Description
SALES PROMOTION STRATEGY USED IN RETAIL INDUSTRY
PRESENTATION
ON
“SALES PROMOTION STRATEGY USED IN RETAIL INDUSTRY”
(Comparative Analysis of Big-Bazaar & Reliance Fresh)
UNDER THE GUIDENCE OF PROF.VIRENDRA PATIL (Marketing) (2011-2013) IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF Master in Management Studies (MMS) (UNIVERSITY OF MUMBAI)
SHIVAJIRAO .S JONDHALE INSTITUTE OF MANAGEMENT SCIENCE AND RESEARCH ASANGAON – THANE
OBJECTIVES OF THE STUDY
• • • • • •
To study the different sales promotion strategies. To identifying the effect of sales promotion strategy in retail industry. To understand how a sales promotion strategy help attract new consumer. To know how a sales promotion strategy help to face the competition effectively. To find the most effective tool of sales promotion. To suggest for better management of sales promotion strategy in retail industry.
SCOPE OF STUDY
• The important sales promotion strategy can provide vital intelligence about what the retailer has to do, to increase customer footage to their outlet.
•
This information critical is effective to understand effect of sales promotion strategy on
the buying behavior of the consumer.
•
This study is helpful to those employees who already work in that industry and new
comers, management trainee & for future reference.
•
Our study can be useful by other retail business in similar industries.
INDIAN RETAIL INDUSTRY
• Size of the Industry • By 2015 the Organized Retail Sector in India is expected to triple its size. The food and grocery retail sector is expected to multiply five times in the same time frame. The market size of Indian retail industry is about US $312 billion • Geographical distribution • In all the major Cities of the country • Output per annum • With growing market demand, the industry is expected to grow at a pace of 25-30% annually. • Percentage in world market • Today India is the fifth largest in the world in terms of Retail Industry
• Market Capitalization
• In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of the Indian retail market is estimated to be around Rs. 12, 00,000 Cr ($270 billion) and the annual growth rate is 5.7%.
MAJOR FOREIGN COMPANIES
• Wal-Mart Stores Inc has a cash-and-carry operation with Indian partner Bharti Enterprises,
the parent of leading mobile provider Bharti Airtel, and will add 12-15 new cash-and-carry stores this year to its 17 existing stores. • Tesco, Britain's largest retailer, has a tie-up with Trent's Star Bazaar hypermarket chain. Tesco is also looking to enter the wholesale market through the tie-up. • Germany's Metro AG operates 11 wholesale stores in India. The company plans to open 5 cash-and-carry stores every year.
•
Carrefour has 2 cash-and-carry stores in India. The world's No 2 retailer has been seeking a
local partner to enter the hyper or supermarket sectors.
LOCAL COMPANIES
• Pantaloon Retail, India's largest listed retailer and part of the Future Group, runs apparel
and electronics stores under its lifestyle brands Central, E-Zone, Hometown. Future also operates the Big Bazaar hypermarket chain and supermarket brand Food Bazaar. • Second-ranked Reliance Retail is part of Reliance Industries, India's largest listed group headed by Mukesh Ambani, India's richest man. • • Shoppers Stop, part of the K Raheja Group which operates in real estate, has Trent, part of the sprawling Tata Group, operates 106 stores across formats and runs the Westside range of apparel stores, under Star Bazaar.
COMPANY PROFILE
BIG-BAZAAR
• • • • Type Founded Headquarters Industry Subsidiary of Pantaloon Group 2001 Jogeshwari, Mumbai, India Retail
•
• • •
Products
Owner Parent Slogan
Department store, Grocery store
Kishore Biyani Pantaloon Group Is se sasta aur accha kahin nahin
RELIANCE FRESH
• Type Subsidiary of Reliance Industries Limited
• Headquarters Ghansoli , Mumbai - 400701, India • Industry • Products • Owner • Parent Retail Department store, Grocery etc Mukesh D.Ambani Reliance Industries
INTRODUCTION TO TOPIC
• DEFINATION
• “Sales promotion includes incentive-offering and interest-creating activities which
are generally short-term marketing events other than advertising, personal selling, publicity and direct marketing”. (A.H.R. Delons)
• “The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm?s customers.” (W.Q. Kelly)
REASONS FOR RAPID GROWTH OF SALES PROMOTION
a)
Increasing Competition
b)
Sales Promotions Generally Create An Immediate Positive
Impact On Sales
c)
Consumer Acceptance
d)
Expectations Of Price Decrease
Cont….
e) Advertising Has Become More Expensive And Less Effective
f) Emphasis On Sales Volumes
g) Impulse Buying Is Increasing h) Excess Stocks
ADVANTAGES OF SALES PROMOTION
•
•
Price discrimination
Effect on consumer Behaviour (e.g With every 500g pack of Tang, you get a free
Tang glass. Offer valid only till stocks last. )
•
Effect on trade Behaviour (e.g Retailer promotion: Buy Cadbury’s products worth
Rs.3000/- and get any 30 chocolates worth Rs.5 each free. e.g Buy a box of Munch and get 1 Munch free )
Techniques of sales promotions
• Store Demonstration • Coupons • Price-off-offer
• Samples
• Money Refund Offer
• Extra Product
• Gifts
There are three types of sales promotion strategies
Push Strategy
Pull Strategy
A pull strategy is appropriate when
• • The product demand as high. It is possible to differentiate the product on the basis of real or emotional features,
•
•
Brand consumers show high degree of involvement in the product purchase,
There is reasonably highly brand loyalty and consumers make brand choice decision before they go to the store.
PULL AND PUSH
• A „combination? sales promotion strategy is just that; it is a combination of a
push and a pull strategy. It focuses both on the distributor as well as the consumers, targeting both parties directly. It offers consumer incentives side by side with dealer discounts.
COMPARITIVE ANALYSIS
BIG BAZAAR
RELIANCE FRESH
PRICE
Big Bazaar prices are very low Reliance Fresh prices are not low because because its adopt the low price they give whatever is market price. marketing strategy. SERVICE
Big Bazaar services are not quite Reliance Fresh does not face these kind of good as billing problem due to crowd. problems as its not overcrowded. PRODUCT VARIETY
Big Bazaar has lots of variety in Reliance Fresh have less varieties as it is every category of products. In Big smaller than Big Bazaar Bazaar people can find almost everything.
Cont….
CONVENIENCE
Big Bazaar has always worked in cheap Reliance Fresh also works in low cost location location so that it is very convenient for but it is less popular in comparison of Big the people to go to the Big Bazaar rather Bazaar. than going outer of the city.
SHOPPING EXPERIENCE In Big Bazaar people can buy the maximum variety of products of every category under one roof helping in attracting customer and their family to shop toget her and enjoy the shopping experience. Reliance Fresh also provides the products under one roof but there is less varieties so that customers don?t attract so they can not enjoy their shoppings.
PRODUCT QUALITY The product quality is good in Big Bazaar The product quality is also good in Reliance because people can find cheap and best Fresh but the prices are slightly higher. things in Big Bazaar.
COMPARATIVE STUDY OF SALES PROMOTION STRATEGY USED BY BIG-BAZAR AND RELIANCE FRESH
Reliance Fresh
Type Mode
Big-Bazaar
Mode
Special Days
Saturday And Sunday
Wednesday
Exchange offer
Customer can take new in exchange of old item
Premiums in the form of „Bill Busters? on the purchase of a fixed amount every week E.G. Pickle Set (set of 4) is free with the purchase of Rs.999/-
Premium and Gifts
Cont…..
Premium and Gifts Premiums in the form of „Bill Concentrate on bundling offer Busters? on the purchase of a fixed amount every week E.G. Pickle Set (set of 4) is free with the purchase of Rs.999/Sampling Eg .free samples of “Pick” Distribution pickle was distributed which was test merchandise
Rebates ,Discount On MRP of certain products On MRP of certain products
Offers
BOGO [Buy One Get One] BXGY Buy X and Get Y
BOGO [Buy One Get One] BXGY Buy X and Get Y
POP Display
Point of purchase display are Point of purchase display are used to reach to display the used to reach to display the benefit of product. benefit of product.
Research Methodology
• The system of collecting data for research projects is known as research
methodology. The data may be collected for either theoretical or practical research for example management research may be strategically
conceptualized along with operational planning methods and change management. • Data Collection
• There are two main sources for collecting data. These are :-
• 1. Primary Data.
The Primary data has been collected through questionnaire
Cont….
• 2. Secondary Data. • Data has also been collected through internet using various websites such as:-
- www.relianceretail.com – http://www.pantaloon.com/bigbazaar.htm – http://en.wikipedia.org/wiki/Big_Bazaar – www. Future bazaar.com – www. Pantaloon Retail (India) Limited.htm
DATA ANALYSIS AND
INTERPRETATION
RETAILER ORIENTED
1) Is your Sales promotion Strategy is customer oriented?
Yes
100%
No
-
100
0 Is your sales promotion strategy is customer orianted Yes No
Interpretation • As per our survey100% Retailers{both Big-Bazaar (50sample) and Reliance Fresh (50sample)} said that they use Sales promotion Strategy are customer oriented.
2) Does customer really satisfied with your sales promotion activity in your BIG-BAZAAR ?
YES 70% NO 30%
80%
70%
60%
50% Axis Title
40%
30%
20%
10%
0% Series1
Yes 70%
No 30%
Interpretation As per our survey Retailer (50 SAMPLE SIZE) says that 70% of customer (35) are satisfied with your sales promotion activity and remaining 30% (15)are not. So Retailers has to Find some other new way to satisfy remaining 30% unsatisfied customer.
3) Does customer really satisfied with your sales promotion activity in your RELIANCE FRESH ?
• YES -73% • NO - 27%
NO
YES
INTERPRETATION
As per our survey Retailer (50 SAMPLE SIZE) says that 73% of customer (37) are satisfied with your sales promotion activity and remaining 27% (13) are not. So Retailers has to .Thus there is only Variance of only 3% between this two retailer for Satisfaction and Dissatisfaction of customer for sales promotion strategy.
4) Do customers look for various schemes in the product?(Both BIG BAZAAR AND RELIANCE FRESH)(Sample size of 100) Promotional Schemes Respondents Coupons 3 Price Off 45 Scratch Cards 2 Lucky Draws 8 Bundling Offer 22
Extra Quantity 20
45 40
35
30 Axis Title 25 20 15 10 5 0 Respondents
Coupons 3
Price Off 45
Scratch Cards 2
Lucky Draws 8
Bundling Offer 22
Extra Quantity 20
Interpretation From the above diagram we come to know that PRICE-OFF is most preferable Sales promotion strategy With 45% Followed by Bundling and Extra Quantity22 % &20% and the least preferable is Scratch Card & Coupons which is 2% &3%.
5) Which sales promotion Strategy you use most? A) (BIG-BAZAAR)
1 2 3 4 5
Very Low
Very High
Promotional Schemes Coupons Price Off
Respondents
Scratch Cards
Lucky Draws Bundling Offer
Extra Quantity
2 4 1 2 5 5
Extra Quantity
5
Bundling Offer
5
Lucky Draws
2
Scratch Cards
1
Price Off
4
Coupons
2
Interpretation From the above Diagram we come to know that in Big Bazaar Retailer Most concentrate on Extra quantity And Bundling To which they had given rating of point 5 to each And least is scratch card to which they had given only 1 point.
7) On which category customer attract more? A) IN BIG-BIZAAR (50 SAMPLE)
Promotional Schemes FMCG Apparels Stationary luggage Kids Product Consumer Durable Respondents 15 12 1 2 10 10
Consumer Durable, 10
FMCG, 15
Kids Product, 10
luggage, 2
Apparels, 12
Stationary, 1
Cont..
• Interpretation • We can see from the figer that the category to which customer get attract more is FMCG Which is 15 CUSTOMER OUT OF EVERY 50 Followed
by Apparels which is 12 And the least attract segment is stationary which is
only 1 out of every 50 footage.
8) On which category customer attract more? IN Reliance Fresh (OUT OF 50 SAMPLE)
Promotion Responden al ts Schemes Vegetable Kids Product 10 4
Electronic, 9
Vegetable, 10
Fruits
FMCG Apparels Electronic
10
Apparels, 7 Kids Product, 4
10 7
Fruits, 10
9
FMCG, 10
Cont..
• Interpretation • We can see from the Digram that the category to which customer
get attract more is
vegetable ,FMCG, FRUITS Which is 10
CUSTOMER EACH OUT OF EVERY 50 Followed by Electronic which is
9 And the least attract segment is kids product which is only 4 out
of every 50 footage.
Customer Oriented
1) How frequently do you visit to Big-Bazaar or Reliance Fresh?(Out of 50 Sample Each)
How frequently do you visit retail outlet
Big-Bazaar Reliance Fresh
Daily
1
Once in Week
20
Twice in a week
19
Once in months
10
2
18
22
8
22 20 19 18
10 8
2
1
How frequently do you visit retail outlet
Daily
Once in Week
Twice in a week
Once in months
Cont..
• Interpretation
• From the above Diagram we come to know that 20 customer go once in week in Big Bazaar while only 18 in Reliance out of 50 in each, and 19 Twice in week in BIG- Bazaar 22 in Reliance Fresh, and 10 once in month & 8 once in month in
Big Bazaar And Reliance Fresh.
2)What do you like the most at Big-Bazaar?(out of 50 sample)
what do you like most about Reliance/Big Bazaar Price up to satisfaction 28 Various option Available to choose 15 Display of Merchandise 7
Display of Merchandise, 7
Various option Available to choose, 15
Price up to satisfaction, 28
Cont…
• Interpretation • From the above diagram we can see that the customer is mostly attracted by the Price Factor that is 28 customer out of 50 sample which is more then 50% followed by various option available that is 15 customer out of 50sample and only 7attracted by Display of merchandise
3) What do you like the most at Reliance Fresh?(out of 50 sample)
what do you like most about Reliance/Big Bazar Price up to satisfaction 25 Various option Available to choose 13 Display of Merchandise 12
Display of Merchandise, 12
Price up to satisfaction, 25
Various option Available to choose, 13
Cont..
• Interpretation
• From the above fig. we come to know that 25 that is 50% of customer are
attract to price factor and only 13 out o f 50 sample are attract to option
available but in big bazaar it is 15 customer out of 50sample that is it is 2 more ,and customer are more attract to display in merchandise it is 12 in
Reliance Fresh where it was only 7 in Big-Bazaar which is 5 customer
more.
4) Do you consider promotional schemes while visiting Big-Bazaar?(OUT OF 50 SAMPLE) Particulars Yes No
40
Respondent 36 14
35
30
25 Axis Title
20
15
10
5
0 Respondent
Yes 36
No 14
Cont…
• Interpretation
• Thus from the above Table and Diagram we come to know that 36 Customer Look for the promotional schemes while visiting a BIG-BAZAAR And 14 does not look for the any scheme.
5) Do you consider promotional schemes while visiting RELIANCE FRESH(OUT OF 50 SAMPLE) Particulars Yes No Respondent 30 20
30
25
20 Axis Title
15
10
5
0 Respondent
Yes 30
No 20
Cont..
• Interpretation • Thus from the above Table and Diagram we come to know that 30 Customer Look for the promotional schemes while visiting a RELIANCE FRESH And 20 does not look for the any scheme.
6)How does you compare Reliance Fresh with Big -Bazaar?
How does you compare reliance Fresh with BigBazaar Biz-Bazaar Reliance Fresh
25 23
Price Factor 25
Availability of Product 18
Customer Service 7
23
17
10
18
17
10 7
Price Factor
Availability of Product
Customer Service
Cont..
• Interpretation • From the above diagram we come to know that customer compare both retail outlet on Price basis by25 and 23in Big-Bazaar and Reliance Fresh out of 50sample, 18 and 17are comparing both retail out let on the basis of
Availability of product. and only 7 and 10customer compare on the basis of
customer Service out of 50 customer each outlet
7) Do you feel easy to find out the product in BIG-BAZAAR?
Do you feel easy to find out the product
Yes 48
No 2
48
2
Do you feel easy to find out the product
Yes No
Interpretation
From the above table and figer we can see that 48 customer can easily find out the product and only 2 were not.(OUT OF 50 SAMPLE)
8) Do you feel easy to find out the product in RELIANCE FRESH?
Do you feel easy to find out the product Yes 49 No 1
49 50 45 40 35
30
25
20
15 10 5 0 Do you feel easy to find out the product Yes No 1
Interpretation From the above table and figer we can see that 49 customer can easily find out the product
and only 1 were not.(OUT OF 50 SAMPLE)
9). How do you feel about the customer service of Reliance Fresh?
How do you feel Customer Service of Reliance Fresh Average 24 Good 11 Excellent 15
24
15 11
How do you feel Customer Service of Reliance Fresh
Average
Good
Excellent
Interpretation
From the Above Diagram we come to know that 24 people has given average Rating to Customer Service in Reliance , Followed by 15 Excellent and 11 as Good.
10) How do you feel about the customer service of BIG BAZAAR? (out of 50 sample size)
How do you feel Customer Service of Reliance Fresh Average 30 Good 15 Excellent 5
30
25
20 30 15
10
15
5
5
0 How do you feel Customer Service of Reliance Fresh Average Good Excellent
Interpretation From the Above Diagram we come to know that 30 people has given average Rating to Customer Service in Reliance , Followed by 15 Good and 5 as Excellent.
Observation & Finding
• Temporary price reductions (price off) substantially increase sales • Sales Promotion leads to brand substitution with the product category
• Sales Promotion leads to purchase acceleration/stockpiling
effects • Sales Promotions affect sales in complementary and competitive categories
LIMITATION
•
It is the time constrains.
•
Due to other work load during the period it could be not be possible to explore
more area concern pertaining to study.
• •
The study was conducted to limited area on THANE Region only. Respondent may give biased answer due to some lack of information about other brands.
•
Findings of the study are based on the assumption that the respondents have given correct information
Conclusion
• We have noted that these kind of promotional tools are useful for short term increase in sales and to induce first trial. These types of promotional schemes should be consistent and changed from time to time depending upon season and competitor?s schemes. • With the Increasing number of supermarket, the branded packaged goods work as silent sales person. So in such stores, sales promotion plays a more effective role in stimulating consumers’ demands • Thus proper use of sales promotion tools help to achieve the objective of organization.
Source
• BOOKS
A. C.R.Kothari, “Research Methodology methods & techniques”,New Age International(p)ltd.publishers,2nd edition, page no 95 ,96 102. B. Philip Kotler, “Marketing Management”, 13th edition, Pearson education Asia Publication,page no.355 to 356.
• Internet
A. B. C. http://www.ril.com/html/aboutus/about_brands.html www.reliance fresh.com www.Future bazaar.co
D.
E. F.
www.Big-bazaar. Com
Study_of_Consumer_Oriented_Sales_Promotion_in_FMCG.zip - ZIP archive, unpacked size 574,464 bytes FutureBazaar.com, 2010. Future Bazaar India Ltd. [Online] Available at: http://bigbazaar.futurebazaar.com [Accessed 24 March 2011].
G.
Kumar, V., 2010. Promotional Strategy of Big Bazaar & Maintaining the image in Retailing. [Online] Available
at: http://www.skylinecollege.com/blog/dissertation/promotional-strategy-of-big-bazaar-maintaining-the-imagein-retailing [Accessed 19 March 2011].
doc_269948031.pptx
SALES PROMOTION STRATEGY USED IN RETAIL INDUSTRY
PRESENTATION
ON
“SALES PROMOTION STRATEGY USED IN RETAIL INDUSTRY”
(Comparative Analysis of Big-Bazaar & Reliance Fresh)
UNDER THE GUIDENCE OF PROF.VIRENDRA PATIL (Marketing) (2011-2013) IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF Master in Management Studies (MMS) (UNIVERSITY OF MUMBAI)
SHIVAJIRAO .S JONDHALE INSTITUTE OF MANAGEMENT SCIENCE AND RESEARCH ASANGAON – THANE
OBJECTIVES OF THE STUDY
• • • • • •
To study the different sales promotion strategies. To identifying the effect of sales promotion strategy in retail industry. To understand how a sales promotion strategy help attract new consumer. To know how a sales promotion strategy help to face the competition effectively. To find the most effective tool of sales promotion. To suggest for better management of sales promotion strategy in retail industry.
SCOPE OF STUDY
• The important sales promotion strategy can provide vital intelligence about what the retailer has to do, to increase customer footage to their outlet.
•
This information critical is effective to understand effect of sales promotion strategy on
the buying behavior of the consumer.
•
This study is helpful to those employees who already work in that industry and new
comers, management trainee & for future reference.
•
Our study can be useful by other retail business in similar industries.
INDIAN RETAIL INDUSTRY
• Size of the Industry • By 2015 the Organized Retail Sector in India is expected to triple its size. The food and grocery retail sector is expected to multiply five times in the same time frame. The market size of Indian retail industry is about US $312 billion • Geographical distribution • In all the major Cities of the country • Output per annum • With growing market demand, the industry is expected to grow at a pace of 25-30% annually. • Percentage in world market • Today India is the fifth largest in the world in terms of Retail Industry
• Market Capitalization
• In 2010 the retail trade accounts for 12 % of the country's GDP. The present value of the Indian retail market is estimated to be around Rs. 12, 00,000 Cr ($270 billion) and the annual growth rate is 5.7%.
MAJOR FOREIGN COMPANIES
• Wal-Mart Stores Inc has a cash-and-carry operation with Indian partner Bharti Enterprises,
the parent of leading mobile provider Bharti Airtel, and will add 12-15 new cash-and-carry stores this year to its 17 existing stores. • Tesco, Britain's largest retailer, has a tie-up with Trent's Star Bazaar hypermarket chain. Tesco is also looking to enter the wholesale market through the tie-up. • Germany's Metro AG operates 11 wholesale stores in India. The company plans to open 5 cash-and-carry stores every year.
•
Carrefour has 2 cash-and-carry stores in India. The world's No 2 retailer has been seeking a
local partner to enter the hyper or supermarket sectors.
LOCAL COMPANIES
• Pantaloon Retail, India's largest listed retailer and part of the Future Group, runs apparel
and electronics stores under its lifestyle brands Central, E-Zone, Hometown. Future also operates the Big Bazaar hypermarket chain and supermarket brand Food Bazaar. • Second-ranked Reliance Retail is part of Reliance Industries, India's largest listed group headed by Mukesh Ambani, India's richest man. • • Shoppers Stop, part of the K Raheja Group which operates in real estate, has Trent, part of the sprawling Tata Group, operates 106 stores across formats and runs the Westside range of apparel stores, under Star Bazaar.
COMPANY PROFILE
BIG-BAZAAR
• • • • Type Founded Headquarters Industry Subsidiary of Pantaloon Group 2001 Jogeshwari, Mumbai, India Retail
•
• • •
Products
Owner Parent Slogan
Department store, Grocery store
Kishore Biyani Pantaloon Group Is se sasta aur accha kahin nahin
RELIANCE FRESH
• Type Subsidiary of Reliance Industries Limited
• Headquarters Ghansoli , Mumbai - 400701, India • Industry • Products • Owner • Parent Retail Department store, Grocery etc Mukesh D.Ambani Reliance Industries
INTRODUCTION TO TOPIC
• DEFINATION
• “Sales promotion includes incentive-offering and interest-creating activities which
are generally short-term marketing events other than advertising, personal selling, publicity and direct marketing”. (A.H.R. Delons)
• “The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm?s customers.” (W.Q. Kelly)
REASONS FOR RAPID GROWTH OF SALES PROMOTION
a)
Increasing Competition
b)
Sales Promotions Generally Create An Immediate Positive
Impact On Sales
c)
Consumer Acceptance
d)
Expectations Of Price Decrease
Cont….
e) Advertising Has Become More Expensive And Less Effective
f) Emphasis On Sales Volumes
g) Impulse Buying Is Increasing h) Excess Stocks
ADVANTAGES OF SALES PROMOTION
•
•
Price discrimination
Effect on consumer Behaviour (e.g With every 500g pack of Tang, you get a free
Tang glass. Offer valid only till stocks last. )
•
Effect on trade Behaviour (e.g Retailer promotion: Buy Cadbury’s products worth
Rs.3000/- and get any 30 chocolates worth Rs.5 each free. e.g Buy a box of Munch and get 1 Munch free )
Techniques of sales promotions
• Store Demonstration • Coupons • Price-off-offer
• Samples
• Money Refund Offer
• Extra Product
• Gifts
There are three types of sales promotion strategies
Push Strategy
Pull Strategy
A pull strategy is appropriate when
• • The product demand as high. It is possible to differentiate the product on the basis of real or emotional features,
•
•
Brand consumers show high degree of involvement in the product purchase,
There is reasonably highly brand loyalty and consumers make brand choice decision before they go to the store.
PULL AND PUSH
• A „combination? sales promotion strategy is just that; it is a combination of a
push and a pull strategy. It focuses both on the distributor as well as the consumers, targeting both parties directly. It offers consumer incentives side by side with dealer discounts.
COMPARITIVE ANALYSIS
BIG BAZAAR
RELIANCE FRESH
PRICE
Big Bazaar prices are very low Reliance Fresh prices are not low because because its adopt the low price they give whatever is market price. marketing strategy. SERVICE
Big Bazaar services are not quite Reliance Fresh does not face these kind of good as billing problem due to crowd. problems as its not overcrowded. PRODUCT VARIETY
Big Bazaar has lots of variety in Reliance Fresh have less varieties as it is every category of products. In Big smaller than Big Bazaar Bazaar people can find almost everything.
Cont….
CONVENIENCE
Big Bazaar has always worked in cheap Reliance Fresh also works in low cost location location so that it is very convenient for but it is less popular in comparison of Big the people to go to the Big Bazaar rather Bazaar. than going outer of the city.
SHOPPING EXPERIENCE In Big Bazaar people can buy the maximum variety of products of every category under one roof helping in attracting customer and their family to shop toget her and enjoy the shopping experience. Reliance Fresh also provides the products under one roof but there is less varieties so that customers don?t attract so they can not enjoy their shoppings.
PRODUCT QUALITY The product quality is good in Big Bazaar The product quality is also good in Reliance because people can find cheap and best Fresh but the prices are slightly higher. things in Big Bazaar.
COMPARATIVE STUDY OF SALES PROMOTION STRATEGY USED BY BIG-BAZAR AND RELIANCE FRESH
Reliance Fresh
Type Mode
Big-Bazaar
Mode
Special Days
Saturday And Sunday
Wednesday
Exchange offer
Customer can take new in exchange of old item
Premiums in the form of „Bill Busters? on the purchase of a fixed amount every week E.G. Pickle Set (set of 4) is free with the purchase of Rs.999/-
Premium and Gifts
Cont…..
Premium and Gifts Premiums in the form of „Bill Concentrate on bundling offer Busters? on the purchase of a fixed amount every week E.G. Pickle Set (set of 4) is free with the purchase of Rs.999/Sampling Eg .free samples of “Pick” Distribution pickle was distributed which was test merchandise
Rebates ,Discount On MRP of certain products On MRP of certain products
Offers
BOGO [Buy One Get One] BXGY Buy X and Get Y
BOGO [Buy One Get One] BXGY Buy X and Get Y
POP Display
Point of purchase display are Point of purchase display are used to reach to display the used to reach to display the benefit of product. benefit of product.
Research Methodology
• The system of collecting data for research projects is known as research
methodology. The data may be collected for either theoretical or practical research for example management research may be strategically
conceptualized along with operational planning methods and change management. • Data Collection
• There are two main sources for collecting data. These are :-
• 1. Primary Data.
The Primary data has been collected through questionnaire
Cont….
• 2. Secondary Data. • Data has also been collected through internet using various websites such as:-
- www.relianceretail.com – http://www.pantaloon.com/bigbazaar.htm – http://en.wikipedia.org/wiki/Big_Bazaar – www. Future bazaar.com – www. Pantaloon Retail (India) Limited.htm
DATA ANALYSIS AND
INTERPRETATION
RETAILER ORIENTED
1) Is your Sales promotion Strategy is customer oriented?
Yes
100%
No
-
100
0 Is your sales promotion strategy is customer orianted Yes No
Interpretation • As per our survey100% Retailers{both Big-Bazaar (50sample) and Reliance Fresh (50sample)} said that they use Sales promotion Strategy are customer oriented.
2) Does customer really satisfied with your sales promotion activity in your BIG-BAZAAR ?
YES 70% NO 30%
80%
70%
60%
50% Axis Title
40%
30%
20%
10%
0% Series1
Yes 70%
No 30%
Interpretation As per our survey Retailer (50 SAMPLE SIZE) says that 70% of customer (35) are satisfied with your sales promotion activity and remaining 30% (15)are not. So Retailers has to Find some other new way to satisfy remaining 30% unsatisfied customer.
3) Does customer really satisfied with your sales promotion activity in your RELIANCE FRESH ?
• YES -73% • NO - 27%
NO
YES
INTERPRETATION
As per our survey Retailer (50 SAMPLE SIZE) says that 73% of customer (37) are satisfied with your sales promotion activity and remaining 27% (13) are not. So Retailers has to .Thus there is only Variance of only 3% between this two retailer for Satisfaction and Dissatisfaction of customer for sales promotion strategy.
4) Do customers look for various schemes in the product?(Both BIG BAZAAR AND RELIANCE FRESH)(Sample size of 100) Promotional Schemes Respondents Coupons 3 Price Off 45 Scratch Cards 2 Lucky Draws 8 Bundling Offer 22
Extra Quantity 20
45 40
35
30 Axis Title 25 20 15 10 5 0 Respondents
Coupons 3
Price Off 45
Scratch Cards 2
Lucky Draws 8
Bundling Offer 22
Extra Quantity 20
Interpretation From the above diagram we come to know that PRICE-OFF is most preferable Sales promotion strategy With 45% Followed by Bundling and Extra Quantity22 % &20% and the least preferable is Scratch Card & Coupons which is 2% &3%.
5) Which sales promotion Strategy you use most? A) (BIG-BAZAAR)
1 2 3 4 5
Very Low
Very High
Promotional Schemes Coupons Price Off
Respondents
Scratch Cards
Lucky Draws Bundling Offer
Extra Quantity
2 4 1 2 5 5
Extra Quantity
5
Bundling Offer
5
Lucky Draws
2
Scratch Cards
1
Price Off
4
Coupons
2
Interpretation From the above Diagram we come to know that in Big Bazaar Retailer Most concentrate on Extra quantity And Bundling To which they had given rating of point 5 to each And least is scratch card to which they had given only 1 point.
7) On which category customer attract more? A) IN BIG-BIZAAR (50 SAMPLE)
Promotional Schemes FMCG Apparels Stationary luggage Kids Product Consumer Durable Respondents 15 12 1 2 10 10
Consumer Durable, 10
FMCG, 15
Kids Product, 10
luggage, 2
Apparels, 12
Stationary, 1
Cont..
• Interpretation • We can see from the figer that the category to which customer get attract more is FMCG Which is 15 CUSTOMER OUT OF EVERY 50 Followed
by Apparels which is 12 And the least attract segment is stationary which is
only 1 out of every 50 footage.
8) On which category customer attract more? IN Reliance Fresh (OUT OF 50 SAMPLE)
Promotion Responden al ts Schemes Vegetable Kids Product 10 4
Electronic, 9
Vegetable, 10
Fruits
FMCG Apparels Electronic
10
Apparels, 7 Kids Product, 4
10 7
Fruits, 10
9
FMCG, 10
Cont..
• Interpretation • We can see from the Digram that the category to which customer
get attract more is
vegetable ,FMCG, FRUITS Which is 10
CUSTOMER EACH OUT OF EVERY 50 Followed by Electronic which is
9 And the least attract segment is kids product which is only 4 out
of every 50 footage.
Customer Oriented
1) How frequently do you visit to Big-Bazaar or Reliance Fresh?(Out of 50 Sample Each)
How frequently do you visit retail outlet
Big-Bazaar Reliance Fresh
Daily
1
Once in Week
20
Twice in a week
19
Once in months
10
2
18
22
8
22 20 19 18
10 8
2
1
How frequently do you visit retail outlet
Daily
Once in Week
Twice in a week
Once in months
Cont..
• Interpretation
• From the above Diagram we come to know that 20 customer go once in week in Big Bazaar while only 18 in Reliance out of 50 in each, and 19 Twice in week in BIG- Bazaar 22 in Reliance Fresh, and 10 once in month & 8 once in month in
Big Bazaar And Reliance Fresh.
2)What do you like the most at Big-Bazaar?(out of 50 sample)
what do you like most about Reliance/Big Bazaar Price up to satisfaction 28 Various option Available to choose 15 Display of Merchandise 7
Display of Merchandise, 7
Various option Available to choose, 15
Price up to satisfaction, 28
Cont…
• Interpretation • From the above diagram we can see that the customer is mostly attracted by the Price Factor that is 28 customer out of 50 sample which is more then 50% followed by various option available that is 15 customer out of 50sample and only 7attracted by Display of merchandise
3) What do you like the most at Reliance Fresh?(out of 50 sample)
what do you like most about Reliance/Big Bazar Price up to satisfaction 25 Various option Available to choose 13 Display of Merchandise 12
Display of Merchandise, 12
Price up to satisfaction, 25
Various option Available to choose, 13
Cont..
• Interpretation
• From the above fig. we come to know that 25 that is 50% of customer are
attract to price factor and only 13 out o f 50 sample are attract to option
available but in big bazaar it is 15 customer out of 50sample that is it is 2 more ,and customer are more attract to display in merchandise it is 12 in
Reliance Fresh where it was only 7 in Big-Bazaar which is 5 customer
more.
4) Do you consider promotional schemes while visiting Big-Bazaar?(OUT OF 50 SAMPLE) Particulars Yes No
40
Respondent 36 14
35
30
25 Axis Title
20
15
10
5
0 Respondent
Yes 36
No 14
Cont…
• Interpretation
• Thus from the above Table and Diagram we come to know that 36 Customer Look for the promotional schemes while visiting a BIG-BAZAAR And 14 does not look for the any scheme.
5) Do you consider promotional schemes while visiting RELIANCE FRESH(OUT OF 50 SAMPLE) Particulars Yes No Respondent 30 20
30
25
20 Axis Title
15
10
5
0 Respondent
Yes 30
No 20
Cont..
• Interpretation • Thus from the above Table and Diagram we come to know that 30 Customer Look for the promotional schemes while visiting a RELIANCE FRESH And 20 does not look for the any scheme.
6)How does you compare Reliance Fresh with Big -Bazaar?
How does you compare reliance Fresh with BigBazaar Biz-Bazaar Reliance Fresh
25 23
Price Factor 25
Availability of Product 18
Customer Service 7
23
17
10
18
17
10 7
Price Factor
Availability of Product
Customer Service
Cont..
• Interpretation • From the above diagram we come to know that customer compare both retail outlet on Price basis by25 and 23in Big-Bazaar and Reliance Fresh out of 50sample, 18 and 17are comparing both retail out let on the basis of
Availability of product. and only 7 and 10customer compare on the basis of
customer Service out of 50 customer each outlet
7) Do you feel easy to find out the product in BIG-BAZAAR?
Do you feel easy to find out the product
Yes 48
No 2
48
2
Do you feel easy to find out the product
Yes No
Interpretation
From the above table and figer we can see that 48 customer can easily find out the product and only 2 were not.(OUT OF 50 SAMPLE)
8) Do you feel easy to find out the product in RELIANCE FRESH?
Do you feel easy to find out the product Yes 49 No 1
49 50 45 40 35
30
25
20
15 10 5 0 Do you feel easy to find out the product Yes No 1
Interpretation From the above table and figer we can see that 49 customer can easily find out the product
and only 1 were not.(OUT OF 50 SAMPLE)
9). How do you feel about the customer service of Reliance Fresh?
How do you feel Customer Service of Reliance Fresh Average 24 Good 11 Excellent 15
24
15 11
How do you feel Customer Service of Reliance Fresh
Average
Good
Excellent
Interpretation
From the Above Diagram we come to know that 24 people has given average Rating to Customer Service in Reliance , Followed by 15 Excellent and 11 as Good.
10) How do you feel about the customer service of BIG BAZAAR? (out of 50 sample size)
How do you feel Customer Service of Reliance Fresh Average 30 Good 15 Excellent 5
30
25
20 30 15
10
15
5
5
0 How do you feel Customer Service of Reliance Fresh Average Good Excellent
Interpretation From the Above Diagram we come to know that 30 people has given average Rating to Customer Service in Reliance , Followed by 15 Good and 5 as Excellent.
Observation & Finding
• Temporary price reductions (price off) substantially increase sales • Sales Promotion leads to brand substitution with the product category
• Sales Promotion leads to purchase acceleration/stockpiling
effects • Sales Promotions affect sales in complementary and competitive categories
LIMITATION
•
It is the time constrains.
•
Due to other work load during the period it could be not be possible to explore
more area concern pertaining to study.
• •
The study was conducted to limited area on THANE Region only. Respondent may give biased answer due to some lack of information about other brands.
•
Findings of the study are based on the assumption that the respondents have given correct information
Conclusion
• We have noted that these kind of promotional tools are useful for short term increase in sales and to induce first trial. These types of promotional schemes should be consistent and changed from time to time depending upon season and competitor?s schemes. • With the Increasing number of supermarket, the branded packaged goods work as silent sales person. So in such stores, sales promotion plays a more effective role in stimulating consumers’ demands • Thus proper use of sales promotion tools help to achieve the objective of organization.
Source
• BOOKS
A. C.R.Kothari, “Research Methodology methods & techniques”,New Age International(p)ltd.publishers,2nd edition, page no 95 ,96 102. B. Philip Kotler, “Marketing Management”, 13th edition, Pearson education Asia Publication,page no.355 to 356.
• Internet
A. B. C. http://www.ril.com/html/aboutus/about_brands.html www.reliance fresh.com www.Future bazaar.co
D.
E. F.
www.Big-bazaar. Com
Study_of_Consumer_Oriented_Sales_Promotion_in_FMCG.zip - ZIP archive, unpacked size 574,464 bytes FutureBazaar.com, 2010. Future Bazaar India Ltd. [Online] Available at: http://bigbazaar.futurebazaar.com [Accessed 24 March 2011].
G.
Kumar, V., 2010. Promotional Strategy of Big Bazaar & Maintaining the image in Retailing. [Online] Available
at: http://www.skylinecollege.com/blog/dissertation/promotional-strategy-of-big-bazaar-maintaining-the-imagein-retailing [Accessed 19 March 2011].
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