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CHAPTER 1.................................................................................................. 2
INTRODUCTION............................................................................................ 2
Introduction.............................................................................................. 2
Need of The Study.................................................................................... 2
Problem Statement.................................................................................. 2
Objective of the study.............................................................................. 2
Limitations................................................................................................ 2
Chapter 2.................................................................................................... 2
Review of literature..................................................................................... 2
Studying Customer Behavior In Retail Stores-William Applebaum............2
Promotion practices in the east and west 2, Aug, 2001 Kim shyan FAM
Department of marketing, City University of Hong Kong..........................2
CHAPTER-3.................................................................................................. 2
THEORETICAL STUDY................................................................................... 2
Advertising............................................................................................... 2
Sales Promotion........................................................................................ 2
Kinds of Sales Promotion.......................................................................2
INTRODUCTION TO THE SECTOR..............................................................2
Retail industry.......................................................................................... 2
HYPERMARKET.......................................................................................... 2
INTRODUCTION TO THE COMPANY...........................................................2
The Carrefour Group: A World Leader In Distribution...............................2
An international retailer........................................................................2
LULU Hyper market................................................................................... 2
Activity and Services............................................................................. 2
Sales promotion.................................................................................... 2
Chapter-4..................................................................................................... 2
Data analysis and interpretation.................................................................2
4.1: Age of Respondents..........................................................................2
4.2: Gender of Respondents:....................................................................2
4.3: Which store first comes to your mind when you think of purchasing
a product?................................................................................................ 2
4.4: How frequently do you visit a store?................................................2
4.5: Which stores advertisement is more powerful?................................2
4.6: Main reason for coming to the store?................................................2
4.7: Are you aware of promotional activities conducted by store?...........2
4.8: Why did you visit Carrefour?.............................................................2
4.9: Which sections of the Lulu store do you like the most?.....................2
4.10: Are you happy with the location of store?......................................2
4.11: Would you like to make your purchase under unexpected offers?. 2
4.12: Are you happy with the parking facility provided?..........................2
CHAPTER-5.................................................................................................. 2
SUMMARY AND SUGGESTIONS.....................................................................2
FINDINGS.................................................................................................. 2
SUGGESTIONS.......................................................................................... 2
CONCLUSION............................................................................................ 2
Annexure..................................................................................................... 2
CHAPTER 1
INTRODUCTION
Introduction
Advertising and promotion are an integral part of our social and
economic system. In our complex society, advertising has evolved
into a vital communication system for both consumers and
businesses. The ability of advertising and other promotional
methods to deliver carefully prepared messages to target audiences
has given them a major role in the marketing programs of most
organizations. Companies ranging from large multinational
corporations to small retailer increasingly rely on advertising and
promotion to help them market products and services. In market-
based economies, consumers have learned to rely on advertising
and other forms of promotion for information they can use in making
purchase decisions.
Promotion has been defined as the coordination of all seller initiated
efforts to set up channels of information and persuasion in order to
sell goods and services or promote an idea. While implicit
communication occurs through the various elements of the
marketing mix, most of an organizations communications with the
marketplace take place as part of a carefully planned and controlled
promotional program. The basic tools used to accomplish an
organizations communication objectives are often referred to as the
promotional mix.
Chapter 2
Review of literature
Studying Customer Behavior In Retail Stores-
William Applebaum
CHAPTER-3
THEORETICAL STUDY
Introduction to the Advertising and Sales Promotion
Promotion refers to the activities to push forward or to advance an idea, in such a way
as to gain its approval and acceptance. Promotion is telling and selling. Product
planning, pricing and distribution are marketing activities that are performed mainly
within the company or between the company and its marketing partners. Sales are
the life-blood of business. Tough competition has increased the importance of sales
promotion efforts on the part of the producers. Thus, sales promotion means all the
steps that are taken for the purpose of increasing sales. Promotional activity in
marketing is basically an exercise in communication. Communication is very
essential.
For example, we have the best products with good package, fair price etc. The
products cannot be sold to consumers unless they know about it. People must know
that the right products are available at the right place and at the right price. This is the
job of promotion in marketing.
Forms of Promotion
Personal selling: It is the most important, the most effective and the most costly form
of promotion. It is the best means of oral or face-to-face or direct communication.
Personal presentation influences sales positively
Sales promotion: The marketing activities other than advertising, publicity and
personal selling are known as sales promotion. It serves as a bridge between selling
and advertising. It is an aggressive method of selling.
Point of purchase display: It is the silent salesperson that attracts the buyers
attention to the product and makes them decide to buy. Promotion at the point of
purchase is very effective. Proper display of products is done by manufacturers or
distributors. It varies widely. Automobile showroom with promotional literature and
pricing information helps the buyers to test the products. Display serves to examine
the product and make buying decision. With the combination of personal selling and
advertising, display gives the maximum effectiveness.
Direct mail: Newspaper advertisement reaches millions of people, while direct mail
is sent to the selected customers. It will attract the customers to buy the goods. It gives
information directly. It supports other forms of promotion. It helps the product
awareness or acceptance.
Advertising
Todays business is of mass production and mass distribution. Similar products are
taken to the market by various producers. This involves tough competition among the
producers. Companies adopt various means to remain in the market. All businessmen
aim to make profit by increasing the sales. When we manufacture good quality
products or offer expert services, these must be known to the public. For this, mass
communication is needed as the population is large or the market area is wide. We can
adopt sales promotion and advertising as tools for marketing. In the present business
world, suitable publicity is done through advertising, which is adopted by almost all
types of companies. Therefore, advertisement is a method of publicity.
What is Advertising?
Advertising is the activity by which visual or oral messages are addressed to the
general public. Its purpose is to inform or influence them in order to increase the sales
of the advertiser. It is done with a view to sell the goods or services offered by the
advertiser. The success of advertising greatly depends upon effective advertising
programme.
Objectives of Advertising
Functions of Advertising
Advantages to community:
Advertising Media
Indoor advertising:
When advertising is done through this method so that people can get the
message at home it is known as indoor advertising. The following are the
kinds of indoor advertising:
Press newspaper, magazine
Radio
Television
Film
Text messages on mobile phones
Outdoor advertising:
Outdoor advertising passes the message to those people who are the moving audience.
Generally, almost all the people go out on some purpose or other office, walk, sight-
seeing, travel, park visit, shopping etc, and cant avoid looking at the advertisements.
Thus outdoor advertising has the best effect of advertising. Following are the various
types of outdoor advertising:
Posters
Advertising boards
Vehicles
Painted display
Travelling display
Electric display
Sky advertising
Sandwich-men (dressed in fancy clothes)
Handbills (leaflets)
Direct advertising:
The objective of direct advertising is to create a direct contact with the customers. The
advertiser can keep a close touch with the customers or the public who are supposed
to have interest in his product. He contacts them through mail advertising. It is a
common method. It is also known as direct mail advertising. It may be of the
following types:
Sales letters
Circulars
Booklets and catalogues
Folders
Package inserts
Store publications
Promotional advertising:
The objective of promotional advertising is to increase the sales. This is also known
as display advertising. By this, we mean that the products are systematically kept in
a place so as to attract the attention of the people who walk that way. The following
are the important types:
Window display
Interior display
Showrooms
Exhibitions
Sales Promotion
Sales Promotion - Sales promotion methods aim to attract the customers and increase
the sales volume. They aim at creating demand. A manufacturer must make the
customers know about the product and he must influence them to buy that product.
Sales promotion is the connecting link between personal selling and advertising. It is
an important and specialized function of marketing.
In recent years, the importance of sales promotion has increased. This is due to the
changes in the marketing environment. It is also due to the thinking of new ideas for
creating a favorable condition for selling and promoting future sales. It is a part of
marketing strategy. For a new product or new brand, sales promotion is very
important. Sales promotion methods inform, remind or encourage the buyers at the
point of purchase. A good sales promotional programme will remove the consumers
dissatisfaction with respect to retail selling. Sales promotion increases as a result of
the growing use of self-service and other sales methods.
Consumer sales promotion: Activities aimed at reaching the consumer at his home
or in his office may be called consumer sales promotion. It is aimed to inform or
educate the consumers and to encourage them to buy certain products. Consumer
sales promotion increases the use of the product by the consumers, and attracts new
customers. The following are the various sales promotion schemes at the consumers
level:
Sampling: Free samples are given to consumers to increase their interest in the
product. They are also given to introduce a new product and increase the market
share. It increases the sales volume when the product is a new one to the customers. It
is an effective method when the product is purchased often e.g. soaps, detergents, tea,
coffee etc. It is a method of demand creation. Sampling gives a chance to the
consumers to compare certain products with others. Samples may be delivered door to
door, sent by mail, picked up in a store, attached to another product etc. It is the most
effective way to introduce a new product
Coupons: Coupons are supplied along with a product. Coupons can be mailed,
enclosed in the packets or printed in the advertisements. The purpose is to attract the
customers and bring them to a particular shop to increase the sales of a particular
brand.
Contests: These are conducted to attract new customers or to introduce new products.
The consumers are asked to state in a few words why they prefer a particular product.
To participate in the contest, the consumers must purchase a product and submit the
evidence (a label of package or a card attached to the product) with the entry form for
the contest. Consumers skill and their ideas are tested and the prize is given to the
best entry. It encourages sales at the retail level.
Money refund offers: If the purchaser is not satisfied with the product, a part or all
of the purchasers money will be refunded. It is stated on the package. It will create
new users and strengthen brand loyalty. Sometimes, the money will be refunded if 10
top covers or empty bottles or packages are sent back to the manufacturer.
Price off offer: It encourages sales during the period when the sales are quite low. It
gives a temporary discount to the consumers i.e. goods are offered at a price less than
the printed price. For example, fans may be sold at reduced price during winter,
Consumer raffle draw: Retailers give tickets or coupons to the customers on the
purchase of goods for a certain amount. At the specified time, lots will be drawn, and
the prizes given.
Free trial: Customers are invited to try the product without cost, in the hope that they
will buy the product. Thus buyers are encouraged by free trial to create interest in
purchase.
not buy in normal time. This buying allowance gives the dealers immediate profit.
Price deals: Apart from the regular discount, special discounts are also offered to the
dealers for a specified quantity of purchase. This special discount is over and above
the regular discount.
Dealer sales contests: This is an indirect way of increasing the sales. This type of
contest is conducted at the level of retailers and wholesalers. This is in the form of
window display, store display, sales volume etc. Prize is awarded for outstanding
achievement. This method is aimed at encouraging distributors, dealers, sales staff etc.
Dealers gift: Manufacturers give attractive and useful articles to dealers against their
order. The articles may be mobile phone, radio, television, clock, watch etc.
Sometimes manufacturers offer free family holiday tours to dealers who place more
orders.
Point of purchase: This plays the role of the silent salesperson. The competition
among the retailers encourages point of purchase advertising, which is an important
method for sales promotion. It is generally at the retailers shop. Floor displays,
overhead signs, wall signs, posters etc are examples of point of purchase method.
Retailers adopt this method to draw the attention of customers. This method is
suitable for consumer goods as well as industrial goods.
Sales force promotion: As dealer and consumer promotion, the sales force promotion
also is a necessary one. The activities of sales force must be encouraged. The role of a
salesperson is very important. The idea of sales force promotion is to make the
salespersons effort more effective. The methods for sales force promotion are:
- Bonus to sales force: The manufacturer sets a target of sales for a year. If the sales
force sells the products above the targeted sales, bonus is offered to them. This is an
encouragement given to the sales personnel to sell more products.
- Sales force contests: To increase the interest and efforts of sales force over a
specified time, these contests are announced. Prizes are given to the sales personnel
who secure the maximum sales in sales contests. Thus it encourages the sales force to
sell more products.
- Sales force meetings and conferences: The idea behind these is to educate, inspire
and reward sales personnel. Encouragement is given to them during the discussions.
New selling techniques are desc ribed to them and discussed in the conference.
Retail industry
There are two basic forms of retailers: wholesale and specialty.
Wholesale retailers, also known as "big box" retailers or department
stores, are companies like Carrefour, Wal-Mart and Target that sell a
wide variety of items at discounted prices. Specialty retailers offer a
limited scope of products in order to serve a smaller market more
effectively, such as consumer electronics retailers like Best Buy or
office supply retailers such as Staples. The majority of the revenue
in the retail industry is generated by companies that run retail
"chains". The biggest retailer in the world is Wal-Mart, which
generated over $344 billion in revenue in its last fiscal year.
Off-Price Retailers: Off-price retailers purchase retail merchandise
directly from suppliers, taking advantage of manufacture over runs
and cancelled orders to acquire retail goods at an opportunistic
discount. They also utilize "packaway", items purchased at discount
at the end of a season, then held in inventory until the next
appropriate season for sale. The off-price retail sector as a whole is
growing faster than most other retail segments, with a CAGR greater
than 10% over the past five years, well above the 4% average
annual growth rate for apparel retail. Each country has a retailer
that is its biggest and best, and when comparing the biggest and
best retail chains from each company, the Global Powers of Retailing
list emerges. From the 13th annual Global Powers of Retailing
report compiled by Deloitte Touche Tohmatsu and STORES
Magazine, this is the list of the retailers who are leading the way for
the retail industry in each of their 32 homelands. The Global
Powers of Retailing list ranks global retailers according to total
revenue. In 2010 the list reflects the revenue that was generated in
2009, which was the early part of an intense global retailing
recession. Despite that, the changes from the last Global Powers list
are surprisingly not all that dramatic. Most of the worlds largest
retailers positioned in the top half of the list moved very little in
their rankings, if at all. Wal-Mart is still, by far, the largest retailer in
the world. Frances Carrefour is still #2. Germanys Metro AG
overtook the United Kingdoms Tesco chain and claimed the #3
position on the list. The top retailers in the top countries managed
to maintain relative stability on the global retailing stage. There
were a few big notable shifts in the worlds largest retailers,
however. Norway and Lithuania became global powers of retailing,
joining this years list at #88 and #221, respectively. Iceland fell off
the list completely after its Baugur Group became a recession
casualty.
Russia fell from the #15 position to the #107 position, the largest
drop for any one country. Chinas ranking fell from #63 to #90, and
a new largest retailer emerged in that country. Spain, Finland, Chile,
South Korea, and Brazil also had new retail companies assume the
position of being their countrys largest retailer.
HYPERMARKET
Hypermarket is a superstore which combines a supermarket and
a department store. The result is a very large retail facility which
carries an enormous range of products under one roof, including full
lines of groceries and general merchandise. In theory, hypermarkets
allow customers to satisfy all their routine shopping needs in one
trip.
Hypermarkets, like other big-box stores, typically have business
models focusing on high-volume, low-margin sales. Because of their
large footprints a typical Wal-Mart Supercenter covers anywhere
from 150,000 square feet (14,000 m2) to 235,000 square feet
(21,800 m2), and a typical Carrefour covers 210,000 square feet
(20,000 m2) and the need for many shoppers to carry large
quantities of goods, many hypermarkets choose suburban or out-of-
town locations that are easily accessible by automobile.
An international retailer
Sales promotion
(65%) of the respondent's age group was the age group under 25
years,(10%) was the age group of over years and(25%) was the age
group between (25-40)years.
Age
under 25 year 25-40 years over 40 years
10%
25%
65%
Male
Female
45%
55%
Awareness
Carrefour LuLu Both None
25%
35%
40%
10% 10%
35%
45%
Awareness
Carrefour LuLu
45%
55%
4.6: Main reason for coming to the store?
Looking at the graph significant number of people said the reason
for coming to the store is discount in the rate of (50%) and saving of
time in the rate of (35%).
Awareness
Value for money Disconut
saving of time wide prodect range available
Brand consiousness
5% 5% 5%
35% 50%
25%
75%
Awareness
Widst range of product Varieties of different brand
35%
65%
4.9: Which sections of the Lulu store do you like the
most?
Looking at the graph significant number of people said which
sections of the Lulu store do you like the most (55%) said food mart
and (25%) said kids.
Awareness
Food mart Household Kids Jewel mart
10%
25%
55%
10%
45%
55%
Awareness
Yes No
40%
60%
4.12: Are you happy with the parking facility
provided?
This chart illustrates frequency of Are you happy with the parking
facility provided a vast majority of the respondent (75%) they said
Yes and (25%) of respondent said No.
Awareness
Yes No
25%
75%
CHAPTER-5
SUMMARY AND SUGGESTIONS
FINDINGS
Majority (84%) of the customers surveyed were aware of the
Promotional offers at Carrefour
SUGGESTIONS
16% of the surveyed customers were not aware of
promotional offers, so the Company should ensure that
maximum customers know about promotional offers visiting
carrefour and there should make aware of offers to general
public.
CONCLUSION
7) Rank the factor that attracted Please choose from below the factor which attracted
you most while purchasing. {give rank}
Carrefour LuLu
a) Offer [ ] a) Offer [ ]
b) Service [ ] b) Service [ ]
c) Quality [ ] c) Quality [ ]
d) Availability of products [ ] d) Availability of products [ ]
e) Other_____________________ e) Other_____________________
8) From which source did you come to know about outlet? {Please
tick out}
Carrefour LuLu
a) T. V. [ ] a) T. V. [ ]
b) Hoardings [ ] b) Hoardings [ ]
c) Bus paintings [ ] c) Bus paintings [ ]
d) News paper [ ] d) News paper [ ]
e) Other_____________________ e) Other_____________________
9) How would you choose the product from the store? {Please give
rank}
Carrefour LuLu
a) Advertisement [ ] a) Advertisement [ ]
b) Reference [ ] b) Reference [ ]
c) Experience [ ] c) Experience [ ]
d) Quality [ ] d) Quality [ ]
e) Quantity [ ] e) Quantity [ ]
f) Service [ ] f) Service [ ]
10) Main reason for coming to the store? {Give only first 5
rank}
a) Value for money
b) Discount
c) Saving of time
d) Wide product range available
e) Brand consciousness
f) Other_______________________
11) The advertisement effect your shopping behaviour?
a) Yes b) No
12) Are you agree with the tagline of Carrefour Isse Sasta Aur Acha Kahin
Nahin?
a) Yes b) No
13) Are you agree with the tagline of LuLu Daily Discounts, Daily Savings!?
a) Yes b) No
14) Why Carrefour called Carrefour?
a) Widest range of products
b) Varieties of different brand
c) Other_______________________
15) Which section of the LuLu store do you like the most?
a) Food Mart b) b)Household
c) Kids d) Jewel mart
16) How much distance do you have the store?
a) 0-5 km b) 5-10 km
c) 10-15 km d) More than 15 km
17) Are you aware of promotional activities conducted by store?
a) Yes b) b) No
18) Are you happy with the location of store?
a) Yes b) No
19) Do your purchase pattern changes, looking at the promotions?
a) Yes if yes, _______________
b) No
20) Would you like to make your purchase under unexpected offers?
a) Yes b) No
21) Are you satisfied with service provided by store?
a) Yes b) No
22) Are you happy with the parking facility provided?
a) Yes b) No
23) Any valuable suggestion?
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