“ANALYSIS OF SALES PROMOTION AND ADVERTISING

STRATEGIES OF BIOGENIX INC”

 DECLARATION

This is to declare that I ............................. of MBA have personally worked on the project

entitled “Analysis of Sales Promotion and Advertising Strategies of Biogenix Inc”

The data mentioned in this report were obtained during genuine work done and collected

by me. The data obtained from other sources have been duly acknowledged. The result

embodied in this project has not been submitted to any other University or Institute for

the award of any degree.

Date: `

Place: Lucknow
 ACKNOWLEDGMENT

First of all I thank God for giving me this wonderful opportunity to undertake this

research which is a part of my MBA program.

I would like to sincerely thank Mr. ........................... for giving me the wonderful

opportunity to work under her able guidance and support throughout my research.

I also thank persons working at Biogenix Inc office for giving me their valuable time and

vital information which forms a part of this report.

I would also like to thank my colleagues for rendering their help to me in this research.

Last but not the least, I thank my parents for their prayers, help and advice which helped

me a lot to complete this project report.

 TABLE OF CONTENT

1. Introduction

2. Sales promotion

3. Objective of research

4. Research methodology

5. Data analysis and interpretation

6. Findings

7. Suggestions and recommendations

8. Limitations

9. Conclusions

10. Questionnaire

11. Bibliography
 INTRODUCTION

ANALYSIS OF SALES PROMOTION AND

ADVERTISING STRATEGIES

Sales promotions are action-focused marketing events whose purpose is to have a

direct impact on the behavior of the firm’s customers. There are three major types
of sales promotions: consumer promotions, retailer promotions, and trade
promotions. Throughout the world, sales promotions offered to consumers are an
integral part of the marketing mix for many consumer products. Increasing
importance of sales promotions as a percentage of the total advertising and
promotional budget and increasing at a rate of 12 percent per year over the last 10
years, studies that strive to understand the impact of sales promotions on
consumers are very important. An advertising strategy is a campaign developed to
communicate ideas about products and services to potential consumers in the hopes
of convincing them to buy those products and services. This strategy, when built in
a rational and intelligent manner, will reflect other business considerations and
objectives as well. Advertising strategies focus on achieving three general goals 1)
promote awareness of a business and its product or services; 2) stimulate sales
directly and "attract competitors' customers"; and 3) establish or modify a business'
image.

Advertising and marketing are concepts that many people consider to describe the
same thing, selling a product or service to the marketplace. However, they are
distinct concepts and understanding the difference is important to ensure you give
due attention to each. This article will help explain the two concepts so you can
clearly approach both advertising and marketing for your business.
Advertising is a marketing communication that employs an openly sponsored,
non-personal message to promote or sell a product, service or idea.[1]:465 Sponsors
of advertising are typically businesses wishing to promote their products or
services. Advertising is differentiated from public relations in that an advertiser
pays for and has control over the message. It differs from personal selling in that
the message is non-personal, i.e., not directed to a particular individual.
Advertising is communicated through various mass media,[2] including traditional
media such as newspapers, magazines, television, radio, outdoor
advertising or direct mail; and new media such as search results, blogs, social
media, websites or text messages. The actual presentation of the message in a
medium is referred to as an advertisement, or "ad" or advert for short.

Commercial ads often seek to generate increased consumption of their products or

services through "branding", which associates a product name or image with
certain qualities in the minds of consumers. On the other hand, ads that intend to
elicit an immediate sale are known as direct-response advertising. Non-
commercial entities that advertise more than consumer products or services include
political parties, interest groups, religious organizations and governmental
agencies. Non-profit organizations may use free modes of persuasion, such as
a public service announcement. Advertising may also help to reassure employees
or shareholders that a company is viable or successful.

Modern advertising originated with the techniques introduced with tobacco

advertising in the 1920s, most significantly with the campaigns of Edward
Bernays, considered the founder of modern, "Madison Avenue" advertising.

Worldwide spending on advertising in 2015 amounted to an

estimated US$529.43 billion Advertising's projected distribution for 2017 was
40.4% on TV, 33.3% on digital, 9% on newspapers, 6.9% on magazines, 5.8% on
outdoor and 4.3% on radio. Internationally, the largest ("Big Five") advertising-
agency groups are Dentsu, Interpublic, Omnicom, Publicis, and WPP.

An advertising strategy is a plan to reach and persuade a customer to buy a product

or a service. The basic elements of the plan are 1) the product itself and its
advantages, 2) the customer and his or her characteristics, 3) the relative
advantages of alternative routes whereby the customer can be informed of the
product, and 4) the optimization of resulting choices given budgetary constraints.
In effect this means that aims must be clear, the environment must be understood,
the means must be ranked, and choices must be made based on available resources.
Effective product assessment, market definition, media analysis, and budgetary
choices result in an optimum plan—never the perfect plan because resources are
always limited.

DEVELOPING THE STRATEGY

Positioning Statement

Formal advertising strategies are based on a "positioning statement," a technical

term the meaning of which, simply, is what the company's product or service is,
how it is differentiated from competing products and services, and by which means
it will reach the customer. The positioning statement covers the first two items in
the listing above.

Implicit in a good positioning statement is what the industry calls the product
concept, namely a cluster of values that the product or service represents and the
associational frameworks in which it fits. A hunting knife will thus have a very
different product concept than a pair of pink silk slippers that glow in the dark. The
product concept will later guide the choice of copy, images, and message content
to be used in actual ads (the "copy platform"). The positioning statement must also
implicitly include the profile of the targeted customer and the reasons why he or
she would buy this product or this service. At a later stage, more data on the "target
consumer" is then developed as the strategy is fleshed out.

Target Consumer

The target consumer is a complex combination of persons. First of all, it includes

the person who ultimately buys the product. Next it includes those who, in certain
circumstances, decide what product will be bought (but do not physically buy it).
Finally, it includes those who influence product purchases (children, spouse, and
friends). In practice the small business owner, being close to his or her customers,
probably knows exactly how to advise the advertising agency on the target
consumer.

Communication Media

Once the product and its environment are understood and the target consumer has
been specified, the routes of reaching the consumer must be assessed—the media
of communication. Five major channels are available to the business owner:

 Print—Primarily newspapers (both weekly and daily) and magazines.

 Audio—FM and AM radio.

 Video—Promotional videos, infomercials.

 World Wide Web.

 Direct mail.
  Outdoor advertising—Billboards, advertisements on public transportation
(cabs, buses).

Each of the channels available has its advantages, disadvantages, and cost patterns.
A crucial stage in developing the advertising strategy, therefore, is the fourth point
made at the outset: how to choose the optimum means, given budgetary
constraints, to reach the largest number of target consumers with the appropriately
formulated message.

Implementation

The advertising campaign itself is distinct from the strategy, but the strategy is
meant to guide implementation. Therefore across-the-board consistency is highly
desirable. Copy, artwork, images, music—indeed all aspects of the campaign—
should reflect the strategy throughout. This is especially important when multiple
channels are used: print, television, and direct mail, for instance. To achieve a
maximum coherence, many effective advertisers develop a unifying thematic
expressed as an image, a slogan, or a combination which is central to all the
elements that ultimately reach the consumer

Marketing

Marketing refers to the strategies and preparation you do to get your product or
service ready to sell and identifying the target customers for your product.
Marketing is a long term forward looking process whereby you determine how
you're going to package and brand your product and design it to appeal to the target
market you seek to capitalize on.

Successful marketing involves significant groundwork in terms of clearly studying

your target market. What are the needs of your customers? How will you address
them? What is most important to them in terms of how much emphasis you should
put on different aspects of your product or service? The needs and drivers for
individuals in their early 20's differ greatly from individuals in their early 50's, so
taking the time to assess your target market comprehensively is important. The
branding and messaging you'll need to reach different groups will vary, and to
ensure a successful advertising campaign you need to ensure you effectively
communicate to these groups.

Advertising

Advertising refers to the process of actually promoting your product or service to

the marketplace. Ensuring that you are effectively getting your product known to
your target customers and emphasizing the benefits to them is important when it
comes to driving successful sales. So where marketing involves the ground work of
branding and researching the needs of your target market, advertising is the process
whereby you actually communicate with your target market.

Advertising campaigns can be communicated through numerous venues,

television, radio, or online for example, and part of your marketing research will be
identifying the most effective venues for your target audience. A product could
have a terrific online campaign, but if your market research has identified seniors
as the key target market that would not likely be the most effective use of your
advertising dollars. For many target customers social media is becoming an ever
more popular focus for advertising campaign as it can be a very inexpensive way
to reach many different users.

Advertising campaigns also evolve over time for many different reasons. Once
your products and services are in the market you'll get further information about
and likely be able to refine what your target market is. Additionally if your product
is successful different venues like television, which can initially be too costly, may
open themselves up to you. How to effectively advertise your products or services
is something that should constantly be re-evaluated (as should the market
research).

Advertising vs. Marketing

When considering both advertising and marketing it is important that you take the
time to address both aspects of selling your product comprehensively. Market
research can be done comprehensively, but if the advertising doesn't take place the
target market will never know about your product or service. Conversely, a
brilliant advertising campaign can be launched, but if it targets the market
inappropriately your product or service may not sell. Looking at both advertising
and marketing and linking the market research to your advertising will ensure your
work effectively drives the sales your business needs to succeed.

Definition and Features of Advertisement

American Marketing Association has defined advertising as “any paid form of non-
personal presentation and promotion of ideas, goods and services of an identified
sponsor.”

Advertising is the dissemination of information concerning an idea, product or

service to induce action in accordance with the intent of the advertiser.

ADVERTISEMENTS:

According to William J. Stanton, “Advertising consists of all the activities

involved in presenting to a group a non-personal, oral or visual, openly sponsored
message regarding a product, service or idea; this message, called an
advertisement, is disseminated through one or more media and is paid for by the
identified sponsor.”

Advertising is any non-personal promotion of ideas, goods or services of an

identified businessman known as sponsor. The message which is presented or
disseminated is known as “advertisement”. The costs of advertisement are borne
by its sponsor.

The features of advertising are as follows:

1. It is a paid form of communication:

Advertisements appear in newspapers, magazines, television or cinema screens

because the advertiser has purchased some space or time to communicate
information to the prospective customers.

2. It is a non-personal presentation of message:

There is no face-to-face contact with the customers. That is why, it is described as

non-personal salesmanship. It is a non- personal form of presenting products and
promoting ideas and it supports personal selling. It simplifies the task of sales-
force by creating awareness in the minds of potential customers.

3. The purpose of advertising is to promote idea about the products and services of
a business:

It is directed towards increasing the sale of the products and services of a business
unit.

4. Advertisement is issued by an identified sponsor:

The identity of the businessman issuing the advertisement must be disclosed. Non-
disclosure of the name of the sponsor in propaganda may lead to distortion,
deception and manipulation. Advertisement should disclose the sources of opinions
and ideas it presents

Important Features of Advertising

1. Paid Form:

Only that attempt of the seller on which he/she has spent some money to
communicate information to the consumer is called advertising. If without
incurring any expenditure some information relating to some product or service is
published, it will not be called advertising.

For example, if an editor of some magazine, on his own, publishes news about a
particular product, it will convey to the consumers necessary information regarding
that product but no expenditure has been incurred by the seller for this publication.
As such, it cannot be called advertising. It may be called propaganda or publicity.
Thus, any information about a product communicated free of cost cannot be termed
as advertising.

2. Impersonal Presentation:

Advertising is non-personal presentation of information. In other words, the

advertiser and the consumer do not come into personal contact. Advertising is a
monologue and not a dialogue.

3. Speedy and Mass Communication:

Advertising is a speedy medium of communication. Besides being speedy, its

operational area is very vast. In other words, it reaches millions of people
simultaneously.

4. Identified Sponsor:

Another feature of advertising is that its sponsor can be identified.

Whenever we come across an advertisement, its sponsor is easily
recognized. Obviously, its sponsor can be either the seller or the
producer of that product or service. If due to some reason it is difficult to
identify the sponsor, then that information cannot be called advertising.
It will be called propaganda or publicity.
 COMPANY PROFILE

WELCOME TO BIOGENIX INC. PVT. LTD.

A reliable partner for offering a wide range of Laboratory Equipments, Diagnostic

Test Kits, Diagnostic Rapid Test Kit and Immunoassay Products...

"We are a distributor of a renowned company Ray Biotech from USA. We deal in
All Range of Cytokines elisa products"

About Us

Medical test, itself is an undeniably important procedure, that takes place at some
point of time in everyone's life. To point out the root of infection or disease, these
medical tests are done. In order to prepare a report for doctors that further helps
them in treating the problem that a patient is suffering from. These medical tests
are only possible with the help of experts, and Immunoassay Products. The
importance of these products is well understood by us. We, Biogenix Inc. Pvt.
Ltd., are an eminent Manufacturer and Exporter of the best
quality Immunoassay Products. Including kits for Diagnostic Test Kit, Diagnostic
Rapid Test Kit, Hormone Tests, FSH Tests, Malaria Tests and Biochemistry
Tests to name a few, in our range of products, has allowed us to help a large
number of medical facilities.
Offered products are demanded in large number by dispensaries, diagnostic
centers, hospitals, etc. To fulfill these large demands, associating ourselves with
the the most advanced machines and dexterous experts has helped essentially.
Widely, we are appreciated for quality we offer on the Diagnostics Kits &
Equipment, and the accuracy of results that our test kits give is also highly praised.
Further, the commendable Laboratory Instruments we offer to the national and
international medical facilities are procured from highly praised manufacturers
such as:-

 LDN, Germany

 Epitope, USA

 Diametra srl, Italy

 Diapro srl, Italy

 UBI, USA

 Biomerica, USA

 Auto Bio, China

 Elab Science, China

Team of Experts

We are backed with a team of well trained experts which with its knowledge and
expertise in this domain, helps us to excel in each department of our facility. Their
dedication towards the goals and immense efforts towards completing the allocated
objectives allows us to be productive thoroughly. Apart from this, we very well
understand that these experts need regular training, so as to enhance their
knowledge towards the products we are making and the industry we are serving.
This helps the experts of our production unit in manufacturing modified
Diagnostics Kits & Equipment to suit the ever changing demands.
Clientele

Clients with whom our company has made relationship with, are the root behind
these achievements that resulted in the growth of our organization through the past
decade. Satisfying our customers has been of the top priority for us, which we
achieve by making the equipment and kits of an outclassing quality. This
contentment of the customers has also resulted in retaining their trust towards our
company. Given below are the names of some of the most reputed medical
facilities to whom we offer our products:-

 AIIMS, New Delhi  Command Hospital, Lucknow

and Chandigarh
 AIIMS, Rishikesh
 KGMC, Lucknow
 AIIMS, Bhopal
 RML Hospital & Research
 Army Hospital, New Delhi
Institute, Lucknow
 Banaras Hindu University,
 Lifecell, Chennai
Varanasi
 CMC, Vellore
 PGIMER, Chandigarh
 Dr. Lal's Laboratory, New
 SGPGI, Lucknow
Delhi
 JIPMER Pondicherry
 IVRI, Bareilly
 SKIMS Srinagar J&K
 Choitram Hospital, Indore
 AFMSD, Lucknow
 Endocrine Lab, Ahmedabad
  AFMSD, Pune  Maulana Azad Medical College,
New Delhi
 Safdarjung Hospital, Delhi
 LNJP Hospital, New Delhi
 Indra Diagnostic Centre,
Lucknow

Biogenix Inc. Pvt. Ltd., has backed a large number of medical facilities
throughout the globe with its best quality Diagnostics Kits & Laboratory
Equipment. Our inception dates back to 2007, and all this time of our business
activities has been highly appreciated throughout the globe as a large number of
our pathologists and doctors have been highly satisfied with the usage of our
products. Operating from Lucknow (Uttar Pradesh, India), we are highly praised
by national as well as international medical facilities for our role as a prominent
manufacturing and trading company. This renomination of our company has been
possible due to our business policies and work ethics, that are to manufacture the
products of the utmost quality and highly satisfy the clients with our business
dealings.
Product Range

We, Biogenix Inc. Pvt. Ltd., are offering Immunoassay Products For:-

 Chemical Tests  Diabetes Marker Tests

 Biochemistry Tests  T3 Tests

 Rapid Test  T4 Tests

 Hormone Tests  TSH Tests

 Infectious Disease Tests  LH Tests

 Tumor Marker Tests  FSH Tests

 Autoimmune Disease Tests  Prolactin Tests

 Thyroid Tests  PSA Tests

 Steroid Tests  Malaria Tests

 Cardiac Marker Tests  Dengue Tests

 Allergy Tests  Typhoid Tests

In addition to our test products we offer ELISA Kits, Rapid Tests Equipment,
Serology Equipment Plasticwares and Clinical Biochemistry whose products
are mentioned in below tabulated form:
Biochemistry

 Ada  Cholinesterase  Magnesium

(BTC)
 Albumin  Microprotein
 CK-MB
 Alkaline Phosphatase  Phosphorus
 CK-NAC
 Amylase  Potassium
 Creatinine
 Ammonia  Sodium
 Gamma Gt
 Bilirubin Total  SGPT
 Glucose
 Bilirubin Direct  SGOT
 G6pd
 Bilirubin Total &  Total Protein
(QUALITATIVE)
Direct
 Triglyceride
 Hba1c Quantitative
 Calcium
Turbimitry  Urea 2 Color
 Chloride
 HDL Direct  Urea U.V.
 Cholesterol LS
 LDL Direct  Uric Acid
 Cholesterol Total
 Lactate
 Cholesterol LDL
 LDH-P

 Lipase
Rapid Test Kit

 Chikungunya IGM  H. Pylori AG  Toxoplasma

Combo Rapid Test Rapid Test IGG/IGM (S/P)
Rapid Test
 Chlamydia AG  Hav IGM Rapid
Test  Toxoplasma
 Cholera AG Rapid
IGG/IGM (S/P)
Test  Hev IGM Rapid
Rapid Test Strip
Test
 Cmv IGG/IGM Duo
 Troponin I Rapid
Rapid Test  Leishmania Ab
Test
Strip
 Dengue AG Rapid
 Typhoid IGG/IGM
Test  Leishmania
(S/P) Rapid Test
IGG/IGM Combo
 Dengue IGG/ IGM
Rapid Test  Trop T
Combo Rapid Test
 Leptospira  Urine Strip
 Duo Dengue AG +
IGG/IGM Combo (Glucose)
IGG/IGM Rapid Test
Rapid Test
 Urine Strip
 Filariasis IGG/ IGM
 Malaria PF/PV AB (Protein)
Rapid Combo Card
Combo Cassette
 Urine Strip
 Fob Rapid Test
 Malaria PF/PV AG (Ketone)
 Ghonorrhea Rapid Test
 Urine Strip 2
 H. Pylori AB Combo  Malaria Pf/Pan AG Parameter
 Rapid Test Cassette  Urine Strip 5
Parameter
 PSA 4-10 Semi
Quantitative  Urine Strip 10
Parameter
 Pregnancy Card

 Pregnancy Strip

 Syphlis Card

Elisa Kits

 Alpha-Fetoprotein  Estradiol  Prolactin

 AMH (Anti  Ferritin  PSA Total

Mullerian Hormone)
 Folic Acid  Rubella IGG
 Anti CCP
 Follicle  Rubella IGM
 Anti Nuclear Stimulating
 Thyroglobulin
Antibody Hormone
 Thyroid Hormones
 Anti Phospholipid  Free PSA
- T3 Total
 Beta HCG  Free T3 Hormones
 Thyroid
 Cancer Antigen 15.3  Free T4 Hormones Hormones- T4
Total
 Cancer Antigen 19.9  Hepatitis A Virus
IGG  Thyroid
 Cancer Antigen-125
  Carcinoembryonic  Hepatitis A Virus Hormones- TSH
Antigen IGM
 Thyroid Peroxidase
 Cardiolipin  Hepatitis E Virus
 Total IGE
IGG
 Cortisol
 Toxoplasmosis-
 Hepatitis E Virus
 Cytomegalovirus IGG
IGM
IGG
 Toxoplasmosis-
 Herpes Simplex
 Cytomegalovirus IGM
Virus 1/2 IGG
IGM
 Vitamin B12
 Herpes Simplex
 Dhea Sulfate
Virus 1/2 IGM  Vitamin-D
(DHEA-S)
 Luteinizing
 Double Standard
Hormone
Nuclear Antibody
 Progesterone

Immunoturbidimetry Kits

 Antistreptolysin O  D-Dimer  IGM

Titer (ASO)TURBI
 Ferritin  IGG
 C-Reactive Protein
 Hba1c  Lipoprotein
(CRP) Turbi
 IGA  Microalbumin
 Rheumatoid Factor
(RF) Turbi  IGE
  Cystatin C

Serology

 Antistreptolysin O  Rheumatoid Factor  Venereal Disease

Titer (ASO Latex) (RF Latex) Research
Laboratory
 C-Reactive Protein  Rapid Plasma
(VDRL)
(CRP Latex) ReAGin (RPR)
 Widal (Slide Test)
 T. Palladium
5*4 Ml
Antibodies
(TPHA)

Key Facts

Nature of Business Manufacturer, Exporter, Importer and

Supplier

Year of Establishment 2007

Company Branches 03

No. of Employees 48

No. of Engineers 04
No. of Production Units 02

Monthly Production Capacity Varies with products

Working as an Original Equipment Yes

Manufacturer

Warehousing Facility Yes

Import Percentage 60%

Import Turnover INR 8 Crores

Banking Partner Bank of Baroda

Annual Turnover INR 13 Crores

 OUR PRODUCT

ELISA Kits

Our company provides trusted Elisa kits reckoned in the market for high level of
accuracy in results. These Enzyme-linked immunosorbent assay (ELISA) kits are
popular to be used in different research areas. They are used in neuroscience,
immunology, and other fields of medical and research to conduct a range of tests.
They are highly sensitive and specific solutions developed to be used in different
immunoassay problems. They are fully validated, hygienic and ready-to-use for a
wide range of targets. With detailed protocols, they ensure to provide professional
information about different assay procedures, etc

Serology Kit

Serology Kits are used for diagnosing any illness or infection in patient. They are
dependable and ready-to-use kits that can easily and properly identify the
antibodies in the serum for providing clear and concise results. They are
formulated to provide instant and precise results for ensuring to provide the best
medical treatment to the patients. They are provided in high-quality packaging in
bulk quantities according to the needs to provide precise results in no-time. These
Serology Kits are used for detecting infections, blood types, rheumatic illnesses by
checking antibodies in plasma serum.
Rapid Test Kit

We provide different Rapid Test Kits such as Pregnancy Cards, Dengue Test Kit,
Malaria Test Kit, Filaria Test Kit, Uricheck, etc. These kits are formulated to
provide accurate results instantly. They are designed to be used where preliminary
screening test result is needed. They are ideal to be used in resource-limited
settings. These high quality Rapid Test Kits are quick and easy to use. They are
based on immuno-chromatographic, agglutination, immuno-filtration and other
techniques. In addition to this, they are suitable to be used by anyone as they need
little or no additional equipment.

Rapid Test Kit

We provide different Rapid Test Kits such as Pregnancy Cards, Dengue Test Kit,
Malaria Test Kit, Filaria Test Kit, Uricheck, etc. These kits are formulated to
provide accurate results instantly. They are designed to be used where preliminary
screening test result is needed. They are ideal to be used in resource-limited
settings. These high quality Rapid Test Kits are quick and easy to use. They are
based on immuno-chromatographic, agglutination, immuno-filtration and other
techniques. In addition to this, they are suitable to be used by anyone as they need
little or no additional equipment.
Liquid Chemicals

Our company provides a vast range of Liquid Chemicals such as Deionized Water,
JSB Stain Solution, Glycerol, WBC Diluting Fluid, IPA Isopropyl, Hydrochloride
Acid, Sodium Hydrochloride, JSB Stain Solution B, RBC Diluting Fluid, etc. We
offer pure, high-quality and concentrated solution for conducting different medical
and research processes. They are used in various programs from research to
pharma to therapeutic sectors. They are highly sensitive chemicals ideal to provide
effective and quality results without high level of accuracy. These Liquid
Chemicals are provided in premium packaging materials to ensure to keep them
safe and secured during transit.
Biochemistry Kit

Microscope Slide
 Microscope Slide

Product Description

A Microscope Slide is available in 75 by 26 mm dimension with 1 mm thickness

for holding objects efficiently for examination under a microscope. It is used
together with a cover slip or glass that is placed over the specimen. It comes with a
higher density of binding site to enhance the adhesive forces between the anchored
tissue and the slide. This Microscope Slide is also ideal for immunohistochemistry
as it can tolerate harsh chemicals without any background staining. In addition to
this, it also ensures no tissue artifact, or specimen loss.

Glucose & Protein Urine Test Strips

 SALES PROMOTION

Sales promotions are action-focused marketing events whose purpose is to have a

direct impact on the behavior of the firm’s customers. There are three major types
of sales promotions: consumer promotions, retailer promotions, and trade
promotions. Throughout the world, sales promotions offered to consumers are an
integral part of the marketing mix for many consumer products. Increasing
importance of sales promotions as a percentage of the total advertising and
promotional budget and increasing at a rate of 12 percent per year over the last 10
years, studies that strive to understand the impact of sales promotions on
consumers are very important. An advertising strategy is a campaign developed to
communicate ideas about products and services to potential consumers in the hopes
of convincing them to buy those products and services. This strategy, when built in
a rational and intelligent manner, will reflect other business considerations and
objectives as well. Advertising strategies focus on achieving three general goals 1)
promote awareness of a business and its product or services; 2) stimulate sales
directly and "attract competitors' customers"; and 3) establish or modify a business'
image.

What is sales promotion? Also briefly discuss its merits & demerits.

Ans. Sales promotion is temporary incentives that a company uses to promote its
product resulting in inducing the customers to buy now. Sales promotion is one of
the crucial aspect of promotion mix.

According to William J. Stanton: ―Sales promotion is an exercise in information,

persuasion and influence‖.

Sales promotion comprise of:

1. To encourage customers to buy one brand over another by introducing samples,
coupons, discount etc.

2. To obtain trial purchase from customers

3. To stimulates sales force enthusiasm 4.To reinforce advertising

5. To outperform competition etc.

Merits of Sales promotion:

1. Promotion places the employees in a position where an employee's skills and

knowledge can be better utilized.

2. It creates and increases the interest of other employees in the company as they
believe that they will also get their turn.

3. It creates among employees a feeling of content with the existing conditions of

work and employment.

4.It increases interest in acquiring higher qualifications, in training and in self

development with a view to meet the requirements of promotion.

5.Promotion improves employee morale and job satisfaction. Ultimately it

improves organizational health.

6.It creates awareness of the existence of the product or service offered.

7.It can provide customers with information about the product that may be useful
to them, and therefore produces an incentive for them to buy your product, or use
your service.

8. It also helps increase the market share.

Demerits:

1. It can be quite costly depending on the advertising medium we use; obviously

TV and radio advertising tend to be more expensive than advertising on notice
boards or on eBay.

2. Promotion also tends to be competitive. So no matter how much one spend on

advertising, if we've got many competitors (substitute products or services), and
their methods are more effective, then our promotion campaign may not work.

3. It asks for more responsibility and more stress; higher expectation demand for
more working hours.

4. It is not necessary that all the sales promotional measures will be able to bring
in desired results.

5. It is an expensive technique.

6. Promotional measures may have short-term impact on the customers.

Explain the various ways of sales promotion.

1.Buy back allowance: Dealers pay the buyback allowance at the first purchase of
the products. This allowance can be used at the next consequent purchases like
first allowance at the second purchase, second allowance at the third purchase
and so on. Therefore, it becomes a continuous activity and helps to retain the
retailers or the wholesalers.

2. Buying allowances: Manufacturers allow discounts on the purchase of minimum

quantity of products for specific period of time. It is paid in cash or can be
 reduced for the purchase amount. Manufacturers must clearly tell the dealers
about the minimum quantity to be purchased. Producers use this technique for
introducing a new product in the market or clearing off the existing stocks. It is
generally a short term offer.

3.Free goods: Manufacturers provide free products on purchase of the specific

quantity of goods to the dealers. So, these dealers are able to get some products
free of cost.

4. Merchandise allowance: The manufacturers and the intermediaries agree upon

compensating the advertising efforts undertaken by them on the partial basis.

5.Cooperative advertising: Cooperative advertising is where the manufacturer pays

the advertising allowance to the middlemen for the products purchased by them.
This is generally done on a long term contract where the producers agree to pay
the advertising allowance. This is to induce the dealers to buy more of products.

6. Sales contests: Dealers are often invited by the manufacturers to participate in

the sales contests conducted especially for them. This helps to encourage the
intermediaries to increase sales at their levels. Manufacturers can offer free
product supply, cash allowances, different kinds of incentives and gifts under this
programme to the dealers.

7. Free foreign tour: Dealers are given specific sales target to be achieved in a
certain period of time and on achievement of these targets they are gifted free
foreign tour. This helps to motivate the dealers to increase their sales and get this
incentive.
 TYPES OF SALES PROMOTION

Promotional of internal organization concern with the steps to be taken for sound
promotional programs. The elements of internal promotion are as follows-

1) Approval of promotional philosophy:- The success of a promotional program

depends on the attitude of the top management. There for a promotional program
requires the approval of the top management. The manager has to make a cost
profit analyses so that top management appraise him about the profitability of
program.

2) Product department for marketing:- Quality of a product is responsible for the

success of sales promotion program. As the customers are quality conscious and
he always makes a comparison with that of competitors product before taking
the final decision of purchase. Therefore the product manager should
continuously work on improving the features of the product.

3) Coordination with advertising department:-It is the advertising department that

make the ground for the sales by giving product knowledge among the
distributers as well as potential customers. When the frequency of the
advertisement is reduced then the sales promotion‘s frequency starts increasing.
Therefore a co-ordination has to be made with the advertising department.

4) Coordination with sales department:- Sales promotion program can be

successful if a proper exhibition is established with the sales department. Its
includes arranging and organizing sales meetings and conferences, organizing
contest, sales exhibition, travelling to sales personal etc.
What are the different sales promotional tools useful for dealers?

These promotional tools are targeted to marketing intermediaries such as

Whole salers, retailers, distributers or agents who stock the manufactures

products for sale sales promotion directed at the trade helps push a product into the
distribution channel until it reaches customers.

Here are the most common types of trade promotion tools:-

1) Point of purchase displays:- A manufacturer designed display distributed to

retailers who use it to draw the customers attention to product promotions is
called as pop displays. Pop includes passion racks, display cartoons, banners,
signs, price cards, mechanical product, dispenses etc.

2) Incentives: - Incentives to members of trade include awards in the form of

travel, cash bonus, gifts etc. another form of trade incentive is referred to as
push money. Push money is carried out through a program in which retail sales
people are offered a monetary reward for featuring a marketers brand with
shoppers.

3) Trade allowance: - Trade allowance is probably a discount or deal offered to

retailers or whole sales, to encourage then to stock display the manufacturers
product Types of allowances offered-

(i) Advertising allowance: - In this method, actual expenses or certain

percentage to purchases made, are not met by the producer. Instead an
allowance is paid to the dealer toward advertising expenses.
 (ii) Promotional allowance: - Certain items which help in advertising and
publicity are distributed to retailers free of cost. Such novelties include
pens, calendars, paper weights, bill books, bags, diaries, memo pads etc.

(iii) Display allowance:- The producers who don‘t provide display

material to dealers, provide them with display allowances.

(iv) Buying allowance/Price off allowance:- The price of allowance is

given on purchase made during a specified period of time directly from
the producer. This encourages larger purchase from the producer.

(v) Brand deal allowance: - Such allowances are given to those middlemen
who deal exclusively with a single brand.

(vi) Buy back allowance:- It is a sum of money given to the reseller for
each unit brought after an initial deal is over.

4) Sales training program: - Another form of dealer promotional tool is sales

training program. Salesmen at the retail level need to be trained about the
features of the product, benefits, advantages of different models/brands etc.
cosmetics, appliances, computers, electronic products are examples for which
consumer rely on trained sales staff.

5) Trade shows:- Trade shows are certain activities designed where

manufacturer can display their products to current as well as prospective buyers.
They are attended by retailers to distributers and involve demonstrating
products, identifying prospectus and gathering customers. Trade shows are
particularly valuable when a new product is introducing in to the market many
companies use trade shows to entertain key customers and to develop and
maintain relationship with them.
6) Cooperative advertising:- In this method the dealer and the producer both jointly
share the expenses of advertising. Either the producer may bear a fix amount of
the advertising expenses or certain percentage to the purchase made by the
dealer in a year.

7) Free merchandise:- Free merchandise is sometimes offered to resellers who

purchase stated quantities of the same or different products.

8) Sales contests:- Sales contests are organized for dealers also on the basis of
highest sales achieved by dealers during a specific time period. Prizes,
certificates are issued to such dealers and such contest hence motivates the
dealer for longer purchases.

9) Retailer kits:- Materials that support retailers selling efforts are retailer kits. The
kits contain supporting information such as detailed product specification; ad
slicks- print ads that are ready to be sent to the local print media.

10) Advertising and display aids:- Some of the aid are –

(i) Local news paper advertising:- Advertisements in local news paper

specifying name, contact no. and address of dealers, helps the people to
know about the dealers in town.

(ii) Direct mail advertising:- In this the producer sends various advertising
and publicity material to dealer by mail. This includes reply cards,
calendars, diaries, folders, house magazines, order book, hand bills etc.

(iii) Outdoor advertising:- Producers provide banners, sign boards, posters,

bill boards, holdings to dealers at their own cost.
 (iv) Organizing fashion shows:- Some companies organize fashion shows in
big cities to promote their products. This is also an encouragement to
dealers.

11) Sales assistance:-

(i) Building up sales plan:- Producers extend help and express knowledge
to wholesalers and retailers in building up sales plan, formulating
strategies & sales program. This helps the dealers to increase their
selling skills.

(ii) Sales meetings: - Producers organize sales meeting for distributers to

provide knowledge about new products, sales policies and sales plan.

(iii) Buy back guarantee: - Producers sometimes gives buy back guarantee
to dealers for the goods that have not been sold by them. Thus goods
are sold to dealers on sell or return condition.

(iv) Special trade terms:- Middlemen/Dealers are encouraged by special

trade terms which may be related to price, payment, credit, allowance,
financial assistance balance of stock etc.

(v) Special services:- Producers also offer special services to dealers which
include packaging, categorization of products, dealer listing.

(vi) Credit facilities:- Producers provide short term credit facility to

dealers to motivate them to have maximum stock of the goods.

12) Management assistance:- It includes –

(i) Providing knowledge about management techniques.

 (ii) Advice towards policy matters. (iii)Guidance in setting up internal
organization. (iv)Sales management process.

What are the different tools of sales promotion for consumer promotion?

This sales promotion is aimed at final consumer or users. Consumer sales

promotion used by retailers are aimed at attracting customers to specific locations.
The consumer promotion tools are-

1) Sample-Samples are offer of a trial amount of a product generally 84%

consumer package goods marketers use sampling as part of their promotion
strategy. by offering free samples , a company gains entry into that market ,
soaps

, detergents , toothpastes, shampoos, conditioners are examples of few products

that are normally popularized through free samples. Free samples are distributed
for several reasons: To stimulate trial of a product to increase sales volume in
the early stages of PLC, to obtain desirable distribution. The samples can be
distributed through in store sampling (food products and cosmetics), door to
door sampling, mail sampling, (through postal service), news paper sampling,
mobile sampling, on package sampling, professional sampling(drugs).

2) Premiums: - Premiums are goods offered either free or at low cost or an

incentive to buy the product. Premiums are offered as bonus, prize, gifts or other
free offers. Premium can be used to boost sales to attract competitor‘s
customers, introduces different products.
E.g.:- Aqua fresh toothpaste- At the launching of Aqua fresh toothpaste offered
two tubes at the price of one. Colgate offered 125gm. tube for the price of 100
gm.

Santro- book year Santro today & take home a world space Hitachi digital radio
receiver worth Rs. 4990/- free.

3) Contests:- Contests of various kinds constitute widely used sales promotion

tools. There are consumer contest which are open for all, consumer contest are
given wide publicity to attract the participation of the widely scattered consumer
base. consumer contest take a variety of forms- Quiz contests, beauty contest,
car rallies, scooter rallies, suggesting a logo etc. Contests can be divided in to 2
broad categories- Skill competition & sweepstakes. One form of sweepstakes is
a game & scratch off cards with instant winners & prizes are an important
promotional tool. E.g.:

(i) Nescafe shake contest – Nescafe shake contest offered Rs. 5 lacks as total
prize money with Rs. 1 lack for the first prize. The total number of prizes
ran to 21000. The contest had a specific objective to make consumers
aware of Nescafe as a cool summer drunk in addition to this traditional
image of a hot beverage.

(ii) Cadbury‘s family contest- Cadbury announced fabulous prizes round the
world, economy class are ticket for two adults & two children plus Rs. 1
lack in prize money. The participant has to submit a minimum no. of
cadbury‘s wrappers & coin a jingle to participate in the contest. The
campaign helped to increase the sales.
 (iii) Lakme – Create your own shade contest – Lakme lever held the to elle
18, Create your own shade contest for the target audience of elle 18 range
of colors cosmetics & fragnances. The participants were required to
create own shades. The winner created a sparkling blue shade & later
Lakme launched the new shade in the market.

(iv) Pepsi contest for children – Pepsi ran a contest among children to
promote its potato chips brand ruffles. Nearly 500 children from a school
were collected 30 of them were picked to speak for a minute the winners
were given ruffles. Pepsi had covered 250 schools and 125000 students
across the country spending Rs. 2 lacks only.

4) Demonstration:- Companies resort to product demonstration for sales

promotion especially when they are coming up. With a product new to the market.
In India products like beverages, washing powders, electronic product have
utilized product demonstration as a tool of sales promotion. it may be-

(i) Demonstration at retail store.

(ii) School demonstration. (iii)Door to door demonstration. (iv)Demonstrations to

key people.

5) Coupons:- Coupons are certificates which offer reductions to consumers for

specified items. Coupons distributed through newspaper, magazine advertisement
or by direct mail. Coupons facilitates the customer to exploit the bargain and they
also serve as an inducement to the trade for stocking the items.
Types of coupons-

(i)Instant redemption coupon- Consumers can immediately redeem the

coupon.

(ii) Bonus back coupon- Coupons can be placed inside packages so that
customer can‘t redeem them quickly.

(iii) Scanner delivered coupon- Firm can issue coupons at the cash
register. These are triggered by an item being scanned.

(iv) Cross ruffling- It is the placement of a coupon for one product on

another product. E.g. a coupon for an onion sauce placed on a package
of potato chips is a cross scuffling coupon.

(v) Free standing inserts coupons can be delivered to consumers through

news paper

(vi)In store couponing- Coupons are distributed in a retail environment.

6) Trade fairs and exhibitions they form one of the oldest practices of sales
promotion. Trade fair & exhibition provide companies with the opportunity for
introducing and displaying their products. This brings the company‘s product and
the consumers direct contact with each other. Trade fairs have become a handy and
effective tool of sales promotion. Orders and enquiries worth billions get generated
at international trade fairs.

7) Discounts and price of E.g. 20% off on levis 10% on Tanishq.

8)Free gifts/Gift cards- Companies also give gifts to consumers, dealers and key
people. These gifts include pens, diaries, table, decoration. Gifts normally carry the
company‘s name and logo. The gifts are intended to create goodwill towards the
company.

9) Exchange schemes/Money back offers- This is the latest sales promotion tool in
consumer disables market. E.g. Akai exchange scheme- Bring in your old colour
TV with remote. Videocon money back offer.

Philips- 5 in 1 offer.- Philips TV, 2 in 1, Mixer, grinder, rice cooker at an attractive

price. Sponsoring the games and teams- Many companies like reliance, Pepsi,
Pantaloons, Maruti sponsor different games and sports in the country and abroad.

What are the tools of sales promotion used for business and industrial goods?

Sales promotion is targeted for business and industrial goods also Industrial
products differ with that of consumer goods. The tools which are used are-

1) Trade shows:- The industrial products are displayed and demonstrated to the
members of trade and industry. The representatives explain about the products. The
trade shows can be useful for smaller firms which can‘t much in advertising and
also salesman can make for more contacts. Trade shows are important rules for
reaching potential wholesalers & distributor‘s for a company brand.

2) Business gifts:- These gifts are given as a part of building and maintaining a
close working relationship with suppliers business gifts may include small items of
jewellery, watch, electronic items, expensive trips.

3) Trial offers:- Trial offers are particularly well suited to the business and
industrial market. Trial offers provide a way for buyers to lower the risks of
making a commitment to one brand over another. Trial offer is a good way to
attract new customers who need a reason to try something new.

4) Frequency program:- high degree of travel associated with many business

professionals ake frequency programs and an ideal form of sales promotion for
the business and industrial markets. This can be used in airline, hotel and other
industries.

5) Coupons: - Coupons are used in business to business sector. Coupons must reach
the hands of a purchasing against or someone who has the authority to make
decision.

6) Contest and sweepstakes: - As like in consumer promotional methods. Customer

methods. Business buyers are also interested in winning prizes as are customers
in other situations.

7) Sampling:-- Sampling is an excellent method to encourage a business to buy

a product. E.g. producing a sample in the area of process materials has the
advantage of giving the engineers an opportunity to analyze the materials to see if
it meets their standards. Through analysis they may find that the material is
actually superior to the product they currently use.

8) Bonus picks: - offering a prospective a bonus pack may attract new users as price
is a negotiated item in our B2B sector price of discount can be offered by vendors
seeking to obtain a new business contract.

9) Other tools:- They may include demonstrations, free training, warranties, credit
faculties maintenance services, films, publicities and audio visual aids.
 PROMOTIONAL ANALYSIS

Written by: Swati Phanse

Consumers in today's dynamic economy have high expectations, and their behavior
is unpredictable. It is critical to understand what promotional offers are presently
having the highest impact. Promotional analysis is a technique of evaluating
success or failure of a promotion using past time series data. It can be understood
as discovering a correlation between sales patterns and marketing efforts which
includes promotions offered and advertising. The objective of promotional analysis
is to help a retailer understand the impact of past promotions and hence formulate
future strategies which could be applied and adapted to produce profitable results.

Types of Promotions

"Promotions" in any industry is a vital ingredient of marketing plan to retain best

customers and to attract new ones. The retail market faces increasingly stiff
competition, and is flooded with various promotional offers to drive-in traffic.
Hence, the consumer today is left with a large range of promotions to choose from
in almost all the product categories. To list a few:

1. Quantity/Product concession

1) Buy one get one free

2) Innovative cross-sell and up-sell strategies

3) Free samples to test new product

 4) Offering promotions on particular day of a week to drive sales

5) Pseudo personalized promotions targeting particular customer segment

(students/promotions linked to age, height, gender, profession)

2. Price discount

1) Some per cent off per item

2) Fixed amount off per item

3) Discount vouchers

3. Ads

1) On-line/e-mail coupon

2) Mobile coupon

4. Shipping promotions

1) Free delivery of product

2) Money off on delivery item by means of a selected ship mode

These are some of the promotions that may lure customers to purchase a product.
In spite of such attractive offers, there is a high probability that a customer may not
avail or take advantage of every offer that comes their way.
What retailers should know before launching a promotion?

Mere sales are not enough; the effectiveness of a promotion offered should be
measured in order to draw more profit out of the offer given to customers. In order
to do so, customer behavior should be analyzed. Retailers often fail to realize that a
consumer can have their own parameters like age, gender, requirement, income
and preference to evaluate a promotion.

Understanding the kind of promotions to be launched plays a key role to category

growth. Referring to the past promotions, retailers should bear few points in mind
before launching any promotion:

1. How frequently should a promotion be launched?

2. Which categories respond the most to which promotions?
3. What product combinations can be promoted together?
4. To promote the entire category or to concentrate on only key products?
5. What sales rise can be estimated at each concession level?
6. How does a retail price change in product affect traffic and overall revenue?
7. What promotional plan to be designed to meet definite sales and volume
targets?
8. Do price increase/decrease on some items negatively impact sales of other
items?
9. How to drive new traffic to stores?
10. Based on demographics, how to vary promotional strategies across various
stores?
11. What are the most effective promotions to reach target customers?
 Once a retailer understands the direct-indirect impact of promotions, they can:

1. Increase profit by optimizing coupon usage, offer personalized packs to

targeted customers, decide on concession prices, buy-one-get-one schemes,
displays, ads etc

2. Add to revenue by avoiding unnecessary price reductions and discounts

Tailored promotions: Designing sets of offers that are collectively more effective
than individual offer depending on segmentation, analysis of shopping behavior,
demographic information

The idea is to provide the right customer with the right promotions.

Effectiveness of a promotion

Promotion tactics aim to stimulate customer interest in a product. It was a common

notion at some point in history that the nature and degree of promotional activity is
driven by market knowledge with a blend of experience and gut feeling. This was
also true. However, since the competition in market has become increasingly stiff,
the promotions launched by a retailer needs to be unique, innovative and designed
to bear fruitful results. Retailers are being confronted with painful realities
regarding the effectiveness of current promotions, as the type of promotions that
have done well for them in past may no longer be as effective. Almost all retailers
use offers that they are unsure will result in a positive ROI (Return On
Investment). This has resulted in degradation of customer confidence.

Promotions are expensive as there are certain hidden costs such as advertising cost
and loss of revenue when discount is offered to customers. Hence, it becomes
 mandatory to evaluate promotional performance and execute it well. Moreover,
consumer expectation has increased from day-to-day stuff to lifestyle goods with
subject to some promotional offer at some point of time. Thereby it is very
important for a retailer to stand up to customer expectations and offer them with
innovative promotions as purchasing decisions depend on this factor. It thus
becomes essential to use historic information in order to study customer behavior,
sales pattern during past promotion and product performance.

How to do promotional analysis?

Econometric techniques such as forecasting, time series analysis, intervention

analysis, predictive analysis, what if scenarios, marketing mix model and other
techniques are used to analyze data to produce powerful insights and decide on
promotion and pricing strategy.

1. Retailers capture detailed data customer-wise which helps in giving insight not
only about a product and their brands purchased but also the socio-demographic
nature and buying pattern of a customer. Various parameters can be judged using
such approach.

1) Whether the promotion targets new customers

2) Repurchase history

3) Cannibalization

4) Shift from competitor brand/product

 5) A loyal customer who would have purchased the product even without the
promotion.

In this case the retailer tends to lose margin. Such loyal customers should not be
considered in analysis.

This above information can be clubbed and hence can be compared with sales lift
data to track performance of promotion.

2. Intervention analysis can be another way to analyze historic sales data with
respect to promotions and thus help in framing future promotions. Intervention
analysis technique rests upon historical data and judgment of a practitioner. The
end result using intervention analysis is that practitioners have better
understanding of their past promotions and hence can design near accurate
attractive future promotions.

Thus, promotional analysis means not just offering any promotion. For e.g.:
shampoo cannot be promoted with biscuits. Customers who tend to buy biscuits
lean to buy other snacks like cake, cookies etc. To promote slow moving
shampoos, a best promotion plan would be to offer them with conditioner or body
wash. In this manner we need to analyze customer behaviour, product performance
and product combination. Based on the promotional analysis, retailers can optimize
the performance of future promotions, restore normalcy in sale, clear stocks,
promote items as per the season and festival, drive profits through improved sales,
increase brand awareness as well as continue to have strong relationship with loyal
customers.
 PROMOTIONAL ANALYSIS

Written by: Swati Phanse

Consumers in today's dynamic economy have high expectations, and their behavior
is unpredictable. It is critical to understand what promotional offers are presently
having the highest impact. Promotional analysis is a technique of evaluating
success or failure of a promotion using past time series data. It can be understood
as discovering a correlation between sales patterns and marketing efforts which
includes promotions offered and advertising. The objective of promotional analysis
is to help a retailer understand the impact of past promotions and hence formulate
future strategies which could be applied and adapted to produce profitable results.

Types of Promotions

"Promotions" in any industry is a vital ingredient of marketing plan to retain best

customers and to attract new ones. The retail market faces increasingly stiff
competition, and is flooded with various promotional offers to drive-in traffic.
Hence, the consumer today is left with a large range of promotions to choose from
in almost all the product categories. To list a few:

1. Quantity/Product concession

1) Buy one get one free

2) Innovative cross-sell and up-sell strategies

3) Free samples to test new product

4) Offering promotions on particular day of a week to drive sales

 5) Pseudo personalized promotions targeting particular customer segment
(students/promotions linked to age, height, gender, profession)

2. Price discount

1) Some per cent off per item

2) Fixed amount off per item

3) Discount vouchers

3. Ads

1) On-line/e-mail coupon

2) Mobile coupon

4. Shipping promotions

1) Free delivery of product

2) Money off on delivery item by means of a selected ship mode

These are some of the promotions that may lure customers to purchase a product.
In spite of such attractive offers, there is a high probability that a customer may not
avail or take advantage of every offer that comes their way.

What retailers should know before launching a promotion?

Mere sales are not enough; the effectiveness of a promotion offered should be
measured in order to draw more profit out of the offer given to customers. In order
to do so, customer behavior should be analyzed. Retailers often fail to realize that a
 consumer can have their own parameters like age, gender, requirement, income
and preference to evaluate a promotion.

Understanding the kind of promotions to be launched plays a key role to category

growth. Referring to the past promotions, retailers should bear few points in mind
before launching any promotion:

1. How frequently should a promotion be launched?

2. Which categories respond the most to which promotions?
3. What product combinations can be promoted together?
4. To promote the entire category or to concentrate on only key products?
5. What sales rise can be estimated at each concession level?
6. How does a retail price change in product affect traffic and overall revenue?
7. What promotional plan to be designed to meet definite sales and volume
targets?
8. Do price increase/decrease on some items negatively impact sales of other
items?
9. How to drive new traffic to stores?
10. Based on demographics, how to vary promotional strategies across various
stores?
11. What are the most effective promotions to reach target customers?

Once a retailer understands the direct-indirect impact of promotions, they can:

1. Increase profit by optimizing coupon usage, offer personalized packs to

targeted customers, decide on concession prices, buy-one-get-one schemes,
displays, ads etc
2. Add to revenue by avoiding unnecessary price reductions and discounts
Tailored promotions: Designing sets of offers that are collectively more effective
than individual offer depending on segmentation, analysis of shopping behavior,
demographic information

The idea is to provide the right customer with the right promotions.

Effectiveness of a promotion

Promotion tactics aim to stimulate customer interest in a product. It was a common

notion at some point in history that the nature and degree of promotional activity is
driven by market knowledge with a blend of experience and gut feeling. This was
also true. However, since the competition in market has become increasingly stiff,
the promotions launched by a retailer needs to be unique, innovative and designed
to bear fruitful results. Retailers are being confronted with painful realities
regarding the effectiveness of current promotions, as the type of promotions that
have done well for them in past may no longer be as effective. Almost all retailers
use offers that they are unsure will result in a positive ROI (Return On
Investment). This has resulted in degradation of customer confidence.

Promotions are expensive as there are certain hidden costs such as advertising cost
and loss of revenue when discount is offered to customers. Hence, it becomes
mandatory to evaluate promotional performance and execute it well. Moreover,
consumer expectation has increased from day-to-day stuff to lifestyle goods with
subject to some promotional offer at some point of time. Thereby it is very
important for a retailer to stand up to customer expectations and offer them with
 innovative promotions as purchasing decisions depend on this factor. It thus
becomes essential to use historic information in order to study customer behavior,
sales pattern during past promotion and product performance.

How to do promotional analysis?

Econometric techniques such as forecasting, time series analysis, intervention

analysis, predictive analysis, what if scenarios, marketing mix model and other
techniques are used to analyze data to produce powerful insights and decide on
promotion and pricing strategy.

1. Retailers capture detailed data customer-wise which helps in giving insight not
only about a product and their brands purchased but also the socio-demographic
nature and buying pattern of a customer. Various parameters can be judged using
such approach.

1) Whether the promotion targets new customers

2) Repurchase history

3) Cannibalization

4) Shift from competitor brand/product

5) A loyal customer who would have purchased the product even without the
promotion.
 In this case the retailer tends to lose margin. Such loyal customers should not be
considered in analysis.

This above information can be clubbed and hence can be compared with sales lift
data to track performance of promotion.

2. Intervention analysis can be another way to analyze historic sales data with
respect to promotions and thus help in framing future promotions. Intervention
analysis technique rests upon historical data and judgment of a practitioner. The
end result using intervention analysis is that practitioners have better
understanding of their past promotions and hence can design near accurate
attractive future promotions.

Thus, promotional analysis means not just offering any promotion. For e.g.:
shampoo cannot be promoted with biscuits. Customers who tend to buy biscuits
lean to buy other snacks like cake, cookies etc. To promote slow moving
shampoos, a best promotion plan would be to offer them with conditioner or body
wash. In this manner we need to analyze customer behaviour, product performance
and product combination. Based on the promotional analysis, retailers can optimize
the performance of future promotions, restore normalcy in sale, clear stocks,
promote items as per the season and festival, drive profits through improved sales,
increase brand awareness as well as continue to have strong relationship with loyal
customers.
 OBJECTIVE OF RESEARCH

 Our first priority is to be a successful business and that means investing

for growth and balancing short term and long term interests.

 To solve the problem of sales crises.

 Use all promotion medium according to the area wise those may
attractive of biogenix inc.

 Our deep roots in local cultures and markets around the world give us
BIOGENIX INC strong relationship with consumers and are the
foundation for our future growth.

 We conduct our project operations with honesty, integrity and openness,

and with respect for the human rights and interests of BIOGENIX INC
employees.

 Building linkages between commercial sector, public sector and social

sectors.

 Lowering costs of both supply and demand creation strategies.

 Building economies of scale through investment, regulatory

improvements and incentives.

 Document new experiments.

 RESEARCH METHODOLOGY

Here we covering two type of research methodology

EXPLORATORY RESEARCH

 Search of secondary data

 Survey of expert

 Case study method

CONCLUSIVE RESEARCH

 Descriptive research

 Experimentation

PURE it

Sample size- 500

Area- Kanpur

 My questioners is based on PURE it.

Closed-Ended Question

 Do you get on well with your water filter?

 What will you purchase for this year?

 Which filter you are using at now?

 

Open-Ended Question

 Tell me about your feedback of using cream.

 What do you think about the two cream NEVIA and

PONDS cold cream

 That's an interesting cream you are using.

Data Sources:

Primary:- Data was collected through Survey and direct interviews. Done with the,
those customers which benefit of BIOGENIX INC.

The questionnaire is a good source of primary data.

Secondary Data: - several magazines, newspapers, internet and other secondary

sources of data were referred. The Manuals in the organization were also
consulted.
 DATA ANALYSIS AND INTERPRETATION

1. Do you like the idea of purchasing Biogenix inc?

Yes 87

No 13

13%

87%

Yes No

INTERPRETATION

87% respondent said that they have idea of purchasing Biogenix inc but 13% are
not
2. Have you ever purchase product of Biogenix inc ?

Yes 77

No 23

23%

77%

Yes No

INTERPRETATION

77% respondent said that they have ever purchase product of Biogenix incbut 23%
are not
3. What helps you to decide which product of Biogenix inc you purchase ?

TV Advertisement 23

Personal recommendation 36

Special offer 11

Radio advertising 17

News paper 7

Word of mouth 6
 7% 6% 23%
17%

11%
36%

TV Advertisement Personal recommendation

Special offer Radio advertising
News paper Word of mouth

INTERPRETATION

23% respondent said that they decide to purchase the product of Biogenix incby
TV advertisement, 36 personal recommendation, 11% special offer, 17% radio
advertising, 7% from News paper and 6% word of mouth.
4. How frequently you see advertisement of Biogenix inc product ?

Weekly 27

Monthly 37

daily 27

None 19

17% 25%

25%
33%

Weekly Monthly daily None

INTERPRETATION

25% respondent said that they have see advertisement of Biogenix inc product
weekly, 33% monthly, 25% daily, but 17% none.
5. For which one of the following purpose you visit in your product ?

Purchasing brand goods 57

Purchasing local goods 23

Only gathering information 11

Others 9

9%
11%

57%
23%

Purchasing brand goods Purchasing local goods

Only gathering information Others

INTERPRETATION

57% respondent said that they have purpose to visit product purchasing brand
goods, 23% purchasing local goods, 11% only gathering information and 9%
others.
6. What according to you are attractive features that buy Biogenix inc product ?

Quality 32

Economy 49

Taste 19

19%
32%

49%

Quality Economy

INTERPRETATION

32% respondent said that they have attractive features that buy Biogenix inc
product Quality, 49% Economy, 19% Taste.
7 Are you satisfy with Biogenix inc Product ?

Yes 91

No 9

9%

91%

Yes No

INTERPRETATION

91% respondent said that they satisfied buy 9% no.

8. Do according to you Biogenix inc product have changed the way the marketing
strategy towards Phermauctical ?

Yes 71

No 29

29%

71%

Yes No

INTERPRETATION

71% respondent said that Biogenix inc product have changed the way the
marketing strategy towards Phermauctical Yes but 29% said no.
9. Do you suggest Biogenix inc to others

Yes 89

No 11

11%

89%

Yes No

INTERPRETATION

89% respondent said that they suggest Biogenix inc to others yes but 11 said no.
10. How will you rate your present Biogenix inc product performance?

Poor 7

Satisfactory 23

Fair 27

Good 21

Very good 13

Excellent 9

9% 7%
13%
23%

21%
27%

Poor Satisfactory Fair Good Very good Excellent

INTERPRETATION

7% respondent said that they rate your present Biogenix inc product performance
poor, 23% satisfactory, 27% fair, 21% good, 13% very good, 9% excellent.
 FINDINGS

According to the study on Advertising Effectiveness of Biogenix Inc Home

Products, I have found following facts:-

 On the basis of primary data, we can say that 22% products of Biogenix Inc
are existing in the houses.

 Most of the household are using the Biogenix Inc colour televisions.

 Television is the most striking media for Advertising.

 Logo/slogan is the main part, which makes an effective advertisement. The

slogan of Biogenix Inc is not so remind able by the consumers.

 If we measure the awareness of Biogenix Inc ad, it is 92% (according to

survey).

 The advertisements of Biogenix Inc need some modification in it.

 According to report 32% respondents think that Biogenix Inc brands are costly.

 Samsung and Videocon are the best competitors in the same segment.
 SUGGESTIONS AND RECOMMENDATIONS

 Company personnel must keep on visiting the outlets through the years
whether it is season or off-season.

 A survey would have to be done among the consumers to know their choice
and views

 Various commitments must be honoured and the services should be further

improved.

 Display stands should be constructed attractive.

 Company should be checked time to time by TDM himself for increasing

market supply.

 There should sufficient advertisement of the company and about product

knowledge.

 Some attractive schemes should be provided to the consumers directly.

 Schemes must be printed upon the billboard, newspaper and magazines in

order to make it useful for consumers.

 The schemes must be communicated properly and should be continued for a

longer period.

 Product brochure should be easy to understand.

 All terms and conditions should be written in easy language.

 LIMITATIONS

 Some consumer's were found to be unsatisfied with BIOGENIX INC hence

they refused to keep its merchandise.

 Sample size was small so the result were biased.

 Most of the outlets have not all types of merchandise in the store.

 Retailers were often busy with their customers, so it was difficult to talk to
them and hence a lot of time was wasted in waiting.

 Footwear apparel is subject matter of solicitation. It is people's driven

industry. In case of footwear and appraisal, the intangibility of the product is
high. People see all immediate benefit out of it. It is very much like selling a
product to someone who never hopes to use it.
 CONCLUSIONS

Although for the organization’s betterment its executives are working hard and
trying to serve in the best possible manner with their colleagues and they all are
very qualified and experienced so organization must extract optimum from them.
Because of its well framed working, the organization has unique position in the
country. As per the study because of short deviation it is very difficult to cover
infact one small topic as it has many diverse things to know. So as far as possible I
tried in a better way to know as much as possible. The observations and
suggestions are based on the queries and review of work procedure as much I came
to know. There may be some lack nesses in it, but as per knowledge it has been
dealt as such. As this is my first experience to get familiar with the organization
and due to matters being confidential, there may be some things that I couldn’t
extract. Although it is a very good experience for me, which will help me through
out my life.
 QUESTIONNAIRE

Q1) Do you like the idea of purchasing products Biogenix inc ?

( a) Yes ( b) No

Q2) Have you ever purchase product of Biogenix inc ?

( a) Yes ( b) No

Q3) What helps you to decide which product of Mobile you purchase?

( a) TV Advertisement ( b) Personal recommendation ( c) Special offer

( d) Radio advertising ( e) News paper ( f) Word of mouth

Q4) How frequently you made a purchase Biogenix inc product ?

( a) Weekly ( b) Monthly ( c) Quarterly ( d) None

Q5) For which one of the following purpose you visit in your product ?

( a) Purchasing brand goods

(b) Purchasing local goods

(c) Only gathering information

(d) Others

Q6) What according to you are attractive features that buy Biogenix inc product
?

(a) Quality (b) Economy (c) taste

Q7) Are you satisfy with Biogenix inc Product ?

(a) Yes (b) No

Q8) Do according to you Biogenix inc product have changed the way the

marketing strategy towards ?

(a) Yes (b) No

Q9.Do you suggest Biogenix inc products to others

 Yes

 No

Q10. How will you rate your present Biogenix inc performance?

 Poor

 Satisfactory

 Fair

 Good

 Very good

 Excellent
 BIBLIOGRAPHY

1. Advertising & Sales Promotion Dr. Anurag Sharma / Dr. Anuradha Sharma

2. Advertising & Sales Promotion G.S. Sudha

3. Advertising & Sales Promotion Shyam Prasad

Websites

1. http://publishing.eur.nl

2. http://www.enotes.com