PROJECT REPORT

ON

ROLE OF SALES PROMOTION ON FMCG AT AHMEDABAD

Introduction
FMCG Concept and De inition!
The term FMCG (fast moving consumer goods), although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use. Conceptually, ho ever, the term refers to relatively fast moving items that are used directly !y the consumer. Thus, a significant gap e"ists !et een the general use and the conceptual meaning of the term FMCG. Further, difficulties crop up products on the !asis of ho therefore, is hen attempts to devise a definition for FMCG. The

pro!lem arises !ecause the concept has a retail orientation and distinguishes !et een consumer quic#ly they move at the retailer$s shelves. The moot question hat industry turnaround threshold should !e for the item to qualify as an FMCG.

%hould the turnaround happen daily, ee#ly, or monthly& 'ne of the factors on hich the turnaround depends is the purchase cycle. (o ever, the purchase cycle for the same product tend to vary across population segments. Many lo ) income households are forced to !uy certain products more frequently !ecause of lac# of liquidity and storage space hile relatively high)income households !uy the same products more infrequently. %imilarly, the purchase cycle also tends to vary !ecause of cultural factors. Most Indians, typically, prefer fresh food articles and therefore to !uy relatively small quantities more frequently. This is in sharp contrast countries, ith hat happens in most estern for here the practice of !uying and soc#ing foods for relatively longer period is more

prevalent. Thus, should the inventory turnaround threshold !e universal, or should it allo income, cultural and !ehavioral nuances& Glo!al leaders in the FMCG segment are *nheuser)+usch In+ev, Mars Inc, ,estl-, ITC, (industan .nilever /imited, 0ec#itt +enc#iser, .nilever, 1rocter 2 Gam!le, /3'r-al, Coca) Cola, Carls!erg, 4leene", General Mills, 1epsi, Gillette etc.

Introduction to t"e topic

The importance of consumer sales promotion in the mar#eting mi" of the fast moving consumer goods (FMCG) category throughout the orld has increased. Companies spend considera!le time in planning such activities. (o ever, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumer$s perceptions regarding sales promotion. %ome past researches have suggested that promotion itself has an effect on the perceived value of the !rand. This is !ecause promotions provide utilitarian !enefits such as monetary savings, added value, increased quality and convenience as such as entertainment, e"ploration and self)e"pression. +roadly spea#ing most of the companies using Mar#eting Mi" hich includes5 1rice 1lace (Channel of 6istri!ution) 1roduct
1romotion

ell as hedonic !enefits

These are the four !asic pillar of mar#eting mi". Most of the mar#eting strategies are !uilt on the !asis of these criteria. 1romotion is one of the important elements of mar#eting mi". There are so many elements of promotion such as 5 *dvertising 6irect Mar#eting 1u!lic 0elations Sa#e$ Pro%otion %ales 1romotion is quite !road term it includes 5 Con$u%er Oriented Sa#e$ Pro%otion Trade Oriented Sa#e$ Pro%otion

Too#$ o Con$u%er Oriented Sa#e$ Pro%otion!

There are so many tools or technique availa!le to the mar#eters for achieving o!7ective of sales promotion. These tools should !e used considering all other factors affecting such as cost, time, competitors, availa!ility of goods etc. These tools are as under5 8. Coupons 9. 1rice)'ff :. Free!ies ;. %cratch Cards <. /uc#y 6ra s =. +undling 'ffer >. ?"tra @uantity A.

Trade Oriented Sa#e$ Pro%otion

Trade 'riented %ales 1romotion aimed to motivate channel mem!er of the company and to encourage them to push company$s product. Trade 'riented %ales 1romotion includes dealer contest and incentives, trade allo ances. 1oint)of)purchase displays, sales training programs, trade sho s, cooperative advertising, and other programs designed to motivate distri!utors and retailers to carry a product and ma#e an e"tra effort to push it to their customers

T"ere are t"ree t&pe$ o $a#e$ pro%otion $trate'ie$!

* push strategy * pull strategy or * com!ination of the t o

A Pu$" Strate'&!
* Bpush$ sales promotion strategy involves Bpushing$ distri!utors and retailers to sell your products and services to the consumer !y offering various #inds of promotions and personal selling efforts. Chat happens here is that a company promotes their productDservices to a reseller ho in turn promotes it to another reseller or to the consumer. The !asic o!7ective of

this strategy is to persuade retailers, holesalers and distri!utors to carry your !rand, give it shelf space, promote it !y advertising, and ultimately Bpush$ it for ard to the consumer. Typical push sales promotion strategies includeE !uy)!ac# guarantees, free trials, contests, discounts, and specialty advertising items.

A Pu## Strate'&!
* Bpull$ sales promotion strategy focuses more on the consumer instead of the reseller or distri!utor. This strategy involves getting the consumer to Bpull$ or purchase the productDservices directly from the company itself. This strategy targets its mar#eting efforts directly on the consumers ith the hope that it ill stimulate interest and demand for the product. This pull strategy is often used hen distri!utors are reluctant to carry or distri!ute a

product. Typical pull sales promotion strategies includeE samples, coupons, cash refunds or re!ates, loyalty programs and re ards, contests, s eepsta#es, games, and point)of)purchase displays.

A Co%(ination o T)o Strate'ie$!

* Bcom!ination$ sales promotion strategy is 7ust thatE it is a com!ination of a push and a pull strategy. It focuses !oth on the distri!utor as ell as the consumers, targeting !oth parties directly. It offers consumer incentives side !y side ith dealer discounts.

RESEARCH METHODOLOG*
Re$earc" O(+ecti,e$! 8. To study consumer preferences ith respect to sales promotion in FMCG sector. 9. To #no a!out the tradeoffs, relative importance of different attri!utes responding to a sales promotion offer. hile

:. To study the effect of sales promotions in FMCG sector esp. in soaps and detergent industry. ;. To study consumer !ehavior in purchase of soaps and detergent Product cate'orie$ under $tud& DETERGENTS! TOILETERIES Cashing 1o der for Clothes %oaps

Re$earc" De$i'n
0esearch design selected for this pro7ect ill !e 6escriptive.

Data co##ection Met"od! Pri%ar& Data!

1rimary data are those, hich are collected afresh and for the first time and this happen to !e original in character. 1rimary data are data freshly gathered for a specific purpose. The various sources of primary data for my pro7ect ill !e as follo s. 6irect intervie , questionnaire)structured 2 multiple choice @uestions. %urvey method ill !e used for primary data collection. Ce ill questionnaire as an instrument for survey method. @uestionnaire ill !e %tructured Type of questionnaireF 'pen ended and closed ended.

Secondar& Data!
These are those hich have already !een collected !y someone else and hich have already !een passed through the statistical process. I ill use the secondary source of data and it ill !e collectd from the sources li#e. 8. +alance %heet 9. Turnover %tatements :. Monthly Inventory %tatements ;. Company 0ecords <. Internet

Sa%p#in' Detai#
8. Tar'et popu#ation! The population for this research study consists of the residence of *hmeda!ad. 9. Sa%p#in' unitF :. Sa%p#e $i-e! ;. Sa%p#in' %et"od! In this study the sampling unit ill !e individual consumer. .// consumers .// retailers. The sample is selected !y using convenience)sampling method.

Bi(#io'rap"&

BOO0S
1hilip 4otler, GMar#eting ManagementH, 88th . 1earson education *sia 1u!lication.

C.0.4othari, G0esearch Methodology methods 2 techniquesH,,e *ge International(p)ltd.pu!lishers,

1EBSITES
httpFDD httpFDD httpFDD httpFDD .nirma.co.inIfiles .hul.co.inIfiles .pg)indiaIfiles .godre7Ifiles

2ue$tionnaire Cu$to%er$
Ce are students of M+* studying in *(M?6*+*6 and carrying out a survey for our academic pro7ect toG0ole of sales promotions in FMCGH. %o please fill this questionnaire. Jour identity ould not !e revealed and information ill only !e used for academic purpose.

@8. Chich !rand of %oap D 6etergent do you use& 6etergent po der ,irma supper Cheel %urf *riel 'thers 0espondent

@9. 6o you al ays !uy the same !rand of %oap D 6etergent& 1articulars 0espondent Jes ,o @:. Chich factors do you normally consider 6etergents& Factors Fragrance @uality Company image 1rice 1ac#aging 'thers hile purchasing a particular !rand of %oap D +athing soap 6et.po der

@;. 6o you consider promotional schemes hile purchasing a particular !rand of %oap D 6etergent& 1articulars 0espondent Jes

,o @<. Chich of the follo ing promotional schemes you have come across so far& 1romotional schemes 0espondent Coupons price off Free!ies scratch cards luc#y dra +undling e"tra qty. @=. Chich medium do you feel is suita!le to promote the various promotional schemes& %ource 0adio TK ,e spaper (oarding 'thers 0espondent

@>. Is there any e"isting scheme on the %oap D 6etergent you are currently using& 1articulars Jes ,o @A. If yes, please specify& 1articulars :L8D'ther Free 6iscount ,o idea ,o ans er 0espondent 0espondent

@M. If you get an attractive promotional offer in the product other than of your choice s itch over& 1articulars Jes ,o 0espondent

ill you

@8N. Give reason for the same& 1articulars CostLqty @uality %atisfaction +rand loyal More !enefitD!udget %eason change ,o ans er 0espondent

@88. Give suggestions a!out futuristic promotional schemes. 55555555555555555555555555555 5555555555555555555..

Retai#er$
Ce are students of M+* studying in *(M?6*+*6 and carrying out a survey for our academic pro7ect G0ole of sales promotions in FMCGH. %o please fill this questionnaire. Jour identity ould not !e revealed and information ill only !e used for academic purpose.

@8. %ince ho long are you in this !usiness& 1articulars 8)< Jears <)8N Jears More than 8N years

0espondent

@9. ,ame the %oap D 6etergent (Company) you stoc# for. Companies ,irma (./ 12G Godre7 'thers

0espondent

@:. 0an# the follo ing factors that customers loo# for in the purchase of %oap D 6etergent. (0an# from 8 to =) Factors 8 9 : ; < = Fragrance @uality Company

Image 1rice 1ac#aging 'thers

@;. 6o you suggest customers to purchase a certain !rand& 1articula 0espondent r Jes ,o @<. If Jes hy& 1articular (igh margin @uality 0elationship ,o reason @=. 6o customers loo# for various schemes in the product& 1articula r Jes ,o @>. If yes hich schemes& 1romotional %chemes Coupons 1rice 'ff Free!ies %cratch Cards /uc#y 6ra s +undling 'ffer ?"tra @uantity 0espondent 0espondent 0espondent

@A. Chich Trade 1romotions do various companies offer&

,I0M* 1romotions 0espondent ?"tra Margin ?"tra .nits credit facility Gifts promo. ?"p.

(./ 1romotions 0espondent ?"tra Margin ?"tra .nits Credit facility Gifts 1romo. ?"p.

12G 1romotions 0espondent ?"tra Margin ?"tra .nits Credit facility Gifts 1romo. ?"p.

G'60?O 1romotions 0espondent ?"tra Margin ?"tra .nits Credit facility Gifts 1romo. ?"p.

'T(?0% 1romotions 0espondent ?"tra Margin ?"tra .nits Credit facility Gifts 1romo. ?"p. @M Give reasons for not stoc#ing a particular !rand. 555555555555555555555555555555555555.. @8N *ny %uggestions. 55555555555555555555555555555555.. 555555555555555555.