Impact of promotional activity on the sale of TFR products

(THE FURNITURE REPUBLIC)LIVE SMART,BUY RIGHT

OBJECTIVE OF PROJECT• The primary objective of project to understand the

impact of promotional activity in the sales of The Furniture Republic “TFR” products.

• The secondary objectives:-1. To identify the factor that increase brand

awareness.2. To identify the factors which influences the

customer decision to choose a retail outlet.

RESEARCH METHODOLOGY

• The research method used is Exploratory Research.• Primary and Secondary research has been done.• Data collection through Questionnaire:Surveyed area : 1.Outside store:

Noida127,Sector18,vasundhra,TCS,Correntham and many more

2.In store : From customers

4 P’s Of marketing

• PRODUCT:- Product comprises of functionality, brand, packaging , servicing

• PRICE:- List price , discount, bundle price& credit terms.

• PLACE:-Channel ,inventory, logistics& distribution.

• PROMOTION:- Advertise , sales force, Publicity & Sales promotions.

  BTL activities:-

• At Olive County:-To bring in the visitors of Olive County to the demo flat so that the glimpse of the quality of furniture and design of the flat could be shown to the potential customers.

• Distribution of TFR Express (a kind of flyer). A flyer or flier also called a circular, handbill or leaflet, which we distributed in public places to make customers aware of the newly opened world class furniture store and to bring them to the store.

• Telecalling the visited potential customer and taking their feedback and to aware them about the new product arrival and offerings.

 Other activities:-• Sending the greetings (mailers) from THE FURNITURE REPUBLIC to the visitors and

prospective customers.• Retail sales at THE FURNITURE REPUBLIC• Inventory management (inventory matching, barcoding and price tagging etc.)

Activities performed by me in TFR

QUESTIONNAIRE & DATA ANALYSIS

1.What is your perception about promotional schemes of TFR?

53%

32%

15%

perception

genuinenot genuinedoubtful

Interpretation: - The sample size is 100. Data collected by these people indicate

the perception about sales promotion in the real consumer mind and finally it’s reflecting in its purchasing behavior. According to data, 53% confirm the geniuses of sales promotion scheme. 32% goes other way and rest 15% are not sure about sales promotion scheme. The total percentage which is around 47% of consumer are either not confirm or sure that this sales promotion scheme actually fooling and misleading the consumer.

2.Are you interested in promotional schemes of TFR?

49%

11%

40%

Interest

yesnodepend on scheme

Interpretation:  -  Promotional scheme are made for creating interest in

consumer mind to attract attention of consumer and generate new consumer. This data show that 49% are attracted and 40% are dependent on the nature of scheme. This indicates that if you give fair deal to consumer they are ready to increase their purchase. Only 11% are against to the scheme, which is very less in number and does not effect to analysis.

3.Which is beneficial for you?

63%

37%

beneficial

cash discountfree gift

Interpretation:  - According to most of the consumer cash discount is more

beneficial than free gift. 63% goes with cash discount and rest with gift. Cash discount gives direct saving option to consumer, but whether gift is useful to particular consumer or not it’s a big question?

4.Whether promotional schemes will be recommended by you?

76%

24%

recommendation

yesno

Interpretation:  - The main purpose of promotional scheme is to generate

awareness and interest in consumer. And recommendation is the best tool for this, and this is proved by this survey in which 76% are agree to recommend the promotional scheme.

5.What is reason for not recommending?

34%

17%

36%

13%

reasons for not recommending

product quality

sfter sales service

genuineness

durability

Interpretation:  - Promotional scheme can go either way. So better, we find

main reason for not getting that amount of recommendation. According to data, credibility of scheme and product quality is the highest factor which force for recommendation. After sale service and durability of product are one of the factors which force the recommendation.

6.Will you go to other brand with promotional schemes or your regular brand without scheme?

36%

43%

21%

switching

regular branddepend on schemeother brand

Interpretation:  -  This data indicate that switching to other brand is highly

depending on the nature of scheme. 43% and 21% are ready to change their brand preference. Only 36% are brand loyal.

7.Do you wait for promotional schemes for purchasing products and services for your household?

18%

48%

34%

wait for promotional scheme

yesnodepend on scheme

Interpretation: - For households items as expected, almost half of population

i.e. 48% is not wait for promotional scheme. 34% decision is depend on the scheme and only 18% can wait.

8.Do you wait for promotional schemes for purchasing luxury and non-necessity products and services?

65%9%

26%

wait for promotional schemes for luxury item

yesnodepend on scheme

Interpretation: - Some data show exact opposite result, 65% are going to wait for

purchasing luxury item. Only 9% can’t wait rest 26% will depend on scheme.

9.Products offered in promotional schemes often have low quality?

11%13%

17%

29%

30%

strongly disagreedisagreemay beagreestrongly agree

Interpretation: -  29% and 30% i.e. 59%of consumer believes that quality of product is decreased that’s why they come with promotion. 24% think that product quality is same and 17% are not sure.

10.How did you know about TFR?

• Interpretation: -most of the customer come to store through advertisement then the second highest were walk-ins that means place of store impact the sale.

15%

36%

15%

34%

How did you know about tfr

Word of mouthAdvertisingHordingsJust saw the store

11.Sales promotion increases your volume of product and services purchased?

3% 12%

37%30%

18%

strongly disagreedisagreemay beagreestrongly agree

Interpretation:-  This data show that sales promotion increase the volume of purchasing habit. 48% agree with that they increase of volume and 37% are not sure . 12% and 3% are denying this statement.

12.Reasons for purchasing the products?

010203040

3934

50

13 11

0 0

29

reason for purchasing

reason for purchasing

Interpretation: - the data show the actual reason for buying the products. Promotion and product satisfaction are the main reasons for buying behavior. Advertisement also plays a part in deciding consumer buying behavior

13.Considering your consumption of the product and the purchase of the product due to promotional

scheme, which sentence best describes your purchase decision?

3%

53%27%

17%

purchase decision

more than neededsomewhat more than needaesame smountless than neededmuch less than needed

Interpretation: - according to this data, more than half agree with increase in the

consumption. 27% say that their consumption is as same as before scheme. 17% their demand decreases with promotional schemes.

14.Given below are some common types of promotions that are used by marketers to sell their

products. Considering everything, can you please rank these in the order of your preference? Give a rank of 1

to the most preferred, 2 to next most preferred and so on.

Direct

Price d

iscount

Buy 1 ge

t 1 fr

ee

Buy 1 ge

t disc

ount on an

other

Redee

mable

discount c

oupons

Contests

and sw

eepsta

kes

Exch

ange

offers

Product

warran

ties

Bonus pack

samples

05

10152025

2520

15

0 0

10

18

7 5

rank

rank

Interpretation:  - according to the data, consumer prefer direct price discount

then getting two product for the price of one and warrantee is third largest acc. to the sample

15.Considering the product that you have purchased, can you tell how do you come to know about the promotional scheme?

From new

spap

er ad

From te

levisio

n ad

From ra

dio/FM ch

annels

Came t

o know w

hen vi

sited

the s

tore

From fr

iends/n

eighbors

From th

e disp

lays

Others (p

lease

speci

fy)0

10

20

3013

34

16 1317

80

promotional medium

promotional medium

Interpretation:  - a television ad is the most effective medium for sales promotion.

Other mediums accepted by consumer are newspaper, radio advertisement.

16.Can you tell the reasons for purchasing the same brand again?

Promotions

Product

Satisfa

ction

Good Packag

ing

Non avail

abilit

y of o

ther bran

ds

Recommen

dation to

purchase

No particu

lar re

ason

Just pick

ed it

off the s

helf

Liked

what

I read

about th

e pro

duct on th

e pack

aging

Liked

the a

dverti

semen

t of th

e pro

duct0

1020304050607080

17

72

07

0 0 0 0 4

reasons for repurchasing

reasons for repurchasing

FINDINGS AND CONCLUSIONS

• Most of the consumers were interested in sales

promotional activities. Majority of consumer believe

the genuineness of sales promotional scheme.

• Consumer is interested in promotional scheme and if

companies provide quality scheme which is suited for

consumer, they will go for their product..

• Consumer prefers cash discount more rather than gift

• Promotional schemes are given on the cost of quality. Quality of the

product must be maintained for gaining more customer confidence.

And if it is maintained then the volume of the purchase will increase

at very fast rate.

• Purchasing decision is most influenced by promotional activities,

product quality and advertisement for first time purchasing. For

repurchasing of products, promotional activities go to the back seat.

Only product quality and genuineness can result in repurchasing. So

companies have to focus in the quality as well as genuineness

• promotional schemes increase the volume of purchase

• Direct price discount, warranty and buy 1 get 1 offers are the most

accepted sales promotion by consumers. In addition, contest and

discount coupons are the least trusted sales promotion scheme

• Television advertisement is the most effective medium of sales

promotion along with radio and newspaper advertisement.

Advertisement material displayed outside store is the last influential

medium of sales promotion

• Most of the consumers are ready for recommending the scheme.

Product quality and genuineness of scheme is the main reason for

recommending any promotional scheme.

THANK YOU