a study on impact of promotion on customers

8/8/2019 A Study on Impact of Promotion on Customers

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A STUDYON IMPACT OF

PROMOTION ON CUSTOMERSBy

S.Naveen

IPE


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Contents

A Study on Impact of Promotions onCustomers

Stock Take

Future Logistics


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Introduction

Future group one of the leading

companies in India

Led by its founder and group CEOMr. Kishore Biyani.

Diversified in various sector Future Group

is consumer finance, capital, Insurance,

brand development etc.

Retail forms are the core business activity

of future group India.


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Contd..

Pantaloon retail is one of the major

segment in Future group

Pantaloon is changed to Future ValueRetail Ltd

Pantaloon heads the list of Top ten

retailers in India

Future Value Retail Ltd contributes

maximum of all other in Indian retail sector


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About Big Bazaar

About big bazaar Hypermarket chain of

Departmental Stores

Outlet 100 outlets in India Located in 70

cities

Parent group Pantaloon Retail Group Subsidary

of Future Group

Owner Mr kishore Biyani

Founded 2001

Headquaters Jogeshwari,Mumbai

Industry Retail

Website www.bigbazaar.com

Tag Line Is se sasta aur acha kahin nahi


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Main Features

Understanding the needs of Indian customers

Traditional Bazaar ambience

Create a shopping experience

Low pricing products

Value for your money

Cater to ever possible retail need of a consumer

Economies of scale


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SWOT analysis of Big Bazaar

StrengthHigh Brand equity in retail markets

State-of-art infrastructure of Big

Bazaar outlets

One stop shop for variety of products,

increasing customer and available

choices

WeaknessUnable to meet store opening targets

so fast

Failing revenue per square feet

OpportunityOrganized retail is just 4.15% of total

pie of Indian Retail market

Evolving Customer Preferences in

recent years

ThreatsCompetitors, global big players

planning to foray in to market

Unorganized retail market of India

Government policies


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Promotions in Big bazaar

New innovative cross-sell and up-sell

strategies

Future Card (the card offers 3% Discount)

Endorsement by M.S. Dhoni and Asin

Point of-purchase promotions

Advertising in print media, TV, FM andthrough Hoardings


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Contd

Tag lines of promotions

Is se sasta aur accha kahin nahi

Umeed se DugunaPhela sata, doosara usse bhi sastaa

Joona do naya lo

Yeh keemat nahi chunauti haisaal ka sabse sasta 3 din-Republic Day

Promotion


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New promotions


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Contd

The Great Indian Shopping festival

Shop and win thak dina din is tag line

Three incentives to customersLucky Draw

Discount vouchers

Sone ki chidiya gives assured gifts ontoken amount.


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Literature review on promotions


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Contd

Sales promotion comes under paidimpersonal communication to customers

It offers extra value and incentives tocustomers to visit a store during specificperiod of time like The great IndianShopping Festival from Apirl 17th to May

16th There are two types of sales promotions

they are B2B and B2C

Sales promotion comes under paidimpersonal communication to customers

It offers extra value and incentives tocustomers to visit a store during specificperiod of time like The great IndianShopping Festival from Apirl 17th to May

16th


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Sales promotion-short-term stimulus

B2B Product launch events

Trade Shows

Conventions Catalogs

B2C Coupons

Sampling

Premiums Contests

Sweepstakes

Catalogs

Demonstrations In-store Displays

Trade Shows


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Push vs pull promotions

Heavy advertisement andsales promotion effortsdirected at consumers sothat they will requests theproducts from retailers

Products are pulledthrough the distribution

system

Convince wholesalersand retailers to stock andsell

Producer usesadvertising, personalselling, sales promotionto convince theintermediaries

Idea is to push theproduct through thedistribution system to thestores


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Methodology

Collected 100 samples

Samples are collected by using random

sampling techniqueAnalysis is done by using SPSS software


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Analysis of questionnaire

Inference: In this analysis 39% which is in maximumnumber i.e middle aged Customers visiting the store

frequently.

Age

4

24

39

24

9

below 20

20 to 30

30 to 40

40 to 50

above 50


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Contd..

Inference: This shows that store is mostlyconcentrating more on middle income group rather

than upper income group.

Annual income

21

24

25

14

16


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Contd..

Inference: In this analysis Considered all customersequally who are visiting the store i.e once, twice and

so on.

monthly visits

0

5

10

15

20

25

30

1

percentages

once

twice

thrice

four times

more than f our times


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Inference: 95% customer are aware of The GreatIndian Shopping Festival in Big Bazaar and the restof them also come to know about tha after entering instore.

Awareness of the offer

ye

no


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Inference: Mostly, Through News Papers and

Pamphlets customers come to know about this offerthis means of media reduces the operating cost of

store.

r

pons

in %

1

typ

of

di

M di

N

s papers

H

ardings

Pamphlets

Thr

ugh friends and Neighb

urs

After entering in t

st

re


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Inference: More than 55% of customers showinginterest on assured gifts as promotional incentives.

Pro otion l in ntiv s

0 10 20 30 40 50 60

Lucky draw c up ns

Disc unt v uchers

Assured Gifts

R

spons

s in %

Series1


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Inference: 67% of customers are satisfied by choice

of gifts displayed but 37% are not satisfied soconcentrate on innovative gifts which are give to the

customers.

Satisfaction on choice of gifts

63

37

Yes

N


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Inference: 66% of customer are not interested to pay

extra token amount on assured gifts only 34% areinterested so customers are not preferring token

amount.

Token amount

Yes

34%

N

66%

Yes

N


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Inference: 48% of customer agreed that their numberof visits increased due promotions so storeconcentrate innovative promotions through which

both customers and retailers are benefited.

Impact on number of visits

59

14

48

24

0

10

20

30

40

50

60

Strongly Disagree Disagree Neither agree nor

disagree

Agree Strongly agree

Responsesin%


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Inference: 74% customers are asking the store toextend the Gifts redemption period and dates of offer

and rest of them not interested to continue this offer.

Extend t e duration ofoffer

74%

26%

Y

s

No


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Inference: The offer Wednesday bazaar is able to

reach to 90% of the customers in creating awarenessand the remaining are left unaware , so the outlet

should take care that the all the targeted customers

should aware of this.

Awareness on wednesday bazaar

90%

10%

Yes

No


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Inference: Most of the customers participating inWednesday Bazaar feel like, they get maximum

savings on that day.

Savi s t f Wednesday Bazzar

05

10

152025

303540

4550

Str nglyDisagree Disagree NeitherAgree N r

Disagree

Agree Str nglyAgree

R

esp

nsesin%


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Inference: 79% of customer accepting that their

quantity of shopping is increased on offer days in BigBazaar and rest of them are not accepting this.

Increase in quntity of shopping

79%

21%

Yes

No


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Inference: 74% of customers responded that the staffin Big Bazaar is patient enough to explain all offers in

the store and rest of them are not accepted this. Sokeep a eye on staff at the time of dealing withcustomers.

Staff patiency

76%

24%

Yes

No


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Inference: 52% are disagreeing on the query that staff

explanation will show impact on customer buyingbehavior and 32% are Neither agreed Nor disagreed

to this query.

22

3032

14

2

0

5

1015

20

25

30

35

1

Staffexplanati n imapact n b ying be avi r

Str nglyDisagree

Disagree

Neither agree n r disagree

Agree

Str ngly agree


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Inference: Through this we can infer that overall satisfaction

of customer will not achieve only by sales promotions someother parameters like ambiance, location, shopping

experinence etc., all together gives satisfaction to customers.

Overall satisfaction on offers

11

18

41

21

9

0

5

10

15

20

25

30

35

40

45

Str nglyDisagree Disagree NeitherAgree N r

Disagree

Agree Str nglyAgree

esponses


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Conclusion: We can conclude by this analysis thatpromotions shows impact on numbers of visits and

quantity in shopping of the customers but overall

satisfaction of customer are not achieved onlythrough sales promotions.


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Suggestions from customers

Choice of assured gifts are rechecked.

Token amount should be removed or

decreased.Gifts redemption time should be increased

to 2 to 4 days.

Stock of gift Merchandise should beproperly maintained till the last date of

offer.


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Stock Take in

Purpose

To find out shrinkages

To find damagesTo differentiate INF from other

merchandise

To separate WBC s

To prepare stock budget


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About FKS Team

Stock take held in the store once in a 3 months

under the inspection of FKS Zonal wise FKS team will divide like south zone

FKS team, North zone FKS team etc.,

This team provide all equipments and give

guidance to all departments in store for stocktake

They assign a location no for scanning and giveHST for scanning each and every piece in thatlocation and the same continues to all

departments They stay 5 to 6 day in each store for stock take

they separately appointed by HO


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Stock Take procedure

Done separately for different departments Before the beginning of this procedure each and every

dept check for the bar codes on every merchandise

When FKS team arrive to store they start with any

department and assign location numbers in thatdepartment

HST (Hand Set Terminal) is given to department forscanning every piece

Location has certain code that is first scanned and global

count noted in HST Global count and scanning count should match in this

procedure


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Contd..

FKS team issues 3 types stickers at thetime of stock take they are

This is stick to Item Not found (INF)

merchandise at the time of scanning

This is stick to the merchandise not having bar

code (WBC)

After completion of scanning in that particularlocation this is stick to location code


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Contd..

Stock take of back end will be done in themorning and at night displayed merchandise is

done

After completion of stock take in one department

FKS team shift to other department proceduregoes on all the store

Stock take report is prepared by FKS team and

verify all the items

This help to prepare stock budget


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Future Logistics

Logistics: It is an aspect of supply chainthat refers to planning, implementation and

control of efficient flow and storage of

goods, services from point of origin to

consumption.

Future logistics is total back end of store

This operates In procurement and reverse

of goods and services


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Contd

The main functions of future logistics are

Functions of

future logistics

Stock Inward Stock outward Barcode control


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Stock inward Stock inward can be in two ways from ware

house and from vendors

Food bazaar stock inward and Big Bazaar stockinward records are maintained differently foreasy access

Food Bazaar stock received from kandla koyya ,Big bazaar stock is received from malkapur warehouses respectively and also through somevendors goods are received to store

No stock is inward on stock take days


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Stock inward procedure

Indent is given by DM regarding stocks they required orautomatic indent is passed through sales in store to warehouse

In response to indent Ware house sent the goods alongSTN (stock transfer note number)

Stock received by logistics department and check forpick list which contains all details of stock delivered byware house, in case of vendors bill itself act as pick list

Through pick list each and every department check theirreceived goods and in the case of food bazaar goods are

checked by logistics dept only


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Contd.. After checking incase any damaged, expired goods are

outward Incase any discrepancies those are entered into

respective DIS record and send a mail regarding thesame to ware house

After all clearances in STN , GRN (goods received notenumber) recorded in inward record

GRN is prepared by the logistics dept after scanningeach piece for a model and separate INF from them

The items which come under INF (item not found) andMRP mismatches are mailed to distribution channel forsolving the problem those goods are not placed on floor

Having signed in GRN by dm of particular dept andrecorded in hand over register and goods are hand overto respective departments


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Stock outward

Damaged, Interchanged stock, Expired stock

and Discrepancies are outwarded by logisticsdepartment

RSTO mail is send by concern department tologistics and the same acknowledged to DCbased on respective problem in reception ofmerchandise

In response to RSTO by logistics, DC sent anoutward STN for counting the merchandise

Gate pass and delivery no made by logistics and

attached to concern cottons and outwarded Vendor merchandise also outwarded in the

same procedure


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Bar code control

Other important operation in logistics in issuingbar codes for WBC merchandise

The process is as follows concern department

ask for particular bar code

Logistics issues one sheet contain details likebar code, item description, reason of bar code

The sheet is dully filled by departments and

signed by DM hand over to logistics

Then they issues bar code after entering the

details in Bar code control register


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Other functions of Logistics

Vendor management, vendor schedule preparation Checking of stock balance in each department help to

give quick indent

Maintenance records which are audited by both internaland external audit

Vegetable Dump and bakery Dad maintained which arenot able to outward

Frees inward and hand over to customer service desk

Maintenance of NSM (non sale merchandise) liketrolleys, bags, baskets etc., and recording the same inNSM register

Report preparation etc..,


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Suggestions Back end in store ware house space is

increased because huge stock is not fit in thatspace and problems faced in simultaneouscounting by different departments

Updated IT technologies are used for speed upall process in logistics

Increase the space of in store logistics room forclear record maintenance in racks

Innovative ideas are implemented to decreasedump and dad in store shows perfect supplychain


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a study on impact of promotion on customers

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