final year bba (h) study paper on · was launched by spencer’s in hyderabad in 2000. today,...
TRANSCRIPT
FINAL YEAR BBA (H) STUDY
PAPER ON
“Impact of sales promotion on FMGC products in
Organized Retail”
NAME:- SUBHO JANA(15405015054)
RONI BHATTACHARYA(15405015035)
SAGAR NAYAK(15405015037)
SILADITYA ROY(15405015045)
BISHAL DAS(15405015006)
STREAM:- BBA(H) SEMESTER:-6TH
SESSION:- 2015-2018
COLLEGE:- DINABANDHU ANDREWS INSTITUTE OF TECHNOLOGY AND
MANAGEMENT
UNIVERSITY-MAULANA ABUL KALAM AZAD UNIVERSITY OF
TECHONOLOGY ,WEST BENG
SUBMITTED
BY:-
CONTENT
1.ACKNOWLEDGEMENT
2.INTRODUCTION
3.OBJECTIVE
4.COMPANY PROFILE
5.ANALYSIS AND
INTERPRETATION
6. CONCLUSION
7. BIBIOGRAPHY
ACKNOWLEDGEMENT
I take this opportunity in expressing the fact that
this project report is the result of incredible
amount of encouragement, co-operation and
moral support that I have received from others .
Words alone cannot express my deep sense of
gratitude to Sohini Majumdar who provided me
an opportunity to do a project on” Impact of
sales promotion on FMGC products
in Organized Retail” ”.Her valuable
guidance and support made this project work an
enlightening educational experience. Her
consistent support and co-operation showed the
way towards the successful completion of project.
I would like to express my deep sense of
gratitude to all the members ,who directly or
indirectly helped me during my project work
Introduction
Definition of 4P- The marketing mix refers to the set of actions, or
tactics, that a company uses to promote its brand or product in the
market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix
increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.
Definition of Sales promotion:
It increases sales in the immediate time frame .It
also helps in introducing new product to the market.
It motivates the salesmen to sell more and sell the
full line out products. It adds excitements to the
company’s merchandise within the store. With the
help of sales promotion one can easily launch new
products to the trade as well as the customers.
As already explained in the earlier slide there are
2 types of sales promotion used by the firms,
1)Trade promotion
2) Consumer promotion
Trade Promotion - A few trade promotion objectives and vehicles
are as follows-
Objectives –
1.Pushing the products through the intermediaries
2. Persuading them to carry more units than the normal level 3. Enthusing them to participate in company-sponsored
promotion actives
Vehicles –
1.Trade allowances, these are of various kinds : Merchandise allowances/incentive for shelf space (Extra
allowances for additional shelf space and
merchandising), display allowances. 2.Display contests/prizes. 3.Sales contests/prizes.
Consumer Promotion – Some of the very common
objectives and vehicles for the consumer promotion are as
follows –
Objectives –
1.To engage and induce trail and purchase of a product 2.Increase rate of the purchase
3.Generate consumer interest, which should lead to trail
Vehicles –
1.Coupons
2.Gifs
3.Free samples
4.Exchange offers
5.Demonstratons
Objectives for sales promotion
Building Product Awareness – Several sales promotion techniques are
highly effective in exposing customers to products for the first time and
can series as key promotional components in the early stages of new
product introduction Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added
advantage of capturing customer information at the time of exposure to
the promotion In this way sales promotion can act as an effective
customer information gathering tool (i.e., sales lead generation), which
can then be used as part of follow-up marketing efforts
Creating Interest – Marketers find that sales promotions are very effective
in creating interest in a product In fact, creating interest is often
considered the most important use of sales promotion In the retail industry an appealing sales promotions can significantly increase
customer traffic to retail outlets Internet marketers can use similar approaches to bolster the number of website inexperience Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers
to try products for free or at low cost
Providing Information – Generally sales promotion techniques are
designed to move customers to some action and are rarely simply
informational in nature However, some sales promotions do offer customers access to product information For instance, a promotion may
allow customers to try a fee-based online service for free for several days
This free access may include receiving product information via email Reinforcing the Brand – Once customers has made a purchase sales
promotion can be used to both encourage additional purchasing and also
as a reward for purchase loyalty (see loyalty programs below)n Many
companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register
Company Profile
• About Spencer - Spencer’s Retail Limited, part of RP
Sanjiv Goenka Group, is a multi-format retailer providing a wide
range of quality products across categories such as food, personal care, fashion, home essentials, electrical and electronics
to its key consumers. Specialty sections such as Spencer’s
Gourmet, Patisserie, Wine and Liquor, and the recently launched
Epicuisine section are some of the key differentiators in our
hypermarket stores
Spencer’s, being one of the earliest entrants into
the retail space in India, introduced the Indian consumer to the
concept of organized retailing. The first ever hypermarket in India
was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs 120 stores, including 37 Hyper stores in over 35
cites in India.
Spencer’s brand positioning – Makes
Fine Living Affordable – embodies its philosophy of delighting
shoppers with the best products and services that enable a fine
living at reasonable prices, while providing them with a warm, friendly and educational retail environment.
Heritage
Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time, the Spencer’s Empire stretched from
Peshawar to Cochin, from Karachi to Chittagong, spanning the
length and width of undivided India. Originally owned by a British
gentleman – yes, there was a Mr. Spencer (John William Spencer, to be precise) – it acquired Indian ownership in the 1960s, and
became part of the RPG Group in 1989. In 1995, RPG Enterprises, the flagship company of the RPG Group, launched 'Food world' as a joint venture with Hong-Kong based
Dairy Farm International. The joint venture, which operated
supermarkets under the name 'Food world' and hypermarkets
under the name 'Giant', was terminated in 2006. RPG retained 48
of the 93 stores it owned. These were re-furbished and their
launch under the brand name, Spencer’s, kicked of a new phase in
both the history of the Spencer’s brand, and retail in India. Since inception Spencer’s has been a consumer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping consumer needs and satisfaction center-stage. Back in 1920, we were the first grocery chain in India. In 1980, we
became the first supermarket chain, and in 2001, we introduced
India to the joys of hypermarket shopping. What has remained unchanged for 150 years is the trust that the
Spencer’s brand evokes. To the consumer, it carries the promise of
innovation, quality, and service; the confidence that they will always be able to find a Spencer’s store at a convenient location; that it will have a pleasant ambience; and that it will offer a wide
range of products at affordable prices.
Innovations
Spencer’s has constantly helped reshape the retail landscape in India, introducing a host of innovations to make shopping even more
convenient and enjoyable for the consumer. It’s a common perception
that all supermarkets and hypermarkets sell the same things. However, Spencer’s proves that wrong. While it does stock a lot of what others
stock, it puts in a great deal of effort to stock a unique range of products as well. Spencer’s Gourmet Centre: Run by a food scientist Cordon Bleu
Chef, the food innovation wing researches world cuisines and develops
recipes for a wide range of popular and trendsetting dishes. These form
the basis for developing its own range of products, which includes
delicious cookies, sauces, pickles, juices and jams. Spencer's Patisserie: The goodies from the patisserie are freshly baked
daily in the live bakeries situated within the hypermarkets. The
offerings include specialty breads, bakery and confectionary items, crafted from Indian and International recipes. The selection includes
specialty breads such as the Italian Focaccia, the French Baguette, the
Mexican Spicy Salsa Picante Bread, the Indian Masala Bread, and the
regular white, multigrain, whole wheat and masala breads. The bakery
also churns out hot puffs, dry fruit cakes, assorted cookies , cakes and
pastries. Spencer’s Gourmet: A special section in it’s hypermarkets that retails
over 4000 products from the finest locales around the world, the
Spencer’s Gourmet section is the perfect spot for the well-travelled
food connoisseur. It’s the best place to buy international ingredients, be
it for Thai, Chinese, Indonesian, American, Chilean, Argentinean, Italian, French, Spanish, Sri Lankan, British or Japanese dishes.
Fish & Meat: Spencer’s has a dedicated space to sell fresh non- vegetarian items, be it the finest pre-packaged cold cuts or fresh
seafood – right from live tanks in-store. Epicuisine: Spencer’s recently launched a new section called
Epicuisine, which serves ready to eat dishes and ready to drink juices, some from its very own live in-store kitchen, and some packaged from
popular restaurants and caterers in the geography. Edutainment Booklets: Want to serve wine but not sure how? Want a
recipe for preparing cheese fondue? Curious to know why organic food
is supposed to be better for you? Pick up a booklet and find out. From
the story of olive oil to the origins of cocktails, the Spencer’s
edutainment booklets tell you about the products on offer and how to
use them. Live Kitchens: Live Counters with Master Chefs preparing gourmet delights are always popular at buffets. Spencer’s brought the concept to its stores in the form of the Spencer’s Chef Corner, a first-of-its-kind
in-store experience that involved customers. From Salads to Sushi, Pastas to Satays to Cheese, the Spencer’s Chef Corner gives customers
an opportunity to learn more about their favorite world cuisines. Wine & Spirits: Wine ignoramuses or aficionados, this section caters to
both, with a wide range of wines expertly selected from as many as
181 countries. Spencer’s was, in fact, the first Indian retailer to offer a
selection of Wine & Spirits in its stores, and the first to present an in- store wine and cheese tasting experience to shoppers.
Differentiators
Spencer’s has chosen to differentiate by establishing itself as the
preferred shopping destination for young customers looking for a range
of quality products that allows them to indulge in a global lifestyle, yet at affordable prices. It’s brand image of - Makes Fine Living Affordable
stands - testimony to this philosophy. From daily to weekly to specialty
shopping, Spencer’s strives to fulfill every need and provide maximum
convenience. Specifically, the following distinguish the Spencer’s brand
and create a memorable all-encompassing shopping experience for its
shoppers: Products – Spencer’s offers the widest assortment of food and lifestyle
(fashion, home, entertainment), dealing both, with brands and private
labels. It has different special sections within its hypermarkets to
delight the customer
Quality – Quality is a major reason why Spencer’s is well-regard by it’s
shoppers. Spencer’s lays a huge emphasis on all-round quality in
products, stores, service standards, and customer engagement programs. It’s “Quality since 1863” tagline has stood the test of time. Heritage – Spencer’s is India’s oldest retailer tracing its roots back
to1863. The brand has many firsts to its credits. Innovations/Specialty – In Spencer’s hypermarkets, the shopper can
find specialty sections such as a live bakery, the patisserie, a nut’s
counter, a dedicated wine & liquor section, and Epicuisine. Promotions – Spencer’s seek to offer the right products at the right time at the right price, with promotions carefully designed to suit the
needs and wants of the consumers monthly, weekly and daily shopping
basket. Brand Imagery – Spencer’s stores have contemporary and international interiors, and it's extensively trained staff strive to make customers feel at home while they shop, with a welcoming and trusted aptitude.
Pictures of Spencer’s
Analysis and interpretation
We have found that these sales promotion techniques are being
used mostly in Spencer's –
A) Gift- Companies distribute gifs to gain direct as well as indirect sales promotion effect .When they distribute them to consumer and
dealers with a link to sell it is a case of direct sell promotion . B) Coupons- Coupons are certificates that offers price reductions to
consumer for specified item. Coupons are distributed through news
papers and magazine advertisement or through the package of the
goods . C) Free samples- Free sample means offering a small quantity of a
product free in order to persuade consumer to try that product .Free
samples are mainly distributed when a new product is released into
the market . D) Exchange offer- In consumer durable market exchange offer has
become the common sales promotion tool. Consumer surrender their
old product (TV, Mobile) for a certain price and take home a new
model of that product. E) Demonstrations- Usually companies resort to product demonstration (Demo) as a part of sales promotion . When they come
up with a product that is new to the market they send out few of those product as a sample (Demo)
F) Visual merchandising- Visual merchandising refers to anything that can be seen by the customer inside and outside a store, including
displays, decorations, signs and layout of space. The overall purpose
of visual merchandising is to get customers to come into the store and
spend money
G) Additional margin- Additional margin is a very efficient way of trade promotion . Usually a company offers Bulk purchasing i.e. purchase of much larger quantities than the usual, for a unit price that is lower than the usual.
But after conducting through analysis we have found these
following kinds of promotion influences the consumer of the
most-
TRADE PROMOTION-
VISUAL MERCHANDISING/DISPLAY-visual
merchandising has a big role in sales promotion . proper visual merchandising /display at store level/point of purchase promotes
sales by promoting the consumer to switch over to the display
brand ,ignoring existing brand loyalties .It also persuades
consumers to buy now rather than later . It also makes the
consumer to buy more then the original intendant quality n
CONSUMER PROMOTION-
Discount-Sale promotions often come in the form of discounts.
Discounts impact the way consumers think and behave when
shopping. The type of savings and its location can affect the way
consumers view a product and affect their purchase decision .The
two most common discounts are price discounts (“on sale items”)
and bonus packs (“bulk items”).Price discounts are the reduction
of an original sale by a certain percentage while bonus packs are
deals in which the consumer receives more for the original price.
DEMONSTRATION & SAMPLING-Demonstrations are
usually performed at large retail locations, such as supermarkets, department or discount stores, or in shopping malls. The products
that are promoted at in-store demonstrations may be food and
beverages, food preparation equipment, housekeeping products, personal care items, or occasionally other types of goods. The
samples that are distributed may either be in readymade packets
pre-assembled for the demonstration, or are prepared on site by
the demonstrator. Some demonstrations involve the distribution of prepared food, requiring the demonstrator to bring equipment such as a microwave oven or hot plate to the location.
Conclusion
As during the last few years Spencer's have evolved
as one of the recognized and respectable FMCG
retail organization, thus all the big brand players are
also running to take space in Spencer's to develop
not only current sales but also to target the right
customer for long run success. And this can be
achieved with appropriate kind of promotion mix in
Spencer's, which is done by Visual Merchandising Many of the FMCG products are being
purchased on impulse from any of the organized
retail, thus visual merchandising has become an
inevitable part of the retail sector. Especially usage
of Bay-breaker, FSU and Cash till POPE is very highly
influential. Any signage or shout-out explaining the offers
running on the product has also been very important to trade up the sales.
Demonstration & Sampling becomes useful only if
the kiosks are placed in right location, right time and
well versed promoter.
BAY-BREAKER FSU
CASH TILL POPE
Bibliography
I have taken reference from the
following-
Website-
En.Wikipedia.com
Books-
• Marketing Management- by
Ramaswamy & Namakumari
• Marketing Management – by
Phillip Kotler