FINAL YEAR BBA (H) STUDY

PAPER ON

“Impact of sales promotion on FMGC products in

Organized Retail”

NAME:- SUBHO JANA(15405015054)

RONI BHATTACHARYA(15405015035)

SAGAR NAYAK(15405015037)

SILADITYA ROY(15405015045)

BISHAL DAS(15405015006)

STREAM:- BBA(H) SEMESTER:-6TH

SESSION:- 2015-2018

COLLEGE:- DINABANDHU ANDREWS INSTITUTE OF TECHNOLOGY AND

MANAGEMENT

UNIVERSITY-MAULANA ABUL KALAM AZAD UNIVERSITY OF

TECHONOLOGY ,WEST BENG

SUBMITTED

BY:-

CONTENT

1.ACKNOWLEDGEMENT

2.INTRODUCTION

3.OBJECTIVE

4.COMPANY PROFILE

5.ANALYSIS AND

INTERPRETATION

6. CONCLUSION

7. BIBIOGRAPHY

ACKNOWLEDGEMENT

I take this opportunity in expressing the fact that

this project report is the result of incredible

amount of encouragement, co-operation and

moral support that I have received from others .

Words alone cannot express my deep sense of

gratitude to Sohini Majumdar who provided me

an opportunity to do a project on” Impact of

sales promotion on FMGC products

in Organized Retail” ”.Her valuable

guidance and support made this project work an

enlightening educational experience. Her

consistent support and co-operation showed the

way towards the successful completion of project.

I would like to express my deep sense of

gratitude to all the members ,who directly or

indirectly helped me during my project work

Introduction

Definition of 4P- The marketing mix refers to the set of actions, or

tactics, that a company uses to promote its brand or product in the

market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix

increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Definition of Sales promotion:

It increases sales in the immediate time frame .It

also helps in introducing new product to the market.

It motivates the salesmen to sell more and sell the

full line out products. It adds excitements to the

company’s merchandise within the store. With the

help of sales promotion one can easily launch new

products to the trade as well as the customers.

As already explained in the earlier slide there are

2 types of sales promotion used by the firms,

1)Trade promotion

2) Consumer promotion

Trade Promotion - A few trade promotion objectives and vehicles

are as follows-

Objectives –

1.Pushing the products through the intermediaries

2. Persuading them to carry more units than the normal level 3. Enthusing them to participate in company-sponsored

promotion actives

Vehicles –

1.Trade allowances, these are of various kinds : Merchandise allowances/incentive for shelf space (Extra

allowances for additional shelf space and

merchandising), display allowances. 2.Display contests/prizes. 3.Sales contests/prizes.

Consumer Promotion – Some of the very common

objectives and vehicles for the consumer promotion are as

follows –

Objectives –

1.To engage and induce trail and purchase of a product 2.Increase rate of the purchase

3.Generate consumer interest, which should lead to trail

Vehicles –

1.Coupons

2.Gifs

3.Free samples

4.Exchange offers

5.Demonstratons

Objectives for sales promotion

Building Product Awareness – Several sales promotion techniques are

highly effective in exposing customers to products for the first time and

can series as key promotional components in the early stages of new

product introduction Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added

advantage of capturing customer information at the time of exposure to

the promotion In this way sales promotion can act as an effective

customer information gathering tool (i.e., sales lead generation), which

can then be used as part of follow-up marketing efforts

Creating Interest – Marketers find that sales promotions are very effective

in creating interest in a product In fact, creating interest is often

considered the most important use of sales promotion In the retail industry an appealing sales promotions can significantly increase

customer traffic to retail outlets Internet marketers can use similar approaches to bolster the number of website inexperience Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers

to try products for free or at low cost

Providing Information – Generally sales promotion techniques are

designed to move customers to some action and are rarely simply

informational in nature However, some sales promotions do offer customers access to product information For instance, a promotion may

allow customers to try a fee-based online service for free for several days

This free access may include receiving product information via email Reinforcing the Brand – Once customers has made a purchase sales

promotion can be used to both encourage additional purchasing and also

as a reward for purchase loyalty (see loyalty programs below)n Many

companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register

Company Profile

• About Spencer - Spencer’s Retail Limited, part of RP

Sanjiv Goenka Group, is a multi-format retailer providing a wide

range of quality products across categories such as food, personal care, fashion, home essentials, electrical and electronics

to its key consumers. Specialty sections such as Spencer’s

Gourmet, Patisserie, Wine and Liquor, and the recently launched

Epicuisine section are some of the key differentiators in our

hypermarket stores

Spencer’s, being one of the earliest entrants into

the retail space in India, introduced the Indian consumer to the

concept of organized retailing. The first ever hypermarket in India

was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs 120 stores, including 37 Hyper stores in over 35

cites in India.

Spencer’s brand positioning – Makes

Fine Living Affordable – embodies its philosophy of delighting

shoppers with the best products and services that enable a fine

living at reasonable prices, while providing them with a warm, friendly and educational retail environment.

Heritage

Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time, the Spencer’s Empire stretched from

Peshawar to Cochin, from Karachi to Chittagong, spanning the

length and width of undivided India. Originally owned by a British

gentleman – yes, there was a Mr. Spencer (John William Spencer, to be precise) – it acquired Indian ownership in the 1960s, and

became part of the RPG Group in 1989. In 1995, RPG Enterprises, the flagship company of the RPG Group, launched 'Food world' as a joint venture with Hong-Kong based

Dairy Farm International. The joint venture, which operated

supermarkets under the name 'Food world' and hypermarkets

under the name 'Giant', was terminated in 2006. RPG retained 48

of the 93 stores it owned. These were re-furbished and their

launch under the brand name, Spencer’s, kicked of a new phase in

both the history of the Spencer’s brand, and retail in India. Since inception Spencer’s has been a consumer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping consumer needs and satisfaction center-stage. Back in 1920, we were the first grocery chain in India. In 1980, we

became the first supermarket chain, and in 2001, we introduced

India to the joys of hypermarket shopping. What has remained unchanged for 150 years is the trust that the

Spencer’s brand evokes. To the consumer, it carries the promise of

innovation, quality, and service; the confidence that they will always be able to find a Spencer’s store at a convenient location; that it will have a pleasant ambience; and that it will offer a wide

range of products at affordable prices.

Innovations

Spencer’s has constantly helped reshape the retail landscape in India, introducing a host of innovations to make shopping even more

convenient and enjoyable for the consumer. It’s a common perception

that all supermarkets and hypermarkets sell the same things. However, Spencer’s proves that wrong. While it does stock a lot of what others

stock, it puts in a great deal of effort to stock a unique range of products as well. Spencer’s Gourmet Centre: Run by a food scientist Cordon Bleu

Chef, the food innovation wing researches world cuisines and develops

recipes for a wide range of popular and trendsetting dishes. These form

the basis for developing its own range of products, which includes

delicious cookies, sauces, pickles, juices and jams. Spencer's Patisserie: The goodies from the patisserie are freshly baked

daily in the live bakeries situated within the hypermarkets. The

offerings include specialty breads, bakery and confectionary items, crafted from Indian and International recipes. The selection includes

specialty breads such as the Italian Focaccia, the French Baguette, the

Mexican Spicy Salsa Picante Bread, the Indian Masala Bread, and the

regular white, multigrain, whole wheat and masala breads. The bakery

also churns out hot puffs, dry fruit cakes, assorted cookies , cakes and

pastries. Spencer’s Gourmet: A special section in it’s hypermarkets that retails

over 4000 products from the finest locales around the world, the

Spencer’s Gourmet section is the perfect spot for the well-travelled

food connoisseur. It’s the best place to buy international ingredients, be

it for Thai, Chinese, Indonesian, American, Chilean, Argentinean, Italian, French, Spanish, Sri Lankan, British or Japanese dishes.

Fish & Meat: Spencer’s has a dedicated space to sell fresh non- vegetarian items, be it the finest pre-packaged cold cuts or fresh

seafood – right from live tanks in-store. Epicuisine: Spencer’s recently launched a new section called

Epicuisine, which serves ready to eat dishes and ready to drink juices, some from its very own live in-store kitchen, and some packaged from

popular restaurants and caterers in the geography. Edutainment Booklets: Want to serve wine but not sure how? Want a

recipe for preparing cheese fondue? Curious to know why organic food

is supposed to be better for you? Pick up a booklet and find out. From

the story of olive oil to the origins of cocktails, the Spencer’s

edutainment booklets tell you about the products on offer and how to

use them. Live Kitchens: Live Counters with Master Chefs preparing gourmet delights are always popular at buffets. Spencer’s brought the concept to its stores in the form of the Spencer’s Chef Corner, a first-of-its-kind

in-store experience that involved customers. From Salads to Sushi, Pastas to Satays to Cheese, the Spencer’s Chef Corner gives customers

an opportunity to learn more about their favorite world cuisines. Wine & Spirits: Wine ignoramuses or aficionados, this section caters to

both, with a wide range of wines expertly selected from as many as

181 countries. Spencer’s was, in fact, the first Indian retailer to offer a

selection of Wine & Spirits in its stores, and the first to present an in- store wine and cheese tasting experience to shoppers.

Differentiators

Spencer’s has chosen to differentiate by establishing itself as the

preferred shopping destination for young customers looking for a range

of quality products that allows them to indulge in a global lifestyle, yet at affordable prices. It’s brand image of - Makes Fine Living Affordable

stands - testimony to this philosophy. From daily to weekly to specialty

shopping, Spencer’s strives to fulfill every need and provide maximum

convenience. Specifically, the following distinguish the Spencer’s brand

and create a memorable all-encompassing shopping experience for its

shoppers: Products – Spencer’s offers the widest assortment of food and lifestyle

(fashion, home, entertainment), dealing both, with brands and private

labels. It has different special sections within its hypermarkets to

delight the customer

Quality – Quality is a major reason why Spencer’s is well-regard by it’s

shoppers. Spencer’s lays a huge emphasis on all-round quality in

products, stores, service standards, and customer engagement programs. It’s “Quality since 1863” tagline has stood the test of time. Heritage – Spencer’s is India’s oldest retailer tracing its roots back

to1863. The brand has many firsts to its credits. Innovations/Specialty – In Spencer’s hypermarkets, the shopper can

find specialty sections such as a live bakery, the patisserie, a nut’s

counter, a dedicated wine & liquor section, and Epicuisine. Promotions – Spencer’s seek to offer the right products at the right time at the right price, with promotions carefully designed to suit the

needs and wants of the consumers monthly, weekly and daily shopping

basket. Brand Imagery – Spencer’s stores have contemporary and international interiors, and it's extensively trained staff strive to make customers feel at home while they shop, with a welcoming and trusted aptitude.

Pictures of Spencer’s

Analysis and interpretation

We have found that these sales promotion techniques are being

used mostly in Spencer's –

A) Gift- Companies distribute gifs to gain direct as well as indirect sales promotion effect .When they distribute them to consumer and

dealers with a link to sell it is a case of direct sell promotion . B) Coupons- Coupons are certificates that offers price reductions to

consumer for specified item. Coupons are distributed through news

papers and magazine advertisement or through the package of the

goods . C) Free samples- Free sample means offering a small quantity of a

product free in order to persuade consumer to try that product .Free

samples are mainly distributed when a new product is released into

the market . D) Exchange offer- In consumer durable market exchange offer has

become the common sales promotion tool. Consumer surrender their

old product (TV, Mobile) for a certain price and take home a new

model of that product. E) Demonstrations- Usually companies resort to product demonstration (Demo) as a part of sales promotion . When they come

up with a product that is new to the market they send out few of those product as a sample (Demo)

F) Visual merchandising- Visual merchandising refers to anything that can be seen by the customer inside and outside a store, including

displays, decorations, signs and layout of space. The overall purpose

of visual merchandising is to get customers to come into the store and

spend money

G) Additional margin- Additional margin is a very efficient way of trade promotion . Usually a company offers Bulk purchasing i.e. purchase of much larger quantities than the usual, for a unit price that is lower than the usual.

But after conducting through analysis we have found these

following kinds of promotion influences the consumer of the

most-

TRADE PROMOTION-

VISUAL MERCHANDISING/DISPLAY-visual

merchandising has a big role in sales promotion . proper visual merchandising /display at store level/point of purchase promotes

sales by promoting the consumer to switch over to the display

brand ,ignoring existing brand loyalties .It also persuades

consumers to buy now rather than later . It also makes the

consumer to buy more then the original intendant quality n

CONSUMER PROMOTION-

Discount-Sale promotions often come in the form of discounts.

Discounts impact the way consumers think and behave when

shopping. The type of savings and its location can affect the way

consumers view a product and affect their purchase decision .The

two most common discounts are price discounts (“on sale items”)

and bonus packs (“bulk items”).Price discounts are the reduction

of an original sale by a certain percentage while bonus packs are

deals in which the consumer receives more for the original price.

DEMONSTRATION & SAMPLING-Demonstrations are

usually performed at large retail locations, such as supermarkets, department or discount stores, or in shopping malls. The products

that are promoted at in-store demonstrations may be food and

beverages, food preparation equipment, housekeeping products, personal care items, or occasionally other types of goods. The

samples that are distributed may either be in readymade packets

pre-assembled for the demonstration, or are prepared on site by

the demonstrator. Some demonstrations involve the distribution of prepared food, requiring the demonstrator to bring equipment such as a microwave oven or hot plate to the location.

Conclusion

As during the last few years Spencer's have evolved

as one of the recognized and respectable FMCG

retail organization, thus all the big brand players are

also running to take space in Spencer's to develop

not only current sales but also to target the right

customer for long run success. And this can be

achieved with appropriate kind of promotion mix in

Spencer's, which is done by Visual Merchandising Many of the FMCG products are being

purchased on impulse from any of the organized

retail, thus visual merchandising has become an

inevitable part of the retail sector. Especially usage

of Bay-breaker, FSU and Cash till POPE is very highly

influential. Any signage or shout-out explaining the offers

running on the product has also been very important to trade up the sales.

Demonstration & Sampling becomes useful only if

the kiosks are placed in right location, right time and

well versed promoter.

BAY-BREAKER FSU

CASH TILL POPE

Bibliography

I have taken reference from the

following-

Website-

En.Wikipedia.com

Books-

• Marketing Management- by

Ramaswamy & Namakumari

• Marketing Management – by

Phillip Kotler