IMT Nagpur

PGDM 2008-2010

The Effect of Sales Promotion on

Consumer Buying Behavior in an
FMCG Industry
Course Coordinator
Prof. P. Bhardwaj

Submitted by:
SEC D
Mayank Bhartia
Ravi Walia
Shashank Tomar
Ronald Dominic Anthony
Sheetanshu Mishra
Raju Kumar Mishra
Ritu Maan

Executive Summary
Sales Promotion has been used over the years to stimulate demand for products under different
categories. There are various strategies that can be employed to generate interest in the products.
In industries dealing with FMCG products with cut-throat competition, sales promotions have
played an important role in setting a brand apart from the clutter. It is not necessary that a single
strategy will work in all circumstances and with all kinds of products. A lot depends on
consumer perception, attitude and preferences.
All of us occasionally delay a purchase until the wanted item "goes on sale." Sometimes we
make an unplanned purchase because of a coupon. Perhaps our loyalty to some brands we use
now began with a free sample. If any of these are true for you, then you took advantage of an
extra incentive to buy broadly known as "sales promotion."
Through our research, we would attempt to analyze the effect of various sales promotion
techniques on consumer buying behavior.

Need for Study

The reasons for the study were:

The widespread use of sales promotions in FMCG category.

Historically, whenever there has been a downward trend in growth, sales promotion
activities have taken the front seat of promotional mix.

Sales promotion strategies entail a considerable amount of companys efforts in terms of

time and money.

All the strategies may not work equally well under similar circumstances.

Hence it is very important to understand the perceptions of consumer regarding sales promotion
activities to improve the effectiveness of these activities.

Objectives of our study

The research aims to accomplish the following objectives:

To study the influence of various sales promotion techniques on the buying behavior of
the consumers.

To study the effect of consumer-oriented sales promotions on the perception of a brand.

To find out the manner in which consumers like to participate in sales promotions.

To determine the extent of brand switching due to Sales Promotion techniques

To determine the best sales promotion technique according to the customers

To determine the various factors that influence the buying behavior of the consumers.

To study the effectiveness of different media as sources of information to the customers

across different product categories.