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. K.C. MAHESH

SUBMITTED BY:
PARTH MODY (15) HIMANSHU REDDIAR (25) SUBMITTED TO:

SOM LALIT INSTITUTE OF BUSINESS MANAGEMENT

Role of sales promotions in FMCG sector

AHMEDABAD

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &

Role of sales promotions in FMCG sector

T'is is to certif( t'at Mr. Par ! M"#$ an) Mr. H%&a'(!) R*##%ar t'e st!)ents of MB* &n) (ear of Som alit Instit!te of B!siness Mana"ement+ *'me)a,a) 'a-e complete) t'eir Gran) Pro.ect R"+* ", (a+*( -r"&" %"'( %' FMCG in t'e (ear &//01 &/22 in partial f!lfillment of G!.arat Tec'nolo"ical Uni-ersit( re3!irements for t'e a4ar) of t'e )e"ree of Master of B!siness *)ministration5

D%r*. "r

Gra'# Pr"/*. G)%#*

Prof5 Dr5 Ja")is' Jos'ip!ra

Prof5 Ma'es' 65C

Da *0 1123422311

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7

Role of sales promotions in FMCG sector

PREFACE
In t'is a"e of "lo,ali8ation '(per competition 'as ,ecome a re"!lar feat!re5 To)a( t'e mar$ets are no less t'en ,attle"ro!n)s an) one 'as to stri-e -er( 'ar) for s!r-i-al an) "ro4t'5 D!e to -er( rapi) in)!striali8ation all o-er t'e 4orl) t'e )eman) for t'e mana"erial personnel an) t'e a)ministrati-e personnel 'as increase)5 T'e perfect st!)( of Mana"ement in-ol-es ,ot' t'e t'eoretical as 4ell as practical aspects5 To s!r-i-e in t'is 'i"'l( competiti-e mar$et 9Practical 6no4le)"e: is as rele-ant as t'e T'eoretical5 T'e si"nificance of MB* De"ree is t'at t'e T'eoretical aspects+ 4'ic' a st!)ent learns t'ro!"'o!t t'e (ear in t'e class sessions+ can ,e practicall( applie) t'ro!"' )ifferent pro.ects+ 4'ic' one !n)erta$es5 6eepin" in t!ne 4it' t'is )octrine+ 4e 'a-e trie) to appl( t'eoretical aspects t'ro!"' o!t t'e pro.ect+ 4'ic' 4e learne) !n)er t'e co!rse of mana"ement5 In t'is pro.ect more emp'asi8e "i-en to t'e -ario!s tools of sales promotion an) its impact on cons!mers ,!(in" )ecisions5 *ct!all( in recent tren) to some e;tent t'is tec'ni3!e also ,ecome -ictim of cl!tter+ e-en t'o!"' it can ,e eliminate) ,( "eneratin" inno-ati-e an) more attracti-e tools to l!re t'e c!stomers5 <o4 a )a( most of t'e FMCG companies consi)erin" sales promotion as an important part of t'eir mar$etin" strate"(5 From t'e anal(sis of s!r-e( it ,ecomes clear t'at cons!mers )o response to t'e sales promotion campai"n+ ,!t t'ere are c!stomers 4'o stron"l( prefer to stic$ to ,ran) name5

S IBM G!.arat Tec'nolo"ical Uni-ersit( *'me)a,a) Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =

Role of sales promotions in FMCG sector

ACKNO5LEDGEMENT

E-er( st!)( re3!ires a "!i)ance of someone 4'o is 4or$in" in t'at fiel)5 Firstl( 4e 4o!l) li$e to t'an$ Director Dr5 6a7#%(! 6"(!%-)ra for pro-i)in" an opport!nit( of preparin" a Gran) Pro.ect Report an) allo4in" !s to !se t'e reso!rces of t'e instit!tion )!rin" t'is pro.ect5 >e are e;tremel( t'an$f!l to o!r Pro.ect G!i)e+ Pr",. Ma!*(! K.C of S IBM for t'eir precio!s "!i)ance re"ar)in" t'e preparation of t'e Pro.ect Report5 T'eir "!i)ance 'as pro-e) to ,e !sef!l an) 4it'o!t t'em+ t'e preparation of t'is report mi"'t not 'a-e ,een possi,le5 >e are also t'an$f!l to t'e ot'er fac!lt( mem,ers of S IBM for e;ten)in" t'eir -al!a,le s!pport for t'is pro.ect5 >e also e;ten) o!r sincere t'an$s to t'e Respon)ents+ 4'o 'elpe) !s )!rin" t'e co!rse of o!r pro.ect an) for t'eir "racio!s attit!)e5 >e 4o!l) li$e to ta$e t'is opport!nit( to e;ten) o!r 4arm t'o!"'ts to t'ose 4'o 'elpe) me in ma$in" t'is pro.ect a 4on)erf!l e;perience5 ast ,!t not t'e least? 4e 4o!l) also li$e to t'an$ o!r famil( for t'eir s!pport an) enco!ra"ement5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @

Role of sales promotions in FMCG sector

E8*.) %9* S)&&ar$

*s a part of o!r st!)( c!rric!l!m it is necessar( to con)!ct a "ran) pro.ect5 It pro-i)es !s an opport!nit( to !n)erstan) t'e partic!lar topic in )ept' an) 4'ic' lea)s to t'ro!"' to t'at topic5 O!r topic for t'e "ran) pro.ect is title) as 9St!)( of cons!mer oriente) sales promotion in FMCG sector: in 4'ic' emp'asis "i-en to t'e effect of sales promotion on ,!(in" 'a,its of cons!mers5 To start 4it' 4e 4ill "i-e ,rief information re"ar)in" FMCG sector t'en mo-in" to t'e main topic 4e 4ill e;plain 4'at is topic is all a,o!t5 Promotion is one of t'e pillars of mar$etin" mi; an) same 4a( sales promotion is also one of t'e elements of promotion5 >it' respect to cons!mer oriente) sales promotion t'ere are certain t'eories narrate) as operant con)itionin" an) pro.ecti-e t'eor(5 Base) on secon)ar( so!rce certain t'eoretical aspects are also incl!)e) as a part of st!)( an) after concentration is "i-en to t'e primar( researc'5 It incl!)es t'e anal(sis an) res!lts of s!r-e( 4'ic' foc!ses on cons!merAs ,e'a-ior to4ar)s sales promotion campai"n5 T'e s!r-e( 4as con)!cte) 4it' t'e 'elp of str!ct!re) 3!estionnaire5 *t last concl!sion of report+ fin)in"s an) s!""estions 4ere "i-en+ ,ase) on st!)( of secon)ar( so!rce as 4ell as primar( researc'5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B

Role of sales promotions in FMCG sector

INDE:
Sr. N". 1. 2. ;. 4. 5. <. =. 1. >. 13. 11. 12. 1;. TOPICS R*(*ar.! M* !"#"+"7$ ", !* ( )#$ I' r"#). %"' I' r"#). %"' " !* "-%. Sa+*( -r"&" %"' ( ra *7%*( S5OT A'a+$(%( Da a A'a+$(%( ", !* ()r9*$ F%'#%'7( ", !* r*-"r R*."&&*'#a %"'( L%&% a %"'( E&*r7%'7 Tr*'#( C"'.+)(%"' B%?+%"7ra-!$ A''*8)r*0 @)*( %"''a%r* Pa7* N". B C 2/ &= &0 7/ @0 B2 B7 B= B@ BB BC

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D

Role of sales promotions in FMCG sector

RESEARCH METHODOLOGY
R*(*ar.! O?/*. %9*(0
25 To st!)( cons!mer preferences 4it' respect to sales promotion in FMCG sector5 &5 To e;amine tra)eoffs+ relati-e importance of )ifferent attri,!tes 4'ile respon)in" to a sales promotion offer5 75 To st!)( t'e effect of sales promotions in FMCG sector esp5 in soaps an) )eter"ent in)!str(5 =5 To st!)( cons!mer ,e'a-ior in p!rc'ase of soaps an) )eter"ent

Pr"#). .a *7"r%*( )'#*r ( )#$

DETERGENTS: TOILETERIES >as'in" Po4)er for Clot'es Soaps

R*(*ar.! D*(%7'
Researc' )esi"n selecte) for t'is pro.ect is Descripti-e5

Da a ."++*. %"' M* !"#0

(a) Pr%&ar$ Da a C"++*. %"' M* !"#0 S!r-e( met'o) 4as !se) for primar( )ata collection5 >e !se) 3!estionnaire as an instr!ment for s!r-e( met'o)5 Str!ct!re) 3!estionnaire5 T(pe of 3!estionnaire: Open en)e) an) close) en)e)5 (?) S*."'#ar$ Da a C"++*. %"' &* !"#0 Reference ,oo$s5 Internet5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% C

Role of sales promotions in FMCG sector

Sa&-+%'7 D* a%+
25 Tar"et pop!lation: T'e pop!lation for t'is researc' st!)( consists of t'e resi)ence of *'me)a,a)5 &5 Samplin" !nit: 75 Sample si8e: In t'is st!)( t'e samplin" !nit is in)i-i)!al cons!mer5 2// cons!mers an) 2// retailers5

75 Samplin" met'o): T'e sample is selecte) ,( !sin" con-enience1 samplin" met'o)5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 0

Role of sales promotions in FMCG sector

I' r"#). %"'

FMCG C"'.*- a'# D*,%'% %"'0

T'e term FMCG #fast mo-in" cons!mer "oo)s%+ alt'o!"' pop!lar an) fre3!entl( !se) )oes not 'a-e a stan)ar) )efinition an) is "enerall( !se) in In)ia to refer to pro)!cts of e-er()a( !se5 Concept!all(+ 'o4e-er+ t'e term refers to relati-el( fast mo-in" items t'at are !se) )irectl( ,( t'e cons!mer5 T'!s+ a si"nificant "ap e;ists ,et4een t'e "eneral !se an) t'e concept!al meanin" of t'e term FMCG5

F!rt'er+ )iffic!lties crop !p 4'en attempts to )e-ise a )efinition for FMCG5 T'e pro,lem arises ,eca!se t'e concept 'as a retail orientation an) )istin"!is'es ,et4een cons!mer pro)!cts on t'e ,asis of 'o4 3!ic$l( t'e( mo-e at t'e retailerAs s'el-es5 T'e moot 3!estion t'erefore+ is 4'at in)!str( t!rnaro!n) t'res'ol) s'o!l) ,e for t'e item to 3!alif( as an FMCG5 S'o!l) t'e t!rnaro!n) 'appen )ail(+ 4ee$l(+ or mont'l(E One of t'e factors on 4'ic' t'e t!rnaro!n) )epen)s is t'e p!rc'ase c(cle5 Fo4e-er+ t'e p!rc'ase c(cle for t'e same pro)!ct ten) to -ar( across pop!lation se"ments5 Man( lo41income 'o!se'ol)s are force) to ,!( certain pro)!cts more fre3!entl( ,eca!se of lac$ of li3!i)it( an) stora"e space 4'ile relati-el( 'i"'1income 'o!se'ol)s ,!( t'e same pro)!cts more infre3!entl(5 Similarl(+ t'e p!rc'ase c(cle also ten)s to -ar( ,eca!se of c!lt!ral factors5 Most In)ians+ t(picall(+ prefer fres' foo) articles an) t'erefore to ,!( relati-el( small 3!antities more fre3!entl(5 T'is is in s'arp contrast 4it' 4'at 'appens in most 4estern co!ntries+ 4'ere t'e practice of ,!(in" an) soc$in" foo)s for relati-el( lon"er perio) is more pre-alent5 T'!s+ s'o!l) t'e in-entor( t!rnaro!n) t'res'ol) ,e !ni-ersal+ or s'o!l) it allo4 for income+ c!lt!ral an) ,e'a-ioral n!ancesE

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2/

Role of sales promotions in FMCG sector

C!ara. *r%( %.( ", FMCG Pr"#). (0

In)i-i)!al items are of small -al!e5 B!t all FMCG pro)!cts p!t to"et'er acco!nt for a si"nificant part of t'e cons!merGs ,!)"et5 T'e cons!mer $eeps limite) in-entor( of t'ese pro)!cts an) prefers to p!rc'ase t'em fre3!entl(+ as an) 4'en re3!ire)5 Man( of t'ese pro)!cts are peris'a,le5 T'e cons!mer spen)s little time on t'e p!rc'ase )ecision5 Rarel( )oes 'eHs'e loo$ for tec'nical specifications #in contrast to in)!strial "oo)s%5 Bran) lo(alties or recommen)ations of relia,le retailerH)ealer )ri-e p!rc'ase )ecisions5 Trial of a ne4 pro)!ct i5e5 ,ran) s4itc'in" is often in)!ce) ,( 'ea-( a)-ertisement+ recommen)ation of t'e retailer or nei"',orsHfrien)s5 T'ese pro)!cts cater to necessities+ comforts as 4ell as l!;!ries5 T'e( meet t'e )eman)s of t'e entire cross section of pop!lation5 Price an) income elasticit( of )eman) -aries across pro)!cts an) cons!mers5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 22

Role of sales promotions in FMCG sector

I' r"#). %"'

T'e importance of cons!mer sales promotion in t'e mar$etin" mi; of t'e fast mo-in" cons!mer "oo)s #FMCG% cate"or( t'ro!"'o!t t'e 4orl) 'as increase)5 Companies spen) consi)era,le time in plannin" s!c' acti-ities5 Fo4e-er+ in or)er to en'ance t'e effecti-eness of t'ese acti-ities+ man!fact!rers s'o!l) !n)erstan) cons!mer an) retailer interpretations of t'eir promotional acti-ities5 T'e st!)( 'ere pertains to cons!merAs perceptions re"ar)in" sales promotion5 Some past researc'es 'a-e s!""este) t'at promotion itself 'as an effect on t'e percei-e) -al!e of t'e ,ran)5 T'is is ,eca!se promotions pro-i)e !tilitarian ,enefits s!c' as monetar( sa-in"s+ a))e) -al!e+ increase) 3!alit( an) con-enience as 4ell as 'e)onic ,enefits s!c' as entertainment+ e;ploration an) self1e;pression5 Broa)l( spea$in" most of t'e companies !sin" Mar$etin" Mi; 4'ic' incl!)esI Price Place #C'annel of Distri,!tion% Pro)!ct Pr"&" %"' T'ese are t'e fo!r ,asic pillar of mar$etin" mi;5 Most of t'e mar$etin" strate"ies are ,!ilt on t'e ,asis of t'ese criteria5 Promotion is one of t'e important elements of mar$etin" mi;5 T'ere are so man( elements of promotion s!c' as I *)-ertisin" Direct Mar$etin" P!,lic Relations Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2&

Role of sales promotions in FMCG sector Sa+*( Pr"&" %"' Tra)itionall(+ sales Promotions 'a-e ,een !se) ,( mar$eter to increase sales in t'e s'ort term5 Fo4e-er+ in t'e last fe4 )eca)es t'is comm!nication tool 'as e-ol-e) an) no4 is consi)ere) from a strate"ic point of -ie45 For t'is reason+ it is necessar( to reali8e ne4 st!)ies in t'is area an) st!)( 'o4 cons!mers e-al!ate sales promotions5 Sales promotions 'a-e "ro4n in ,ot' importance an) fre3!enc( o-er t'e past fe4 )eca)es5 *lt'o!"' an acc!rate estimate for total sales promotions e;pen)it!res )oes not e;ist+ 4e can ,e s!re t'at t'e tren) is !p5 Sales promotion ser-es t'ree essential roles: It informs+ pers!a)es an) remin)s prospecti-e c!stomers a,o!t a compan( an) its pro)!cts5 E-en t'e most !sef!l pro)!ct or ,ran) 4ill ,e a fail!re if no one $no4s t'at it is a-aila,le5 *s 4e $no4+ c'annels of )istri,!tion ta$e more time in creatin" a4areness ,eca!se a pro)!ct 'as to pass t'ro!"' man( 'an)s ,et4een a pro)!cer an) cons!mers5 T'erefore+ a pro)!cer 'as to inform c'annel mem,ers as 4ell as !ltimate cons!mers a,o!t t'e attri,!tes an) a-aila,ilit( of 'is pro)!cts5 T'e secon) p!rpose of promotion is pers!asion5 T'e c!t t'roat competition amon" )ifferent pro)!cts p!ts tremen)o!s press!re on t'eir man!fact!rers an) t'e( are compelle) to !n)erta$e sales promotion acti-ities5 T'e t'ir) p!rpose of promotion is remin)in" cons!mers a,o!t pro)!cts a-aila,ilit( an) its potential to satisf( t'eir nee)s5 From t'ese elements Sales Promotion is t'e element 4'ic' is in t'e foc!s of t'is pro.ect5 F!rt'er Sales Promotion is 3!ite ,roa) term it incl!)es I C"'()&*r Or%*' *# Sa+*( Pr"&" %"' Tra#* Or%*' *# Sa+*( Pr"&" %"'

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 27

Role of sales promotions in FMCG sector

C"'()&*r Or%*' *# Sa+*( Pr"&" %"'

Cons!mer Oriente) Sales Promotion is t'e main topic of t'is pro.ect5 Fere emp'asi8e is "i-en to moti-ate cons!mer to increase sales5 Cons!mer Oriente) Sales Promotion incl!)es Samplin"+ Co!ponin"+ Premi!ms+ Contest+ Ref!n)s+ Re,ates+ Bon!s Pac$As+ Price1off+ E-ent mar$etin" etc5 D*,%'% %"'0 For t'e p!rpose of t'is st!)(+ follo4in" )efinitions of sales promotion 4ere $ept in min)5 6otler )efines sales promotion as: 9Sales promotion consists of a )i-erse collection of incenti-e tools+ mostl( s'ort1term )esi"ne) to stim!late 3!ic$er an)Hor "reater p!rc'ase of partic!lar pro)!ctsHser-ices ,( cons!mers or t'e tra)e:5 Ro"er Stran" 'as "i-en a more simplistic )efinition i5e5 9sales promotions are s'ort1term incenti-es to enco!ra"e p!rc'ase or sales of a pro)!ct or ser-ice5: Fence+ an( forms of incenti-es #price c!t or -al!e a))e) nat!re% offere) for s'ort perio) eit'er to tra)e or cons!mers are consi)ere) as sales promotion acti-ities5

MarA* *rB( )(*( ."'()&*r "r%*' *# (a+*( -r"&" %"' ""+( ,"r !* ,"++"C%'7 r*a("'(0 #Mar$etin"% To increase s'ort term sales To in)!ce trial To re)!ce in-entor( To esta,lis' a ,ran) name To ma$e cross sellin" Som alit Instit!te Of B!siness Mana"ement 2=

Role of sales promotions in FMCG sector To cope !p 4it' competition To a-oi) a)-ertisin" cl!tter

T""+( ", C"'()&*r Or%*' *# Sa+*( Pr"&" %"'0

T'ere are so man( tools or tec'ni3!e a-aila,le to t'e mar$eters for ac'ie-in" o,.ecti-e of sales promotion5 T'ese tools s'o!l) ,e !se) consi)erin" all ot'er factors affectin" s!c' as cost+ time+ competitors+ a-aila,ilit( of "oo)s etc5 T'ese tools are as !n)erI 25 Co!pons &5 Price1Off 75 Free,ies =5 Scratc' Car)s @5 !c$( Dra4s B5 B!n)lin" Offer D5 E;tra J!antit( etAs 'a-e loo$ at eac' toolI

1. C")-"'(0
Co!pon is t'e ol)est an) most 4i)el( !se) 4a( of sales promotion5 Co!pons 'a-e ,een !se) since 2C0@5 It is mostl( !se) ,( pac$a"e) "oo)s5 It is 4ort'4'ile to !se co!pon as a promotion tool ,eca!se )ata s'o4s t'at mar$et for pac$a"e) "oo)s increase) from 2B ,illion in 20BC to 72/ ,illion in 200=5 To ,oost !p t'e sales not onl( man!fact!rer ,!t retailers personall( can also !se)5 * co!pon lea)s to price re)!ctions so as to enco!ra"e price sensiti-e c!stomers5 <on !sers can tr( a pro)!ct 4'ic' ma( lea)s to re"!lar sales5

2. Pr%.*D",,0
Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2@

Role of sales promotions in FMCG sector * price1off is simpl( a re)!ction in t'e price of t'e pro)!ct to increase sales an) is -er( often !se) 4'en intro)!ction a ne4 pro)!ct5 * re)!ction in price al4a(s increases sales

,!t t'e !se of t'is tec'ni3!e s'o!l) ,e caref!ll( consi)ere) in t'e c!rrent mar$et sit!ation5 Price1off is t'e most preferre) sales promotion tec'ni3!e ,eca!se cons!mers response -er( positi-el( to t'is sc'eme5 <ot onl( t'at ,!t it also ca!se lar"e increase in sales -ol!me5 Price1off re)!ctions are t(picall( offere) ti"'t on t'e pac$a"e t'ro!"' speciall( mar$e) price pac$s5 E5"5 6rac$ Jac$ offers 7/K Price1off5

;. Fr**?%*(
Free,ies are a pop!lar form of mo)ern mar$etin" an) are some of t'e ,est t'in"s a,o!t t'e internet5 T'e )efinition of free,ies is pro)!cts or ser-ices "i-en a4a( for free at no cost to t'e cons!mer5 >ell t'atAs t'e )efinition 4e came !p 4it'5 I am a ,ar"ain free,ie s'opper+ prett( m!c' "oin" for an( free pro)!ct an) informin" e-er(one a,o!t it5 *t )ifferent times+ ,i" an) small companies often "i-e a4a( pri8es an) mone( 4'ic' is too "oo) to ,e tr!e5 Often itAs in t'e p!rs!it of more c!stomers or a lar"er fan ,ase an) it often 4or$s5

4. S.ra .! Car#(
* scratc' car) #also calle) a scratc' off+ scratc' tic$et+ scratc'er+ scratc'ie+ scratc'1it+ scratc' "ame+ scratc'1an)14in or instant "ame% is a small to$en+ !s!all( ma)e of car),oar)+ 4'ere one or more areas contain conceale) information: t'e( are co-ere) ,( a s!,stance t'at cannot ,e seen t'ro!"'+ ,!t can ,e scratc'e) off5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2B

Role of sales promotions in FMCG sector

5. B)'#+%'7 O,,*r(
Pro)!ct ,!n)lin" is a mar$etin" strate"( t'at in-ol-es offerin" se-eral pro)!cts for sale as one com,ine) pro)!ct5 T'is strate"( is -er( common in t'e soft4are ,!siness #for

e;ample: ,!n)le a 4or) processor+ a sprea)s'eet+ an) a )ata,ase into a sin"le office s!ite%+ in t'e ca,le tele-ision in)!str( #for e;ample+ ,asic ca,le in t'e Unite) States "enerall( offers man( c'annels at one price%+ an) in t'e fast foo) in)!str( in 4'ic' m!ltiple items are com,ine) into a complete meal5 * ,!n)le of pro)!cts is sometimes referre) to as a pac$a"e )eal or a compilation or an ant'olo"(5

Fa. "r( I',+)*'.%'7 C"'()&*r Or%*' *# (a+*( -r"&" %"'0

Mainl( fo!r factors s'o!l) ,e ta$en into acco!nt 4'ile )eterminin" t'e sales promotion pro"ram5 L Tar"et mar$et L <at!re of pro)!ct L Sta"e of pro)!ct life c(cle L B!)"et a-aila,le for promotion

1. Tar7* MarA* 0 >'ile )oin" sales promotion+ mar$eter m!st $no4 4'o t'eir tar"et mar$et is? ot'er4ise t'ere is no !se of all effort ,eca!se it lea)s to no 4'ere5 * tar"et mar$et can ,e in an( of t'e sta"es of ,!(in" 'ierarc'( i5e5 a4areness+ $no4le)"e+ li$in"+ preferences+ con-iction an) p!rc'ase5 Eac' sta"e )efines a possi,le "oal of promotion5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2D

Role of sales promotions in FMCG sector 2. Na )r* ", !* -r"#). 0 T'ere are -ario!s pro)!ct attri,!tes 4'ic' infl!ence sales promotional strate"(5 >'en t'e !nit price is lo4 t'e man!fact!rer as 4ell as t'e c!stomer 'as lo4 ris$ ,!t 'e can "et t'e ,enefit of mass mar$etin"5 T'erefore+ mass mar$etin" re3!ires mass sales promotion sc'emes5 Sales promotion sc'eme )iffer for pro)!cts li$e its )!ra,ilit(+ peris'a,le "oo)s etc5 ;. S a7* ", -r"#). L%,* C$.+*0 Sales promotion strate"ies are infl!ence) ,( t'e life c(cle of a pro)!ct5 >'en a ne4 pro)!ct intro)!ce)+ prospecti-e ,!(ers m!st ,e informe) a,o!t its e;istence an) its ,enefits an) mi))lemen m!st ,e con-ince) to stoc$ it5 increase its sales5 4. B)#7* A9a%+a?+* ,"r Pr"&" %"'0 T'e f!n)s a-aila,le for promotion are t'e !ltimate )eterminant of t'e promotional pro"ramme5 * ,!siness 4it' ample f!n)s can ma$e more effecti-e !se of sales promotion pro"ramme t'an a firm 4it' limite) financial reso!rces5 T'e ,!)"et for sales promotion can ,e prepare) ,( t'e follo4in" met'o)sI Percenta"e of Sales Fi;e) f!n)s a-aila,le for sales promotion Follo4in" t'e competition+ an) B!)"etin" ,( o,.ecti-e5 ater+ if a pro)!ct ,ecomes s!ccessf!l+ competition intensifies an) more emp'asis is place) on sales promotion to

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 2C

Role of sales promotions in FMCG sector

Sa+*( Pr"&" %"' ,r"& !* C"'()&*r( -"%' ", 9%*C

5%++%'7'*(( " ?)$ "' (a+*( -r"&" %"' ",,*r Si;t( per cent of t'e sample )i) not s'o4 4illin"ness to ,!( a ,ran) )!e to promotion 4'ile 7/K s'o4e) 4illin"ness an) 2/K 4ere not s!re5 T'is in)icates t'at 4'en 7/K s'o4e) 4illin"ness an) 2/K cons!mers 4'o 4ere not s!re+ t'ese "ro!ps mi"'t ,e l!re) t'ro!"' inno-ati-e an) l!crati-e sales promotion offer5 A?%+% $ " %'#).* r%a+ Fort( per cent of t'e respon)ents 'a) sai) t'at sales promotion 'a) t'e a,ilit( to in)!ce trial 4'ic' reinforces t'e a,o-e inference5 L"'7D *r& %&-a. In or)er to !n)erstan) a,ilit( of t'e promotions to increase lon"1term sales+ respon)ents 4ere as$e) a,o!t contin!it( of p!rc'ase of a ,ran) after t'e 4it')ra4al of promotion5 Ei"'t( per cent of t'e respon)ents in)icate) t'at t'e( 4o!l) not contin!e5 B!t &/K sai) t'e( 4o!l)5 T'!s+ it co!l) ,e inferre) t'at promotions in t'is cate"or( #lo4 in-ol-ement pro)!cts% mi"'t enco!ra"e trial an) ,ran) s4itc'in" ,!t not lon" term lo(alt(5 Pr*,*r*'.* ", S.!*&*(: Price off 4as t'e most preferre) t(pe of sc'eme5 Ma;im!m c!stomersA ran$e) price1offs as n!m,er one or t4o5 P*r.*%9*# @)a+% $:

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 20

Role of sales promotions in FMCG sector Ma.orit( of respon)ents 'a) a perception t'at t'e 3!alit( of t'e promote) ,ran)s remaine) t'e same )!rin" promotion+ 4'ile some of t'em felt t'at it 4as inferior t'an ,efore5 It can ,e inferre) t'at promotions 4ere not lea)in" to ne"ati-e ,ran) 3!alit( perceptions5 It is fo!n) t'at some c!stomer stron"l( preferre) to ,!( t'eir re"!lar ,ran) an) sai) t'at sales promotion 4o!l) not 4ea$en t'eir lo(alt( to4ar)s t'e ,ran)5 P*r.*- %"'( r*7ar#%'7 )'#*r+$%'7 ."&-a'$ &" %9a %"'( On tappin" perceptionsA re"ar)in" !n)erl(in" compan( moti-ations for sales promotion+ 9to increase sales: 4as ran$e) 'i"'est follo4e) ,( 9to attract s4itc'ers: an) 9to sell e;cess stoc$s:5 >'ile pro-i)in" -al!e to c!stomers: an) 9To reinforce compan( ima"e: 4ere ran$e) lo4est5 T'is in)icates t'at cons!mers ,elie-e) t'at companies 4ere !n)erta$in" s!c' acti-ities onl( for t'eir o4n ,enefit an) not for t'e ,enefit of cons!mers5 Fin)in"s from retailer an) cons!mer perception st!)ies+ it is e-i)ent t'at t'ere 4as a matc'in" of perceptions re"ar)in" nat!re of sc'eme #price offs as most preferre) t(pe of sc'eme mentione) ,( cons!mers an) retailersA perceptions a,o!t cons!mer preferences%5 Since retailers o,ser-e cons!mers in store ,e'a-ior 4ere fre3!entl( an) )irectl(+ t'eir perceptions re"ar)in" pro-i)in" cons!mer ,e'a-ior are li$el( to ,e acc!rate5 S!c' inp!ts from t'e retailers 4o!l) ,e !sef!l to companies5 T'e retailers 'a) t'e perception t'at t'ose sc'emes 4'ic' 4ere anno!nce) t'ro!"' mass me)ia 'a) ,etter response5 T'is 4as reinforce) ,( t'e cons!mer s!r-e( 4'ic' s'o4e) t'at recall in case of 'ea-il( promote) sc'emes on TM 4as fo!n) to ,e -er( 'i"'5 RetailersA pre)iction of companiesA moti-ation for offerin" sales promotion 4ere matc'in" 4it' t'e cons!mer perception re"ar)in" t'e same5 T'!s ,ot' -ie4e) t'at companies 4ere !sin" sales promotion acti-ities mainl( to increase s'ort term sales or enco!ra"e s4itc'in" or sellin" e;cess stoc$ an) not reall( to "i-e -al!e ,enefit or en'anceHreinforce ,ran)Hcompan( ima"e5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &/

Role of sales promotions in FMCG sector

Tra#* Or%*' *# Sa+*( Pr"&" %"'

Tra)e Oriente) Sales Promotion aime) to moti-ate c'annel mem,er of t'e compan( an) to enco!ra"e t'em to p!s' compan(As pro)!ct5 Tra)e Oriente) Sales Promotion incl!)es )ealer contest an) incenti-es+ tra)e allo4ances5 Point1of1p!rc'ase )ispla(s+ sales trainin" pro"rams+ tra)e s'o4s+ cooperati-e a)-ertisin"+ an) ot'er pro"rams )esi"ne) to moti-ate )istri,!tors an) retailers to carr( a pro)!ct an) ma$e an e;tra effort to p!s' it to t'eir c!stomers

Sa+*( -r"&" %"' ,r"& !* r* a%+*rB( -"%' ", 9%*C0

P*r.*- %"'( "' S.!*&* Pr*,*r*'.* It 4as fo!n) t'at retailer percei-e) price offs as a ,etter form of sales promotion acti-it(5 Price offs in t'eir opinion 'a) relati-el( a "reater impact compare) to an( ot'er form of sales promotion acti-it( li$e Bon!s pac$s+ Premi!m+ Contests etc5 Retailers preferre) price offs t'e most+ t'en ,on!s pac$+ premi!m+ contests+ in or)er of importance5 P*r.*- %"'( a?") B)$%'7 R"+*( Retailers -ie4e) t'at t'e person 4'o came to t'e s'op #4'o ma( ,e a mai)+ son+ )a!"'ter+ )a!"'ter1in1la4 an) c'il)% 4as t'e )eci)er of a toilet soap ,ran) an) not t'e Income pro-i)er #e5"5 'ea) of t'e famil(%5 It co!l) ,e inferre) t'at -isi,ilit( of information a,o!t t'e sales promotion acti-it( at t'e point of p!rc'ase co!l) res!lt into t'e p!rc'ase of a promote) ,ran)5 P*r.*- %"'( a?") !*%r r"+* %' #*.%(%"'D&aA%'7

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &2

Role of sales promotions in FMCG sector Retailer 'a) relati-el( -er( lo4 infl!ence in affectin" c'oice5 It co!l) ,e inferre) t'at -isi,ilit( an) a4areness a,o!t t'e sc'eme 4ere t'e critical s!ccess factors so t'at p!ll co!l) ,e create)5 P*r.*- %"'( a?") R*(-"'(* " Sa+*( Pr"&" %"' O,,*r( T'e( ,elie-e) t'at (o!n"er a"e1"ro!ps 4ere more e;perimental in nat!re+ amena,le to tr(in" ne4 ,ran)s+ an) so!"'tHloo$e) for or as$e) 4'et'er t'ere 4ere an(% sales promotion sc'emes r!nnin" on an( toilet soap at t'e time of p!rc'ase5 P*r.*- %"'( a?") C"&&)'%.a %"'( ", Sa+*( Pr"&" %"' S.!*&*( Retailers percei-e) t'at role of 4or) of mo!t' an) tele-ision a)-ertisin" pla(e) an important part in pro-i)in" information inp!ts to cons!mers re"ar)in" sales promotion acti-ities5 Ear%a %"'( %' I',"r&a %"' F+"C Smaller #non1s!permar$et+ small format store% retailers recei-e) relati-el( less s!pport compare) to s!permar$ets in terms of ser-icin"+ mar"ins+ information a,o!t sales promotion acti-ities from t'e )ealers5 Man( a times small retailers 4ere onl( informe) -er,all( a,o!t sales promotion sc'emes ,( t'e )ealer salesmen )!rin" t'e sc'e)!le) 4ee$l( -isits5 D*a+*rDR* a%+*r D$'a&%.( *t t'e time of sales promotion acti-ities+ )ealers 'a) ten)enc( to p!s' !n4ante) stoc$s onto t'e smaller retailers5 In fact t'ese retailers preferre) to stoc$ -ariet( of ,ran)s an) 4ante) pa(ment for s'elf an) 4in)o4 )ispla( to increase traffic into t'eir store5 Fo4e-er+ s!permar$ets an) ,i" retailers 4ere pampere) an) "i-en special ser-ices an) "i-en ,etter mar"ins an) ,etter allo4ances5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &&

Role of sales promotions in FMCG sector Mar7%'( It 4as fo!n) t'at in sales promotion sc'emes mar"ins -arie) from B to2@K )epen)in" of t'e si8e of t'e retail o!tlet+ ,ar"ainin" po4er of a retailer+ 3!antit( or)ere) ,( 'im etc5 Mostl( mar"ins 4ere lin$e) to si8e of t'e -ol!mes t'at 4ere or)ere)5 P*r.*- %"'( a?") *r&( a'# ."'#% %"'( Retailers 4ere not fo!n) to ,e 'app( 4it' sales promotion sc'emes 4'ere t'eir mar"ins 4ere c!t on t'e prete;t of .!st fast mo-ement of in-entor( of t'e ,ran) ,ein" promote)5 *lso if a))itional incenti-e 4as offere) it 4as s!,.ect to minim!m performance re3!irement5 Na )r* ", POP Retailers in)icate) t'at most of t'e POP #Point of P!rc'ase% materials 4ere meant for ,ran) a)-ertisement an) not for "i-in" information re"ar)in" t'e sc'emes5 T'!s it co!l) ,e inferre) t'at compan(As follo4 !p 4as not a)e3!ate5 S*r9%.%'7 #)r%'7 #)ra %"' ", S.!*&* In stoc$1o!t sit!ation )!rin" t'e r!nnin" of t'e sales promotion sc'emes+ smaller retailers 'a) to 4ait for replenis'ment of stoc$s till t'e ne;t sc'e)!le) 4ee$l( -isit ,( t'e )ealer salesman ,!t ,i" retailers 4ere ser-ice) on telep'onic re3!est for replenis'ment of stoc$s5 T'is clearl( in)icate) t'e )isparit( in treatment5 Pr"?+*& ", +*, D"9*r * lefto-er stoc$ at t'e en) of an( sc'eme 4as re3!ire) to ,e sol) ,( t'e retailers ,efore t'e( or)ere) fres' stoc$s5 In case of ,on!s pac$s sc'eme+ lefto-er stoc$ 4as often )ismantle) #c!t open ,!( one "et one free% an) sol) t'em in)i-i)!all( as a re"!lar soap5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &7

Role of sales promotions in FMCG sector

T'is approac' of t'e compan( lea)s to misappropriation 4'ic' in t!rn co!l) res!lt in a)-erse ,ran) ima"e5 G%, ( ,"r R* a%+*r &" %9a %"' Companies at times 4ere re4ar)in" retailers ,( "i-in" free "ifts li$e t'ermos flas$s or cloc$s if t'e( sol) more t'an certain 3!antit( in a "i-en perio)5 Companies 4ere ma$in" a 'alf1'earte) effort to moti-ate retailers5 P*r.*- %"'( a?") &a(( &*#%a a''")'.*&*' ( Retailers -ie4e) t'at 4'ene-er sales promotion sc'eme 4as anno!nce) on TM+ it create) p!ll an) t'e( 4ere more t'an 4illin" to stoc$ s!c' ,ran)s5 For e;ample Me)imi; an) Dettol contest 4as not a)-ertise) on TM+ 'ence t'ere 4as -er( little a4areness lea)in" to !nsol) stoc$ till B mont's5 >'ile !; Gol) Star 4'ic' 4as 'ea-il( promote) on T5M5 is recalle) e-en to)a(5 P"( Pr"&" %"' B*!a9%"r Retailers o,ser-e) t'at in most cases sales promotion sc'eme on a ,ran) mi"'t enco!ra"e a ,!(er to s4itc' a ,ran) temporaril( ,!t 'e 4o!l) re-ert ,ac$ to ori"inal ,ran) after promotion5 Ha'#+%'7 Pr"?+*&( Man( a timeAs retailers 'a) to 'an)le -ario!s sales promotion offers sim!ltaneo!sl( in a cate"or( an) also across cate"ories an) t'ere 4as no formal comm!nication plannin" eit'er from t'e )ealer or t'e compan(5 Remem,erin" eac' offer an) 'an)lin" 4as a pro,lem especiall( for a small retailer 4'ic' 4as often an as one1man s'o45 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &=

Role of sales promotions in FMCG sector

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &@

Role of sales promotions in FMCG sector

5!$ #" Sa+*( -r"&" %"' (.!*&*( a,,*. (a+*(F

T'ere are t'ree mec'anisms ,e'in) t'ese facts5 It is P!rc'ase 3!antit(+ Bran) s4itc'in" an) Cate"or( e;pansion5 1) Cons!mer can increase t'e 3!antit( t'e( ,!( .!st ,eca!se t'e pro)!ct is on sale5 2) Cons!mers are in)!cin" to p!rc'ase anot'er ,ran) )ifferent from t'e one t'e( 4o!l) 'a-e p!rc'ase) 4'en t'ere is no promotional incenti-e5 ;) Cons!merAs total cons!mption of t'e pro)!ct cate"or( is increase) ,( t'e promotion5 Fo4e-er+ in t'e lon" term t'is positi-e effect ma( ,e )il!te) ,eca!se a promotional campai"n 'as no permanent effect in t'e sales of t'e firm

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &B

Role of sales promotions in FMCG sector

Sa+*( Pr"&" %"' S ra *7$

Sales are t'e life,loo) of a ,!siness+ 4it'o!t sales t'ere 4o!l) ,e no ,!siness in t'e first place? t'erefore it is -er( important t'at if a ,!siness 4ants to s!ccee)+ it s'o!l) 'a-e a sales promotion strate"( in min)5 T'e primar( o,.ecti-e of a sales promotion is to impro-e a compan(As sales ,( pre)ictin" an) mo)if(in" (o!r tar"et c!stomerAs p!rc'asin" ,e'a-ior an) patterns5 Sales promotion is -er( important as it not onl( 'elps to ,oost sales ,!t it also 'elps a ,!siness to )ra4 ne4 c!stomers 4'ile at t'e same time retainin" ol)er ones5 T'ere are a -ariet( of sales promotional strate"ies t'at a ,!siness can !se to increase t'eir sales+ 'o4e-er it is important t'at 4e first !n)erstan) 4'at a sales promotion strate"( act!all( is an) 4'( it is so important5 * sales promotion strate"( is an acti-it( t'at is )esi"ne) to 'elp ,oost t'e sales of a pro)!ct or ser-ice5 T'is can ,e )one t'ro!"' an a)-ertisin" campai"n+ p!,lic relation acti-ities+ a free samplin" campai"n+ a free "ift campai"n+ a tra)in" stamps campai"n+ t'ro!"' )emonstrations an) e;'i,itions+ t'ro!"' pri8e "i-in" competitions+ t'ro!"' temporar( price c!ts+ an) t'ro!"' )oor1to1)oor sales+ telemar$etin"+ personal sales letters+ an) emails5 T'e importance of a sales promotion strate"( cannot ,e !n)erestimate)5 T'is is ,eca!se a sales promotion strate"( is important to a ,!siness ,oostin" its sales5 >'en )e-elopin" a sales promotion strate"( for (o!r ,!siness+ it is important t'at (o! $eep t'e follo4in" points in min)5

Cons!mer attit!)es an) ,!(in" patterns Yo!r ,ran) strate"( Yo!r competiti-e strate"( Yo!r a)-ertisin" strate"( Ot'er e;ternal factors t'at can infl!ence pro)!cts a-aila,ilit( an) pricin"5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &D

Role of sales promotions in FMCG sector

T!*r* ar* !r** $-*( ", (a+*( -r"&" %"' ( ra *7%*(0

* p!s' strate"( * p!ll strate"( or * com,ination of t'e t4o

A P)(! S ra *7$0
* Np!s'A sales promotion strate"( in-ol-es Np!s'in"A )istri,!tors an) retailers to sell (o!r pro)!cts an) ser-ices to t'e cons!mer ,( offerin" -ario!s $in)s of promotions an) personal sellin" efforts5 >'at 'appens 'ere is t'at a compan( promotes t'eir pro)!ctHser-ices to a reseller 4'o in t!rn promotes it to anot'er reseller or to t'e cons!mer5 T'e ,asic o,.ecti-e of t'is strate"( is to pers!a)e retailers+ 4'olesalers an) )istri,!tors to carr( (o!r ,ran)+ "i-e it s'elf space+ promote it ,( a)-ertisin"+ an) !ltimatel( Np!s'A it for4ar) to t'e cons!mer5 T(pical p!s' sales promotion strate"ies incl!)e? ,!(1,ac$ "!arantees+ free trials+ contests+ )isco!nts+ an) specialt( a)-ertisin" items5

A P)++ S ra *7$0
* Np!llA sales promotion strate"( foc!ses more on t'e cons!mer instea) of t'e reseller or )istri,!tor5 T'is strate"( in-ol-es "ettin" t'e cons!mer to Np!llA or p!rc'ase t'e pro)!ctHser-ices )irectl( from t'e compan( itself5 T'is strate"( tar"ets its mar$etin" efforts )irectl( on t'e cons!mers 4it' t'e 'ope t'at it 4ill stim!late interest an) )eman) for t'e pro)!ct5 T'is p!ll strate"( is often !se) 4'en )istri,!tors are rel!ctant to carr( or )istri,!te a pro)!ct5 T(pical p!ll sales promotion strate"ies incl!)e? samples+ co!pons+ cas' ref!n)s or re,ates+ lo(alt( pro"rams an) re4ar)s+ contests+ s4eepsta$es+ "ames+ an) point1of1p!rc'ase )ispla(s5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &C

Role of sales promotions in FMCG sector

A C"&?%'a %"' ", TC" S ra *7%*(0

* Ncom,inationA sales promotion strate"( is .!st t'at? it is a com,ination of a p!s' an) a p!ll strate"(5 It foc!ses ,ot' on t'e )istri,!tor as 4ell as t'e cons!mers+ tar"etin" ,ot' parties )irectl(5 It offers cons!mer incenti-es si)e ,( si)e 4it' )ealer )isco!nts5

T!* S!"r *r& I&-a. ", Pr"&" %"'(0

etAs 'a-e loo$ at t'e impact of promotions on p!rc'ase ,e'a-ior )!rin" t'e promotional perio) i5e5 t'e 4ee$ or t'e mont' 4'en t'e promotion 4as ,ein" r!n5 T'e ma.orit( of t'e empirical st!)ies 'a-e foc!se) on t'e impact of promotions in t'e s'ort term5 T'e $e( fin)in"s across t'e st!)ies are )isc!sse) ,elo45 T*&-"rar$ -r%.* r*#). %"'( (-r%.* ",,) ()?( a' %a++$ %'.r*a(* (a+*(0 T'ere is ample e-i)ence to s'o4 t'at promotions lea) to )ramatic increases in sales of promote) ,ran) in t'e s'ort term5 St!)ies 'a-e consistentl( reporte) 'i"' sales effects an) 'i"' price elasticit( of ,ran)s 4'ic' are on promotion5 T'e economic rationale for t'e promotional response is clear O temporar( price c!ts increase t'e -al!e of t'e pro)!ct to t'e cons!mer an) it lea)s to imme)iate action5 Sales ,oost can ,e 3!antifie) on t'e ,asis of ,ran) s4itc'in"+ primar( )eman) e;pansion an) cons!mer stoc$pilin" )!rin" a promotion5 Sa+*( Pr"&" %"' +*a#( " ?ra'# ()?( % ) %"' C% ! !* -r"#). .a *7"r$0

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% &0

Role of sales promotions in FMCG sector T'e sales N,!mpA )!rin" t'e promotional perio) into sales )!e to ,ran) s4itc'in"+ p!rc'ase time acceleration an) stoc$pilin"5 St!)ies on ,ran) s4itc'in" 'a-e s'o4n t'at ,ran) s4itc'in" effects 4it'in a cate"or( are as(mmetric s!c' t'at promotions on 'i"'er 3!alit( ,ran)s impacts 4ea$er ,ran)s )isproportionatel(5 D!rin" a promotion+ 'i"'er

3!alit( ,ran)s in)!ce a lar"e n!m,er of cons!mers to s4itc' to t'em as compare) to lo4er 3!alit( ,ran)s5 Sa+*( Pr"&" %"' +*a#( " -)r.!a(* a..*+*ra %"'2( ".A-%+%'7 *,,*. (0 In response to a promotion+ cons!mers ma( ,!( more 3!antit( of t'e pro)!ct cate"or( or ,!( at an earlier time t'an !s!al #p!rc'ase acceleration effect%5 If cons!mers ,!( e;tra 3!antit( )!rin" a promotion or earlier t'an normal+ t'en t'e( are not in t'e mar$et to ,!( pro)!cts once t'e promotion is o-er5 * len"t'enin" of inter p!rc'ase times after a promotion5 P!rc'ase acceleration 4as more li$el( to ,e e;'i,ite) in increase) p!rc'ase 3!antit( t'an in s'ortene) inter p!rc'ase times5 Res!lts s'o4e) t'at cons!mers mostl( ma)e !p for t'e lar"e 3!antit( p!rc'ase) ,( 4aitin" lon"er !ntil p!rc'asin" a"ain5 Res!lts in)icate) t'at 'ea-( !sers ten)e) to accelerate p!rc'ases more t'an li"'t !sers5 T'ere 4as ne"li"i,le )ifference in t'e acceleration propensities of 'i"' -ers!s lo4 income "ro!ps5 Sa+*( Pr"&" %"' +*a#( " -r%&ar$ #*&a'# *8-a'(%"' ,"r a .a *7"r$0 >'ile it 4as tra)itionall( ass!me) t'at cons!mption rates remain fi;e) )!rin" an) after a promotion+ ,!t from t'is pro.ect I came to $no4 t'at promotions also 'a-e a primar( )eman) e;pansion effect5 >'en a primar( )eman) e;pansion occ!rs+ promotion in)!ce) increase in p!rc'ase 3!antities )oes not si"nificantl( e;ten) t'e time till t'e ne;t p!rc'ase in t'e cate"or( occ!rs+ t'!s in)icatin" t'at t'ere 'as ,een an increase in cons!mption promotions in)!ce) cons!mers to ,!( more an) cons!me faster5 It is fo!n) t'at promotion in)!ce) in-entor( temporaril( increase) cons!mption rates 4it'in t'e cate"or( e5"5 in cate"ories s!c' as ,acon+ salte) snac$s+ soft )rin$s an) (o"!rt e;'i,ite) Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7/

Role of sales promotions in FMCG sector primar( )eman) e;pansions as a res!lt of promotion 4'ile ,at'room tiss!e+ coffee+ )eter"ent an) paper to4els e;'i,ite) stoc$pilin" onl(5

Sa+*( Pr"&" %"'( a,,*. (a+*( %' ."&-+*&*' ar$ a'# ."&-* % %9* .a *7"r%*(0 From t'is pro.ect it is fo!n) t'at promotion not onl( increases sales of main pro)!ct ,!t it also lea) to increase in sales of complementar( cate"ories5 Fo!n) stron" cross relations'ips ,et4een pro)!cts of t'e promote) pro)!ct cate"or( in)icatin" ,ran) s!,stit!tion ,e'a-ior5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 72

Role of sales promotions in FMCG sector

T!* L"'7 *r& I&-a. ", Pr"&" %"'(0

Strate"ies are ,!il)s to reap t'e ,enefits for lon"er perio) of time? same is tr!e in sales promotion strate"ies5 et !s see impact of promotions effort an) st!)( t'e impact o-er a lon"er time perio) e5"5 =1B mont's or e-en a fe4 (ears after a sales promotion campai"n5 T'e res!lt s'o4e) t'at cons!mer promotions for lea)in" ,ran)s of esta,lis'e) pac$a"e) pro)!cts 'a) no after1effects on t'e ,ran)As sales or repeat ,!(in" lo(alt(5 T'e e;tra sales of a ,ran) 4'ile promote) came -irt!all( all from t'e ,ran)As e;istin" lon"1term c!stomer ,ase for 4'ic' t'e e;perience of ,!(in" t'e promote) ,ran) 4as not'in" ne45 It is fo!n) t'at alt'o!"' t'e s'ort term effects of promotions are stron"? t'ese promotions rarel( e;'i,it lon" term effects5 It is o,ser-e) t'at eac' sales component "enerall( lac$e) a permanent effect an) t'e effect of promotion 4as s'ort li-e) an) increase in promotions affecte) cons!mersA stoc$pilin" )ecisions in t'e lon" r!n5 T'e( fo!n) t'at t'e com,ine) s'ort an) lon"1term elasticit( of promotions 4as 8ero5 T'e stoc$pilin" in)!ce) ,( a promotion 4as essentiall( offset ,( re)!ce) )eman) in t'e lon" term5 T'!s increase) sales 4ere more a res!lt of sales ,orro4e) from t'e f!t!re t'an increase) cons!mption

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7&

Role of sales promotions in FMCG sector

S5OT A'a+$(%( ", FMCG S*. "r

Strengths:

>ell1esta,lis'e) )istri,!tion net4or$ e;ten)in" to r!ral areas5 Stron" ,ran)s in t'e FMCG sector5 o4 cost operations5

Weaknesses:

o4 e;port le-els5 Small1scale sector reser-ations limit a,ilit( to in-est in tec'nolo"( an) ac'ie-e economies of scale5 Se-eral Pme1tooAA pro)!cts5

Opportunities:

ar"e )omestic mar$et5 E;port potential5 Increasin" income le-els 4ill res!lt in faster re-en!e "ro4t'55

Threats:

Imports5 Ta; an) re"!lator( str!ct!re5 Slo4)o4n in r!ral )eman)5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 77

Role of sales promotions in FMCG sector

D*T* *<* YSIS

(C"'()&*r()

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7=

Role of sales promotions in FMCG sector

@1. 5!%.! ?ra'# ", S"a- 2 D* *r7*' #" $") )(*F

Ba !%'7 G("a-( !; Famm ife,!o( <ima Ot'ers R*(-"'#*' ( =2 7 2= C 7=

Ba !%'7 ("a-(
50 40 30 20 10 0 Respondents Lux 41 Hamam 3 Lifebuoy 14 Nima 8 Others 34

I' *r-r* a %"'0

T'e a,o-e 3!estion 'as ,een forme) to $no4 t'e soaps an) )eter"ents at t'e top of t'e min) of t'e c!stomers5 It s'o4s t'ose cons!mersA p!rc'ase an) !se of t'at partic!lar ,ran)5 It 4ill 'elp to t'e compan( to $no4 t'e mar$et scenario an) t'e ma.or ,ran)s in t'e mar$et5 Form t'e a,o-e res!lt it is clear t'at o!t of 2// c!stomers more t'an =/ are cons!mers are 'a-in" t'e same ,ran) as t'e ima"e in t'eir min)+ 4'ereas ot'ers cate"or( is also s'o4in" t'e 'i"'er "rap' t'an t'ese 7 ma.or pla(ers #Famam+ ife,!o(+ <ima%5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7@

Role of sales promotions in FMCG sector

D* *r7*' -"C#*r <irma s!pper >'eel S!rf *riel Ot'ers

R*(-"'#*' ( 20 2= 7@ 2C 2=

D* *r7*' P"C#*r
40 35 30 25 20 15 10 5 0 Respondents Nirma sup 19 hee! 14 "urf 35 #rie! 18 Othres 14

I' *r-r* a %"'0

Form t'e a,o-e res!lt it is clear t'at o!t of 2// c!stomers 7@ are p!rc'asin" t'e same ,ran) of )eter"ent+ 4'ereas all ot'ers are on same le-el5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7B

Role of sales promotions in FMCG sector

@2. D" $") a+Ca$( ?)$ !* (a&* ?ra'# ", S"a- 2 D* *r7*' F
Par %.)+ar( Yes <o R*(-"'#*' ( @B ==

Bra'# +"$a+
$0 50 40 30 20 10 0 Respondents %es 5$ No 44

I' *r-r* a %"'0 T'e o,.ecti-e ,e'in) t'e formation of t'is 3!estion is to $no4 t'e le-el of ,ran) lo(alt( of t'e cons!mers to4ar)s t'e ,ran)s of soaps a-aila,le in t'e mar$et5 T'e a,o-e fi"!re s'o4s t'at on @BK of t'e respon)ents are lo(al to t'eir ,ran)s of )eter"entHsoap5 FMCG are s!c' a mar$et 4'ere t'e le-el of lo(alt( remains lo4 an) t'is is ,eca!se of man( reasons5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7D

Role of sales promotions in FMCG sector

@;. 5!%.! ,a. "r( #" $") '"r&a++$ ."'(%#*r C!%+* -)r.!a(%'7 a -ar %.)+ar ?ra'# ", S"a- 2 D* *r7*' (F
Fa. "r( Fra"rance J!alit( Compan( ima"e Price Pac$a"in" Ot'ers Ba !%'7 ("a20 77 2B &7 B 7 D* .-"C#*r 2C 7B 27 20 22 7

Fa. "r( a,,*. %'7 -)r.!a(* ?*!a9%"r

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' *r-r* a %"'0

T'e o,.ecti-e ,e'in) t'is 3!estion is to $no4 t'e effect of infl!encin" factors in t'e p!rc'ase )ecision of t'e soaps an) )eter"ent po4)ers5 It mainl( contains t'e factors li$e+ 3!alit( 4'ic' pla(ers an important role in t'e p!rc'ase )ecision of t'e soaps an) )eter"ents ,ot'5 If 4e loo$ at t'e "rap' of t'e soaps an) )eter"ent it s'o4s 3!alit( as t'e

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 7C

Role of sales promotions in FMCG sector most infl!encin" factors in t'e p!rc'ase )ecision 4'ile price is also an important for p!rc'ase )ecision5

@4. D" $") ."'(%#*r -r"&" %"'a+ (.!*&*( C!%+* -)r.!a(%'7 a -ar %.)+ar ?ra'# ", S"a- 2 D* *r7*' F
F/: Gen)er is in)epen)ent of promotional sc'eme F2: Gen)er is )epen)ent of promotional sc'eme >e 4ill !se C'i1S3!are test to test t'e a,o-e '(pot'esis5 T'e o,ser-e) fre3!encies are Da a0 C"' %'7*'.$ Ta?+*0D Respon)ent Yes <o Total Male &7 =@ BC Female 2/ && 7& Total 77 BD 2//

T'e e;pecte) fre3!encies are calc!late) !sin" Ei. Q #ro4 i total%#col!mn . total% < E8-*. *#0 C"' %'7*'.$ Ta?+* Respon)ent Yes <o Male &&5= =@5B Female 2/5B &25=

& T'e test statistics =

(f/ fe ) &
fe

4'ere fo: O,ser-e) fre3!encies an) fe: E;pecte)

fre3!encies5 T'erefore+
& =

( &7 &&5=) &

&&5= = /5/D=

(2/ 2/5B) &

2/5B

( =@ =@5B) &
=@5B

#&& &25=% & &25=

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% 70

Role of sales promotions in FMCG sector *ss!min" RQ /5/@+ 4e 'a-e from c'i1s3!are ta,le+ 2& #/5/@% = 75C= 5 Since t'e o,ser-e) -al!e of c'i1s3!are /5/D= is less t'an t'e critical -al!e of c'i s3!are 75C= t'e n!ll '(pot'esis is not re.ecte)5 Concl!sionI55

@5. 5!%.! ", !* ,"++"C%'7 -r"&" %"'a+ (.!*&*( $") !a9* ."&* a.r"(( (" ,arF
Pr"&" %"'a+ (.!*&*( Co!pons price off Free,ies scratc' car)s l!c$( )ra4 B!n)lin" e;tra 3t(5 R*(-"'#*' ( 2B C= &= 2& 0 72 ==

Fa&%+%ar% $ ", -r"&" %"'a+ S.!*&*(

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 1ty) 44

I' *r-r* a %"'0

T'e a,o-e state) 3!estion clearl( states t'e a4areness of promotional sc'emes offere) in t'e mar$et ,( t'e mar$eters to attract more an) more cons!mers5 T'e res!lts s'o4 t'at price off an) e;tra 3!antit( is t'e t4o main offersHsc'emes 4'ic' cons!mers 'a-e

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =/

Role of sales promotions in FMCG sector came across at t'e time of p!rc'ase5 It 4ill 'elp t'e man!fact!rers an) mar$eters too 'o4 too la!nc' t'eir ne4 pro)!cts in t'e mar$et 4it' 4'ic' sc'emes5

@<. 5!%.! &*#%)& #" $") ,**+ %( ()% a?+* " -r"&" * !* 9ar%")( -r"&" %"'a+ (.!*&*(F
S")r.* Ra)io TM <e4spaper Foar)in" Ot'ers R*(-"'#*' ( 22 B0 =7 2@ 2&

M*#%)&( " -r"&" * !* -r"&" %"'a+ (.!*&*(

80 $0 40 20 0 Respondents

Radio 11

23 $9

Ne*s)ppr 43

Hoardin' 15

Others 12

I' *r-r* a %"':

T'is 3!estion "i-es stress on t'e me)ia 'a,it of t'e people an) t'ro!"' 4'ic' t'e pro)!ct s'o!l) ,e la!nc' or t'e( t'in$ it 4o!l) ,e ,etter t'an ot'er Me)ias5 T'e a,o-e res!lt s'o4s TM as t'e ,est me)ia to mar$et t'e pro)!ct 4'ic' 4ill co-er ma.orit( of Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =2

Role of sales promotions in FMCG sector t'e -ie4er s'ip5 On t'e secon) place it s'o4s ne4s papers as t'e me)ia to promote t'e pro)!ct in t'e mar$et5

@=. I( !*r* a'$ *8%( %'7 (.!*&* "' !* S"a- 2 D* *r7*' $") ar* .)rr*' +$ )(%'7F
Par %.)+ar( Yes <o R*(-"'#*' ( @C =&

E8%( %'7 (.!*&* "' !* S"a- 2 D* *r7*'

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

I' *r-r* a %"'0 T'e ans4er of t'e respon)ents "i-e i)ea a,o!t t'e a4areness of t'e promotional sc'emes offere) in t'e mar$et on t'eir e;istin" soaps an) )eter"ents5 In t'is sit!ation more t'en =/K of t'e people are not a4are or 'a-in" -a"!e i)ea a,o!t t'e promotional sc'emes r!nnin" into t'e mar$et5 It s'o4s t'at people are not m!c' a4are of t'e Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =&

Role of sales promotions in FMCG sector sc'emes 4'ic' contin!e in t'e mar$et it ma( ,e ,eca!se of t'e present stoc$ of t'e pro)!ct at t'eir place5

@1. I, $*(H -+*a(* (-*.%,$F

Par %.)+ar( 7S2HOt'er Free Disco!nt <o i)ea <o ans4er R*(-"'#*' ( 7B && B 7B

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

I' *r-r* a %"'0

T'is 3!estion s!pports t'e a,o-e 3!estion5 It enlists t'e ans4ers of t'ose c!stomers 4'o are a4are of t'e present sc'emes offere) in t'e mar$et an) also t'ose sc'emes Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =7

Role of sales promotions in FMCG sector 4'ic' are more )eman)e) in t'e mar$et5 T'e res!lt s'o4s t'at 2S2 or &S2 or ot'er free sc'emes are more )eman)e) an) more a4are sc'emes in t'e mar$et5 So man!fact!rers ma( "o for t'e same at t'e time of la!nc'in" t'eir pro)!ct5

@>. I, $") 7* a' a ra. %9* -r"&" %"'a+ ",,*r %' !* -r"#). " !*r !*' ", $")r .!"%.* C%++ $") (C% .! "9*rF
Par %.)+ar( Yes <o R*(-"'#*' ( D7 &D

SC% .!%'7 ?*!a9%"r

80 40 $0 50 40 30 20 10 0 Respondents %es 43 No 24

I' *r-r* a %"'0

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% ==

Role of sales promotions in FMCG sector It s'o4s t'e le-el of ,ran) lo(alt( amon" t'e cons!mers5 T'e res!lt clearl( s'o4s t'at o!t of 2//+ D7 people are rea)( to s4itc' o-er to anot'er ,ran) if t'e( fin) ,etter promotional sc'emes 4'ic' s!its t'eir ,!)"et means more 3(t S less cost S 3!alit(5 Com,ination of all t'ese sc'emes 4ill r!n ,etter in t'e mar$et5

@13. G%9* r*a("' ,"r !* (a&*F

Par %.)+ar( CostS3t( J!alit( Satisfaction Bran) lo(al More ,enefitH,!)"et Season c'an"e <o ans4er R*(-"'#*' ( 2B 2D & @ && & 7B

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =@

Role of sales promotions in FMCG sector

R*a("'
40 30 20 10 0 .ost51ty Respondents 1$ -ua!ity 14 Satisfaction &rand !oya! 2 5

7ore &enefit6bud 22

"eason ,han'e 2

No ans*er 3$

I' *r-r* a %"'0

*,o-e 3!estion it "i-es specific reasons for s4itc'in" too ot'er pro)!cts5 It s'o4s t'at e;tra 3!antit( 4it' less or same price+ more satisfaction+ 3!alit( an) ot'er factors infl!ence cons!mers to s4itc' o-er too ot'er ,ran)s5

@11. G%9* ()77*( %"'( a?") ,) )r%( %. -r"&" %"'a+ (.!*&*(F

T'is s'o4 t'e cons!mersA f!t!re e;pectations from t'e 4'et'er compan( to come 4it' ne4 sc'emes or contin!e 4it' present one5 It s'o4s cons!mers )eman) 4'ic' t'e man!fact!rers 'a-e to meet5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =B

Role of sales promotions in FMCG sector

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =D

Role of sales promotions in FMCG sector

D*T* *<* YSIS

(R* a%+*r()

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =C

Role of sales promotions in FMCG sector

@1. S%'.* !"C +"'7 ar* $") %' !%( ?)(%'*((F

Par %.)+ar( 21@ Years @12/ Years More t'an 2/ (ears R*(-"'#*' ( &= &D =0

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

I' *r-r* a %"'0

T'is 3!estion "i-es i)ea a,o!t t'e ,enefit to t'e retailers 4'o are on t'e mar$et from lon" perio) of time an) t'e ,enefits t'e( are "ettin" more as compare to ot'ers5 It also s'o4s t'eir e;perience in t'e fiel) an) t'e ser-ices t'e( are pro-i)in" too t'eir ne4 an) re"!lar c!stomers5 It also "i-es i)ea a,o!t t'e ,enefits t'e( are "ainin" for 4'olesalers an) )irect from t'e compan(5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% =0

Role of sales promotions in FMCG sector

@2. Na&* !* S"a- 2 D* *r7*' (C"&-a'$) $") ( ".A ,"r.

C"&-a'%*( <irma FU PTG Go)re. Ot'ers R*(-"'#*' ( 0B 2// 0/ 0= BC

S"a- 2 D* *r7*' %' ( ".A

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

I' *r-r* a %"'0

It "i-es i)ea a,o!t t'e capacit( of t'e retailers to stoc$ t'e "oo)s an) also t'e -ariet( of t'e pro)!cts t'e( are stoc$in"5 It 4ill also ma$e clear t'e )eman) of t'e "oo)s in t'eir stores an) t'e sellin" of t'e pro)!ct in mar$et5 Most of t'e retailer stoc$s all t(pes of soap an) )eter"ent5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @/

Role of sales promotions in FMCG sector

@;. Ra'A !* ,"++"C%'7 ,a. "r( !a .)( "&*r( +""A ,"r %' !* -)r.!a(* ", S"a- 2 D* *r7*' . (Ra'A ,r"& 1 " <)
Factors Fra"rance J!alit( Compan( Ima"e Price Pac$a"in" Ot'ers 2 7 BB 0 2D = 2 & &= &7 2C &C @ & 7 77 D 7= &= & / = && 7 &= 2B &D C @ 2/ 2 22 B 7C 7= B C / = 0 &= @@

Ba !%'7 S"a40 $0 50 40 30 20 10 0 +ra'ran,e -ua!ity .ompany =ma'e /ri,e /a,0a'in' Others 1 3 $$ 9 14 4 1 2 24 23 18 28 5 2 3 33 4 34 24 2 0 4 22 3 24 1$ 24 8 5 10 1 11 $ 38 34 $ 8 0 4 9 24 55

I' *r-r* a %"'0 It "i-es an i)ea a,o!t t'e priorit( t'e infl!encin" factors too t'e cons!mers an) also t'e 4ei"'t a"e of t'at factor o-er ot'er factors5 In t'e a,o-e res!lt people are more 3!alit( Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @2

Role of sales promotions in FMCG sector an) price oriente)5 On t'e ot'er 'an) people are also conscio!s a,o!t t'e compan( ima"e5 Beca!se sometimes t'e cons!mer remem,er t'at name of t'e pro)!ct ,( t'e compan(

name an) also from t'e past performance of t'at compan(5 Fra"rance an) pac$a"in" are not infl!encin" factor as per t'e respon)ents5

Fa. "r(
Fra7ra'.* @)a+% $ C"&-a'$ I&a7* Pr%.* Pa.Aa7%'7 O !*r(

1
22 =7 27 &D B /

2 14 34 2B 28 5 0

3 41 1$ &D 14 2 0

4 21 $ &B 9 33 5

5 4 1 22 $ 43 32

6 3 0 D 1$ 11 $3

D* *r7*'
40 $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 24 $ 0 2 14 34 1$ 28 5 0 3 41 1$ 24 14 2 0 4 21 $ 2$ 9 33 5 5 4 1 11 $ 43 32 $ 3 0 4 1$ 11 $3

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @&

Role of sales promotions in FMCG sector

I' *r-r* a %"' 0

It "i-es an i)ea a,o!t t'e priorit( t'e infl!encin" factors too t'e cons!mers an) also t'e 4ei"'t a"e of t'at factor o-er ot'er factors5 In t'e a,o-e res!lt people are more 3!alit( an) price oriente)5 On t'e ot'er 'an) people are also conscio!s a,o!t t'e compan( ima"e5 Beca!se sometimes t'e cons!mer remem,ers t'at name of t'e pro)!ct ,( t'e compan( name an) also from t'e past performance of t'at compan(5 Fra"rance an) pac$a"in" are also pla( important role for p!rc'asin" )eter"ent po4)er5

@4. D" $") ()77*( .)( "&*r( " -)r.!a(* a .*r a%' ?ra'#F
Par %.)+ar Yes <o R*(-"'#*' ( 77 BD

S)77*( %"'
80 40 $0 50 40 30 20 10 0 "eries1 %es 33 No $4

I' *r-r* a %"'0

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @7

Role of sales promotions in FMCG sector T'is co!l) ,e a -er( 'elp 3!estion to !n)erstan) t'e role of retailers in t'e p!rc'ase )ecision5 In a,o-e "rap' BDK of retailer are not s!""est to p!rc'ase partic!lar ,ran) ,eca!se of personal relation or t'at c!stomer are ,ran) lo(al 4'ile 77K of t'e retailer are s!""estin" t'e cons!mers to ,!( partic!lar ,ran)5 T'ere co!l) ,e man( reasons li$e+ e;tra mar"in+ relations 4it' cons!mers an) 3!alit( of t'e pro)!cts 4'ic' retailer ma( "et t'e ,enefit of t'e same5

@5. I, Y*( C!$F

Par %.)+ar Fi"' mar"in J!alit( Relations'ip <o reason R*(-"'#*' ( 0 2D D BD

I, $*(
80 40 $0 50 40 30 20 10 0 Respondents Hi'h mar'in 9 -ua!ity 14 Re!ationship 4 No reason $4

I' *r-r* a %"'0

It "i-es i)ea a,o!t t'e reasons 4'( retailers s!""est t'e cons!mers to ,!( partic!lar ,ran)5 In a,o-e "rap' an) ta,le it is clear t'at for mar"in an) of ,etter relations 4it' cons!mers an) too pro-i)e 3!alit( pro)!ct to cons!mers t'e( s!""est cons!mers too Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @=

Role of sales promotions in FMCG sector ,(e partic!lar ,ran)5 For t'e compan( it ma( ,e 'elpf!l to tar"et s!c' retailers to sell t'eir pro)!ct in t'e mar$et easil(5

@<. D" .)( "&*r( +""A ,"r 9ar%")( (.!*&*( %' !* -r"#). F
Par %.)+ar Yes <o R*(-"'#*' ( 0& C

C)( "&*r( +""A ,"r 9ar%")( (.!*&*(

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

I' *r-r* a %"'0

T'is "i-es a real 'elpf!l )ata for c'ec$in" t'e effect of sales promotions in t'e mar$et an) 'o4 serio!sl( cons!mers follo4 t'e promotions ,efore t'e( "o for p!rc'ase partic!lar ,ran)5 T'e a,o-e res!lt s'o4s t'at onl( C o!t /f 2// )i)nAt "o for t'e promotion ot'er4ise all are loo$in" for an( t(pe of t'e promotions on t'e pro)!ct5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"%

@@

Role of sales promotions in FMCG sector

@=. I, $*( C!%.! (.!*&*(F

Pr"&" %"'a+ S.!*&*( Co!pons Price Off Free,ies Scratc' Car)s !c$( Dra4s B!n)lin" Offer E;tra J!antit( R*(-"'#*' (

22 C& 7@ & 20 B@ D0

5!%.! (.!*&*(
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 49

I' *r-r* a %"'0

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @B

Role of sales promotions in FMCG sector T'e a,o-e state) res!lts s'o4 t'e )eman) of -ario!s t(pes of promotional sc'emes in t'e mar$et ,( t'e cons!mers5 *lmost all t(pes of sc'emes are ,ein" )eman)e) ,( t'e cons!mers in t'e mar$et ,!t t'ere are t'ree ma.or sc'emes 4'ic' cons!mers "enerall( loo$ at t'e time of p!rc'ase or ,efore t'at5 Price off+ pro)!ct ,!n)lin" an) e;tra 3!antit( are more )eman)e) ,( t'e cons!mers o-er ot'ers sc'emes5

@1. 5!%.! Tra#* Pr"&" %"'( #" 9ar%")( ."&-a'%*( ",,*rF

NIRMA
Pr"&" %"'( E;tra Mar"in E;tra Units cre)it facilit( Gifts Promo5 E;p5 R*(-"'#*' ( =B 7= @@ &= C

Tra#* Pr"&" %"'( ?$ N%r&a

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

I' *r-r* a %"'0

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @D

Role of sales promotions in FMCG sector From t'e a,o-e "rap' s'o4s t'e tra)e promotions offere) ,( t'e <IRM* t) to t'e retailers to attract t'em to4ar)s stoc$in" t'eir "oo)s an) also stop t'em s4itc'in" t'em too ot'er ma.or pla(ers in t'e mar$et5 <IRM* is mainl( offerin" cre)it facilit( 4'ic' is offere) ,( all ma.or pla(ers it ma( )iffer in t'e time limit of t'e cre)it5 It is also pro-i)in" e;tra mar"in+ an) !nits 4it' occasional "ift 4it' t'eir sc'emes5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @C

Role of sales promotions in FMCG sector HUL

Pr"&" %"'( E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5 R*(-"'#*' ( =D 7= @C &@ &&

Tra#* Pr"&" %"'( ?$ HUL

40 $0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 44 >xtra 9nits 34 .redit fa,i!ity 58 ;ifts 25 /romo) >xp) 22

I' *r-r* a %"'0

T'e a)-anta"e of F o-er <IRM* is t'at it ,are promotional e;penses 4'ic' <IRM*

is not )oin"5 It attracts more cons!mers t'ro!"' s!c' promotions+ s!c' as )ispla( of t'e pro)!ct+ ,anners etc5 So t'is ma( 'elp it to attract more retailers5 It ma( ,eca!se of its less cost of pro)!ction in ot'er se"ments in 4'ic' nirma is not operatin"5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% @0

Role of sales promotions in FMCG sector

PIG
Pr"&" %"'( E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5 R*(-"'#*' ( =/ 77 @@ &/ 2&

Tra#* Pr"&" %"'( ?$ PIG

$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' *r-r* a %"'0 PTG is also a ,i" pla(er in t'e FMCG mar$et5 It is also pro-i)in" all t'e facilities 4'ic' ot'ers are pro-i)in" to retailers5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B/

Role of sales promotions in FMCG sector

GODRE6
Pr"&" %"'( E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5 R*(-"'#*' ( =B 7& @D 20 2C

Tra#* Pr"&" %"'( ?$ G"#r*/

$0 50 40 30 20 10 0 "eries1 >xtra 7ar'in 4$ >xtra 9nits 32 .redit fa,i!ity 54 ;ifts 19 /romo) >xp) 18

I' *r-r* a %"'0

Go)re. is a ,i" pla(er in t'e FMCG mar$et5 It is also pro-i)in" all t'e facilities 4'ic' ot'ers are pro-i)in" to retailers5 B!t it is lac$in" in ,earin" e;penses 4'ic' FU pro-i)in" to ma;im!m n!m,er of retailers5 is

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B2

Role of sales promotions in FMCG sector

OTHERS
Pr"&" %"'( E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5 R*(-"'#*' ( 7/ 2C 7C 2@ D

Tra#* Pr"&" %"'( ?$ O !*r(

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) 4

I' *r-r* a %"'0

Ot'ers incl!)e local pla(ers+ as 4ell as 4e esta,lis'e) pla(ers li$e+ 4ipro ,!t t'eir pro)!cts are not in )eman) li$e ot'er pla(ers ,!t still t'e( are pro-i)in" all t'e facilities to retailers to attract to4ar)s stoc$in" t'eir pro)!cts5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B&

Role of sales promotions in FMCG sector H$-" !*(%( *( %'7 F/: Effect of tra)e promotions for all fo!r ,ran)s is similar5 F2: Effect of tra)e promotions for all fo!r ,ran)s is not similar5 GODREJ <IRM* E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5 Ra'A Ta?+* 2=5@ 0 2C = 7 Total =C5@ Sample @ Si8e Usin" 6r!s$al 1 >allis test+ 6 = 2=5@ 225@ 2D D 2 @2 @ 2B 225@ 20 C B B/5@ @ 27 2/ 2@ @ & =@ @ =B 7& @D 20 2C =B 7= @@ &= C FU =D 7= @C &@ && PTG =/ 77 @@ &/ 2&

= T& 2& . n#n + 2% .=2 n.

7#n + 2% = 1&5&0 5 For R Q /5/@ an)

)f Q =12Q7+ t'e critical -al!e Q D5C2=D #from ta,le%5 C"'.+)(%"'0D Fere 6 Q 1&5&0 is less t'an t'e critical -al!e of c'i1s3!are Q D5C2=D+ so 4e )o not re.ect t'e n!ll '(pot'esis5 Concl!sionII

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B7

Role of sales promotions in FMCG sector @> G%9* r*a("'( ,"r '" ( ".A%'7 a -ar %.)+ar ?ra'#. Retailer stoc$s all t(pes of soap an) )eter"ent ,eca!se of competition5

@13 A'$ S)77*( %"'(. Retailer s!""este) t'at pac$a"in" s'o!l) ,e f!rt'er impro-e) an) !se) as promotional tool+ to enco!ra"e sales )!rin" certain perio)s t'e compan( s'o!l) pro-i)e price off or e;tra 3!antit( ,eca!se t'at infl!ences )irectl( to t'e cons!mer5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B=

Role of sales promotions in FMCG sector

F%'#%'7( ", !* r*-"r 0

Sales Promotion+ a s'ort1term in)!cement+ offere) to a cons!mer or tra)e 'as "aine) moment!m as a promotional tool 4orl) o-er5 It represents nearl( t'ree fo!rt' of t'e mar$etin" ,!)"et at most cons!mer pro)!ct companies5 Sales promotions can en'ance cons!mersA self1perception of ,ein" 9smart: or a 9"oo): s'opper FMCG are s!c' a mar$et 4'ere t'e le-el of lo(alt( remains lo4 an) t'is is ,eca!se of man( reasons5 J!alit( as t'e most infl!encin" factors in t'e p!rc'ase )ecision 4'ile price is also an important for p!rc'ase )ecision5 Sc'emes al4a(s attract more an) more cons!mers to4ar)s partic!lar ,ran)5 Sim!ltaneo!sl( it "i-es i)ea a,o!t t'e factors 4'ic' cons!mers loo$ most in t'e pro)!ct ,efore t'e( ma$e final )ecision Price off an) e;tra 3!antit( is t'e t4o main offersHsc'emes 4'ic' cons!mers 'a-e came across at t'e time of p!rc'ase TM as t'e ,est me)ia to mar$et t'e pro)!ct 4'ic' 4ill co-er ma.orit( of t'e -ie4er s'ip5 On t'e secon) place it s'o4s ne4s papers as t'e me)ia to promote t'e pro)!ct in t'e mar$et People are not m!c' a4are of t'e sc'emes 4'ic' contin!e in t'e mar$et it ma( ,e ,eca!se of t'e present stoc$ of t'e pro)!ct at t'eir place5 2S2 or &S2 or ot'er free sc'emes are more )eman)e) an) more a4are sc'emes in t'e mar$et5 People are rea)( to s4itc' o-er to anot'er ,ran) if t'e( fin) ,etter promotional sc'emes 4'ic' s!its t'eir ,!)"et means more 3!antit( S less cost S 3!alit(5 E;tra 3!antit( 4it' less or same price+ more satisfaction+ 3!alit( an) ot'er factors infl!ence cons!mers to s4itc' o-er too ot'er ,ran)s5 Retailer stoc$s all t(pes of soap an) )eter"ent ,eca!se of competition5 People are more 3!alit( an) price oriente)5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B@

Role of sales promotions in FMCG sector

Cons!mer remem,er t'at name of t'e pro)!ct ,( t'e compan( name an) also from t'e past performance of t'at compan( Cons!mer remem,ers t'at name of t'e pro)!ct ,( t'e compan( name an) also from t'e past performance of t'at compan( Retailers are not s!""est to p!rc'ase partic!lar ,ran) ,eca!se of personal relation or t'at c!stomer are ,ran) lo(al Mar"in an) of ,etter relations 4it' cons!mers an) too pro-i)e 3!alit( pro)!ct to cons!mers t'e( s!""est cons!mers too ,(e partic!lar ,ran)5 C!stomers are loo$in" for an( t(pe of t'e promotions on t'e pro)!ct ,efore t'em "oin" to p!rc'ase5 Price off+ pro)!ct ,!n)lin" an) e;tra 3!antit( are more )eman)e) ,( t'e cons!mers o-er ot'ers sc'emes5 <IRM* is mainl( offerin" cre)it facilit( 4'ic' is offere) ,( all ma.or pla(ers it ma( )iffer in t'e time limit of t'e cre)it5 FU attracts more cons!mers t'ro!"' s!c' promotions+ s!c' as )ispla( of t'e pro)!ct+ ,anners etc5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% BB

Role of sales promotions in FMCG sector

R*."&&*'#a %"'0
T'e fin)in"s of t'e empirical st!)( in)icate t'at !nless t'e ,ran) to ,e promote) is in t'e consi)eration set of t'e cons!mer+ sales promotion ,( itself is !nli$el( to 'a-e an( ma.or impact5 Clearl( t'is s'o4s t'at mana"ers nee) to in-est into ,ran) ,!il)in" e;ercise so t'at 'isH'er ,ran) appears in t'e consi)eration set of t'e tar"et cons!mers5 Onl( after t'is s'o!l) 'e spen) time+ mone( an) ener"( on sales promotion acti-ities5 Sales promotion s'o!l) not ,e !se) in isolation ,!t nee) to ,e inte"rate) 4it' ot'er tools an) in line 4it' t'e o-erall positionin" of t'e ,ran)5 *lso t'e importance of t'e role of mass me)ia came o!t clearl( in t'e st!)(5 Companies nee) to create s!fficient a4areness a,o!t sales promotion sc'emes t'ro!"' mass me)ia in or)er to create a4areness5 FMCG pro)!cts are lo4 in-ol-ement pro)!cts c'aracteri8e) ,( s4itc'in" ,e'a-ior5 *lso t'e person "oin" to t'e s'op for t'e p!rc'ase of soap is t'e final )ecision ma$er of t'e ,ran)5 Fence it is essential t'at companies nee) to )esi"n attracti-e+ stri$in"+ -isi,le POPs for sc'eme anno!ncements5 >it' respect to nat!re of sc'eme+ t'e fin)in" s!""este) t'at premi!m #free "ift% 4as pop!lar 4it' companies5 >'ile ,ot' retailers an) cons!mers preferre) price offs5 So it is necessar( t'at t'e percei-e) -al!e of a free "ift 'as to ,e appealin" an) 'i"' for t'e tar"et cons!mers5 Repetiti-e !se of t'e same premi!m for a prolon"e) perio) ma( 'a-e ne"ati-e effect on t'e lo(al c!stomers5 >'en t'e compan( is "i-in" its o4n pro)!ct free as premi!m+ it nee)s to ens!re t'e 3!alit( of t'e pro)!ct from it as it is li$el( to .eopar)i8e t'e ima"e of ,ot' its pro)!cts5 T'e fin)in"s e;'i,ite) t'at ,ot' t'e retailers an) cons!mers percei-e) t'at sales promotion acti-ities carrie) o!t ,( t'e companies for increasin" sales in s'ort term an) clearin" e;cess stoc$s5 >'at it implies is t'at companies nee) to !se sales promotion

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% BD

Role of sales promotions in FMCG sector

s(ner"isticall( an) comm!nicate so t'at t'e( pro-i)e -al!e to t'e tar"et a!)ience an) en'ance ,ran) 3!alit(Hima"e perceptions5 Companies nee) to s(stemati8e information flo4 re"ar)in" sales promotion acti-ities partic!larl( at )ealer an) retailer le-el5 Ens!rin" proper information flo4 an) )e-isin" c'ec$s an) meas!res to re)!ce misappropriations an) implementation flo4s s'o!l) ,e consi)ere) critical aspects for t'e s!ccess of sales promotion acti-ities ,( t'e companies5 *s retailin" is fra"mente)+ )irect reac' ,( companies is ne;t to impossi,le5 T'ro!"' )ealers an) proper fee),ac$ mec'anism+ companies $eep in to!c' 4it' t'e mar$et5 From t'e st!)( it 4as fo!n) t'at smaller retailers felt ne"lecte) an) not ent'!se) to implement t'e sc'emes+ partic!larl( 4'en a))itional 'an)lin"+ stoc$in"+ acco!ntin" 4as re3!ire) on t'e part of a retailer 4it'o!t compensator( mar"ins5 It can ,e seen t'at t'e retailer an) cons!mer perceptions matc'e) 4it' respect to preferences of sc'emes+ !n)erl(in" moti-ations an) role of mass me)ia5 T'is implies t'at t'e retailer 4o!l) ,e a ric' so!rce of information a,o!t t'e cons!mer an) t'e li$el( response to sales promotion acti-ities5 De-elopin" a s(stem to tap s!c' responses from time to time ,ot' at retailer an) cons!mer le-el 4o!l) ,e 'elpf!l for plannin" f!t!re sales promotion acti-ities5 In or)er to ,!il) tr!st an) commitment companies s'o!l) tap preferences+ perceptions of retailers as 4ell as cons!mers5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% BC

Role of sales promotions in FMCG sector

L%&% a %"'( ", !* ( )#$

>e consi)ere) *'me)a,a) re"ion onl( ,eca!se of limite) time )!ration5

D!e to t'is+ o!r sample si8e is onl( 2//+ 4'ic' is not -er( lar"e5

*ll t'e respon)ents co!l) not fill t'eir 3!estionnaire on t'eir o4n )!e to lan"!a"e pro,lem an) also pro,lem of time an) lac$ of positi-e ,e'a-ior5

Respon)ent ma( "i-e ,iase) ans4er )!e to some lac$ of information a,o!t ot'er ,ran)s5

Fin)in"s of t'e st!)( are ,ase) on t'e ass!mption t'at t'e respon)ents 'a-e "i-en correct information5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% B0

Role of sales promotions in FMCG sector

E&*r7%'7 Tr*'#(
So far as FMCG mar$et is concern t'ere is ne4 tren) is emer"in" $no4n as .oint sales promotion5 *ct!all( it is ol) concept ,!t it 4as more pre-ailin" in )!ra,le pro)!cts no4 it is comin" intro non )!ra,le "oo)s also5 >'en an( sales promotion sc'eme eit'er for tra)e or cons!mer is anno!nce) ,( more t'an one compan( an) Hor more t'an one ,ran) of t'e same compan(+ it is referre) as .oint sales promotion or 'ori8ontal co1operati-e sales promotion or cross promotion or !m,rella sales promotion5

C+a((%,%.a %"' ", /"%' (a+*( -r"&" %"'0

Use complementaril( )!e to nat!ral !se <e4 !se caterin" complementar( relations'ips Commonalit( of nee) )!e to !se time Tie1!p of a ne4 Hslo4 mo-in" ,ran) 4it' an esta,lis'e) ,ran) Tar"et mar$et commonalit( Seasonal )eman) Distri,!tion commonalit( Tar"etin" ne4 se"ment Deri-e) )eman) Co!nterin" competiti-e .oint sales promotions

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D/

Role of sales promotions in FMCG sector

C"'.+)(%"' ", !* S)r9*$

T'e st!)( reflects t'at t'e !se of sales promotion !n)enia,l( 'as increase) o-er t'e (ears in In)ia5 F!t!re 'ol)s lot of promise for s!c' sc'emes across 4i)er ran"e of pro)!ct1mar$ets5 Sales Promotion 'as cease) to ,e ma.or )ifferentiator at least in t'e metros+ 4it' almost all companies offerin" similar free,ies an) "ifts5 *s a res!lt no4 mar$eters 'a-e to fin) o!t some inno-ati-e 4a(s of sales promotion to )ifferentiate from competitors5 C!rrentl( Price off an) B(e one "et one free offers are -er( effecti-e to attract t'e cons!mers to4ar)s t'e pro)!cts5 >e 'a-e note) t'at t'ese $in) of promotional tools are !sef!l for s'ort term increase in sales an) to in)!ce first trial5 T'ese t(pes of promotional sc'emes s'o!l) ,e consistent an) c'an"e) from time to time )epen)in" !pon season an) competitorAs sc'emes5 >it' t'e Increasin" n!m,er of s!permar$et+ t'e ,ran)e) pac$a"e) "oo)s 4or$ as silent sales person5 So in s!c' stores+ sales promotion pla(s a more effecti-e role in stim!latin" cons!mersA )eman)s5 One of t'e -er( important facts 4e came to $no4 from t'is pro.ect is t'at sale of "oo)s 4'ic' contain lar"e 3!antit( an) 'a-in" ,i" pac$a"in" e5"5 )eter"ent are sta"natin" ,eca!se cons!mer prefer to ,!( small pac$ "oo)s+ t'e reasons are: small pac$ "oo)s re)!ce ris$ of ,a) 3!alit(+ It 'a) lo4 cost or sa( price+ an) last ,!t important factor i5e5 mentalit( to p!rc'ase .!st to tr( first5 Sales of small pac$ "oo)s are 3!ite 'i"'+ ,!t from t'e compan(As point of -ie4 small pac$ "oo)s is less profita,le compare to lar"e pac$ "oo)s5 Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D2

Role of sales promotions in FMCG sector So 'ere mar$eter tries to increase sales of lar"e pac$ "oo)s ,( !sin" sales promotion tactics li$e price off an) percenta"e e;tra5

B%?+%"7ra-!$
P'ilip 6otler+ #%9Mar$etin" Mana"ement:+ 22t' e)ition+ Pearson e)!cation *sia P!,lication5 C5R56ot'ari+ #%9Researc' Met'o)olo"( met'o)s T Tec'ni3!es:+ <e4 *"e International+ &n) e)ition5 6en Blac$ 'ttp:HH4445nirma5co5inUfiles 'ttp:HH4445'!l5co5inUfiles 'ttp:HH4445p"1in)iaUfiles 'ttp:HH4445"o)re.Ufiles

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D&

Role of sales promotions in FMCG sector

A''*8)r*

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D7

Role of sales promotions in FMCG sector

@)*( %"''a%r* C)( "&*r(

>e are st!)ents of MB* st!)(in" in S IBM *FMED*B*D an) carr(in" o!t a s!r-e( for o!r aca)emic pro.ect to9Role of sales promotions in FMCG:5 So please fill t'is 3!estionnaire5

J25 >'ic' ,ran) of Soap H Deter"ent )o (o! !seE Bat'in" Osoaps !; Famam ife,!o( <irma Ot'ers Respon)ent Deter"ent po4)er <irma s!pper >'eel S!rf *riel Ot'ers Respon)ent

J&5 Do (o! al4a(s ,!( t'e same ,ran) of Soap H Deter"entE Partic!lars Respon)ent Yes <o J75 >'ic' factors )o (o! normall( consi)er 4'ile p!rc'asin" a partic!lar ,ran) of Soap H Deter"entsE Bat'in" Factors soap Det5po4)er Fra"rance J!alit( Compan( ima"e Price Pac$a"in" Ot'ers J=5 Do (o! consi)er promotional sc'emes 4'ile p!rc'asin" a partic!lar ,ran) of Soap H Deter"entE Partic!lars Respon)ent Yes <o J@5 >'ic' of t'e follo4in" promotional sc'emes (o! 'a-e come across so farE Promotional sc'emes Respon)ent Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D=

Role of sales promotions in FMCG sector Co!pons price off Free,ies scratc' car)s l!c$( )ra4 B!n)lin" e;tra 3t(5 JB5 >'ic' me)i!m )o (o! feel is s!ita,le to promote t'e -ario!s promotional sc'emesE So!rce Ra)io TM <e4spaper Foar)in" Ot'ers Respon)ent

JD5 Is t'ere an( e;istin" sc'eme on t'e Soap H Deter"ent (o! are c!rrentl( !sin"E Partic!lars Yes <o JC5 If (es+ please specif(E Partic!lars 7S2HOt'er Free Disco!nt <o i)ea <o ans4er Respon)ent Respon)ent

J05 If (o! "et an attracti-e promotional offer in t'e pro)!ct ot'er t'an of (o!r c'oice 4ill (o! s4itc' o-erE Partic!lars Yes <o J2/5 Gi-e reason for t'e sameE Partic!lars Respon)ent CostS3t( Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D@ Respon)ent

Role of sales promotions in FMCG sector J!alit( Satisfaction Bran) lo(al More ,enefitH,!)"et Season c'an"e <o ans4er J225 Gi-e s!""estions a,o!t f!t!ristic promotional sc'emes5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% DB

Role of sales promotions in FMCG sector Retailers

>e are st!)ents of MB* st!)(in" in S IBM *FMED*B*D an) carr(in" o!t a s!r-e( for o!r aca)emic pro.ect 9Role of sales promotions in FMCG:5 So please fill t'is 3!estionnaire5 Yo!r i)entit( 4o!l) not ,e re-eale) an) information 4ill onl( ,e !se) for aca)emic p!rpose5

J25 Since 'o4 lon" are (o! in t'is ,!sinessE Partic!lars 21@ Years @12/ Years More t'an 2/ (ears

Respon)ent

J&5 <ame t'e Soap H Deter"ent #Compan(% (o! stoc$ for5 Companies Respon)ent <irma FU PTG Go)re. Ot'ers J75 Ran$ t'e follo4in" factors t'at c!stomers loo$ for in t'e p!rc'ase of Soap H Deter"ent5 #Ran$ from 2 to B% Factors 2 & 7 = @ B Fra"rance J!alit( Compan( Ima"e Price Pac$a"in" Ot'ers J=5 Do (o! s!""est c!stomers to p!rc'ase a certain ,ran)E Partic!la Respon)ent r Yes <o J@5 If Yes 4'(E Partic!lar Fi"' mar"in J!alit( Relations'ip <o reason Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% DD Respon)ent

Role of sales promotions in FMCG sector JB5 Do c!stomers loo$ for -ario!s sc'emes in t'e pro)!ctE Partic!la r Yes <o JD5 If (es 4'ic' sc'emesE Promotional Sc'emes Co!pons Price Off Free,ies Scratc' Car)s !c$( Dra4s B!n)lin" Offer E;tra J!antit( Respon)ent Respon)ent

JC5 >'ic' Tra)e Promotions )o -ario!s companies offerE FU Promotions Respon)ent E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5

PTG Promotions Respon)ent E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5

GODREJ Promotions Respon)ent E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% DC

Role of sales promotions in FMCG sector OTFERS Promotions Respon)ent E;tra Mar"in E;tra Units Cre)it facilit( Gifts Promo5 E;p5 J0 Gi-e reasons for not stoc$in" a partic!lar ,ran)5 J2/ *n( S!""estions5

Som alit Instit!te Of B!siness Mana"ement #Mar$etin"% D0