sweety mt 2 final

8/9/2019 Sweety Mt 2 Final

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MANAGEMENTTHESIS llDO FREE GIFT WITH PURCHASE

ACT IN THE SAME WAY AS PRICE

PROMOTION IN DHANBAD(BIG

BAZAAR,RELIANCE FRESH)

BySweety MishraEnrollment no-8NBDB017


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MANAGEMENT THESIS ll

FINAL REPORT

DO FREE GIFT WITH PURCHASE ACT IN

THE SAME WAY AS PRICE PROMOTION IN

DHANBAD(BIG BAZAAR,RELIANCE FRESH)

UNDER THE GUIDANCE OF :

MISS PURNIMA SARKAR

A report submitted in partial fulfillment of the

requirement for the award of the degree in MBA to

ICFAI National College.

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Certificate

It is certified that the Management Thesis title Do free gift with purchase act in thesame way as price promotion has been carried out by Sweety Mishra Enroll. No8NBDB017 it is also certified that all the modifications suggested have been incorporatedin the report.

Date: Signature of faculty

Place: IUJNC, Dhanbad

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Acknowledgement

It gives me immense pleasure to have this opportunity to thanks to all those people whohelped me to do my Thesis successfully. First of all I would like to thanks our HonorableCenter Head Mrs. R.Bhattacharya, who provides me an opportunity to do this Thesis insuch a healthy environment and with other infrastructure facilities which initiated andhelped me a lot to work and go ahead with my thesis.

I would also like to take this opportunity to thanks my Faculty supervisor Ms. PurnimaSarkar under whose able guidance I was able to carry out this Thesis successfully.

I owe my special thanks to entire faculties of IUJNC, Dhanbad for theirsupport during management thesis.

I specially wish to thanks my Parents who helped me financially as well as morally incompleting my Thesis.

Thanking you, Sweety Mishra

IUJNC,Dhanbad

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TABLE OF CONTENT

Acknowledgement 4

Abstract 6

Introduction 7Objectives and limitation 13

Research design,method 15

Empirical analysis 16

Finding and suggestion 29

Conclusion 30

Appendices 31

referance 33

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ABSTRACT

It is all about the study of Free gift with purchase act in the same way as pricepromotion which is one of the marketing strategies used by different companies to grabbetter opportunities available in the market. There are lots of promotional tools used bydifferent organization; promotion not in the sense of only sales but also price, free giftalong with purchase is one of the best ways to promote sales and price.

Here we have to analyze that how customers reacts with those products which are whichare coming in the market with some special discount schemes, like; free gift along withpurchase, Is the customer behave in the positive manner or they dont like and also the

motive behind this gift is successful is or not and if it is successful, than up to what extent.Its a general tendency of company, they increase in the price of product and provide

some gifts along with purchase, and after some period they remove gift item withoutchanging in the price. Here we can see how customers are benefitted in short run and justopposite organization benefitted in the long run with charging high range of price.

As we are knowing that market is dynamic in nature, and it is changing day by daybecause of increase in competition, changing needs and wants of the individual, changingmarket scenario. So every organization wants to satisfy customers by serving them in thebest way. For that companies are using different mkting technique to attract morecustomers and if company gets success in this in Result Company can generate high

turnover and also enjoys profits.

In different techniques offering free gift is also a sale and as well as price promotion. Inthis technique company decrease their expenditure in advertising part and allow some giftwith purchase and little bit increase in the product, due to this company promote otherproduct also, and attract customers towards themselves it also increase sales. Andcustomers are also get benefited in short run and company in long run, just because whenthe product is captured a huge market then company take out gifts product but they arenot going to decrease the price of the product

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INTRODUCTION

The topic of Management Thesis A study on the free gift offers by the retail outlets indhanbad (big bazaar and vishal mega mart) is all about consumer purchasing strategy andwhat is their thinking about that product which is sold in the market at free of cost. Fore.g. buy two get one free, with the purchase of 5kg of sugar get one Colgate free, etc. Issuch type of strategy is really effective? In this segment,

I analyzed the customer`s perceptions about the product. Now a day free gift promotionstrategy is becoming very popular to the customer. When such type of offer is providedby the company then the main objective of the company is to attract more and morecustomer to the store. When such type of schemes is there, then for a moment a customer

think if he is providing such type of scheme then let`s try once.

If he finds that the quality of the product is good then regularly he uses that product. Themain objective of providing free gift is to attract more and more customer, increase salesvolume and make people awareness about the product.

The free gift offers with the purchase of the product is one of the marketing strategiesused by different companies to grab the better opportunities available in the market. Thereare lots of promotional tools like price promotion, coupons etc, used by differentorganization. But free gift is one of the best ways to promote; promotion is not in the

sense of only sales but also price.Sales Promotion: An activity taken up to boost the sales of a product is defined as

sales promotion.Purpose of Sales Promotion: Main purpose is to boost the sales of a product by

creating demand.Also help in achieving the

Encourage the customers to try a new product.

Attract new customers.

Counter a competitor`s promotional activities.

Marketers use sales promotion to introduce a new product or brand, or promote theexisting brand. But retailers use sales promotion to attract customers to their stores. Theyuse

Price Promotions

Coupons

Free gifts

Money refunds and rebates

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Frequent user incentives

Point-of-purchase

Installment offers

Consumer contest

Consumer sweepstakes

Trade shows

IMPORTANCE OF SALES PROMOTION:-

Seller introduces new products or new brands in the market.

The seller aims at triggering the impulse buying behavior of the customers.

A company seeks to obtain greater cooperation from its retailers.

CONSUMER SALES PROMOTION METHODS

Price promotion: Price promotions are also commonly calledPrice discounting. They offer either a discount on the normal sellingprice of the product or more of the product at the same price.

Coupons :Offering coupons is the most widely used customer salespromotion technique. It is another way of offering discount. A coupon iscertified that offers a price reduction for some specified items to theholders.

Free gifts : Free samples of a new product are usually given tocustomers, when it is launched in the market. Gifts with purchase is avery common promotional technique. It is also called premiumpromotion as the customer gets something in addition to the mainpurchase. For example, if a customer buys Colgate toothpaste, he gets aColgate toothbrush free. Offering free gifts is the most expensive form of

sales promotion. Marketers use this technique to increase their salesvolume in the early stage of the product life cycle.

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Buy two Colgate toothpaste get one forever cream.

Developing a gift for gifting and a flair forpromotions

In the ever-changing scenario of sales promotions, a company has to crest the wave ofchange rather than merely flow with the tide, if its promotions are to be effective. Bothgifts and strategies should be innovative enough to elicit an excited response from theconsumer.

The very word 'gift conjures up a pleasant image indeed, and mercenary thoughts like themotive behind them, seemingly have no place anywhere near it. But the fact remains that

all gifts are given with a purpose

In the corporate world, depending on the reason for gifting, gifts are broadly classifiedinto two types - gifts to promote goodwill and gifts to promote sales.Some promotional strategies have fared consistently well through time. One such is theage-old 'one for one', or 'three for the price of two' kinds of promotions.

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From the local vegetable vendor who lures customers with his char ka ek, dus ka teensales pitch to the FMCG giant Hindustan Lever who offers two bottles of Vim dish washliquid for the price of one, with even the free scrubber enjoying the one for one scheme;everyone has tried and experienced the effectiveness of this particular strategy.

The 'more for the same price' scheme works, but the cost involved is high, as themanufacturing cost of the appropriate container is steep. But if the company plans to usethe same scheme the succeeding year also, it is cost-effective.

Indias retail industry is worlds second largest untapped market(after China)

Retail Outlet: Selling of merchandise directly to the consumer. Retailing began

several thousand years ago with peddlers hawking their wares at the earliest marketplaces.It is extremely competitive, and the failure rate of retail establishments is relatively high.Price is the most important arena of competition, but other factors include convenience oflocation, selection and display of merchandise, attractiveness of the establishment, andreputation. The diversity of retailing is evident in the many forms it now takes, includingvending machines, door-to-door and telephone sales, direct-mail marketing, the Internet,discount houses, specialty stores, department stores, supermarkets, and consumercooperatives.

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Presently in India unorganized market accounts for: Rs. 583,000 crores (Approx) andOrganized market accounting for Rs.5,000 crores (Approx). Opening of more than 1000new modern Outlets during last 3 5 years is an indication of growth in organizedretailing, which is likely to grow upto Rs.35,000 crores or more in the next couple of

years. Organized retail accounts for barely 3.5% of total retail business, giving it massiveupside potential. CRIS, in its outlook, estimates that organized retail accounts for sales ofonly Rs.35,000 crore in an estimated Rs.10,00,000 crores market. According to anestimate, the organized retail will grow upto Rs.1,00,000 crore by 2010.

According to survey by CII the present value of Indian market is $180 billion andgrowth rate is 6-7% and expecting around $300 billion by 2010.Accounting for more than 10% of the countrys GDP and around 8% of the employment,retail industry in India is at an interesting crossroads. It has emerged as one of the mostdynamic and fast paced industries with several players entering the market.

Major players are on Food and grocery and Fashion department others prominentones being Food world, Shoppers' Stop, Subhiksha, Westside, Planet M, Lifestyle, MusicWorld, Crossword, Globus, Reliance .

BIG

BAZAR in DHANBAD

Big Bazaar is not just another hypermarket. It caters to every need of our family. WhereBig Bazaar scores over other stores is its value for money proposition for the Indiancustomers.At Big Bazaar, you will definitely get the best products at the best prices - thats what

they guarantee. With the ever increasing array of private labels, it has opened the doorsinto the world offashion and general merchandise including home furnishings, utensils,crockery, cutlery, sports goods and much more. And this is just the beginning. Big

Bazaar plans to add much more to complete our shopping experience. Big Bazaar is achain of hypermarkets in India, with more than 100 stores in operation. It is a subsidiaryof Pantaloon Retail India Ltd's, Future Group, and follows the business model of United

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States-based Wal Mart. Also Big Bazaar offers the lowest price for pretty much anythingand everything. Their prices are considerable low and also are well stocked.

Buy two get one free gift store

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Reliance Fresh a convenient store format, is governed by the Mukesh Ambaniand is the most important part of Reliance Industries retail Business. Reliance Ltd. has

planned to invest more than Rs. 25000 crores in the retail division.

It also comprises more than 560 reliance fresh stores all over the country. The outlet sells

fresh fruits, staples, dairy products, fresh juice bars, groceries and vegetables. A

distinctive Reliance Fresh outlet is around 3000 to 4000 sq. feet and accommodates

catchment area of one to three Kilometers.

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OBJECTIVE

The core motive behind this study conducted is

To find out the benefits of offering gifts as a promotional strategy for customers

satisfaction with the ultimate objective of customers delight.

To know whether this strategy would ultimately result in winning over a customer

from the competitors.

LIMITATIONS

Though the present study aims to achieve the above-mentioned objectives in fullearnest and accuracy, it may be hampered due to certain limitations. Some of thelimitations of this study may be summarized as follows:

1) Time is one of the constraints while conducting a research programme so samplesize is limited. As I have to attend my classes I dont have enough time to visitpeople.

2) Getting accurate responses from the respondents is not as easy as many of themnot provide the accurate information due to some of their personal reasons

.3) They may be partial or refuse to cooperate.

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Research Design/Methodology

A. Research Plan

a) Research Type: Exploratory research.

b) Research Methods: data collection.

c) Research Tools: Close ended Questionnaire.

B. Sampling Plan

a) Sample Population area target: Saraidhela

b) Sample Population type/unit: 2000

c) Sampling Method: Convenient Sampling

d) Sample Size: 100

C. Data Sourcea) Primary Data Source: Questionnaire.

b) Secondary Data Source:bigbazaar.com, reliancefresh.com,retailoutlet.com, journals, etc.

D. Data Collection ToolsPrimary Data collection tool is used for collection of data.

Empirical Analysis :

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E. Hypothesisa) Null Hypothesis

H0 = free gift with purchase act in the same way as price

promotion

b) Alternative Hypothesis

H1 =. free gift with purchase does not act in the same way as pricepromotion

BIG

BAZAAR

RELIANCE

FRESH

Customer who

agree that free gift

act as a price

promotion

42 35

Customer who do

not agree that free

gift act as a price

promotion

14 09

56 44

No.of people who agrees that free gift act as a price promotion

= 42+35/100

= 0.77

No.of people who do not agrees that free gift act as a price promotion

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= 14+9/100

= 0.23

Frequency Big bazaar Reliance fresh

Sample 56 44

*.77 *.77

Fe 43.12 33.88

Sample 56

*.23

44

*.23Fe 12.88 10.12

Chi square calculation

fo fe fo-fe (fo-fe)2 (fo -fe)/ fe56 43.12 12.88 165.89 3.84

44 33.88 10.12 102.41 3.02

total 6.86

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= (fo- fe)/fe

= 6.86 chi square value

Calculation of Degree of freedom

=(no. of rows-1)(no.of column-1)

=(2-1)(2-1)

=1*1

=1

Level of significance =0.10

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Value of chi square distribution with 1 degree of

freedom at significance level 0.10 is 2.706 which is

within acceptance region thus null hypothesis is

accepted

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What do you think about the free gift offers?a) These are for attracting the customers.

63%

b) These are means of befooling the customers.6%

c) Both.28%

d)None.

3%

Are you satisfied with the free gift strategy adopted by thecompanies?

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63%6%

28%

3%

attracting customer

befooling customer

both

none


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o Agree 79%

o Disagree 21%

Do you like the free gift offers offered in the retail outlets?

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Yes. 92% b) No 8%

92%

8%

00

like free gift offer

Which product attracts you best, along with purchaseit provides you?

Free gift 68%

Cash discount 15%

Combo pack 17%

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68%

15% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

free gift cash discount combo pack

products attracts best

Colum

Colum

Series

Retail outlets are better option than traditional stationery shops.

91.3

8.6

0

10

20

30

40

50

60

70

80

90

100

%age

%ag

Retail offers better guarantee of quality and price of products .

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Free gift are of inferior quality than the original ones.

73.3

26.6

0

20

40

60

80

Yes No

%age

Yes

No

Retail outlets will not be able to make profit without these free gift offers.

84.6

15.3

%age

Yes

No

How often you go to a store when any sales promotion like free gift scheme is there

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1-2 times 2-3 times More than 3 times

40 38 22

Ans. 5)

1-2 times

2-3 times

More than 3 times

Do you think by providing free gift schemes both customer and company get

benefited?

Yes No Can't say

53 31 16

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0

10

20

30

40

50

60

Yes No Can't say

Series1

Why do you think that free gifts are given by the company?

Expiry date is near Minimize inventory sell large no. of volume

6 33 61

Ans.8)

Expiry date is near

Minimize inventory

sell large no. of

volume

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You prefer stationary shops over retail outlets if they offer same free gift offers.

41.3

58.6

%age

Ye

No

Offering more free gift offers have better sales than others.

83.3

16.6

0

20

40

60

80

100

Yes No

%age

Yes

No

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Finding And Suggestions

According to primary data which I have collected to make my thesis meaningful I come toknow that from the chosen size 86.6% of the people prefer free gifts.

Among them 66.6% people think these offers are for attracting the customers, 5.3%people think these are means of befooling the customers and 28% think these offers arefor both. 91.3% people prefer retail outlets and 83.3% people like both, quality and priceof products in retail outlets.These offers mostly like in all time almost 54% like. The data I have collected from thechosen size 47.3% people rank this free gift offers as average, 37.3% as good, 10.6% asvery good and 4.6% as bad.After completing my thesis I think that most people like these offers very frequently. Sothese retail outlets must offer these offer at regular interval.

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Conclusion

After completing the survey following things are concluded:-

Out of 100, 72 % of the respondents are satisfied by the free gift strategy adoptedby the company.

Out of 100, 79% of the respondents think that by providing free Gift Companypromotes their product and brand.

When a company provides free gift then most of the people believe that qualitydoes not remains same in free gifts.

The main objective of the company behind providing free gift is to increase theirsales volume and also attract more and more customer.

By providing free gifts a company tries to motivate and retain the existencecustomer.

Most of the respondents were thinking that in place of free gift they want pricediscount.

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Appendices

QUESTIONNAIRE

What is your name?What is your address and contact no? (If possible)

Which type of shops you really like to visit for purchase of

1) Which type of shops you really like to visit for purchase ofF.M.C.G.?

Departmental store Hyper market Super-Hyper market

2) Which product attracts you best, along with purchase itprovides you?

Free gifts Cash discounts Combo pack

3) Please rank with in 10 according to yours purchasing

priority:-Free gifts Cash discounts Combo pack

4) Do you made your purchase convincing through these offers?

Yes No

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Address:

Contact no.


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5) What do you think about the free gift offers?

a) These are for attracting the customers.b) These are means of befooling the customers.c) Both.d) None.

6) Do you like the free gift offers offered in the retailoutlets?

a) Yes. b) No

7) Rank with in 10 the retail store as per your pre and post purchase

impressionBig bazaar

Reliance fresh

City style

8) Is it merely the free gift that attracts you to the store or brandspeaks for itself?

Big bazaar

Reliance fresh

City style

9)When you will prefer these offers most?

a) In festivals. b) At regular intervals.c) All time.

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10) Do you think there is no hidden cost in free gift?a) Yes b) No

REFERENCES

Marketing Management course book.

Consumer Behaviour course book. Www.google.com

Business research management ,ICFAIPublisher

Service markrting book. www.Scribd.com www.docstoc.com www.bigbazaar.com www.reliancefresh.com

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http://www.google.com/http://www.scribd.com/http://www.docstoc.com/http://www.bigbazaar.com/http://www.reliancefresh.com/http://www.google.com/http://www.scribd.com/http://www.docstoc.com/http://www.bigbazaar.com/http://www.reliancefresh.com/


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sweety mt 2 final

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