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A Study On Impact of Sales Promotions on Sale of FMCG Products on retail in Ahmedabad

Concept Note
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 20.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages.

Family income is one of the variables which should be considered while designing sales promotion schemes more specifically cash discount. There is significant difference between consumer preference of cash discount and free gift as sales promotion schemes. It is also very clear that consumers prefer cash discount as a sales promotion schemes compare to free gift as a sales promotion scheme. It is found that Consumer deal proneness differs according to marital status. Furthermore, it is also proved that married are more deal prone compare to Unmarried. Added to it Brand Equity perception differs according to employment categories. It is concluded that male prefers the newspaper and point of purchase material as a source to know sales promotion schemes over female.

Overall, Sales promotion scheme on international brand, awareness spread out by word of mouth, Scheme is value added type with immediate benefit is preferred by the customers. So while designing sales promotion schemes and its benefits from the perspectives of the customers above mentioned attributes of the sales promotion schemes should be considered to achieve the objectives of the sales promotion schemes.

Objectives of the Study


Thus the present study is planned with following objectives: 1. To examine the perception of customers on sales promotion 2. To study consumer preferences with respect to sales promotion in FMCG category 3. To understand the media habits of the consumers

Defining the Terms Used in the Study


For the purpose of our study, we follow the definition of sales promotions as a diverse collection of incentive tools, mostly, short term designed to stimulate quicker and/ or greater purchase of particular products/services by consumers (Kotler, 1998). Sales promotions are classified as price and non- price based on the nature promotions (Campbell and Diamond, 1992; Blattberg and Neslin, 1990). Price promotions are defined as promotions such as Coupons, Cents off, Refunds, and Rebates that temporarily reduce the cost of the goods or service (Cooke, 1983). Non- price promotions are defined as promotions such as giveaways (freebees), or contests in which value is temporarily added to the product at full price.

Methodology
The study is based on primary data derived through sample survey using pre-tested structured instrument (questionnaire). In order to study the perception of customers on sales promotion, we will use fast moving consumer durables, personal goods, cosmetic products, perishable products etc. customers as respondents.

The instrument consisted of questions pertaining to experience in availing schemes, interest in schemes, perception about the scheme etc. The questions were framed such a way that we can identify whether they will purchase more during the scheme or not Data will be collected from 100 consumers from various retail malls in Ahmedabad.

Project Guide: Prof. Daisy Kurien

Group Members:
Chetan Panara Kaushal Dhakan Jay Ajudia

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