2009

Retail Survey

TARANG JAIN
PGDM II
13/12/2009
SALES PROMOTION RETAIL ASSIGNMENT

Index

1. Introduction

a. Sales Promotion

2. Methodology

a. Need For Study

b. Objective

c. research methodology

3. Data analysis and Interpretation

4. Findings

5. Questionnaire

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Introduction

The word "Retail" originates from a French-Italian word. Someone who cuts off or sheds a small piece,
from something. Retailing is the set of activities that markets products or services to final consumers for
their own personal or household use. It does this by organizing their availability on a relatively large scale
and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or
Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the
End User or Ultimate Consumer.

The Indian Retail Industry is the largest among all the industries, accounting for over 10 per cent of the
country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as
one of the most dynamic and fast paced industries with several players entering the market.

Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept
of shopping has altered in terms of format and consumer buying behavior, facilitating in a revolution in
shopping in India. Modern retail has entered India as seen in spreading shopping centers, multi-storied
malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing
sector is at an inflexion point where the growth of org anized retailing and growth in the consumption by the
Indian population is going to take a higher growth trajectory. The Indian population is witnessing a
significant change in its demographics.

Retail and real estate are the two booming sectors of India in the present times. And if industry
experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail,
one of India’s largest industries, has presently emerged as one of the most dynamic and fast paced
industries of our times with several players entering the market. Accounting for over 10 per cent of the
country’s GDP and around eight per cent of the employment retailing in India is gradually inching its way
toward becoming the next boom industry.

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Sales promotion

Generally Sales promotion is the process of persuading a potential customer to buy the product or service.
It is also very endemic in the product as well as services market to buy their product or to use their services
more. A sales promotion strategy can be directed to end customer, sale s staff or on channel members.
Sales Promotion is a challenging task in today's market scenario as many organizations are coming out
with different promotions. It is important to focus benefits provided by the promotional offers

Definitions

“Sales promotions generally aim to change purchase behaviour, they vary in whether they attempt to
persuade consumer to buy a product for the first time, to buy more or to buy more often”—Philip Kotler.

“Sales promotions includes those sales activities that supplement both personalselling and advertising and
coordinating them and help to make them effective, such as displays, shows and expositions,
demonstration and other non-recurrent selling efforts not in ordinary routine”—AMA

“Sales promotions is an action-focused marketing event whose purpose is to have a direct impact on the
behavior of the firm’s customer” –Institute of sales promotions, U.K

TARANG JAIN PGDM II

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SALES PROMOTION RETAIL ASSIGNMENT

Need for Study:

Sales Promotion is a challenging task in today’s market situation as many organizations are coming out
with different promotions. It is important to focus benefits provided by the promotional offers. Since each
and every coming with sales promotion offers, there is need to understand the Impact of sales promotion
on the end consumer, how they perceive the sale promotion. This study can effect organization
Performance and enable the customers to deal with various promotional offers.

Objectives of the Project Work

To study the Impact of sales promotion on consumer Behaviour

To assess the consumer perception about Sales Promotional scheme.

Methodology

To achieve the said objectives a comprehensive study has been made on crucial areas of Customer
satisfaction. A detailed Questionnaire has been developed and employed on the selected

Research Methodology: Survey Method

Research Instrument: Structured Questionnaire is used for the purpose of the study

Contact Method: Personal Interview

Sample size: By using convenient random sampling technique 100 customers are selected for the purpose
of the study. Direct questionnaire is used to survey the customers

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Data analysis and Interpretation

Demographic Profile of the Sample

Demographic Profile of the Sample

25

20
Numbers of respondent

15

10

0
17 18 19 20 21 22 23 24 25 26 27 28 35 (blank)
Age in years

Demographic Profile of the sample

female, 20

f
m

male, 82

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Maximum respondents are of age group of 20-25 years. About 90 % of the respondent is in the age group
of 20-25 years. This age group is more involved in the buying of apparels and accessories; hence this age
group was the focus of the research about 80% of the respondent are male and rest are female.

Consumer Frequency of visiting the store

For women:

Consumers Frequency of visiting the store

(women)
e f
10% 5% a
d
35%
10%
a
b
b
40% d
e
f
(blank)

a) Monthly b) Quarterly c) Six monthly d) Occasionally

e) Time of Sale Promotion f) at the time of festival

According the graph we can see that about 40 % of the female respondent visit the store for shopping
Quarterly and 35 % of the female respondent visit monthly for the shopping. Major chunk of the women
goes for shopping of apparels each 2-3 month and sale promotional offer not contribute much for their visit
to the stores, as visit at time of sale promotion specifically is very less.

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For men:

Consumer Frequency of visiting the store

(men)
e f
13% 2% a
32% a

d b
27% b c
23% d
c
3% e
f
(blank)

a) Monthly b) Quarterly c) Six monthly d) Occasionally

e) Time of Sale Promotion f) at the time of festival

Men generally go for buying apparel and accessories each 2-3 month. Responded who goes for shopping
every month are 32% and quarterly buyers are about 23%.Also impact of sales promotion on their visit to
store is not much, only few of them like to for shopping at the time of sale promotion.

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First thought at the mention of sales Promotion:

First thought at the mention of sales Promotion

c d
2% 4% a
41%
a
b
53% b
c
d
(blank)

a) Offers b) Discounts c) Coupons d) Free Gifts

Maximum people associate sales promotional offers with the Offers and Discount. As major Pie in chart
covered by offers 41% and Discount 53%.They do not give much importance to the coupons and free gifts
given by the store.

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Media where most of the respondent heard or seen about Sales promotion

Media where most of the respondent heard or

seen about Sales promotion
e
d 5%
a
27% 44% a
b
b
14% c

c d
10% e
(blank)

a) Print Media b) T.V c) Radio d) Word Of Mouth e) Internet

It seems from the above graph that Print media is dominant in communicating to customer
about the sakes promotion with 44 % of respondent preferring the print media. Most of the
customer also came to know about the sale promotion from word of mouth.

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Language preferred for daily news

language preferred for daily news

d a
4% 16%

b a
c 16%
b
64%
c
d
(blank)

a) Marathi b) Hindi c) English d) Other…………..

In the pie chart it is clear that language preferred by the youngsters between the age group 20-25 is
English followed by the Marathi and Hindi with 16 % responded each , which far less than English
language 64%

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Bulk buying behavior of the consumer During the Sales promotion

For Men:

Bulk buying During the Sales promotion

(men)

Yes, 33
a
No, 49
b
(blank)

About 40 %of men tend to buy in bulk during sale promotional offers, but 60% of them does not buy in bulk
during the sale promotion.

For Women:

Bulk buying During the Sales promotion

(women)

No, 10 Yes, 10
a
b
(blank)

Women tend to buy more during the sale promotional offers .Graphs also suggesting that the about 50% of
the women buys in bulk during the promotional offers

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Perception about the Quality of the product during sales Promotion:

For men:

Perception about the Quality of the product

during sales Promotion(men)

No
52% Yes a
48%
b
(blank)

About 52 %of the respondents do not believe that the quality and fashionable products are maintained at
the time of the sale promotion offer. Although 48 % of respondent thinks that quality is maintained at the
time of sale promotion. 48 % is seems as good number but very less as compared to the 52 %people who
are against the idea.

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For Women: 50% of the female customers perceives that the quality of the products deteriorate at the time
of the sale promotion

Perception about the Quality of the product

during sales Promotion:

No Yes
50% 50% a
b
(blank)

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How they perceive any sales promotion by any retail store:

For men:

Perception about sales promotion

a
c 32%
43%

a
b
c
b (blank)
25%

a) Shopping time b) Common offers c) offers are for clearing stocks

Most of the male respondent thinks that the sale promotional offers are for the clearing
the stock, the fact is supported by the 43% of the respondent. Only 32 % of the male
respondents take sale promotion as a shopping time. And 25% of the responded took it
as general offers.

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For women:

Perception about sales promotion

c
30%
a
45%

a
b
c
b (blank)
25%

a) Shopping time b) Common offers c) offers are for clearing stocks

45% of the female responded find sale promotion as shopping time and goes out for shopping during sales
promotion time. While only 30% of the female respondents think that the offers are for clearing the stock.
There is huge difference between men and women perception regarding sale promotion.

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Visit to Store only when sales promotion is going on?

For Men:

Visit to Store only when sales promotion is

going on?
Yes
23%

a
No. b
77%
(blank)

77% of the male respondent visits the stores regularly i.e. each 2-3 month. They do not wait for any
schemes or offer.Same type of behavior is found in female customers.

For women:

Visit to Store only when sales promotion is going

on a
10%

No a
90%
b
(blank)

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Like to switch the Brands for sack of sale promotion

For men

switch the Brands for sack of sale promotion

(men)
c
13% a
38%

a
b
c
b
49% (blank)

a) Yes I do if offer is good b) For Some products c) No I stick to my brand

At the time of the sale promotional offer male respondent can switch their brands if they the deal giving
value for the money.32% Male respondent say that if offer is good they will switch to new product.49%
responded will switch for some another brand for some type of product

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For women

switch the Brands for sack of sale promotion

(female)

c a
10% 45%

a
b
b
45% c
(blank)

a) Yes I do if offer is good b) For Some products c) No I stick to my brand

More than 45% of the female’s respondents will tend to switch their brand if a good offer is
given to them and also about 45% of them will switch for some of the products only. A very
percent of respondents stick to their brand irrespective of any sale promotion offer

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Type of products for which consumers can switch brand

For Men:

Type of products for which consumers

can switch brand
d a
c 15% b
12%
a c
55%
d
(blank)
b
18%

For Women

Type of products for which consumers

can switch brand
d a
c 10%
10% b

a c
60% d
b (blank)
20%

Same type of trends are there in men and women maximum people switch their apparel brands for sale
promotional offer ,followed by the food item and Then Footwear and electronics

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Findings

On an average people visit each 2-3 month for shopping for apparels and
accessories.
People associate offers and discounts with the sale promotion
Print media is the major source of awareness for sales promotion and English
language is preferred for daily news among youngsters
Women are tending to buy more during sale promotion as compared to men.
Generally people think that quality product is not offered during the sale promotion
Men perceive offers for clearing the stock ,while women’s perceive it as shopping
time
people can change their brand for the sack of ale promotion if good offer is given to
them for category like apparels and footwear switching is easy

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Questionnaire
NAME: AGE:

LOCALITY: PHONE NO.:

1. Which is/are your preferred store(s) to shop for apparels and accessories

2. How frequently do you visit these stores to shop

a) Monthly b) Quarterly c) Six monthly d) Occasionally

e) Time of Sale Promotion f) At the time of festival

3. What is your first thought at the mention of “Sales Promotion” at any store
a) Offers b) Discounts c) Coupons d) Free
Gifts
4. Where do you usually hear/see about the sales promotional offers
a) Print Media b) T.V c) Radio d) Word Of
Mouth
e) Internet
5. Which of the following languages do you prefer for NEWS daily.
a) Marathi b) Hindi c) English d) Other…………..
6. Do you Buy in Bulk during the sales promotional offers
a) Yes b) No
7. Do you believe Quality and Fashionable product is maintained at the time of
Sales Promotional offers?
a) Yes b) No
8. How you perceive sales promotional offers by stores?
a) Shopping time b) Common offers c) offers are for clearing
stocks

9. Do you visit Stores only when Sales Promotion schemes are offered?
a) Yes b) No

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10. Would you like to change from your regular BRAND for the Sales
Promotional offers?
a) Yes I do if offer is good b) For Some products c) No I stick to
my brand
11. For Which type of Product(s) can you try different brands apart form your
regular brand
a) Apparels b) Food Items c) Electronic Durable
d) Footwear e) Other

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