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CHAPTER-I
1.1 INTRODUCTION

1.1.1 SALES PROMOTION
Sales are the lifeblood of a business, without sales there would be no
business in the first place; therefore it is very important that if a business
wants to succeed, it should have a sales promotion strategy in mind. The
primary objective of a sales promotion is to improve a company's sales by
predicting and modifying your target customer's purchasing behavior and
patterns.
Sales promotion is very important as it not only helps to boost sales
but it also helps a business to draw new customers while at the same time
retaining older ones. There are a variety of sales promotional strategies that a
business can use to increase their sales, however it is important that we first
understand what a sales promotion strategy actually is and why it is so
important.
A sales promotion strategy is an activity that is designed to help boost
the sales of a product or service. This can be done through an advertising
campaign, public relation activities, a free sampling campaign, a free gift
campaign, a trading stamps campaign, through demonstrations and
exhibitions, through prize giving competitions, through temporary price
cuts, and through door-to-door sales, telemarketing, personal sales letters,
and emails. The importance of a sales promotion strategy cannot be

1
underestimated. This is because a sales promotion strategy is important to a
business boosting its sales.
When developing a sales promotion strategy for your business, it is
important that you keep the following points in mind.
Consumer attitudes and buying patterns
Your brand strategy
Your competitive strategy
Your advertising strategy
And other external factor that can influence your products availability
and pricing.

1.1.2 ADVANTAGES OF SALES PROMOTION
•

Importance to Consumers

•

Increased Buying Confidence

•

Distribution of free samples is probably the fastest and best way
through which manufacturers can push consumers to try a product.

•

Once satisfied with the quality of the sample product, consumers
become more confident about buying a new product.

•

Reduced Rates

•

During promotional campaigns, companies offer their products at
discounted rates.

2
•

Consumers like to make use of such occasions to buy larger quantities
of such products.

•

A sales promotion campaign makes the job of the sales team much
easier. Thanks to the offers and sales, customers are positively
inclined towards buying a particular product.

1.1.3 METHODS OF SALES PROMOTION
Some of the most common methods used in sales promotion strategies
include:
1. Coupons
2. Price discounting
3. Gift with purchase offers
4. Sampling
5. Mail in offers and rebates
6. Refund and premium offers
7. Group promotions
8. Frequent user/loyalty incentives
9. Point-of-sale displays

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1.2 INDUSTRY PROFILE

1.2.1 INDIAN RETAIL INDUSTRY
India retail industry is the largest industry in India, with an
employment of around 8% and contributing to over 10% of the country's
GDP. Retail industry in India is expected to rise 25% yearly being driven by
strong income growth, changing lifestyles, and favorable demographic
patterns.
It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion. India retail industry is one of the fastest
growing industries with revenue expected in 2007 to amount US$ 320
billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban
areas, rising incomes, and a steep rise in rural consumption. It has further
been predicted that the retailing industry in India will amount to US$ 21.5
billion by 2010 from the current size of US$ 7.5 billion.
Shopping in India has witnessed a revolution with the change in the
consumer buying behavior and the whole format of shopping also altering.
Industry of retail in India which has become modern can be seen from the
fact that there are multi- stored malls, huge shopping centers, and sprawling

4
complexes which offer food, shopping, and entertainment all under the same
roof.
India retail industry is expanding itself most aggressively as a result a
great demand for real estate is being created. Indian retailers preferred
means of expansion is to expand to other regions and to increase the number
of their outlets in a city. It is expected that by 2010, India may have 600 new
shopping centers.
In the Indian retailing industry, food is the most dominating sector and
is growing at a rate of 9% annually. The branded food industry is trying to
enter the India retail industry and convert Indian consumers to branded food.
Since at present 60% of the Indian grocery basket consists of non- branded
items.
India retail industry is progressing well and for this to continue
retailers as well as the Indian government will have to make a combined
effort.

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1.3 COMPANY PROFILE

1.3.1 FUTURE GROUP
The field of study was conducted at Big bazaar a unit of Pantaloon
Retail (India) Limited. Pantaloon Retail (India) Limited, is India’s leading
retailer that operates multiple retail formats in both the value and lifestyle
segment of the Indian consumer market. Headquartered in Mumbai
(Bombay), the company operates over 12 million square feet of retail space,
has over 1000 stores across 71 cities in India and employs over 30,000
people.
The company’s leading formats include Pantaloons, a chain of fashion
outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central, a
chain of seamless destination malls. Some of its other formats include Brand
Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also
operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited,
operates Home Town, a large-format home solutions store, Collection i,
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selling home furniture products and eZone focused on catering to the
consumer electronics segment. Pantaloon Retail was recently awarded the
International Retailer of the Year 2007 by the US-based National Retail
Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the
World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business
group catering to the entire Indian consumption space.

1.3.2 Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani,
is one of India’s leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business activity
of Future Group, group subsidiaries are present in consumer finance, capital,
insurance, leisure and entertainment, brand development, retail real estate
development, retail media and logistics led by its flagship enterprise,
Pantaloon Retail, the group operates over 12 million square feet of retail
space in 71 cities and towns and 65 rural locations across India.
Headquartered in Mumbai (Bombay), Pantaloon Retail employs
around 30,000 people and is listed on the Indian stock exchanges. The
company follows a multi-format retail strategy that captures almost the
entire consumption basket of Indian customers. In the lifestyle segment, the
group operates Pantaloons, a fashion retail chain and Central, a chain of
seamless malls. In the value segment, its marquee brand, Big Bazaar is a

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hypermarket format that combines the look, touch and feel of Indian bazaars
with the choice and convenience of modern retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever
organic expansion of a hypermarket. The first set of Big Bazaar stores
opened in 2001 in Kolkata, Hyderabad and Bangalore.

The group’s specialty retail formats include, books and music chain,
Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home
improvement chain, Home Town and rural retail chain, Aadhar, among
others. It also operates popular shopping portal, futurebazaar.com. Future
Capital Holdings, the group’s financial arm provides investment advisory to
assets worth over $1 billion that are being invested in consumer brands and
companies, real estate, hotels and logistics. It also operates a consumer
finance arm with branches in 150 locations. Other group companies include,
Future General, the group’s insurance venture in partnership with Italy’s
General Group, Future Brands, a brand development and IPR company,
Future Logistics, providing logistics and distribution solutions to group
companies and business partners and Future Media, a retail media initiative.
The group’s presence in Leisure & Entertainment segment is led
through, Mumbai-based listed company Galaxy Entertainment Limited.
Galaxy leading leisure chains, Sports Bar and Bowling Co. and family
entertainment centres, F123. Through its partner company, Blue Foods the
group operates around 100 restaurants and food courts through brands like

8
Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper
Chimney and Gelato.
Future Group’s joint venture partners include, US-based stationery
products retailer, Staples and Middle East-based Axiom Communications.
The group’s flagship company, Pantaloon Retail was awarded the
International Retailer of the Year 2007, by the US-based National Retail
Federation, the largest retail trade association and the Emerging Market
Retailer of the Year 2007 at the World Retail Congress in Barcelona.
Future Group believes in developing strong insights on Indian
consumers and building businesses based on Indian ideas, as espoused in the
group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite
rules, Retain values.’

1.3.3 Vision:
Future Group shall deliver Everything, Everywhere, Every time for
Every Indian Consumer in the most profitable manner.

1.3.4 Mission:
They share the vision and belief that our customers and stakeholders
shall be served only by creating and executing future scenarios in the
consumption space leading to economic development.
They will be the trendsetters in evolving delivery formats, creating
retail realty, making consumption affordable for all customer segments – for
classes and for masses.
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They shall infuse Indian brands with confidence and renewed
ambition.
They shall be efficient, cost- conscious and committed to quality in
whatever we do.
They shall ensure that our positive attitude, sincerity, humility and
united determination shall be the driving force to make us successful.

1.3.5 Core values:
•

Indianness: confidence in ourselves.

•

Leadership: to be a leader, both in thought and business.

•

Respect & Humility: to respect every individual and be humble in our
conduct.

•

Introspection: leading to purposeful thinking.

•

Openness: to be open and receptive to new ideas, knowledge and
information.

•

Valuing and Nurturing Relationships: to build long term relationships.

•

Simplicity & Positivity: Simplicity and positivity in our thought,
business and action.

•

Adaptability: to be flexible and adaptable, to meet challenges.

•

Flow: to respect and understand the universal laws of nature.

1.3.6 Major Milestones
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2001- Three Big Bazaar stores launched within a span of 22 days in
Kolkata, Bangalore and Hyderabad.
2002- Food Bazaar, the supermarket chain is launched.
2004- Central - India’s first seamless mall is launched in Bangalore.
2005- Group moves beyond retail, acquires stakes in Galaxy
Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first
real estate investment fund Kshitij to build a chain of shopping malls.
2006- Future Capital Holdings, the company’s financial is formed to
manage over $1.5 billion in real estate, private equity and retail
infrastructure funds. Plans forays into retailing of consumer finance
products.
Home Town, a home building and improvement products retail chain
is launched along with consumer durables format, Ezone and furniture chain,
Furniture Bazaar. Future Group enters into joint venture agreements to
launch insurance products with Italian insurance major, General Forms joint
ventures with US office stationery retailer, Staples.
2007- Future Group crosses $1 billion turnover mark. Specialized
companies in retail media, logistics, IPR and brand development and retailled technology services become operational.
2008- Future Capital Holdings becomes the second group company to
make a successful Initial Public Offering in the Indian capital markets. Big
Bazaar crosses the 100-store mark, marking one of the fastest ever
expansion of a hypermarket format anywhere in the world. Total operational
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retail space crosses 10 million square feet mark. Future Group acquires rural
retail chain, Aadhar present in 65 rural locations.

1.3.7 Passion for Retail
At Pantaloon Retail, Empowerment is what you acquire and Freedom
at Work is what you get. They believe the most valuable assets are People.
Young in spirit, adventurous in action, with an average age of 27 years, our
skilled & qualified professionals work in an environment where change is
the only constant.
Powered by the desire to create path-breaking practices and held
together by values, work in this people intensive industry is driven by softer
issues. In our world, making a difference to Customers’ lives is a Passion
and performance is the key that makes it possible. Out of the Box thinking
has become a way of life at Pantaloon Retail and living with the change, a
habit.
Leadership is a value that is followed by one and all at Pantaloon
Retail. Leadership is the quality that motivates us to never stop learning,
stretching to reach the next challenge, knowing that we will be rewarded
along the way. In the quest of creating an Indian model of retailing,
Pantaloon Retail has taken initiatives to launch many retail formats that have
come to serve as a benchmark in the industry. Believing in leadership has

12
given us the optimism to change and be successful at it. We do not predict
the future, but create it.
At Pantaloon Retail you will get an opportunity to handle multiple
responsibilities, and therein, the grooming to play a larger role in the future.
Work is a unique mix of preserving our core Indian values and yet providing
customers with a service, on par with international standards.
Pantaloon Retail is not just an organization - it is an institution, a
centre of learning & development. We believe that knowledge is the only
weapon at our disposal and our quest for it is focused, systematic and
unwavering.
At Pantaloon Retail, we take pride in challenging conventions and
thinking out of the box, in travelling on the road less traveled. Our corporate
doctrine ‘Rewrite Rules, Retain Values’ is derived from this spirit.
Over the years, the company has accelerated growth through its ability
to lead change. A number of its pioneering concepts have now emerged as
industry standards. For instance, the company integrated backwards into
garment manufacturing even as it expanded its retail presence at the front
end, well before any other Indian retail company attempted this. It was the
first to introduce the concept of the retail departmental store for the entire
family through Pantaloons in 1997. The company was the first to launch a
hypermarket in India with Big Bazaar, a large discount store that it
commissioned in Kolkata in October 2001. And the company introduced the
country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which
was launched in July 2002 in Mumbai. Embracing our leadership value, the
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company launched all in July 2005 in Mumbai, making us the first retailer in
India to open a fashion store for plus size men and women.
Today we are the fastest growing retail company in India. The number
of stores is going to increase many folds year on year along with the new
formats coming up.

The way we work is distinctly "Pantaloon". Our courage to dream and
to turn our dreams into reality - that change people’s lives, is our biggest
advantage. Pantaloon is an invitation to join a place where there are no
boundaries to what you can achieve. It means never having to stop asking
questions; it means never having to stop raising the bar. It is an opportunity
to take risks, and it is this passion that makes our dreams a reality.

1.3.8 BIG BAZAAR
Big bazaar, Pondy Bazaar was the second store to make an impact in
the minds of the customer. It was opened in the month of June, 2008.
Situated in the midst of an IT hub, it welcomes customers with exciting
offers and discounts. Pondy bazaar is among the few areas in Chennai that is
full of activities with shopping malls, eat out joints, restaurants etc. This also
brings a lot of competition for the store. Measures are taken to retain the
customers by training the employees to be polite and vigilant.

1.3.9 The various departments in the store are as follows
• Food bazaar department
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• Cash department
• Plastics, Utensils and Crockery
• Appliances
• Footwear
• New Business Developments
• Depot
• Home Linen
• Furniture
• Apparels
• Visual merchandise
• Human Resource
• Administration
• Ware house / Logistics
• Maintenance
• Luggage
• Customer Service Department.

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1.4 REVIEW OF LITERATURE
1.4.1 Promotion & Consumption
Does consumption respond to promotion? Many studies have focused
on the effects of promotion on brand switching, purchase quantity, and
stockpiling and have documented that promotion makes consumers switch
brands and purchase earlier or more. The consumers‘consumption decision
has long been ignored, and it remains unclear how promotion affects
consumption (Blattberg et al. 1995).
Emerging literature in behavioural and economic theory has provided
supporting evidence that consumption for some product categories responds
to promotion. Using an experimental approach, Wansink (1996) establishes
that significant holding costs pressure consumers to consume more of the
product.
Wansink and Deshpande (1994) show that when the product is
perceived as widely substitutable, consumers will consume more of it in
place of its close substitutes. They also show that higher perishability
increases consumption rates. Adopting scarcity theory, Folkes et al. (1993)
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show that consumers curb consumption of products when supply is limited
because they perceive smaller quantities as more valuable. Chandon and
Wansink (2002) show that stockpiling increases consumption of high
convenience productsmore than that of low-convenience products.

1.4.2 Sales Promotion and Consumer Response/ Preference
Consumer promotions are now more pervasive than ever. Witness 215
billion manufacturer coupons distributed in 1986, up 500% in the last decade
(Manufacturers

Coupon

Control

Center

1988),

and

manufacturer

expenditures on trade incentives to feature or display brands totalling more
than $20 billion in the same year, up 800% in the last decade (Alsop 1986;
Kessler 1986). So far, not much work has been done to identify the
purchasing strategies that consumers adopt in response to particular
promotions, or to study how pervasive these strategies are in a population of
interest. Blattberg,
Peacock and Sen (1976) define a purchase strategy as a general
buying pattern which "incorporates several dimensions of buying behaviour
such as brand loyalty, private brand proneness and deal proneness." A
greater understanding of the different types of consumer responses to
promotions can help managers to develop effective promotional programs as
well as provide new insights for consumer behaviour theorists who seek to
understand the influence of different types of environmental cues on
consumer behaviour.
17
Blattberg, Eppen, and Liebermann (1981), Gupta (1988), Neslin,
Henderson, and Quelch (1985), Shoemaker (1979), Ward and Davis (1978),
and Wilson, Newman,and Hastak (1979) find evidence that promotions are
associated with purchase acceleration in terms of an increase in quantity
purchased and, to a lesser extent, decreased inter purchase timing.
Researchers studying the brand choice decision-for example, Guadagni and
Little (1983) and Gupta (1988)-have found promotions to be associated with
brand switching. Montgomery (1971), Schneider and Currim (1990), and
Webster (1965) found that promotion-prone households were associated
with lower levels of brand loyalty.
According to Rust, Ambler, Carpenter, Kumar, & Srivastava (2004), it
is important to measure marketing asset of a firm which they define as
customer focused measures of the value of the firm (and its offerings) that
may enhance the firm‘s long-term value. To measure this, they focus on two
approaches: brand equity and customer equity. Measuring brand equity deals
with the measurement of intangible marketing concepts, such as product
image reputation and brand loyalty. Rajagopal (2008) supports the view of
measuring the marketing asset of a firm and highlights that the major
advantage of a brand measurement system is that it links brand management
and business performance of the firm and is a strategic management tool for
continuous improvement rather than a static snapshot in time of the brand‘s
performance.
Davis (2002) adds that brands should be managed as assets using a top
down approach where senior executives embrace the concept that marketing
should have a leading seat at the strategy table and use the brands to drive
key strategic decisions. Also if senior executives are vocal and show

18
commitment to the brands, then employees within an organization will start
taking ownership of the brand.

1.4.3 Sales Promotion Types and Preferences
At this point, it is useful to define what mean by the terms "expected
price" and "price promotion." Following Thaler (1985), it is viewed that the
price consumers‘ use as a reference in making purchase decisions as the
price they expect to pay prior to a purchase occasion. Further, the expected
price may also be called the "internal reference price" (Klein and Oglethorpe
1987) as opposed to an external reference price such as the manufacturers'
suggested list price. Finally, a brand is on price promotion when it is offered
with a temporary price cut that is featured in newspaper advertising and/ or
brought to consumers' attention with a store display sign.
The price expectations hypothesis has been used to provide an
alternative explanation for the observed adverse long-term effect of price
promotions on brand choice (Kalwani et al. 1990). Previous research has
shown that repeat purchase probabilities of a brand after a promotional
purchase are lower than the corresponding values after a non promotional
purchase (Dodson, Tybout, and Sternthal 1978; Guadagni and Little 1983;
Shoemaker and Shoaf 1977). Dodson, Tybout, and Sternthal evoke selfperception theory to predict that if a purchase is induced by an external
cause (such as a price promotion) as opposed to an internal cause (e.g., the
brand will be reduced when the external cause is removed.
Promotional purchases". The behaviour of households that have low
probabilities of buying a brand upon the retraction of a deal can be explained
19
readily in a price expectation framework. It has been suggested that the price
they expect to pay for the brand may be close to the deal price and they may
forego purchasing the focal brand when it is not promoted because its retail
price far exceeds what they expect to pay for it. It has been investigated that
the impact of price promotions on consumers' price expectations and brand
choice in an interactive computer-controlled experiment.
Manohar U. Kalwani and Chi Kin Yim discussed that expected prices
were elicited directly from respondents in the experiment and used in the
empirical investigations of the impact of price promotions on consumers'
price expectations. Further, rather than studying the impact of just a single
price pro- motion and its retraction, they assessed the significance of the
dynamic or long-term effects of a sequence of price promotions. They have
concluded that both the price promotion frequency and the size of price
discounts have a significant adverse impact on a brand's expected price.
Consistent with the findings of Raman and Bass (1988) and
Gurumurthy and Little (1989), they also found evidence in support of a
region of relative price insensitivityaround the expected price such that
changes in price within that region produce no pronounced change in
consumers' perceptions. Price changes outside that region, however, are
found to have a significant effect on consumer response. Further, they
discussed that promotion expectations are just as important as price
expectations in understanding consumer purchase behaviour. In particular,
consumers who have been exposed to frequent price promotions in support
of a given brand may come to form promotion expectations and typically
will purchase the brand only when it is price promoted. Added to it, in the
case of price expectations, consumer response to promotion expectations
was asymmetric in that losses loom larger than gains.
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Applying Helson's (1964) adaptation-level theory to price perceptions,
Sawyer and Dickson (1984) suggest that price promotions may work in the
short run because consumers may use the brand's regular price as a reference
and then are induced by the lower deal price to purchase the brand.
However, frequent temporary price promotions may also lower the brand's
expected price and lead consumers to defer purchases of the brand when it is
offered at the regular price.
Tversky and Kahneman (1974) have shown that people rely on a
limited number of heuristic principles that reduce complex tasks of assessing
probabilities and predicting values to simpler judgmental operations. In
some cases, people may anchor and adjust their forecasts by starting with a
preconceived point and weigh that point heavily in arriving at a judgment.
When the frequency of past price promotions is "very low," consumers
identify a price promotion offer as an exceptional event and may not modify
the brand's expected price. The brand's expected price then will be anchored
around the regular price because of insufficient adjustment. In other cases,
people may arrive at a judgment on the basis of how similar or
representative the event is to a class of events. Therefore, when a brand is
price promoted "too often," consumers come to expect a deal with each
purchase and hence expect to pay only the discounted price on the basis of
its representativeness.
Davis, Inman, and McAlister (1992) also examine the difference
between pre and post promotion brand evaluations at the individual level but
find no evidence that price promotions affect evaluations for frequently
purchased branded packaged goods. Across three promoting brands in each
of four different product categories, evaluators of promoted brands in the
post promotional period are not found to be lower than in the pre
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promotional period, The studies by Scott and colleagues indicate that
promotions have a damaging effect on post trial evaluations, whereas Davis,
Inman, and McAlister's study suggests that the impact of promotions on
brand evaluations in these packaged goods categories is, on average,
nonexistent.

1.4.4 The Valence of a Promotion
The price-quality literature has found that a relatively lower price
generally is interpreted as an indicator of inferior quality and that this effect
is magnified when only price information is available to make a judgment
(e.g., Etgar and Malhotra 1981; Monroe and Petroshius 1981; Olson 1977;
Rao and Monroe 1988). Although the economic aspect of price leads to
reduced demand at higher prices, the quality inference leads to enhanced
demand at higher prices or requires a trade-off between price and inferred
quality (Hagerty 1978; Levin and Johnson 1984). The extent to which
consumers use price as an indicator of quality depends on the availability of
alternative diagnostic information (Szybillo and Jacoby 1974).
Rao and Monroe (19B8) find evidence that, with increased product
familiarity, people increasingly used intrinsic (versus extrinsic) product
quality cues to make quality judgments. The greater the amount of other
information available, the smaller will be the effect of price on perceived
quality (Rao and Monroe 1988). Because price promotions reduce price and
because lower prices are associated with lower quality, we predict that when
22
other information diagnostic of quality is not available, offering price
promotions will lead to inferences of lower quality.
Similarly, Lichtenstein and Bearden (1986) examine product,
circumstance, and person attributions for a promotion. They find that
product attributions were valenced negatively, for example, "because the car
is inferior" and "because the car has poor styling." Therefore, if consumers
undertake attributional thinking when exposed to a price promotion and if
these attributions are to the brand, the attributions are more likely to lead to
unfavourable brand evaluations.

1.4.5 When Promotion is Informative
The preceding leads to the question: What is the likelihood that a
given promotion will be attributed to brand related factors rather than
external, situational factors? Attribution theorists, starting with Heider
(1958), have found that observers attribute another person's behaviour to
intrinsic or dispositional qualities rather than to situational factors, even
when the behaviour easily could be explainable by the latter. This
phenomenon, called the "fundamental attribution error" (or "correspondent
inference theory"; Jones and Davis 1965), predicts that consumers attribute
promotional behaviour to the disposition of the brand rather than industry
characteristics. Thus, because consumers are more likely to attribute
promotions to brand-related (versus industry-related) factors and because
these factors are typically negative, offering a promotion should affect brand
evaluations unfavourably.
To illustrate, if a brand that has been promoted frequently in the past
is promoted currently, the current promotion conveys little that is new about
the brand to consumers, and they are not likely to give the current behaviour
23
much thought. Conversely, if a brand that has never been promoted in the
past is promoted, this is informative and more likely to lead to a re
evaluation of the brand. This construct, formally termed "consistency" in the
attribution literature, has been shown to affect the extent to which people
make personality inferences about another person given his or her actions
(Einhorn and Hogarth 1986; Hastie 1984; Hilton and Slugoski 1986; Jones
and Davis 1965; Kelly 1967, 1972).
Consistent with this logic, in the context of reference prices,
Lichtenstein and Bearden (1989) find that consumers' price perceptions were
dependent on the consistency of merchants' price claim policies. Consumers
should find promotional behaviour more informative of a brand's quality
when it is inconsistent with past behaviour than when it is consistent. The
valence (the intrinsic positive or negative characteristic) of a behaviour has
been well researched in social psychology and shown to affect the salience
(Fiske 1980) and the processing of information (Fiske 1980; Skowronski and
Carlston 1989), Taylor (1991) summarizes the differential effects of positive
and negative information, arguing that they have asymmetric effects. These
effects include, for example, that negative experiences are elaborated upon
more than positive experiences, that people search more for negative (versus
positive) information when making judgments, and that they weight this
information more heavily because they find it more diagnostic than positive
information (e.g., Fiske 1980; Hamilton and Zanna 1972. 1974; Herr,
Kardes, and Kim 1991; Kanouse and Hanson 1972).

1.4.6 Promotion Thresholds
A promotion threshold is the minimum value of price discount
required to change consumers' intentions to buy. The concept of a threshold
24
can be related to the psychological process of discrimination in which a
consumer would not react to stimuli unless the perceived changes were
above a just noticeable difference (Luce and Edwards 1958).
The concept of a threshold is widely recognized and acknowledged by
both researchers and practitioners. In the context of advertising
effectiveness, Eastlack and Rao (1986) showed that a minimum level of
advertising is needed before advertising has any significant impact on sales.
The use of the well-known S-shaped response function also testifies to the
acceptability of the threshold concept. On the basis of assimilation-contrast
theory, Gurumurthy and Little (1989) argue for the existence of a price
threshold. They suggest that consumers have latitude of acceptance around
their reference price. Therefore, small price differences within this range or
latitude are less likely to be noticed than prices above or below this range.
Kalwani and Yim (1992) found evidence in support of a region of
relative price insensitivity around the reference price, such that only price
changes outside this region had a significant impact on consumer brand
choice. Many managers also believe that price reductions of about 15
percent are needed to attract consumers to a sale (Della Bitta and Monroe
1980). Therefore, Sunil Gupta and Lee G. Cooper (1992) proposed that
promotion thresholds exist such that consumers do not change their intention
to buy the product unless the price reduction is greater than some threshold
value.

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CHAPTER II
2.1 SCOPE OF STUDY
• The study covers to identify the effectiveness of sales
promotional tools which carried by big bazaar, perambur.
• Increase the sales level by increasing tempo level.
• The fulfillment of the customers’ preference & expectations.
• To find out the purchasing tendency of the customers

26
2.2 NEED FOR THE STUDY
• Presently all companies are giving very attractive schemes to their
customers and this study is aimed at, what is in the mind of customers
with reference to the sale/purchase, their expectations ,in order to
increase the sales of big bazaar, perambur.
• Since there are very few companies in the market, the competition
among the companies has hottened up. All players in this market are
trying to prove them selves as a leader. But only companies, which
give the superiority quality products with high competitive pricing
and attractive promotional schemer, only can able to be the market
leader.

27
2.3 OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE

•

To find out the sales promotional activities carried by big bazaar.

SECONDARY OBJECTIVES
o To find out the tools and techniques of sales promotion that
used in big bazaar.

o To know the level of satisfaction towards the sales promotional
activities carried by big bazaar

28
o To identify the factors influencing to buy the product in big
bazaar.

o To give the suggestion for improve the sales promotion in
competitive market.

2.4 LIMITATION OF THE STUDY
• Since the survey has been conducted to the customers of the big
bazaar, perambur only.
• The period of the study is only 60days.
• It’s very difficult to cover the entire market.
• Most of the customers show hesitations to respond.
• Only 110 customers are taken as sample for the study.

29
2.5 Research Methodology
2.5.1 OVERVIEW OF RESEARCH METHODOLOGY
Research type

Descriptive research

Population size

Customers Of Big Bazaar, Perambur

Sampling techniques

Convenience sampling

Sampling area

Perambur

Sampling size

110

Data collection instrument

Questionnaire

30
Data collection
Primary

Questionnaire

Secondary

Journals, websites, books

Statistical tool

Chi

square,

Simple

percentage,

Weighted average, Simple Correlation

2.5.2 Descriptive Research
Descriptive Research is the process of finding solutions for a problem
after a tough study and analysis of situational factors. It tries to solve a
complex and complicated problems through uses of various tools and
techniques. These tools and techniques try to bring out a logical accurate and
scientific solution for a given problem.

2.5.3 Research Design
Research Design is the arrangement of conditions for collections and
analysis of data in a manner that aims to combine relevance to the research
purpose economy in procedure in fact the research design is the conceptual
structure within which research is conducted. It constitutes the blue print for
the collection and analysis of data. The research design adapted in the study
was descriptive study.

2.5.4 Sampling Technique
31
The sampling technique which was used is convenience sampling.

SOURCES OF DATA
The two main sources of data for the present study been used are
primary and secondary data.

PRIMARY DATA
This data was collected from the respondents.

SECONDARY DATA
Under this the sources were taken from books, company brochures
and internet for this study.

SAMPLING DESIGN
A sampling design is a define plan for obtaining a sample from a
given population. It refers to the technique or the procedure, the research
would adopt in selecting items for the sample. Sample is the process of
selecting a sufficient number of elements from the population, so that a
study of the sample and an understanding of its properties or characteristics
would make it possible for us to generalize such properties or characteristics
to the population elements.

SAMPLE POPULATION
My sample population is the customers of the big bazaar, perambur.

32
SAMPLE SIZE
Considering the nature and extent of the study and with the time
constraint a sample size of “110”respondents have been taken.

CHAPTER III
METHODOLOGY AND FRAMEWORK
Statistical tools used for data analysis
The following tools were used for data analysis and interpretation.
i.

Percentage method

ii.

Chi- square analysis

iii.

Simple Correlation

iv.

Weighted average method

Percentage method
Percentage refers to a special kind of ration. Percentage is used in
making comparisons between two or more series of data. Percentage is used to

33
describe relationships. Percentage can also used to compare the relative terms
the distribution of two or more series of data.

Chi- square test
The objective of the Chi- square analysis is to determine whether real on
significant differences exist among various groups. It helps to find out whether
two (or) more attributes are associated (or) not whether the attributes are
dependent (or) independent. Chi – square test involves a comparison of
expected frequency (Ei) with the observed frequency (Oi).

Simple correlation
When two variables are studied it is a simple correlation.

DATA ANALYSIS AND INTERPRETATION
Table-3.1.1
Classification of respondents based on age
S.No

Particulars

No of respondents

% of respondents

1

18-21

18

17

2

22-25

22

20

3

26-30

30

27

4

31-45

19

17

5

Above 35

21

19

6

Total

110

100

34
Source: Primary Data

Inference:
Majority (27%) of the respondents are in age of 26-30, 20 % of the
respondents are in the age of 22-25, 19% of the respondents are in the age of
above 35, 17% of the respondents are in the age of 21-25 &18-21.

Chart-3.1.1
Classification of respondents based on age

35
TABLE- 3.1.2
Classification of respondents based on gender

36
s. no

Particulars

No. of.
Respondents

% of respondents

1

Male

48

44

2

Female

62

56

3

Total

110

100

Source: Primary Data

Inference:
From the survey, 44% of the respondents are male and 56% of the
respondents are female.

CHART- 3.1.2
Classification of respondents based on gender

37
TABLE- 3.1.3
Classification of respondents based on marital status
s. no

Particulars

No. of.
38

% of respondents
Respondents
1

Married

72

65

2

Unmarried

38

35

3

Total

110

100

Source: Primary Data

Inference:
From the survey 65% of the respondents are married and 35% of the
respondents are female.

CHART- 3.1.3
Classification of respondents based on marital status

39
TABLE-3.1.4
Qualification of the respondent

40
S.NO

Qualification

No. of Respondent

Percentage

1.

10th

5

5

2.

12th

18

16

3.

Degree

72

65

4.

Others

15

14

Total

110

100

Source: Primary Data
Inference
65% of the respondents are degree holders, 16% of the respondents are 12 th,
14% are the other qualification, 5% are 10 th.

CHART-3.1.4
Qualification of the respondent

41
Percentage
70
60
50
40

Percentage

30
20
10
0
10th

12th

Degree

Others

TABLE-3.1.5
Monthly Income of the respondent

42
S.NO

Customers income

No. of Respondent

Percentage

1.

Below 5000

06

5

2.

5001-10000

22

20

3.

10001-20000

48

44

4.

Above 20000

34

31

Total

110

100

Source: Primary Data
Inference:
44% of the respondents are earning 10001-20000,31% are above
20000,20% of them are 5001-10000,5% are below 5000.

CHART-3.1.5
Monthly Income of the respondent

43
Percentage
50
45
40
35
30
25
20
15
10
5
0

Percentage

Below 5000

5001-10000

10001-20000

Above 20000

TABLE-3.1.6
Factors normally consider while purchasing a product in big
bazaar

44
s.no

particulars

No of
Respondents

% of
Respondents

1

Fragrance

20

18

2

Quality

52

47

3

Company image

13

12

4

Price

20

18

5

Other

5

5

6

total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 47% of the respondents are consider
Quality, 18% of respondents Fragrance and quality, 12% are in company
image, 05% of respondents are for others .

CHART-3.1.6
Factors normally consider while purchasing a product in big
bazaar
45
TABLE-3.1.7
Sales promotional activity attracts you more

46
s.no

particulars

No of
Respondents

% of
Respondents

1

Offer

46

42

2

Discounts

40

36

3

Gift

11

10

4

Price

10

9

5

Other

03

3

6

total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 42% are attracts by offer, 36% are
attracts by Discounts, 10% are attracts by Gift, 9% are attracts by price and
03% are attracts by other promotional activities in Big Bazaar.

CHART-3.1.7
Sales promotional activity attracts you more

47
TABLE-3.1.8
Thought about the price of the products

48
S. no

Particulars

No. of
respondents

% of respondents

1

Highly satisfied

27

25

2

Satisfied

41

37

3

Neutral

31

28

4

Dissatisfied

9

08

5

Highly dissatisfied

2

02

6

total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 37% of the respondents are satisfied,
28% of respondents Neutral, 25% are highly satisfied, 08% of respondents
are dissatisfied and 02% is highly dissatisfied regarding the price of the
products in Big Bazaar.

CHART-3.1.8
Thought about the price of the products
49
TABLE-3.1.9

50
Sales promotional activities the customer satisfied more in big
bazaar
s.no

particulars

No of
Respondents

% of
Respondents

1

Payback Offer

16

15

2

Monthly savings

29

26

3

Gift voucher

11

10

4

Big day offer

38

34

5

Other

16

15

6

total

110

100

Source: Primary Data
Inference:

From the survey it is evident that 34% of the respondents are satisfied
in Big Day offer, 26% of respondents are satisfied in Monthly saving offer,
15% are satisfied with Payback Offer, 15% of respondents’ are satisfied with
Other promotional scheme and 10% is satisfied with Gift voucher.

CHART-3.1.9
51
Sales promotional activities the customer satisfied more in big
bazaar

TABLE-3.1.10

52
Departments that customer prefer to buy more products in big
bazaar

s.no

particulars

No of
Respondents

% of
Respondents

1

Food

42

38

2

Home appliances

14

13

3

Toys and sports

21

19

4

Non food

26

24

5

Other

07

6

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 38% of the respondents are prefers
Food department, 24% of the respondents are prefers Non food department
19% of respondents are prefer Toys and sports, 13% of the respondents are
prefers Home appliances, 6% of respondents are prefers other that above
shown.

CHART-3.1.10
53
Departments that customer prefer to buy more products in big
bazaar

TABLE-3.1.11
54
The approach of sales representative in Big bazaar

S. no

Particulars

No. of
respondents

% of respondents

1 Excellent

53

48

2 Good

36

33

3 Average

12

11

4 Poor

09

8

0

0

250

100

5 Very poor
6 Total

Source: Primary Data

Inference:
From the survey it is evident that 48% of the respondents are Excellent, 33%
of respondents good, 11% are average, and 08% of respondents are poor
regarding the approach of sales representative in big bazaar

CHART-3.1.11
55
The approach of sales representative in Big bazaar

TABLE-3.1.12
56
Satisfaction levels with the sales promotional activities carried
out by the company
S. no

Particulars

No. of
respondents

% of respondents

1

Excellent

29

26

2

Good

22

20

3

Average

42

38

4

Poor

10

09

5

Very Poor

07

06

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 38% of the respondents are Neutral,
26% of respondents highly satisfied, 20% are satisfied, 9% of respondents
are dissatisfied and 6% is highly dissatisfied regarding satisfaction levels
with the sales promotional activities carried by the company.

CHART-3.1.12
57
Satisfaction levels with the sales promotional activities carried
by the company

% of respondents
40
35
30
25
20

% of respondents

15
10
5
0

Excellent

Good

Average

Poor

Very Poor

TABLE-3.1.13

58
Customer opinions about the advertisement
S. no

Particulars

No. of
respondents

% of respondents

1

Highly satisfied

05

05

2

Satisfied

17

15

3

Neutral

56

51

4

Dissatisfied

20

18

5

Highly dissatisfied

12

11

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 51% of the respondents are Neutral,
18% of respondents dissatisfied, 15% are satisfied, 11% of respondents are
highly dissatisfied and 5% is highly satisfied regarding customer opinions
about the advertisement.

CHART-3.1.13
59
Customer opinions about the advertisement

60
TABLE-3.1.14
Customer consideration about promotional schemes while
purchasing a product
s.no

particulars

No of
Respondents

% of
Respondents

1

Yes

66

60

2

No

44

40

3

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 60% of customers consider
promotional schemes and remaining 40% are not considering it.

61
CHART-3.1.14
Customer consideration about promotional schemes while
purchasing a product

62
TABLE-3.1.15
Opinions about big bazaar in customer point of view in
availability of products
S. no

Particulars

No. of
respondents

% of respondents

1

Excellent

33

30

2

Good

41

37

3

Average

32

29

4

Poor

03

03

5

Very poor

01

01

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 37% of the respondents are good,
30% of respondents Excellent, 29% are average, 03% of respondents are
poor and1% of respondents are very poor regarding opinions about
availability of product in big bazaar.

63
CHART-3.1.15
Opinions about big bazaar in customer point of view in
availability of products

64
TABLE-3.1.16
Medium do you feel is suitable to promote the various
promotional schemes
S. no

Particulars

No. of
respondents

% of respondents

1

Radio

03

03

2

TV

27

25

3

News paper

53

48

4

Posters and banners

17

15

5

Others

10

09

6

total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 48% of the respondents are feeling
News paper is suitable to promote the various promotional schemes, 25% of
respondents are by TV, 15% are by posters and banners, 09% of respondents
are by other than the above shown and 3% are by radio.

65
CHART-3.1.16
Medium do you feel is suitable to promote the various
promotional schemes

66
TABLE-3.1.17
Thought about the sales service of big bazaar
S. no

Particulars

No. of
respondents

% of respondents

1

Excellent

40

36

2

Good

34

31

3

Average

27

25

4

Poor

08

07

5

Very poor

01

01

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 36% of the respondents are
Excellent, 31% of respondents Good, 25% are average, 07% of respondents
are poor and1% of respondents are very poor for thought about the sales
service of big bazaar.

67
CHART-3.1.17
Thought about the sales service of big bazaar

68
TABLE-3.1.18
Promotional activities needs better improvement in big bazaar
S. no

Particulars

No. of
respondents

% of respondents

1

Offer

24

22

2

Discount

26

24

3

Gift

27

25

4

Price

22

20

5

other

11

10

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 25% of the respondents are says
need to improvement in Gifts, 24% of respondents says in Discount, 22%
are says in offer, 20% of respondents are in Price and 10% are says in other
than the above shown.

69
CHART-3.1.18
Promotional activities needs better improvement in big bazaar

70
TABLE-3.1.19
Customers thought about the big day offers
S. no

Particulars

No. of
respondents

% of respondents

1

Excellent

54

49

2

Good

36

33

3

Average

20

18

4

Poor

0

0

5

Very poor

0

0

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 49% of the respondents are
Excellent, 33% of respondents Good, 18% are average, 0% of respondents
are poor and0% of respondents are very poor for thought about the big day
offer in big bazaar.

71
CHART-3.1.19
Customers thought about the big day offers

72
TABLE-3.1.20
Customer choosing big bazaar Perambur
S. no

Particulars

No. of
respondents

% of respondents

1

Near by home town

26

24

2

Customer service

34

31

3

Good will

29

26

4

Lowest Price

8

7

5

other

13

12

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 31 % of the respondents are
choosing big bazaar for Customer service, 26% of respondents are choosing
for Good will of the company, 24% are for their convenient , 12% of
respondents are for other than the above shown options and 07% are
choosing Big bazaar for the lowest price.

73
CHART-3.1.20
Customer choosing big bazaar Perambur

74
TABLE-3.1.21
Signage or display convey about the product
s.no

particulars

No of
Respondents

% of
Respondents

1

Yes

71

65

2

No

39

35

3

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 65% of customers can understand by
signage or display and remaining 35% are not considering it.

75
CHART-3.1.21
Signage or display convey about the product

76
TABLE-3.1.22
Thought about exchange mela
S. no

Particulars

No. of
respondents

% of respondents

1

Excellent

19

17

2

Good

36

33

3

Average

34

31

4

Poor

20

18

5

Very poor

01

1

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 33% of the respondents are good,
31% of respondents Average, 18% are says Poor, 17% of respondents
Excellent, 01 are Very Poor are regarding thought about exchange mela.

77
CHART-3.1.22
Thought about exchange mela

% of respondents
35
30
25
20
% of respondents

15
10
5
0

Excellent

Good

Average

Poor

78

Very poor
TABLE-3.1.23
Thought about T24 free recharge
S. no

Particulars

No. of
respondents

% of respondents

1

Excellent

09

08

2

Good

42

38

3

Average

36

33

4

Poor

15

14

5

Very poor

08

07

6

Total

110

100

Source: Primary Data

Inference:
From the survey it is evident that 38% of the respondents are good,
33% of respondents Average, 14% are said Poor, 08% of respondents
Excellent, 07 are Very Poor are regarding thought about T24 free recharge.

79
CHART-3.1.23
Thought about T24 free recharge

% of respondents
40
35
30
25
20

% of respondents

15
10
5
0

Excellent

Good

Average

Poor

80

Very poor
TABLE-3.1.24
Average billing ranges in Big Bazaar
S. no

Particulars

No. of
respondents

% of respondents

1

Below 500

28

25

2

500-1000

43

39

3

1001-3000

20

18

4

3001-5000

14

13

5

Above 5000

05

05

6

Total

110

100

Source: Primary Data

Inference:

From the survey it is evident that 39% of the respondents are do the billing
range of 500-1000, 25% of respondents are in the range of Below 500 , 18%

81
are in 1001-3000, 13% of respondents in 3001-5000, 05% are do above
5000.

CHART-3.1.24
Average billing ranges in Big Bazaar

82
3.2. Chi-Square Analysis
3.2.1 Analysis between Gender and Department which prefer to buy the
products
Hypothesis
H0 : There is no significant relationship between Gender and Department
which prefer to buy the products.
H1: There is significant relationship between Gender and Department which
prefer to buy the products.

Table 3.2.1

Analysis between Gender and Department which prefer to buy
the products

Gender

Department prefer to buy
83
Home
Food
appliances

Toys
and
sports

Non
Food

Other

Total

Male

16

05

08

16

3

48

Female

26

9

13

10

04

62

Total

42

14

21

26

07

110

Expected frequency
Department prefer to buy
Gender

Home
Food
appliances

Toys
and
sports

Non
Food

Other

Total

Male

18.33

6.11

9.16

11.35

3.05

48

Female

23.67

7.89

11.84

14.65

3.95

62

(Oi – Ei) 2

(Oi – Ei) 2/Ei

Oi

Ei

16

18.33

5.43

0.29

05

6.11

1.23

0.20

08

9.16

1.35

0.15

16

11.35

21.62

1.90

03

3.05

0.25

0.082

26

23.67

5.43

1.48

84
09

7.89

1.11

0.14

13

11.84

1.16

0.09

10

14.65

21.62

1.48

04

3.95

0.25

0.06

Total

5.872

85
X2 = ∑ (Oi – Ei) 2
Ei
= 5.872

Degrees of Freedom = (r-1) (c-1)
= (2– 1) (5 – 1)
= 04

The table value of X2 at 5% level of significance and 04 degrees of freedom,
X2 0.05 = 9.49

Inference:
Calculated value is less than table value.
Therefore, H0 is accepted.
Hence, there is no significant relationship between Gender and Department
which prefer to buy the products.

86
3.3 SIMPLE CORRELATION
Correlation between the sales promotional activities carried by Big bazaar
and sales service.

EXCELLENT

GOOD

AVERAGE

POOR

VERY
POOR

X

29

22

42

10

7

Y

40

34

27

8

1

Calculation of simple correlation

X

Y

X2

Y2

XY

29

40

841

1600

1160

22

34

484

1156

748

42

27

1764

729

1134

10

8

100

64

80

7

1

49

1

7

ΣX=110

ΣY=110

ΣX2=3238

ΣY2=3550

ΣXY=3122

87
FORMULA FOR CORRELATION

= ΣXY
√ ΣX2 ΣY2
= 3122
√ 3238*3550
= 0.9209

The value more than 0.5 is said to be highly correlated and the value for this
correlation is 0.9.
So it is highly correlated.

88
3.4 WEIGHTED AVERAGE METHOD

S.No

PARAMETERS

EXCELLENT

GOOD

AVERAGE

POOR

VERY
POOR

1

PAY BACK

2

7

6

0

1

2

MONTHLY SAVING
OFFER

3

11

13

1

1

3

GIFT VOUCHER

1

0

9

1

0

4

BIG DAY OFFERS

21

2

13

2

0

5

OTHER

2

2

1

6

5

WEIGHT GIVEN AS:
EXCELLENT

= 5

GOOD

= 4

AVERAGE

= 3

POOR

= 2

VERY POOR

= 1

89
EXCELLENT

GOOD

AVERAGE

POOR

VERY
POOR

10

28

18

0

2

PAY BACK
MONTHLY SAVING
OFFER

5

44

39

3

GIFT VOUCHER

5

0

4

BIG DAY OFFERS

105

5

OTHER

10

S.No
1

PARAMETERS

WEIGHTED
FACTOR

WEIGHTED
AVERAGE

RANK

1

57

0.51

3

2

1

91

0.82

2

27

2

0

34

0.3

5

8

39

4

0

156

1.42

1

8

3

12

5

38

0.34

4

Inference:
BIG DAY OFFERS
MONTHLY SAVING

-

Rank 1

OFFER
PAY BACK
OTHER
GIFT VOUCHER

-

Rank 2
Rank 3
Rank 4
Rank 5

CHAPTER IV
4.1 FINDINGS
90
•

Majority (27%) of the respondents are in age of 26-30.

•

From the survey, 44% of the respondents are male and 56% of the
respondents are female.

•

From the survey 65% of the respondents are married and 35% of the
respondents are unmarried.

•

From the survey it is evident that 42% are attracts by offer.

•

From the survey it is evident that 51% of the respondents are Neutral
about the advertisement.

•

From the survey it is evident that 48% of the respondents are feeling
News paper is suitable to promote the various promotional schemes.

•

From the survey it is evident that 25% of the respondents are says
need to improvement in Gifts providing to customer to promote.

•

From the survey it is evident that 49% of the respondents are
Excellent thought about the big day offers.

•

65% of customers can understand by signage or display and remaining
35% are not considering it.

•

From the survey it is evident that 33% of the respondents are says
good regarding exchange mela.

•

Many (33%) of respondents are says average regarding T24 free
recharge.

•

Only 02% is highly dissatisfied regarding the price of the products in
Big Bazaar.

•

From the survey it is evident that 34% of the respondents are satisfied
in Big Day offer.
91
•

26% of respondents highly satisfied with the sales promotional
activities carried by the company

•

Only 1% of respondents are very poor regarding opinions about
availability of product in big bazaar.

•

31% of respondents are says Good about the sales service of big
bazaar.

•

47% of the respondents are considering Quality while purchasing a
product in big bazaar.

•

38% of the respondents are prefers Food department to purchase in
Big bazaar.

•

From the survey it is evident that 48% of the respondents are says
Excellent regarding the approach of sales representative in Big bazaar.

•

60% of customers consider promotional schemes and remaining 40%
are not considering it.

•

24% of the customers are choosing big bazaar for their convenient.

•

From the survey it is evident that 39% of the respondents are do the
billings range of 500-1000.

•

From the calculation I found that there is no significant relationship
between Gender and Department which prefer to buy the products.

•

From the analysis I found that for big day, more weight was given,
then for monthly saving offer, after that for pay back and others.

92
4.2 SUGGESTIONS
1. The company should focus on t24 free recharge (Big bazaar telecom
service), because this scheme was not reach for many customers.
Many of the customers are said need better improvement, so that the
employee from t24 department should clearly explain about that.

2. The pay back is also one of the promotional scheme which need better
improvement, so the company can appoint any employee to convey
the details about the payback offer.

3. The ambiance in the company is average for the customers because of
the unwanted background music and irritating sound from the external
and the smell from the bakery are also be rectify in future.

4. The advertisement about the company is also in neutral for most of the
customers so have to give it better way of advertisement like frequent
telecast about the products and offers of the company.

93
5. Do the better way of the exchange mela for the customers like instead
of giving the discount coupons, give any products which worth for the
old one.

4.3 CONCLUSION
In my 60 days study on the sales promotional activities and its
effectiveness at big bazaar, I have concluded the following.
Most of the customers buying decisions are depend on the quality and
lowest price of the products. Most of the customers walk-in to buy the
products from food department of big bazaar. Only monthly savings and big
day (SS5D) offer are very good schemes to promote the sales. It was found
that the company has very good image in customer’s mind.

94
4.4 QUESTIONNAIRES

1. Name :
•

Age : 18 – 21( ) 22 – 25( ) 26 – 30( ) Above 30( )
o

Gender : M ( ) F ( )

o

Qualification : 10th ( ) 12th ( ) Degree ( ) Others( )

o

Marital status : MARRIED ( ) UNMARRIED ( )

o

Occupation :

o

Monthly Income: below 5000( ) 5000 – 10000( ) 10000 –
20000( ) Above 20000 ( )

2. Which factors do you normally consider while purchasing a product in
big bazaar?
• Ambience
• Quality
• Company image
• Price
• Others

3.Which sales promotional activity attracts you more?
• Offer
• Discount on every article
• Gift on purchase
• Prices off
95
• Others

4. What do you think about the price of the products?
• Highly satisfied
• Satisfied
• Moderate
• Dissatisfied
• Highly dissatisfied

5. In which sales promotional activities are you satisfied more in big bazaar?
• Payback offer
• Monthly saving offer
• Gift voucher
• Big day offer(SS5D)
• Others if any

6. In which department you prefer to buy more products in big bazaar
Perambur?
• Food
• Home appliances
• Toys and sports
• Non food (soap, men, grooming)
• Others
96
7. What do you think about the approach of sales representative?
•
•

Excellent
Good

•

Average

•

Bad

•

Very bad Your opinion about

8. Opinion about the sales promotional activities carried by the company?
• Excellent
• Good
• Average
• Poor
• Very poor

9. What is your opinion about the advertisement?
•
•

Highly satisfied
Satisfied

•

Average

•

Dissatisfied

•

Highly Dissatisfied

10. Do you consider promotional schemes while purchasing a product in big
bazaar?
• Yes
97
• No

11. What is your opinion about big bazaar on available of product?
• Excellent
• Good
• Average
• Poor
• Very poor

12. Which medium do you feel is suitable to promote the various
promotional schemes?
• Radio
• TV
• Newspaper
• Hoarding
• Others

13. What do you think about the sales service of big bazaar?
• Excellent
• Good
• Average
• Bad
• Very bad

98
14. Which promotional activities needs better improvement in big bazaar?
• Offer
• Discount
• Gift
• Price
• Others

15. What do you think about Big Day (SS5D) offer?
• Excellent
• Good
• Average
• Poor
• Very poor

16. Why you choosing Big Bazaar?
• Near by home town
• Customer service
•

Company image

•

Low price

• Others
17. Do you understand about the products by signage (or) display?
• Yes
99
• No
18. What do you think about exchange mela?
• Excellent
• Good
• Average
•

Poor

•

Very poor

19. What do you think about T24 free recharge (Big bazaar’s telecom
service)?
• Excellent
• Good
• Average
•

Poor

• Very poor
20. May I know your average billing range in big bazaar, Perambur?
• Below 5000
• 501-1000
• 1000-3000
•

3001-5000

•

Above 5000

100
21. Any suggestions to improve the sales promotional activities in big
bazaar.

---------------------------------THANK YOU-----------------------------

4.5 BIBLIOGRAPHY

Books Referred

101
Research Methodology: C.R. KOTHARI
Research Methodology: C.P.GUPTA
Marketing Management: PHILIP KOTLER
Websites
• www.futuregroup.in
• www.hrsite.com
• www.marketingresearch.com

102

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Sales Promotion Strategies for Indian Retail Industry

  • 1. CHAPTER-I 1.1 INTRODUCTION 1.1.1 SALES PROMOTION Sales are the lifeblood of a business, without sales there would be no business in the first place; therefore it is very important that if a business wants to succeed, it should have a sales promotion strategy in mind. The primary objective of a sales promotion is to improve a company's sales by predicting and modifying your target customer's purchasing behavior and patterns. Sales promotion is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. There are a variety of sales promotional strategies that a business can use to increase their sales, however it is important that we first understand what a sales promotion strategy actually is and why it is so important. A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The importance of a sales promotion strategy cannot be 1
  • 2. underestimated. This is because a sales promotion strategy is important to a business boosting its sales. When developing a sales promotion strategy for your business, it is important that you keep the following points in mind. Consumer attitudes and buying patterns Your brand strategy Your competitive strategy Your advertising strategy And other external factor that can influence your products availability and pricing. 1.1.2 ADVANTAGES OF SALES PROMOTION • Importance to Consumers • Increased Buying Confidence • Distribution of free samples is probably the fastest and best way through which manufacturers can push consumers to try a product. • Once satisfied with the quality of the sample product, consumers become more confident about buying a new product. • Reduced Rates • During promotional campaigns, companies offer their products at discounted rates. 2
  • 3. • Consumers like to make use of such occasions to buy larger quantities of such products. • A sales promotion campaign makes the job of the sales team much easier. Thanks to the offers and sales, customers are positively inclined towards buying a particular product. 1.1.3 METHODS OF SALES PROMOTION Some of the most common methods used in sales promotion strategies include: 1. Coupons 2. Price discounting 3. Gift with purchase offers 4. Sampling 5. Mail in offers and rebates 6. Refund and premium offers 7. Group promotions 8. Frequent user/loyalty incentives 9. Point-of-sale displays 3
  • 4. 1.2 INDUSTRY PROFILE 1.2.1 INDIAN RETAIL INDUSTRY India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling 4
  • 5. complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. 5
  • 6. 1.3 COMPANY PROFILE 1.3.1 FUTURE GROUP The field of study was conducted at Big bazaar a unit of Pantaloon Retail (India) Limited. Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, 6
  • 7. selling home furniture products and eZone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. 1.3.2 Future Group Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a 7
  • 8. hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The group’s specialty retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com. Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future General, the group’s insurance venture in partnership with Italy’s General Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like 8
  • 9. Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group’s joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The group’s flagship company, Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’ 1.3.3 Vision: Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner. 1.3.4 Mission: They share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. 9
  • 10. They shall infuse Indian brands with confidence and renewed ambition. They shall be efficient, cost- conscious and committed to quality in whatever we do. They shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. 1.3.5 Core values: • Indianness: confidence in ourselves. • Leadership: to be a leader, both in thought and business. • Respect & Humility: to respect every individual and be humble in our conduct. • Introspection: leading to purposeful thinking. • Openness: to be open and receptive to new ideas, knowledge and information. • Valuing and Nurturing Relationships: to build long term relationships. • Simplicity & Positivity: Simplicity and positivity in our thought, business and action. • Adaptability: to be flexible and adaptable, to meet challenges. • Flow: to respect and understand the universal laws of nature. 1.3.6 Major Milestones 10
  • 11. 2001- Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. 2002- Food Bazaar, the supermarket chain is launched. 2004- Central - India’s first seamless mall is launched in Bangalore. 2005- Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls. 2006- Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products. Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, General Forms joint ventures with US office stationery retailer, Staples. 2007- Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retailled technology services become operational. 2008- Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational 11
  • 12. retail space crosses 10 million square feet mark. Future Group acquires rural retail chain, Aadhar present in 65 rural locations. 1.3.7 Passion for Retail At Pantaloon Retail, Empowerment is what you acquire and Freedom at Work is what you get. They believe the most valuable assets are People. Young in spirit, adventurous in action, with an average age of 27 years, our skilled & qualified professionals work in an environment where change is the only constant. Powered by the desire to create path-breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference to Customers’ lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at Pantaloon Retail and living with the change, a habit. Leadership is a value that is followed by one and all at Pantaloon Retail. Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. In the quest of creating an Indian model of retailing, Pantaloon Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has 12
  • 13. given us the optimism to change and be successful at it. We do not predict the future, but create it. At Pantaloon Retail you will get an opportunity to handle multiple responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards. Pantaloon Retail is not just an organization - it is an institution, a centre of learning & development. We believe that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering. At Pantaloon Retail, we take pride in challenging conventions and thinking out of the box, in travelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain Values’ is derived from this spirit. Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership value, the 13
  • 14. company launched all in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women. Today we are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up. The way we work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality - that change people’s lives, is our biggest advantage. Pantaloon is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an opportunity to take risks, and it is this passion that makes our dreams a reality. 1.3.8 BIG BAZAAR Big bazaar, Pondy Bazaar was the second store to make an impact in the minds of the customer. It was opened in the month of June, 2008. Situated in the midst of an IT hub, it welcomes customers with exciting offers and discounts. Pondy bazaar is among the few areas in Chennai that is full of activities with shopping malls, eat out joints, restaurants etc. This also brings a lot of competition for the store. Measures are taken to retain the customers by training the employees to be polite and vigilant. 1.3.9 The various departments in the store are as follows • Food bazaar department 14
  • 15. • Cash department • Plastics, Utensils and Crockery • Appliances • Footwear • New Business Developments • Depot • Home Linen • Furniture • Apparels • Visual merchandise • Human Resource • Administration • Ware house / Logistics • Maintenance • Luggage • Customer Service Department. 15
  • 16. 1.4 REVIEW OF LITERATURE 1.4.1 Promotion & Consumption Does consumption respond to promotion? Many studies have focused on the effects of promotion on brand switching, purchase quantity, and stockpiling and have documented that promotion makes consumers switch brands and purchase earlier or more. The consumers‘consumption decision has long been ignored, and it remains unclear how promotion affects consumption (Blattberg et al. 1995). Emerging literature in behavioural and economic theory has provided supporting evidence that consumption for some product categories responds to promotion. Using an experimental approach, Wansink (1996) establishes that significant holding costs pressure consumers to consume more of the product. Wansink and Deshpande (1994) show that when the product is perceived as widely substitutable, consumers will consume more of it in place of its close substitutes. They also show that higher perishability increases consumption rates. Adopting scarcity theory, Folkes et al. (1993) 16
  • 17. show that consumers curb consumption of products when supply is limited because they perceive smaller quantities as more valuable. Chandon and Wansink (2002) show that stockpiling increases consumption of high convenience productsmore than that of low-convenience products. 1.4.2 Sales Promotion and Consumer Response/ Preference Consumer promotions are now more pervasive than ever. Witness 215 billion manufacturer coupons distributed in 1986, up 500% in the last decade (Manufacturers Coupon Control Center 1988), and manufacturer expenditures on trade incentives to feature or display brands totalling more than $20 billion in the same year, up 800% in the last decade (Alsop 1986; Kessler 1986). So far, not much work has been done to identify the purchasing strategies that consumers adopt in response to particular promotions, or to study how pervasive these strategies are in a population of interest. Blattberg, Peacock and Sen (1976) define a purchase strategy as a general buying pattern which "incorporates several dimensions of buying behaviour such as brand loyalty, private brand proneness and deal proneness." A greater understanding of the different types of consumer responses to promotions can help managers to develop effective promotional programs as well as provide new insights for consumer behaviour theorists who seek to understand the influence of different types of environmental cues on consumer behaviour. 17
  • 18. Blattberg, Eppen, and Liebermann (1981), Gupta (1988), Neslin, Henderson, and Quelch (1985), Shoemaker (1979), Ward and Davis (1978), and Wilson, Newman,and Hastak (1979) find evidence that promotions are associated with purchase acceleration in terms of an increase in quantity purchased and, to a lesser extent, decreased inter purchase timing. Researchers studying the brand choice decision-for example, Guadagni and Little (1983) and Gupta (1988)-have found promotions to be associated with brand switching. Montgomery (1971), Schneider and Currim (1990), and Webster (1965) found that promotion-prone households were associated with lower levels of brand loyalty. According to Rust, Ambler, Carpenter, Kumar, & Srivastava (2004), it is important to measure marketing asset of a firm which they define as customer focused measures of the value of the firm (and its offerings) that may enhance the firm‘s long-term value. To measure this, they focus on two approaches: brand equity and customer equity. Measuring brand equity deals with the measurement of intangible marketing concepts, such as product image reputation and brand loyalty. Rajagopal (2008) supports the view of measuring the marketing asset of a firm and highlights that the major advantage of a brand measurement system is that it links brand management and business performance of the firm and is a strategic management tool for continuous improvement rather than a static snapshot in time of the brand‘s performance. Davis (2002) adds that brands should be managed as assets using a top down approach where senior executives embrace the concept that marketing should have a leading seat at the strategy table and use the brands to drive key strategic decisions. Also if senior executives are vocal and show 18
  • 19. commitment to the brands, then employees within an organization will start taking ownership of the brand. 1.4.3 Sales Promotion Types and Preferences At this point, it is useful to define what mean by the terms "expected price" and "price promotion." Following Thaler (1985), it is viewed that the price consumers‘ use as a reference in making purchase decisions as the price they expect to pay prior to a purchase occasion. Further, the expected price may also be called the "internal reference price" (Klein and Oglethorpe 1987) as opposed to an external reference price such as the manufacturers' suggested list price. Finally, a brand is on price promotion when it is offered with a temporary price cut that is featured in newspaper advertising and/ or brought to consumers' attention with a store display sign. The price expectations hypothesis has been used to provide an alternative explanation for the observed adverse long-term effect of price promotions on brand choice (Kalwani et al. 1990). Previous research has shown that repeat purchase probabilities of a brand after a promotional purchase are lower than the corresponding values after a non promotional purchase (Dodson, Tybout, and Sternthal 1978; Guadagni and Little 1983; Shoemaker and Shoaf 1977). Dodson, Tybout, and Sternthal evoke selfperception theory to predict that if a purchase is induced by an external cause (such as a price promotion) as opposed to an internal cause (e.g., the brand will be reduced when the external cause is removed. Promotional purchases". The behaviour of households that have low probabilities of buying a brand upon the retraction of a deal can be explained 19
  • 20. readily in a price expectation framework. It has been suggested that the price they expect to pay for the brand may be close to the deal price and they may forego purchasing the focal brand when it is not promoted because its retail price far exceeds what they expect to pay for it. It has been investigated that the impact of price promotions on consumers' price expectations and brand choice in an interactive computer-controlled experiment. Manohar U. Kalwani and Chi Kin Yim discussed that expected prices were elicited directly from respondents in the experiment and used in the empirical investigations of the impact of price promotions on consumers' price expectations. Further, rather than studying the impact of just a single price pro- motion and its retraction, they assessed the significance of the dynamic or long-term effects of a sequence of price promotions. They have concluded that both the price promotion frequency and the size of price discounts have a significant adverse impact on a brand's expected price. Consistent with the findings of Raman and Bass (1988) and Gurumurthy and Little (1989), they also found evidence in support of a region of relative price insensitivityaround the expected price such that changes in price within that region produce no pronounced change in consumers' perceptions. Price changes outside that region, however, are found to have a significant effect on consumer response. Further, they discussed that promotion expectations are just as important as price expectations in understanding consumer purchase behaviour. In particular, consumers who have been exposed to frequent price promotions in support of a given brand may come to form promotion expectations and typically will purchase the brand only when it is price promoted. Added to it, in the case of price expectations, consumer response to promotion expectations was asymmetric in that losses loom larger than gains. 20
  • 21. Applying Helson's (1964) adaptation-level theory to price perceptions, Sawyer and Dickson (1984) suggest that price promotions may work in the short run because consumers may use the brand's regular price as a reference and then are induced by the lower deal price to purchase the brand. However, frequent temporary price promotions may also lower the brand's expected price and lead consumers to defer purchases of the brand when it is offered at the regular price. Tversky and Kahneman (1974) have shown that people rely on a limited number of heuristic principles that reduce complex tasks of assessing probabilities and predicting values to simpler judgmental operations. In some cases, people may anchor and adjust their forecasts by starting with a preconceived point and weigh that point heavily in arriving at a judgment. When the frequency of past price promotions is "very low," consumers identify a price promotion offer as an exceptional event and may not modify the brand's expected price. The brand's expected price then will be anchored around the regular price because of insufficient adjustment. In other cases, people may arrive at a judgment on the basis of how similar or representative the event is to a class of events. Therefore, when a brand is price promoted "too often," consumers come to expect a deal with each purchase and hence expect to pay only the discounted price on the basis of its representativeness. Davis, Inman, and McAlister (1992) also examine the difference between pre and post promotion brand evaluations at the individual level but find no evidence that price promotions affect evaluations for frequently purchased branded packaged goods. Across three promoting brands in each of four different product categories, evaluators of promoted brands in the post promotional period are not found to be lower than in the pre 21
  • 22. promotional period, The studies by Scott and colleagues indicate that promotions have a damaging effect on post trial evaluations, whereas Davis, Inman, and McAlister's study suggests that the impact of promotions on brand evaluations in these packaged goods categories is, on average, nonexistent. 1.4.4 The Valence of a Promotion The price-quality literature has found that a relatively lower price generally is interpreted as an indicator of inferior quality and that this effect is magnified when only price information is available to make a judgment (e.g., Etgar and Malhotra 1981; Monroe and Petroshius 1981; Olson 1977; Rao and Monroe 1988). Although the economic aspect of price leads to reduced demand at higher prices, the quality inference leads to enhanced demand at higher prices or requires a trade-off between price and inferred quality (Hagerty 1978; Levin and Johnson 1984). The extent to which consumers use price as an indicator of quality depends on the availability of alternative diagnostic information (Szybillo and Jacoby 1974). Rao and Monroe (19B8) find evidence that, with increased product familiarity, people increasingly used intrinsic (versus extrinsic) product quality cues to make quality judgments. The greater the amount of other information available, the smaller will be the effect of price on perceived quality (Rao and Monroe 1988). Because price promotions reduce price and because lower prices are associated with lower quality, we predict that when 22
  • 23. other information diagnostic of quality is not available, offering price promotions will lead to inferences of lower quality. Similarly, Lichtenstein and Bearden (1986) examine product, circumstance, and person attributions for a promotion. They find that product attributions were valenced negatively, for example, "because the car is inferior" and "because the car has poor styling." Therefore, if consumers undertake attributional thinking when exposed to a price promotion and if these attributions are to the brand, the attributions are more likely to lead to unfavourable brand evaluations. 1.4.5 When Promotion is Informative The preceding leads to the question: What is the likelihood that a given promotion will be attributed to brand related factors rather than external, situational factors? Attribution theorists, starting with Heider (1958), have found that observers attribute another person's behaviour to intrinsic or dispositional qualities rather than to situational factors, even when the behaviour easily could be explainable by the latter. This phenomenon, called the "fundamental attribution error" (or "correspondent inference theory"; Jones and Davis 1965), predicts that consumers attribute promotional behaviour to the disposition of the brand rather than industry characteristics. Thus, because consumers are more likely to attribute promotions to brand-related (versus industry-related) factors and because these factors are typically negative, offering a promotion should affect brand evaluations unfavourably. To illustrate, if a brand that has been promoted frequently in the past is promoted currently, the current promotion conveys little that is new about the brand to consumers, and they are not likely to give the current behaviour 23
  • 24. much thought. Conversely, if a brand that has never been promoted in the past is promoted, this is informative and more likely to lead to a re evaluation of the brand. This construct, formally termed "consistency" in the attribution literature, has been shown to affect the extent to which people make personality inferences about another person given his or her actions (Einhorn and Hogarth 1986; Hastie 1984; Hilton and Slugoski 1986; Jones and Davis 1965; Kelly 1967, 1972). Consistent with this logic, in the context of reference prices, Lichtenstein and Bearden (1989) find that consumers' price perceptions were dependent on the consistency of merchants' price claim policies. Consumers should find promotional behaviour more informative of a brand's quality when it is inconsistent with past behaviour than when it is consistent. The valence (the intrinsic positive or negative characteristic) of a behaviour has been well researched in social psychology and shown to affect the salience (Fiske 1980) and the processing of information (Fiske 1980; Skowronski and Carlston 1989), Taylor (1991) summarizes the differential effects of positive and negative information, arguing that they have asymmetric effects. These effects include, for example, that negative experiences are elaborated upon more than positive experiences, that people search more for negative (versus positive) information when making judgments, and that they weight this information more heavily because they find it more diagnostic than positive information (e.g., Fiske 1980; Hamilton and Zanna 1972. 1974; Herr, Kardes, and Kim 1991; Kanouse and Hanson 1972). 1.4.6 Promotion Thresholds A promotion threshold is the minimum value of price discount required to change consumers' intentions to buy. The concept of a threshold 24
  • 25. can be related to the psychological process of discrimination in which a consumer would not react to stimuli unless the perceived changes were above a just noticeable difference (Luce and Edwards 1958). The concept of a threshold is widely recognized and acknowledged by both researchers and practitioners. In the context of advertising effectiveness, Eastlack and Rao (1986) showed that a minimum level of advertising is needed before advertising has any significant impact on sales. The use of the well-known S-shaped response function also testifies to the acceptability of the threshold concept. On the basis of assimilation-contrast theory, Gurumurthy and Little (1989) argue for the existence of a price threshold. They suggest that consumers have latitude of acceptance around their reference price. Therefore, small price differences within this range or latitude are less likely to be noticed than prices above or below this range. Kalwani and Yim (1992) found evidence in support of a region of relative price insensitivity around the reference price, such that only price changes outside this region had a significant impact on consumer brand choice. Many managers also believe that price reductions of about 15 percent are needed to attract consumers to a sale (Della Bitta and Monroe 1980). Therefore, Sunil Gupta and Lee G. Cooper (1992) proposed that promotion thresholds exist such that consumers do not change their intention to buy the product unless the price reduction is greater than some threshold value. 25
  • 26. CHAPTER II 2.1 SCOPE OF STUDY • The study covers to identify the effectiveness of sales promotional tools which carried by big bazaar, perambur. • Increase the sales level by increasing tempo level. • The fulfillment of the customers’ preference & expectations. • To find out the purchasing tendency of the customers 26
  • 27. 2.2 NEED FOR THE STUDY • Presently all companies are giving very attractive schemes to their customers and this study is aimed at, what is in the mind of customers with reference to the sale/purchase, their expectations ,in order to increase the sales of big bazaar, perambur. • Since there are very few companies in the market, the competition among the companies has hottened up. All players in this market are trying to prove them selves as a leader. But only companies, which give the superiority quality products with high competitive pricing and attractive promotional schemer, only can able to be the market leader. 27
  • 28. 2.3 OBJECTIVE OF THE STUDY PRIMARY OBJECTIVE • To find out the sales promotional activities carried by big bazaar. SECONDARY OBJECTIVES o To find out the tools and techniques of sales promotion that used in big bazaar. o To know the level of satisfaction towards the sales promotional activities carried by big bazaar 28
  • 29. o To identify the factors influencing to buy the product in big bazaar. o To give the suggestion for improve the sales promotion in competitive market. 2.4 LIMITATION OF THE STUDY • Since the survey has been conducted to the customers of the big bazaar, perambur only. • The period of the study is only 60days. • It’s very difficult to cover the entire market. • Most of the customers show hesitations to respond. • Only 110 customers are taken as sample for the study. 29
  • 30. 2.5 Research Methodology 2.5.1 OVERVIEW OF RESEARCH METHODOLOGY Research type Descriptive research Population size Customers Of Big Bazaar, Perambur Sampling techniques Convenience sampling Sampling area Perambur Sampling size 110 Data collection instrument Questionnaire 30
  • 31. Data collection Primary Questionnaire Secondary Journals, websites, books Statistical tool Chi square, Simple percentage, Weighted average, Simple Correlation 2.5.2 Descriptive Research Descriptive Research is the process of finding solutions for a problem after a tough study and analysis of situational factors. It tries to solve a complex and complicated problems through uses of various tools and techniques. These tools and techniques try to bring out a logical accurate and scientific solution for a given problem. 2.5.3 Research Design Research Design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose economy in procedure in fact the research design is the conceptual structure within which research is conducted. It constitutes the blue print for the collection and analysis of data. The research design adapted in the study was descriptive study. 2.5.4 Sampling Technique 31
  • 32. The sampling technique which was used is convenience sampling. SOURCES OF DATA The two main sources of data for the present study been used are primary and secondary data. PRIMARY DATA This data was collected from the respondents. SECONDARY DATA Under this the sources were taken from books, company brochures and internet for this study. SAMPLING DESIGN A sampling design is a define plan for obtaining a sample from a given population. It refers to the technique or the procedure, the research would adopt in selecting items for the sample. Sample is the process of selecting a sufficient number of elements from the population, so that a study of the sample and an understanding of its properties or characteristics would make it possible for us to generalize such properties or characteristics to the population elements. SAMPLE POPULATION My sample population is the customers of the big bazaar, perambur. 32
  • 33. SAMPLE SIZE Considering the nature and extent of the study and with the time constraint a sample size of “110”respondents have been taken. CHAPTER III METHODOLOGY AND FRAMEWORK Statistical tools used for data analysis The following tools were used for data analysis and interpretation. i. Percentage method ii. Chi- square analysis iii. Simple Correlation iv. Weighted average method Percentage method Percentage refers to a special kind of ration. Percentage is used in making comparisons between two or more series of data. Percentage is used to 33
  • 34. describe relationships. Percentage can also used to compare the relative terms the distribution of two or more series of data. Chi- square test The objective of the Chi- square analysis is to determine whether real on significant differences exist among various groups. It helps to find out whether two (or) more attributes are associated (or) not whether the attributes are dependent (or) independent. Chi – square test involves a comparison of expected frequency (Ei) with the observed frequency (Oi). Simple correlation When two variables are studied it is a simple correlation. DATA ANALYSIS AND INTERPRETATION Table-3.1.1 Classification of respondents based on age S.No Particulars No of respondents % of respondents 1 18-21 18 17 2 22-25 22 20 3 26-30 30 27 4 31-45 19 17 5 Above 35 21 19 6 Total 110 100 34
  • 35. Source: Primary Data Inference: Majority (27%) of the respondents are in age of 26-30, 20 % of the respondents are in the age of 22-25, 19% of the respondents are in the age of above 35, 17% of the respondents are in the age of 21-25 &18-21. Chart-3.1.1 Classification of respondents based on age 35
  • 36. TABLE- 3.1.2 Classification of respondents based on gender 36
  • 37. s. no Particulars No. of. Respondents % of respondents 1 Male 48 44 2 Female 62 56 3 Total 110 100 Source: Primary Data Inference: From the survey, 44% of the respondents are male and 56% of the respondents are female. CHART- 3.1.2 Classification of respondents based on gender 37
  • 38. TABLE- 3.1.3 Classification of respondents based on marital status s. no Particulars No. of. 38 % of respondents
  • 39. Respondents 1 Married 72 65 2 Unmarried 38 35 3 Total 110 100 Source: Primary Data Inference: From the survey 65% of the respondents are married and 35% of the respondents are female. CHART- 3.1.3 Classification of respondents based on marital status 39
  • 41. S.NO Qualification No. of Respondent Percentage 1. 10th 5 5 2. 12th 18 16 3. Degree 72 65 4. Others 15 14 Total 110 100 Source: Primary Data Inference 65% of the respondents are degree holders, 16% of the respondents are 12 th, 14% are the other qualification, 5% are 10 th. CHART-3.1.4 Qualification of the respondent 41
  • 43. S.NO Customers income No. of Respondent Percentage 1. Below 5000 06 5 2. 5001-10000 22 20 3. 10001-20000 48 44 4. Above 20000 34 31 Total 110 100 Source: Primary Data Inference: 44% of the respondents are earning 10001-20000,31% are above 20000,20% of them are 5001-10000,5% are below 5000. CHART-3.1.5 Monthly Income of the respondent 43
  • 45. s.no particulars No of Respondents % of Respondents 1 Fragrance 20 18 2 Quality 52 47 3 Company image 13 12 4 Price 20 18 5 Other 5 5 6 total 110 100 Source: Primary Data Inference: From the survey it is evident that 47% of the respondents are consider Quality, 18% of respondents Fragrance and quality, 12% are in company image, 05% of respondents are for others . CHART-3.1.6 Factors normally consider while purchasing a product in big bazaar 45
  • 47. s.no particulars No of Respondents % of Respondents 1 Offer 46 42 2 Discounts 40 36 3 Gift 11 10 4 Price 10 9 5 Other 03 3 6 total 110 100 Source: Primary Data Inference: From the survey it is evident that 42% are attracts by offer, 36% are attracts by Discounts, 10% are attracts by Gift, 9% are attracts by price and 03% are attracts by other promotional activities in Big Bazaar. CHART-3.1.7 Sales promotional activity attracts you more 47
  • 48. TABLE-3.1.8 Thought about the price of the products 48
  • 49. S. no Particulars No. of respondents % of respondents 1 Highly satisfied 27 25 2 Satisfied 41 37 3 Neutral 31 28 4 Dissatisfied 9 08 5 Highly dissatisfied 2 02 6 total 110 100 Source: Primary Data Inference: From the survey it is evident that 37% of the respondents are satisfied, 28% of respondents Neutral, 25% are highly satisfied, 08% of respondents are dissatisfied and 02% is highly dissatisfied regarding the price of the products in Big Bazaar. CHART-3.1.8 Thought about the price of the products 49
  • 51. Sales promotional activities the customer satisfied more in big bazaar s.no particulars No of Respondents % of Respondents 1 Payback Offer 16 15 2 Monthly savings 29 26 3 Gift voucher 11 10 4 Big day offer 38 34 5 Other 16 15 6 total 110 100 Source: Primary Data Inference: From the survey it is evident that 34% of the respondents are satisfied in Big Day offer, 26% of respondents are satisfied in Monthly saving offer, 15% are satisfied with Payback Offer, 15% of respondents’ are satisfied with Other promotional scheme and 10% is satisfied with Gift voucher. CHART-3.1.9 51
  • 52. Sales promotional activities the customer satisfied more in big bazaar TABLE-3.1.10 52
  • 53. Departments that customer prefer to buy more products in big bazaar s.no particulars No of Respondents % of Respondents 1 Food 42 38 2 Home appliances 14 13 3 Toys and sports 21 19 4 Non food 26 24 5 Other 07 6 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 38% of the respondents are prefers Food department, 24% of the respondents are prefers Non food department 19% of respondents are prefer Toys and sports, 13% of the respondents are prefers Home appliances, 6% of respondents are prefers other that above shown. CHART-3.1.10 53
  • 54. Departments that customer prefer to buy more products in big bazaar TABLE-3.1.11 54
  • 55. The approach of sales representative in Big bazaar S. no Particulars No. of respondents % of respondents 1 Excellent 53 48 2 Good 36 33 3 Average 12 11 4 Poor 09 8 0 0 250 100 5 Very poor 6 Total Source: Primary Data Inference: From the survey it is evident that 48% of the respondents are Excellent, 33% of respondents good, 11% are average, and 08% of respondents are poor regarding the approach of sales representative in big bazaar CHART-3.1.11 55
  • 56. The approach of sales representative in Big bazaar TABLE-3.1.12 56
  • 57. Satisfaction levels with the sales promotional activities carried out by the company S. no Particulars No. of respondents % of respondents 1 Excellent 29 26 2 Good 22 20 3 Average 42 38 4 Poor 10 09 5 Very Poor 07 06 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 38% of the respondents are Neutral, 26% of respondents highly satisfied, 20% are satisfied, 9% of respondents are dissatisfied and 6% is highly dissatisfied regarding satisfaction levels with the sales promotional activities carried by the company. CHART-3.1.12 57
  • 58. Satisfaction levels with the sales promotional activities carried by the company % of respondents 40 35 30 25 20 % of respondents 15 10 5 0 Excellent Good Average Poor Very Poor TABLE-3.1.13 58
  • 59. Customer opinions about the advertisement S. no Particulars No. of respondents % of respondents 1 Highly satisfied 05 05 2 Satisfied 17 15 3 Neutral 56 51 4 Dissatisfied 20 18 5 Highly dissatisfied 12 11 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 51% of the respondents are Neutral, 18% of respondents dissatisfied, 15% are satisfied, 11% of respondents are highly dissatisfied and 5% is highly satisfied regarding customer opinions about the advertisement. CHART-3.1.13 59
  • 60. Customer opinions about the advertisement 60
  • 61. TABLE-3.1.14 Customer consideration about promotional schemes while purchasing a product s.no particulars No of Respondents % of Respondents 1 Yes 66 60 2 No 44 40 3 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 60% of customers consider promotional schemes and remaining 40% are not considering it. 61
  • 62. CHART-3.1.14 Customer consideration about promotional schemes while purchasing a product 62
  • 63. TABLE-3.1.15 Opinions about big bazaar in customer point of view in availability of products S. no Particulars No. of respondents % of respondents 1 Excellent 33 30 2 Good 41 37 3 Average 32 29 4 Poor 03 03 5 Very poor 01 01 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 37% of the respondents are good, 30% of respondents Excellent, 29% are average, 03% of respondents are poor and1% of respondents are very poor regarding opinions about availability of product in big bazaar. 63
  • 64. CHART-3.1.15 Opinions about big bazaar in customer point of view in availability of products 64
  • 65. TABLE-3.1.16 Medium do you feel is suitable to promote the various promotional schemes S. no Particulars No. of respondents % of respondents 1 Radio 03 03 2 TV 27 25 3 News paper 53 48 4 Posters and banners 17 15 5 Others 10 09 6 total 110 100 Source: Primary Data Inference: From the survey it is evident that 48% of the respondents are feeling News paper is suitable to promote the various promotional schemes, 25% of respondents are by TV, 15% are by posters and banners, 09% of respondents are by other than the above shown and 3% are by radio. 65
  • 66. CHART-3.1.16 Medium do you feel is suitable to promote the various promotional schemes 66
  • 67. TABLE-3.1.17 Thought about the sales service of big bazaar S. no Particulars No. of respondents % of respondents 1 Excellent 40 36 2 Good 34 31 3 Average 27 25 4 Poor 08 07 5 Very poor 01 01 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 36% of the respondents are Excellent, 31% of respondents Good, 25% are average, 07% of respondents are poor and1% of respondents are very poor for thought about the sales service of big bazaar. 67
  • 68. CHART-3.1.17 Thought about the sales service of big bazaar 68
  • 69. TABLE-3.1.18 Promotional activities needs better improvement in big bazaar S. no Particulars No. of respondents % of respondents 1 Offer 24 22 2 Discount 26 24 3 Gift 27 25 4 Price 22 20 5 other 11 10 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 25% of the respondents are says need to improvement in Gifts, 24% of respondents says in Discount, 22% are says in offer, 20% of respondents are in Price and 10% are says in other than the above shown. 69
  • 70. CHART-3.1.18 Promotional activities needs better improvement in big bazaar 70
  • 71. TABLE-3.1.19 Customers thought about the big day offers S. no Particulars No. of respondents % of respondents 1 Excellent 54 49 2 Good 36 33 3 Average 20 18 4 Poor 0 0 5 Very poor 0 0 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 49% of the respondents are Excellent, 33% of respondents Good, 18% are average, 0% of respondents are poor and0% of respondents are very poor for thought about the big day offer in big bazaar. 71
  • 72. CHART-3.1.19 Customers thought about the big day offers 72
  • 73. TABLE-3.1.20 Customer choosing big bazaar Perambur S. no Particulars No. of respondents % of respondents 1 Near by home town 26 24 2 Customer service 34 31 3 Good will 29 26 4 Lowest Price 8 7 5 other 13 12 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 31 % of the respondents are choosing big bazaar for Customer service, 26% of respondents are choosing for Good will of the company, 24% are for their convenient , 12% of respondents are for other than the above shown options and 07% are choosing Big bazaar for the lowest price. 73
  • 75. TABLE-3.1.21 Signage or display convey about the product s.no particulars No of Respondents % of Respondents 1 Yes 71 65 2 No 39 35 3 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 65% of customers can understand by signage or display and remaining 35% are not considering it. 75
  • 76. CHART-3.1.21 Signage or display convey about the product 76
  • 77. TABLE-3.1.22 Thought about exchange mela S. no Particulars No. of respondents % of respondents 1 Excellent 19 17 2 Good 36 33 3 Average 34 31 4 Poor 20 18 5 Very poor 01 1 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 33% of the respondents are good, 31% of respondents Average, 18% are says Poor, 17% of respondents Excellent, 01 are Very Poor are regarding thought about exchange mela. 77
  • 78. CHART-3.1.22 Thought about exchange mela % of respondents 35 30 25 20 % of respondents 15 10 5 0 Excellent Good Average Poor 78 Very poor
  • 79. TABLE-3.1.23 Thought about T24 free recharge S. no Particulars No. of respondents % of respondents 1 Excellent 09 08 2 Good 42 38 3 Average 36 33 4 Poor 15 14 5 Very poor 08 07 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 38% of the respondents are good, 33% of respondents Average, 14% are said Poor, 08% of respondents Excellent, 07 are Very Poor are regarding thought about T24 free recharge. 79
  • 80. CHART-3.1.23 Thought about T24 free recharge % of respondents 40 35 30 25 20 % of respondents 15 10 5 0 Excellent Good Average Poor 80 Very poor
  • 81. TABLE-3.1.24 Average billing ranges in Big Bazaar S. no Particulars No. of respondents % of respondents 1 Below 500 28 25 2 500-1000 43 39 3 1001-3000 20 18 4 3001-5000 14 13 5 Above 5000 05 05 6 Total 110 100 Source: Primary Data Inference: From the survey it is evident that 39% of the respondents are do the billing range of 500-1000, 25% of respondents are in the range of Below 500 , 18% 81
  • 82. are in 1001-3000, 13% of respondents in 3001-5000, 05% are do above 5000. CHART-3.1.24 Average billing ranges in Big Bazaar 82
  • 83. 3.2. Chi-Square Analysis 3.2.1 Analysis between Gender and Department which prefer to buy the products Hypothesis H0 : There is no significant relationship between Gender and Department which prefer to buy the products. H1: There is significant relationship between Gender and Department which prefer to buy the products. Table 3.2.1 Analysis between Gender and Department which prefer to buy the products Gender Department prefer to buy 83
  • 84. Home Food appliances Toys and sports Non Food Other Total Male 16 05 08 16 3 48 Female 26 9 13 10 04 62 Total 42 14 21 26 07 110 Expected frequency Department prefer to buy Gender Home Food appliances Toys and sports Non Food Other Total Male 18.33 6.11 9.16 11.35 3.05 48 Female 23.67 7.89 11.84 14.65 3.95 62 (Oi – Ei) 2 (Oi – Ei) 2/Ei Oi Ei 16 18.33 5.43 0.29 05 6.11 1.23 0.20 08 9.16 1.35 0.15 16 11.35 21.62 1.90 03 3.05 0.25 0.082 26 23.67 5.43 1.48 84
  • 86. X2 = ∑ (Oi – Ei) 2 Ei = 5.872 Degrees of Freedom = (r-1) (c-1) = (2– 1) (5 – 1) = 04 The table value of X2 at 5% level of significance and 04 degrees of freedom, X2 0.05 = 9.49 Inference: Calculated value is less than table value. Therefore, H0 is accepted. Hence, there is no significant relationship between Gender and Department which prefer to buy the products. 86
  • 87. 3.3 SIMPLE CORRELATION Correlation between the sales promotional activities carried by Big bazaar and sales service. EXCELLENT GOOD AVERAGE POOR VERY POOR X 29 22 42 10 7 Y 40 34 27 8 1 Calculation of simple correlation X Y X2 Y2 XY 29 40 841 1600 1160 22 34 484 1156 748 42 27 1764 729 1134 10 8 100 64 80 7 1 49 1 7 ΣX=110 ΣY=110 ΣX2=3238 ΣY2=3550 ΣXY=3122 87
  • 88. FORMULA FOR CORRELATION = ΣXY √ ΣX2 ΣY2 = 3122 √ 3238*3550 = 0.9209 The value more than 0.5 is said to be highly correlated and the value for this correlation is 0.9. So it is highly correlated. 88
  • 89. 3.4 WEIGHTED AVERAGE METHOD S.No PARAMETERS EXCELLENT GOOD AVERAGE POOR VERY POOR 1 PAY BACK 2 7 6 0 1 2 MONTHLY SAVING OFFER 3 11 13 1 1 3 GIFT VOUCHER 1 0 9 1 0 4 BIG DAY OFFERS 21 2 13 2 0 5 OTHER 2 2 1 6 5 WEIGHT GIVEN AS: EXCELLENT = 5 GOOD = 4 AVERAGE = 3 POOR = 2 VERY POOR = 1 89
  • 90. EXCELLENT GOOD AVERAGE POOR VERY POOR 10 28 18 0 2 PAY BACK MONTHLY SAVING OFFER 5 44 39 3 GIFT VOUCHER 5 0 4 BIG DAY OFFERS 105 5 OTHER 10 S.No 1 PARAMETERS WEIGHTED FACTOR WEIGHTED AVERAGE RANK 1 57 0.51 3 2 1 91 0.82 2 27 2 0 34 0.3 5 8 39 4 0 156 1.42 1 8 3 12 5 38 0.34 4 Inference: BIG DAY OFFERS MONTHLY SAVING - Rank 1 OFFER PAY BACK OTHER GIFT VOUCHER - Rank 2 Rank 3 Rank 4 Rank 5 CHAPTER IV 4.1 FINDINGS 90
  • 91. • Majority (27%) of the respondents are in age of 26-30. • From the survey, 44% of the respondents are male and 56% of the respondents are female. • From the survey 65% of the respondents are married and 35% of the respondents are unmarried. • From the survey it is evident that 42% are attracts by offer. • From the survey it is evident that 51% of the respondents are Neutral about the advertisement. • From the survey it is evident that 48% of the respondents are feeling News paper is suitable to promote the various promotional schemes. • From the survey it is evident that 25% of the respondents are says need to improvement in Gifts providing to customer to promote. • From the survey it is evident that 49% of the respondents are Excellent thought about the big day offers. • 65% of customers can understand by signage or display and remaining 35% are not considering it. • From the survey it is evident that 33% of the respondents are says good regarding exchange mela. • Many (33%) of respondents are says average regarding T24 free recharge. • Only 02% is highly dissatisfied regarding the price of the products in Big Bazaar. • From the survey it is evident that 34% of the respondents are satisfied in Big Day offer. 91
  • 92. • 26% of respondents highly satisfied with the sales promotional activities carried by the company • Only 1% of respondents are very poor regarding opinions about availability of product in big bazaar. • 31% of respondents are says Good about the sales service of big bazaar. • 47% of the respondents are considering Quality while purchasing a product in big bazaar. • 38% of the respondents are prefers Food department to purchase in Big bazaar. • From the survey it is evident that 48% of the respondents are says Excellent regarding the approach of sales representative in Big bazaar. • 60% of customers consider promotional schemes and remaining 40% are not considering it. • 24% of the customers are choosing big bazaar for their convenient. • From the survey it is evident that 39% of the respondents are do the billings range of 500-1000. • From the calculation I found that there is no significant relationship between Gender and Department which prefer to buy the products. • From the analysis I found that for big day, more weight was given, then for monthly saving offer, after that for pay back and others. 92
  • 93. 4.2 SUGGESTIONS 1. The company should focus on t24 free recharge (Big bazaar telecom service), because this scheme was not reach for many customers. Many of the customers are said need better improvement, so that the employee from t24 department should clearly explain about that. 2. The pay back is also one of the promotional scheme which need better improvement, so the company can appoint any employee to convey the details about the payback offer. 3. The ambiance in the company is average for the customers because of the unwanted background music and irritating sound from the external and the smell from the bakery are also be rectify in future. 4. The advertisement about the company is also in neutral for most of the customers so have to give it better way of advertisement like frequent telecast about the products and offers of the company. 93
  • 94. 5. Do the better way of the exchange mela for the customers like instead of giving the discount coupons, give any products which worth for the old one. 4.3 CONCLUSION In my 60 days study on the sales promotional activities and its effectiveness at big bazaar, I have concluded the following. Most of the customers buying decisions are depend on the quality and lowest price of the products. Most of the customers walk-in to buy the products from food department of big bazaar. Only monthly savings and big day (SS5D) offer are very good schemes to promote the sales. It was found that the company has very good image in customer’s mind. 94
  • 95. 4.4 QUESTIONNAIRES 1. Name : • Age : 18 – 21( ) 22 – 25( ) 26 – 30( ) Above 30( ) o Gender : M ( ) F ( ) o Qualification : 10th ( ) 12th ( ) Degree ( ) Others( ) o Marital status : MARRIED ( ) UNMARRIED ( ) o Occupation : o Monthly Income: below 5000( ) 5000 – 10000( ) 10000 – 20000( ) Above 20000 ( ) 2. Which factors do you normally consider while purchasing a product in big bazaar? • Ambience • Quality • Company image • Price • Others 3.Which sales promotional activity attracts you more? • Offer • Discount on every article • Gift on purchase • Prices off 95
  • 96. • Others 4. What do you think about the price of the products? • Highly satisfied • Satisfied • Moderate • Dissatisfied • Highly dissatisfied 5. In which sales promotional activities are you satisfied more in big bazaar? • Payback offer • Monthly saving offer • Gift voucher • Big day offer(SS5D) • Others if any 6. In which department you prefer to buy more products in big bazaar Perambur? • Food • Home appliances • Toys and sports • Non food (soap, men, grooming) • Others 96
  • 97. 7. What do you think about the approach of sales representative? • • Excellent Good • Average • Bad • Very bad Your opinion about 8. Opinion about the sales promotional activities carried by the company? • Excellent • Good • Average • Poor • Very poor 9. What is your opinion about the advertisement? • • Highly satisfied Satisfied • Average • Dissatisfied • Highly Dissatisfied 10. Do you consider promotional schemes while purchasing a product in big bazaar? • Yes 97
  • 98. • No 11. What is your opinion about big bazaar on available of product? • Excellent • Good • Average • Poor • Very poor 12. Which medium do you feel is suitable to promote the various promotional schemes? • Radio • TV • Newspaper • Hoarding • Others 13. What do you think about the sales service of big bazaar? • Excellent • Good • Average • Bad • Very bad 98
  • 99. 14. Which promotional activities needs better improvement in big bazaar? • Offer • Discount • Gift • Price • Others 15. What do you think about Big Day (SS5D) offer? • Excellent • Good • Average • Poor • Very poor 16. Why you choosing Big Bazaar? • Near by home town • Customer service • Company image • Low price • Others 17. Do you understand about the products by signage (or) display? • Yes 99
  • 100. • No 18. What do you think about exchange mela? • Excellent • Good • Average • Poor • Very poor 19. What do you think about T24 free recharge (Big bazaar’s telecom service)? • Excellent • Good • Average • Poor • Very poor 20. May I know your average billing range in big bazaar, Perambur? • Below 5000 • 501-1000 • 1000-3000 • 3001-5000 • Above 5000 100
  • 101. 21. Any suggestions to improve the sales promotional activities in big bazaar. ---------------------------------THANK YOU----------------------------- 4.5 BIBLIOGRAPHY Books Referred 101
  • 102. Research Methodology: C.R. KOTHARI Research Methodology: C.P.GUPTA Marketing Management: PHILIP KOTLER Websites • www.futuregroup.in • www.hrsite.com • www.marketingresearch.com 102