summer internship in the furniture republic

“Impact of promotional activity on the sales of TFR products”

AProject report on

Impact of promotional activity on the sale ofTFR products

Study conducted under guidance ofMr. Aditya Gupta (Industrial mentor)Dr. Shruti jain (Faculty mentor)

Report submitted to NIILM-CMS Greater Noida for partial fulfilment of the requirement for PGDM (2011-13) Submitted by: Vikram singh chauhan Roll no. – 2011139 Batch – (2011-13)

Declaration

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I, the undersigned, hereby declare that the Project Report entitled “ Impact of promotional activity on the sales of TFR products” writte n and submitted by me to NIILM-CMS, Greater Noida in partial fulfillment of the requirements for the award of degree of Post Graduate Diploma in Management under the guidance of Dr. Shruti Jain .My original work and the conclusions drawn therein are based on the material collected by myself.

Place: Vikram Singh Chauhan

Greater Noida Student of NIILM-CMS

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Certificate of Completion of Internship

This is to certify that Summer Project Report on “ Impact of promotional activity

on the sales of TFR products” prepared by “Vikram Singh Chauhan” Roll No.

“2011139” of PGDBM 2011-13 batch is his genuine effort under my guidance and

supervision.

Dr. Shruti Jain Vikram Singh Chauhan

Faculty Guide Student of NIILM-CMS

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INFORMATION SHEET :-

Name of the company – THE FURNITURE REPUBLIC

Address of the company – A-32, Sec.63, Noida

(off. NH-24, Opp. Indrapuram)

Phone No of company – (91) 801-020-3263

Date of commencement – 20th day of april 2012

Date of completion – 21th day of June 2012

Name of Industry Guide – Mr Aditya gupta

(Founder & CEO)

Student’s Roll No. – 2011139

Student’s E-mail ID – [email protected]

Student’s GSM – (91) 901-545-1181

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mailto:[email protected]


ACKNOWLEDGEMENT:-

A summer internship project is a golden opportunity for learning and self-development. I consider myself very lucky and honored to have so many wonderful people lead me through in completion of this project. Then I would like to thank my College president Dr. S. Neelamegham for providing me with this opportunity of having such a wonderful company for my summer training.

My grateful thanks to Mr. Aditya Gupta, CEO “THE FURNITURE REPUBLIC” who in spite of being extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct path. I do not know where I would have been without him. A humble ‘Thank you’ to Prof. Ms. Shruti Jain whose patience I have probably tested to the limit. She was always so involved in the entire process, shared her knowledge, and encouraged me to think. I would like to thanks Ms.Meetu NIILM-CMS for her efforts and help provided to me to get such an excellent opportunity. Last but not the least there were so many who shared valuable information that helped in the successful completion of this project.

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EXECUTIVE SUMMARY

The basic concept of my project “ Impact of promotional activities on sales of TFR products ” was based on sales promotion and in store selling. For this I got the training from TFR about product material such as leather, leatherite ,type of wood.Consumer retention is the key success factor for any competitive market. An effort was made to ascertain and analysis customer views and preferences for the product through process of Brand Recall. Also, a detailed study was made to understand the performance pattern of major competitors of TFR.In doing so, it was possible to assess the competition in the market, hence enabling us to position ourselves more effectively and strategize on a long term basis. During the course of this project, I was also fortunate enough to be able to study the promotional campaigns carried out by the company.This report contains the findings arrived after detailed analysis of the data received after questionnaires. The study was also carried out to find out how to increase sell of brands. We did many promotional activities such as ATL, BTL, TTL activity and I went to various societies, corporate offices, major metro stations for creating brand awareness. The promotional activities like canopy shows and broachers distribution were carried out at greater noida. In this activity we have given live demo of household furniture in our company demo flat at vasundhra olive county to the end user i.e. the customers; this activity was mainly done in the indirapuram and vasundharaand ec. At sec.63. Giving them demo, and broachers, and handling there queries regarding the Products .

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TABLE OF CONTENT:-

Table of ContentsDeclaration.................................................................................................................................................2

INFORMATION SHEET :-...............................................................................................................................4

Chapter 1 – Introduction to the topic..........................................................................................................9

1.2 Objectives of my project.........................................................................................................................9

1.3 Structure of my project........................................................................................................................10

Chapter 2 – Literature Review...................................................................................................................11

2.1 BRIEF HISTORY OFINDIAN FURNITURE INDUSTRY................................................................................11

2.2 Furniture industry composition:-....................................................................................11

Household furniture comprises of..............................................................................................................12

2.3 Market Capitalization..................................................................................................................13

2.4 Top leading Companies........................................................................................................................14

2.5 Carrier opportunities............................................................................................................................16

Chapter 3 – Companies profile...................................................................................................................17

3.1 Company: -THE FURNITURE REPUBLIC.................................................................................................17

3.1.1 MD’s message...........................................................................................................................18

3.1.3 MISSION............................................................................................................................................18

3.2 4- P’s of furniture industry...................................................................................................................18

3.2.1 Products............................................................................................................................................18

Household Furniture..........................................................................................................................19

Office Furniture.................................................................................................................................19

3.2.2 Price...................................................................................................................................................19

3.2.3 Place..................................................................................................................................................19

3.2.4 Promotions........................................................................................................................................19

3.3 Key success factor of the company.......................................................................................................20

3.4 Build the brand............................................................................................................................20

3.5 Understand the market...............................................................................................................20

Chapter – 4: Milestones of company.........................................................................................................21

4.1 Sharda exports................................................................................................................................22

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...................................................................................................................................................................22

4.2 IHDP (international home deco park)...................................................................................................23

4.3 The furniture republic (TFR)

...................................................................................................................................................................24

Below the line (BTL) / Above the line(ATL) / Through the line (TTL) Advertising.......................................39

Chapter 5 – Research Methodology...........................................................................................................46

Chapter 5: FINDINGS AND CONCLUSIONS.................................................................................................59

5.1 FINDINGS AND CONCLUSIONS..............................................................................................................59

Chapter 6: Limitations...............................................................................................................................60

Limitations..................................................................................................................................................60

Biblography...........................................................................................................................................61

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Chapter 1 – Introduction to the topic

1.2 Objectives of my project

The Report will highlight the effectiveness and applicability factor of sales promotion and advertisement techniques (BTL activity). The research study is of empirical in nature. It has the following objectives:

o To investigate the effectiveness of sales promotion technique on purchase

decision.o To study the effectiveness of advertising (BTL activity ) on purchase

decision.o To understand and evaluate the scope of BTL activity and its significance in

driving the sales and the comparative study between the sales generated from the BTL and ATL activity.

o Comparison b/w the no. of footfalls in the store due to ATL and BTL

activity and the analysis of the same.

o Understanding the needs of customers for new furniture and to facilitate

THE FURNITURE REPUBLIC to plan their future strategies accordingly.o To increase the no of conversion of the customers visiting the OLIVE

COUNTY flat as well as The TFR by calling them and taking their feedback so as to make them recognize and recall brand, thus enhancing the brand equity.

o To increase the no of footfalls and the conversion ratio by making them see

the fully designed and furnished flat at Olive County which was done by TFR.

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1.3 Structure of my project

I have divided my project report into well-defined chapters. The first chapter is an introductory chapter that provides a background for the start of the project. It highlights the objectives of my study & details the project structure.

The second Chapter is an overview of the India Market for past years which include Indian stock market along with Gold ETF.

Chapter 3 gives an insight of the literature on Portfolio analysis/management. I have included a small part explaining the basics of Portfolio management, risk v/s return

Chapter 4 describes the different methods for evaluating the portfolios such as Sharpe method, Treynor method, and the significance of beta. This chapter also specifies the method used for this research

Chapter 5 states the research methodology, selection of different portfolios, and their evaluation with the interpretation

Chapter6 another two portfolios based on systematic and unsystematic selection is shown in

Chapter 7 is an extension from here, as it gives the concluding remarks of the entire study along with the primary limitations of this study.

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Chapter 2 – Literature Review2.1 BRIEF HISTORY OFINDIAN FURNITURE INDUSTRY

As of 2011, the Indian furniture market is estimated to be worth US$ 307,922 million. Of this, wooden furniture accounts for US$ 109,358 million. About 13.5 per cent (US$ 41569 million) of this (wooden furniture) is imported and imports are growing at 60 to 70 per cent every year. India was the largest furniture importer in the world in 2010-11, with a 27 percent share in the furniture imports worldwide. A total of 1,15,476 importers shipped furniture to India during this period, mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.The furniture sector in India makes a marginal contribution to the Gross Domestic Product (GDP), representing about 0.8 per cent of the total GDP. The major part of this industry, approximately 85 per cent is in the unorganized sector. The remaining 15 per cent comprises of large manufacturers, such asGodrej & Boyce Manufacturing Co. Ltd., BP Ergo, Featherlite, Haworth, Style Spa, Yantra, Renaissance, Millennium Lifestyles, Durian, Kian, Tangent, Furniture Concepts, Furniturewala, Zuari, Truzo, N R Jasani & Company, V3 Engineers, PSL Modular Furniture etc.The range of indigenous furniture available in India includes both residential and contract system furniture. Manufacturers in India usually use a three-tier selling and distribution structure, comprising of the distributor, wholesaler and retailer. The market is mainly concentrated in tier A, B and C category cities (the top 589 cities).Tier A and B type cities together constitute 43 per cent of the total market. With a healthy economy and increased household and institutional spending, the market is

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2.2 Furniture industry composition:-As with the global market, household furniture is the largestsegment in the Indian furniture market, accounting for about 65 percent of furniture sales. This is followed by, the office furniture segment with a 20 percent share and the contract segment, accounting for the remaining15 percent.

53%

32%

15%

perception

genuinenot genuinedoubtful

Source: KPMG Analysis for IBEF

Household furniture:-

Household furniture in India is available in a wide range, to cater to different customer needs. A typical middle class urban Indian home has five rooms (including kitchen and bathroom). About 25 percent of the urban populations live in homes with five rooms or more, while 45 percent live in houses with three rooms or less. About 16 percent is estimated to live in single-room homes. The rich and upper middle class is typically very attentive to design and quality, so price is rarely a determining factor. In general, European style furniture is only found in homes of the urban upper class. Demand for furniture of international standards is limited to the larger cities. It is also estimated that the wealthier classes do not change furniture very frequently. The average life of a piece of furniture is about 20 years and some craftsmen’s pieces are used for as long as 50-70 years. Colonial furniture is still very common in India.

Household furniture comprises of

Living Room Furniture


2.3 Market Capitalization

The Indian wooden furniture industry is able to generate approximately a turnover of Rs 3,500 crore annually. The market of wooden furniture solely owns the share of nearly Rs 60 crore. And as per one of the survey done recently, the industry is expected to grow by 20 percent in coming times.

2.4 Top leading CompaniesGodrej & Boyce Manufacturing Co. Ltd.

• It is a part of the Godrej Group and was incorporated in 1932. The Godrej Group recorded revenues of around US$ 813 million in FY’11• It mainly manufactures consumer products, office equipment, consumer appliances, chemicals, agro products, security equipment, industrial products and offer office automation and storage solutions• The company’s manufacturing facility is located in Mumbai, Maharastra• The company has exclusive showrooms and dealer outlets across India

Featherlite• Featherlite is one of India’s largest furniture manufacturingcompanies and was started in 1965• Featherlite has been retailing furniture for the past 20 years and the first outlet was opened in Bangalore in 1987• The company has a state-of-the-art manufacturing plant and is engaged in continuous R&D • The company’s manufacturing plants are located in Bangalore and Hosur. It has a presence in 22 locations across India• It has around 25 exclusive showrooms in Mumbai, Chennai,Bangalore, Delhi, Kolkata and Hyderabad. It manufacturesaround 20, 000 chairs and 3, 400 workstations per month.35 per cent of the total production is sold through retail outlets• The company has an employee strength of 500, which includes architects, interior designers and others

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Style Spa• Style Spa Furniture Limited is promoted by the Zuari-Chambal Group. Established in India in 1997, to manufacture and retail furniture, the company is headquartered in Chennai• The US$ 15 million manufacturing facility at Kakkalur, nearChennai, in the state of Tamil Nadu, is a sophisticated and fully automated plant, which is one of Asia’s most modern and largest manufacturing facilities. The ISO-certified plant produces around 0.2 million furniture pieces annually• The company manufactures home and office furniture that is retailed through about 92 exclusive retail outlets, spread across the country • The company also provides after sales services throughits showrooms

Millennium Lifestyle• Millennium Lifestyle is a family owned enterprise incorporated in 1999. The family had nearly 75 years of experience in retailing Indian art and antiques • Millennium Lifestyle offers a one-stop solution to cater to the customers’ complete furniture requirements, as it offers a wide range of furniture from around the world under one roof• A number of brands across various product categories are sold from the company’s retail stores - ArteM, Divani, Loddenkemper, RioArt, Sauder, Sherwood and Softplus. Millennium Lifestyle has its showrooms spread across thetwo southern Indian cities of Bangalore and Hyderabad • The company also provides the ‘designing your own interior sitting at home’ service with the help of an online interactive room designer

Durian• Durian is a major player in imported furniture, offering living, bedroom, dining room and office furniture • The company has been set up by the Dokania Group, which has been involved in plywood manufacturing for about 25 years• Durian has over 40 imported furniture showrooms in the country• The company also offers free interior design consultancy and free delivery and furniture installation

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• Nilkamal Group of Companies has a turnover of over US$ 125 million. It is the leader in plastic moulded furniture • The company has diversified into the lifestyle furniture business by launching @home, which is a complete home solution store offering contemporary readymade wooden furniture. The company has eight manufacturing locationsin India. It also has joint ventures in Bangladesh and Sri Lanka• It provides services like design solutions, professional guidance and interest free loans, besides furniture and accessories• The main strengths of the Group are a 350-member wide direct sales network, a 350-plus strong dealer network, 33 regional offices in all major Indian industrial cities and 24 warehouses all over India and a warehousing facility along with a marketing office in the UAE

.

2.5 Carrier opportunities

There are numerous opportunities in India for business of Furniture as the household has increased its income while the economy is reaching to new horizons of developments. There are opportunities like start up a business or work as an interior decorator of furniture, or the supplier of the furniture to the local market from the national market. Minimum qualification is required for any candidate to start up the job in this industry.

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Chapter 3 – Companies profile

3.1 Company: -THE FURNITURE REPUBLIC

A brand for furniture that gives every customer a right to good furniture, the right to make an informed decision, the right to the best I value, quality and service.

TFR is one of the leading manufacturers of superior quality laminates range that can only be limited by the imagination. With the stringent quality check, high manufacturing standards and modern infrastructure, it offers top quality decorative laminates, door skins, metal foil, dry wipe marker board, chalk board, post forming, compact, digital and screen printed laminates with Borer, Fungus and Termite (BFT) guard on all its laminates. Realistic natural textures paired with veneer prints and creative abstract textures, metallic foils and fancy prints enables you use Durian Laminates to express your individuality in a myriad of ways. From being the pioneers in plywood and veneer business to being the leading lifestyle brand in India, our journey has been a memorable one. A journey that has been event fully marked by numerous pioneering achievements in the Interiors Infrastructure Industry. Today we touch the lives of so many of Indians everyday with our range of innovative laminates, sturdy doors and world class home and Office & Home furniture. And this has been possible because of our passion for excellence in everything that I do. In fact at Durian, excellence is an attitude. An attitude that has been taken to heart by our strong and committed customer-centric team of professionals across pan India. Store is among the select few in India to be awarded with the internationally acclaimed Forest Stewardship Council (FSC) certification apart from the prestigious ISO 9001 and 14001certifications. In our pursuit of excellence I will always be committed to enrich your lifestyles with newer and innovative products.

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3.1.1 MD’s messageMr. Aditya Gupta

As you might have read: LIVE SMART, BUY RIGHT-is our simple but strong message to the customer. It is also our credo. Unless we buy smart and right from our factories, we won’t be able to deliver delight to our customers .Our customer are design conscious, value seeking and have several demands on their time. We totally support their desire to buy smart things, with good quality and genuine value. It is time to declare freedom from boring interiors, it’s your republic.

3.1.3 MISSIONThis mission statement reflects our proud past and our desire for the future. This is the mantra that drives us in everything that we do. From design through fulfilment, we continuously strive to provide the best product at the best prices accompanied by the best service in the industry. Being the best and bringing the best to you is our relentless pursuit

3.1.4 VISION

"Through positive energy, faith and passion, providing the best possible product and service inthe market and therefore creating dynamic growth and prosperity.”

3.2 4- P’s of furniture industry

3.2.1 Products

Under this heading a marketer needs to consider the thing that is being sold. This is not just the physical product itself, but also anything related to how it is made, packaged and named. Under this heading the marketer also needs to consider product/service options, the after-sales service, warranties, and servicing. For example, look at all the options available on a major car manufacturer's website. You might also consider all the choices you might have to make for a simple flight:

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Household FurnitureSofa, Lounger, Dining, Bed Room, Home office, Side & Center Table, Storage, Miscellaneous, Computer Table etc.

Office FurnitureDesks, Conference Table, Chair, Miscellaneous and etc.

Contract segment

In this segment we include all the furniture which is used to build hotels.

3.2.2 PriceThis heading refers to decisions about how much to charge for goods and services. It may be easy for you as a manager to neglect this aspect of the mix in favors of the more 'glamorous' promotion and product areas, but ultimately decisions over price affect the viability of a brand and the profitability of an organization. Pricing is also much more complex than you might think.

3.2.3 PlaceThis heading refers to distribution. This means all aspects related to how goods and services are 'moved from the producers to the end user. This means the coordination of retailers and/or wholesales and in the case of products the logistics involved in moving from factory/warehouse/head office, to the end user. Most goods are sold through intermediaries, (for example, retailers). Marketers must therefore consider the type, size and location of retailers and possibly also the training of retail staff

3.2.4 PromotionsThis heading refers to all types of communication that relate to a specific marketing campaign. This includes communication with retailers and distributors, communication with purchasers and end users and also internal communication with the sales force and other employees. Promotion is an area with considerable innovation. Marketers put great efforts into finding new ways to communicate with consumers. When people think, or talk about marketing they are often only

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considering promotions. This is because t is the most visible part of the marketing process after the product itself. But it would be a mistake to focus only on promotions. Promotions work best when they are considered alongside decisions about products, pricing and place.

•Direct Marketing

•Sponsorship

•Public Relations

•Personal Selling

•Advertising

•Sales Promotions

3.3 Key success factor of the company

While the Indian furniture market is growing rapidly and can yield sustained advantages, an assessment of the sector and the key trends driving it throw up a few key take-aways for potential investors. These are:

3.4 Build the brand

India being a price and value-conscious market, consumers typically look for cues that indicate assurance of value. A strong brand is important for furniture manufacturers in this respect, to increase customer awareness and trust. Participation in furniture trade shows, organizing seminars, etc., could therefore prove to be useful means to build a brand.

3.5 Understand the market

Potential investors would also need to concentrate on specific regions customer segments initially, to establish themselves and test the market before investing in a national distribution network. Establishing a liaison Office & Home to study the market extensively and identifying investment opportunities will also prove to be steps that will enable investors to firm up their India operations

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Chapter – 4: Milestones of company

Aditya Gupta, Chairman

Aditya is co-founder and Chairman of Sharda exports, GlocalEdge and The furniture republic. He is company's strategic advisor and a visionary entrepreneur who has created corporations worth $150M.

Aditya and his brother Ashish started Sharda Exports and ihdp Business Park and the Furniture republic. Under their leadership, Sharda Exports became the fastest growing floor covering manufacturer and exporter in India. Due to its creative designs and quality-driven approach, Sharda Exports has become a leading floor covering exporter in India and has won consecutive national awards since 1997.

It exports products to 350 world-renowned brands, retail stores, and design houses in 57 countries. They pioneered ihdp, a first of its kind business park in Asia. This business park brings together home fashion exporters, provides temporary display opportunities for global buyers, and is a first class corporate park with offices of several multinational corporations. Aditya's extensive global travels and relationships bring tremendous value to the company's wealth of network and knowledge.

Mr. Aditya holds an MBA from Faculty of Management Studies (FMS) and a BE in Mechanical Engineering from Indian Institute of Technology Roorkee (IITR). Aditya is an avid photographer, squash player, and adventure sports enthusiast.

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4.1 Sharda exports

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4.2 IHDP (international home deco park)

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4.3 The furniture republic (TFR)

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1. IntroductionNow a days, even if we are at home, on the street or in the cinema, we can notice how many Companies are speaking to us all the time. Information is coming from numerous different sources, and can reach us in our bed, and which is so personal, even in the toilet. Tailored information always reaches its target, and then everything will depend on the individual’s decision. The goal is to make customers loyal once they have decided to purchase one brand’s product. We can also observe ourselves as well as others feeling some kind of satisfaction during shopping, which is because of the ‘good decision’ we made about the purchased products. What does this ‘good decision’ mean actually? I think that nobody can tell us what a good decision exactly is. There are too many differentview point, as everybody is different in the world. That is the same situation when companies try to persuade people that they are the best possible choice in a particular market. They use numerous ways of marketing communication, by the help of BTL and ATL tools, but then they also have to decide which form of communication to choose, which will be the most suitable for their target group. However, it is for sure that in many cases BTL communication can establish personal relationship between products and customers, so it can be more efficient.

In my thesis my objective is to find out what the current advertising tendencies Whether there are more companies using BTL today or there will be more using in the future. I have prepared my thesis in a BTL activity. I got lots of help from my mentor, and also got the chance to get involved in projects, such as the BTL activity of THE FURNITURE REPUBLIC. So, I mainly prepared my report based on my collected personal experiences.In my Report, I analyse the concept of BTL, and examined the effect of BTL activities on consumers by the help of some case studies experienced during my internship.the question: ‘What will be the future of BTL marketing?’

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The expression Below-the-line is coming from practice. The world’s biggest cosmetic- and domestic-chemical-products-producing company, Procter and Gamble classified its costs in two different groups: for its traditional mass media and for the non-traditional elements. In traditional mass media, agencies are receiving commission. Procter and Gamble wanted to know how much this commission was, so they wrote those costs for non-traditional mediumsin a different column of the company’s bookkeeping – so the agencies’ commission started to be counted separately.Therefore, every advertising and commercial tool, which does not contain agency commission, is in the category of BTL. It has to be clarified what goes under the agency commission concept since it would not be concrete.The aim of BTL communication is to develop private relationship with the customer, and to inspire them to speak to us. We can introduce novelties in a very pleasant way, so we are able to present specific information to our clients.

2.1. Concept of below-the-lineThere are many definitions of below-the-line. Basically, these definitions can be divided into two groups. According to the first one, every kind of non-classical advertising tool, that is not press release, TV, cinema, radio-spot or public advertisement, can be mentioned among below-the-line tools. The second one puts the emphasis on agency commission, and declares that every kind of marketing activity that does not contain commission is part of marketingbelow the line. It is important to note that each explanation highlights those marketing tools that are not part of the below-the-line group. However, the characteristics of these definitions can easily picture the variety and great number of possibilities of below the line marketing We can examine marketing tools in a way that whose property the applied mediums are. In this case, we can differentiate three groups. Above-the-line media: the applied media duringthe communication is private property. Meaning TV commercial, radio spots, press release, billboards, and other public place tools. Provisional media: the advertising tool is publicproperty, meaning direct marketing (DM). Below-the-line media: medium is the property ofthe advertiser, meaning point-of-sales/point-of-purchase (POS/POP) tools, coupons, etc.

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There are some cases, where the below-the-line tools are more effective than the traditional advertisements. Reasons for this can be: Easier selection, more accurate reaching of the target group More controllable hence cost effective Creates opportunity to meet directly with the product/service ( sampling, event marketing)Interactive, meaning that it makes customers act. Determining the exact target group makes communication more personal Effectiveness can be measured easier by BTL Gives unique opportunities in making differences from competitors Brand-supporting In case of certain products (ex: tobacco), the target market cannot be reached – or just partly – through traditional media because of the law forbidding it. Then the importance of tools below the line increases.

2.4. The position of BTL in marketing communication

Nowadays more advertisers are choosing mass media tools for their products or services. They do not use below the line activities. However, it is not always beneficial to use intense television, radio, newspapers or billboards advertising in case of purpose of selling or introducing products. Applying other marketing tools is only possible if the ATL campaign has not used up all the available financial resources for advertising. At the same time, many companies consider ATL tools a better option, because they cannot reach the necessary advertising frequency required for the desired effect. Lots of people think that another ‘advantage’ of ATL communication is that more customers can be reached during a campaign therefore the cost of 1 contact is absolutely less than that of a BTL campaign. This can be true in general, but an important difference is that ATL communication has bigger number of standard deviation while in the case of BTL media the target is substantially more accurately reached. Also at below-the-line the customer encounters the tools where the purchasing decision is actually made. People can easily look through those advertisings on TV, radio,press or in public area billboards, so tools appearing in shops with reminding effects can highly contribute make a positive purchasing decision. At the same time, it is worth to mention that patronizing a below-the-line campaign with traditional ones can make it even more effective. Now a days in Hungary, companies spend only 3 per cent of their marketing budget on below-the-line activities; this ratio in the US is more than 50 per cent. The reason of this considerable difference is that the significance of below-the-line marketing is not recognized yet, and the experienced experts are missing as well.27 | P a g e


2.5. Parts of BTLClassifying the areas and tools of below-the-line reflects its complexity and variability:a.) Public Relationb.) Direct marketingc.) Sales Promotiond.) Advertising in-store (POS, POP)e.) Fairs and exhibitionsf.) Event marketingg.) Sponsoringh.) Personal selling

2.5.1 - Public RelationPR is a planned and continuous set of activities, of which the target are the customers of the company, its public opinion, the understanding between its tighter and broader environment and building of trust. We can also talk about company image and internal PR meaning the company’s internal communication. In both cases, there is considerably much more than marketing communication. In case of many companies PR concentrates on press-relations, is an important but not the only element. Good press relationship can improve the situation of the company; can help change its image. According to the direction of Public Relation we cantalk about internal and external PR. The previous one means the information flows between leaders – employees, organizations, while the latter one is about the communicational relationship built with the outside business environment.

Characteristics of PR:

• Organizational, mostly corporate point of view, success is based on good relationship with employees and the public• The tool of forming public opinion, indirect influence, nurtures trust.• Endeavours mutual understanding, from a coordin -ating point of view,it considers environmental problems.• An overall group of activities,• Employees of the company are the executives of PR activities.

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• Informing of the public and feedback are done during the communicational process.• It has an effect on various fields through the employees, like on lives, way of thinking, relations, market performance of the economy, demand and supply and sometimes even on price policies.• Is enriching human resources: builds personal, human relations.

2.5.2-Direct marketing According to the broadest expression

Direct marketing means all the possible tools of marketing and communication in setting up direct consumer relationship. According to the tighter expression, direct marketing constitutes of tools of marketing communication. According to the American Direct Marketing Association, direct marketing is a kind of interactive method in the field of marketing that can be used anywhere and which – by using one or more advertising media – can have an effect which can be measured by replies and

Number of purchases made.Characteristics of DM:• Puts human being in the centre,• Can be measured by concrete enquiries and purchases,• Fosters dialogue,• Communication with the buyer can be more accurate and personalized,• Addressed character, message is customized to the customer's needs and wants: segmented specific content, tailored to size according to the consumer's profile,• Feedback can be registered, direct measuring,• Necessity of computerized database.

Advantage of direct marketing enables:• Handling a number of consumer groups and the segmentation of the market,• Identification of target markets, unlike segmentation and grouping of “niche-product” of bidders on the mass market.

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• Improving relations with partners and with the supplier background,• Regular and up-to-date information about needs, requirements and about changes of demand,• Elimination/dampening of the so called noises, the lose of information by eliminating mediation• Reducing ‘standard deviation’ of the applied communicational tools,• Building brand loyalty,• Reducing costs,• Accelerates cash-flow,• Comparison of expenditures and outputs, the concrete measurement of effectiveness.

2.5.3 - Sales Promotion = SPSales Promotion refers to all the tools of which objective is the immediate increase of sales by providing price-incentives through a given period of time to customers / retailers. According to the definition of the American Marketing Association: ‘Sales Promotion refers to all the marketing activities that stimulates customer purchase and the effectiveness of merchandising activity, but does not relate to the concept of personal selling, advertising nor to Public.Relation, like for example: visits, exhibitions and fairs, demonstrations and the various, not traditional activities and not standardized sales efforts.’

The system of Sales Promotion: PUSH – instructions and its effects: producers stimulate wholesalers and retailers to order.PULL – instructions and its effects: demand of consumers is created by the stimulation of producers, merchandisers and different advertisements.Objectives of customer sales promotion:•Raises interest about products and services,• Forming direct relation between the customer and the product,• Emphasizes product characteristics,

• Exercise auxiliary inspiration.Objectives of merchandise sales promotion:• Primary aspect is to take business into focus,

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• According to this to lure the customer into the shop,• Passing storing costs on to the customer,• Increase turnover,• Increase turnover speed,• Clean-out the shelves.Methods of stimulating customers:• Presenting the product by assembling, sampling and try-out,• Price reduction,• Continuous sales discounts (POS)• Services during selling secure appropriate usage. Its tools are manuals, try-out, delivery service, installation and tutorial• Gifts, free bags, prizes.Gifts and prizes are subject to the purchase of a particular product or to a particular sum of money spent. The easiest form of these is when customers get some complimentary items besides the purchased product. A little more difficult but also more stimulating is when customers have to send the receipt of the purchase to the rewarding company so then they willget the gift by post.• Purchasing voucher, couponPurchasing vouchers are mainly given by manufacturing companies to the customers. Thesecan be used instead of cash when buying. As a rule it is used when a new product is launched.• Consumer competitions, prize-winning games, draw.• Refund, redeeming discount, guarantee conditions.• Sample try-out, sampling.

2. 5.4 – Point Of Sales advertisement (POS, POP)There are many factors justifying the increasing importance of point of sales advertisements.Most of them are confirmed by scientific researches as well:

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• Mass communicational campaigns flood customers with immense amounts of information that cannot be stored in their memory in the long run. Therefore reminding advertisements in the sales location can mean a significant competitive edge.• During the mass communicational advertisements the product is presented by the help of a photo or illustration, so the customer can neither see nor experience the characteristics of the product that could influence him/her in the purchasing decision (package, surface,flavour). She/he would only have this possibility in the shop.• By the spreading of self-service businesses with decreased staff numbers, purchasing isbecoming more impersonal. Then the buyer will make his/her decision of which productto buy and how many of it with lack of information.• The aim of shops and of network of shops is to let people living close to them becomeloyal customers in a greater number. Hence, it is indispensable to let potential buyersknow their assortment and range of services.• Besides the appearance of new products, the variety of substitute and supplementarygoods is increasing. Their advantages can be presented mainly in the shop itself, since thecustomer can get into direct touch with the product there.• It was recognized and acknowledged that an environment in which purchasing is joy andpleasure for the customer has to be established at the sales locations. This could be doneby inner and outer tools of the merchandiser and by the tools of advertisement of theproducer. It is necessary to provide opportunities for continous sales promotions and othersales-stimulating activities (sampling, price discount). However, in order to work out allthese efficiently, there is an absolute need for a continuous, mutually trust-based

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cooperation of the producer and of the merchandise.Psychological characteristics of sales location advertisements:Psychology differentiates active and passive memory. We mean the following under activememory: if a human being sees an advertisement could he recall actual events by himself orby answering a question? Usually this memory is inaccurate and cloudy. Passive memory gets into work automatically according to the stored information of a seen advertisement. Noticinga familiar face in the crowd will calm and make the man happy in case the relation betweenthe two is good. Therefore, when the mass – communication advertisement has alreadyestablished a positive (at least not negative) attitude to the product, a new meeting with it atthe spot of sales can generate an even stronger effect of the customer. That is whyadvertisements at the spot of sales play an important role in activating passive memory.There are some examples for tools building on Psychological effects:- Configuring and placing display (it is important that the display matches the message of mass-communication)- Placing daily consuming goods at not too busy spots, goods generating impulse haveto be in the front of the store or near the cashier.- Showing the product on more types of visual and

Audio visual aids.- Daily products should be placed on the lower shelves of the stand while products generating impulse have to be on eye-level-shelves.

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Organizing guidelines

The carrier of sales spot advertisement is practically the whole store and those inner and outer tools, methods that result the increase of turnover of the store. The design of the on-spot-sales-advertisement is affected by the shop's location, type, system of sales.

Configuring sales spot

When configuring the inner space of the store there are important aspects that have to be considered: the customer should purchase in a civilised environment, let her feel comfortable, and let her go home with the feeling and experience that make the return of that customer sure.When configuring the inside of the store, it is basic to provide enough space for comfortable purchasing and for using the services. Also, have to pay attention to provide sufficient space for executing sampling, placing displays and prize winning games. Wide and clear passageways let customers look around properly in the store. Nurseries, shops in the store (shop in the shop) make purchasing even easier and more comfortable.

Placing the products

Purchasing has two types: planned in advance and impulse purchasing. Taking these into consideration goods should be placed in a way that daily

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products are in the inner side of the store, preferably at a constant place, while those products generating impulse purchasing are near to cashiers.Since some points of the store are not equal customer-traffic-wise when configuring the dual-base sales activities the traffic of certain spots must be taken into consideration.The first spot is the constant, regular place of the product. The second sales spot is the surrounding of the cashiers, entrance, exit and the displays, baskets, pallets placed at the end of the stands. Generally, easy-to-sell products with eye-catching price labelling occupy these places. Also important to consider the frequency of purchasing and the weight of the product (products with more weight should be placed near to the exit). More surveys confirmed that placing products in a symmetrical way or in different geometrical shapes restrain purchasing activity, because customers do not like to break down those for ms. Considering these, placing products in soldier-like order is not practical.Roles of temperature, colours and light. Temperature experienced in the store can also be decisive: nobody likes purchasing in a cold shop. The ideal temperature is about 20°C. According to some observations, fairs organized in wintertime can have a bigger number of visitors than those in august; probably temperature also played an important role in it. The colour of the store’s inside is not defined. By all means, it is a fact that products wrapped in white or in pastel colours are the most adequate. We must not forget that positive associations by the help of colours relate to the packaging mainly. The lighting of the inside isbasically made by accidental lighting. However it is important that these lights should be adequate to natural light, be pleasant, eye-friendly and not to be disturbing. The well-designed lighting highlights order,tidiness and also assist to shape a positive image of the store.Advertisement with sound Experiences obtained in the industry (surveys of Taylor) confirm that music can decrease the feeling of tiredness for a while and increase productivity. Applying it in commerce, not only the sales staff but customers can also enjoy the refreshing effect of music. The well-chosen music that fits into the place of sales creates a pleasant atmosphere. The read-out program placed in the musical environment gives information about discounts, services and products.The sales spot advertisement needs to put emphasis on the following factors in order to succeed:

o Proportion of text and music

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o Creativeness of the text

o Quality of technological equipment that transmit the program

o Safe operation of equipment.

i.e. Fairs, exhibitionsFair is a periodical event held from time to time at the same location, which objectives are to establish and to improve relations between producer, retailer and the costumer, to foster sales and the dissemination of information.

Exhibitions showcase the achievements of a particular field.

Types of Fairs:1. The range and types of displayable products at an ordinary fair do not fall under any restrictions.2. Professional fair – most commonly multi-profession-fairs. We can differentiate producing-goods and consumer goods fairs.3. Vertical professional fair only introduces one or two groups of products. Its visitors are professionals and concerned traders. Primarily serves marketing objectives, sales stay in the background.4. The characteristic of the horizontal or representational professional fair is the high-level specialization. Users and end-consumers can also visit, depending on their interests. It is suitable for executing professional objectives as well as satisfying the needs of consumers for information.

Event marketing, fairs

An event is an organized meeting for a community (sometimes has an entertaining function).The process of organizing events can be divided into 4 parts:- Planning- Preparing- Execution- Follow-ups, evaluationThe difference between fairs and event marketing is: while the primary objective of a fair is informing, the main aspect at event marketing is let the visitors enjoy themselves. The objective of event marketing is to give the brand/company 36 | P a g e


a pleasant, entertaining experience. In its centre, we can see the vivid transmission of the message and direct informing, exchange of information. Its aim is to create a positive image in the customer's mind; several times direct sale is not the primary aspect. There is a possibility for consumers as well as for partners at these events to see and try the products. It is a key element at event marketing that certain events give special and unique experience since catching the interest of the target group can only be made sure this way. The turnover increasing effect of event marketing The effect of outdoor programs cannot be measured accurately; only the number of visitors can be quoted. Besides this, the value of one or two events can be weighted through press releases. The importance of events is given by those people who take part in those and who are important from the companies' or from trade locations' point of view. So if we can achievesomething memorable during the event it can be a bigger success than trying to reach potential customers by the conventional media. Earlier brands or products were more in the centre of the popularity increasing programmes while nowadays banks, broadcasting and technical companies, so service providers are using event marketing as well.

Sponsoring

Sponsoring is a kind of contribution by money or by any form, by which the investor gains trade potential in connection with the activity.Characteristics of sponsoring:• It is a bilateral business, where both parties – from the beginning – has to be aware of what they expect from the co-operation, what compromises they are to make in order to mutually gain advantages.• Sponsors are classified by the degree of financial contribution.• Reaches customers in non-commercial surroundings.• Makes skirting of advert restriction possible.• Neither falls into the field of advertisement, nor into of Public Relation. It is a complex tool of marketing communication that highly beneficial on the long run.• Sponsoring is usually financial, and its effectiveness can be measured by the change in market share and in image judgement.• It is important when choosing sponsorship that the target market should be the same for the sponsor as well as for the sponsored person, that it shapes the company’s reputation and image and that the sponsor would have favourable communicational tools by the sponsored person.37 | P a g e


• The success and reputation of the sponsored person are to be adapted to the company’scommunication.

2.5. 7 – Personal sellingPersonal communication means substantially more than the sheer sale of the product. There isan opportunity for maintaining and improving customer relations and managing customercomplaints, which help keeping customers and also motivate them for further purchase.Personal selling is a kind of marketing tool where there is direct and interactivecommunication between the seller and the buyer. Its characteristic is direct connection, thepossibility of immediate response. At the same time, it is important to mention that the contactcost/customer is high and it is possible to reach only a narrow target group.

Fields of personal selling:• customer based• business based (business to business)In the market of consumers, personal selling comes in existence when the buyer needs to make a difficult decision, purchasing is of high-value, if the object of the purchase is an exclusive product and if the product is of service-nature.The presence of trade representatives is crucial in the relationship of retailer and wholesaler and of producer and commerce. The advantage of keeping good relationship with the representative is that the inf ormation does not get distorted and is personalized. Since the volume of purchasing is quite big on the market of producing/investing assets and generally the decision-making process is quite difficult, it is important for the representative to have enough information about both the market and the customer.

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Below the line (BTL) / Above the line(ATL) / Through the line (TTL) Advertising

In organisational business and marketing communications, Below the line (BTL) is an advertising technique. It uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the line (ATL) strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front.

Above the line(ATL) is a type of advertising through media such as TV,

cinema,radio, print, banners and search engines. Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates.

In addition, Above the line is much more effective, when the target group is very large and difficult to define. But, if the target group is limited and specific, it is always advisable to use Below the line promotions for efficiency and cost-effectiveness.

Say, for example, if a manufacturer of pen is going to promote its product, it may take the ATL route, but if a company manufactures computer UPS, it will certainly take the BTL route, as the target group is very limited and specific.

More recently, agencies and clients have switched to an 'Integrated Communication Approach.' BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.

Through the line (TTL) refers to an advertising strategy involving both above

and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the 'line'. An example would be a TV commercial that says 'come into the store to sample XYZ product'. In this example, the TV commercial is a form of 'above the line' advertising and once in 39 | P a g e


the store, the target customer is presented with 'below the line' promotional material such as store banners, competition entry forms etc.Promotion can be loosely classified as "above the line" and "below the line" promotion. The promotional activities carried out through mass media like television, radio, newspaper etc. is above the line promotion.

The terms 'below-the-line' promotion or communications, refers to forms of non-media communication, even non-media advertising. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.

Some of the ways by which companies do BTL (below the line) promotions are by exhibitions, sponsorship activities, public relations and sales promotions like giving freebies with goods, trade discounts given to dealers and customers, reduced price offers on products, giving coupons which can be redeemed later etc.Below the line sales promotionBelow the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising.A definition of below-the-line sales promotion given by Rohan Salvi:'An immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration'.

Methods of below the line sales promotion

1. Price promotionsPrice promotions are also commonly known as" price discounting". These can be done in two ways:

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A discount to the normal selling price of a product, orMore of the product at the normal price.Alt Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull when the discount would be called off.

2.Coupons

3.Gift with purchase

4.Competitions and prizes This is an important tool to increase brand awareness amongst the target

consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users.

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. Customers often view these schemes with some suspicion – particularly if the method of obtaining a refund looks unusual or onerous.

6. Frequent user/loyalty incentives

7. Point-of-sale displays

Shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets.

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Examples of BTL promotionMost of the big brands are following the suit of BTL promotion because of rising prices of media based promotion, advertising clutter and increased impulse purchasing.Some of the interesting examples are:

Most of the educational institutes like career launcher, Time and PT are holding informative workshops and free tests for students which give a direct interaction of these institutes with the target customer and hence a suitable platform to sell themselves.Ring tones and music videos on cell phones are helping the entertainment industry to promote for a music video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media companies like Hindustan Times are holding weekly events throughout the country in which companies can put up their stalls, display banners and posters and arrange for some fun activities. These events give the companies a platform at very low price to promote their brand and increase visibility among target consumer. These companies also give discount coupons to winners in the games, which in turn boost the sales of the products and ensure that first time users try these products as well.Pepsi organized an inter school cricket event for 425 schools across 14 cities which did wonders for the company by promoting the brand amongst the right target customer for almost no cost.

Most of the pharmacy companies do BTL promotion by getting shelf space through doctors to display their products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal advise from a doctor would hold more value as compared to a commercial advertisement.Another interesting BTL promotion was by NIKE. An athlete dressed up in Nike sportswear could be seen jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

Tata Shaktee is a strong rural brand from Tata Steel, for roofing products, has BTL activity in the form of Haat participation. By having a stall at Haat, Tata

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Shaktee engages potential consumers in interactive games around differentiating attributes of the product. Also, discount coupons are given for interested buyers, with details of nearby retailers.BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price, which is much lesser than the normal media promotions.

ATL - Above the line activities are those that the agency receive a income from

the ( i.e. Commission) media company . E.g. : Advertisements on Newspaper, magazines , TV & Radio BTL - Below the line activities are the other type of activities in the promotional mix Like : Sales promotions , Personal selling .Direct marketing & PR activities.

Sales promotionSales promotion is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales – it is not really designed to build long-term customer loyalty.

Some sales promotions are aimed at consumers. Others are targeted at intermediaries (such as agents and wholesalers) or at the firm’s sales force.

When undertaking a sales promotion, there are several factors that a business must take into account:

• What does the promotion cost?

Will the resulting sales boost justify the investment?

• Is the sales promotion consistent with the brand image?

A promotion that heavily discounts a product with a premium price might do some long-term damage to a brand43 | P a g e


• Will the sales promotion attract customers who will continue to buy the product?

once the promotion ends, or will it simply attract those customers who are always on the look-out for a bargain?

There are many methods of sales promotion, including:

• Money off coupons – customers receive coupons, or cut coupons out of

newspapers or a products packaging that enables them to buy the product next time at a reduced price

• Competitions – buying the product will allow the customer to take part in a

chance to win a prize

• Discount vouchers – a voucher (like a money off coupon)

• Free gifts – a free product when buy another product

•Point of sale materials – e.g. Posters, display stands – ways of presenting the

product in its best way or show the customer that the product is there.

• Loyalty cards – e.g. Nectar and Air Miles; where customers earn points for

buying certain goods or shopping at certain retailers – that can later be exchanged for money, goods or other offers

Loyalty cards have recently become an important form of sales promotion. They encourage the customer to return to the retailer by giving them discounts based on the spending from a previous visit. Loyalty cards can offset the discounts they offer by making more sales and persuading the customer to come back. They also provide information about the shopping habits of customers – where do they shop, when and what do they buy? This is very valuable marketing research and can be used in the planning process for new and existing products.

The main advantages and disadvantages of sales promotion are:

Advantages

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Effective at achieving a quick boost to sales Encourages customers to trial a product or switch brands

Disadvantages

Sales effect may only be short-term Customers may come to expect or anticipate further promotions May damage brand image

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Chapter 5 – Research Methodology

Research objective

To investigate the effectiveness of sales promotion technique on purchase decision.

The research exercise has been accomplished with the sample size of 100 respondents. The questionnaire method was applied for this exercise. The Research design was a blend of descriptive and exploratory research design. The research has investigated the effect of sales promotion. The study involved a field survey conducted across different malls, offices in the Noida region and in retail store also.

SOURCE OF DATA

There are two main source of data collection i.e. through primary data collection are secondary data collection method. I have adopted primary data collection method for the survey. Under this method the method of survey was best suited with my sample size and requirement of data.

The respondents from different malls and survey included :

Personal interviews: The investigator follows a rigid procedure and seeks answer to a set of pre-conceived questions through personal interview. This method of collecting data is usually carried out in structured ways were output depend upon the ability of interviewer to a large extent.

Mailing of questionnaires: The researcher and respondent do not come in contact with each other if this method of survey adopted. Questionnaires are mailed to the respondent with a request to return after completing the same.

Through these survey was done and the required data was collected from the respondents. Respondents were not easy to tackle as many of them sounded uninterested in even listening to me .I collected the required information from the respondents depending upon their reaction only.

As a type of survey, questionnaires also many of the same problems relating to question construction and wording that exist in other type of opinion polls:

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QUESTIONNAIRE

o What is your perception about promotional schemes of TFR?

o Are you interested in promotional schemes of TFR?

o Which is beneficial for you?

o Whether promotional schemes will be recommended by you?

o What is reason for not recommending?

o Will you go to other brand with promotional schemes or your regular

brand without scheme?

o Do you wait for promotional schemes for purchasing products and services

for your household?

o Do you wait for promotional schemes for purchasing luxury and non-

necessity products and services?

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Genuine Not Genuine Doubtful

Yes No Depends on the scheme

cash discount Free gift Doubtful

yes No Doubtful

Product quality After sales service Genuineness Durability

Regular brand Depends on scheme Other brand




o Products offered in promotional schemes often have low quality?

Strongly Disagree

Disagree May be Agree Strongly Agree

o Sales promotion increase your volume of product and services purchased?

Strongly Disagree

Disagree May be Agree Strongly Agree

o Reasons for purchasing the products?

Promotions

Product Satisfaction

Good Packaging

Non availability of other brands

Recommendation to purchase

No particular reason

Just picked it off the shelf

Liked what I read about the product on the packaging

Liked the advertisement of the product

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o Considering your consumption of the product and the purchase of the

product due to promotional scheme, which sentence best describes your purchase decision?

I have purchased much more than what I needI have purchased somewhat more than what I needI have purchased some quantity of what I needI have purchased somewhat less than what I needI have purchased much less than what I need

o Given below is some common types of promotions that are used by

marketers to sell their products. Considering everything, can you please rank these in the order of your preference? Give a rank of 1 to the most preferred, 2 to next most preferred and so on?

Different Promotional Schemes RankDirect Price discountBuy 1 get 1 freeBuy 1 get discount on anotherRedeemable discount couponsContests and sweepstakesExchange offersProduct warrantiesBonus packsamples

o Considering the product that you have purchased, can you tell how do you

come to know about the promotional scheme?

From newspaper adFrom television adFrom radio/FM channelsCame to know when visited the storeFrom friends/neighborsFrom the displaysOthers (please specify)

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o Can you tell the reasons for purchasing the same brand again?

Promotions

Product Satisfaction

Good Packaging

Non availability of other brands

Recommendation to purchase

No particular reason

Just picked it off the shelf

Liked what I read about the product on the packaging

Liked the advertisement of the product

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DATA ANALYSIS

o What is your perception about promotional schemes of TFR?

53%

32%

15%

perception

genuinenot genuinedoubtful

Interpretation: - The sample size is 100. Data collected by these people indicate the perception about sales promotion in the real consumer mind and finally it’s reflecting in its purchasing behavior. According to data, 53% confirm the geniuses of sales promotion scheme. 32% goes other way and rest 15% are not sure about sales promotion scheme. The total percentage which is around 47% of consumer are either not confirm or sure that this sales promotion scheme actually fooling and misleading the consumer.

o Are you interested in promotional schemes of TFR?

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49

11

40

Interest

yesnodepend on scheme

Interpretation: - Promotional scheme are made for creating interest in consumer mind to attract attention of consumer and generate new consumer. This data show that 49% are attracted and 40% are dependent on the nature of scheme. This indicates that if you give fair deal to consumer they are ready to increase their purchase. Only 11% are against to the scheme, which is very less in number and does not effect to analysis.

o Which is beneficial for you?

63

37

beneficial

cash discountfree gift

Interpretation: - According to most of the consumer cash discount is more beneficial than free gift. 63% goes with cash discount and rest with gift. Cash discount gives direct saving option to consumer, but whether gift is useful to particular consumer or not it’s a big question?

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o Whether promotional schemes will be recommended?

76

24

recommendation

yesno

Interpretation: - The main purpose of promotional scheme is to generate awareness and interest in consumer. And recommendation is the best tool for this, and this is proved by this survey in which 76% are agree to recommend the promotional scheme.

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o What is reason for not recommending TFR?

34

17

36

13

reasons for not recommending

product qualitysfter sales servicegenuinenessdurability

Interpretation: - Promotional scheme can go either way. So better, we find main reason for not getting that amount of recommendation. According to data, credibility of scheme and product quality is the highest factor which force for recommendation. After sale service and durability of product are one of the factors which force the recommendation.

o Will you go to other brand with promotional schemes or your regular

brand without scheme?

36

43

21

switching

regular branddepend on schemeother brand

Interpretation: - This data indicate that switching to other brand is highly depending on the nature of scheme. 43% and 21% are ready to change their brand preference. Only 36% are brand loyal.

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o Do you wait for promotional schemes for purchasing products and services

for your household?

18

48

34

wait for promotional scheme


Interpretation: - For households items as expected, almost half of population i.e. 48% is not wait for promotional scheme. 34% decision is depend on the scheme and only 18% can wait.

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o Do you wait for promotional schemes for purchasing luxury and non-

necessity products and services?

659

26

wait for promotional schemes for luxury iten


Interpretation: - Some data show exact opposite result, 65% are going to wait for purchasing luxury item. Only 9% can’t wait rest 26% will depend on scheme.

o Reasons for purchasing the products-

Interpretation: - the data show the actual reason for buying the products. Promotion and product satisfaction are the main reasons for buying behavior. Advertisement also plays a part in deciding consumer buying behavior.

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010203040

39 34

5 0

13 110 0

29

reason for purchasing

reason for purchasing


o Considering your consumption of the product and the purchase of the

product due to promotional scheme, which sentence best describes your purchase decision-

3

5327

17

purchase decision

more than neededsomewhat more than needaesame smountless than neededmuch less than needed

Interpretation: - according to this data, more than half agree with increase in the consumption. 27% say that their consumption is as same as before scheme. 17% their demand decreases with promotional schemes.

o Given below are some common types of promotions that are used by

marketers to sell their products. Considering everything, can you please rank these in the order of your preference? Give a rank of 1 to the most preferred, 2 to next most preferred and so on.

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Direct

Price d

iscount

Buy 1 ge

t 1 fr

ee

Buy 1 ge

t disc

ount on an

other

Redee

mable

discount c

oupons

Contests

and sw

eepsta

kes

Exch

ange

offers

Product

warran

ties

Bonus pack

samples

0

5

10

15

20

2525

20

15

0 0

10

18

75

rank

rank

Interpretation: - according to the data, consumer prefer direct price discount then getting two product for the price of one and warrantee is third largest acc. to the sample.

o Considering the product that you have purchased, can you tell how do you

come to know about the promotional scheme?

0102030 13

34

16 13 178

0

promotional medium

promotional medium

Interpretation: - a television ad is the most effective medium for sales promotion. Other mediums accepted by consumer are newspaper, radio advertisement.

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o Can you tell the reasons for purchasing the same brand again?

020406080

17

72

0 7 0 0 0 0 4

reasons for repurchasing

reasons for repurchasing

Interpretation: - according to the data for repurchasing of any brand product is the most demanding aspect in any purchasing decision by consumers. Other aspects are promotion and advertisement.

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Chapter 5: FINDINGS AND CONCLUSIONS

5.1 FINDINGS AND CONCLUSIONS

o Most of the consumers give green signal to the sales promotional activities.

Majority of consumer believe the genuineness of sales promotional scheme.

o Consumer is interested in promotional scheme and if companies provide quality

scheme which is suited for consumer, they will go for their product. Means type

of promotional scheme is important for generating interest.

o Consumer prefers cash discount more rather than gift.

o Most of the consumers are ready for recommending the scheme. Product quality

and genuineness of scheme is the main reason for recommending any

promotional scheme.

o Promotional scheme if presented in beneficial form can change the brand

preference of the consumer

o For household items, consumers are not going to wait for promotional scheme

but for luxury item they are ready to wait. Therefore companies have to focus

more on luxury item promotional scheme

o Promotional schemes are given on the cost of quality. Quality of the product

must be maintained for gaining more customer confidence. And if it is

maintained then the volume of the purchase will increase at very fast rate.

o Consumer purchasing decision is most influenced by promotional activities,

product quality and advertisement for first time purchasing. For repurchasing of

products, promotional activities go to the back seat. Only product quality and

genuineness can result in repurchasing. So companies have to focus in the

quality as well as genuineness

o promotional schemes increase the volume of purchase

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o Direct price discount, warranty and buy 1 get 1 offers are the most accepted

sales promotion by consumers. In addition, contest and discount coupons are

the least trusted sales promotion scheme

o Television advertisement is the most effective medium of sales promotion along

with radio and newspaper advertisement. Advertisement material displayed

outside store is the last influential medium of sales promotion

Chapter 6: Limitations

Limitations In every project work there is some kind of limitations which affect the accuracy of work. Same in this project work has been carried out under the following limitations:

TIME CONSTARINTS: time has been a major limitation while undergoing the study.

AREA BOUND: since the study was conducted only in NCR so accurate result was not obtained.

COST CONSTRAINTS: costs involved for the study was also a major limitation for the project.

BIASED APPROACH: the result obtained might be based on the biased approach of the respondents.

UNAWARENESS AMONG THE INVESTORS: unawareness among the respondents about the contemporary investment options and their relative benefits of different brands acted as a major limitation for the project.

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BiblographyKotler Philip, Marketing Management, 11th edition. Pearson Education

Marketing Research Dilip Sarvate

ICMR Publications

Kothari C.R. Research Methodology, Edition 2005 New Age International (p) ltd. New Delhi.

www.google.com

www.marketresearce.com

http://www.economywatch.com/business-and-economy/furniture-industry.html

http://www.furniture-republic.com

http://www.ihdp-india.com

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http://www.ihdp-india.com/

http://www.furniture-republic.com/

http://www.economywatch.com/business-and-economy/furniture-industry.html

http://www.marketresearce.com/

http://www.google.com/

summer internship in the furniture republic

Business

sales of tfr productswritten

impact ofpromotional

sales of tfrproducts

sales promotion

studythe promotional

summer project report

niilmcms greater noida

awonderful company