report on vishal mega mart
TRANSCRIPT
RESEARCH PROJECT REPORT(MBA - 043)
ON
“A study of sales promotion and its effectiveness- a case study of Vishal megamart”
Submitted in Partial Fulfillment of Master of Business Administration (MBA)
Programme : 2009 -11of
GautamBudhha Technical University, Lucknow
Under the Supervision of SUBMITTED BY(Mr. Arbind Kumar Sinha) ANUP SINGHMBA Department ROLL NO:0901470008S.R.M.S.C.E.T., Bareilly
Faculty of Management ScienceShri Ram MurtiSmarak College of Engineering & Technology, Bareilly
(College Code – 014)
1
Shri Ram MurtiSmarak College of Engineering & Technology, Bareilly (U.P.)
Faculty of Management Science
Certificate
This is to certify that Mr.ANUP SINGH, a student of MBA IV Semester has completed his
Research Project Report titled “A study of sales promotion and its effectiveness- a case study
of Vishal Mega Mart” assigned by MBA Department and under my supervision.
It is further certified that He has personally prepared this report that is the result of his personal
survey/observation. It is of the standard expected to MBA student and hence recommended for
evaluation.
Supervisor
(A.K. Sinha)
Above statement is endorsed.(Anant Kumar Srivastava)
DECLARATION
2
I, Rakesh Kumar hereby declare that I have carried out project report on Topic “A study
of sales promotion & its effectiveness-a case study of Vishal Mega Mart”in Bareilly.
I further declare that project work is my original work and no part of this report has been
published or submitted to anybody or university for award of any other degree or
Diploma.
ANUP SINGH
MBA 4thsem.
3
TABLE OF CONTENT
PAGE NO.
CHAPTER-1 Introduction of the topic 1-14
1.1 Introduction 1
1.2 Company Profile: 2
1.2.1 Introduction 2
1.2.2: vision & mision 5
1 .2.3: Sales promotion technique adopted by Vishal Mega Mart 6
1.3: Details about the topic 9-12
1.3.1 Definition of Sales promotion 9
1.3.2 Sales promotion strategies 9
1.3.3 Types of sales promotion 10
1.3.4 Importance of sales promotion 11
1.3.5 Sales promotion techniques 11
1.4 Research Question 13
1.5 Objectives of research 14
CHAPTER-2 Literature Review 15-17
CHAPTER-3 Research Design 18-19
3.1 Research methodology 18
3.2 Research design 18
3.3 Method of data collection 18
4
CHAPTER-4 Data Analysis and Interpretation 20-33
CHAPTER-5 34-36
5.1 findings 34
5.2 Suggestions 35
5.3 Limitation 36
5.4 Conclusion 37
Bibliography 38
Annexture 39
5
LIST OF TABLE
PAGE NO.
Table No. 1: Data showing uses of promotional techniques by
vishal mega mart. 20
Table No 2: Data showing which type of sales promotional techniques
is used by vishal mega mart. 21
Table No 3: Data showing that which techniques is most attractive to
the customer. 22
Table No 4: Data showing that employee really rely on these techniques or not. 23
Table No 5: Data showing that for how long one techniques is used by
vishal mega mart. 24
Table No 6: Data showing that these techniques really increases sales of
vishal mega mart or not. 25
Table No 7: Data showing that sales promotional techniques really help in
introducing a new product or not. 26
Table No 8:Data showing that from how many days customer is visiting in
vishal mega mart. 27
Table No 9:Data showing the satisfaction level of customer for the product
and customer handling offered by vishal mega mart. 28
6
Table No 10: Data showing the satisfaction level of customer with the
discount provided by vishal mega mart. 29
Table No 11: Data showing the satisfaction level of customer with the
sales promotion activity by vishal mega mart. 30
Table No 12: Data showing the offer which are most preferred by the customer. 32
Table No 13: Data showing the customer loyalty that they will continue visiting to
vishal mega mart in future or not. 33
7
LIST OF FIGURE
Figure No.1:Data showing that from how many days customer is visiting in
vishal mega mart. 20
Figure No 2: Data showing which type of sales promotional techniques
is used by vishal mega mart. 21
Figure No. 3: Data showing that which techniques is most attractivee to the
customer. 22
Figure No. 4: Data showing that employee really rely on these techniques or not. 23
Figure No.5: Data showing that for how long one techniques is used by
vishal mega mart. 24
Figure No.6: Data showing that these techniques really increases sales of
vishal mega mart or not. 25
Figure No.7: Data showing that sales promotional techniques really help in
introducing a new product or not. 26
Figure No.8:Data showing that from how many days customer is
visiting in vishal mega mart 27
FigureNo.9:Data showing the satisfaction level of customer for the
product and customer handling offered by vishal mega mart. 28
Figure No. 10: Data showing the satisfaction level of customer with
the discount provided by vishal mega mart. 29
8
Figure No. 11: Data showing the satisfaction level of customer
with the sales promotion activity by vishal mega mart. 31
Figure No. 12: Data showing the offer which are most preferred by the customer. 32
Figure No.13: Data showing the customer loyalty that they will
continue visiting to vishal mega mart in future or not. 33
9
Chapter-1
Introduction of the topic
1.1 Introduction
This research project is related to the Retail Sector and is conducted to know the
promotional strategies of the companies for the Retail Sector products. Vishal Mega Mart
is one of the most prominent names of this industry. It is well known that this company
has largest shares in the market.
In this research report Section 1 is related to the Introduction of the topic in this
sections there are various subsection. These subsections also contain the more described
forms of the introduction. In other subsections as in 1.3, 1.4, 1.5, and further details of the
RETAIL SECTOR sectors and details of the VISHAL MEGAMART are given. In the
next section 2.1 Summary of the Literature review has been done after that in section 3.1
details of the research methodology has been given. In Section 4.1 Analysis of the survey
and its interpretation has been given. In the last section Findings Limitations and
Conclusion of the research has been given.
1
1.2: Profile of Vishal mega mart.
1.2.1 Introduction
About the Organization
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all
price ranges. The showrooms have over 7000 products range which fulfills most of the
household needs, and can be catered to under one roof. It is covering about 1282000 sq.
ft. in 18 states across India. Each store gives international quality goods and prices hard
to match. The cost benefits that derived from the large central purchase of goods and
services are passed on to the consumer
VISHAL HISTORY AND ACHIEVEMENTS
What started as a humble one store enterprise in 1986 in Kolkata(Erstwhile, Calcutta)
is today a conglomerate encompassing 51 showrooms in 39 cities. India’s first hyper-
market was also opened for the Indian consumer by Vishal. Situated in the national
capital Delhi this store boasts of the single largest collection of goods and commodities
sold less than one roof in India. The group had a turnover of Rs. 1463.12 million for
fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Agarwal . The
group had turnover of 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal
2007.
2
The group’s prime focus is on retailing. The Vishal stores offer affordable family
fashion at prices to suit every pocket. The group’s philosophy is integration and towards
this end has initiated backward integration in the field of high fashion by setting up a
state of the art manufacturing facility to support its retail endeavors.
CORPORATE PROFILE
Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700
imported machines that have a capacity to manufacturer 150000 pieces a month. The
factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives
employment to more than a 1000 people. These people work in
Ancillaries that supply finished goods to the company.
Vishal’s 10 ware houses cater to 51 showrooms in 39 cities. It is covering
about
1282000 sq. ft. in 18 states across India. Our loyalty programmes gives the Indian
consumer of being rewarded every time he/she makes a purchase at any of its
stores anywhere in the country. Consumers can make purchases at any store and
accumulate points at a central level. These points are redeemable at any of our stores.
One can accumulate points even when a purchase is made while traveling and can redeem
points at any store. So no matter where you are in India you can partake the our
loyalty programme.
Some of the key features of retailing include:
1. Selling directly to customers without having any intermediaries
3
2. Selling in smaller units / quantities, breaking the bulk
3. Present in neighborhood or in the location which is quite convenient to the customers.
4. Very high in numbers
5. Recognized by their service levels
6. Fitting any size and or location
It is assumed that due to the entry of a number of retail outlets in the urban and semi
urban areas, the mindset of the existing customers have undergone drastic changes.
Besides it is also reported that the traditional retailing such an age old Grocery shops face
direct competition with the organized retailing sector. In some parts of the country, it is
reported that the traditional retails are resisting the entry of organized shopping malls. For
instance the traditional retails of Bhubaneswar with the active support of the consumers
at large didn’t allow reliance Fresh to start outlet initially.
Recent Trends
1. Retailing in India is witnessing a huge revamping exercise as can be seen in the
graph
2. India is rated the fifth most attractive emerging retail market: a potential goldmine.
3. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
4. As per a report by KPMG the annual growth of department stores is estimated at 24%
4
5. Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.
1.2.2: MISSION STATEMENT
We shall deliver everything, everywhere, every time for every Indian Consumer in the most profitable manner.
VISION STATEMANT:
We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.
5
1.2.3: Sales promotion technique adopted by Vishal Mega Mart
1. Price-off offer:
Under this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a
new product in the market.
Example:
· Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/T shirt).
· Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/T-shirt).
· Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/T-shirt).
· Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP:
Rs. 299/T-shirt).
· Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/T-shirt).
· Buy 1 woman top and get Rs. 100/- off on the bottoms.
2. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on the
original price. This type of scheme is designed to boost up sales in off-season.
Example:
· 30% off on all the men formal shirts and trousers.
· 30 % off on all the women formals and casual outfits.
6
3. End of season sale:
End of Season sale or stock Clearance sale is been conducted at vishal mega mart Factory
Outlets. They are offering surprising discounts as if you buy 2 any items of garments and
you will get 3 more with your choice absolutely free. These offers are given as
celebration of New Year.
4. Seasonal offers:
Vishal mega mart provides the customers with various discounts and price-off offers at
the stores and factory outlets on the seasons like winter and monsoon. This type of
scheme is designed to boost up sales in these seasons.
5. Festival offers:
Vishal mega mart have come up with festive offer during Diwali and Christmas by giving
away gifts for purchases that are made at the store for cheaper price. If you shop for Rs.
4500 you get a Strolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs. 2400
and above you get a lemon set, which is said to be imported, worth Rs. 649 for Rs. 99
only.
6. New Year offers:
Vishal mega mart offers gifts for purchases that are make at the store during the New
Year for cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set
for Rs. 249 only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package
for a couple on an International cruise.
7
7. Discount Coupons:
Vishal mega mart offers 25% discount on its large range of apparels. The coupon is valid
for limited period. This coupon is valid for 25% off on any product purchased from
www.vishalmegamart.com
8. Gift Vouchers:
Vishal mega mart Fresh Fashion offers many vouchers ranging different denominations
like Rs100, Rs.250, Rs.1000 and Rs.2000. These vouchers are exchangeable with the
products by the customers at all the vishal mega mart Showrooms in India. The vouchers
are a better option rather than gifts for the employees and customers as they are not
bound for a particular thing to accept. They are given free choice for choosing better gifts
for themselves by using vouchers. Vishal mega mart vouchers offer a wide range of
products and services for shopping. It has got coverage in 15 cities including 22 outlets. It
thus offers good gift vouchers to its customers, clients and sales force also to keep good
relationships amongst each other. The most famous Gift Vouchers by Pantaloons Fresh
Fashion are Trendsetters and Connoisseurs Choice.
8
1.3: Details about the topic
1.3.1 Definition of Sales promotion
Sales promotions are short-term incentives to encourage the purchase or sale of a product
or service. Sales promotion includes several communications activities that attempt to
provided value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include coupons,
samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes
1.3.2 Sales Promotion Strategies
Sales promotion is a process of increasing sales volume of a defined product in a defined
territory in a defined time period to meet short term sales objective. Sales promotion
plays a vital role in marketing campaigns, it consists of a collection of incentives, tools
mostly short term, designed to stimulate quicker or greater purchase of particular
products or services by consumers or trade.
Sales promotion tools offer three distinctive benefits:
(a) Communication: They gain attention and may lead the consumer to the product.
(b) Incentives : They incorporate some concessions, inducement, or contribution
that gives value to the consumers.
(c) Invitation : They include a distinct invitation to engage in the transaction
now or as quickly as possible.
9
1.3.3 TYPES OF SALES PROMOTION
PUSH PULL
A push strategy involves convincing trade intermediary channel members to "push" the
product through the distribution channels to the ultimate consumer via promotions and
personal selling efforts. The company promotes the product through a reseller who in turn
promotes it to yet another reseller or the final consumer. Trade-promotion objectives are
to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers. Typical tactics employed in
push strategy are: allowances, buy-back guarantees, free trials, contests, specialty
advertising items, discounts, displays, and premiums.
A pull strategy attempts to get consumers to "pull" the product from the manufacturer
through the marketing channel. The company focuses its marketing communications
efforts on consumers in the hope that it stimulates interest and demand for the product at
the end-user level. This strategy is often employed if distributors are reluctant to carry a
product because it gets as many consumers as possible to go to retail out lets and request
the product, thus pulling it through the channel. Consumer-promotion objectives are to
entice consumers to try a new product, attract customers away from competitors’
products, get consumers to "load up" on a mature product, hold &reward loyal customers,
and build consumer relationships. Typical tactics employed in pull strategy are: samples,
10
coupons, cash refunds and rebates, premiums, advertising specialties, loyalty
programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)
displays.
1.3.4 Reasons for Sales Promotions
· This could be a way of monitoring the performance of product management. Since sales
promotion can possibly provide immediate impact on consumer sales, it is not unusual to
use these strategies to attain their sales objectives.· Companies have to cope with pressure
on sales margins which they can achieve through paying closer attention to cost-effective
sales volume. Since the results of using sales promotional techniques can be determined
accurately, sales volumes can be easily predicted.
· More importantly, sales promotions are not only effective in attaining short term sales;
they are also more cost-effective compared to other integrated marketing communications
tools such as advertising. The progressive fragmentation of audiences and the increase in
media costs have tipped the balance in favour of sales promotion techniques which are
more likely to deliver demonstrable results.
1.3.5 Popularity of Sales Promotions
The reason sales promotions are gaining popularity is due to the fact that product and
sales management are very confident in their ability to handle the techniques of sales
promotion. Other forms of integrated marketing communication tools need to go through
a lot of thought and internal debates before funds are allocated or decisions are arrived at.
11
Product managers also are more in control of the determination and implementation of
sales promotional activities. They have a freehand when it comes to what sales strategies
to use.
The importance of sales promotions as an integrated marketing communications tool
could be attributed to the increase in number of specialist sales promotions agencies
operating in certain places. In the past, sales promotion was viewed as part of other
marketing communications techniques. Today, it is one of the stand-alone effective
marketing tools.
12
1.4: Research Question: As the research question for my dissertation report is as
following:
To know about sales promotional techniques and its effectiveness of Vishal Mega
Mart.
The study will be carried out in the city of Bareilly and will enable vishal mega mart to
understand which consumer and sales promotion scheme are beneficial and like by
customer so as to retain customer for longer period.
This research is helpful to know type of sales promotional scheme used by retail
store and to motivate the consumer for buying the products.
13
1.5: Objective of Research
1) To access the current sales promotion scheme in Vishal Megamart
2) To find out the nature and types of the sales promotion scheme offered by Vishal
mega mart to customer
3) Find out consumer perception toward sales promotion scheme
4) To find out the how much effective sales promotion for vishal mega mart
14
Chapter 2:
Literature Review
Several studies on apparel retail sector and usage of promotions are reported in the
context of developed markets. A brief overview is presented below:
Indian organized retail industry is poised for growth. Apparel sector in particular has a
great opportunity with alignment of Indian economy to globalised markets. With the
widespread use of sales promotions- short term activities which provide material
inducements to consumers and trade it becomes imperative for managers to understand
such practices and understand challenges.
India as an Apparel Retail sector has grown to accommodate and use sales promotion as
an important tool to push sales and more importantly create brand loyal customers.
Retailers like Lifestyle, for instance, has a loyalty programme called `The Inner Circle',
while Pantaloons offers a `Green Card' Rewards programmes, Westside has `Club
West' to woo the customers.
Marketers use price oriented promotions such as coupons, rebates and price deals to
increase sales and market share, to entice trial, and to encourage brand switching. Gupta
(198 8) suggests that 84% of the sales increases due to promotion come from brand
switching.
Loyalty or continuity programs such as frequent user programs and shoppers' cards,
which reward consumers' repeat purchasing of a particular brand or at a particular outlet,
have their greatest value encouraging consumers with divided loyalty to purchase a given
brand (Shimp 2000).
15
The Indian retail industry is undergoing major revolutions. Retailing in India is gradually
becoming the next boom industry. The consumer buying patterns and behavior are
changing steadily. The growth of India's retail sector not only limited to urban areas but
also growing in rural areas. In the next five years, it is expected that, India's retail
industry will expand more than 80%. (Supriya Pal, 2008)
With the advent of modern format retailers and the growth of plastic cards, affluent urban
Indian women are shopping like never before. They spend mornings browsing in stores
looking for deals or latest styles. It’s here the role of sales promotion becomes prominent.
Indian shoppers are deal hungry and rely heavily on price deals, off the shelf discounts
and gift vouchers. In the large urban centers, apparel retailers, like Shoppers Stop,
Westside and Pantaloon have popularized loyalty cards, gift vouchers and price deals.
This sales promotion can be categorized as the new form of promotional activity which
the Indian Apparel industry is offering and making the best out of it. Shoppers stop for
instance has over 60% of its revenues from its “First citizen” card holders who are
entitled for various discounts and loyalty points.
This highlights the importance of sales promotions and Apparel retailer needs to
understand critical role of sales promotions. Attractive promotions induces purchase
acceleration, stock piling and brand switching on the part of a consumer which
substantially reduces retailers financial and inventory risk and consumer’s psychological
risk.
Many studies have been done in the past to analyze sales promotions and relative
consumer buying behavior
1. Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied Buyer–
seller relationships for promotional support in the apparel sector which is critical
for success.
The purpose of the study was to define promotional support categories offered to
apparel retailers by manufacturers, to identify the retailer's perceptions of the
16
offering frequency and importance of the promotional support
2. Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs on
Consumer Purchase Behavior and Loyalty. The study found out that consumers
who were heavy buyers at the beginning of a loyalty program were most likely to
claim their qualified rewards
3. An Investigation of Consumer Response to Sales Promotions in Developing
Markets: A Three-Country Analysis. Journal of Advertising Research | May 01,
1998 | L., Lenard C.; Alden Huff Dana studied consumers' attitudes towards the
use of coupons (a price-oriented promotion) and sweepstakes (a non-price
promotion). The models were designed specifically for developing or newly
industrialized countries with collectivist cultures and were tested with consumer
samples from Taiwan, Thailand, and Malaysia. The study suggested that
Marketing managers use price-oriented promotions such as coupons, rebates, and
price discounts to increase sales and market share, entice trial, and encourage
brand switching. Also the use of Non-price promotions such as sweepstakes,
frequent user dubs, and premiums add excitement and value to brands and
encourage brand loyalty
In view of above research studies, the emergence of sales promotions in Indian retail
segment needs to be identified. This research will look into the aspect of sales
promotional activities in Indian Apparel Retail segment. Also this study will
encompass the promotional strategies of major retail brands like Westside, Lifestyle
and Shopper Stop among others. The effectiveness of these sales promotion activities
will be studied w.r.t increasing sales/revenues as well as creating and building brand
loyal customers.
17
Chapter 3: Research Design
3.1 Research methodology
When we talk about research methodology, we do not talk only of research
method but also consider the logic behind the method that be used in context research
study. We also evaluate why we are using a particular method and the used technique
should be such that the research is capable of being evaluated by the researcher and as by
others.
3.2 Research Design
Descriptive research is one, which involves describing the state of affairs, as they exist.
This type of research was used in the study of marketing strategies for the sale of
company’s product also while studying about the parameters, which affect
competitiveness of the product.
3.3 Method of data collection
Type of Research: - This research is Descriptive Research in nature because in this we
are conducting a customer based survey to know the opinion of customers about the
promotional strategy of the Vishal Megamart.
18
Types of Data:- There are two types of data has been used in this research. Primary and
Secondary.
Primary Data:-Survey by Questionnaire from concerned authorities & questionnaire for
the customers.
Secondary Data:-Previous Report and websites of the organization. For Literature
review few researches has been used..
Research Instrument:-For this purpose Questionnaire & Observation has been used as tool.
Contact Method: -Direct survey of the employees and questionnaire for the customers.
Sampling Size: - 10 employees
20 customers
Sampling Area:-Vishal mega mart, Bareilly.
19
Chapter 4: Data Analysis and Interpretation
Analysis of Questionnaire for the employees -
Q.1-Do you adopt the sales promotion techniques-
Table 1: Data showing uses of promotional techniques by vishal mega mart.
YES NOSAMPLE SIZE
10 0 10% 100% 0% 100%
100%
%
YES 10NO 0
Fig 1: Data showing uses of promotional techniques by vishal mega mart.
20
Interpretation – As this question is design to know that vishal mega mart uses sales
promotion techniques or not. When I asked from ten employees of vishal mega mart they
all reply that they use sales promotional techniques.
Q.2-Which type of sales promotion techniques you adopt-
Table 2: Data showing which type of sales promotional techniques is used by vishal mega mart.
Discount
Coupons
Free gifts
Buy one Get one others
SAMPLE SIZE
6 1 1 2 0 10% 60% 10% 10% 20% 0% 100%
60%
10%
10%
20%
Sales
discountcouponsfree giftsbuy one get one freeothers
Fig 2: Data showing which type of sales promotional techniques is used by vishal mega mart.
21
Interpretation: As this question is design to know that which types of sales promotion
techniques is used by vishal mega mart. When I asked from ten employees of vishal mega
mart. Through this figure we can easily know that 60% of employee told that discount
techniques is used and 20% told that coupon technique is used and 10% told that buy one
get one free technique is used and rest of 10% told that others technique are used by
vishal mega mart.
Q.3-Which techniques is most attractive to the customer?
Table 3: Data showing that which techniques are most attractive to the customer?
Discount Coupons Free Gifts Buy one get one free
Others Sample Size
5 1 1 2 1 10% 50% 10% 10% 20% 10% 100%
50%
10%
10%
20%
10%
%
DiscountCouponsFree GiftsBuy one Get one FreeOthers
Fig 3: Data showing that which techniques is most attractive to the customer.
22
Interpretation: Through the analysis we can easily know that discount technique
attract 50% of the customer of vishal mega mart , 20% customer of vishal mega mart
are attracted by coupons technique , 20% customer of vishal mega mart are attracted
by buy one get one free technique and rest of 10% customer are attracted by other
techniques.
Q.4-Do you strongly rely on these techniques?
Table 4: Data showing that employee really rely on these techniques or not.
YESGENERALLY
SOMETIMES NO SAMPLE SIZE
4 3 3 0 10% 40% 30% 30% 0% 100%
40%
30%
30%
%
YES 4GENERALLY 3SOMETIMES 3NO 0
Fig 4: Data showing that employee really rely on these techniques or not.
23
Interpretation: Through the analysis we can easily know that 40% of employees really
believe on these sales promotional techniques , generally 30% employee believe that it
should be there and rest of 30% believe that it should be used some time.
Q.5- For how long you stick to particular techniques-
Table 5: Data showing that for how long one techniques is used by vishal mega mart.
ONE WEEK
10-15 DAYS
More than one month
Sample
size
7 2 1 10% 70% 20% 10% 100%
70%
20%
10%
Sales
one week10-15 daysmore than one month
Fig 5: Data showing that for how long one techniques is used by vishal mega mart.
Interpretation: Through the analysis we can easily know that 70% employees told that
the duration of using one technique is 0ne week , and 20% told that the duration of using
24
one technique is ten to fifteen days and remaining 10% told that technique is used for
more than one month.
Q.6- Do really these techniques increases sales?
Table 6: Data showing that these techniques really increases sales of vishal mega mart or not.
ALWAYS
SOMETIMES RARELY
NO THEY DON`T SAMPLE SIZE
5 5 0 0 10% 50% 50% 0% 0% 100%
50%50%
%
ALWAYS 5SOMETIMES 5RARELY 0NO THEY DON`T 0
Fig 6: Data showing that these techniques really increases sales of vishal mega mart or not.
Interpretation: Through this analysis we can easily know that 50% employees really
believe that by using sales promotional technique the sales of vishal mega mart always
25
increases and 50% think that it is helpful for increasing the sales of vishal mega mart for
some times.
Q.7- Does it helps to introduce a new product?
Table 7: Data showing that sales promotional techniques really help in introducing a new product or not.
YES NO CAN`T SAY SAMPLE SIZE 6 1 3 10% 60% 10% 30% 100%
Fig 7: Data showing that sales promotional techniques really help in introducing a new product or not.
Interpretation: Through the analysis of this question we can easily know that 60%
employee believe that sales promotional technique helps in introducing a new product
and 10% don’t believe and remaining 30% says that they don’t know.
26
60%
10%
30%
%
YES 6NO 1CAN`T SAY 3
Analysis of customer question:
Q1. Since how many days you are visiting the Vishal Mega mart?
Table 1: Data showing that from how many days customer is visiting in vishal
mega mart.
% >1 year 1 -2 year 2-4 year <4 Sample size
4 6 7 3 20
20% 30% 35% 15% 100%
Fig 1:
Data showing that from how many days customer is visiting in vishal mega mart.
27
20%
30%35%
15%
Days
>1 year1-2 year2-4 year<4 year
Interpretation: Through the analysis of this question we can easily know that 20% of the customer are coming to vishal mega mart from past one year, and 30% are coming to vishal mega mart from past two years, 35% customer are coming to vishal mega mart from past four years and remaining 15% are coming to vishal mega mart from more than four year.
Q.2 Are you satisfied with its products and customer handling?
Table 2: Data showing the satisfaction level of customer for the product and customer handling offered by vishal mega mart.
% Yes No Sample Size
12 8 20
60% 40% 100%
Fig 2: Data showing the satisfaction level of customer for the product and customer handling offered by vishal mega mart.
28
60%
40%
Satisfaction Level
Yes
No
Interpretation: Through the analysis of this question we can easily know that 60% of customers are satisfy with the product and customer handling being provided by vishal mega mart and remaining 40% are not satisfied.
Q.3) Do you enjoy the discounts being provided here?
Table 3: Data showing the satisfaction level of customer with the discount provided by vishal mega mart.
% Yes No Cannot say Sample size
17 3 0 20
85% 15% 0 100%
Fig
3:
Data showing the satisfaction level of customer with the discount provided by vishal
mega mart.
29
85%
15%
Satisfaction Level
Yes
No
Interpretation: Through the analysis of this question we can easily know that 85% of the
customers are satisfied with the discount provided by vishal mega mart and the remaining
15% are not satisfied by the discount provided by the vishal mega mart.
Q4. Are you satisfied with sales promotion activity of the Vishal Megamart?
Table 4: Data showing the satisfaction level of customer with the sales promotion activity by vishal mega mart.
% Yes No Sample Size
17 3 20
85% 15% 100%
Fig 4: Data
30
85%
15%
Satisfaction Level
Yes
No
showing the satisfaction level of customer with the sales promotion activity by vishal mega mart.
Interpretation: Through the analysis of this question we can easily know that 85% of the
customers are satisfied with the sales promotional activity provided by vishal mega mart
and the remaining 15% are not satisfied by the sales promotional activity provided by the
vishal mega mart.
31
Q. 5 Which offer do you like the most?
Table 5: Data showing the offer which are most preferred by the customer.
Discounts Free GiftsBuy one get one free If any other Sample size
10 4 5 1 20
% 50% 20% 25% 5% 100%
Fi:g 5:
Data showing the offer which are most preferred by the customer.
Interpretation: Through the analysis of this question we can easily know that 50% of the
customer are satisfied with the discount provided at vishal mega mart , 20% customer are
satisfied with the free gifts , 25% customer are satisfied with the buy one get one free
technique and remaining 5% are satisfied with the other promotional activity.
32
50%
20%
25%
5%
DiscountFree GiftsBuy one get one freeIf any other
Q6. Do you think you will keep visiting the Vishal Megamart?
Table 6: Data showing the customer loyalty that they will continue visiting to vishal
mega mart in future or not.
Yes No Can not say Sample size
16 0 4 20
% 80% 0 20% 100%
Fig 6: Data showing the customer loyalty that they will continue visiting to vishal mega
mart
in
future or not.
Interpretation: Through the analysis of this question we can easily know that 80% of the
customer will continue to buy in future and the remaining 20% are not sure that whether
they will come or not.
33
80%
20%
YesNoCan not say
CHAPTER - 5
5.1 Findings
As there were two types of respondents with different type of questions so the
findings of the questionnaire are as following:
Vishal mega mart uses promotional tool at wider range.
They mostly use discount offers as a promotional tool for increasing sales.
They use promotional tool mostly for a week
Promotional tools are very much important for Vishal Mega Mart, in
increasing sales and also in introducing new products.
Customers are also satisfied with the promotional tools of Vishal Mega Mart;
mostly they are satisfied with the discount offers.
Customers are satisfied with the products of Vishal Mega Mart and also with
the behavior of the employees.
Vishal mega mart maintains good customer relationship that’s why most of the
customers said that they will visit Vishal Mega Mart frequently.
34
5.2 Limitation:-
This research is conducted on a very small sample size, so it might be possible that the
information given by such respondents may not match with the replay of total customer
available in the store at that time.
There was a time constraint while conducting the report.
It might be possible that the answers given by the respondents are full of biasness.
As there are two types of respondents so there is difference between the responses
towards the sales promotion tools avail by both of them which become a constraint
towards the research project.
5.3 Suggestions.
35
They need to focus on other promotional tools as they only rely on discount offers.
They should also focus on quality of product.
They should also focus on customer handling services and they should take new
steps in reducing the waiting time of customer during making payments as there is
a long queue.
They should also use promotional tool for more than a week so that every
customer is benefited.
5.4 Conclusion
36
In the research we found that Indian retail industry is very complicated in nature
because the taste and preferences of the customers vary a lot in nature. The customers are
very choosy in nature; they are not ready to compromise with their requirements. The
customers have lots of option related to the choices. There are many competitors in the
retail industry. So the sales and promotion activity of the company is the only tool to
attract the customers.
In the study we found that Vshal Megamart is one of the most successful retail
stores in India. They apply various methods of sales and promotion. They apply most of
the tools on weekly basis. They also keep on changing the methods regularly. They do so
because they know that if they have to sustain in the market will need to give their
customers always something new.
Bibliography
37
www.vishalmegamart.com
www.wikipedia.com
www.scrib.com
Books-
Philip Kottler
Annexure.QUESTIONNAIRE
38
Questionnaire for the Customers
Name-
Occupation-
Adress-
1. Since how many days you are visiting the Vishal Megamart?
a) >1 year
b) 1-2 year
c) 2-4 years
d) 4< years
2. Are you satisfied with its products and customer handling?
a) Yes
b) No
3. Do you enjoy the discounts being provided here?
a) Yes
b) No
c) Not Really
4. Are you satisfied with sales and promotion activity of the Vishal
Megamart?
a) Yes
b) No
39
5. Which offer do you like the most?
a) Discounts
b) Free Gifts
c) Buy one Get one free
d) Other if any.
6. Do you think you will keep visiting the Vishal Megamart?
a) Yes
b) May be
c) No
Questionnaire for Employees
40
Name :- ___________________________
7. Do you adopt the Sales Promotion techniques?
a) Yes b) No
8. Which type of sales promotion techniques you adopt -
A. Discount [] B. Coupons [ ] C. Buy one and get free [] D. Free gifts []
E. If other, specify …………………………
9. Which techniques is most attractive to the customer?
A. Discount [ ] B. Coupons [ ] C. Buy one and get free [ ] D. Free gifts [] E. If other, specify …………………………
10. Do you strongly rely on these techniques -
a) Yes b) No c)Sometimes d)Generally
11. For how long you stick to particular techniques?
a) 1 month b)10-15 days c)one week d) depends on the need
Q6) Do really these techniques increases sales?
a) Every time b)Sometimes c) Generally d) No they don`t
7. Does it help to introduce a new product?
a) Yes b) No c) can`t say
41
42