Sub : Research Methodology

Project on

Role of Sales Promotion in FMCG

Presented by :

Jay Vakharia(03)

Shahrukh Khan(09)

Sunny Jain(13)

Yug Jain(17)

ContentsPurpose of ResearchObjectiveHypothesisNature of ResearchResearch MethodologyResearch DesignSampling DesignData Collection ToolData AnalysisResult Conclusion

Purpose of Research“Role of sales promotion in FMCG

sector (bathing soaps)”.To study consumer oriented sales

promotion in FMCG sector in which emphasis given to the effect of sales promotion on buying habits of consumers.

OBJECTIVETo study consumer preferences with

respect to sales promotion in FMCG sector.

To study the effect of sales promotions in FMCG sector especially in soaps industry.

To study consumer behavior in purchase of soaps.

To study media habits of consumer

HYPOTHESISHo: There is no significant difference between

consumer preference of cash discount and free gifts as sales promotion scheme.

H1: There is significant difference between consumer preference of cash discount and free gifts as sales promotion scheme.

Ho: Annual income do not have a significant effect on the purchase of Brand.

H1: Annual income have a significant effect on the purchase of Brand.

NATURE OF RESEARCHExploratory

RESEARCH METHODOLOGYResearch Objectives

Product categories under study(Bathing Soaps)

Research Design

We have focused on primary research. It includes the analysis and results of survey which focuses on consumer’s behaviour towards sales promotion campaign and promotional incentives given by companies to retailers to push their brands.

The survey is conducted with the help of structured questionnaire. We have also used secondary research for collecting information on FMCG industry i.e., balance sheet , turnover , new products introduced , variety of soaps available.

Sampling Detail

Target population: The population for this research study consists of the residence of south Mumbai.

Sampling unit: In this study the sampling unit is individual consumer.

Sample size: 25 consumers 25 retailers.

Sampling method: The sample is selected by using convenience-sampling method.

DATA COLLECTION TOOLPrimary Data Collection Method:

◦Survey method was used for primary data collection.

◦We used questionnaire as an instrument for survey method.

◦Structured questionnaire.◦Type of questionnaire: Open ended and

closed ended. Secondary Data Collection

method:◦Internet.

DATA ANALYSIS-consumer

1.Which brand of soap do you use ?

lux lifebuoy pears dove dettol0

5

10

15

20

25

22

53

6

14

RESPONDENTS

RESPONDENTS

Q2. Do you always buy the same brand of Soap?

Yes No0

5

10

15

20

25

30

28

22

RESPONDENTS

RESPONDENTS

Q3. Which factors do you normally consider while purchasing a particular brand of Soap?

FRAG

NANCE

QUALIT

Y

COMPA

NY IM

AGE

PRIC

E

PACKA

GING

0102030

BATHING SOAPS

BATHING SOAPS

Q4. Do you consider Annual Income while purchasing a particular brand of soap?

Here H1 is accepted as the graph shows that 39 out of 50 consumers consider A.income while purchasing.

YES NO0

10

20

30

40

50

RESPONDENTS

RESPONDENTS

Q5. Which of the following promotional schemes you have come across so far?

Coupo

ns

Disco

unt R

ate

Free

bies

scra

tch

card

s

luck

y dr

aw

Extra

qua

ntity

Bund

ling

0

10

20

30

40

RESPONDENT

RESPONDEnT

Q6. Which medium do you feel is suitable to promote the various promotional schemes?

Radio TV

Newsp

aper

Hoard

ings

Other

s0

10

20

30

3

30

12

3 2

Mediums to promote the pro-motional schemes

respondents

DATA ANALYSIS-Retailers

Q1. Since how long are you in this business?

1-5 Years 5-10 Years More than 10 years

0

5

10

15

20

25

30

35

respondents

Q2. Name the Soap you stock ?

lux lifebuoy pears dove dettol0

5

10

15

20

25

911

8

2

20

soaps in stock

respondent

Q3. Rank the following factors that customers look for in the purchase of Soap ? (Rank from 1-5)

1 2 3 4 50

5

10

15

20

25

30

35

FragranceQualityCompany ImagePricePackaging

Q4. Do you suggest customers to purchase a certain brand?

Q5. If Yes why?

 

Yes No0

20

40

Suggestion

Respondents

High

mar

gin

Qualit

y

Relat

ions

hip

No re

ason

0

10

20

30

Reasons

Respondents

Q6. Do customers look for various schemes in the product?

discounts, product bundling and extra quantity are more demanded by the consumers over others schemes.

Yes No0

10

20

30

40

50

Customers look for various schemes

Respondents

RESULTSOAPS RESPONDENT

(CONSUMERS)

RESPONDENT(RETAILERS)

R1 R2 D=R1-R2 D2

LUX 22 9 1 3 -2 4

LIFEBUOY

5 11 4 2 2 4

PEARS 3 8 5 4 1 1

DOVE 6 2 3 5 -2 4

DETTOL

14 20 2 1 1 1

TOTAL 14

Spearsman Rank is 0.16 Hence, there is no co-relation when the response taken from Consumers & Retailers

Findings People are not much aware of the schemes which continue in the market it

may be because of the present stock of the product at their place.

1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the market.

People are ready to switch over to another brand if they find better promotional schemes which suits their budget means more qyt + less cost + quality.

Retailer stocks all types of soap because of competition.  People are more quality and price oriented.  Consumer remember that name of the product by the company name and

also from the past performance of that company.

HUL attracts more consumers through such promotions, such as display of the product, banners etc.

 

Recommendations Companies need to create sufficient

awareness about sales promotion schemes through mass media in order to create awareness.

It is essential that companies need to design attractive, striking for scheme announcements.

It is necessary that the perceived value of a free gift has to be appealing and high for the target consumers.

Repetitive use of the same premium for a prolonged period may have negative effect on the loyal customers.

Limitation of the study We considered South Mumbai region only because of

limited time duration.

Due to this, our sample size is only 50, which is not very large.

  All the respondents could not fill their questionnaire on

their own due to language problem and also problem of time and lack of positive behavior.

  Respondent may give biased answer due to some lack of

information about other brands.  Findings of the study are based on the assumption that

the respondents have given correct information.

Conclusion