'% (' +& '&5/+, )!1 ((' +& )ff) 1/01,"!, "##% !+'&"1& 1"#&16 There is a%)*e e(idence to sho1 that )ro%otions *ead to dra%atic increases in sa*es of )ro%oted 'rand in the short ter%# Studies ha(e consistent*y re)orted hi$h sa*es effects and hi$h )rice e*asticity of 'rands 1hich are on )ro%otion# The econo%ic rationa*e for the )ro%otiona* res)onse is c*ear O te%)orary )rice cuts increase the (a*ue of the )roduct to the consu%er and it *eads to i%%ediate action# Sa*es 'oost can 'e 0uantified on the 'asis of 'rand s1itchin$& )ri%ary de%and e;)ansion and consu%er stoc5)i*in$ durin$ a )ro%otion# S"#&1 P')-), )! #&"51 ,) 0'"!5 1/01, ,/, )! w ,2 ,2& (')5/+, +",&9)'%6 The sa*es N'u%)A durin$ the )ro%otiona* )eriod into sa*es due to 'rand s1itchin$& )urchase ti%e acce*eration and stoc5)i*in$# Studies on 'rand s1itchin$ ha(e sho1n that 'rand s1itchin$ effects 1ithin a cate$ory are asy%%etric such that )ro%otions on hi$her 0ua*ity 'rands i%)acts 1ea5er 'rands dis)ro)ortionate*y# Durin$ a )ro%otion& hi$her 0ua*ity 'rands induce a *ar$e nu%'er of consu%ers to s1itch to the% as co%)ared to *o1er 0ua*ity 'rands# One e;)*anation ad(anced for this findin$ 'y researchers is that

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6,

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

*ar$e share 'rands ha(e hi$her 'rand e0uity and attract s1itchers %ore than *o1 share 'rands#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6/

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

S"#&1 P')-), )! #&"51 ,) (/'+2"1& "++&#&'", )!41,)+E( # !9 &ff&+,16 In res)onse to a )ro%otion& consu%ers %ay 'uy %ore 0uantity of the )roduct cate$ory or 'uy at an ear*ier ti%e than usua* F)urchase acce*eration effectG# If consu%ers 'uy e;tra 0uantity durin$ a )ro%otion or ear*ier than nor%a*& then they are not in the %ar5et to 'uy )roducts once the )ro%otion is o(er# Thus )urchase acce*eration is de%onstrated throu$h *en$thenin$ of inter )urchase ti%es after a )ro%otion# Purchase acce*eration 1as %ore *i5e*y to 'e e;hi'ited in increased )urchase 0uantity than in shortened inter )urchase ti%es# Resu*ts sho1ed that consu%ers %ost*y %ade u) for the *ar$e 0uantity )urchased 'y 1aitin$ *on$er unti* )urchasin$ a$ain# Resu*ts indicated that hea(y users tended to acce*erate )urchases %ore than *i$ht users# There 1as ne$*i$i'*e difference in the acce*eration )ro)ensities of hi$h (ersus *o1 inco%e $rou)s# S"#&1 P')-), )! #&"51 ,) (' -"'% 5&-"!5 &;("!1 )! f)' " +",&9)'%6 >hi*e it 1as traditiona**y assu%ed that consu%)tion rates re%ain fi;ed durin$ and after a )ro%otion& 'ut fro% this )ro+ect I ca%e to 5no1 that )ro%otions a*so ha(e a )ri%ary de%and e;)ansion effect# >hen a )ri%ary de%and e;)ansion occurs& )ro%otion induced increase in )urchase 0uantities does not si$nificant*y e;tend the ti%e ti** the ne;t )urchase in the cate$ory occurs& thus indicatin$ that there has 'een an increase in consu%)tion )ro%otions induced consu%ers to 'uy %ore and consu%e faster# It is found that )ro%otion induced in(entory te%)orari*y increased consu%)tion rates 1ithin the cate$ory e#$# in cate$ories such as 'acon& sa*ted snac5s& soft drin5s and yo$urt e;hi'ited )ri%ary de%and e;)ansions as a resu*t of )ro%otion 1hi*e 'athroo% tissue& coffee& deter$ent and )a)er to1e*s e;hi'ited stoc5)i*in$ on*y# S"#&1 P')-), )!1 "ff&+, 1"#&1 ! +)-(#&-&!,"'% "!5 +)-(&, , :& +",&9)' &16 <ro% this )ro+ect it is found that )ro%otion not on*y increases sa*es of %ain )roduct 'ut it a*so *ead to increase in sa*es of co%)*e%entary cate$ories# <ound stron$ cross re*ationshi)s 'et1een )roducts of the )ro%oted )roduct cate$ory indicatin$ 'rand su'stitution 'eha(ior# They stated that retai* )rice )ro%otions 1or5 as a for% of i%)*icit )rice 'und*in$ 1here'y the consu%er sur)*us is transferred fro% the )ro%oted ite% to non )ro%oted ite%s# *so found that retai* )rice )ro%otions create si$nificant co%)*e%entary and su'stitution effects 1ithin the store# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6!

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

T2& L)!9 ,&'- I-("+, )f P')-), )!16

Strate$ies are 'ui*ds to rea) the 'enefits for *on$er )eriod of ti%e? sa%e is true in sa*es )ro%otion strate$ies# 3et us see i%)act of )ro%otions effort and study the i%)act o(er a *on$er ti%e )eriod e#$# @.C %onths or e(en a fe1 years after a sa*es )ro%otion ca%)ai$n# The resu*t sho1ed that consu%er )ro%otions for *eadin$ 'rands of esta'*ished )ac5a$ed )roducts had no after.effects on the 'randAs sa*es or re)eat 'uyin$ *oya*ty# The e;tra sa*es of a 'rand 1hi*e )ro%oted ca%e (irtua**y a** fro% the 'randAs e;istin$ *on$.ter% custo%er 'ase for 1hich the e;)erience of 'uyin$ the )ro%oted 'rand 1as nothin$ ne1# It is found that a*thou$h the short ter% effects of )ro%otions are stron$? these )ro%otions rare*y e;hi'it *on$ ter% effects# It is o'ser(ed that each sa*es co%)onent $enera**y *ac5ed a )er%anent effect and the effect of )ro%otion 1as short *i(ed and increase in )ro%otions affected consu%ersA stoc5)i*in$ decisions in the *on$ run# They found that the co%'ined short and *on$.ter% e*asticity of )ro%otions 1as 7ero# The stoc5)i*in$ induced 'y a )ro%otion 1as essentia**y offset 'y reduced de%and in the *on$ ter%# Thus increased sa*es 1ere %ore a resu*t of sa*es 'orro1ed fro% the future than increased consu%)tion

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 66

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

S8OT A!"#%1 1 )f FMCG S&+,)'

Strengths:

>e**.esta'*ished distri'ution net1or5 e;tendin$ to rura* areas# Stron$ 'rands in the <MCG sector# 3o1 cost o)erations#

Weaknesses:

3o1 e;)ort *e(e*s# S%a**.sca*e sector reser(ations *i%it a'i*ity to in(est in techno*o$y and achie(e econo%ies of sca*e# Se(era* P%e.tooAA )roducts#

Opportunities:

3ar$e do%estic %ar5et# E;)ort )otentia*# Increasin$ inco%e *e(e*s 1i** resu*t in faster re(enue $ro1th##

Threats:

I%)orts# Ta; and re$u*atory structure# S*o1do1n in rura* de%and#

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www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

D T

" 3YSIS

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www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C)!1/-&'1

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6C

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C=. 82 +2 0'"!5 )f S)"( 4 D&,&'9&!, 5) %)/ /1&G

B",2 !9 I1)"(1 3u; 2a%% 3ife'uoy "i%a Others R&1()!5&!,1 @/ 6 /@ 6@

B",2 !9 1)"(1
50 40 30 20 10 0 Respondents Lux 41 Hamam 3 Lifebuoy 14 Nima 8 Others 34

I!,&'('&,", )!6
The a'o(e 0uestion has 'een for%ed to 5no1 the soa)s and deter$ents at the to) of the %ind of the custo%ers# It sho1s those consu%ersA )urchase and use of that )articu*ar 'rand# It 1i** he*) to the co%)any to 5no1 the %ar5et scenario and the %a+or 'rands in the %ar5et# <or% the a'o(e resu*t it is c*ear that out of /,, custo%ers %ore than @, are consu%ers are ha(in$ the sa%e 'rand as the i%a$e in their %ind& 1hereas others cate$ory is a*so sho1in$ the hi$her $ra)h than these 6 %a+or )*ayersF2a%a%& 3ife'uoy& "i%aG#

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www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6-

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)' D&,&'9&!, ()w5&' "ir%a su))er >hee* Surf rie* Others R&1()!5&!,1 /D /@ 6B //@

D&,&'9&!, P)w5&'
40 35 30 25 20 15 10 5 0 Respondents Nirma sup 19 hee! 14 "urf 35 #rie! 18 Othres 14

I!,&'('&,", )!6
<or% the a'o(e resu*t it is c*ear that out of /,, custo%ers 6B are )urchasin$ the sa%e 'rand of deter$ent& 1hereas a** others are on sa%e *e(e*#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, 6D

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @,

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C>. D) %)/ "#w"%1 0/% ,2& 1"-& 0'"!5 )f S)"( 4 D&,&'9&!,G

P"', +/#"'1 Yes "o R&1()!5&!,1 BC @@

B'"!5 #)%"#
$0 50 40 30 20 10 0 Respondents %es 5$ No 44

I!,&'('&,", )!6 The o'+ecti(e 'ehind the for%ation of this 0uestion is to 5no1 the *e(e* of 'rand *oya*ty of the consu%ers to1ards the 'rands of soa)s a(ai*a'*e in the %ar5et# The a'o(e fi$ure sho1s that on BCL of the res)ondents are *oya* to their 'rands of deter$ent4soa)# <MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is 'ecause of %any reasons#

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www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C?. 82 +2 f"+,)'1 5) %)/ !)'-"##% +)!1 5&' w2 #& (/'+2"1 !9 " ("', +/#"' 0'"!5 )f S)"( 4 D&,&'9&!,1G
F"+,)'1 <ra$rance Kua*ity Co%)any i%a$e Price Pac5a$in$ Others B",2 !9 1)"( /D 66 /C !6 C 6 D&,.()w5&' /6C /6 /D // 6

F"+,)'1 "ff&+, !9 (/'+2"1& 0&2": )'

40 30 20 10 0 +ra'ran,e &athin' soap (et)po*der 19 18 -ua!ity 33 3$ .ompany ima'e 1$ 13

/ri,e 23 19

/a,0a'in' $ 11

Others 3 3

I!,&'('&,", )!6
The o'+ecti(e 'ehind this 0uestion is to 5no1 the effect of inf*uencin$ factors in the )urchase decision of the soa)s and deter$ent )o1ders# It %ain*y contains the factors *i5e& 0ua*ity 1hich )*ayers an i%)ortant ro*e in the )urchase decision of the soa)s and deter$ents 'oth#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @!

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

If 1e *oo5 at the $ra)h of the soa)s and deter$ent it sho1s 0ua*ity as the %ost inf*uencin$ factors in the )urchase decision 1hi*e )rice is a*so an i%)ortant for )urchase decision#

C3. D) %)/ +)!1 5&' (')-), )!"# 1+2&-&1 w2 #& (/'+2"1 !9 " ("', +/#"' 0'"!5 )f S)"( 4 D&,&'9&!,G
P"', +/#"'1 Yes "o R&1()!5&!,1 E!!

H06 P')-), )!"# 1+2&-&1 2":& " 1 9! f +"!, &ff&+, )! ,2& (/'+2"1& )f 0'"!5. H=6 P')-), )!"# 1+2&-&1 5) !), 2":& "! &ff&+, )! ,2& (/'+2"1& )f 0'"!5.

Eff&+, )f 1+2&-&1 (/'+2"1& 0&2": )'

100 80 $0 40 20 0 Respondents %es 18 No 22

I!,&'('&,", )!6
ns1er of this 0uestion 1i** $i(e idea a'out the effect of )ro%otiona* sche%es in the )urchase decisions# Such ty)es of sche%es a*1ays attract %ore and %ore consu%ers to1ards )articu*ar 'rand# Si%u*taneous*y it $i(es idea a'out the factors 1hich consu%ers *oo5 %ost in the )roduct 'efore they %a5e fina* decision# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @6

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

2ere H0 is acce)ted as the $ra)h sho1s that E- out of /,, consu%ers are *oo5in$ for such sche%es 'efore they %a5e )urchase#

C@. 82 +2 )f ,2& f)##)w !9 (')-), )!"# 1+2&-&1 %)/ 2":& +)-& "+')11 1) f"'G
P')-), )!"# 1+2&-&1 Cou)ons )rice off <ree'ies scratch cards *uc5y dra1 Bund*in$ e;tra 0ty# R&1()!5&!,1 /C -@ !@ /! D 6/ @@

F"- # "' ,% )f (')-), )!"# S+2&-&1

100 80 $0 40 20 0 .oupons Respondents 1$ pri,e off 84 +reebies 24 s,rat,h ,ards 12

!u,0y dra* 9

&und!in' 31

extra 2ty) 44

I!,&'('&,", )!6

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @@

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

The a'o(e stated 0uestion c*ear*y states the a1areness of )ro%otiona* sche%es offered in the %ar5et 'y the %ar5eters to attract %ore and %ore consu%ers# The resu*ts sho1 that )rice off and e;tra 0uantity is the t1o %ain offers4sche%es 1hich consu%ers ha(e ca%e across at the ti%e of )urchase# It 1i** he*) the %anufacturers and %ar5eters too ho1 too *aunch their ne1 )roducts in the %ar5et 1ith 1hich sche%es#

CA. 82 +2 -&5 /- 5) %)/ f&&# 1 1/ ,"0#& ,) (')-),& ,2& :"' )/1 (')-), )!"# 1+2&-&1G
S)/'+& Radio T= "e1s)a)er 2oardin$ Others R&1()!5&!,1 // CD @6 /B /!

M&5 /-1 ,) (')-),& ,2& (')-), )!"# 1+2&-&1

80 $0 40 20 0 Respondents

Radio 11

34 $9

Ne*s)ppr 43

Hoardin' 15

Others 12

I!,&'('&,", )!:
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www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

This 0uestion $i(es stress on the %edia ha'it of the )eo)*e and throu$h 1hich the )roduct shou*d 'e *aunch or they thin5 it 1ou*d 'e 'etter than other Medias# The a'o(e resu*t sho1s T= as the 'est %edia to %ar5et the )roduct 1hich 1i** co(er %a+ority of the (ie1er shi)# On the second )*ace it sho1s ne1s )a)ers as the %edia to )ro%ote the )roduct in the %ar5et#

C7. I1 ,2&'& "!% &; 1, !9 1+2&-& )! ,2& S)"( 4 D&,&'9&!, %)/ "'& +/''&!,#% /1 !9G
P"', +/#"'1 Yes "o R&1()!5&!,1 B@!

E; 1, !9 1+2&-& )! ,2& S)"( 4 D&,&'9&!,

10 $0 50 40 30 20 10 0 Respondents %es 58 No 42

I!,&'('&,", )!6 G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @C

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

The ans1er of the res)ondents $i(e idea a'out the a1areness of the )ro%otiona* sche%es offered in the %ar5et on their e;istin$ soa)s and deter$ents# In this situation %ore then @,L of the )eo)*e are not a1are or ha(in$ (a$ue idea a'out the )ro%otiona* sche%es runnin$ into the %ar5et# It sho1s that )eo)*e are not %uch a1are of the sche%es 1hich continue in the %ar5et it %ay 'e 'ecause of the )resent stoc5 of the )roduct at their )*ace#

C8. If %&1H (#&"1& 1(&+ f%G

P"', +/#"'1 6Q/4Other <ree Discount "o idea "o ans1er R&1()!5&!,1 6C !! C 6C

40 35 30 25 20 15 10 5 0 "eries1 3516Other +ree 3$ (is,ount 22 No idea $ No ans*er 3$

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @E

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

I!,&'('&,", )!6
This 0uestion su))orts the a'o(e 0uestion# It en*ists the ans1ers of those custo%ers 1ho are a1are of the )resent sche%es offered in the %ar5et and a*so those sche%es 1hich are %ore de%anded in the %ar5et# The resu*t sho1s that /Q/ or !Q/ or other free sche%es are %ore de%anded and %ore a1are sche%es in the %ar5et# So %anufacturers %ay $o for the sa%e at the ti%e of *aunchin$ their )roduct#

CB. If %)/ 9&, "! ",,'"+, :& (')-), )!"# )ff&' ! ,2& (')5/+, ),2&' ,2&! )f %)/' +2) +& w ## %)/ 1w ,+2 ):&'G
P"', +/#"'1 Yes "o R&1()!5&!,1 E6 !E

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @-

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

Sw ,+2 !9 0&2": )'

80 10 $0 50 40 30 20 10 0 Respondents %es 13 No 21

I!,&'('&,", )!6
It sho1s the *e(e* of 'rand *oya*ty a%on$ the consu%ers# The resu*t c*ear*y sho1s that out of /,,& E6 )eo)*e are ready to s1itch o(er to another 'rand if they find 'etter )ro%otiona* sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q 0ua*ity# Co%'ination of a** these sche%es 1i** run 'etter in the %ar5et#

C=0. G :& '&"1)! f)' ,2& 1"-&G

P"', +/#"'1 CostQ0ty Kua*ity Satisfaction Brand *oya* More 'enefit4'ud$et Season chan$e R&1()!5&!,1 /C /E ! B !! !

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, @D

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)' "o ans1er 6C

R&"1)!
40 30 20 10 0 .ost52ty Respondents 1$ -ua!ity 11 Satisfaction &rand !oya! 2 5

7ore &enefit6bud 22

"eason ,han'e 2

No ans*er 3$

I!,&'('&,", )!6
'o(e 0uestion it $i(es s)ecific reasons for s1itchin$ too other )roducts# It sho1s that e;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other factors inf*uence consu%ers to s1itch o(er too other 'rands#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B,

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C==. G :& 1/99&1, )!1 "0)/, f/,/' 1, + (')-), )!"# 1+2&-&1G

This sho1 the consu%ersA future e;)ectations fro% the 1hether co%)any to co%e 1ith ne1 sche%es or continue 1ith )resent one# It sho1s consu%ers de%and 1hich the %anufacturers ha(e to %eet#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B/

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

R&," #&'1

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B!

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C=. S !+& 2)w #)!9 "'& %)/ ! ,2 1 0/1 !&11G

P"', +/#"'1 /.B Years B./, Years More than /, years R&1()!5&!,1 !@ !E @D

$0 50 40 30 20 10 0 "eries1 185 %ears 24 5810 %ears 21 7ore than 10 years 49

I!,&'('&,", )!6
This 0uestion $i(es idea a'out the 'enefit to the retai*ers 1ho are on the %ar5et fro% *on$ )eriod of ti%e and the 'enefits they are $ettin$ %ore as co%)are to others# It a*so sho1s their e;)erience in the fie*d and the ser(ices they are )ro(idin$ too their ne1 and re$u*ar custo%ers# It a*so $i(es idea a'out the 'enefits they are $ainin$ for 1ho*esa*ers and direct fro% the co%)any#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B6

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B@

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C>. N"-& ,2& S)"( 4 D&,&'9&!, (C)-("!%) %)/ 1,)+E f)'.

C)-("! &1 "ir%a 2U3 PRG Godre+ Others R&1()!5&!,1 DC /,, D, D@ C-

S)"( 4 D&,&'9&!, ! 1,)+E

120 100 80 $0 40 20 0 "eries1 Nirma 9$ H9L 100 /:; 90 ;odre< 94 Others $8

I!,&'('&,", )!6
It $i(es idea a'out the ca)acity of the retai*ers to stoc5 the $oods and a*so the (ariety of the )roducts they are stoc5in$# It 1i** a*so %a5e c*ear the de%and of the $oods in their stores and the se**in$ of the )roduct in %ar5et# Most of the retai*er stoc5s a** ty)es of soa) and deter$ent#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, BB

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C?. R"!E ,2& f)##)w !9 f"+,)'1 ,2", +/1,)-&'1 #))E f)' ! ,2& (/'+2"1& )f S)"( 4 D&,&'9&!,. (R"!E f')- = ,) A)
<actors <ra$rance Kua*ity Co%)any I%a$e Price Pac5a$in$ Others / 6 CC D /E @ / ! !@ !6 /!B ! 6 66 E 6@ !@ ! , @ !! 6 !@ /C !E B /, / // C 66@ C , @ D !@ BB

B",2 !9 S)"(
10 $0 50 40 30 20 10 0 +ra'ran,e -ua!ity .ompany =ma'e /ri,e /a,0a'in' Others 1 3 $$ 9 11 4 1 2 24 23 18 28 5 2 3 33 1 34 24 2 0 4 22 3 24 1$ 21 8 5 10 1 11 $ 38 34 $ 8 0 4 9 24 55

I!,&'('&,", )!6 It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and a*so the 1ei$ht a$e of that factor o(er other factors# In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand )eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, BC

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are not inf*uencin$ factor as )er the res)ondents#

F"+,)'1
F'"9'"!+& C/"# ,% C)-("!% I-"9& P' +& P"+E"9 !9 O,2&'1

=
// @6 /6 !E C ,

2 11 34 /C 28 5 0

3 41 1$ !E 14 2 0

4 21 $ !C 9 33 5

5 1 1 // $ 43 32

6 3 0 E 1$ 11 $3

D&,&'9&!,
10 $0 50 40 30 20 10 0 +ra'ran,e -ua!ity .ompany =ma'e /ri,e /a,0a'in' Others 1 11 43 13 21 $ 0 2 11 34 1$ 28 5 0 3 41 1$ 21 14 2 0 4 21 $ 2$ 9 33 5 5 1 1 11 $ 43 32 $ 3 0 1 1$ 11 $3

I!,&'('&,", )! 6
It $i(es an idea a'out the )riority the inf*uencin$ factors too the consu%ers and a*so the 1ei$ht a$e of that factor o(er other factors# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, BE

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

In the a'o(e resu*t )eo)*e are %ore 0ua*ity and )rice oriented# On the other hand )eo)*e are a*so conscious a'out the co%)any i%a$e# Because so%eti%es the consu%er re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any# <ra$rance and )ac5a$in$ are a*so )*ay i%)ortant ro*e for )urchasin$ deter$ent )o1der#

C3. D) %)/ 1/99&1, +/1,)-&'1 ,) (/'+2"1& " +&'," ! 0'"!5G

P"', +/#"' Yes "o R&1()!5&!,1 66 CE

S/99&1, )!
80 10 $0 50 40 30 20 10 0 "eries1 %es 33 No $1

I!,&'('&,", )!6
This cou*d 'e a (ery he*) 0uestion to understand the ro*e of retai*ers in the )urchase decision# In a'o(e $ra)h CEL of retai*er are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona* re*ation or that custo%er are 'rand *oya*# >hi*e 66L of the retai*er are su$$estin$ the consu%ers to 'uy )articu*ar 'rand# There cou*d 'e %any reasons *i5e& e;tra %ar$in& re*ations 1ith consu%ers and 0ua*ity of the )roducts 1hich retai*er %ay $et the 'enefit of the sa%e# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, B-

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C@. If D&1 w2%G

P"', +/#"' 2i$h %ar$in Kua*ity Re*ationshi) "o reason R&1()!5&!,1 D /E E CE

If %&1
80 10 $0 50 40 30 20 10 0 Respondents Hi'h mar'in 9 -ua!ity 11 Re!ationship 1 No reason $1

I!,&'('&,", )!6
it $i(es idea a'out the reasons 1hy retai*ers su$$est the consu%ers to 'uy )articu*ar 'rand# In a'o(e $ra)h and ta'*e it is c*ear that for %ar$in and of 'etter re*ations 1ith consu%ers and too )ro(ide 0ua*ity )roduct to consu%ers they su$$est consu%ers too 'ye )articu*ar 'rand# <or the co%)any it %ay 'e he*)fu* to tar$et such retai*ers to se** their )roduct in the %ar5et easi*y# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, BD

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

CA. D) +/1,)-&'1 #))E f)' :"' )/1 1+2&-&1 ! ,2& (')5/+,G

P"', +/#"' Yes "o R&1()!5&!,1 D! -

C/1,)-&'1 #))E f)' :"' )/1 1+2&-&1

100 80 $0 40 20 0 Respondents %es 92 No 8

I!,&'('&,", )!6
This $i(es a rea* he*)fu* data for chec5in$ the effect of sa*es )ro%otions in the %ar5et and ho1 serious*y consu%ers fo**o1 the )ro%otions 'efore they $o for )urchase )articu*ar 'rand# The a'o(e resu*t sho1s that on*y - out ,f /,, didnAt $o for the )ro%otion other1ise a** are *oo5in$ for any ty)e of the )ro%otions on the )roduct# G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, C,

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C7. If %&1 w2 +2 1+2&-&1G

P')-), )!"# S+2&-&1 Cou)ons Price Off <ree'ies Scratch Cards 3uc5y Dra1s Bund*in$ Offer E;tra Kuantity R&1()!5&!,1

// -! 6B ! /D CB ED

82 +2 1+2&-&1
100 80 $0 40 20 0 .oupons Respondents 11 /ri,e Off 82 +reebies 35 ",rat,h .ards 2 Lu,0y (ra*s 19 &und!in' Offer $5 >xtra -uantity 19

I!,&'('&,", )!6

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, C/

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

The a'o(e stated resu*ts sho1 the de%and of (arious ty)es of )ro%otiona* sche%es in the %ar5et 'y the consu%ers# *%ost a** ty)es of sche%es are 'ein$ de%anded 'y the consu%ers in the %ar5et 'ut there are three %a+or sche%es 1hich consu%ers $enera**y *oo5 at the ti%e of )urchase or 'efore that# Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the consu%ers o(er others sche%es#

C8. 82 +2 T'"5& P')-), )!1 5) :"' )/1 +)-("! &1 )ff&'G

NIRMA
P')-), )!1 E;tra Mar$in E;tra Units credit faci*ity Gifts )ro%o# E;)# R&1()!5&!,1 @C 6@ BB !@ -

H06 Eff&+, )f ,'"5& (')-), )!1 f)' "## f)/' 0'"!51 1 1 - #"'. H=6 Eff&+, )f ,'"5& (')-), )!1 f)' "## f)/' 0'"!51 1 !), 1 - #"'.

T'"5& P')-), )!1 0% N '-"

$0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 4$ >xtra 9nits 34 ,redit fa,i!ity 55 'ifts 24 promo) >xp) 8

I!,&'('&,", )!6
G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, C!

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

<ro% the a'o(e $ra)h sho1s the trade )ro%otions offered 'y the "IRM 3td to the retai*ers to attract the% to1ards stoc5in$ their $oods and a*so sto) the% s1itchin$ the% too other %a+or )*ayers in the %ar5et# "IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it %ay differ in the ti%e *i%it of the credit# It is a*so )ro(idin$ e;tra %ar$in& and units 1ith occasiona* $ift 1ith their sche%es#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, C6

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

HUL
P')-), )!1 E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R&1()!5&!,1 @E 6@ B!B !!

T'"5& P')-), )!1 0% HUL

10 $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 41 >xtra 9nits 34 .redit fa,i!ity 58 ;ifts 25 /romo) >xp) 22

I!,&'('&,", )!6
The ad(anta$e of 233 o(er "IRM "IRM dis)*ay of the )roduct& 'anners etc# So this %ay he*) it to attract %ore retai*ers# It %ay 'ecause of its *ess cost of )roduction in other se$%ents in 1hich nir%a is not o)eratin$# is that it 'are )ro%otiona* e;)enses 1hich

is not doin$# It attracts %ore consu%ers throu$h such )ro%otions& such as

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, C@

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

PJG
P')-), )!1 E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R&1()!5&!,1 @, 66 BB !, /!

T'"5& P')-), )!1 0% PJG

$0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 40 >xtra 9nits 33 .redit fa,i!ity 55 ;ifts 20 /romo) >xp) 12

I!,&'('&,", )!6 PRG is a*so a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the faci*ities 1hich others are )ro(idin$ to retai*ers#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, CB

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

GODREJ
P')-), )!1 E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R&1()!5&!,1 @C 6! BE /D /-

T'"5& P')-), )!1 0% G)5'&*

$0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 4$ >xtra 9nits 32 .redit fa,i!ity 51 ;ifts 19 /romo) >xp) 18

I!,&'('&,", )!6
Godre+ is a 'i$ )*ayer in the <MCG %ar5et# It is a*so )ro(idin$ a** the faci*ities 1hich others are )ro(idin$ to retai*ers# But it is *ac5in$ in 'earin$ e;)enses 1hich 2U3 is )ro(idin$ to %a;i%u% nu%'er of retai*ers#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, CC

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

OTHERS
P')-), )!1 E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# R&1()!5&!,1 6, /6/B E

T'"5& P')-), )!1 0% O,2&'1

40 35 30 25 20 15 10 5 0 "eries1 >xtra 7ar'in 30 >xtra 9nits 18 .redit fa,i!ity 38 ;ifts 15 /romo) >xp) 1

I!,&'('&,", )!6
Others inc*ude *oca* )*ayers& as 1e** as 1e esta'*ished )*ayers *i5e& 1i)ro 'ut their )roducts are not in de%and *i5e other )*ayers 'ut sti** they are )ro(idin$ a** the faci*ities to retai*ers to attract to1ards stoc5in$ their )roducts#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, CE

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

GODREJ Extra Margin Extra Units Credit facility Gifts Pr ! " Ex#" 46 32 57 19 18 34.4

NIRMA 46 34 55 24 8 33.4

HUL 47 34 58 25 22 37.2

P&G 40 33 55 20 12 32

Anova: Single a!"o# SUMMAR$ Grou)s Co*u%n / Co*u%n ! Co*u%n 6 Co*u%n @ ANOVA Source =ariation Bet1een Grou)s >ithin Grou)s Tota* of SS E!#BB @BE6#! @C@B#E B
** the 'i$ )*ayers )ro(ide )ro%otion to the retai*ers due to cut throat co%)etition? Inter)retation: fro% the one factor ano(a ana*ysis& it is c*ear*y seen that there is a effect of trade )ro%otion on (arious 'rands and are si%i*ar too# s )M ,#,B& it is the e(idence that the nu** hy)othesis is acce)ted

Count B B B B

Su% /E! /CE /-C /C,

(era$e 6@#@ 66#@ 6E#! 6!

=ariance !-D#6 66D#!!D#E !-@#B

df 6 /C /D

MS !@#/-66 6 !-B#-!B

< ,#,-@C, D

P.(a*ue ,#DCE@B E

< crit 6#!6--E!

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, C-

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

CB G :& '&"1)!1 f)' !), 1,)+E !9 " ("', +/#"' 0'"!5. Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, CD

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

C=0 A!% S/99&1, )!1. Retai*er su$$ested that )ac5a$in$ shou*d 'e further i%)ro(ed and used as )ro%otiona* too*& to encoura$e sa*es durin$ certain )eriods the co%)any shou*d )ro(ide )riceoff or e;tra 0uantity 'ecause that inf*uences direct*y to the consu%er#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, E,

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

F !5 !91 )f ,2& '&()',6

Sa*es Pro%otion& a short.ter% induce%ent& offered to a consu%er or trade has $ained %o%entu% as a )ro%otiona* too* 1or*d o(er# It re)resents near*y three fourth of the %ar5etin$ 'ud$et at %ost consu%er )roduct co%)anies# Sa*es )ro%otions can enhance consu%ersA se*f.)erce)tion of 'ein$ 8s%art: or a 8$ood: sho))er <MCG are such a %ar5et 1here the *e(e* of *oya*ty re%ains *o1 and this is 'ecause of %any reasons# Kua*ity as the %ost inf*uencin$ factors in the )urchase decision 1hi*e )rice is a*so an i%)ortant for )urchase decision# Sche%es a*1ays attract %ore and %ore consu%ers to1ards )articu*ar 'rand# Si%u*taneous*y it $i(es idea a'out the factors 1hich consu%ers *oo5 %ost in the )roduct 'efore they %a5e fina* decision Price off and e;tra 0uantity is the t1o %ain offers4sche%es 1hich consu%ers ha(e ca%e across at the ti%e of )urchase T= as the 'est %edia to %ar5et the )roduct 1hich 1i** co(er %a+ority of the (ie1er shi)# On the second )*ace it sho1s ne1s )a)ers as the %edia to )ro%ote the )roduct in the %ar5et Peo)*e are not %uch a1are of the sche%es 1hich continue in the %ar5et it %ay 'e 'ecause of the )resent stoc5 of the )roduct at their )*ace# /Q/ or !Q/ or other free sche%es are %ore de%anded and %ore a1are sche%es in the %ar5et# Peo)*e are ready to s1itch o(er to another 'rand if they find 'etter )ro%otiona* sche%es 1hich suits their 'ud$et %eans %ore 0yt Q *ess cost Q 0ua*ity# E;tra 0uantity 1ith *ess or sa%e )rice& %ore satisfaction& 0ua*ity and other factors inf*uence consu%ers to s1itch o(er too other 'rands# Retai*er stoc5s a** ty)es of soa) and deter$ent 'ecause of co%)etition# Peo)*e are %ore 0ua*ity and )rice oriented# Consu%er re%e%'er that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, E/

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

Consu%er re%e%'ers that na%e of the )roduct 'y the co%)any na%e and a*so fro% the )ast )erfor%ance of that co%)any Retai*ers are not su$$est to )urchase )articu*ar 'rand 'ecause of )ersona* re*ation or that custo%er are 'rand *oya* Mar$in and of 'etter re*ations 1ith consu%ers and too )ro(ide 0ua*ity )roduct to consu%ers they su$$est consu%ers too 'ye )articu*ar 'rand# Custo%ers are *oo5in$ for any ty)e of the )ro%otions on the )roduct 'efore the% $oin$ to )urchase# Price off& )roduct 'und*in$ and e;tra 0uantity are %ore de%anded 'y the consu%ers o(er others sche%es# "IRM is %ain*y offerin$ credit faci*ity 1hich is offered 'y a** %a+or )*ayers it %ay differ in the ti%e *i%it of the credit# 2U3 attracts %ore consu%ers throu$h such )ro%otions& such as dis)*ay of the )roduct& 'anners etc#

G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, E!

www.f !"#$%&"'(')*&+,.+)- . www.,')/0#&12)),3f'&&.+)-4f%(4 R)#& )f 1"#&1 (')-), )!1 ! FMCG 1&+,)'

R&+)--&!5", )!6
The findin$s of the e%)irica* study indicate that un*ess the 'rand to 'e )ro%oted is in the consideration set of the consu%er& sa*es )ro%otion 'y itse*f is un*i5e*y to ha(e any %a+or i%)act# C*ear*y this sho1s that %ana$ers need to in(est into 'rand 'ui*din$ e;ercise so that his4her 'rand a))ears in the consideration set of the tar$et consu%ers# On*y after this shou*d he s)end ti%e& %oney and ener$y on sa*es )ro%otion acti(ities# Sa*es )ro%otion shou*d not 'e used in iso*ation 'ut need to 'e inte$rated 1ith other too*s and in *ine 1ith the o(era** )ositionin$ of the 'rand# the ro*e of %ass %edia ca%e out c*ear*y in the study# Co%)anies need to create sufficient a1areness a'out sa*es )ro%otion sche%es throu$h %ass %edia in order to create a1areness# <MCG )roducts are *o1 in(o*(e%ent )roducts characteri7ed 'y s1itchin$ 'eha(ior# *so the )erson $oin$ to the sho) for the )urchase of soa) is the fina* decision %a5er of the 'rand# 2ence it is essentia* that co%)anies need to desi$n attracti(e& stri5in$& (isi'*e POPs for sche%e announce%ents# >ith res)ect to nature of sche%e& the findin$ su$$ested that )re%iu% Ffree $iftG 1as )o)u*ar 1ith co%)anies# >hi*e 'oth retai*ers and consu%ers )referred )rice offs# So it is necessary that the )ercei(ed (a*ue of a free $ift has to 'e a))ea*in$ and hi$h for the tar$et consu%ers# Re)etiti(e use of the sa%e )re%iu% for a )ro*on$ed )eriod %ay ha(e ne$ati(e effect on the *oya* custo%ers# >hen the co%)any is $i(in$ its o1n )roduct free as )re%iu%& it needs to ensure the 0ua*ity of the )roduct fro% it as it is *i5e*y to +eo)ardi7e the i%a$e of 'oth its )roducts# The findin$s e;hi'ited that 'oth the retai*ers and consu%ers )ercei(ed that sa*es )ro%otion acti(ities carried out 'y the co%)anies for increasin$ sa*es in short ter% and c*earin$ e;cess stoc5s# >hat it i%)*ies is that co%)anies need to use sa*es )ro%otion G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, E6 *so the i%)ortance of

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syner$istica**y and co%%unicate so that they )ro(ide (a*ue to the tar$et audience and enhance 'rand 0ua*ity4i%a$e )erce)tions# Co%)anies need to syste%ati7e infor%ation f*o1 re$ardin$ sa*es )ro%otion acti(ities )articu*ar*y at dea*er and retai*er *e(e*# Ensurin$ )ro)er infor%ation f*o1 and de(isin$ chec5s and %easures to reduce %isa))ro)riations and i%)*e%entation f*o1s shou*d 'e considered critica* as)ects for the success of sa*es )ro%otion acti(ities 'y the co%)anies# %ar5et# <ro% the study it 1as found that s%a**er retai*ers fe*t ne$*ected and not enthused to i%)*e%ent the sche%es& )articu*ar*y 1hen additiona* hand*in$& stoc5in$& accountin$ 1as re0uired on the )art of a retai*er 1ithout co%)ensatory %ar$ins# It can 'e seen that the retai*er and consu%er )erce)tions %atched 1ith res)ect to )references of sche%es& under*yin$ %oti(ations and ro*e of %ass %edia# This i%)*ies that the retai*er 1ou*d 'e a rich source of infor%ation a'out the consu%er and the *i5e*y res)onse to sa*es )ro%otion acti(ities# De(e*o)in$ a syste% to ta) such res)onses fro% ti%e to ti%e 'oth at retai*er and consu%er *e(e* 1ou*d 'e he*)fu* for )*annin$ future sa*es )ro%otion acti(ities# In order to 'ui*d trust and co%%it%ent co%)anies shou*d ta) )references& )erce)tions of retai*ers as 1e** as consu%ers# s retai*in$ is fra$%ented& direct reach 'y co%)anies is ne;t to i%)ossi'*e# Throu$h dea*ers and )ro)er feed'ac5 %echanis%& co%)anies 5ee) in touch 1ith the

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>e considered h%eda'ad re$ion on*y 'ecause of *i%ited ti%e duration#

Due to this& our sa%)*e si7e is on*y /,,& 1hich is not (ery *ar$e#

** the res)ondents cou*d not fi** their 0uestionnaire on their o1n due to *an$ua$e )ro'*e% and a*so )ro'*e% of ti%e and *ac5 of )ositi(e 'eha(ior#

Res)ondent %ay $i(e 'iased ans1er due to so%e *ac5 of infor%ation a'out other 'rands#

<indin$s of the study are 'ased on the assu%)tion that the res)ondents ha(e $i(en correct infor%ation#

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E-&'9 !9 T'&!51
So far as <MCG %ar5et is concern there is ne1 trend is e%er$in$ 5no1n as J) !, 1"#&1 (')-), )!# ctua**y it is o*d conce)t 'ut it 1as %ore )re(ai*in$ in dura'*e )roducts no1 it is co%in$ intro non dura'*e $oods a*so# >hen any sa*es )ro%otion sche%e either for trade or consu%er is announced 'y %ore than one co%)any and 4or %ore than one 'rand of the sa%e co%)any& it is referred as +oint sa*es )ro%otion or hori7onta* co. o)erati(e sa*es )ro%otion or cross )ro%otion or u%'re**a sa*es )ro%otion#

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Use co%)*e%entari*y due to natura* use "e1 use caterin$ co%)*e%entary re*ationshi)s Co%%ona*ity of need due to use ti%e Tie.u) of a ne1 4s*o1 %o(in$ 'rand 1ith an esta'*ished 'rand Tar$et %ar5et co%%ona*ity Seasona* de%and Distri'ution co%%ona*ity Tar$etin$ ne1 se$%ent Deri(ed de%and Counterin$ co%)etiti(e +oint sa*es )ro%otions

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The study ref*ects that the use of sa*es )ro%otion undenia'*y has increased o(er the years in India# <uture ho*ds *ot of )ro%ise for such sche%es across 1ider ran$e of )roduct.%ar5ets# Sa*es Pro%otion has ceased to 'e %a+or differentiator at *east in the %etros& 1ith a*%ost a** co%)anies offerin$ si%i*ar free'ies and $ifts# s a resu*t no1 %ar5eters ha(e to find out so%e inno(ati(e 1ays of sa*es )ro%otion to differentiate fro% co%)etitors# Current*y Price off and Bye one $et one free offers are (ery effecti(e to attract the consu%ers to1ards the )roducts# >e ha(e noted that these 5ind of )ro%otiona* too*s are usefu* for short ter% increase in sa*es and to induce first tria*# These ty)es of )ro%otiona* sche%es shou*d 'e consistent and chan$ed fro% ti%e to ti%e de)endin$ u)on season and co%)etitorAs sche%es# >ith the Increasin$ nu%'er of su)er%ar5et& the 'randed )ac5a$ed $oods 1or5 as si*ent sa*es )erson# So in such stores& sa*es )ro%otion )*ays a %ore effecti(e ro*e in sti%u*atin$ consu%ersA de%ands#

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One of the (ery i%)ortant facts 1e ca%e to 5no1 fro% this )ro+ect is that sa*e of $oods 1hich contain *ar$e 0uantity and ha(in$ 'i$ )ac5a$in$ e#$# deter$ent are sta$natin$ 'ecause consu%er )refer to 'uy s%a** )ac5 $oods& the reasons are: s%a** )ac5 $oods reduce ris5 of 'ad 0ua*ity& It had *o1 cost or say )rice& and *ast 'ut i%)ortant factor i#e# %enta*ity to )urchase +ust to try first# Sa*es of s%a** )ac5 $oods are 0uite hi$h& 'ut fro% the co%)anyAs )oint of (ie1 s%a** )ac5 $oods is *ess )rofita'*e co%)are to *ar$e )ac5 $oods# So here %ar5eter tries to increase sa*es of *ar$e )ac5 $oods 'y usin$ sa*es )ro%otion tactics *i5e )rice off and )ercenta$e e;tra#

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>e are students of MB studyin$ in G3S "RIBM 2MED B D and carryin$ out a sur(ey for our acade%ic )ro+ect to8Ro*e of sa*es )ro%otions in <MCG:# So )*ease fi** this 0uestionnaire# Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for acade%ic )ur)ose#

Deter$ent )o1der "ir%a su))er >hee* Surf rie* Others K/# >hich 'rand of Soa) 4 Deter$ent do you useH

Bathin$ Osoa)s 3u; 2a%a% 3ife'uoy "ir%a Others

Res)ondent Res)ondent

K!# Do you a*1ays 'uy the sa%e 'rand of Soa) 4 Deter$entH Particu*ars Res)ondent Yes "o K6# >hich factors do you nor%a**y consider 1hi*e )urchasin$ a )articu*ar 'rand of Soa) 4 Deter$entsH Bathin$ <actors soa) Det#)o1der <ra$rance Kua*ity Co%)any i%a$e Price Pac5a$in$ Others K@# Do you consider )ro%otiona* sche%es 1hi*e )urchasin$ a )articu*ar 'rand of Soa) 4 Deter$entH Particu*ars Res)ondent Yes "o nd G3S "#R#I#B#M4M#B# .! Year4Mar5etin$4!,.6.!,/, -,

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KB# >hich of the fo**o1in$ )ro%otiona* sche%es you ha(e co%e across so farH Pro%otiona* sche%es Res)ondent Cou)ons )rice off <ree'ies scratch cards *uc5y dra1 Bund*in$ e;tra 0ty# KC# >hich %ediu% do you fee* is suita'*e to )ro%ote the (arious )ro%otiona* sche%esH Source Radio T= "e1s)a)er 2oardin$ Others Res)ondent

KE# Is there any e;istin$ sche%e on the Soa) 4 Deter$ent you are current*y usin$H Particu*ars Yes "o K-# If yes& )*ease s)ecifyH Particu*ars 6Q/4Other <ree Discount "o idea "o ans1er Res)ondent Res)ondent

KD# If you $et an attracti(e )ro%otiona* offer in the )roduct other than of your choice 1i** you s1itch o(erH Particu*ars Yes "o K/,# Gi(e reason for the sa%eH G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, -/ Res)ondent

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Particu*ars CostQ0ty Kua*ity Satisfaction Brand *oya* More 'enefit4'ud$et Season chan$e "o ans1er

Res)ondent

K//# Gi(e su$$estions a'out futuristic )ro%otiona* sche%es#

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Retai*ers
>e are students of MB studyin$ in G3S "RIBM 2MED B D and carryin$ out a sur(ey for our acade%ic )ro+ect 8Ro*e of sa*es )ro%otions in <MCG:# So )*ease fi** this 0uestionnaire# Your identity 1ou*d not 'e re(ea*ed and infor%ation 1i** on*y 'e used for acade%ic )ur)ose#

K/# Since ho1 *on$ are you in this 'usinessH Particu*ars /.B Years B./, Years More than /, years

Res)ondent

K!# "a%e the Soa) 4 Deter$ent FCo%)anyG you stoc5 for# Co%)anies Res)ondent "ir%a 2U3 PRG Godre+ Others K6# Ran5 the fo**o1in$ factors that custo%ers *oo5 for in the )urchase of Soa) 4 Deter$ent# FRan5 fro% / to CG <actors / ! 6 @ B C <ra$rance Kua*ity Co%)any I%a$e Price Pac5a$in$ Others K@# Do you su$$est custo%ers to )urchase a certain 'randH Particu*a Res)ondent r Yes "o KB# If Yes 1hyH Particu*ar 2i$h %ar$in Kua*ity Re*ationshi) "o reason G3S "#R#I#B#M4M#B# .!nd Year4Mar5etin$4!,.6.!,/, -6 Res)ondent

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KC# Do custo%ers *oo5 for (arious sche%es in the )roductH Particu*a r Yes "o KE# If yes 1hich sche%esH Pro%otiona* Sche%es Cou)ons Price Off <ree'ies Scratch Cards 3uc5y Dra1s Bund*in$ Offer E;tra Kuantity Res)ondent Res)ondent

K-# >hich Trade Pro%otions do (arious co%)anies offerH 2U3 Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)#

PRG Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)#

GODREJ Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)#

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OT2ERS Pro%otions Res)ondent E;tra Mar$in E;tra Units Credit faci*ity Gifts Pro%o# E;)# KD Gi(e reasons for not stoc5in$ a )articu*ar 'rand# K/, ny Su$$estions#

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