CHAPTER 1 INTRODUCTION
1
INTRODUCTION
Modernization is a continuous process and there should be concerted effort to modernize both machinery and manufacturing process regularly. It is general experience that units which maintained the process of modernization systematically could manage to sustain their growth in the long run. Modernization in fact is needed to increase production, reduce the cost of production, rationalize labor, reduce maintenance etc. The textile units have tried to regularly modernize their units. As a result the Indian textiles have been vastly grown day by day. This has now successfully become one of the largest in the world. Indian Textile industry is one of the leading textile industries in the world. Indian textile industries are quietly famous from very early period and it is the world’s finest one. But as
for everything the competition strikes in textile industry also, then it move towards the lower part of market. Thus textile industries ind ustries adopt various variou s promotional strategies strategi es to survive. Promotion of retail textile is not just a process, it is a focused mission to persuade customers that the product is better than competing products and to remind customers about why they may want to buy. A promotional strategy is an important element of marketing strategy. A key ingredient in marketing campaign consists of a diverse collection of incentive tools, mostly short term, and design to stimulate quicker or greater purchase of particular products or service by consumers or trade. Promotional strategies adopted by textile industry in perinthalmanna municipality are so significant in the changing world.
2
MEANING
A promotion strategy is an activity that is designed to help the marketing of a product or service. It is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. It can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamp campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and e-mails. Promotion is a reward making activity that influences people to buy and consume the products of a marketer.
DEFINITION
“The
choice of a target market and formulation of the most appropriate promotion mix to influence it.” - Business dictionary
“Promotion compasses all the tools in the marketing mix whose major role is persuasive communication.”
- Philip Kotler
“Promotion includes, advertising, personal selling, sales promotion and other selling tools.”
- Stanston
3
SIGNIFICANCE OF THE STUDY
In the competitive world, to sustain in market, promotional strategy plays a vital role. Promotional strategies and marketing go hand in hand. Marketing your brand or product will include different aspects of manufacturing, promoting and selling products to the customers. Promotion is a key element in putting across the benefits of your product or service to the customers. Well-designed promotional strategies ensure long-term success, bring in more customers and ensure profitability for businesses. Promotional strategies are wider concepts which send out your brand’s message loud and clear to the audienc e. Various media platforms can be used to promote your company and brand. They include television, radio, shopping outlets, billboards, magazines, and social media. Various promotional strategies can be used to promote and market your business depending on the goals, objectives and priorities of your company. In the growing world textile industries in dustries faces a lot of competitors, competito rs, to sustain the market promotional tools are efficient. So the marketing or promotional activity has such a great significance in the textile industry. This study is helpful to understand about the promotional strategies adopted by textiles in perinthalmanna municipality municipa lity and its effectiveness….
STATEMENT OF THE PROBLEM The title of research is “Promotional strategies adopted by textiles in perinthalmanna
municipality”. Promotional strategies influence textiles in various ways. If textiles fail to adopt promotional strategies, it becomes problematic and negatively influences sales. The present study is focus on o n examining the promotional promotio nal strategies adopted by b y textiles.
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OBJECTIVES OF THE STUDY
To identify the various promotional strategy adopted by textile owners in perinthalmanna municipality.
To understand consumer behavior by the effect of promotion.
To evaluate the preference of textile owners towards different promotional strategies.
To analyses up to what extend textile owners is spending money for promotional purpose.
To critically analyses the reason for selection of promotional strategies.
SCOPE OF STUDY This Study is conducted around 60 textiles in perinthalmanna municipality. The ultimate task was to identify the promotional strategies of textiles in perinthalmanna municipality. This study also consists of the consumer behavior by the effect of promotion strategies.
RESEARCH METHODOLOGY Sample Area The sample area for the research is in perinthalmanna municipality.
Sample Size The number of samples covered under the study is 60 textiles.
Sample method The method used for selection of sample is convenience sampling method.
5
Type of source of data The study on promotional strategies of textiles in perinthalmanna municipality is mainly analytical and partially descriptive. Both primary data and secondary data have been used for the study. The primary data has been collected from various textile owners in perinthalmanna. Secondary data has been collected by using internet, journals and different books.
Collection and Analysis of Data The primary data has been collected through the issue of questionnaire, which has been distributed among selected owners of textiles. Satisfaction tools like percentage, pie chart, etc has been used for analyzing data. Graphs, tables and different diagrams have been used to have a better clarity.
LIMITATION OF STUDY
The sample size has been limited to 60.
The time period and finance has been acted as a main hindrance for the study.
The study has been limited only to the owners of different textile company.
The scope is limited to the textiles in perinthalmanna municipality.
PERIOD OF THE STUDY The period has been limited to four months from December 2016 to March 2017.
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CHAPTERISATION For a lucid presentation of the research report, it is divided into four chapters.
CHAPTER 1- INTRODUCTION This chapter deals with the introduction, meaning, definition, significance of the study, statement of the problem, objectives of the study, scope of study, research methodology used, limitations and period of the study.
CHAPTER 2 – LITERATURE & THEORETICAL REVIEWS This chapter gives a literature and theoretical review about the promotional strategies.
CHAPTER 3 – ANALYSIS OF DATA This chapter deals with the analysis of collected data.
CHAPTER 4 – FINDINGS AND CONCLUSION This chapter deals with the various findings and conclusions of the study.
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CHAPTER 2 LITERATURE & THEORETICAL REVIEWS
8
LITERATURE REVIEW
PROMOTION AND CONSUMPTION
Does consumption respond to promotion? Many studies have focused on the effects of promotion on brand switching, purchase quantity, and stockpiling and have documented that promotion makes consumers switch brands and purchase earlier or more. The consumers ‘consumption decision has long been ignored, and it remains unclear how promotion affects
consumption (Blattberg et al. 1995 ). Conventional choice models cannot be used to address this issue because many of these models assume constant consumption rates over time (usually defined as the total purchases over the entire sample periods divided by the number of time periods). While this assumption can be appropriate for some product categories such as detergent and diapers, it might not hold for many other product categories, such as packaged tuna, candy, orange juice, or yogurt. For these categories, promotion can actually stimulate consumption in addition to causing brand switching and stockpiling. Thus, for product categories with a varying consumption rate, it is critical to recognize the responsiveness of consumption to promotion in order to measure the effectiveness of promotion on sales more precisely. Emerging literature in behavioural and economic theory has provided supporting evidence that consumption for some product categories responds to promotion. Using an experimental approach, Wansink (1996) establishes that significant holding costs pressure consumers to consume more of the product. Wansink and Deshpande (1994) show that when the product is perceived as widely substitutable, consumers will consume more of it in place of its close substitutes. They also show that higher perishability increases consumption rates. Adopting scarcity theory, Folkes et al. (1993) show that consumers curb consumption of products when supply is limited because they perceivesmaller quantities as more valuable. Chandon and Wansink (2002) show that stockpiling increases consumption of high convenience productsmore than that of low-convenience products. In an analytical study, Assuncao and Meyer (1993) show that consumption is an endogenous decision variable driven by
promotion and promotion-induced stockpiling resulting from forward-looking behaviour. 9
There are some recent empirical papers addressing the promotion effect on consumer stockpiling behaviour under price or promotion uncertainty. Erdem and Keane (1996) and Gonul and Srinivasan (1996) establish that consumers are forward looking. Erdem et al. (2003) explicitly model consumer’s expectations about future prices with an exogenous
consumption rate. In their model, consumers form future price expectations and decide when, what, and how much to buy. Sun et al. (2003) demonstrate that ignoring forward looking behaviour leads to an over estimation of promotion elasticity.
SALES PROMOTION AND CONSUMER RESPONSE Consumer promotions are now more pervasive than ever. Witness 215 billion manufacturer coupons distributed in 1986, up 500% in the last decade (Manufacturers Coupon Control Center 1988), and manufacturer expenditures on trade incentives to feature or display brands
totaling more than $20 billion in the same year, up 800% in the last decade (Alsop 1986; Kessler 1986). So far, not much work has been done to identify the purchasing strategies that
consumers adopt in response to particular promotions, or to study how pervasive these strategies are in a population of interest. Blattberg, Peacock and Sen (1976) define a purchase strategy as a general buying pattern which "incorporates several dimensions of buying behaviour such as brand loyalty, private brand proneness and deal proneness." A greater understanding of the different types of consumer responses to promotions can help managers to develop effective promotional programs as well as provide new insights for consumer behaviour theorists who seek to understand the influence of different types of environmental cues on consumer behaviour. Blattberg, Eppen, and Liebermann (1981),Gupta (1988), Neslin, Henderson, and Quelch (1985), Shoemaker (1979), Ward and Davis (1978), and Wilson,Newman, and Hastak (1979) find evidence that promotions are associated with purchase acceleration in terms of an
increase in quantity purchased and, to a lesser extent, decreased inter purchase timing. Researchers studying the brand choice decision-for example, Guadagni and Little (1983) and Gupta (1988) -have found promotions to be associated with brand switching. Montgomery (1971), Schneider and Currim (1990), and Webster (1965) found that
promotion-prone households were associated with lower levels of brand loyalty.
10
Blattberg, Peacock, and Sen (1976, 1978) describe 16 purchasing strategy segments based
on three purchase dimensions: brand loyalty (single brand, single brand shifting, many brands), type of brand preferred (national, both national and private label), and price sensitivity (purchase at regular price, purchase at deal price). There are other variables that may be used to describe purchase strategies, examples are whether the household purchases a major or minor (share) national brand, store brand, or generic, or whether it is store-loyal or not. McAlister (1983) and Neslin and Shoemaker (1983) use certain segments derived from
those of Blattberg, Peacock, and Sen but add a purchase acceleration variable to study the profitability of product promotions. Throughout the world, consumer sales promotions are an integral part of the marketing mix for many consumer products. Marketing managers use price-oriented promotions such as coupons, rebates, and price discounts to increase sales and market share, entice trial, and encourage brand switching. Non-price promotions such as sweepstakes, frequent user clubs, and premiums add excitement and value to brands and may encourage brand loyalty (e.g., Aaker 1991; Shea, 1996). In addition, consumers like promotions. They provide utilitarian benefits such as monetary savings, added value, increased quality, and convenience, as well as hedonic benefits such as entertainment, exploration, and self expression (Chandon, Laurent, and Wansink, 1997). A large body of literature has examined consumer response to sales promotions, most notably coupons (e.g.. Sawyer and Dickson, 1984; Bawa and Shoemaker, 1987 and 1989; Gupta, 1988; Blattberg and Neslin, 1990; Kirshnan and Rao, 1995; Leone andSrinivasan, 1996). Despite this, important gaps remain to be studied. It is generally agreed that sales promotions are difficult to standardize because of legal, economic, and cultural differences (e.g., Foxman, Tansuhaj, and Wong, 1988; Kashani and Quelch, 1990; Huff and Alden, 1998). Multinational firms should therefore understand how consumer response to sales promotions differs between countries or states or province
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THEORETICAL REVIEW
PROMOTIONAL STRATEGIES
A marketer ’s job is to build a marketing program to achieve a company’s objective. For this, he has to design and administer various under Four P’ s of marketing, namely, product, price, place and promotion. Marketing communication is an important P (also called as promotion) of marketing. A promotion strategy is an activity that is designed to help boost the marketing of a product or service. It is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. It can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamp campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and e-mails. Promotion is a reward making activity that influences people to buy and consume the products of a marketer. The methods and means of the small scale industrial units are traditional, simple, involve less cost. Promotion may be defined as “the co -ordination of all seller initiated efforts to set up channels of information and persuasion to facilitate the scale of a good or service.”
Promotion is most often intended to be a supporting component in a marketing mix. Promotion decision must be integrated and co-ordinate with the rest of the marketing mix, particularly product/brand decisions, so that it may effectively support an entire marketing mix strategy. The promotion mix consists of four basic elements. They are:1. Advertising, 2. Direct Marketing, 3. Personal Selling, 4. Sales Promotion, and 5.
Publicity 12
Advertising: It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor .
Direct Marketing: It refers to the use of mail, telephone and other non-personal contact tools to communicate with or solicit a response from specific customers and prospects.
Personal Selling: Face to face interaction with one or more prospective purchasers for the purpose of making a sale refers to personal selling.
Public Relations and Publicity: It refers to the variety of programs designed to promote and or protect a company’s image or
its individual products.
Sales Promotions: The short-term incentive to encourage trial or purchase of a product or service refers to sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an incentive to buy.
Sales Promotion
Sales promotion refers to the short-term incentives to encourage sales of a product or service. It consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and greater purchase of products or services by consumers. 13
Purpose of Sales Promotion
Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion usually targets brand switchers because non-users and users of other brands do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other products.
Sales promotions also let manufacturers adjust to short term changes in supply and demand and differences in customer segments. They also let manufacturers to experiment by varying prices. Sales promotions also lead to greater consumer awareness of prices. To use sales promotion, a company must set objectives, select the right tools, develop the best program and implement it and evaluate the results.
Objectives of Sales Promotion
The specific objectives set for sales promotions will vary with the type of the target market. For consumer promotions, objectives include encouraging purchasing of larger sized units, building trial among non-users and attracting switchers away from the competitor’s brands. For trade promotions, objectives may include; including retailers to carry new items and higher level of inventory, encouraging off-seasonal buying, of-setting competitive promotions, building brand loyalty of retailers and gaining entry into new retail outlets.
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The sales force promotions help in encouraging support of a new product or model, encouraging more prospecting and stimulating off-seasonal sales. But most importantly, sales promotion should be focused on consumer relationship building.
Sales Promotion Tools
Many tools can be used to accomplish sales promotion objectives. Descriptions of the main promotional tools are as follows;
Consumer Promotion Tools
The main consumer promotion tools are as follows;
Samples:
They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the product without cost or at a lower cost in the hope that they will buy the product. Samples may be free or discounted.
Coupons: Coupons are certificates that give buyers a saving when they purchase a specified product. Coupons can be mailed, placed in advertisements or included with other products.
15
Rebates: Rebate is also known as cash refund offers. Rebates are offers to refund part of a purchase price of a product to its customers who send a proof of purchase to the manufactures. These are like coupons except that the price reduction occurs after the purchase and not at the point of sale.
Price Packs: Cents-off deals or price packs offer consumers savings by way of reducing prices that are marked by the producer directly on the package.
Premiums: These are
the
goods offered either free or at a low cost as an
incentive to
buy a product. Premiums may be in-pack or on-pack (outside
the pack).
Prizes: They are offers of chance to win something such as cash, trips or goods – by luck or through extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering promotions.
Tie-in Promotions: Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or contests to increase their pulling powers.
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Cross Promotions: Cross promotions involve using one brand to advertise non-competing brand.
Advertising Specialties: These are useful articles imprinted with an advertiser’s name, given as gifts to consumers.
Patronage Rewards: They are cash or other awards for the regular use of company’s products or services. They are values (in cash otherwise) that are proportional to one’s patronage of a certain
vendor or a group of vendors. They aim at building brand loyalty.
Trade Promotion Tools
More money is spent by companies on trade promotion (58%) than on consumer promotions (42%). The major trade promotion tools are as follows
Discounts:
It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price on a particular quantity purchased during a stated time.
Allowances:
They are the amount offered in return for an agreement by the retailer to feature the manufacturer’s products in some way display, advertising or otherwise.
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Free Goods:
Free goods are the extra merchandise offered to middlemen who buy a specific amount of a product.
ADVANTAGES AND DISADVANTAGES OF PROMOTION
ADVANTAGES: 1. It stimulates in the consumers an attitude towards the product. 2. It creates a better incentive in the consumers to make a purchase. It is a Demand creator. 3. It gives direct inducement to the consumer to take immediate action. 4. It is flexible. It can be used at any stage of a new product introduction. 5. Sales promotion leads to low unit-cost, due to large-scale production and large scale selling. 6. It is an effective supporter of sales. It helps the salesman and makes his effort more productive. 7. The promotional tools are the most effective to be used in increasing the sales volume.
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DISADVANTAGES: 1. Sales promotions are only supplementary devices to supplement selling efforts of other promotion tools. 2.
Sales promotion activities are having temporary and short life. The benefits are also short-lived for three or four months. Then the demand will fall down.
3.
They are non-recurring in their use.
4.
Brand image is affected by too many sales promotion activities. Consumers are of the opinion that due to the lack of popularity and overstocking of products of a company, these sales promotional activities are conducted.
5.
There is a feeling in the minds of the customers that sales promotional activity tools are used to sell inadequate or second grade products.
6.
Discounts or rebates are allowed by boosting the prices of the goods, with a view to sell at a gain, which is not real.
7.
Immediate increase in demand is stimulated by this. Hence it is a short-lived tool.
8.
It is expensive and leads to a rise in the price of products.
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CHAPTER 3 ANALYSIS OF DATA
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CLASSIFICATION OF TEXTILES ON THE BASIS OF MONTHLY INCOME.
TABLE 3.1
MONTHLY INCOME.
NO. OF RESPONDENTS
PERCENTAGE
Below 25000
4
7%
25000 – 35000
9
15%
35000 – 45000
26
43%
45000 & above
21
35%
Total
60
100
CHART 3.1
30 26 25 21 20 15
NO. OF RESPONDENTS 9
10 5
4
0 Below 25000
25000 – 35000
35000 – 45000
45000 & above
Source: Primary Data Table 3.1 shows the monthly income of textiles. 7% have a monthly income of below 25000, 15% have monthly income of 35000 - 45000, 43% have monthly income of 25000 – 35000 and 35% have a monthly income of above 45000.
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CLASSIFICATIONS OF TEXTILES ON THE BASIS OFOWNERSHIP STRUCTURE TABLE 3.2 RESPONDENTSHIP STRUCTURE
NO. OF RESPONDENTS
PERCENTAGE
Sole proprietorship
15
25%
Partnership
39
65%
Joint stock
6
10%
Total
60
100%
CHART 3.2
39 40 35 30 25 20
NO. OF RESPONDENTS
15
15 6
10 5 0 Sole proprietorship
Partnership
Joint stock
Source: primary data Table 3.2 shows the ownership structure. 25% of textiles are Partnership firms; 65% of textiles are Sole proprietorships and 10% of textiles are Joint stock companies.
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CLASSIFICATIONS OF TEXTILES ON THE BASIS OFBUSINESS OPERATION TABLE 3.3
BUSINESS OPERATION
NO. OF RESPONDENTS
PERCENTAGE
Small scale
13
22%
Medium scale
33
55%
Large scale
14
23%
Total
60
100%
CHART 3.3
33
35 30 25 20 15
14
13
NO. OF RESPONDENTS
10 5 0 Small scale
Medium scale
Large scale
Source: Primary data Table 3.3 shows the size of textiles. Majority (22%) of textiles is Medium scale; 55% belongs to Small scale; 23% belongs to Large scale.
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SECTION OF THE CUSTOMERS AIMED BY TEXTILES TABLE 3.4
NO. OF RESPONDENTS
PERCENTAGE
Gents
56
93%
Ladies
43
72%
Kids
38
63%
CHART 3.4
56
60 50
43 38
40 NO. OF RESPONDENTS
30 20 10 0 Gents
Ladies
Kids
Source: Primary Data Table 3.4 shows the section of customers aimed by textiles. 93% of textiles include Gents; 72% of textile includes Ladies and 63% of textiles include Kids.
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SHOWSSALES PROMOTION MEDIA ADOPTED BY TEXTILES TABLE 3.5 SALES PROMOTION
NO. OF RESPONDENTS
PERCENTAGE
Print Media
54
90%
Visual Media
38
63%
Others
11
18%
MEDIA
CHART 3.5
60
54
50 38
40 30
NO. OF RESPONDENTS
20 11 10 0 Print Media
Visual Media
Others
Source: Primary data Table 5.6 shows the Sales promotion Medias adopted by textiles. Majority of textiles (90%) are using Print media; 63% using visual Medias for sales promotion;18 % using other Medias for sales promotion; using print Medias for sales promotion;
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SHOWSPROMOTIONAL ACTIVITES ADOPTED BY TEXTILES TABLE 3.6 PROMOTIONAL
NO. OF RESPONDENTS
PERCENTAGE
Discount
58
97%
Extra Offer
24
40%
1+1 Offer
16
27%
Coupons
11
18%
Others
7
12%
ACTIVITES
CHART 3.6 58
60 50 40 30
24
20
16
10
11 7
0 Discount
Extra Offer
1+1 Offer
Coupons
Others
NO. OF RESPONDENTS
Source: Primary Data Table 3.6 shows the Promotional activities adopted by textiles.97% using Discounts; 40% using Extra offer; 27% using 1+1 offer; 18% using coupons and 12% using others;
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EFFECTIVNESS PROMOTIONAL TOOLS TABLE 3.7 PROMOTIONAL TOOLS
NO. OF RESPONDENTS
PERCENTAGE
Advertising
45
75%
Personal Selling
1
1%
Direct Marketing
3
5%
Sale promotion
11
19%
60
100%
CHART 3.7 45 45 40 35 30 25 NO. OF RESPONDENTS
20 11
15 10
3
1
5 0 Advertising
Personal Selling
Direct Marketing
Sale promotion
Source: Primary Data Table No: 3.7 show effectiveness of promotional activities.75% of textiles say that Advertisement is more effective, while 19% of textiles say that Sales Promotion is more effective; But 1% of textiles say that Personal selling is more effective and 5% of textiles say that Direct marketing is more effective.
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CUSTOMER REACTION TO PRODUCT PROMOTION TAABLE 3.8
CUSTOMER REACTION Positive Neutral Negative Total
NO. OF RESPONDENTS 47 7 6 60
PERCENTAGE 78% 12% 10% 100%
CHART 3.8 CUSTOMER REACTION
Negative 10% Neutral 12%
Positive 78%
Source: primary data Table No: 3.8 shows customer reaction towards promotional activities of textiles. Majority of textiles (78%) say that customers reacted positively; only 12% of textiles say that customer’s reaction is neutral and 10% of textiles say that customers reacted negatively
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USEFULNES OF PROMOTION THROUGH SOCIAL NETWORKING WEBSITE TABLE 3.9 USEFULNES OF PROMOTION THROUGH SOCIAL NETWORKING WEBSITE
NO. OF RESPONDENTS
PERCENTAGE
Yes
22
37%
No
38
63%
Total
60
100%
CHART 3.9 USEFULNES OF PROMOTION THROUGH SOCIAL NETWORKING WEBSITE
Yes 37%
No 63%
Source: Primary data Table No: 3.9 shows usage of social networking websites. 37% respondents say that Social Networks are useful. While 63% respondents say that Social Networks are not useful.
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EFFECTIVENESS OF SPONSORING AN EVENT
TABLE 3.10
EFFECTIVENESS OF SPONSORING AN EVENT
NO. OF RESPONDENTS
PERCENTAGE
Yes
37
62%
No
23
38%
Total
60
100%
CHART 3.10 EFFECTIVENESS OF SPONSORING AN EVENT
No 38%
Yes 62%
Source: Primary data Table No: 3.10 show effectiveness of sponsoring an event. 38% respondents say that sponsoring is useful. While 62% respondents say that sponsoring are not useful.
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REASON FOR USING MORE SALE PROMOTION TABLE 3.11 REASON FOR USING SALE PROMOTION Increased competition
NO. OF RESPONDENTS
PERCENTAGE
43
72%
Lower number of customers
31
51%
Reduced market share
7
12%
Publicity
56
93%
Others
13
22%
CHART 3.11 60 50
56
43
40 31 30 20
13 7
10 0 Increased competition
Lower number Reduced of customers market share
Publicity
Others
NO. OF RESPONDENTS
Source: Primary data. Table No: 3.11 show the reasons for using sales promotion. Publicity is one of the main reason of sales promotion for majority of textiles (93%); 72% respondents say that Increased competition is also a reason for using more sales promotion; 51% respondents say that Lower number of customers is one of reason for using more sales promotion;. 12% respondents say that Reduced market share are the reason for using more sales promotion. 22% respondents say that other reason are the reason for using more sales promotion
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AMOUND SPEND FOR PROMOTIOAL ACTIVITY IN AN YEAR TABLE 3.12
AMOUNT SPEND
NO. OF RESPONDENTS
PERCENTAGE
Below 50000 50000 – 100000 100000 – 500000 Above 500000 Total
43 8 3 6 60
72% 13% 5% 10% 100%
CHART 3.12 43
45 40 35 30 25 20 15
8
10 5
3
6
0 Below 50000
50000 – 100000
100000 – 500000
Above 500000
NO. OF RESPONDENTS
Source: Primary data Table no: 3.12 shows the amount spend textiles for sale promotion during a year. 72% of textiles spend an amount below 50000; 13% textiles spends an amount of Rs. 50000 100000; 5% of textiles spends an amount of Rs. 100000 – 500000; 10% of textile spends an amount above Rs.500000.
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VARIATION IN PROFITABILITY AFTER ADOPTING PROMOTIONAL STRATEGIES TABLE 3.13
RESPONSE
NO. OF RESPONDENTS
PERCENTAGE
Yes
56
93%
No
4
7%
Total
60
100%
CHART 3.13 VARIATION IN PROFITABILITY AFTER ADOPTING PROMOTIONAL STRATEGIES
No 7%
Yes 93%
Source: Primary data Table No: 3.13 show the variation in Profitability of textiles after adopting Promotional Strategy. A lion portion (93%) of textiles says that there is variation in profitability after adopting promotional strategy. since 7% say that there is no variation in profitability.
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CHAPTER 4 FINDINGS AND CONCLUTION
34
FINDINGS
Nearly half of textiles (43%) in Perinthalmanna have a monthly income Rs 35000 45000.
Out of the sample (60) textiles, 39 textiles (65%) are Partnership firms.
Majority of textiles (55%) are Medium scale in Perinthalmanna municipality.
A major portion of textiles (93%) sales Gents wears, 72% of textiles sales ladies wear and 63% sales Kids wear in their shop.
More than half of the respondents (90%) are using Print Media for sale promotion. Discount (97% of textiles) and Extra offer (40% of textiles) are the commonly used Promotional Activities by textiles in Perinthalmanna municipality.
Majority of respondents (75%) beliefs that Advertisement is the most effective Promotional tool.
Majority of textiles (78%) says that Customers reacting positively towards their Sales Promotion activities.
More than half of respondents (63%) say that Social Networking websites are not effective.
Majority of textiles (62%) says that sponsoring is effective for sales promotion.
Publicity is one of the major reasons for using sales promotion for almost all (93%)
textiles in Perinthalmanna.
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Most of textiles in Perinthalmanna are spending an amount below 50000 for promotion.
In almost all textiles in Perinthalmanna there is variation in profitability after adopting sales promotion.
CONCLUSION
This project on “Promotional strategies of textiles - a study with special reference to perinthalmanna municipality” gives an assessment of the modern promotional practices in the retail sectors and its growth per year and its impact on the customers towards company In the present scenario, Promotion seems to be an important part of Business. It is a common mistake to believe that promotion by business is all about advertising. It isn't. There are a variety of approaches that a business can take to get their message across to customers, although advertising is certainly an important one. This study reveals that almost all textiles are using Promotional strategies effectively according to the situation and they find changes in the sales as well as Profitability. One of the major reasons for using Promotional measures is increased competition and this competition seems to be in the field of Promotion too.
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BIBLIOGRAPHY AND APPENDIX
37
Websites 1. 2. 3. 4. 5. 6. 7.
www.scribd.com www.slideshare.net http://issue.com www.assignmentpoint.com www.tutor2u.net www.questionpro.com http://slideplayer.com
Books 1. “Advertising and Promotion: An IMC perspective” – By Kuti Shah and Alan D’sousa, 2009, Volume 6. 2. “Marketing Management”- By Philip Kotler and Kevin Keller, 2009.
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APPENDIX
39
QUESTIONNAIRE Sir / Madam, I am a Sixth semester B.Com Student of N.S.S College, Manjeri. I am conducting a study on “PROMOTIONAL STRATEGIES OF TEXTILES - A STUDY WITH SPECIAL REFERENCE TO PERINTHALMANNA MUNICIPALITY “as part of my B.Com dissertation. I would be obliged if you kindly fill up the questionnaire which is required for collecting the data for my B.Com dissertation. I assure you that I will keep the information confidential and use only for my academic purposes. Yours Faithfully
1. Company Name: ………………………………………………. 2. Year of Establishment :………………………………………… 3. Monthly Income Below 25000
25000 – 35000
35000 – 45000
45000 &above
4. Ownership structure of your company. Sole proprietorship
Partnership
Cooperative
5. Type of your business operation. Small scale
Medium scale
Large scale
6. Section of the customers your company is aimed at. Gents
Ladies
Kids
7. Which sales promotion media do you adopt? Print Media (Newspaper, Magazine, etc.) Visual Media (Television, Internet, etc.) Radio Commercials 8. Promotional activities employed by your company to attract customers. Discount
Extra offer
1+1 offer
Coupons
9. Which Promotional tools are more effective in your company? Advertising
Personal Selling 40
Direct Marketing
Others
