SI.NO. TOPIC Page no.

1. Abstract

2. Introduction

2.1 Source of credibility

2.2 Advertising Goal

3. Scope of the study

4. Research Objective

5. Hypothesis

6. Research methodology

7. Finding & result

8. Conclusion

9. Suggestion & Recmmendation

10. Limitation of Study

11. Bibliography

CONTENT

A

Project Report

On

“IMPACT OF ADVERTISEMENT IN THE PROMOTION OF

RETAIL OUTLET”

Submitted To

“Ashutosh Mishra”

Submitted By

PRAVEEN KUMAR

ASHISH RANJAN

RAVI KUMAR

VIVEK KUMAR

Through

B.I.T LALPUR

Batch

(2008-11)

DECLARATION

I here by declare that the mini project titled “ROLE OF ADVERTISEMENT IN

THE GROWTH OF RETAIL OUTLET” is a bonafide record of the original work carried

out by me under the supervision of my project guide “Ashutosh Mishra”

towards partial fulfillment for the BBA program of the BIT UNIVERSITY.

I here by declare that this project is the result of my efforts and I have

not received any unprecedented help.

ACKNOWLEDGEMENT

I express my sincere thanks for giving me permission to undertake this project

work. I also thank all the faculty members for helping me in completion of this

project work.

I express my heart-felt gratitude to my guide “f”or his expert and valuable

guidance, constant encouragement that enable & encourage me to complete

this project work successfully.

Last but not the least, I would like to thanks My Parents, friends and

other people who directly or indirectly supported and helped me in

completion of the project.

PRAVEEN KUMAR ASHISH RANJAN

VIVEK KUMAR RAVI KUMAR

PREFACE

We all know how the competition in every sector is transforming the business

environment. In this era of competition, the main driving force is to get fair

and square information about the business. It is well said that "You can do

what you have to do, and sometimes you can do it even better than you think

you can provided that you have right information with you."

With the same spirit, I undertake the writing of this report of the mini

project, because it is fact, that every worthwhile accomplishment, big or little,

has its stages of drudgery and triumph; a beginning, a struggle and a victory.

Being a management student, we must know competition is not only rife but

growing more intense every year. Moreover, every firm wants to rule its

corresponding market and hold the top position. Competition includes all the

actual and potential rival offerings and substitutes that a buyer might consider.

So, it becomes very essential to know the competitors product/services in all

the sense.

So, the mini project titled “ROLE OF ADVERTISEMENT IN THE GROWTH OF

RETAIL OUTLET” is aimed at knowing the competitors product and strategies

with respect to different parameters like specification, features, price,

promotional activities, after sales service, distribution channel etc. And, it is

quiet obvious that this comparative overview about the product and market

survey will help the company in many ways taking into consideration its

important factors of success.

ABSTRACT

Credibility and perception of consumer towards various media influences decision making process of selection of a retail outlet. Retail organization using various means of communication for advertisement and sales promotion that can attract more customers to enhance sales and make life time relation with consumer. Communication is a tool marketers use to persuade consumers to act in a desired way.

Retailers operate in a highly competitive market. Customer have many more choices than ever before ,and retailers increasingly must vie for customer attention just to keep their stores in business. To communicate, to persuade, to influence and to lead to some action is what advertising is all about.

The aim of this study to investigate the attitude, behaviour, perception regarding various means of communication in making selection decision of a particular retail outlet.

INTRODUCTION

Advertising is a form of communication whose purpose is to inform potential customer about products and services and how to obtain and use them. Many advertisement are also designed to generate increased consumption of those products and services through the creation and reinforcement of brand image and brand loyalty. For those purpose advertisement often contain both factual information and persuasive messages. Every major medium is used to deliver these messages, including : television, radio, movies, magazines, newspaper, the internet and billboards. Advertisement are usually placed anywhere like seats of grocery cart, on the walls of retail store etc, an audience can easily and/or frequently access visuals and/or audio and print.

Primarily advertising concentrates more on the benefits of the product, with the objective of creating a market for the product.

Secondary advertisement has a focus on the brand.

In case of a pioneering brand bringing in a new concept, primarily advertising has to be supplemented simultaneously with secondary advertising has to ensure the pioneering brand gets the competitive advantage of having marketed the concept.

Advertisement can do two things nicely:

Make customer aware of brand, products or services.

Narrate its function(in brief time-may be maximum 30 second or half page of a magazine ) that may satisfy a targeted consumer need/want.

2.1 Source Credibility

Central goal of advertising is the convincing of consumers and persuasion to purchase, the ultimate objectives of advertising are:

Is to some how attract consumer to the market offering of the company.

Generating positive attitude.

Reinforce positive association and ultimately to generate sales, may be a trial purchase.

At later stages, the sponsor may work towards creating a brand loyalty but generating initial sales or increasing the existing sales is the primary objective. In this respect, the credibility of an endorser along with advertisement plays an important role in convincing the target audience of the attractiveness of the company’s brand and generates sales. Pursuing a celebrity endorsement strategy enables advertisers to project a credible image in term of expertise, persuasiveness, trustworthiness, and objectiveness.

Since ‘Brand’ is the propriety visual, emotional, rational and cultural image that you can associate with a company or the product, therefore advertisement should be clear and touch the meaning i.e. Amul- utterly butterly delicious; Coke- thanda matlab coca-cola; pepsi- ye dil mange more; kurkure- Masti bole to kurkure.

These example convey one message that when people watch advertisement a connect is being created and result is that people go for experience of buying. People feel by using the brand they will portray certain traits or characteristics that otherwise they do not have. This generate a certain level of emotional affiliation and a sense of fulfillment. It is this emotional relationship with brands that make them so powerful.

Advertisement enforces :-

What exactly the brand stands for? What to expect by its consumption and Above all what factors, features and attributes make it better from competition.

Advertisement along with other marketing efforts generates expection and feeling in a customer and force them to think when they see or hear the brand name.

2.2 Advertising Goals

Persuade the prospect to visit a retail outlet and ask for a demonstration of brand. Build up the morale of the company’s sales force. Facilitates sales by correcting false impression, misinformation and other obstacles. Announce a special reason for buying NOW. Make a brand identity known and easily recognizable. Provide information or implant attitude regarding benefits and superior features.

Communication Option in Retail

Media advertising Consumer promotion

Television Samples

Radio Coupons

Newspaper Price off

Magazines Bonus pack

Direct Response Advertising

Mail

Telephone

Broadcast media

Word of mouth advertising

SCOPE OF THE STUDY

Indian retail sector have emerged as a most dynamic and fast pace industries with immense completion “the organised retail that now constitute a small four percent of the total industry is likely to grow at a much faster pace of 40-50 percent par annum and quadruple its share in total retail trade to 16% by 2016-17, the Icrier said”. Retail organization are aggressively adopting innovating marketing strategy to attract the customer and what influence them in making purchase decision from a particular outlet. Many players are trying to create the ambience and experience of foreign shopping malls and are providing wide product range, quality and value for money to create a memorable shopping experience.

Retail organization using various means of communication tools and investing a huge amount of profit in advertising. Retail outlets are offering different kind promotional schemes and discount to enhance sales and increase footfalls. The services offered at these outlets promoted through the print, electronics and outdoor.

However, it is still to find out at what extent the Indian consumer are accepting this innovation and what they perceive about it.

Thus this study was conducted at organized retail outlets for

Finding out consumer credibility perception and behaviour towards various media and what influence them to select a retail outlet.

RESEARCH OBJECTIVE

The study has been conducted with following objective in view :

Assessment of need and importance of advertisement in retailing.

To study how the decision making of customers relies upon advertisement medium.

To study the most effective offers appeal to customers.

To study various means of communication playing vital role to persuade customer.

To study the factors influencing the customer in selecting retail outlet.

HYPOTHESIS

Brand name play major role in influencing consumer in the selection of retail outlet.

Mostly consumer are attracted by free discount coupons offered by retail outlet.

Store ambiance also influence consumer in visiting retail outlet.

METHODOLOGY

The various means and methods have been deployed for effective collection of the desired

data-has been elucidated in this section.

Research methodology

Research methodology means the method carried out to study the problem. It shows

the type of sample design used, its size, and the procedure used to draw a sample, it also

focuses on method used to collect data, process of filtering and analyzing the data. Marketing

search tools were made use of Questionnaire direct structured method.

Market Research

The purpose of market research is to provide information, which will aid management

decision-making. Marketing managers are commissioned to undertake marketing research and

formal studies on specific problems and opportunities. They may request a marketing survey, a

product preference test, a sales forecast for a region or a research advertising effectiveness. It was

felt that to obtain more information intense study with practices was required for understanding the

subject.

Research Design

Research design is simply the framework or plan for a study, which is used as a guide in

collecting and analyzing the data. It is the blue print that is followed in completing a study. As

objective of the research is descriptive in form, the research is descriptive in form of the research

design must be made accordingly.

Formulating objective of the study

Designing the method of data collection

Selection the sample size

Collection of data analysis and finding

Conclusion and inferences

Limitations

Suggestions and recommendation.

Sampling Area:

The researcher’s area for survey was:

Vishal mega mart,Main road,Ranchi

Outside Big Bazaar,Ranchi

Big shop,church complex,ranchi

J.p mall,opp church complex,ranchi

Data Sources –

Both primary and secondary data were used to collect information regarding the project.

These data were collected directly through customers & secondary research work involved collection

of data through internet and magazines.

Primary sources of data

These data were collected on the basis of personal interaction with the customers &

retailers by knowing their preferences & basic requirements.

DATA COLLCTIONPRIMARY DATA

Personal Interview Questionnaire

SECONDARY DATA Magazines Internet

Secondary source of data

The profile of all outlets & other valuable information were gathered from internets &

magazines.

Introduction:

“Marketing research means the systematic gathering, recording, analyzing of data about

problems relating to the marketing of goods and services”

Marketing research has proved an essential tool to make all the need of marketing

management. Marketing research therefore is the scientific process of gathering and analyzing of

marketing information to meet the needs of marketing management. But gathering of observation is

must be systematic. The systematic conduct of research requires:

Orderliness, in which the measurements are accurate.

Impartiality in analysis and interpretation.

All of research can be categorized into basic and applied.

1. BASIC RESEARCH : - Basic Research is that intended to expand the body of knowledge for the

use of others.

2. APPLIED RESEARCH : - Applied Research is one, which is carried out to find the solution for a

particular problem or for guiding a specific decision. It is usually private in nature.

My research on Vodafone is carried on for guiding specific decisions and its results are useful

only to Vodafone for taking particular decision regarding product quality, staff and security. Hence

the nature of my research study is “APPLIED RESEARCH “.

5.4.2) RESEARCH DESIGN:

Research design indicates the methods and procedure of conducting research study.

Research design can be done in following three types:-

1 Exploratory Research:-

Exploratory research focuses on the discovery of new ideas and is generally based on

secondary data.

2 Descriptive Research:-

Descriptive research is undertaken when the researcher want to know the characteristics of

certain groups.

3 Causal or Experimental Researches:-

An experimental research is undertaken to identify causes and effect relationship between

two variables.

The Research Design is: Descriptive Research Design

5.4.3) Data Collection and Sampling:

A) Sources of Data Collection:-

Basically there are two types of data i.e. secondary and primary:

I) Primary Data Collection:-

Primary data collection contains the following four types of methods: -

1 Observation Method:

It contains Causal observation, Systematic observation, direct observation and contrived

observation.

2 Survey Method:

It contains Personal Interview, Telephone Interview and Mail Interview.

3 Experimental Method.

4 Panel Method.

II) Secondary Data Collection: -

It can be collected from internal as well as external sources

1 Internal Source:

Various internal sources like employee, books, sales activity, stock availability, product cost,

etc.

2 External Sources:

Libraries, trade publications, literatures, etc are some important sources of external data.

The Researcher has used primary data for the core purpose of the project and this primary

data has been gathered by survey method. The researcher has also used secondary data

B) Data collection Tools:

To conduct a survey, the Researcher has selected a structured questionnaire as an instruction for

gathering valuable information from the customers. Questionnaire, which is used for the survey, is

consisting of questions and checklist questions to check the customer feedback.

C) Sampling Plan:

The researcher has design a sampling plan that is consist of five decisions.

I) Sampling unit :

Who is to be surveyed?

The Researcher has selected youngsters, businessmen, and housewives, employees to conduct

survey and to measure satisfaction level.

II) Sampling types:

There are two types of sampling i.e. Probability Sampling and Non – probability Sampling.

i) Probability Sampling : -

Probability sampling means each unit of the universe has equal chance of getting selected. The

most frequently used probability sampling methods are as below:

a) Simple Random Sampling.

b) Stratified Random Sampling.

c) Multi-stage Random Sampling.

d) Cluster Sampling.

e) Multi – phase Sampling.

f) Replicated Sampling.

ii) Non – Probability Sampling:-

Non – Probability sampling contains following methods:-

a) Judgment Sampling.

b) Convenience Sampling.

c) Panel Sampling.

d) Quota Sampling

For this purpose the researcher has used non probability convenience sampling.

III) Sample Size:

Sample size means limited numbers of respondents covered under the research study from

a population and the researcher has taken a survey of 100 respondents to know the satisfaction level

of customer.

IV) Sampling Unit:

Here the researcher has randomly selected the respondents of the RANCHI city.

Geographical Territory

Data was collected from customer of retail outlets- Big Bazaar, Big Shop, Reliance fresh, Vishal megamart and in the malls - Glitz.

Data was collected in a time period of one week with a time slot of 2-3 hour in the evening basis to have better sample selection.

Weekend days it was during the morning and evening time, since weekend days was very important for us because of service holder and professionals respondents

Data Analysis and Interpretation

After all the above steps are completed now the important step is data analyzing and

interpretation. For this there are various analytical and statistical tools. Some of these tools are

Percentage, Average, Dispersion, Co-relation, Co-efficient, etc.

Finding & Result

1. Which retail outlet you visit frequently?

17%

36%26%

21%

Sales

Big Bazar Big Shop

Vishal Mega Mart J.D high street

36 26

21 21

2. Through which promotional source you come to know about the retail outlet?

Advertising Means

3. What type of media appeals you see more for purchasing from the retail outlet?

print media electronic media word of mouth magazine

52

16

22

10

Advertising Means

4. Does the offers influence you to visit the retail outlet more often?

Yes No

74

26

Decision

5. Which retail outlet gives you more promotional/offers?

Big Bazar Big Shop Vishal mega mart j.d high street

55

2218

5

Retail store

6. How effective you think advertisement help you to select a retail outlet?

a) Advertisement persuade you to select a retail outlet.

Strongly Agree Agree neytral Disagree Strongly Disagree

42

26

18

12

2

b) An emotional appeal adds to the effectiveness of communication for selecting an outlet.

Strongly Agree Agree Neutral Disagree Strongly Disagree

32

48

106

4

c) Punch lines/slogan of company/outlet easy to recall.

Strongly Agree Agree Neutral Disagree Strongly Disagree

42

31

18

5 4

7) Rank the following factors which influence you to visit the retail outlet other than promotions/offers

Quality Price Store Ambience fast service

22

52

16

27

8) Is promotions/offers are one of the major factors which influence you to switch over to other brand or retail outlet?

Strongly Agree Agree Neutral Disagree Strongly Disagree

16

22

40

1012

Level of Satisfaction

Conclusion

The study reveals that consumer perception and behaviour towards various media and importanceof advertising in retail. We have analysed all aspect of communication that influence in decision making.

Following are the conclusions :-

1) During research it has been found that 56% customer visit frequently to big Bazar, since Big Bazar provide more offers to the customer compare to other retail outlets.

2) During the research it has been found that electronic media and print media has high reach in consumer and play a major role in communication about promotional scheme and offers.

3) Study indicates that word of mouth make significant impact in decision making than any means of communication.

4) Research shows punch line/slogan of company /outlet makes it easy to recall the brand.

5) At great extent Indian consumer is price sensitive. Study indicates that it is an important factor that play a major role to pull crowd.

6) Emotional appeals through advertising influence majority of people in selection of retail outlet.

Suggestions and Recommendations

1) The retail outlets should use electronic media for promotional activities.

2) Existing customer could also share experience on open forum which may help in the live of prospective customer and convince them to buy.

3) Personal stories and testimonial in which prospective customer learn what other people have to know about a retail outlet. All products as advertising on television for health care, fitness and wellness by the Asian sky shop use this method and survey shows it is the most rffective communication.

Limitation of the study

1. It is very difficult to get the feedback from respondent because some of them hesitate to give the information because of which the study is based on the response of 100 people only.

2. Time constraint.

3. Some of the respondent may be biased in their response.

4. Some respondent takes it lightly and mark the answer randomly.

5. Some of the respondent have filled up the questionnaire in hurry.

BibliographyBooks :-

Kotler, Philip;Marketing Mnagement, Kevin Lane Keller, 2006-07 Batra And Kazmi, Advertising Management.

2) websites :-

www.indianretailing.com www.retailbiz.com www.livemint.com www.indian-report.com

Questionnaire

1) Which retail outlet you visit frequently?

Big Bazar Big Shop

JD hi street Vishal Mega Mart

Oothers

2) Through which promotional source you come to know about the the retail outlet?

Print media Electronic Media

Word of Mouth Magazine

Others

3) What type of media appeals influence you more for purchasing from the retail outlet?

Print Media Electronic Media

Word of Mouth Magazine

Others

4) Does the offers influence you to visit the retail outlet more often?

Yes No

5) Which retail outlet gives you more promotiona/offers?

Big Bazar Big Shop

JD hi street Vishal Mega Mart

Others

6) How would you think advertising help you to select a retail outlet.

Rate the followings

Strongly agree

Agree Neutral Disagree Strongly disagree

Reducing price of a product bring down the effectiveness of advertisementAn emotional appeals adds to the effectiveness of communication for selecting an outletPunch line/slogan of company/outlet are easy to recall

7) Rank the following factors which influence you to visit the retail outlet other than promotions/offers?

Quality Price

Store Ambiance Fast Service

8) Is promotions/ offers are one of the major factors which influence you to switch over to other brand or retail outlet?

Strongly agree Agree

Neutral Disagree

Strongly Disagree