RESEARCH PROJECT REPORT (MBA - 043) ON ³A study of sales promotion and its effectiveness- a case study of Vishal megamart´ Submitted in Partial Fulfillment of
Master of Business Administration (MBA) Programme : 2009 -11
of
GautamBudhha Technical University, Lucknow
Under the Supervision Supervision of (Mr. Arbind Kumar Sinha) MBA Department Departmen t
SUBMITTED BY ANUP SINGH ROLL NO:0901470008
S.R.M.S.C.E.T., Bareilly
Faculty of Management Science Shri Ram MurtiSmarak College of Engineering & Technology, Bareilly
(College Code ± 014)
1
Shri Ram MurtiSmarak College of Engineering & Technology, Bareilly (U.P.)
Faculty of Management Science Certificate
This is to certify that Mr.ANUP SINGH, a student of MBA IV Semester has completed his Research Project Report titled ³A study of sales promotion and its effectiveness- a case study of Vishal Mega Mart´ assigned by MBA Department and under my supervision. It is further certified that He has personally prepared this report that is the result of his personal survey/observation. It is of the standard expected to MBA student and hence recommended for evaluation. Supervisor (A.K. Sinha) Above statement is endorsed. (Anant Kumar Srivastava)
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DECLARATION
I, Rakesh Kumar hereby declare that I have carried out project report on Topic ³A study of sales promotion & its effectiveness-a case study of Vishal Mega Mart´in Bareilly.
I further declare that project work is my original work and no part of this report has been published or submitted to anybody or university for award of any other degree or Diploma.
ANUP SINGH MBA 4thsem.
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TABLE OF CONTENT PAGE NO. CHAPTER-1 Introduction of the topic
1-14
1.1 Introduction
1
1.2 Company Profile:
2
1.2.1 Introduction Introduction
2
1.2.2: vision & mision
5
1 .2.3: Sales promotion technique adopted by Vishal Mega Mart
6
1.3: Details about
the topic
9-12
1.3.1 Definition of Sales promotion
9
1.3.2 Sales promotion strategies
9
1.3.3 Types of sales promotion
10
1.3.4 Importance of sales promotion
11
1.3.5 Sales promotion techniques
11
1.4 Research Question
13
1.5 Objectives of research
14
CHAPTER-2 Literature Review
15-17
CHAPTER-3 Research Design
18-19
3.1 Research methodology
18
3.2 Research design
18
3.3 Method of data collection
18
4
CHAPTER-4 Data Analysis and Interpretation
20-33
CHAPTER-5
34-36
5.1 findings
34
5.2 Suggestions Suggestions
35
5.3 Limitation Limitation
36
5.4 Conclusion
37
Bibliography
38
Annexture
39
5
LIST OF TABLE PAGE NO. Table No. 1: Data showing uses of promotional techniques by
vishal mega mart.
20
Table No 2: Data showing which type of sales promotional techniques
is used by vishal mega mart.
21
Table No 3: Data showing that which techniques is most attractive to
the customer.
22
Table No 4: Data showing that employee really rely on these techniques or not.
23
Table No 5: Data showing that for how long one techniques is used by
vishal mega mart.
24
Table No 6: Data showing that these techniques really increases sales of
vishal mega mart or not.
25
Table No 7: Data showing that sales promotional techniques really help in
introducing a new product or not.
26
Table No 8:Data showing that from how many days customer is visiting in
vishal mega mart.
27
Table No 9:Data showing the satisfaction level of customer for the product
and customer handling handlin g offered by vishal mega mart. 6
28
Table No 10: Data showing the satisfaction level of customer with the
discount provided by vishal mega mart.
29
Table No 11: Data showing the satisfaction level of customer with the
sales promotion activity by vishal mega mart.
30
Table No 12: Data showing the offer which are most preferred by the customer. customer.
32
Table No 13: Data showing the customer loyalty that they will continue visiting to
vishal mega mart in future or not.
33
7
LIST OF FIGURE Figure No.1:Data showing that from how many days customer is visiting in
vishal mega mart.
20
Figure No 2: Data showing which type of sales promotional techniques
is used by vishal mega mart.
21
Figure No. 3: Data showing that which techniques is most attractivee to the
customer.
22
Figure No. 4: Data showing that employee employee really rely on these techniques or not. 23 Figure No.5: Data showing showing that for how long one techniques techniques is used by
vishal mega mart.
24
Figure No.6: Data showing that these techniques really increases sales of
vishal mega mart or not.
25
Figure No.7: Data showing that sales promotional techniques really help in
introducing a new product or not.
26
Figure No.8:Data showing that from how many days customer is
visiting in vishal mega mart
27
FigureNo.9:Data showing the satisfaction level of customer for the
product and customer handling offered by vishal mega mart.
28
Figure No. 10: Data showing the satisfaction level of customer with
the discount provided by vishal mega mart.
29 8
Figure No. 11: Data showing the satisfaction level of customer
with the sales promotion activity by vishal mega mart.
31
Figure No. 12: Data showing the offer which are most most preferred by the customer. customer. 32 Figure No.13: Data showing the customer loyalty that they will
continue visiting to vishal mega mart in future or not.
9
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Chapter-1 Introduction of the topic 1.1
Introduction
This research project is related to the Retail Sector and is conducted to know the promotional strategies of the companies for the Retail Sector products. Vishal Mega Mart is one of the most prominent names of this industry. It is well known that this company has largest shares in the market. In this research report Section 1 is related to the Introduction of the topic in this sections there are various subsection. These subsections also contain the more described forms of the introduction. In other subsections as in 1.3, 1.4, 1.5, and further details of the RETAIL SECTOR sectors and details of the VISHAL MEGAMART are given. In the next section 2.1 Summary of the Literature review has been done after that in section 3.1 details of the research methodology has been given. In Section 4.1 Analysis of the survey and its interpretation has been given. In the last section Findings Limitations and Conclusion of the research has been given.
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1.2: Profile of Vishal mega mart. 1.2.1 Introduction
About the Organization Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all
price ranges. The showrooms have over 7000 products range which fulfills most of the household needs, and can be catered to under one roof. It is covering about 1282000 sq. ft. in 18 states across India. Each store gives international quality goods and prices hard to match. The cost benefits that derived from the large central purchase of goods and services are passed on to the consumer VISHAL HISTORY AND ACHIEVEMENTS
What started as a humble one store enterprise in 1986 in Kolkata(Erstwhile, Calcutta) is today a conglomerate encompassing 51 showrooms in 39 cities. India¶s India¶s first hypermarket was also opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the single largest collection of goods and commodities sold less than one roof in India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Agarwal . The group had turnover turnover of 2884.43 million for fiscal fiscal 2006 2006 and Rs. 6026.53 million for fiscal 2007.
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The group¶s prime focus is on retailing. retailing.
The Vishal stores offer affordable family
fashion at prices to suit every pocket. The group¶s philosophy is integration and towards this
end has initiated backward integration integrati on in the field of high fashion by setting up a
state of the art manufacturing facility to support its retail endeavors. CORPORATE PROFILE Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700
imported machines that have a capacity to manufacturer 150000 pieces a month. The factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives employment to more than a 1000 people. These people work in Ancillaries that supply finished goods to the company. Vishal¶s 10 ware houses cater to 51 showrooms in 39 cities. It is covering about 1282000 sq. ft. in 18 states across India. Our loyalty programmes gives the Indian consumer
of
being
rewarded every time he/she makes a purchase at any of its
stores anywhere in the country. Consumers can make purchases at any store and accumulate points at a central level. These points are redeemable at any of our stores. One can accumulate points even when a purchase is made while traveling and can redeem points at any store. So no matter where you are in India you can partake the our loyalty programme. Some of the key features of retailing include: 1. Selling directly to customers without having any intermediaries intermediaries 2. Selling in smaller units / quantities, breaking the bulk 3
3. Present in neighborhood or in the location which is quite convenient to the customers. customers. 4. Very high in numbers 5. Recognized by their service levels 6. Fitting any size and or location It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas, the mindset of the existing customers have undergone drastic changes. Besides it is also reported that the traditional retailing retailing such an age old Grocery shops face direct competition with the organized retailing sector. In some parts of the country, it is reported that the traditional retails are resisting the entry of organized shopping malls. For instance the traditional retails of Bhubaneswar with the active support of the consumers at large didn¶t allow reliance Fresh to start outlet initially.
Recent Trends 1.
Retailing in India is witnessing a huge revamping exercise as can be seen in the
graph 2.
India is rated the fifth most attractive attractive emerging retail market: a potential goldmine.
3.
Estimated Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion 4. As per a report by KPMG the annual growth growth of department stores is estimated at 24% 5.
Ranked second in a Global Retail Development Development Index of 30 developing countries
drawn up by AT Kearney.
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1.2.2: MISSION STATEMENT
We shall deliver everything, everywhere, every time for every Indian Consumer in the most profitable manner. VISION STATEMANT:
We share the vision and belief that our customers and stakeholders stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.
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1.2.3: Sales promotion technique adopted by Vishal Mega Mart 1. Price-off offer: Under this offer, products are sold at a price lower than the original price. This type of scheme is designed to boost up sales in off-season and sometimes while introducing a new product in the market. Example:
· Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/T shirt). · Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/T-shirt). · Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/T-shirt). · Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP: Rs. 299/T-shirt). · Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/T-shirt). · Buy 1 woman top and get Rs. 100/- off on the bottoms.
2. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on the original price. This type of scheme is designed to boost up sales in off-season. Example:
· 30% off on all the men formal shirts and trousers. · 30 % off on all the women formals and casual outfits. 3. End of season sale:
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End of Season sale or stock Clearance sale is been conducted at vishal mega mart Factory Outlets. They are offering surprising discounts as if you buy 2 any items of garments and you will get 3 more with your choice absolutely free. These offers are given as celebration of New Year. 4. Seasonal offers:
Vishal mega mart provides the customers with various discounts and price-off offers at the stores and factory outlets on the seasons like winter and monsoon. This type of scheme is designed to boost up sales in these seasons. 5. Festival offers:
Vishal mega mart have come up with festive offer during Diwali and Christmas by giving away gifts for purchases that are made at the store for cheaper price. If you shop for Rs. 4500 you get a Strolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs. 2400 and above you get a lemon set, which is said to be imported, worth Rs. 649 for Rs. 99 only. 6. New Year offers:
Vishal mega mart offers gifts for purchases that are make at the store during the New Year for cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set for Rs. 249 only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package for a couple on an International cruise.
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7. Discount Coupons:
Vishal mega mart offers 25% discount on its large range ran ge of apparels. The coupon is valid for limited period. This coupon is valid for 25% off on any product purchased from www.vishalmegamart.com 8. Gift Vouchers:
Vishal mega mart Fresh Fashion offers many vouchers ranging different denominations like Rs100, Rs.250, Rs.1000 and Rs.2000. These vouchers are exchangeable with the products by the customers at all the vishal mega mart Showrooms in India. The vouchers are a better option rather than gifts for the employees and customers as they are not bound for a particular thing to accept. They are given free choice for choosing better gifts for themselves by using vouchers. Vishal mega mart vouchers offer a wide range of products and services for shopping. It has got coverage in 15 cities including 22 outlets. It thus offers good gift vouchers to its customers, clients and sales force also to keep good relationships amongst each other. The most famous Gift Vouchers by Pantaloons Fresh Fashion are Trendsetters and Connoisseurs Choice.
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1.3: Details
about the topic
1.3.1 Definition of Sales promotion
Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. Sales promotion includes several communications activities that attempt to provided value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes 1.3.2 Sales Promotion Promotion Strategies
Sales promotion is a process of increasing sales volume of a defined product in a defined territory in a defined time period to meet short term sales objective. Sales promotion plays a vital role in marketing campaigns, it consists of a collection of incentives, tools mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or trade. Sales promotion tools offer three distinctive benefits: (a) Communication: They gain attention and may lead the consumer to the product. (b) Incentives
: They incorporate some concessions, concessions, inducement, or contribution
that gives value to the consumers. (c) Invitation
: They include a distinct invitation to engage in the transaction
now or as quickly as possible.
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1.3.3 TYPES OF SALES PROMOTION
PUSH PULL
A push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. The company promotes the product through a reseller who in turn promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand in advertising, and/or push a brand to final consumers. Typical tactics employed in push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, and premiums. A pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers as possible to go to retail out lets and request the product, thus pulling it through the channel. Consumer-promotion objectives are to entice consumers to try a new product, attract customers away from competitors¶ products, get consumers to "load up" on a mature product, hold &reward loyal customers, and build consumer relationships. Typical tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty 10
programs/patronage programs/patronage rewards, contests, sweepstakes, sweepstakes, games, and point-of-purchase (POP) displays. 1.3.4 Reasons for Sales Promotions
· This could be a way of monitoring the performance of product management. Since sales promotion can possibly provide immediate impact on consumer sales, it is not unusual to use these strategies to attain their sales objectives.· Companies have to cope with pressure on sales margins which they can achieve through paying closer attention to cost-effective sales volume. Since the results of using sales promotional techniques can be determined accurately, sales volumes can be easily predicted. · More importantly, sales promotions are not only effective in attaining short term sales; they are also more cost-effective cost-effective compared to other integrated marketing communications tools such as advertising. The progressive fragmentation of audiences and the increase in media costs have tipped the balance in favour of sales promotion techniques which are more likely to deliver demonstrable results. 1.3.5 Popularity of Sales Promotions
The reason sales promotions are gaining popularity is due to the fact that product and sales management are very confident in their ability to handle the techniques of sales promotion. Other forms of integrated marketing communication tools need to go through a lot of thought and internal debates before funds are allocated or decisions are arrived at. Product managers also are more in control of the determination and implementation of sales promotional activities. They have a freehand when it comes to what sales strategies to use. 11
The importance of sales promotions as an integrated marketing communications tool could be attributed to the increase in number of specialist sales promotions agencies operating in certain places. In the past, sales promotion was viewed as part of other marketing communications techniques. Today, it is one of the stand-alone effective marketing tools.
12
1.4: Research Question: As the research question for my dissertation report is as
following: To know about sales promotional techniques and its effectiveness of Vishal Mega Mart.
The study will be carried out in the city of Bareilly and will enable vishal mega mart to understand which consumer and sales promotion scheme are beneficial and like by customer so as to retain customer for longer period. This research is helpful to know type of sales promotional scheme used by retail store and to motivate the consumer for buying the products.
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1.5: Objective
of Research
1) To access the current sales promotion scheme in Vishal Megamart 2) To find out the nature and types of the sales promotion scheme offered by Vishal mega mart to customer 3) Find out consumer perception toward sales promotion pro motion scheme 4) To find out the how much effective sales promotion for vishal mega mart
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Chapter 2: Literature Review Several studies on apparel retail sector and usage of promotions are reported in the context of developed markets. A brief overview is presented below: Indian organized retail industry is poised for growth. Apparel sector in particular has a great opportunity with alignment of Indian economy to globalised markets. With the widespread use of sales promotions- short term activities which provide material inducements to consumers and trade it becomes imperative for managers to understand such practices and understand challenges. India as an Apparel Retail sector has grown to accommodate and use sales promotion as an important tool to push sales and more importantly create brand loyal customers. Retailers like Lifestyle, for instance, has a loyalty programme called `The Inner Circle', while Pantaloons offers a `Green Card' Rewards programmes, Westside has `Club West' to woo the customers.
Marketers use price oriented promotions such as coupons, rebates and price deals to increase sales and market share, to entice trial, and to encourage brand switching. Gupta (198 8) suggests that 84% of the sales increases due to promotion come from brand
switching. Loyalty or continuity programs such as frequent user programs and shoppers' cards, which reward consumers' repeat purchasing of a particular brand or at a particular outlet, have their greatest value encouraging consumers with divided loyalty to purchase a given brand (Shimp 2000 ).
The Indian retail industry is undergoing major revolutions. Retailing in India is gradually becoming the next boom industry. The consumer buying patterns and behavior are 15
changing steadily. The growth of India's retail sector not only limited to urban areas but also growing in rural areas. In the next five years, it is expected that, India's retail industry will expand more than 80%. ( Supriya P al, al, 2008) With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before. They spend mornings browsing in stores looking for deals or latest styles. It¶s here the role of sales promotion becomes prominent. Indian shoppers are deal hungry and rely heavily on price deals, off the shelf discounts and gift vouchers. In the large urban centers, apparel retailers, like Shoppers Stop, Westside and Pantaloon have popularized loyalty cards, gift vouchers and price deals. This sales promotion can be categorized as the new form of promotional activity which the Indian Apparel industry is offering and making the best out of it. Shoppers stop for instance has over 60% of its revenues from its ³First citizen´ card holders who are entitled for various discounts and loyalty points. This highlights the importance of sales promotions and Apparel retailer needs to understand critical role of sales promotions. Attractive promotions induces purchase acceleration, stock piling and brand switching on the part of a consumer which substantially reduces retailers financial and inventory risk and consumer¶s psychological risk. Many studies have been done in the past to analyze sales promotions and relative consumer buying behavior 1. Kincade, Doris Doris H.; Woodard, Woodard, Ginger A.; Park, Park, Haesun (2002) studied Buyer± seller relationships relationships for promotional promotional support in the apparel apparel sector which which is critical for success. The purpose of the study was to define promotional support categories offered to apparel retailers by manufacturers, to identify the retailer's perceptions of the offering
frequency
and
importance
16
of
the
promotional
support
2. Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. The study found out that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards 3. An Investigation of Consumer Response to Sales Promotions in Developing Markets: A Three-Country Analysis. Journal of Advertising Research | May 01, 1998 | L., Lenard C.; Alden Huff Dana studied consumers' attitudes towards the use of coupons (a price-oriented promotion) and sweepstakes (a non-price promotion). The models were designed specifically for developing or newly industrialized countries with collectivist cultures and were tested with consumer samples from Taiwan, Thailand, and Malaysia. The study suggested that 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. Also the use of Non-price promotions such as sweepstakes, frequent user dubs, and premiums add excitement and value to brands and encourage brand loyalty
In view of above research studies, the emergence of sales promotions in Indian retail segment needs to be identified. This research will look into the aspect of sales promotional activities in Indian Apparel Retail segment. Also this study will encompass the promotional strategies of major retail brands like Westside, Lifestyle and Shopper Stop among others. The effectiveness of these sales promotion activities will be studied w.r.t increasing sales/revenues as well as creating and building brand loyal customers.
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Chapter 3: Research Design 3.1 Research methodology
When we talk about research methodology, we do not talk only of research method but also consider the logic behind the method that be used in context research study. We also evaluate why we are using a particular method and the used technique should be such that the research is capable of being evaluated by the researcher and as by others. 3.2 Research Design
Descriptive research is one, which involves describing the state of affairs, as they exist. This type of research was used in the study of marketing strategies for the sale of company¶s product also while studying about the parameters, which affect competitiveness competitiveness of the product.
3.3 Method of data collection Type of Research: - This research is Descriptive Research in nature because in this we
are conducting a customer based survey to know the opinion of customers about the promotional strategy of the Vishal Megamart. Megamart.
Types of Data:- There are two types of data has been used in this research. Primary and
Secondary.
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Primary Data:- Survey by Questionnaire from concerned authorities & questionnaire for
the customers.
Secondary Data:-Previous Report and websites of the organization. For Literature
review few researches has been used..
Research Instrument:-For this purpose Questionnaire & Observation has been used as tool. Contact Method: -Direct survey of the employees and questionnaire for the customers . Sampling Size: - 10 employees 20 customers Sampling Area:-Vishal mega mart, Bareilly.
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Chapter 4: Data Analysis and a nd Interpretation
Analysis of Questionnaire for the employees -
Q.1-Do you adopt the sales promotion techniquesTable 1: Data showing uses of promotional techniques by vishal mega mart.
%
YES NO 10 0 100% 0%
SAMPLE SIZE 10 100%
% 0%
YES 10 NO 0
100%
Fig 1: Data showing uses of promotional techniques by vishal mega mart.
Interpretation ± As this question is design to know that vishal mega mart uses sales
promotion techniques or not. When I asked from ten employees of vishal mega mart they all reply that they use sales promotional techniques.
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Q.2-Which type of sales promotion techniques you adoptTable 2: Data showing which type of sales promotional techniques is used by vishal mega mart.
%
Free Buy one Get Discount Coupons gifts one others 6 1 1 2 60% 10% 10% 20%
SAMPLE SIZE 0 0%
Sales 0%
20%
discount coupons free gifts
10% 60%
buy one get one free others
10%
Fig 2: Data showing which type of sales promotional techniques is used by vishal mega mart.
Interpretation: As this this question question is design design to know know that which types of sales promotion
techniques is used by vishal mega mart. When I asked from ten employees of vishal mega mart. Through this figure we can easily know that 60% of employee told that discount techniques is used used and 20% told that coupon technique technique is used and 10% told that that buy one
21
10 100%
get one free technique is used and rest of 10% told that others technique are used by vishal mega mart. Q.3-Which techniques is most attractive to the customer? Table 3: Data showing that which techniques are most attractive to the customer?
%
Discount
Coupons
Free Gifts
5 50%
1 10%
1 10%
Buy one get one free 2 20%
Others
Sample Size
1 10%
10 100%
%
10% Discount Coupons
20%
Free Gifts
50%
Buy one Get one Free 10%
Others 10%
Fig 3: Data showing that which techniques is most attractive to the customer.
Interpretation: Through the analysis we can easily know that discount technique
attract 50% of the customer of vishal mega mart , 20% customer of vishal mega mart are attracted by coupons technique , 20% customer of vishal mega mart are attracted
22
by buy one get one free technique and rest of 10% customer are attracted by other techniques.
Q.4-Do you strongly rely on these techniques? Table 4: Data showing that employee really rely on these techniques or not.
%
GENERALL SOMETIME YES Y S NO 4 3 3 40% 30% 30%
SAMPLE SIZE 0 0%
10 100%
% 0%
30%
YES 4
40%
GENERALLY 3 SOMETIMES 3 NO 0 30%
Fig 4: Data showing that employee really rely on these techniques or not.
Interpretation: Through the analysis we can easily know that 40% of employees really
believe on these these sales promotional promotional techniques , generally 30% 30% employee believe that it should be there and rest of 30% believe that it should be used some time. 23
Q.5- For how long you stick to particular techniquesTable 5: Data showing that for how long one techniques is used by vishal vishal mega mart.
Sample ONE WEEK %
10-15 DAYS
7 70%
More than one month 2 1 20% 10%
size 10 100%
Sales
10%
20%
one week 10-15 days more than one month 70%
Fig 5: Data showing that for how long one techniques is used by vishal mega mart.
Interpretation: Through the analysis we can easily know that 70% employees told that
the duration of using one technique is 0ne week , and 20% told that the duration of using one technique is ten to fifteen days and remaining 10% told that technique is used for more than one month.
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Q.6- Do really these techniques increases sales? Table 6: Data showing that these techniques really increases sales of vishal mega mart or not.
%
ALWAYS SOMETIMES RARELY 5 5 0 50% 50% 0%
NO THEY DON`T
SAMPLE SIZE 0 0%
10 100%
% 0% 0%
ALWAYS 5 SOMETIMES 5 50%
50%
RARELY 0 NO THEY DON`T 0
Fig 6: Data showing that these techniques really increases sales of vishal mega mart or not. Interpretation: Through this analysis we can easily know that 50% employees really
believe that by using sales promotional technique the sales of vishal mega mart always increases and 50% think that it is helpful for increasing the sales of vishal mega mart for some times.
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Q.7- Does it helps to introduce a new product? Table 7: Data showing that sales promotional techniques really help in introducing a new product or not.
YES
NO
CAN`T SAY
6 60%
%
1 10%
SAMPLE SIZE 3 30%
10 100%
%
30%
YES 6 NO 1 CAN`T SAY
60%
3
10%
Fig 7: Data showing that sales promotional techniques really help in introducing a new product or not. Interpretation: Through the analysis of this question we can easily know that 60%
employee believe that sales promotional technique helps in introducing a new product and 10% don¶t believe and remaining 30% says that they don¶t know.
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Analysis of customer question:
Q1. Since how many days you are visiting the Vishal Mega mart? Table 1: Data showing that from how many days customer is visiting in vishal
mega mart. %
>1 year
1 -2 year
2-4 year
<4
4
6
7
3
Sample size 20
20%
30%
35%
15%
100%
Days
15%
20%
>1 year 1-2 year 2-4 year
<4 year 35% 30%
Fig 1: Data showing that from how many days customer is visiting in vishal mega mart. Interpretation: Through the analysis of this question we can easily know that 20% of the customer are coming to vishal mega mart from past one year, and 30% are coming to vishal mega mart from past two years, 35% customer are coming to vishal mega mart 27
from past four years and remaining 15% are coming to vishal mega mart from more than four year. Q.2 Are you satisfied with its products and customer customer handling? Table 2: Data showing the satisfaction level of customer for the product and customer handling offered by vishal mega mart.
%
Yes
No
Sample Size
12
8
20
60%
40%
100%
Satisfaction Level
40%
Yes No 60%
Fig 2: Data showing the satisfaction level of customer for the product and customer handling offered by vishal mega mart. Interpretation: Through the analysis of this question we can easily know that 60% of customers are satisfy with the product and customer handling being provided by vishal
28
mega mart and remaining 40% are not satisfied.
Q.3) Do you enjoy enjoy the discounts being provided provided here? Table 3: Data showing the satisfaction level of customer with the discount provided by vishal mega mart.
%
Yes
No
Cannot say
Sample size
17
3
0
20
85%
15%
0
100%
Satisfaction Level
15%
Yes
No
85%
Fig 3: Data showing the satisfaction level of customer with the discount provided by
vishal mega mart.
29
Interpretation: Through the analysis of this question we can easily know that 85% of the
customers are satisfied with the discount provided by vishal mega mart and the remaining 15% are not satisfied by the discount provided by the vishal mega mart.
Q4. Are you satisfied with sales promotion activity of the Vishal Megamart? Table 4: Data showing the satisfaction level of customer customer with the sales promotion activity by vishal mega mart.
%
Yes
No
Sample Size
17
3
20
85%
15%
100%
30
Satisfaction Level
15%
Yes
No
85%
Fig 4: Data showing the satisfaction level of customer with the sales promotion activity by vishal mega mart.
Interpretation: Through the analysis of this question we can easily know that 85% of the
customers are satisfied with the sales promotional activity provided by vishal mega mart and the remaining 15% are not satisfied by the sales promotional activity provided by the vishal mega mart.
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Q. 5 Which offer do you like the most? Table 5: Data showing the offer which are most preferred by the customer.
Discounts
%
Free Gifts
Buy one get one free If any other
Sample size
10
4
5
1
50%
20%
25%
5%
20 100%
5%
25%
Discount Free Gifts 50%
Buy one get one free If any other
20%
Fi:g 5: Data showing the offer which are most preferred by the customer. Interpretation: Through the analysis of this question we can easily know that 50% of the
customer are satisfied with the discount provided at vishal mega mart , 20% customer are satisfied with the free gifts , 25% customer are satisfied with the buy one get one free technique and remaining 5% are satisfied with the other promotional activity.
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Q6. Do you think you will keep visiting the Vishal Megamart? Table 6: Data showing the customer loyalty that they will continue visiting to vishal
mega mart in future or not.
%
Yes
No
Can not say
16
0
4
80%
0
20%
Sample size 20 100%
20%
0% Yes No Can not say
80%
Fig 6: Data showing the customer loyalty that they will continue visiting to vishal mega
mart in future or not. Interpretation: Through the analysis of this question we can easily know that 80% of the
customer will continue to buy in future and the remaining 20% are not sure that whether they will come or not.
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CHAPTER - 5 5.1 Findings As there were two types of respondents with different type of questions so the findings of the questionnaire are as following: y
Vishal mega mart uses promotional tool at wider range.
y
They mostly use discount offers as a promotional tool for increasing sales.
y
They use promotional tool mostly for a week
y
Promotional tools are very much important for Vishal Mega Mart, in increasing sales and also in introducing new products.
y
Customers are also satisfied with the promotional tools of Vishal Mega Mart; mostly they are satisfied with the discount offers.
y
Customers are satisfied with the products of Vishal Mega Mart and also with the behavior of the employees.
y
Vishal mega mart maintains good customer relationship that¶s why most of the customers said that they will visit Vishal Mega Mart frequently.
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5.2 Limitation:This research is conducted on a very small sample size, so it might be possible that the information given by such respondents may not match with the replay of total customer available in the store at that time.
There was a time constraint while conducting the report.
It might be possible that the answers given by the respondents are full of biasness.
As there are two types of respondents so there is difference between the responses towards the sales promotion tools avail by both of them which become a constraint towards the research project.
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5.3 Suggestions. y
They need to focus on other promotional tools as they only rely on discount offers.
y
They should also focus on quality of product.
y
They should also focus on customer handling services and they should take new steps in reducing the waiting time of customer during making payments as there is a long queue.
y
They should also use promotional tool for more than a week so that every customer is benefited.
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5.4 Conclusion In the research we found that Indian retail industry is very complicated in nature because the taste and preferences of the customers vary a lot in nature. The customers are very choosy in nature; they are not ready to compromise with their requirements. The customers have lots of option related to the choices. There are many competitors in the retail industry. So the sales and promotion activity of the company is the only tool to attract the customers. In the study we found that Vshal Megamart is one of the most successful retail stores in India. They apply various methods methods of sales and promotion. They apply most most of the tools on weekly basis. They also keep on changing the methods regularly. They do so because they know that if they have to sustain in the market will need to give their customers always something new.
37
Bibliography
www.vishalmegamart.com www.wikipedia.com www.scrib.com
BooksPhilip Kottler
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Annexure. QUESTIONNAIRE
Questionnaire for the Customers
NameOccupationAdress1.
Since how many days you are visiting the Vishal Megamart? a) >1 year b) 1-2 year c) 2-4 years d) 4< years
2.
Are you satisfied with its products and customer handling? a) Yes b) No
3.
Do you enjoy the discounts being provided provided here? a) Yes b) No c) Not Really
4.
Are you satisfied with sales and promotion activity of the Vishal Megamart?
a) Yes b) No 39
5.
Which offer do you like the most? a) Discounts b) Free Gifts c) Buy one Get one free d) Other if any.
6.
Do you think you will keep visiting the Vishal Megamart? a) Yes b) May be c) No
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Questionnaire for Employees
y
Name :- ______________________ ___________________________ _____
7.
Do you adopt the Sales Promotion techniques? a) Yes
8.
b) No
Which type of sales promotion techniques you adopt A. Discount ?A B. Coupons ? C. Buy one and get free ?A D. Free gifts ?A E. If other, specify ««««««««««
9.
Which techniques is most attractive to the customer?
A. Discount [ D. Free gifts ?A
10.
A
B. Coupons ? ] C. Buy one and get free E. If other, specify ««««««««««
Do you strongly rely on these techniques a) Yes
11.
]
b) No
c)Sometimes
d)Generally
For how long you stick to particular techniques? a) 1 month
b)10-15 days
c)one week d) depends on the need
Q6) Do really these techniques increases sales? a) Every time b)Sometimes b)Someti mes c) Generally d) No they don`t
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? A
7.
Does it help to introduce a new product? a) Yes
b) No
c) can`t say
42
