A STUDY ON SALES PROMOTIONWith reference to

SPENCER’S RETAIL LTD, VISAKHAPATNAM.

A project report submitted in partial fulfillment of the requirement forThe award of the degree of

MASTERS IN BUSINESS ADMINISTRATION

Submitted byMANIKANTA SURISETTI(Regd.No:2070600022047)

Under the esteemed guidance ofSri. K. V. V. MURALI SOMESWARA RAO, M.B.A, M.Phil.

Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIESGAYATRI VIDYA PARISHADCOLLEGE FOR DEGREE AND PG

COURSES(Affiliated to Andhra University)

(Approved by AICTE, Accredited B⁺⁺ by NAAC and NBA)GAYATRI VALLEY,RUSHI KONDA

VISAKHAPATNAM-45.(2007-2009)

DECLARATION

I hereby solemnly declare that the project report entitled "A STUDY ON

SALES PROMOTION” with reference to, SPENCER'S HYPER MARKET

Visakhapatnam-. Submitted by me to the Department of Management

Studies, GAYATRI VIDYA PARISHAD College for Degree & PG Courses,

Visakhapatnam, affiliated to Andhra University is my own and has not been

submitted to any other university or published at any time before.

 

 

Place:

Date:         S.MANIKANTA                                                      

 

CERTIFICATE BY GUIDE

This is to certify that the project report entitled "A STUDY

ON SALES PROMOTION” at Spencer's Hyper Market, Visakhapatnam, being

submitted by Mr. S.MANIKANTA, in partial fulfillment for the award of

degree in Master of Business Administration, Visakhapatnam is a record of

bona fide work done by him, under my guidance and supervision.

 

Visakhapatnam: Sri. K. V. V. MURALI SOMESWARA RAO,

M.B.A, M.Phil.

Date:

 

ACKNOWLEDGEMENT

I am filled with pride and grateful for being a part of GAYATRI VIDYA

PARISHAD, SCHOOL OF MANAGEMENT STUDIES Visakhapatnam. That has

natured me to the present state.

 

I express my sincere gratitude to our college Director Dr.S.RAJANI and Head

of Department management studies Dr.P.PINAKAPANI giving me this opportunity. 

 I express my sincere gratitude to my project guide SRI K.V.V.MURALI

SOMESWARA RAO who was a constant source of encouragement & who took a lot of

pain in completion of my report.

I wish to extent my indebtedness to SPENCER'S HYPER MARKET,

Visakhapatnam for giving permission to carry out my project in the organization.

          I express my hearty gratitude to Mr.SRIKAR, Senior Marketing Manager,

Mr.SRINIVAS, Marketing Manager, Mr. RAKESH & EVERY EMPLOYEE OF

SPENCER'S HYPER MARKET, Visakhapatnam, for giving me permission, guidance,

support and for their time .

I like to express my sincere thanks to ALL THE RESPONDENTS who extended

their immense help by giving their valuable opinion, time and efforts,

            Last but not least I would also acknowledge the contribution of MY PARENTS

& FRIENDS who aided this study and enabled me to complete and submit the project

in time.

S.MANIKANTA

CONTENTS

CHAPTER ONE : INTRODUCTION

A. Concept of sales promotion

B. Need of the study

C. Scope of the study

D. Objectives

E. Methodology

F. Limitations

CHAPTER TWO : INDUSTRY PROFILE

A. Indian retailing industry

B. Market share of retailing industry in India

C. Challenges facing by the Indian retail sector

D. Retail players profile in India

CHAPTER THREE : ORGANIZATION PROFILE

A. History & Awards of RPG enterprises

B. Spencer’s retail chain

C. Spencer’s operations in India

D. Vision and core values of RPG enterprises

CHAPTER FOUR : CONCEPTUAL PROFILE STUDY ANALYSIS

CHAPTER FIVE : ANALYSIS AND INTERPRETATION

CHAPTER SIX : FINDINGS, SUGGESTIONS & CONCLUSION

BIBLIOGRAPHY

ANNEXURE : QUESTIONNAIRE

CHAPTER-1

INTRODUCTION

CONCEPT OF ADVERTISING

& SALES PROMOTION

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

METHODOLOGY

LIMITATIONS OF THE STUDY

INTRODUCTION

MARKETING

Marketing is the business function that aims to accomplish of an

offer that would meet the needs and wants of the customers in the target market

and the terms of exchange should be agreeable to both the parties-the marketer

and the customer.

Promotion is a key part of the marketing programme and is concerned with

efficiently and effectively communicating the decisions of marketing strategy to

target market. it seeks to persuade the audience in the target market to develop a

new attitude or change the existing one and engage in a new behavior.

SALES PROMOTION

Sales promotion is used along with personal selling, public relations, direct

marketing, and Advertising.

Sales promotion describes promotional methods using special short-term

techniques to persuade members of a target market to respond or undertake certain

activity.  As a reward, marketers offer something of value to those responding

generally in the form of lower cost of ownership for a purchased product (e.g., lower

purchase price, money back) or the inclusion of additional value-added material

(e.g., something more for the same price).

Sales promotions are often confused with advertising.  For instance, a television

advertisement mentioning a contest awarding winners with a free trip to a

Caribbean island may give the contest the appearance of advertising. 

7

While the delivery of the marketer’s message through television media is

certainly labeled as advertising, what is contained in the message, namely the

contest, is considered a sales promotion.  The factors that distinguish between the

two promotional approaches are:

whether the promotion involves a short-term value proposition (e.g., the

contest is only offered for a limited period of time), and

The customer must perform some activity in order to be eligible to receive

the value proposition (e.g., customer must enter contest). 

The inclusion of a timing constraint and an activity requirement are

hallmarks of sales promotion.

Sales promotions are used by a wide range of organizations in both the

consumer and business markets, though the frequency and spending levels are

much greater for consumer products marketers. 

Finally, the high cost of advertising may drive many to seek alternative,

lower cost promotional techniques to meet their promotion goals.

Sales promotions are used widely in many industries and especially by marketers

selling to consumers.  We will see that the objectives of sales promotion are quite

different than advertising and are specifically designed to encourage customer

response.

8

NEED FOR THE STUDY

The present scenario is being that of cutthroat competition, it becomes very

necessary to monitor the satisfaction levels of the customers and the competition

effectiveness. Thus making the study of sales promotion strategies of the Spencer’s

hypermarket.

Spencer’s located in the heart of the city is also under the competition due to

the large retail firms in the same industry. Due to this there is a threat of decrease in

the market share and lowered profit margins.

This study may be helpful to improve sales of Spencer’s with effective

promotional strategies in Visakhapatnam.

Understanding the effective methods of promotion in creating

awareness

To study different types of offers preferred by customers

9

SCOPE OF THE STUDY

The present study has been carried out to find the customer preferences towards the

offers and strategies for effective promotion

Indian retailing industry offers opportunity to entrepreneur worldwide. Who

wish to capitalize on one of the world largest and fast growing market for retailing

operations and business

Hence this topic is chosen to have comprehensive idea on sales promotion

and its effectiveness with respect to Spencer’s hypermarket in Visakhapatnam.

10

OBJECTIVES

The present study has been carried out with the following objectives to

To find out the effectiveness of sales promotion in Spencer’s Hyper

Market.

To observe the psychology of the customers regarding preference of an

offers.

To observe the Cause and Result of the sales promotional strategies.

To go through in brief into the sales scenario in Visakhapatnam with

respect to various forms of offers.

To analyze out the various aspects identified by the

Customers' to make an Effective sales.

To study the present trend of various forms of sales

promotions followed in Visakhapatnam

11

METHODOLOGY

For this study the data is collected from two sources i.e. primary and

secondary sources. The data is collected form observation method. The data so

collected has being subjected to analysis with the help of simple percentile method

and at the stage of interpretation; the data collected from observation method has

also been employed.

PRIMARY DATA:

Primary data consists of original information collected for specific purpose.

To obtain primary data, a well-structured, pilot tested schedule was prepared and

the respondents are met personally to get response. Two hundred consumers were

randomly selected and interviewed in the vizag.

SECONDARY DATA:

Secondary data consists of information that already exists somewhere having

been collected for some other purpose. In this study, the secondary data is collected

from company manuals, broachers, catalogues, websites, magazine, journals etc. the

collected data from various sources is subjected to analysis and interpretation with

the help of suitable simple percentile method and presented in a structured frame

work consisting of pie charts, various graphs and bar charts wherever applicable.

SAMPLE SIZE:

Three hundred and fifty four respondents were randomly selected in

Visakhapatnam.

12

PERIOD OF THE STUDY:

The project is being done for a period of two months i.e. from May 2008 to

June 2008 in Visakhapatnam.

SCHEDULE DESIGN:

A structured schedule has been used to obtain information from the

respondents .the schedule consists multiple-choice questions were used to collect

information from the consumers about Spencer’s sales promotion strategies

QUESTION FORMULATIONS AND WORDINGS:

In general, all questions were framed keeping in mind the following standards:

The respondents should easily understand them.

They should convey only one meaning at a time.

They should be concrete to the respondent’s way of thinking.

13

LIMITATIONS OF THE STUDY :

The following are the limitations of the study:

Only Visakhapatnam was covered during the course of study and hence

the data collected may not be applicable to entire universe.

The sample size was only three hundred and fifty four for respondents,

which is relatively small for the objectives of the study.

There could have been a lack of homogeneity in the sample chosen.

Time was a constraint since there was a difficulty in interviewing the

respondents.

The respondent’s opinions may be biased on account of some inherent

limitations in the schedule.

14

CHAPTER-2

INDUSTRY PROFILE

INDIAN RETAILING INDUSTRY

MARKET SHARE OF RETAILING

INDUSTRY IN INDIA

CHALLENGES FACING THE INDIAN

ORGANIZED RETAIL SECTOR

CHALLENGES FACED BY GLOBAL

RETAILERS

TOP TEN RETAILERS IN THE

WORLD

RETAIL PLAYERS PROFILE IN

INDIA

RETAIL TRADE FORMATS

15

INDUSTRY PROFILE

The history of retail has included countless ways in which retailers have

attempted to get their products in front of the consumer. But it seems that the

businesses that have provided their customers with the most convenience have

generally proven to be the most successful.

For centuries, most retail sales were made by the street vendor or the small

family owned shop, which provided their customers with the convenience of not

having to grow their own food or make their own clothes. By the mid nineteenth

century, most of the goods that we find in today's superstores were supplied by

craftsmen or local manufacturers who dealt directly with their customers. Needed,

not to mention that they probably had to travel all over town to get their shopping

done.

As manufacturing methods improved, and as the road and rail transport

network extended, there developed specialist manufacturers who needed retail

stores to sell their goods. Over time, the small retail store concept grew, and by the

mid 1950's small stores blanketed every high street.

While most people loved the individual attention and great service that the

small store provided, it became more and more difficult for the small store to offer

the kind of prices and selection that the consumer really.

The next big revolution in retailing was the emergence of the retail chains,

and later the superstores. The consumer of the 70's demanded the convenience of

16

having their favorite stores in one enclosed location where they could easily hop

from store to store without having to concern them about the weather.

This shopping mall concept was quickly embraced by the consumer, but

unfortunately the crowds and traffic of today's mega malls can often turn what

should have been a convenient and comfortable shopping experience into a mission

of hand-to-hand combat!

In recent years, the mail order business has experienced some of the most

impressive growth, which would also seem to echo the continuing consumer demand

for convenience. Most retailers are recognizing that they simply have to offer their

customers the ability to order products or services from the comfort of their own

home or office in order to compete in today's retail marketplace.

17

RETAILING INDUSTRY IN INDIA

Retail industry is the largest industry in India, with an employment of

around 8% and contributing to over 10% of the country's GDP. Retail industry in

India is expected to rise 25% yearly being driven by strong income growth,

changing lifestyles, and favorable demographic patterns.

It is expected that bymodern retail industry in India will be worth US$ 275-

350 billion. India retail industry is one of the fastest growing industries with revenue

expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly.

A further increase of 7-8% is expected in the industry of retail in India by growth in

consumerism in urban areas, rising incomes, and a steep rise in rural consumption.

Shopping in India has witnessed a revolution with the change in the consumer

buying behavior and the whole format of shopping also altering. Industry of retail

in India which has become modern can be seen from the fact that there are multi-

stored malls, huge shopping centers, and sprawling complexes which offer food,

shopping, and entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great

demand for real estate is being created. Indian retailers preferred means of

expansion is to expand to other regions and to increase the number of their outlets

in a city. It is expected that by 2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is

growing at a rate of 9% annually. The branded food industry is trying to enter the

India retail industry and convert Indian consumers to branded food. Since at

present 60% of the Indian grocery basket consists of non-branded items.

18

India retail industry is progressing well and for this to continue retailers as

well as the Indian government will have to make a combined effort.

Global retail giants are also entering the retail industry in India and this is

also one of the factors in the growth of the organized retail sector in India.

INDIA IS A GROWING MARKET FOR RETAILING INDUSTRY

The scope of the Indian retail market is immense for this sector is poised for

the highest growth in the next 5 years. The India retail industry contributes 10% of

the countries GDP and its current growth rate is 8.5%. In the Indian retail market

the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9

billion in 2009 from US$ 394 billion in 2005.

The organized retailing sector in India is only 3% and is expected to rise to

25- 30% by the year 2010. There are under construction at present around 325

departmental stores, 300 new malls, and 1500 supermarkets. This proves that there

is a tremendous scope for growth in the Indian retail market.

This led to increase in foreign direct investments Global retail giants are also

entering the retail industry in India and this is also one of the factors in the growth

of the organized retail sector in India. The global retail giants who are entering the

organized retail sector in India are: Wal-Mart, Tosco, Carrefour SA, Metro AG.

19

CHALLENGES FACING THE INDIAN ORGANIZED RETAIL SECTOR

The challenges facing the Indian organized retail sector are various and

these are stopping the Indian retail industry from reaching its full potential. The

behavior pattern of the Indian consumer has undergone a major change. This has

happened for the Indian consumer is earning more now, western influences, and

women working force is increasing, desire for luxury items and better quality. He

now wants to eat, shop, and get entertained under the same roof. All these have

lead the Indian organized retail sector to give more in order to satisfy the Indian

customer. The biggest challenge facing the Indian organized retail sector is the

lack of retail space.

With real estate prices escalating due to increase in demand from the

Indian organized retail sector, it is posing a challenge to its growth. With Indian

retailers having to shell out more for retail space it is effecting there overall

profitability in retail.

Trained manpower shortage is a challenge facing the organized retail sector

in India. The Indian retailers have difficultly in finding trained person and also

have to pay more in order to retain them. This again brings down the Indian

retailers profit levels.

The Indian government has allowed 51% foreign direct investment (FDI) in

the India retail sector to one-brand shops only. This has made the entry of global

retail giants to organized retail sector in India difficult. This is a challenge being

faced by the Indian organized retail sector.

20

But the global retail giants like Tisco, Wal-Mart, and Metro AG are

entering the organized retail sector in India indirectly through franchisee

agreement and cash and carry wholesale trading. Many Indian companies are

also entering the Indian organized retail sector like Reliance Industries Limited,

Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these

global retail giants. As a result disco becoming accepted practices. This too brings

down the profit of the Indian retailers.

Some of the reasons for this slow growth are:

1. Retail not being recognized as an industry in India.

2. The high costs of real estate

3. High stamp duty.

4. Lack of adequate infrastructure.

5. Multiple and complex taxation system.

21

CHALLENGES FACED BY GLOBAL RETAILERS

The emergence of new markets:

Asia, especially India and china are the emerging market places. The

technological and transportation and industrial revolutions of the past two

decades have changed much of that.

The empowered consumer:

Retaining the consumer is far more difficult today than it was a decade ago.

Consumer lifestyles and demographics are changing rapidly. Spending power is

increasing and technology is aiding consumers in making sound shopping

decisions.

Technology enabled efficiencies:

Technology has enabled business and consumers to build efficiencies on the

basics of the ability to receive and transmit data, at a fast speed. This information

has today become critical for achieving efficiencies in all aspects of retailing.

The rise of the e-age:

The emergence of Internet retailing or e-retailing has been a key driver of

change in retail. The increase in the number of Internet users not in developed

markets but also globally, has placed new demands on retailers. Online shopping

facilitated by auction sites are the new retailers of retail. Comparison- shopping

is a new reality of the e-age.

22

Rank Retailer Home Country Sales in US$

Millions

1Wal-Mart

Stores, Inc.USA $202,011

2Carrefour

GroupFrance $62,216

3The Home

Depot, Inc.USA $53,553

4The Kroger

Co.USA $50,098

5 Royal Ahold Netherlands $48,239

6 Metro AG Germany $43,816

7Target

CorporationUSA $39,176

8Albertson's,

Inc.USA $37,931

9Sears,

Roebuck &Co.USA $37,328

10Kmart

CorporationUSA $36,151

TOP 10 RETAILERS IN THE WORLD

23

A SNAP SHOT OF RETAIL PLAYERS PROFILE IN INDIA

SPENCER’S RETAIL

SUBHIKSHA

PIRAMYD RETAIL

SHOPPERS STOP

FUTURE GROUP

RELIANCE RETAIL

TRENT

SPENCER’S RETAIL:-

RETAIL VENTURE:

Owned by the Kolkata-based RPG Enterprise, Spencer’s retail is into food

and grocery retailing, and opened its first store in Hyderabad in 2001. It operates

through various formats spread across India. The various formats are Spencer’s

Fresh, Spencer’s Daily, Spencer’s super, Spencer’s hyper stores and the most recent

one is Spencer’s express operating in FMCG space.

LEADERSHIP:

Sanjiv Goenka, Vice Chairman; J.H.Mehta, President.

CURRENT STATUS:

It operates 136 stores spread in 25 cities.

FUTURE PLANS:

24

Spencer’s has announced to enter into the consumer durables segment. It is

also looking at the viability of specialized stores in several segments, besides

planning to open 15 new stores in 10 cities across, to make a pan-India presence.

SUBHIKSHA:-

RETAIL VENTURE:

The Chennai-based Subhiksha trading services is a discount chain

established in 1997, with a value for money business philosophy. Subhiksha operates

in 4 verticals – Fruits & Vegetables, Pharmaceutical, FMCG and Telecom.

LEADERSHIP: R.Subramanian, Managing Director

CURRENT STATUS:

Subhiksha has crossed the 450-store mark across 5 states with over one

million sqft of retail space. It has ended phase one of its 300-crore investment across

the country.

FUTURE PLANS:

With a 200-crore investment lined up for the phase two of expansion,

Subhiksha to touch a 1000 store chain with a pan-India presence by 2007.

PIRAMYD RETAIL:-

RETAIL VENTURE:

The Primal Groups retail ventures are Piramyd mega store, Trumart and

Trumart Daily. Piramyd operates in the life style segment with department stores in

5 different categories – Men, Women. Kids. Home and Life style.

LEADERSHIP:

Nandan primal, Managing Director: Bipin gurnani, chief operating officer.

CURRENT STATUS:

25

Piramyd is present in 4 cities operating 9 stores.

FUTURE PLANS: Its plans to open 10-12 more Trumart outlets by this year.

SHOPPERS STOP :-

RETAIL VENTURE:

Owned by the diversified realty to retail conglomerate, the K Raheja Group,

Shoppers stop was set up in 1991 and is one of the first operators in the modern

retailing sector in the country.

LEADERSHIP:

B.S.Nagesh, Customer care associate and Managing Director; Govind

Shrikhande, Customer care associate and chief executive officer.

CURRENT STATUS:

This premium outlet is present in 10 cities with 20 outlets either as a part of a

mall or as exclusive stores.

FUTURE PLANS:

The group plans to extend the number of its departmental stores from 20 to

48 in about 3 years.

FUTURE GROUP :-

RETAIL VENTURE:

Future Group founded in 1987 as Manz wear, the company made a foray

into modern retail in august 1997 with the launch of its first departmental store for

premium apparel. Pantaloons in Calcutta.

LEADERSHIP:

26

Kishore Biyani, CEO and MD; Rajan malhotra, Head, Big Bazaar; Damodar

mall, President and CEO Food bazaar.

CURRENT STATUS:

The formats are spread in 31 cities, the latest being the launch of Big Bazaar

in Surat.

FUTURE PLANS:

Biyani has plans to open 75 more food bazaars in the next year spreading the

wings to tier-II cities.

RELIANCE RETAIL :-

RETAIL VENTURE:

The foray of the largest corporate Reliance industries into the retail arena

this year through Reliance Fresh in Hyderabad on November 3rd. It was first from

the 25000 crore investment committed for retail.

LEADERSHIP:

Mukesh Ambani, Promoter; Raghu Pilai, President Strategy.

CURRENT STATUS:

Already opened 22 stores in Hyderabad and Jaipur.

FUTURE PLANS:

Reliance retail plans to establish 4000 outlets across various formats in next 5

years and is eyeing sales of rupees 1-lakh-crore over this period

27

TRENT:-

RETAIL VENTURE:

The salt-to-software corporate conglomerate TATA Group entered the

modern arena way back in 1998. When it opened its outlet Trent in Bangalore in

that year. Today Trent operates in three formats- Westside, Landmark and Star

India Bazaar.

LEADERSHIP:

Noel TATA, MD; Neeti chopra, Head, Marketing (Westside).

CURRENT STATUS:

Westside has more than 20 outlets spread in Bangalore, Hyderabad, Chennai,

Mumbai, Pune, and Delhi & Kolkata.

FUTURE PLANS:

The TATA Group, through its retail brand Proma, is set to enter the

Electronics and Consumer Durable market.

28

RETAIL TRADE FORMATS

The Retail Trade sector comprises establishments engaged in retailing

merchandise, generally without transformation, and rendering services incidental to

the sale of merchandise. The retailing process is the final step in the distribution of

merchandise. Retailers are therefore organized to sell merchandise in small

quantities to the general public.

This sector comprises two main types of retailers:

Store retailers

Non store retailers

STORE RETAILERS:-

Operate fixed point-of-sale locations, located and designed to attract a high

volume of walk-in customers. In general, retail stores have extensive displays of

merchandise and use mass-media advertising to attract customers. They typically

sell merchandise to the general public for personal or household consumption, but

some also serve business and institutional clients. These include establishments such

as office supply stores, computer and software stores, building materials dealers,

plumbing supply stores and electrical supply stores. Catalog showrooms, gasoline

service stations, automotive dealers and mobile home dealers are treated as store

retailers.

In addition to retailing merchandise, some types of store retailers are also

engaged in the provision of after-sales services, such as repair and installation. For

example, new automobile dealers, electronics and appliance stores, musical

instrument and supplies stores often provide repair services. As a general rule,

29

establishments engaged in retailing merchandise and providing after-sales services

are classified in this sector.

NON STORE RETAILERS:-

Non-store retailers, like store retailers, are organized to serve the general

public, but their retailing methods differ. The establishments of this sub sector

reach customers and market merchandise with methods, such as the broadcasting of

“infomercials,” the broadcasting and publishing of direct-response advertising, the

publishing of paper and electronic catalogs, door-to-door solicitation, in-home

demonstration, selling from portable stalls (street vendors, except food) and

distribution through vending machines. Establishments engaged in the direct sale

(non-store) of products, such as home heating oil dealers and home delivery

newspaper routes are included here.

The buying of goods for resale is a characteristic of retail trade

establishments that particularly distinguishes them from establishments in the

agriculture, manufacturing and construction industries. For example, farms that

sell their products at or from the point of production are not classified in retail, but

rather in agriculture. Similarly, establishments that both manufacture and sell their

products to the general public are not classified in retail, but rather in

manufacturing.

30

FORMATS IN DETAIL

CONVENIENCE STORES:

This industry comprises establishments known as convenience stores or food

marts primarily engaged in retailing a limited line of goods that generally includes

milk, bread, soda and snacks in a 2000 to 3000 square foot store with speedy check

out. They are the modern version of the neighborhood mom-and-pop

grocery/general store.

DEPARTMENT STORES:

This industry group comprises establishments known as department stores

primarily engaged in retailing a wide range of the following new products with no

one merchandise line predominating: apparel; furniture; appliances and home

furnishings; and selected additional items, such as paint, hardware, toiletries,

cosmetics, photographic equipment, jewelry, toys, and sporting goods. Merchandise

lines are normally arranged in separate departments.

DISCOUNT STORES:

This industry comprises establishments known as department stores that

have central customer checkout areas, generally in the front of the store.

Department stores in this industry offer a wide range of general merchandise

(except fresh, perishable foods), limited service and low prices.

SPECIALITY STORES:

This industry concentrates on a limited number of complementary

merchandise categories and provides a high level of service in an area typically less

31

than 8000 square feet. In recent years, a specialty apparel store has been one of the

weakest, slowest-growing areas in retailing.

CATEGORY KILLERS:

This industry is much nearer to discount store that offers a narrow variety

but deep assortment of merchandise. These retailers are basically discount specialty

stores. Most category specialists use a self-service approach, but some specialists in

consumer durables offer assistance to customers.

SUPER CENTERS:

This industry offers a wide variety of food and nonfood merchandise. They

are the fastest growing retail category. Supercenters stock between 100,000 and

150,000 individual items (SKU’s). The store generally is spread across 150,000 to

220,000 square foot.

HYPER MARKETS:

This industry is large combination food and general merchandise retailers.

They typically stock less than super centers, between 40,000 and 60,000 items

ranging from groceries, hardware, and sports equipment, to furniture and

appliances, to computers and electronics. The store generally is spread across

100,000 to 300,000 square foot.

32

CHAPTER-3

ORGANIZATION PROFILE

HISTORY OF RPG ENTERPRISES

RPG ORGANIZATIONAL

EXCELLENCE AWARDS

ABOUT SPENCER’S RETAIL

CHAIN

VARIOUS FORMATS IN

SPENCER’S RETAIL CHAIN

SPENCER’S OPERATIONS IN

INDIA

SPENCER’S PROFILE

SPENCER’S PRODUCTS

33

VISION AND CORE VALUES OF

RPG ENTERPRISES

ORGANIZATION PROFILE

RPG ENTERPRISES

An RPG enterprise is not only one of the biggest, but also one of the most

respected names in the industry. A US$ 3.4 billion business conglomerate, RPG is

one of the powerhouses that drive Indian Industry. With more than 20 companies, it

spans 7 business sectors, Retail, Technology, Entertainment, Power, Transmission,

Tyres and Specialties- all under the RPG banner. Even with such a diverse

portfolio, the fact that RPG Enterprises has had nothing but only unrivalled success

in all these sectors, speak very highly of the efficiency and vision with which the

company is run. Over the years RPG Enterprises has built a huge reservoir of trust

and goodwill among the people of India. We at Spencer’s are truly proud to be a

part of the RPG family

RPG Enterprises is run by a Management Board headed by Mr. R. P.

Goenka, Chairman Emeritus, Mr. Harsh Goenka, Chairman and Mr. Sanjiv

Goenka, Vice-Chairman. The Management Board comprises of highly qualified and

experienced professionals in their respective fields.

HISTORY:

The history of RPG began in 1820 when Ramdutt Goenka, from a small town

in Rajasthan, came to Calcutta to do business with the British East India Company.

34

The following milestones speak of his enterprising efforts, and the subsequent

growth of the RPG group

MILESTONES OF RPG GROUP:

The following are the Milestones of RPG Group:

By the 1900s the Goenkas establish themselves in diverse business

sectors like banking, textiles, jute and tea.

Sir Hariram Goenka and Sir Badridas Goenka are conferred

knighthood by the British for outstanding contribution to business and the

community.

In 1933, Sir Badridas Goenka becomes the first Indian to be

appointed Chairman of the Imperial Bank of India (now the State Bank of

India).

He is elected President of the Federation of Indian Chambers of

Commerce and Industry (FICCI) in 1945.

Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the

successful trait of entrepreneurship.

In 1950 Goenka’s acquire two British trading houses - Duncan

Brothers and Octavius Steel.

After successful acquisitions in the areas of tea, automobile, tyre, jute,

cotton textile and electric cables, Keshav Prasad Goenka retires in the 70s.

His business is taken over by his three sons.

One of the sons, Rama Prasad Goenka (better known as RP Goenka),

starts RPG Enterprises in 1979 with Phillips Carbon Black, Asian Cables,

Agarpara Jute and Murphy India.

The 80s see further acquisitions by the RPG group, the first being

CEAT Tyres of India in 1981. The group then went on to acquire KEC

(1982); Searle India, now RPG Life Sciences (1983); Dunlop (1984); HMV

35

(1988); and finally CESC, Harrisons Malayalam, Spencer & Co. and ICIM

in 1989.

RP Goenka currently oversees the group’s affairs as “Chairman

Emeritus” Today, RPG has more than twenty companies across seven

business sectors , with a turnover nearing USD$ 3 billion.

QUALITY:

For RPG quality determines success. Continuous process improvements are

carried out to ensure complete satisfaction of customer and market requirements.

RPG ORGANIZATIONAL EXCELLENCE:

RPG Organizational Excellence is an effort toward achieving excellence by

enhancing performances through clarity of purpose, meticulous planning, tenacious

execution and passion to excel.

RPG ORGANIZATIONAL APPROACH :

RPG Organizational Approach translates the group’s organizational

excellence strategy through an effective 3-point program:

Six Sigma

TPM

Continuous Improvement

RPG ORGANIZATIONAL AWARDS:

The RPG Organizational Excellence Awards were started to give impetus to

the group’s excellence movement. Initiated in 1999, these awards aim to encourage

higher levels of business excellence among the group companies.

36

RPG ORGANIZATIONAL EXCELLENCE MODEL :

RPG has always been among the forerunners in the area of quality

improvement. The group set up the RPG Organizational Excellence Center in 1998

(then know as the Corporate Quality Center), to enhance quality standards within

all RPG group companies.

To match world standards of excellence the center inducted the Organizational

Excellence Model, drawn from the EFQM framework of excellence and in

alignment with the CII – EXIM Business Excellence Model.

The model works in three distinct phases...

Introspection:

Establishing quality systems, processes and human responses across the group

companies

Externalizing:

Proactively studying customers, markets and societal issues

Benchmarking:

Applying a relevant global excellence model

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RPG ORGANIZATIONAL EXCELLENCE APPROACH:

RPG has been encouraging continuous improvement initiatives in all the

group companies, through an effective 3-point program: Six Sigma, TPM, and

Continuous Improvement.

The quality drive has been promoted through QC, CFT, and 5S systems.

Many of the group companies have successfully applied the quality improvement

program, implementing policy deployment through the Business Balanced Score

Card (BBSC).

The group companies have initiated the excellence drive by implementing

TQM strategies like 5S of housekeeping, and structured problem solving – CFT,

Kaizen etc. These initiatives help in embedding awareness of quality in all

38

organizational processes; leading to employee involvement, a culture of continuous

improvement and definite changes in QCD.

RPG ORGANIZATIONAL EXCELLENCE AWARDS:

The RPG Organizational Excellence Awards were introduced in 1999, to

encourage higher levels of business excellence among the group’s companies.

These awards motivate the companies to instill quality control measures in all their

processes. The awards also generate a healthy competitive environment,

encouraging the companies to excel.

The RPG quality awards are given to group companies (in the

manufacturing or the service categories) that exhibit outstanding levels of

organizational excellence. Each company is assessed on predetermined criteria for

RPG’s quality and organizational excellence awards, every year. The ‘Best TQM

Team’ and ‘Best TQM Facilitator’ awards are given to encourage and appreciate

improvement efforts at team and individual levels.

The introduction of the awards has been effective in creating a better

working environment by:

Providing direction and creating a uniform excellence culture

throughout the group

Recognizing contributions made by individual units

Motivating the management and employees to work toward continuous

improvement

Improving company performance, based on the sound approach of

strategy,

Policies and processes, and its organization-wide deployment.

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Manufacturing Category

Winner Certificate of Merit

2000 Raychem RPG RPG Cables, Mysore

200

1

RPG Cables,

Mysore

Cetex Petrochemicals

RPG Life Sciences

200

2

Cetex

Petrochemicals RPG Cables, Thane

200

3

CEAT

Limited

KEC International,

Butibori

200

4

CEAT

Limited Raychem RPG

200

5 Raychem

RPG Limited

CEAT Limited

SERVICE CATEGORY :

  Winner Certificate of Merit

2000 Spencer’s Travel Zensar Technologies

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2001 RPG Cellular Services Zensar Technologies

2002 RPG Cellular Services Zensar Technologies

2003 CEAT Limited Spencer’s Travel

2004 CEAT Limited Spencer’s Travel

2005 CESC Limited Music World Entertainment Ltd

VISION:

Leadership in profitability and revenue growth in our chosen businesses.

Being a customer-centric organization and Being the most exciting workplace.

VALUES:

RPG’s business ethics promote higher levels of excellence. The group’s

values of Customer Sovereignty, People Orientation, Innovation &

Entrepreneurship, Transparency & Integrity, Passion for Superior Performance,

Anticipation, Speed and Flexibility propel it to perform and excel in all spheres of

the business.

CORE VALUES:

The Core Values of RPG Enterprises were soon defined as its business

drivers and are still faithfully followed and cherished.

Respond - React to a business opportunity. Harness the

finest resources.

Perform - Inspire people to come together and work as one

team.

Grow - Ensure the best possible outcome… success.

QUALITY :

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Quality is a process in which rpg enterprises firmly believes as it aims at

continuous improvements to meet the current and anticipated requirements of

customers and markets.

With an ever-changing environment, rpg enterprises is an exciting place to

work, where excellence, performance and entrepreneurship are valued.

SPENCER’S RETAIL

Spencer’s Retail is the largest supermarket chain in India. At Spencer’s we

have for you an extensive range of products and durables, designed to satisfy all

your shopping needs. We are proud today of our 400 stores across 65 cities covering

a retail trading area of 2 million square feet and an astonishing 3.5 million

customers a month. However, all these figures and statistics would mean nothing if

we couldn’t put a smile on your face. It has been and will always be our constant

effort. No wonder, after more than 100 years, people continue to trust the name

Spencer’s. And this trust has been the outcome of a consistent high-quality service.

 For every want, for every need:

We at Spencer’s are glad that we are able to provide all that you need, and

all that you wish you had. From an endless choice of foods and exotic fruits &

vegetables to household needs, home décor and consumer durables. Whether you

are designing your home or plan to have a party, we have your basket ready with

us. So come and discover the joy of shopping at Spencer’s.

THE VARIOUS FORMATS IN SPENCER’S RETAIL

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Spencer’s express is your store next door for your fresh needs at arms length.

These stores are around 1000 sq ft in size. They are open from 7 am to 9 pm and

also provide you with home delivery. Our Express stores stock dairy, fruit and

vegetable, bread and bread products, cut vegetables/ ready to cook, fruit juices,

fresh batter, fresh coffee/tea, fresh pickles, fresh Ghee, fresh fish and meat.

Spencer’s Fresh stores provide you with an enjoyable and convenient

shopping environment in your very own neighborhood. These 2000 sq. ft. air-

conditioned stores are well stocked with fresh food of the very best quality, such as

fresh farm produce, vegetables, fruit, milk, eggs, breads and much more. With an

impressive range and a clean, bright and hygienic ambience, Spencer’s Fresh is far

better than the regular sabzi mandis or local vegetable markets, which is why our

consumers return to our stores again and again. And at Spencer’s Fresh not only do

you get fresh, clean and tasty farm produce but also the lowest possible prices in the

locality, yes even lower than your sabziwala!

The Spencer’s Daily store is your friendly neighborhood store, which caters

to your entire daily shopping needs - from regular groceries to fresh food and also

weekly top-up shopping. About 4000-7000 sq ft in size and with a bright and

friendly atmosphere, Spencer’s Daily saves you the hassle of bargaining with the

local Kirana shop owners (because we offer the lowest possible prices).

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The Spencer’s Super is the place to go for your monthly shopping. About

8000-15,000 sq. ft. in size the Spencer’s Super not only caters to your daily needs but

also stocks home care products; personal care products, Bakery, Chilled and frozen

food; Baby care besides groceries & staples, fresh fruits and vegetables. In effect we

have everything to make sure your household runs smoothly all month long.

The Spencer’s Hypermarkets are huge destination stores, more than 25,000

sq. ft. in trading area. Shoppers come here looking for fantastic deals across all

categories. Our Hypermarkets ensure a comfortable, clean, bright and functional

ambience to shop along with the convenience of finding everything under one roof at

the best value for money.

OPERATIONS IN INDIA

Spencer’s has retail footage of over 1.3 million square feet and over 350

Spencer’s stores in 50 cities.

The company operates through the following formats:

Spencer’s Hypermarkets:

A fast growing retail network of hypermarkets with large format stores in Mumbai,

Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada,

Aurangabad Durgapur and Kolkata.

Spencer’s Super:

One of the largest supermarket chains in the food and grocery segment in India.

Spencer’s Daily:

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Small format stores conveniently located with a range of products to meet your

daily household needs.

Spencer’s fresh:

All food items, juices, and bread products are available.

Spencer’s Express:

Your food and grocery store next door.

SPENCER’S PROFILE

RPG: Retail Launches "Spencer's Hypermarket" In Visakhapatnam on

September 17 2004: Great Wholesale Club Ltd., the company which operates the

GIANT Hypermarkets launched their first 'Spencer's Hypermarket" today at

Vizag. The store was inaugurated by Vice-Admiral O.P. Bansal, PVSM, AVSM, and

VSM. Flag Officer, Commanding-in-Chief, Eastern Naval Command and Mrs.

Renu Bansal.

The store is spread over 60,000 sq. ft and provides ample parking more than

60 cars and two wheelers in the premises.

The store would have 25,000 plus products across staples, ready foods,

instant foods, beverages, health & beauty products, dairy & frozen foods, garments,

electrical goods, general merchandise and other household products. The store

would also have a Bakery, Music World, Café and several other concessionaires

offering a wide variety of products. The store would be open from 9.30 a.m. to 10.00

p.m., 7 days of the week.

The store has several customer facilities which the first in Vizag like 19 cash

tills, special billing for physically challenged people, etc.

There will be special promotions and offers exclusively at Spencer's, 365

days in a year, in addition to the products being sold below MRP. Spencer's offers a

unique no hassles "Replacement Guarantee" as also a "Price Guarantee" to their

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customers. This is one of the several unique features that the store offers to their

customers.

In addition to this Spencer's would have a whole host of exciting offers and

activities every weekday. "Hara Bhara Wednesday" is an exclusive concept.

Where customers get fresh fruits and vegetables at the lowest prices, only at

Spencer's and Aksheya Annapurna showcased on Friday.

Mr. Raghu Pillai, President & Chief Executive, Retail Sector, RPG

Enterprises, speaking about the launch said "This is truly exciting that the "Grand

Old Lady" comes back in style into the Indian retail environment. I am proud to

present Spencer's Hypermarket to the Vizagites". Mr. Kruben Moodliar, CEO

added that 'Spencer's promises Mega Value. Maha Khushi' and that customer in

Vizag can now look forward to some great, international shopping at Indian prices.

RPG Retail has been a pioneer in the organized retail segment and operates

several large successful chains of stores. The various brands operated by RPG

Retail include Food world, Health & Glow, Music World. The hypermarket

business was started in 2001. The store at Vizag will be in association with Phoenix

Logistics Pvt. Ltd.

The lowest price, in a format that is air-conditioned, cleans, comfortable, well

stocked and laid-out. The spacious layout allows for wide aisles within the store for

moving around and ample space outside for parking and loading.

The Hypermarket is a large format store that aims at retail consolidation

by being a single point contact between the brand owners and customers. This is one

of the fastest growing formats in Asia. A number of international chains are

investing in these stores. Hypermarkets have a very wide range of product

categories, of which the core and essential range is in groceries, food, home needs,

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fresh food, garments and consumer durables. All these are sold at low prices, which

is possible because of the economies of large-scale operations.

The Hypermarket format offers several advantages to all the parties involved in the

process.

SPENCER'S PRODUCTS

Spencer's retail offers the complete gamut of products & durables ranging

from bread to bed covers; from toothpaste to television.

Our product profile includes the following:

1. Fresh fruits and vegetables

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2. Groceries & staples

3. Home care products

4. Personal care products

5. Garments & fashions accessories

6. Jewelry

7. Bakery, Chilled and frozen food

8. Utensils & crockery for your kitchen

9. Stationary for your office and home

10. White goods

11. Baby care

12. Music and lots more…

Spencer's Retail provides maximum value for price in its stores. It has been our

constant endeavor to provide the best shopping experience to our customers.

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We have regular promotions and special offers running, 52 weeks of the year, that

enable our customers to buy smartly. These offers are available across all our outlets,

across the entire range of products.

WHY SPENCER’S?

Spencer’s has currently 80 stores geographically spread across    the

country with a retail trading area of more than half a million    square feet.

The largest Super Market Chain of India.

We have a captive audience of around 2.6 million who walk in every

month in all the stores across the chain.

Consumers view brands advertised on in-store media networks    40%

more positively. (Source: Nielsen Media)

Consumers are 34% more predisposed to buy products advertised

on in-store media network. (Source: India retail report 2005)

In-store advertising has 57% Brand Recall as compared to 24% for

TV Ads. (Source: Nielsen Media)

Consumers watch in-store media advertising on an average of 7

minutes per visit.

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Variety of branding options (Hyper, Daily / Supers) for the clients

and a controlled environment for in-store promotions. We deliver    the

lowest OTC cost and ensure minimum media wastage.

Branding/visibility options for Spencer’s hyper stores

Hoardings

Gondola-End visibility

Back-lit boards.

Drop down scroll boards

Trolley / Basket branding

Carry Bag branding

In store - promoters

Playing pre-recorded ads in the TVs.

Standalone Scrollers

Pull downs and banners

Display panels on the wall

Product Displays

Bill Roll branding

Kiosks

Promo tables

Audio Jingles

Carry bag insertions

Cash till boards

Glass Windows

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VISION & CORE VALUES

What is it that defines RPG Enterprises’ success and carries it on through

generations?

The set of values and the visionary focus of its leaders, which forms the

distinct identity of RPG Enterprises, is what constitute its business drivers.

Its’ Vision and Core Values are:

Leadership in profitability and revenue growth in our chosen

businesses.

Being a customer-centric organization and

Being the most exciting workplace.

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Customer Sovereignty

People Orientation

Innovation & Entrepreneurship

Transparency & Integrity

Passion for Superior Performance

Anticipation, Speed & Flexibility

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CONCEPTUAL PROFILE

MARKETING DEFINED

Marketing is the business function that aims to accomplish of an offer

that would meet the needs and wants of the customers in the target market and the

terms of exchange should be agreeable to both the parties-the marketer and the

customer.

The marketing concept is thus a philosophy, logic or a style

of managing business where the satisfaction of the customer's want is a

paramount consideration. PHILIP KOTLER has aptly described the modern

marketing concept in the following words:

"The marketing concept is a customer orientation backed by

integrated marketing aimed at generating customer satisfaction as the

key to satisfying organizational goals."

Thus, the marketing concept is consumer-oriented, and

the emphasis is mainly on the consumer, “Kingpin “in the marketing

activity. In fact, marketing begins with the consumer and ends with the

consumer.

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MARKETING MIX

Marketing- mix is a major concept in modern marketing and includes everything

that the marketer uses to create a blend that would influence the demand for its

products or services. It is a set of controllable, tactical marketing tools that the

firm uses to achieve its objectives in the target market. Popularly, 4Ps are used to

represent the elements of marketing-mix. Each ‘P’ stands for,

Product

Price

Place (Distribution)

Promotion

PRODUCT:-

A product is anything that can be offered to a market for attention,

acquisition, use, or consumption that might satisfy a want or need. In effect, this

definition says that products include “ physical products, services, persons,places,

organization, and ideas”

PRICE:-

Price is the sum that the customer pays in exchange for the products,or to get

a service performed. Price covers costs of manufacturing a product, cost of office

and administration, cost of distribution and cost of promotion. It also includes a

mark up over costs called profit. Price is used as a promotional tool in a price

sensitive market like India. Price and quality are inter-related. A premium product

is high-priced and high quality product. Pricing strategies can be skimming or

penetrative. In skimming strategy, we charge a high price initially to cover our

product development costs.

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PLACE (DISTRIBUTION):

The place (Distribution) refers to marketing activities undertaken to make

the product or service available to consumers at convenient locations where they are

normally expected to shop for such things

PROMOTION:-

Promotion as we are aware is a technique of

communication. Sales promotion is used along with personal selling, public

relations, direct marketing, and Advertising.

Personal selling is a face-to-face communication. Here a salesman tries to persuade

a prospect to buy a product. Public relations are the relationship between an

organization and its public like employees, shareholders, customers, distributors,

media and the community at large. Direct marketing is selling direct to the

customers either by direct mail, or telephone or TV ads. Sales promotion is the

direct inducements offered to the customers like free-gifts and price offs to move

the products rapidly. Sales promotion can also be used at the level of dealers and

sales representatives.

ELEMENTS IN PROMOTIONAL MIX

The five major promotional tools are

Advertising

Public relations

Personal selling

Direct marketing

Sales promotion

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ADVERTISING

Advertising is “any paid from of non-personal presentation and promotion of

ideas goods or services by an identified sponsor”

Advertising objectives should be developed based on the target market,

positioning and the marketing mix. There are three types of objectives, classified by

purpose.

INFORM

Informative advertising is used to inform buyers of new products, or

features. Its main aim is to build primary demand (i.e. demand for a particular

product category). For example, car ads in magazines, with lengthy description of a

car, when new models are released.

PERSODE

Persuasive advertising is used to persuade buyers that a particular brand

provides the best product offering. Its main aim is to build selective demand (i.e.

demand for a particular brand). For example, TV car ads, which emphasize a

model’s features, or compares (i.e. comparison advertising) the model with another

brand.

REMIND

Remainder advertising is used to remind buyers about a product’s existence.

For example car ads, which focus on the company logo, image and positioning,

rather than specific models

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PUBLIC RELATIONS

This promotional tools aims at building good relations between the company

and its various public through favorable publicity, building corporate image and

handling unfavorable events. The public relations department achieves this through

press relations, product publicity, corporate communication, lobbying and

counseling.

Public relations can be used to promote products, people, places, ideas,

activities, companies and countries. However, despite its strengths, public relations

are often the least used of all promotional tools, in both consumer and industrial

markets. It is often thought of all promotional tools, in both consumer and

industrial markets. It is often thought of as a ‘marketing stepchild’ because of its

limited and scattered use.

DIRECT MARKETING

Direct marketing consists of the group of promotional activities with the aim

of creating an immediate sale, or creating interaction with potential customers so as

to bring about an earlier sale. It is an interactive system of marketing, which uses

one or more forms of advertising media to create a transaction. Direct marketing

includes the following activities:

SALES PROMOTION

Sales promotion describes promotional methods using special short-term

techniques to persuade members of a target market to respond or undertake certain

activity.  As a reward, marketers offer something of value to those responding

generally in the form of lower cost of ownership for a purchased product (e.g., lower

purchase price, money back) or the inclusion of additional value-added material

(e.g., something more for the same price).

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Sales promotions are often confused with advertising.  For instance, a television

advertisement mentioning a contest awarding winners with a free trip to a

Caribbean island may give the contest the appearance of advertising.  While the

delivery of the marketer’s message through television media is certainly labeled as

advertising, what is contained in the message, namely the contest, is considered a

sales promotion.  The factors that distinguish between the two promotional

approaches are:

whether the promotion involves a short-term value proposition (e.g., the

contest is only offered for a limited period of time), and

The customer must perform some activity in order to be eligible to receive

the value proposition (e.g., customer must enter contest). 

The inclusion of a timing constraint and an activity requirement are

hallmarks of sales promotion.

Sales promotions are used by a wide range of organizations in both the

consumer and business markets, though the frequency and spending levels are

much greater for consumer products marketers. 

Finally, the high cost of advertising may drive many to seek alternative,

lower cost promotional techniques to meet their promotion goals.

Sales promotions are used widely in many industries and especially by marketers

selling to consumers.  We will see that the objectives of sales promotion are quite

different than advertising and are specifically designed to encourage customer

response.

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OBJECTIVES OF SALES PROMOTION

Sales promotion is a tool used to achieve most of the five major promotional

objectives

Building Product Awareness – Several sales promotion techniques are highly

effective in exposing customers to products for the first time and can serve 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 visitors.  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.

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Stimulating Demand – Next to building initial product awareness, the most

important use of sales promotion is to build demand by convincing customers

to make a purchase.  Special promotions, especially those that lower the cost

of ownership to the customer (e.g., price reduction), can be employed to

stimulate sales.

Reinforcing the Brand – Once customers have 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).  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.

Types of Sales Promotion

Sales promotion can be classified based on the primary target

audience to whom the promotion is directed.  These include:

Consumer Market Directed - Possibly the most well-known methods of sales

promotion are those intended to appeal to the final consumer.  Consumers

are exposed to sales promotions nearly every day, and as discussed later,

many buyers are conditioned to look for sales promotions prior to making

purchase decisions. 

Trade Market Directed – Marketers use sales promotions to target all

customers including partners within their channel of distribution.  Trade

promotions are initially used to entice channel members to carry a

marketer’s products and, once products are stocked, marketers utilize

promotions to strengthen the channel relationship. 

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Business-to-Business Market Directed – A small, but important, sub-set of

sales promotions are targeted to the business-to-business market.  While

these promotions may not carry the glamour associated with consumer or

trade promotions, B-to-B promotions are used in many industries.

Consumer Sales Promotion

Consumer sales promotions encompass a variety of short-term

promotional techniques designed to induce customers to respond in some

way.  The most popular consumer sales promotions are directly associated

with product purchasing.  These promotions are intended to enhance the

value of a product purchase by either reducing the overall cost of the product

(i.e., get same product but for less money) or by adding more benefit to the

regular purchase price (i.e., get more for the money). 

Consequently, a marketer’s promotional toolbox contains a large

variety of consumer promotions.

Following 11 types of consumer sales promotions:

1.Coupons

2. Rebates

3. Promotional Pricing

4. Trade-In

5. Loyalty Programs

6. Sampling and Free Trials

7. Free Product

8. Premiums

9. Contests and Sweepstakes

10. Demonstrations

11. Personal Appearances

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DEVELOPING PROMOTIONAL STRATEGY

Developing an effective promotional strategy demands more than just being

aware of the tools of promotion. Promotion is an ongoing process that requires

much planning. A strategy is simply a careful plan. The effectiveness of your

strategy depends on more than how much money you put on it. Effectiveness results

from the thoroughness of your planning and the consistency with which you carry it

out. The following 9 steps outline an easy to follow procedure for developing an

effective promotional strategy.

STEP1-FIGURING OUT WHO YOU ARE

ESTABLISHING YOUR IDENTITY

When people talk about developing image, they often forget about first

developing their industry. Identity and image are not synonymous. Identity is what

you really are. Image is how others see you. This is an important distinction because

how you see yourself may not be how you are seen by the public. To manage how

others see you, first clarify your identity. You can then project it in such a strong

way that identity and image are the same.

To accomplish this step, make a list of all your characteristics including such things

as facilities, location, price, and attraction.

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STEP2- DECIDING ON YOUR PROJECT

DEVELOPING THEME

The list of characteristics that make up your identity will be a long one. You

cannot and should not promote all of these characteristics. You need to decide on

what part of your identity you want to promote. This will be the theme for your

promotion strategy. Your theme is the one main idea, or message you want to

communicate with your promotional efforts. The theme must be intimately tied to

your identity. To determine the theme, ask yourself the following questions. “What

is there about my facility that would be appealing to visitors?” “What can I tell

them that would make them want to come and visit us?” “What makes my facility

unique?”

STEP3-DECIDING WHO YOU WANT TO ATTRACT

IDENTIFYING YOUR TARGET AUDIENCE

Deciding on your identity and theme is the foundation for your strategy.

Build on this foundation by deciding on whom you want to reach.

You must decide on and contact your target audience, those people you want

to reach with your information. Do you want to attract local or non-local visitors?

Repeat or first time visitors? Families or singles? Young or Old? Deciding on whom

you want to attract is important. To reach your target audience, you must identify

their needs and how they obtain information about the opportunities.

Identifying these sources of information is important so that you can find

your targets and distributes your information directly to them.

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STEP-4 WHAT DO YOU WANT TO ACCOMPLSH WITH YOUR STRATEGY

ESTABLISHING YOUR OBJECTIVES

Before going any further, decide what to accomplish with your promotional

strategy. This means establishing objectives that are very specific based on what you

want the outcome of your strategy, Objectives should have the following

characteristics

They should identify whom you are trying to reach.

They should state how much change you want to accomplish through your

promotion.

They should state how much time it will take to accomplish your objectives.

They should state what you want people to do because of your promotion.

STEP5- ACTUALLY GETTING YOUR MESSAGE ACROSS DEVELOPING

YOUR MESSAGE CONTENT

An important part of your content is theme. Do not try to get across two or

more ideas in the same message. This does not work, and will hinder your message.

All the information in your message must center on your theme. Your theme has to

blind your message together. Keeping the content center on your theme will also

help limit the amount of information you present. This helps keep your message

short and to the point. There are two types of information that can be use:

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Informative and persuasive. Information messages tell people something

without regard to these responses. Persuasive information tries to convince people to

do something.

STEP6- DECIDING HOW TO SAVE IT DEVELOPING YOUR MESSAGE

STRUCTURE

Putting your message together is called structure. How it is put together

depends on what type of information you are using. For persuasive messages, it will

depend on whether you are using rational or motivational information. A rational

massage has three parts.

The first part is the clam of the message. This is what you want people to

believe is true of you.

The second part is the evidence, or facts, that you use to support your claim.

The third part is the warrant. The warrant is a general hypothetical

statement that ties the evidence and the claim together. It is the “glue” that

holds the message together and helps it makes sense.

With rational messages, you need to decide if you want to use a one-sided

argument. A one-sided argument only presents the proside of the argument, while a

two-sided argument presents both sides. Which one you use will depend on which

one meets your needs and the type of audience. Generally, one-sided arguments are

better with audience already favorable to your message.

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Two sided arguments are best with audiences who are opposed to your

argument, are better educated or have already been exposed to counter arguments.

For motivational message, there are two parts: the claim and the appeal. Again, the

claim is what people to believe is true of you.

The appeal is a statement aimed at your audience’s particular needs or desires to

motivate them to do what you want. When using rational or motivational messages,

make sure the promotional tool you are using is credible with your audience. This is

especially true if you are using a spokesperson. Your spokesperson must be

competent and trustworthy in the eyes of your audience he/she should be likeable

and appear to fit in with your message.

STEP7- DECIDING HOW TO PRESENT IT.

Informational message are different from message. For them, organization is

the key. Since this is an informative message, all your information orderly manner.

Finally, whether using informative or persuasive message, there is one problem that

always arises where to place your punch line the key to your message. This will

depend on the type of audience you have. If you have a captive audience and lot of

time, place it at the end of your message as your climax. If your audience is non-

captive, place the punch line at the beginning of your message to get and keep their

attention.

Formatting your message is the next step. Format refers to how your

message will appear to people when you distribute it. The media or the method you

convey your message will determine your format. The number of types and

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combinations media available to use is almost endless. You are only limited by your

imagination.

Take any ideas that you like and adapt them to your format, but do not directly

copy them and make sure that you are adapting the ideas to your needs. Second,

learn the good and bad points of various media, including their limitations. Find out

what best suits your needs and what will allow you to meet your audience’s needs.

Finally, check to see what will be most cost effective. Once you select the media you

want to use, the actual message must be put together.

STEP8- TALKING YOUR MESSAGE TO YOUR AUDIENCE

CHOOSING YOUR DELIVERY SYSTEM

Most business people in the world agree that coming up with a good

promotional message is only half the battle. The other half is getting your message

to your target audience. Thus, the delivery system you choose is very important. A

delivery system is how you distribute your message and media.

There are two types of delivery systems. The first type is the formal delivery

system, one that you plan to use or in which you have control over the content of the

message, such as television, radio, newspapers, newsletters, and catalogs.

The second type is the informal delivery system. An informal delivery

system is one that you do not have control over, such as word-of-mouth, friends,

family members, and repeat visitors. Whether formal or informal, each system is

composed of a message and the media that is used to present it..

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STEP9- HOW IS IT GOING? EVALUATION

Creating and implementing a promotional strategy can drain your resources

it you do not regularly evaluate the strategy to see how effectively it is working.

This is where your objectives come in handy.

To evaluate your strategy you need only to determine whether you have

made progress in meeting your established objectives. Generally, it is good wait

one year after implementing your strategy to see if it works because promotional

effects can be cumulative. Always be ready to make changes.

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CHAPTER-4

STUDY ANALYSIS

TABLES

CHARTS

INTERPRETATIONS

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DATA SUMMARY

Data type : Primary

Data Instrument : A well structured questionnaire

Sample size : 354`Sample type : Random

Statistical method : Simple percentage

Period of study : 2 months

Place of study : Visakhapatnam

Organization : Spencer’s Hypermarket

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ANALYSIS

To know the sales promotion activities in spencer’s retail LTD. A structural

questionnaire was prepared and canvassed among the respondents of

Visakhapatnam.

On sample random basis the questionnaire was canvassed among them and at

times they were also interviewed reasonably to get more information and the data

thus collected was tabulated and the findings reseal the following.

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1. GENDER:

TABLE NO: 1

NO.OF RESPONDENTS PERCENT %

MALE 128 36%

FEMALE 226 64%

TOTAL 354 100%

CHART NO: 1

INTERPRETATION:

From the above table it can be understood that 64 percentage of the

respondents are Female gender and 36 percentage of the respondents are of Male

gender.

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1. AGE OF THE RESPONDENTS:

TABLE NO: 2

NO.OF RESPONDENTS PERCENT %

<18 3 1%

18-27 152 43%

28-40 122 34%

41-60 74 21%

ABOVE 60 3 1%

TOTAL 354 100%

CHART NO: 2

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INTERPRETATION:

From the above table it was found that, respondents are at age below

18 years are one percent, 43 percentage of the respondents are fall in range between

18 years to 27 years, 34 percentage of the respondents are fall in range between 28 years

to 40 years, 21 percentage of the respondents are fall in range between 41 years to 60

years and one percentage of the respondent are comes under above 60 years

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3. MARITAL STATUS:

TABLE NO: 3

NO.OF RESPONDENTS PERCENT %

MARRIED 261 74%

UN MARRIED 93 26%

TOTAL 354 100%

CHART NO : 3

INTERPRETATION:

From the above table it is clearly known to us that, 74 percentage of

the respondents are married and 26 percentage of the respondents are unmarried.

It is clear that this analysis carries the opinion of married persons when

compared with unmarried persons.

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4. OCCUPATION:

TABLE NO : 4

NO.OF RESPONDENTS PERCENT %

STUDENT 47 23%

HOUSE WIVES 173 50%

EMPLOYEES 83 24%

BUSINESS MEN 32 9%

OTHERS 14 4%

TOTAL 354 100%

CHART NO: 4

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INTERPRETATION:

From the above table it is clear known to us, 23 percentage of the

respondents are students, 50 percentage of the respondents are house wives, 24

percentage of the respondents are employees, 9 percentage of the respondents are

business men and 4 percentage of the respondents are others.

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5. EDUCATION:

TABLE NO: 5

NO.OF RESPONDENTS PERCENT %

BELOW 10TH 105 30%

INTER/+2 96 27%

GRADUATION 110 31%

POSTGRADUATION&ABOVE 43 12%

TOTAL 354 100%

CHART NO -5

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INTERPRETATION:

From the above table, it can noted that 30 percentage of the respondents

educational qualification are in below 10th class, 31 percentage of the respondents are

inter/+2, 27 percentage of the respondents are graduation and 12 percentage of the

respondents are Post Graduation& above.

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6. INCOME OF RESPONDENTS:

TABLE NO: 6

NO.OF RESPONDENTS PERCENT %

<5000 48 14%

5000-10000 93 26%

10001-20000 171 48%

20001-30000 33 9%

ABOVE 30000 9 3%

TOTAL 354 100%

CHART NO: 6

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INTERPRETATION:

Sample size being 354 is observed that, the respondents falls under the income

levels are as follows.

14 percentage of the respondents are at below Rs 5000, 26 percentage of the

respondents at the range of Rs 5000 to Rs 10000, 48 percentage of the respondents at

the range of Rs10001 to Rs20000, Nine percentage of the respondents at the range of

Rs 20001 to Rs 30000 and three percentage of the respondents at above 30000,

It is clear that the maximum number of the respondents is falling under the

range between Rs 10001 to Rs 20000

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7. HOW MUCH DO YOU SPEND ON SHOPPING PER MONTH?

TABLE NO: 7

NO.OF RESPONDENTS PERCENT %

<1000 44 13%

1001-2000 25 7%

2001-3000 106 30%

3001-5000 139 39%

ABOVE 5000 40 11%

TOTAL 354 100%

CHART NO: 7

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INTERPRETATION:

The statistics of the survey indicates that, 13 percentage of the respondents are

spending below Rs 1000 per month on shopping, seven percentage of the respondents

are spending between Rs 1001 to Rs 2000, 30 percentage of the respondents are

spending between Rs 2001 to Rs 3000, 39 percentage of the respondents are spending

between Rs 3001 to Rs 5000 and eleven percentage of the respondents are spending

above 5000

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8. AMOUNT SPENDS IN SPENCER’S PER MONTH:

TABLE NO: 8

NO.OF RESPONDENTS PERCENT %

<1000 190 54%

1001-2000 129 36%

2001-3000 30 8%

3001-5000 3 1%

ABOVE 5000 2 1%

TOTAL 354 100%

CHART NO: 8

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INTERPRETATION:

The statistics of the survey indicates that, 50 percentage of the respondents are

spending below Rs 1000 per month on shopping in Spencer’s , 36 percentage of the

respondents are spending between Rs 1001 to Rs 2000, eight percentage of the

respondents are spending between Rs 2001 to Rs 3000, one percentage of the

respondents are spending between Rs 3001 to Rs 5000 and one percentage of the

respondents are spending above 5000

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9. WHICH WEEK DOES YOU, VISIT THE STORE IN A WEEK?

TABLE NO: 9

NO.OF RESPONDENTS PERCENT %

1ST WEEK 83 23%

2ND WEEK 179 51%

3RD WEEK 39 11%

4TH WEEK 53 15%

TOTAL 100%

CHART NO: 9

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INTERPRETATION:

It is very interesting to note that, 23 percentage of the respondents

preferred first week to visit Spencer’s, 51 percentage of the respondents preferred

second week, 11 percentage of the respondents preferred third week and 15 percentage

of the respondents preferred forth week to visit Spencer’s hypermarket

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10. WHICH DAY DOES YOU, VISIT THE STORE IN A WEEK?

TABLE NO: 10

NO.OF RESPONDENTS PERCENT %

MONDAY 2 1%

TUESDAY 7 2%

WEDNESDAY 67 17%

THURSDAY 8 2%

FRIDAY 9 2%

SATURDAY 66 17%

SUNDAY 228 59%

TOTAL 387 100%

CHART NO: 10

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INTERPRETATION:

From the analysis it is understood that the majority of the respondents

prefer to visit the store on the Sundays i.e. 59 percentage, 17 percentage of the

respondents prefer to visit the store on the Wednesday & Saturdays, Two percentage of

the respondents prefer to visit the store on Tuesday, Thursday & Friday and one

percentage of the respondents visit store on Monday

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11. What time do you visit the store in a day?

TABLE NO: 11

NO.OF RESPONDENTS PERCENT %

a)Morning 15 4%

b) Afternoon 59 17%

c) evening 280 79%

TOTAL 354 100%

CHART NO: 11

INTERPRETATION:

From the analysis it is found that four percentage of the respondents

prefer morning time to visit Spencer’s, 17 percentage of the respondents prefer

afternoon time to visit Spencer’s and 79 percentage of the respondents prefer evening

time for shopping in Spencer’s

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12 (i). What is your opinion on price to be?

TABLE NO: 12

NO.OF RESPONDENTS PERCENT %

a) High 0 0%

b) Very high 0 0%

c) low 144 41%

d)Moderate 183 51%

e)Exact 29 8%

TOTAL 354 100%

CHART NO: 12

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INTERPRETATION:

The survey results shows that 41 percentage of the respondents opined low

price to be maintained, 51 percentage of the respondents opined to be moderate price to

be maintained, 8 percentage of the respondents opined to be exact price to be

maintained and none of the respondents opined to be high & very high price to be

maintained

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12(ii). What is your opinion on quality to be?

TABLE NO: 13

NO.OF RESPONDENTS PERCENT %

a)Excellent 220 62%

b)Above Avg 134 38%

c)Average 0 0%

d)Below Avg 0 0%

e)Poor 0 0%

TOTAL 100%

CHART NO: 13

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INTERPRETATION:

The survey results shows that majority of the respondents prefer to have excellent

quality to be maintained i.e. 62 percentage, 38 percentage of the respondents prefer to

have above average quality to be maintained and none of the respondents opined to

have average, Below average and poor quality to be maintained.

In point of interviewing all the respondents have said they were never want to

compromise on the quality of the product

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12(iii). What is your opinion on product range to be?

TABLE NO: 14

NO.OF RESPONDENTS PERCENT %

a)Excellent 142 41%

b)Above Avg 209 58%

c)Average 3 1%

d)Below Avg 0 0%

e)Poor 0 0%

TOTAL 354 100%

CHART NO: 14

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INTERPRETATION:

From the above table. It is clear that majority of the respondents prefer to have

the above average product range to be maintained on the store which should be a good

quality brand products.ie 58% and next followed by the excellent product range which

helps to have a pleasant & delighted shopping experience to all the customers and only

3 respondents had said that they want average products range to be maintained in the

store and none of the respondents prefer to have below average & poor product range

to be maintained

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12. What is the effective method of promotion in creating awareness?

NO.OF RESPONDENTS PERCENT %

a)Advertising 169 42%

b)direct Marketing 19 5%

c)Personal Contact 58 15%

d)Sales Promotion 151 38%

TOTAL 397 100%

TABLE NO: 15

CHART NO: 15

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INTERPRETATION:

From the above table it is very interesting to note that 42% of the respondents

felt the advertising as the effective method of promotion in creating awareness when we

compared with other promotion activities. 38% of the respondents are felt sales

promotions as the next effective method of promotion in creating awareness 15% of the

respondents are felt personal contact as the next method in creating awareness ad 5%

of the respondents are felt direct marketing.

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14. What type of offers do you prefer?

TABLE NO: 16

NO.OF RESPONDENTS PERCENT %

a)Price Off/Discounts 252 69%

b)Cash Price 17 4%

c)Free Gifts 59 16%

d)Price Pack deal 10 10%

e)Others 28 8%

TOTAL 366 100%

CHART NO: 16

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INTERPRETATION:

The statistics of the survey indicates that 62% respondents preferred price

off/discounts,4% preferred cash price,16% preferred free gifts, 10% preferred price

pack deal and 8% preferred other offers

From the above table t is very interesting to note that 69% of the respondents

prefer to home price off. Discounts when we compared with other offers 16% of the

respondents preferred for free gifts. 10% of the respondents preferred for price pack

deal. 4% of the respondents preferred for cash price and 8% of the respondents

preferred to have other offers.

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15. According to you which section need a high promotional Activities?

NO.OF RESPONDENTS PERCENT %

a)Garments 79 15%

b)electronics 103 19%

c)FMCG 101 18%

d)F &V 35 6%

e)Steples 166 30%

f)Furniture 35 6%

g)house ware 31 6%

TOTAL 550 100%

TABLE NO: 17

CHART NO : 17

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INTERPRETATION:

From the information given by the survey it is noticed that 15 percentage of

the respondents suggested garments section need high promotional activities, 19

percentage of the respondents suggested electronics section, 18 percentage of the

respondents suggested FMCG section, six percentage of the respondents suggested

F&V section, 30 percentage of the respondents suggested staples section, six percentage

of the respondents suggested furniture section and six percentage of the respondents

suggested on house ware section need a high promotional activities

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16. Are all the offers are coming to your notice?

TABLE NO: 18

NO.OF RESPONDENTS PERCENT %

a)Yes 62 18%

b)no 79 22%

c)sometimes 213 60%

TOTAL 354 100%

CHART NO: 18

INTERPRETATION:

It can be seen clearly from the survey analysis that 18 percentage of the

respondents are aware about all offers in Spencer’s, 22 percentage of the respondents

are unaware about the offers and 60 percentage of the respondents are aware

sometimes only.

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17. If any offers are coming means, do you want to know in advance?

TABLE NO: 19

NO.OF RESPONDENTS PERCENT %

Yes 317 90%

No 37 10%

TOTAL 354 100%

CHART NO: 19

INTERPRETATION:

The data analysis shows that 90 percentage of the respondents want to know

about offers in advance and 10 percentage didn’t want to know about offers in advance

It is clear that, Almost all the respondents have shown interest in knowing offers

in advance

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18. DO YOU WANT TO TAKE MEMBERSHIP CARD IN SPENCER'S FOR

SPECIAL OFFERS?

NO.OF RESPONDENTS PERCENT %

YES 293 83%

NO 61 17%

TOTAL 354 100%

TABLE NO: 2

CHART NO: 20

INTERPRETATION:

It is very interesting to note that 83 percentage of the

respondents wanted to take membership card in Spencer’s for special offers and 17

percentage of the respondents not showing interest to take a membership card.

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FINDINGSThe following findings drawn by the survey report:

Majority of the respondents preferred to visit spencer’s in Sundays and 2nd week in a

month

All most all the respondents wanted excellent quality products with moderate price and

average product range to be maintained.

Close to half of the respondents voted advertising as an effective promotional tool in

creating awareness about Spencer’s

Majority of the respondents showing interest to buy the products if it is having price

off/ Discount offer.

Though Spencer’s having effective and attractive sales promotional strategies, most of

times it is failing to reach customer notice.

Majority of the respondents showing to know the spencer’s offers in advance.

Maximum number of the respondents are willing to avail membership card for the

special offers in spencer’s

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SUGGESTIONS Spencer’s has to improve its customer support services for increasing the customer

loyalty.

Spencer’s may come up with more innovative packages, which satisfies all types of

customers

Spencer’s has to improve its brand image with the help of aggressive promotional

efforts

Spencer’s has to put more efforts in creating awareness to people about offers

Spencer’s has to maintain the good quality products with moderate price and wide

product range to be maintained.

In order to attract the customers Spencer’s should come up with innovative offers

in the sections like F&V, Staples, Furniture & House ware

In order to increase the sales, Spencer’s has to adopt the credit policy to the loyal

customers by giving them membership card which helps in maintaining customer

database

The company may establish a permanent machinery to make periodical surveys

from time to time to identity untapped market new uses of the product (demos,

jointly organize event management with famous hotels etc) new customers etc. It

strengthens the market share from new competitor who is rapidly entering into the

competitive market.

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CONCLUSION

In this competitive world, business growing very rapidly.

Customers desires , wants , needs are also increasing in this competitive so, every

business should starts in a view to stands forever in this competitive world and to

satisfy the customers which the their preference.

It's a business that's been around forever, and always will be, because as long

as people are willing to pay for something they want and need, you can guarantee

that there will always be somebody willing and able to sell it to them. So it can be

concluded that whatever business provides their customers with the most

convenience are sure to be the most successful. Hence Spencer’s promotional

activities must be much more effectively planned as to increase the sale volume.

.

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ANNEXURES

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QUESTIONAIRE

1) NAME: 2) GENDER: M / F

3) AGE: a) < 18 b) 18- 27 c) 28-40 4) MARTIAL STATUS: M / UM

d) 41-60 e) > 60

5) OCCUPATION; 6) EDUCATION:

7) INCOME LEVEL:

a)<5000 b) 5000-10000 c) 10001-20000 d) 20001-30000 e) above 30000

8) HOW MUCH DO YOU SPEND ON SHOPPING PER MONTH?

a)<1000 b) 1001-2000 c) 2001-3000 d) 3001-5000 e) above 5000

9) AMOUNT SPENDS IN SPENCER PER MONTH?

a)<1000 b) 1001-2000 c) 2001-3000 d) 3001-5000 e) above 5000

10) WHICH WEEK DO YOU VISIT THE SPENCER IN MONTH?

a) 1st week b) 2nd week c) 3rd week d) 4th WEEK\

11) WHAT DAY DO YOU VIST THE STORE IN WEEK?

a) Mon b) Tue c) Wed d) Thu e) Fri f) Sat g) Sun

12) WHICH TIME DO YOU VISIT THE STORE IN DAY

a) Morning b) Afternoon c) Evening

13) WHAT IS UR OPINION ON?

PRICE High Very high Low Moderate Exact

QUALITY Excellent Above avg Average Below avg Poor

PRODUCT Excellent Above avg Average Below avg Poor

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RANGE

14) WHAT IS THE EFFECTIVE METHOD OF PROMOTION IN CREATING

AWEARNESS?

a) Advertising b) Direct marketing c) Personal contact d) Sales promotion

15) WHAT TYPE OF OFFERS DO YOU PREFFER

a) Price off (or) Discounts b) Cash price c) Free gifts

d) Price-pack deal e) others (______________________________)

16) ACCORDING TO YOU WHICH SECTION NEED HIGH PROMOTIONAL

ACTIVITIES?

A) Garments b) Electronics c) FMCG d) F&V e) Staples

f) Furniture g) House wear

17) ISNT ALL THE OFFERS ARE COMING TO YOUR NOTICE

a) Yes b) No c) Sometimes

18) IF ANY SPECIAL OFFERS COMING MEANS DO YOU WANT KNOW IN

ADVANCE

a) Yes b) No if yes means give your contact no;

Email id:

Address:

19) DO YOU WANT TO TAKE MEMBERSHIP CARD IN SPENCERS FOR

SPECIAL OFFERS

a) Yes b) No

20) ANY OTHER SUGGESTIONS:

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BIBLIOGRAPHY

112

BIBLIOGRAPHY

TEXT BOOKS

Philip Kotler (2007), “Marketing Management” Prentice Hall of India, New Delhi,

Eleventh Edition.

Kotler and Armstrong (2001), “Principles of Marketing” Prentice Hall of India,

New Delhi.

ICFAI journals on retailing &Indian rising retail sector

WEBSITES

www.rpg retail.com

www.Google.com

www.wikipedia.com

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